Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (September 2024)
39 slides from Rubellite Energy's investor presentation, Sep 17, 2024
Slide 1: Corporate Overview
Rubellite Energy Inc. Corporate Overview September 17, 2024
Slide 2: Corporate Profile
Corporate Profile Growth-focused, pure play heavy oil multi-lat E&P company (TSX:RBY) Since inception in 2021, Rubellite has grown from 350 bbl/d to >7,000 bbl/d and assembled access to over 580 net sections across the Clearwater and Mannville Stack play fairways ▪ Rubellite acquired all of Perpetua
Slide 3: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater and Mannville Stack multi-lat heavy oil plays Expanding ▪ Growth-focused, pure play heavy oil multi-lat E&P company Pure Play ▪ Access to over 580 net sections of prospective Clearwater and Mannville Stack lands Heavy Oil ▪ M
Slide 4: Buffalo Mission Energy Corp. Acquisition – Closed August 2, 2024
Buffalo Mission Energy Corp. Acquisition – Closed August 2, 2024 Highly Complimentary Mannville Stack Asset Base added to Existing Clearwater Operations Production(1) (boe/d) Alberta SK Fort McMurray 56% Dawson CLEARWATER Net Development Inventory(2) (#) FAIRWAY 85 340 255 Marten Hills Waseca Nixon
Slide 5: Rubellite Asset Profile
Rubellite Asset Profile Over 7,000 bbl/d of heavy oil production with access to over 580 net sections of land Asset Map Asset Summary Land Well Count Production Q2 2024 Area (net sections)(1) (net producing)(2) (bbl/d)(3) Figure Lake/Edwand 246.3 68.0 3,813 Ukalta 34.0 25.0 461 Marten Hills(3) 0.9 3
Slide 6: Operational Momentum Continues
Corporate Performance (Thru Q2 2024 & Pro forma Buffalo Mission) Operational Momentum Continues Adjusted Funds Flow and Sales Production (bbl/d)(4) Q2 2024 Pro forma Buffalo Mission Production By Area(1) 7,400 – 7,800 bbl/d(1) Adjusted Funds Flow ($M) 8,000 24,000 7,000 Production (bbl/d) 20,000 Fig
Slide 7: Recombination with Perpetual Energy Inc.
Recombination with Perpetual Energy Inc. Announced September 17, 2024; To be completed by Plan of Arrangement in late October Transaction Details ▪ Rubellite shareholders receive 1 New Share(1) for each Rubellite Share held ▪ Perpetual shareholders receive 1 New Share(1) for every 5 Perpetual Shares
Slide 8: PMT Asset Profile
PMT Asset Profile Refer to Slide Notes and Advisories West Central • Edson Wilrich and secondary zones Liquids-Rich Gas • Helium New Ventures • Bitumen Asset Summary Edson Total 4,039 boe/d Production (Q2 2024) 4,039 boe/d (90% gas) 26.0 MMboe P+P Reserves(1) 26.0 MMboe (100%) NPV 10 (P+P)(1) $187 M
Slide 9: Recombination Highlights
Recombination Highlights Valuable synergies captured with increased scale, greater liquidity, funds flow diversification and optionality Recombination Highlights(1) Large scale exposure to operated heavy oil assets in the Clearwater and Mannville Stack plays ▪ Over 7,000 boe/d (100% oil) of conventi
Slide 10: Recombined Company Business Plan
Recombined Company Business Plan Valuable synergies captured with increased scale, greater liquidity, funds flow diversification and optionality Business Plan ▪ Continue to be focused on exploration, development and consolidation in the Clearwater and Mannville Stack heavy oil plays ▪ Non-operated n
Slide 11: Southern Clearwater Play History
Southern Clearwater Play History Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway Play History Figure Lake – Development & Step-out Delineation Fueling RBY Growth ▪ 3,813 bbl/d Q2 2024 sales Exploration and Development History ▪ One 2.5-leg producing well drilled in
Slide 12: Rubellite Asset Profile | Greater Figure Lake
Rubellite Asset Profile | Greater Figure Lake Pool Development and Extension – Q2 2024 Activity Update Asset Map Asset Summary Working Interest: 100% Q2 2024 Production: 3,813 bbl/d heavy oil ▪ 68.0 net multi-laterals on sales production H1 2024 Activity Figure Lake ▪ Drilled and rig released 14.0 n
