Petrus Resources Ltd. · TSX:PRQ
Petrus Resources — Shareholder Meeting (October 2012)
20 slides from Petrus Resources's shareholder meeting presentation, Oct 24, 2012
Slide 1: Annual General Meeting
Annual General Meeting October 24, 2012
Slide 2: Corporate Overview
CORPORATE OVERVIEW Current production (Q3 Exit) 2,524 boe/d (45% Operated) Gas weighting 58% GLJ Proved + Probable Reserves Volumes NPV10 (excluding 2012 additions) ― Foothills (as at Dec. 31, 2011) 6,703 Mboe $67.5 million ― Peace River (as at Mar. 31, 2012) 5,623 Mboe $81.2 million Net undeveloped
Slide 3: The Petrus Team
THE PETRUS TEAM Rick Braund Roy Aneed Don Gray Peter Verburg Pat Arnell Director Director Executive Chairman Director Director Kevin Adair President & CEO, Director Cheree Stephenson Neil Korchinski Brett Booth Ross Keilly Regan Palsgrove VP Finance & CFO VP Engineering Landman Senior Explorationist
Slide 4: Corporate Principles
CORPORATE PRINCIPLES Strategy Target projects with predictable low-risk production, long-term value and immediate cash flow Pursue statistically economic capital projects, that are repeatable Deliver per share growth in production, reserves and asset value Keys to Success Ensure Directors an
Slide 5: Corporate Evolution - 2011
CORPORATE EVOLUTION - 2011 2011 Q2 Initial capitalization - $11 MM Establish initial Board and Team Evaluate projects and bid on $42.5 MM Foothills acquisition 2011 Q3 Successful bidder on Foothills acquisition Due diligence & Definitive Agreement Prepared interim financing & credit line Negotiated
Slide 6: Corporate Evolution – 2012
CORPORATE EVOLUTION – 2012 2012 Q1 Continued drilling for Cardium oil at Cordel / Stolberg Evaluated opportunities to establish 2nd Core Area 2012 Q2 Successful bidder on $60 MM Peace River acquisition Closed $95 MM financing; added strategic financial partner New wells increase light oil production
Slide 7: Areas of Operation
AREAS OF OPERATION Peace River 1,133 66,103 Alberta Boe/d Q3 exit rate Net acres undeveloped land 46% 150+ Oil and liquids Montney drilling locations Foothills 1,391 19,015 Boe/d Q3 exit rate Net acres undeveloped land 38% 40+ Oil and liquids Cardium oil drilling locations * Portion of Peace River p
Slide 8: Peace River Core Area
PEACE RIVER CORE AREA Q3 exit rate of ~1,133 boe/d (46% oil) ― 165 boe/d shut in for plant turnaround Flood Lost ― 100% of production is operated Alberta British Saskatchewan Columbia Grimshaw ― Average working interest of 68% British Columbia Alberta Saskatchewan ― Stable production with shallow
Slide 9: Tangent Montney
TANGENT MONTNEY Montney Low Reserve Case Well Economics Initial Oil Production (IP30) 68 bbl/d Int Reserves Est – Oil 100 Mbbl Int Reserves Est – Gas 400 MMcf Int Reserves Est – Total 167 Mboe DCET Capital $2.2 million B.T. NPV10 (1) British $4.0 Saskatchewan million Columbia B.T. IRR (1) 57% Payout
Slide 10: Tangent Montney Type Curve
TANGENT MONTNEY Montney Type Curve 140 120 British Saskatchewan 100 Columbia 80 boe/d 60 40 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 High Case Low Case 10 Strictly Confidential
Slide 11: Foothills Core Area
FOOTHILLS CORE AREA Q3 exit rate of 1,391 boe/d (62% gas) Long life reserves ― 1P RLI - 10 years, 2P RLI - 14 years British Alberta Saskatchewan Inventory of 40+ Cardium oil drilling locations Columbia British Alberta Saskatchewan Columbia ― Majority of the identified opportunities have not be
Slide 12: Cordel Cardium
CORDEL CARDIUM Cordel Oil Well Economics – Base Case Initial Oil Production (IP30) 250 bbl/d Int Reserves Est – Oil 330 Mbbl Int Reserves Est – Gas 250 MMcf Int Reserves Est – Total 375 Mboe DCET Capital $5.7 million B.T. NPV10 (1) $6.9 million B.T. IRR (1) 78% Payout Period 1.4 years F&D Cost ~C$15
Slide 13: Cordel / Stolberg Cardium
CORDEL / STOLBERG CARDIUM Gross Cardium Production 2012 Drilling Program 3,000 6 10-29 15-19 12-29 1-29 9-1 Wells have been completed and 2,500 produced oil 2,000 480 Boe/d (94% oil) Average IP30 Boe/d 1,500 1,000 19% Average Petrus W.I. 500 467 Boe/d (Net to Petrus) Q3 exit rate 0 16-Jul-12 16-Aug-
Slide 14: Brown Creek Cardium
BROWN CREEK CARDIUM Brown Creek Oil Well Economics – Base Case Initial Oil Production (IP30) 250 bbl/d Int Reserves Est – Oil 330 Mbbl Int Reserves Est – Gas 250 MMcf Int Reserves Est – Total 375 Mboe DCET Capital $5.7 million B.T. NPV10 (1) $6.9 million B.T. IRR (1) 78% Payout Period 1.4 years F&D
Slide 15: Drilling Activity
DRILLING ACTIVITY 2012 DRILLING ACTIVITY As at Oct 1, 2012 Well Drilled Prod'n on Stream (boe/d) D&C $M Gross Net Gross Net Gross Net Foothills 8 1.7 2,292 467 37,636 8,955 Peace River 3 3 Confidential 5,526 5,526 NW Alberta 1 0.7 See Note 1 8,400 6,100 Total 12 5.4 51,562 20,581 (1) Primary target
Slide 16: 2012-2013 Forecast
2012-2013 FORECAST DRILLING FORECAST - REMAINDER 2012 2013 PRELIMINARY BUDGET Gross Net D&C $M DRILLING: 24 Wells (13.6 net) Wells Wells Net CAPITAL BUDGET: $47.3 MM Foothills 4 2.4 11,040 Peace River 4 3.7 6,612 4.0 Total 8 6.1 17,652 Drill & Case 9.8 Completions 25.7 Tie-ins Land & Seismic 7.8 16
Slide 17: Summary
SUMMARY Corporate Development ― Complete seed financing and assemble Board and team Core Area #1 - Foothills ― Identify, bid & acquire initial asset base and land ― Finance initial acquisition & establish operating line ― Identify upside opportunities and prove concept ― Expand opportunity base Core
Slide 18: Contact Information
CONTACT INFORMATION For more information, please contact: Kevin Adair, President & CEO 403.930.0888 [email protected] Cheree Stephenson, VP Finance & CFO 403.930.0891 [email protected] Petrus Resources Ltd. | 240 – 4th Avenue SW | Suite 2400 | Calgary, AB, T2P 4H4 18 Strictly
Slide 19: Reader Advisory
READER ADVISORY Certain statements included in this presentation constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's curre
Slide 20: Reader Advisory
READER ADVISORY Any financial outlook or future oriented financial information in this presentation, as defined by applicable securities legislation, has been approved by management of Petrus. Such financial outlook or future oriented financial information is provided for the purpose of providing in
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