Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Shareholder Meeting (May 2022)
29 slides from Rubellite Energy's shareholder meeting presentation, May 25, 2022
Slide 1: Annual General Meeting
Rubellite Energy Inc. Annual General Meeting May 25, 2022
Slide 2: Background
Background Newly created, growth-focused, pure play Clearwater company (TSX:RBY) Since 2018, Perpetual / Rubellite has executed 35+ separate transactions to assemble access to ~270 net sections across the Clearwater fairway ▪ Rubellite acquired all of Perpetual’s Clearwater Assets for total consider
Slide 3: Experienced Management and Independent Board of Directors
Experienced Management and Independent Board of Directors Cost-effectively managed under a Management and Operating Services Agreement with Perpetual Overview of MSA with Perpetual Independent Board of Directors (Non-Executive) ▪ Full overlap of Perpetual and Rubellite Executive Officers Tamara MacD
Slide 4: Delivering Results
Positive Progress Since Inception Delivering results on the robust organic growth business plan Oil Production Up 335% Prospective Clearwater Land Up 160% TSX:RBY Delivering Results Location Prospect Inventory Doubled Enterprise Value Up 250% Refer to Slide Notes and Advisories 3
Slide 5: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater play Expanding ▪ Access for public investors to participate in a high growth, pure play Clearwater explorer/producer Pure Play ▪ ~270 net sections of highly prospective Clearwater lands with 700+ potential drilling locations
Slide 6: Clearwater Play Landscape
Clearwater Play Landscape Amongst the best single well economics of any play in North America Clearwater Play Evolution Clearwater Play ▪ Since 2017, ~850 wells have been drilled, growing play production from nil to ~84,000 bbl/d in April 2022 ▪ 79% of production at Marten Hills and Nipisi Play hist
Slide 7: Rubellite Asset Profile
Rubellite Asset Profile ~270 net sections of prospective land and 700+ locations across the Clearwater fairway Northern Exploration – Defining Potential ▪ 4 to 6 (3 to 4 net) wells planned prior to Q1 2023 Asset Map ▪ Peavine, Dawson, Cadotte Asset Summary: ▪ Additional exploration activity ongoing
Slide 8: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta 76 net PPUD (1)& development/step-out locations(2) on contiguous lands; 164 net exploratory locations Asset Map 825 bbl/d oil (March 2022) ▪ Twelve (12.0 net) 6 and 8-leg open-hole multi-laterals onstream at YE 2021 ▪ 6 (6.0 net) wells rig released in Q1 2022 plus 1
Slide 9: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta 10 booked proved plus probable locations (1) with strong economics Type Curve and Area Production Type Curve Assumptions and Economics Ukalta Q4 2021 – Q1 2022 primary zone wells ▪ 9 wells on production for 30+ days Assumptions • Average IP30: 113 bbl/d (6-leg multi-
Slide 10: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake 155 net PPUD & development/step-out locations; 90 net exploratory locations (1)(2) Asset Map 515 bbl/d oil (March 2022) ▪ 1 producing 2.5-leg multi-lateral prior to RBY ▪ South pad has six (6.0 net) new wells on production • 2 (2.0 net) wells RR in Q3 2021, avg
Slide 11: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake 15 booked proved plus probable locations (1) with strong economics Type Curve and Area Production Type Curve Assumptions and Economics Figure Lake Q3 2021 – Q1 2022 South Pad Development wells ▪ 6 (6.0 net) wells on production for 30+ days Assumptions McDaniel Y
Slide 12: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | Marten Hills 6 (1.8 net) remaining PPUD (1)(2) locations (8-leg) plus secondary recovery potential Asset Map 2 (1.0 net) locations 185 bbl/d oil (March 2022) unbooked at YE 2021 ▪ 3 gross sections at Marten Hills at 50% WI (BPO) onstream in Q1 ▪ 8-leg open hole multi-latera
Slide 13: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | Marten Hills 6 (1.8 net) booked proved plus probable locations (1)(3) with strong economics Type Curve and Area Production Type Curve Assumptions and Economics Marten Hill Q1/Q2 2022 Development wells ▪ 3 (1.5 net) Q1 2022 wells on production for 30+ days Assumptions McDani
Slide 14: Peavine/Dawson - Northern Clearwater Exploration
Peavine/Dawson - Northern Clearwater Exploration Planning to drill four to six (3.0 – 4.0 net) evaluation wells in upcoming winter 22/23 Asset Map Opportunity Summary RBY 100% Interest Land Peavine/Dawson/Seal area attracting significant attention RBY 50% Interest Land from industry 50% Partner Farm
