Upload
vuphuc
View
225
Download
0
Embed Size (px)
Citation preview
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 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 30 "Forward‐Looking Statements or Information and Additional Advisories."
2
Who is Blackbird Energy?
Blackbird Energy Inc. is an emerging oil and gas exploration company
focused on the liquids-rich Montney fairway at Elmworth, near Grande
Prairie, Alberta:
75 sections (48,000 acres) of 100% working interest Montney rights
at Elmworth / Gold Creek
Highly productive Upper and Middle Montney reservoirs
Recent Middle Montney production test: 1,768 boe/d (>30% liquids)
Strategic growth strategy – acquire > delineate > de-risk > cash flow
Team in place with the skills and experience to develop the resource
Strong balance sheet
3Note: * $23 million in working capital pre commencement of the 2-20 drilling operations
The Montney – The Permian of the North
Condensate and Liquids-Rich Natural
Gas
High liquids / Gas ratio confirmed in
initial Blackbird well tests (greater
than 125 Bbls/Mmcf)
Over-Pressured Reservoir
Provides enhanced productive
capability and EUR
Thickness of Resource
Elmworth Montney has
approximately 200 meters (650 feet)
of charged pay (Upper, Middle and
Lower Montney intervals present)
Repeatability
Very extensive reservoir
Resource vs. conventional Montney
Over 2,432 well logs were analyzed internally to establish this mapping
Note: Other than with respect to Blackbird, all data from public sources and not independently verified; map internally generated
Liquids-Rich Sweet Spot
5
Low Cost Land Assembly
Early mover advantage
Assembled 75 sections for ~$6.9
million or $92,500 per section
~900 potential drilling locations
(Upper and Middle Montney)
Elmworth Montney land sale
valuations have steadily
increased:
Near proximity land sales have
seen multi-section packages go
for approximately $2.9 million
per section
All in an area that is economic
today with robust torque as
commodity prices increase
Blackbird Land Assembly
6
De-Risked Elmworth
Other people’s money is de-risking the play
Industry results: Encana 2-15, Encana 13-22 and BBI 5-26 demonstrating
strong liquids yields in Upper Montney; 2-20 and 6-26 demonstrating
Middle Montney productivity
Over 150 Producing Montney Wells in Our CorridorNote: Other than with respect to Blackbird, all data from public sources and not independently verified; map internally generated 7
Legend
Blackbird
Encana
CNRL
Nuvista
Chinook
Apache
Sinopec
Birchcliff
Paramount / Inception
MontneyWell
Well Licence
Multi-Zone Elmworth Montney
8
650
Feet
Upper Montney/Doig
Belloy
Upper Montney
Middle Montney
Lower Montney
BBI 2-20 HzDensity Porosity Gas Detector
Up to 6% Porosity
Gas response confirms presence of hydrocarbons throughout Montney
Gamma Ray Resistivity Lithology
Blackbird 10-8-70-7 W6Pilot Hole for 2-20-70-7 W6 Hz
ECA 13-22 Hz
EnCana 15-14-70-8 W6Pilot Hole for 13-22-70-8 W6 Hz
Mapping Liquids-Rich Sweet Spots
Blackbird/NuVista wells prove CGR in the Middle Montney ranges from <50 to >200 Bbls/Mmcf
Upper Montney Middle Montney
Acreage Located in Heart of Sweet SpotNote: Other than with respect to Blackbird, all data from public sources and not independently verified 9
Encana/Blackbird wells prove condensate to gas ratios of over 200 bbls/mmcf
Over-Pressured Window
Over-pressured reservoir key to EUR and Productivity
Substantially all of Blackbird’s
lands are situated in the over-
pressured Montney corridor
Over-pressured Montney ranges
from 10 kpa/m to 18 kpa/m
Similar pressure regime to
Eagle Ford
Blackbird’s first three wells
confirmed over-pressured
resource in both Upper and
Middle Montney
U:10.8 kpa/m
M: 10.7 kpa/m
Over-Pressured Reservoir Key To EconomicsNote: Other than with respect to Blackbird, all data from public sources and not independently verified; map internally generated 10
Access to Infrastructure
Key for any E&P is access to pipelines & processing
Juniors have to solve this without significant dilution /
destruction of balance sheet
Near-term solution for takeaway:
Solution to handle our sour gas
Scalability starting from 5 Mmcf/d + associated liquids
Multiple options available
Infrastructure Optionality Provides Strength 12
Blackbird’s Infrastructure Solution
Note: Other than with respect to Blackbird, all data from public sources and not independently verified 13
Infrastructure is being focused on a resource play that works in
this current commodity price environment.
