Vision Execution Value TSX-V: BBI

Transcription

1 Vision Execution Value TSX-V: BBI 2015 National Bank Financial Energy Growth & Yield Conference February 2015

2 Advisory Summary of Forward Looking Statements and Advisories Certain information included in this presentation constitutes forward looking information under applicable securities legislation. This information relates to future events or future performance of Blackbird Energy Inc. ("Blackbird"). Investors are cautioned that reliance on such information may not be appropriate for making investment decisions. Many factors could cause the Blackbird's actual results, performance or achievements to vary from those described herein. The forward looking information contained in this presentation is expressly qualified by this and other cautionary statements set forth in the continuous disclosure record of Blackbird. For a complete description of the forward looking statements or information and certain other advisories, see slide 19 "Forward Looking Statements or Information and Additional Advisories." 2

3 Why Invest? Asset & Size of Prize 100% Working Interest of net sections of Montney land prospective for condensate and liquids rich gas 47 sections (100% WI) with 200 m thick Montney section in the established liquids rich/ over pressured corridor running from Kakwa/Karr to Elmworth (Unless there is a donut hole in the Montney, we have the pay) 3 potential pay zones allowing for over 550 potential locations with ability to build significant reserves Strategy Maximize shareholder value through drill bit delineation and land acquisitions at below market cost Create large / relevant land mass to attract midstream investment in Elmworth Corridor Continually get ahead of the trend of resource play opportunities Utilize leading edge drill and completion programs that maximize time to payout, EUR and IRR Torque High liquids yields provide superior economic return potential in low commodity price environment Well results from first Upper and Middle Montney expected early March Additional expansion of land base potential through drilling validation strategy Transition to cash flow growth Q / Q Financial Strength Approximately $27 million in cash post drill and complete of two Elmworth wells Zero debt Low G&A model encompassing every aspect of business Team Highly experienced management team in place to successfully execute strategy and growth Over 150+ collective years of oil and gas, diversified business and capital markets experience geared towards high growth companies High insider ownership (~25%); aligned with shareholders 3

4 Corporate Profile BBI (TSXV) Shares Basic ~353 mm Fully Diluted ~389 mm Insider Holdings (Board and Management) (Basic) 1 ~25% Positive Working capital 2 ~$27 mm Market Capitalization (based on $0.42 per BBI share) ~$148 mm Enterprise Value 2 (based on $0.42 per BBI share) ~$121 mm Note 1: Includes shares controlled by board members through funds managed Note 2: Subsequent to d&c of 5-26 and 6-26 wells 4

5 Management Garth Braun Chairman, CEO and President : Garth is a businessman and entrepreneur with over 30 years of diversified experience in oil and gas, finance and real estate Garth was formerly the principal of a private real estate company that developed over $1 billion of real estate Garth has in the past served as the CEO of a international E&P company and has private equity and investment banking experience focused on the industrial and resource sectors Darrell Denney COO and Director: Darrell is a Registered Engineering Technologist with over 30 years of experience including production, exploitation, drilling and completions Darrell previously has been part of operations and management in private E&P Co s that sold to intermediates (Wildsteam Exploration, Northrock Resources, Wiser Oil and Gas) Craig Wiebe, P.Geol. Vice President Exploration: Craig has over 20 years of experience in both exploration and development, the majority being with unconventional resources plays Craig previously has been involved with establishing a dominant position in a multi TCF gas play for a major oil and gas E&P company Craig has been part of teams at Encana, Amber, Grad and Walker, Standard Energy, Capio and Saguaro Ralph Allen, P.Geo. Vice President Geoscience: Ralph is a Professional Geologist with over 35 years of experience in the Western Canadian Sedimentary Basin Ralph previously has been an educator on shale for companies such as Chevron, Shell, Marathon and Statoil globally and has worked for numerous private and public companies in Calgary Joshua Mann Vice President Business Development: Joshua is a capital markets and corporate finance professional with experience in the oil and gas, services, technology and agricultural industries Joshua previously was an investment banker at Stifel Nicolaus Weisel where he was part of a team that assisted corporate issuers in raising over $3 billion in capital and assisted numerous issuers on M&A engagements Randy Schmautz Vice President Drilling and Completions: Randy is a Registered Engineering Technologist with over 35 years of experience in the Western Canadian Sedimentary Basin. Randy previously was responsible for Duvernay drilling and completions engineering and operations at Trilogy and prior to that was Director, Drilling and Completions at Progress Energy Resources Corp. from 2008 until Jeff Swainson Controller: Jeff is a Chartered Accountant with over seven years of broad finance and accounting experience. Jeff has held positions at BDO Canada, Chevron Canada, Sonde Resource of increasing responsibility 5