Slide 15: Rubellite Guidance
Rubellite Guidance Development plan is fully funded at current strip prices Guidance (Unchanged from March 9, 2022) Development Parameters Q2 2022 2022E ▪ 120 well development program envisioned through 2025 E&D Capital Expenditures(1)(2)(3) ($ MM) $48 - $50 ▪ Single pad batteries / volumes trucked
Slide 16: Risk Management
Risk Management WCS price protection on an average of ~1,289 bbl/d (balance of 2022) at ~$73.35 Cdn/bbl Risk Management Philosophy and Strategy Current WTI and WCS hedge positions ▪ Physical forward sales contracts and financial derivatives Q2/22 Q3/22 Q4/22 Cal 2023 WTI USD / bbl Swap used to: Volu
Slide 17: ESG Excellence
ESG Excellence Strong ESG performance driven by living our values Water ▪ No fracture stimulation required in Clearwater play with multi-lateral drilling technology ▪ Minimal fresh water usage Land ▪ Surface footprint minimized with multi-well pad development ▪ Onsite drill cutting cleaning and oil-
Slide 18: Creating Differentiated Value for Shareholders
Creating Differentiated Value for Shareholders Fully funded growth opportunity in the prolific Clearwater play Robust Organic Production Growth Profile Expanding Conservative Pure Play Capitalization Clearwater and Risk Asset Base Mitigation Fully Funded Management Development Alignment and Unlockin
Slide 19: Additional Information
Additional Information Sue Riddell Rose, President & CEO Ryan Shay, Vice President, Finance & CFO 3200, 605 – 5 Avenue SW Calgary, Alberta Canada T2P 3H5
Slide 20: Slide Notes
Slide Notes Slide 1 1. Current shares outstanding as at March 31, 2022, 1.3 million share awards outstanding and 4.0 million share purchase warrants (5-year term; $3.00 exercise price owned by Perpetual Energy), including the share issuance from the equity financings which closed on March 30, 2022 2
Slide 21: Slide Notes (continued)
Slide Notes (continued) Slide 6 1. See “Drilling Locations” in the Advisories 2. All the land and the drilling locations shown are net to Rubellite’s working interest. See “Drilling Locations” in the Advisories 3. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserve
Slide 22: Slide Notes (continued)
Slide Notes (continued) Slide 9 1. See “Drilling Locations” in the Advisories 2. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 3. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserves
Slide 23: Slide Notes (continued)
Slide Notes (continued) Slide 11 1. See “Drilling Locations” in the Advisories 2. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 3. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserve
Slide 24: Slide Notes (continued)
Slide Notes (continued) Slide 14 1. E&D Capital Expenditures is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. Heavy Oil Wellhead Differential is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. Cash costs is a non-GAAP ratio.
Slide 25: Advisories
Advisories General The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of the Company and of the information contained
Slide 26: Advisories (continued)
Advisories (continued) Non-GAAP and Other Financial Measures (continued) “Capital Expenditures”, “Capital” or “E&D Capital Expenditures” is used to measure its capital investments compared to the Company’s annual capital budgeted expenditures. Rubellite’s capital budget excludes acquisition and disp
Slide 27: Advisories
Advisories Forward Looking Information Certain information in this presentation including management's assessment of future plans and operations, and including, without limitation. the information contained under the headings “Investment Highlights”, “Rubellite Asset Profile” and “Creating Different
Slide 28: Advisories (continued)
Advisories (continued) Drilling Locations This presentation discloses Rubellite’s drilling locations as at March 31, 2022, in three categories: (i) booked locations; (ii) unbooked development / step-out locations and (ii) unbooked exploration locations. Booked locations are proved and probable locat
Slide 29: Advisories (continued)
Advisories (continued) Third Party Information This presentation includes market, industry and economic data which was obtained from various publicly available sources and other sources believed by Rubellite to be true. Although Rubellite believes it to be reliable, it has not independently verified