Slide 13: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake 2023-2024 Average Production Performance on Type Curve Type Curve Assumptions – Figure Lake 2024 Development Drilling Results to Sept 1, 2024 Assumptions Tier 1 Tier 2 • 21 wells drilled and rig released (8-leg multi-lateral ~9,500m) McDaniel PUD McDaniel PPUD M
Slide 14: Rubellite Asset Profile | Frog Lake
Rubellite Asset Profile | Frog Lake Adds close to 23,200 Net Acres and ~2,500 bbl/d of heavy oil production Asset Map Asset Summary ▪ Primarily targeting the Waseca A member of the Mannville Stack with upside in the Sparky and General Petroleum • Joint Economic Development Agreements in place with F
Slide 15: Buffalo Mission Asset Profile | Frog Lake First Nation
Buffalo Mission Asset Profile | Frog Lake First Nation 2024 Results and Type Curve Economics Type Curve and Production Results Type Curve Assumptions(1) Resource Development on First Nation Lands Waseca Waseca Waseca Figure South North Central Lake(2) • Activity on Frog Lake First Nation subject to
Slide 16: Highly Economic Heavy Oil Development Inventory
Highly Economic Heavy Oil Development Inventory 340 Booked and Unbooked Drilling Location Inventory(1) and Type Curve Investment Returns(2)(3)(4) Waseca South Rubellite Top half inventory >200% IRR contribution Buffalo Mission Waseca North Figure Lake Waseca Central Ukalta Marten Hills 1. Before Tax
Slide 17: Nixon/Calling Lake – Wabiskaw/McMurray Exploration
Nixon/Calling Lake – Wabiskaw/McMurray Exploration 108 net sections captured Asset Map Opportunity Summary Calling Lake Exploration: ▪ 1 test well (100% WI) planned for winter 2024/2025 • 4 Leg Horizontal well to confirm productivity • Up to 75 follow Up locations • All season access near Wandering
Slide 18: Dawson - Northern Clearwater Exploration
Dawson - Northern Clearwater Exploration Encouraging early results at Dawson Asset Map Opportunity Summary Dawson Exploration: ▪ 1 earning well (50% WI) drilled in Q1 2023 • ~7,500m horizontal open hole • IP30 81 bbl/d ▪ 5-16 well on production in Q1 2023 for 47 days at an average rate of 80 bbls/d
Slide 19: Rubellite Exploration Inventory
Rubellite Exploration Inventory Exploration prospects with significant drilling inventory in success scenario Rubellite Rubellite Exploration Plays being advanced: Buffalo Mission Figure Lake Sparky • New pool mapped Figure Lake • Horizontal test well anticipated in 2025 Sparky Dawson • 10.0 net fol
Slide 20: Rubellite Guidance – Pre-Recombination
Rubellite Guidance – Pre-Recombination Development plan funded out of Adjusted Funds Flow at current strip prices Existing Rubellite Guidance (August 2, 2024) Development Parameters ▪ Single pad batteries with minimal infrastructure Q4 2024 2024 ▪ Oil sales from new Clearwater wells forecast approxi
Slide 21: Commodity Price Risk Management
Commodity Price Risk Management Price protection on ~3,317 bbl/d at avg WCS price of ~$84.30 Cdn/bbl in Q4 2024 & 2,613 bbl/d at avg WCS price of ~$79.78 Cdn/bbl in Cal25 Oil Price Risk Management Commodity Price Hedge Positions (as at Sept 16, 2024) Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Current RBY H
Slide 22: Operational Excellence
Operational Excellence Striving for continuous performance improvement Water ▪ Oil-based mud drilling system generally used with no fresh-water-based fracture stimulation in Clearwater play Land ▪ Surface footprint minimized with multi-well pad development Environment ▪ Onsite drill cutting cleaning
Slide 23: 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 24: Creating Differentiated Value for Shareholders
Creating Differentiated Value for Shareholders Fully funded growth opportunity in the prolific Clearwater and Mannville Stack Multi-lat plays Robust Organic Production Growth Profile Expanding Conservative Pure Play Capitalization Heavy Oil and Risk Multi-lat Mitigation Asset Base Fully Funded Manag
Slide 25: 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 26: Slide Notes
Slide Notes Slide 1 1. Current shares outstanding as at September 16, 2024, 3.8 million share awards outstanding and 4.0 million share purchase warrants (expire September 2026; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financia