6 Our Premier Asset - Elmworth Blackbird has a significant 47 section contiguous block in the liquids rich Elmworth Montney Play 100% ownership in asset Over 200 meters of liquids rich Montney with three potential intervals CNRL Encana NuVista CNRL Blackbird Birchcliff Chinook CIOC Shell Greater than 100 bbls/mmcf potential Land Position acquired ahead of majors NuVista Apache and well results which have steadily Shell added value to play Market value per section ranges between $1.0 Note: All data from public sources and $2.9 million (NuVista purchase) per section 6

7 Why Elmworth The Sweet Spot Blackbird sought to assemble a project with superior economics based on the play having high liquids/gas ratio Analyzed over 2,400 well logs and mapped the liquids rich natural gas trend Decided on Elmworth for its robust liquids ratios (100 -> 200 bbs/mmcf) Was able to get ahead of the trend (average acquisition cost of ~50k per section vs. market value of between $1.0 mm and $2.9 mm per section) Industry is now delineating and developing asset in near proximity (less than 3 miles) 7

8 Why Elmworth The Pressure Blackbird has analyzed 72 valid pressure data points in proximity to its core Elmworth block Through detailed analysis we see the entire block of Montney land sitting in the overpressure window This pressure combined with the rock quality gives further confidence in play potential Note: All data from public sources 8

9 Why Elmworth Liquids Rich 100 Bbls/ MMcf 200 Bbls/ MMcf 9

10 Elmworth, AB 177 Producing Montney Wells Encana 02/ W6 Upper Montney Production Avg 1310 boe/d (54.6 days) Max 97.1 CGR Encana W6 Upper Montney Production Avg 1100 Boe/d (45.2 days) Max 204 CGR CNRL Hz W6 Middle Montney waiting on completion NuVista W6 Middle Montney, condensate rich (128 Bbls/mmcf) & over-pressured CNRL License Nu-Vista License Encana Hz W6 drilled A 2 Apache Licenses BBI W6 Upper Montney BBI W6 Middle Montney Drilled, completed and testing B C 02/13-27 and W6 Middle Montney 2 New Licenses 4-27 and 5-27 Chinook Hz W6 9 day test Total production: 860 boepd Total liquids: 342 boepd Total gas: 3.2 mmcf/d Liquids ratio: 107 boe/mmcf 29 stages w 50 tonnes/stage 2 Shell Hz Licenses 15-1 & W6 CIOC W6 Middle Montney Tested 3,580 Boepd (1,490 Bopd of 40 API Oil & 12.5 mmcf/d 800 psi) CGR: Condensate Gas Ratio Note: All Data From Public Sources; NVA and CIOC data as per company press releases 10

11 Elmworth, AB Multi-zone Montney A ECA 4-9 Hz B BBI 5-26 Hz BBI 6-26 Hz C W W W6 Doig Upper Montney Encana, NuVista Middle Montney NuVista, CIOC, Shell, Inception Lower Montney Datum: Belloy Note: All Data From Public Sources, see appendix for details, Hz Trajectories approximate 11

12 Operations Blackbird 5-26 and 6-26 Completions 12

13 Our Operational Strategy Blackbird has implemented a leading edge drill and complete program to ensure maximum EUR and liquid recovery Old Frac Design Moved from 100 meter spacing to 40 meter spacing to maximize fracturing of reservoir Utilizing a plug and perf design to minimize risk Slickwater Frac with 1.4 tonnes of sand per meter of Hz length New Frac Design Drill and Complete for ~$10 million with visibility to bring costs significantly down to ~$8 million 13

