Corporate Presentation. November TSX.V: SMI I FRA: SMK

Transcription

1 Corporate Presentation November TSX.V: SMI I FRA: SMK

2 Forward Looking Statements This presentation contains "forward-looking statements" including estimates of future production, cash flows and reserves, business plans for drilling and exploration, the estimated amounts and timing of capital expenditures, the assumptions upon which estimates are based and related sensitivity analyses, and other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimated" or "intends", or stating that certain actions, events or results may", "could", "would", "might" or "will" be taken, occur or be achieved). In particular, this presentation contains forward-looking statements pertaining, to the following: the Company's anticipated 2017 & 2018 land action approval, capital budget and average daily production, using internal funding tocomplete future acquisitions; the ability of the Company to maintain its balance sheet strength; type well economics and performance; drilling inventory and reserve life index expectations; the anticipated impact of technical advancements on productivity and decline rates and ultimate recoveries; the Company s strategy to increase recovery factors; the ability of the Company to manage the current oil price environment the Company s business strategy (including development, enhancement, acquisition and risk management); capital cost, cost per well, NPV, rate of return and payout. Statements relating to "reserves" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. There are numerous uncertainties inherent in estimating crude oil, natural gas and NGL reserves and the future cash flow attributed to such reserves. All forward-looking statements are based on Saturn's beliefs and assumptions based on information available at the time the assumption was made. Saturn believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements. In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations; processing restrictions; blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry. These risks and uncertainties could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent. Saturn assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Certain information contained herein have been prepared by third-party sources. The information provided herein has not been independently audited or verified by the Company. TSX.V: SMI I FRA: SMK 2

3 ABOUT Saturn Oil + Gas Saturn Oil + Gas Inc. is a public energy company focused on the acquisition and development of undervalued, low risk assets. Saturn is driven to build a strong portfolio of cash flowing assets with strategic land positions. Highlights Fiscally prudent management Experienced technical team Diverse portfolio of de-risked re-completion and new drill targets Targeting low cost production in Saskatchewan Focused on generating near term cash flow Corporate Reserves Evaluation from Deloitte LLP in August 2017 shows 307,000 bbls of oil booked as 2P reserves, an undiscounted NPV of $6,982,3000 CAD *Evaluation prior to recent land acquisitions and new drills TSX.V: SMI I FRA:SMK 3

4 OUR Strategy Saturn Oil + Gas Inc. will execute a three-part business strategy to accelerate shareholder growth. Acquisition of De-Risked Assets: Saturn s immediate focus will be acquiring high quality, long life assets with proven production. Focusing on Saskatchewan's stable jurisdiction, Saturn will use its domain experience to evaluate properties that fall within its exploration and development criteria. Mitigate Risk: Exercising fiscal prudence and maintaining a strong balance sheet will allow Saturn to maintain constant growth. Long term stability will be generated through experienced management and a strong technical team. Evolve & Expand: De-risked assets and calculated execution will allow Saturn to achieve growth in reserves & production through retained earning. Saturn's portfolio will become its key to growth and provide long-term stability to shareholders. TSX.V: SMI I FRA: SMK 4

5 Capital Structure Trading Symbol Shares Outstanding Market Capitalization CAD) Options Warrants FullyDiluted TSX.V : SMI I FRA : SMK M $19.77 M M 8.48 M M TSX.V: SMI I FRA:SMK 5