Up to 1.35 Bcf/d
of new processing
planned for this
area
LNG Opportunity
Currently there are 18 BC LNG projects being contemplated that
would represent almost 350 Tcf of gas resources
Some key facilities that look to be moving ahead are:
Kitimat (Chevron, Woodside) – 1.3 Bcf/d
Pacific Northwest (Petronas) – 2.7 Bcf/d
Aurora (CNOOC, INPEX, JGC Corp.) – 3.1 Bcf/d
WCC LNG (Imperial / Exxon) – 4.0 Bcf/d
Douglas Channel – 0.2 Bcf/d
LNG Canada (Shell et al) – 3.2 Bcf/d
Triton (Altagas, Idemitsu) – 0.3 Bcf/d
Above facilities equate to 14.9 Bcf/d
3.1 Bcf/d expansion of TCPL infrastructure in Grande Prairie area will
assist LNG projects
LNG provides future upside to North American gas production and
prices14Note: Data from page as per Cormark Secutiries
Drilling Optimization
First Upper Montney well – 39 days
First Middle Montney well – 49 days
Latest Middle Montney well (2-20) – 24 days
First Monobore in Elmworth / Gold Creek Montney
Modification of drilling fluids (Brine vs. Invert)
Rig selection (Ensign, hot Montney crew)
Selection of bit and motor combinations
Movement to multi-well pads (significant efficiency
gains)
16Innovation Driving Economic Recovery
Completion Optimization
Movement to sliding sleeve from plug and perf
Movement to single entry port vs. clustered intervals
Higher rates and tonnage (greater liquids rates,
shallower liquid declines, higher EUR)
Movement to energized foam from slick water for
testing purposes
Movement back to slickwater for long term cost
reduction and efficiency of operations
Objective: Higher EUR / Shallower Decline in Liquids
Innovation Driving Economic Recovery17
Blackbird 2-20 Well Results
Blackbird has recently released the results from its latest well, the 2-20.
The results are seen in the table below:
The 2-20 is one of the top-tier wells in the region for the Middle Montney
Successfully de-risks 25 sections of the Middle Montney
Significant Behind Pipe ProductionNote: management estimate based on test rates and independent third party analysis 19
WellAverage Flowing Casing Pressure
(kPa) (1)
Raw Gas (MMcf/d) (2)
Liquid Hydrocarbons (Bbls/d) (2) (3)
Total Combined Production (Boe/d) (2)
Liquids to Gas Ratio
(Bbls/MMcf)2-20
7,973 6.8 641 1,768 94
Type Curve (5) 3.25 439 981 135
(1) The 2-20 well produced through a 19.05 millimeter choke at the beginning of the final 24 hour test period and a 21.30 millimeter
choke at the end of the final 24 hour test period.
(2) The 2-20 well average rates over the final 24 hours of the test.
(3) The 2-20 well total liquid hydrocarbons are comprised of 316 Bbls of free condensate and 325 Bbls of natural gas liquids based on
the composition from the 6-26 gas analysis.
(4) Blackbird’s Elmworth Middle Montney type curve based on internal best estimates and publicly available data.
Multiple Layers Now De-Risked
Upper Montney (2 intervals):
ECA 2-15: 1,072 boe/d; 2.2 mmcf/d + 705 bbls/d; 320 bbls/mmcf (month 5)
ECA 13-22: 346 bbls/mmcf (test)
BBI 5-26: 466 boe/d; 09 mmcf/d +313 bbls/d; 341 bbls/d (19 day test)
Middle Montney (1 interval):
BBI 2-20: 1,768 boe/d; 6.8 mmcf/d + 641 bbls/d; 94 bbls/mmcf (test)
BBI 6-26: 899-1049 boe/d, 3-3.5 mmcf/d; 133 bbls/mmcf (AOF test)
Through logging and area production results Upper and Middle Montney has
been de-risked over 25 sections of Blackbird’s land block
300 de-risked locations
129 locations accessible south of the river (reduced tie-in costs)
96 de-risked south of the river locations
Multiple Years of Drilling InventoryNote: management estimate based on test rates and independent third party analysis 20
Multiple Layers Now De-Risked
21
BBI 6-26
BBI 2-20
ELMWORTH
ECA 2-15
ECA 13-22
BBI 5-26
BBI 2-20
ELMWORTH
Upper Montney Middle Montney
Infrastructure Development
Blackbird has established a near-term
solution for takeaway which can handle
sour gas:
Processing arrangement starting from 5
mmcf/d + associated liquids (~1,500
boe/d);
Ability to scale processing capacity
upwards from 10 mmcf/d to 30 mmcf/d;
Multiple options available for long term
capacity both north and south of the
Wapiti, which will allow production to
exceed 30 mmcf/d.