14 Elmworth, AB Infrastructure and Access Blackbird s core Elmworth asset has year round access, is close to services, pipelines & facilities and major highways Blackbird has multiple Blackbird Land takeaway strategies for its gas EOG sour pipeline Proposed gathering system which will be addressed once analysis is completed post flow-testing Proposed SemCam Sour Plant Alliance Pipeline Proposed Mistral 8 inch Pipeline Proposed Mistral Sweet and Sour Facility Area gas plant developments SemCam Mistral and expansions will further assist Blackbird in ensuring future development capability All Data From Public Sources, see appendix for details 14

15 Elmworth Development Large Project Scale and Running Room Blackbird intends on delineating and derisking both the Upper and Middle Montney Zones, with further additional potential in the Lower Montney 47 net sections imply 564 wells in full development scenario* 4 per section in separate 3 intervals Encana Hz W6 Initial Hz s from W6 to 6-26 and W6 Note: All Data From Public Sources, see appendix for details; * denotes internal management estimates using 1 mile Hz wells 15

16 Where We Are Going Creating the next junior Montney producer with the goal of delineating and de-risking the Upper, Middle and Lower Montney Focusing on being ahead of the curve with land acquisitions of repeatable and scalable plays Aggressively pursuing growth through the drill bit in the Montney while building a substantial resource in multiple zones Building a strong focused portfolio of oil and gas projects targeting the Montney fairway Ground floor opportunity to invest in one of the PREMIER Montney fairways We showed the market last year what we could accomplish let us show you how our vision and execution will bring value this year 16

17 Contact Information Head Office: Reserves: Legal: Auditors: Stock Exchange: Contact: Suite 2200, th Avenue SW Calgary, Alberta, Canada T2R 3M3 GLJ Petroleum Consultants IHS Inc. Macdonald Tuskey Davidson & Company TSX Venture Exchange Garth Braun, President & CEO (587) or gbraun@blackbirdenergyinc.com Joshua Mann, VP Business Development (403) or josh@blackbirdenergyinc.com Investor Relations: Brisco Capital Partners Corp. Scott Koyich, (403) or skoyich@briscocapital.com 17