6 Management & Directors John Jeffrey Chief Executive Officer & Chairman Mr. Jeffrey is a graduate of the University of Saskatchewan with a degree in economics and a MBA majoring in Finance. His experience as the area finance manager for a Fortune 200 engineering consulting firm gives him a strong background in operations and finance that has allowed him to successfully execute large international engineering and environmental projects. Mr. Jeffrey was the co-founder and CFO for Axiom Exploration Ltd. Scott Newman Chief Operating Officer & Director Mr. Newman was the CEO and founding partner of Axiom Exploration Ltd., a geological and engineering consulting company based in Saskatchewan. Mr. Newman is a graduate of the University of Saskatchewan with a degree in geology. His technical and management experience within the sector, Saskatchewan in particular, brings a strong operational background to the team. Mr. Newman has been involved as an executive and director to a number of private and public oil and gas exploration companies. Ivan Bergerman Director Mr. Bergerman is a graduate from the University of Saskatchewan, College of Law. Mr. Bergerman started his career in 2002 practicing primarily general Corporate Commercial, Securities, M&A and Oil & Gas Law with a major Calgary law firm. In 2010 Mr. Bergerman made the decision to strike out on his own and founded what is now Bergerman Smith LLP. Mr. Bergerman s principal practice areas are Public Company Advising (having worked with companies listed on the TSX Venture Exchange, Toronto Stock Exchange, CSE, NASDAQ, NYSE and NYSE MKT LLC), Initial Public Offerings, Exempt Market Distributions, Corporate Governance, M&A, Corporate Structuring & Restructuring, Financing, Natural Resources, Intellectual Property and General Corporate and Commercial. Calvin J. Payne Director Mr. Payne has a Bachelor of Applied Science from the University of British Columbia, an MBA from the University of Western Australia, and has been Registered as a Professional Engineer in many provinces, states and territories in Canada, the USA and Australia. Mr. Payne worked in the communications tower construction and ownership industry for 40 years, as a field construction worker, design engineer, and manager in Canada, Saudi Arabia, Australia and the USA. Mr. Payne, co-founded WesTower Communications in 1990 and as CEO led it through a highly successful IPO on the American Stock exchange in Mr. Payne led a team of partners in taking the company back private in 2003 and growing it to the largest company of its type in both Canada and the USA. The company was sold in 2011 and Mr. Payne retired from its operations in TSX.V: SMI I FRA: SMK 6

7 OPERATIONS Viking Formation & Success Formation

8 Viking Formation Lucky Hills Land is held 50:50 with Teine Energy Deloitte LLP has 226,000 BOE of booked 2P reserves; a NPV of $5,400, CAD In coordination with Teine Energy, drilling of the first extended reach horizontal is expected to commence in Q1/2018 Highly favorable reservoir in the Viking Domain experience - Technical team has significant Viking experience TSX.V: SMI I FRA:SMK 8

9 Viking Formation Lucky Hills Extended Reach Horizontal Net Capex: $450,000 CAD Net Estimated Ultimate Recovery: 30,000 bbls Net Estimated Average production: bbls/day IP90 Saturn s Viking operations are considered their core cash-flow asset. The low risk, high quality asset will provide near term production revenue for the company and growth for the shareholders. TSX.V: SMI I FRA: SMK 9

10 Viking Formation Flaxcombe Saturn holds 100% working interest on 9 of the 10 proposed half mile horizontal Viking wells to be drilled in Highly favorable reservoir in the Viking, with offsetting horizontal wells producing +100 bbls/d (IP30) Interpreted seismic available over locations to further de-risk drilling TSX.V: SMI I FRA:SMK 10

11 Viking Formation Flaxcombe Half Mile Horizontal Capex: $750,000 CAD Estimated Ultimate Recovery: 50,000 bbls Estimated Average production: bbls/day (IP90) Saturn has built the Flaxcombe asset as their core growth strategy. Significant offsetting producers and room to grow with production. Stacked pay in the Viking formation and underlying Success formation allow Saturn to centralize there growth and infrastructure to increase margins and profit. TSX.V: SMI I FRA: SMK 11

12 Success Formation Flaxcombe Deloitte LLP has booked 162,000 BOE of 2P reserves; a NPV of $3,164, CAD on its first two proposed wells Highly favorable reservoir in the Success, with offsetting horizontal wells producing +70 bbls/d (IP30) Five (5) recompletes and four (4) horizontals planned for Diverse portfolio of vertical recompletions and Success horizontals TSX.V: SMI I FRA:SMK 12

13 Success Formation Flaxcombe TSX.V: SMI I FRA: SMK 13

14 Success Formation Flaxcombe Horizontal Well Capex per well: $1,000,000 CAD Estimated Ultimate Recovery per well: 100,000 bbls Estimated Average production per well: bbls/day IP90 Vertical Recompletion Capex per well: $200,000 CAD Estimated Ultimate Recovery per well: 64,000 bbls Estimated Average production per well: bbls/day IP90 Proposed Vertical Recompletions Proposed Horizontals TSX.V: SMI I FRA: SMK 14

15 Value Creation upcoming catalysts Execute recompletions to generate cashflow and de-risk horizontal Success Program Execute horizontal Viking drill program for Lucky Hills & Flaxcombe Increase in cashflow thought production revenue from recompletions Evaluate production results and further delineate potential acquisitions for growth Increase in cashflow thought production revenue from horizontal program Further develop assets based on results of drill program. Continue to grow assets, drill inventory and production revenue TSX.V: SMI I FRA: SMK 15

16 CONTACT US com snewman@saturnoil. com Corporate Headquarters Suite Faithfull Ave. Saskatoon, Saskatchewan Canada S7K 8H4 T: TSX.V: SMI I FRA: SMK 16