Slide 27: Slide Notes (continued)
Slide Notes (continued Slide 5 1. Net asset value is non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. Operating netback per boe is determined by deducting royalties, production and operating expenses, and transportation costs form oil and natural gas revenue, as det
Slide 28: Slide Notes (continued)
Slide Notes (continued) Slide 7 1. See “Drilling Locations” in the Advisories 2. Capital is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. “McDaniel” means McDaniel Associates Consultants Ltd independent qualified reserves evaluators 4. “McDaniel Reserve Report”
Slide 29: Slide Notes (continued)
Slide Notes (continued) Slide 9 1. See “Drilling Locations” in the Advisories 2. Liquidity is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. Free funds flow is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 4. "TPP" means total
Slide 30: Slide Notes (continued)
Slide Notes (continued) Slide 12 1. See “Drilling Locations” in the Advisories 2. All the land and the drilling locations shown are net to Rubellite’s working interest 3. Payout is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories 4. Capital is a non-GAAP measure. See “
Slide 31: Slide Notes (continued)
Slide Notes (continued) Slide 15 1. See “Drilling Locations” in the Advisories 2. IRR is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories 3. "TPP" means total proved plus probable reserves in the McDaniel Reserve Report 4. "McDaniel" means McDaniel & Associates Consult
Slide 32: Slide Notes (continued)
Slide Notes (continued) Slide 17 1. See “Drilling Locations” in the Advisories Slide 18 1. See “Drilling Locations” in the Advisories Slide 19 1. Development and exploration capital expenditures is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. Heavy oil wellhea
Slide 33: Slide Notes (continued)
Slide Notes (continued) Slide 20 1. Prices reported are the weighted average prices for the period 2. Western Canadian Select (“WCS”) 3. Adjusted funds flow is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 4. Capital is a non-GAAP measure. See “Non-GAAP and Other
Slide 34: Slide Notes (continued)
Slide Notes (continued) Slide 22 1. G&A per BOE is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories Slide 23 1. Free funds flow is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories Refer to Slide Notes and Advisories 33
Slide 35: Advisories
Advisories General This presentation is for discussion and information purposes only and any unauthorized use is strictly prohibited. These materials should be read in conjunction with the Company's Annual Information Form for the year ended December 31, 2023 and the Management's Discussion and Anal
Slide 36: Advisories (continued)
Advisories (continued) “Free funds flow” is calculated by taking adjusted funds flow and subtracting capital expenditures, excluding acquisitions and dispositions. Management uses certain industry benchmarks, such as free funds flow, to analyze financial and operating performance. Management believe
Slide 37: Advisories (continued)
Advisories (continued) “Operating costs” is comprised of production and operating expense, as determined in accordance with IFRS, divided by the Company’s total sales oil production. “Transportation costs” is comprised of transportation expense, as determined in accordance with IFRS, divided by the
Slide 38: Advisories (continued)
Advisories (continued) Oil and Gas Industry Metrics This presentation contains certain oil and gas industry metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not
Slide 39: Advisories (continued)
Advisories (continued) Reserve Estimates The Rubellite reserves estimates contained in this presentation are as at December 31, 2023 and are based on based on an independent reserves evaluation report prepared by McDaniel & Associates Consultants Ltd. in accordance with NI 51-101. The reserves conta
Rubellite Energy — Investor Presentation (September 2024) on 6ix