Blackbird sees four potential solutions
for future expansion above and beyond
30 mmcf/d.
Near Term Movement To Cash FlowNote: management estimate based on test rates and independent third party analysis 23
Resource Development
Next Steps:
Proceed with development on Western Acreage (70% Upper, 30% Middle)
Staged, Low Risk Development Plan24
129 locations south of Wapiti River
8 years of drilling inventory (base case)
North of the Wapiti to be accessed by ~Q2 2018
Blackbird 2-20-70-7W6 Blackbird 5-26-70-7W6
Blackbird 6-26-70-7W6
Initial development split between (70% Upper and 30% Middle)
Strong land position in one of the most economic
plays in Canada – correct revenue / boe cocktail
(high CGR)
Management team that is aligned with
shareholders and that has shown an ability to
solve the impediments of success
Strong balance sheet that allows for organic
growth through drill bit
Blackbird has a plan to create value
Low cost entry point with catalysts to come
Why You Should Buy and Hold
25
Blackbird has committed to offset its environmental impact
through planting trees in NW Alberta with the Carbon Farmer
Asking stakeholders and friends to support initiative as well
Goal of 100,000 trees
Blackbird has committed 5,000 trees
National Bank Financial has committed 7,000 trees
Raymond James has committed to 750 trees
Each tree costs $1.99
Go to our website to learn more:
www.blackbirdenergyinc.com
Tree Planting Pledge
26
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 served as the CEO of Cheetah Oil and Gas, an international E&P company and has private equity and investment banking
experience focused on the industrial and resource sectors
Jeff Swainson – Chief Financial Officer: Jeff is a Chartered Accountant with broad finance and accounting experience in oil and gas exploration and production Jeff has held positions of increasing responsibility with BDO Canada, Chevron Canada Resources, and Sonde Resources Corp.
Don Noakes, P.Eng. – Vice President Operations: Don has over 30 years of experience in drilling, completions and exploitation focused on unconventional resource plays Don was previously responsible for multi-rig drilling and completion programs targeting unconventional reservoirs in the
Alberta Montney Don has been part of teams at Murphy Oil, Mosaic Energy, APL Oil and Gas, Bow Valley Energy and Culane Energy
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 was previously 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
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 was previously 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
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 was previously 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 Wylie – Manager, Land: Josh is a Petroleum Landman with over six years of experience working with junior exploration and production companies Josh has been instrumental in assembling Blackbird’s core Elmworth land position and is a member of the Canadian
Association of Petroleum Landmen
27
Corporate Profile – BBI (TSXV)
Note 1: Includes shares owned in portfolio that is managed by board memberNote 2: Prior to drill and completion of 2-20 well.
Shares Basic ~357 mm
Fully Diluted ~399 mm
Insider Holdings (Board and Management) (Basic)1 ~25%
Positive Working capital2 $23 mm
Market Capitalization (based on $0.16 per BBI share)
~$57 mm
Enterprise Value (based on $0.16 per BBI share) ~$34 mm
28
Board
Garth BraunChairman
Kevin AndrusPortfolio Manager, GMT Capital
Burt AhrensPresident, Edgehill Corporation
Sean CampbellFounder, Suretech Completions
Bill MacdonaldPartner, Macdonald Tuskey
Ron SchmitzPresident, ASI Accounting
Analyst Coverage
Garret UrsuCormark Securities
Chad EllisonDundee Capital Markets
Darrell BishopHaywood Securities
David RicciardiMackie Research Capital
Dan PayneNational Bank Financial
Michael ZukIndependent Analyst
John ClarkeIndependent Analyst
Banker
National Bank
Evaluation Engineers
GLJ Petroleum Consultants
Registrar & Transfer Agent
Computershare
Legal Counsel
Osler, Hoskin & Harcourt LLPMacDonald Tuskey
Auditors
Davidson LLP
Head Office400, 444 – 5th Avenue SWCalgary, Alberta T2P 2T8
Contacts
Garth Braun, Chairman, CEO & President Joshua Mann, VP Business Development
(403) 500 5550 [email protected] (403) 390 2144 [email protected]
29
Advisory
Forward‐Looking Statements or Information and Additional Advisories
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 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 information 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 been 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 information 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 risks 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 www.sedar.com. 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 otherwise 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.
30