18 Board of Directors Garth Braun CEO/President and Director: Mr. Braun brings to the company more than 30 years of diversified business background in the following sectors: oil and gas, finance, and real estate. Mr. Braun gained extensive experience in the operations of an international oil and gas company where he served as CEO and Chairman. Mr. Braun previously was a principal of a private real estate development company that completed over a $1 billion in development. Darrell Denney COO and Director: Mr. Denney is a Registered Engineering Technologist with over 30 years of diversified oil and gas industry experience including production, exploitation, drilling and completions. His focus over the last 12 years has been operations and management of small private E&P companies that were eventually sold to respected intermediate oil and gas companies (Dorado Energy sold to Wildstream Exploration, Denim Exploration sold to Northrock Resources, Invasion Energy sold to Wiser Oil and Gas) Mr. Denney prior to this period of time worked for Dome Petroleum, Amoco, and Phillips Petroleum. Most recently, Mr. Denney was President of Ruger Energy Inc., a small private company focused on oil production and exploration in Saskatchewan. Mr. Denney is a member of the Alberta Society of Engineering Technologists. Sean Campbell Director: Mr Campbell has over 15 years experience in the oil and gas industry and presently serves as VP and Founder of Suretech Completions Ltd. a subsidiary of a major international oil and gas service company. Prior to that he was President and founder of Suretech Tool Services Inc. a private company specializing in innovative and leading edge downhole tool design. Mr. Campbell is an expert in the engineering and design of downhole liner packer systems used in essentially all horizontal well multi stage fracturing completions. William Macdonald Director: Mr. Macdonald's general corporate and securities practice has been focused on Canadian, U.S., Asian and cross-border public offerings, private and institutional financings (including U.S. private investment in public equity, or PIPE transactions), stock exchange listings, reverse takeovers and mergers and acquisitions. Ron Schmitz CFO and Director: Mr. Schmitz is the Principal and President of ASI Accounting Services Inc., which has provided administrative, accounting and office services to public and private companies since July Mr. Schmitz has been a director, Chief Financial Officer or Executive VP of Gold Canyon Resources Inc. (TSX- V: GCU) since April In addition, Mr. Schmitz has been a director or Chief Financial Officer of various public companies since 1997 and currently is the Chief Financial Officer for several public companies. Kevin Andrus, CFA Director: Mr. Andrus is the Portfolio Manager of Energy Investments with GMT Capital Corp., a private investment company based in Atlanta, Georgia. A graduate of the Masters of Business Administration program from Regis University, Mr. Andrus is also a Chartered Financial Analyst charter holder who has spent the past two decades with various investment management companies. Mr. Andrus also sits on the board of DeeThree Exploration Ltd. William C. Macdonald Director: Mr. Macdonald has over thirty years of petroleum land management experience in Western Canada. He is currently the President of Bilmac Resources, an oil and gas consulting firm that provides land management support to various clients, and specializes in the capitalization of private oil and gas start-up companies. Most recently Mr. Macdonald served on the board of Alexander Energy Ltd. and chaired the special committee that sourced and finalized a recapitalization arrangement with the team of Spartan Energy, delivering to Alexander shareholders an approximate six times lift. In 1997, Mr. Macdonald cofounded Avalanche Energy Limited, a private oil and gas company, which was sold in late 2000 for approximately 10 times its initial share price. Mr. Macdonald was also previously Land Manager at Hardy Oil and Gas Limited, a private subsidiary of Hardy PLC ( ) and a senior negotiator at Amerada Hess Corporation. He became a member of the Canadian Association of Petroleum Landmen in 1980, attained his P. Land designation in April 1989, and remains an active member of the Association 18

19 Advisory Forward Looking Statements or Information and Additional Advisories Certain statements included in this presentation constitute forward looking statements or forward looking information under applicabl e securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward looking statements or inf ormation typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information concerning Blackbird in this presentation may include, but are not limited to, statements or information with respect to: guidance, forecasts and related assumptions; capital spending and availability of cash; expected resource potential of the Elmworth project; business strategy and objectives; type curves; drilling, development and exploration activities and plans and the timing, associated costs and results thereof; commodity pricing; costs associated with operating in the oil and natural gas business; and future production levels, including the composition thereof. Forward looking statements or information are based on a number of factors and assumptions which have be en used to develop such statements and information but which may prove to be incorrect. Blackbird believes that the expectations reflected in such forward looking statements or inf ormation are reasonable; however, undue reliance should not be placed on forward looking statements because Blackbird can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this presentation, assumptions have been made regarding, among other things: the impact of increasing competition; the timely receipt of any required regulatory approvals; the ability of Blackbird to retain and obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of Blackbird to operate in a safe, efficient and effective manner; the ability of Blackbird to obtain financing on acceptable terms; the timing and costs of operating Blackbird's business; the ability of Blackbird to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters; and the ability of Blackbird to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Blackbird and described in the forward looking statements or information. These r isks and uncertainties may cause actual results to differ materially from the forward looking statements or information. The material risk factors affecting Blackbird and its business are contained in Blackbird's Annual Information Form which is available at SEDAR at The forward looking statements or information contained in this presentation are made as of the date hereof and Blackbird undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or ot herwise unless required by applicable securities laws. The forward looking statements or information contained in this presentation are expressly qualified by this cautionary statement. Additional Advisories Disclosure provided herein in respect of bbls, bbls/d, boe, boes or boes/d may be misleading, particularly if used in isolation. A boe (barrel of oil equivalent) conversion ratio of 6 mcf per one (1) boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The foregoing outlook and guidance has been provided to assist investors in analyzing Blackbird's anticipated development strategies and prospects and it may not be appropriate for other purposes and actual results could differ from the guidance provided above. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the information contained in this presentation. 19