Supportive price trends

Transcription

1 November 217

2 Supportive price trends USD/bbl Oil and Gas prices USD/million Btu , ,5 2 1,5 1 1,5 Cushing, OK WTI Spot Price FOB Henry Hub Natural Gas Spot Price Source: U.S. Energy Information Administration

3 Matra Petroleum in short The Company Matra Petroleum AB ( Matra or the Company ) is an independent oil and gas exploration and production company The Company has offices in Borger and Houston, Texas, U.S.A as well as Stockholm, Sweden. The Company was listed on NASDAQ First North in April 217 Majority shareholder is Rovelo Investment Ltd which is controlled by Maxim Barskiy. The Company owns and operates 136 leases in the Panhandle-area, located in northwestern Texas, covering an area of 38 8 acres (15 7 hectares). Company objectives Low cost production of conventional oil and gas Adapted to downturn in prices Focus on financial performance Restructured debt and raised equity Asset evaluation and investment rationalization Accelerating drilling program for organic growth Selective M&A strategy New outperforming wells replace low performing wells by selective drilling in proven structures. 3

4 Operating in Panhandle, Texas Private ownership for mineral rights Leases right to produce hydrocarbons and pays royalty (applied to gross volumes produced) to mineral rights owners Royalty rates vary from 12.5% to 25% (Matra average: approx. 18%) Favorable taxation Severance tax (gas 7.5 percent, oil 4.7 percent applied to the net revenue) Ad valorem tax, paid once at the end of each year (TUSD 116 was paid in 216). The Panhandle region Significant hydrocarbon basin in a low-risk region Continues to benefit from an extensive installed infrastructure base and skilled labor to develop, operate and manage assets M&A Opportunities 4

5 Asset overview 136 leases owned and operated in northwestern Texas in the Panhandle area 1P reserves: 22.9* Mmboe / PV1** equivalent to MUSD Productive formation: Brown Dolomite Reservoir depth: <1 km Net area: 38,8 acres (15,7 hectares) Conventional reserves Production Average 713 boe per day (gross) (Q3, 217) Oil: 51%; Gas: 49%*** Well stock: 6 Reserves Appraisal (June 1 st 216) Category OIL, Mbbl GAS, MMCF TOTAL, MBOE PV1* $' PV1** $' PDP PDNP PUD P * - PeTech Enterprises, Inc as of June 1,216 (SEC standards, WTI flat forecast USD 4.6/bbl) ** - Assuming WTI August 31 strip, starting with 217 (USD) 47.3; 49.3; 49.; 49.6; 5.4; 51.5; 52.8; 53.7; 54.4 in 225 and thereafter *** - Wet gas with high liquids content 5

6 Organic Growth Opportunities Well positioned for organic growth through development of current assets MMboe of 1P reserves 1% of the reserves have been developed 45 PUD locations 137 re-entry from temporary shut-in wells stock 25 recompletions (re-fracturing) on current producing wells stock 22 deepening on current producing wells stock 286 workovers on current active and inactive wells stock Additional growth from acquisition of producing oil and gas assets. Target production from existing asset base of up to 6, boepd (Gross) 6

7 Operating Update 9 months 217 Drilling program: 11 new wells drilled, completed and put on production (1 producers and 1 SWD) YTD 4 new wells on production in Q3 boe 7 Production boepd 8 Improved performance from new wells Executed strategy to replace old uneconomic wells with new, more productive wells to improve profitability 75 low-producing wells were shut-in to date (minus ~1 BOEPD) Cost Rationalisation Production costs per boe decreased 19% Q4-16 Q1-17 Q2-17 Q3-17 Net Gross Ave. daily (gross)

8 BOEPD (NET) Upgraded Drilling Economics New well economics 25, EUR EUR (net) MBO (oil MBO) $42, $446, drilling new cost well cost 2, 137% minus IRR 3% IRR $52, minus PV11.5 $39, PV9 15, Payback - 2 months 1, 5,, 5 years 1 15 PUD EUR - Gross (till 232) th boe 5,9 EUR - Net (till 232) th boe 43,1 % oil % 73% Netback USD/boe 45,8 LOE+Overheads+G&A USD/boe (9,9) Production tax USD/boe (3,6) EBITDA USD/boe 32,2 Drilling costs USD/boe (1,1) Free Cash Flow USD/boe 22,1 IRR % 137% NPV/Cumulative Net production USD/boe 12,1 Royalty % WTI forecast: USD5/bbl flat forecast, realized price discount $3/bbl NGL forecast (USD/Mcf): $7.1 flat forecast New well costs - $42 th 12 PUD location Sensitivity analysis IRR, % WTI forecast $/bbl New well cost 38 43% 74% 121% 24% 392% 124% $ th 4 38% 64% 12% 165% 286% 617% 42 33% 55% 87% 137% 223% 41% 44 29% 49% 76% 117% 182% 35% 46 25% 43% 67% 11% 152% 241% NPV, $ WTI forecast $/bbl New well cost $ th

9 Oil and gas production, boe Total production boe Net Gross Ave. daily (gross) boepd boe Q4-16 Q1-17 Q2-17 Q3-17 Net Gross Ave. daily (gross) boepd Sequential growth in production with improved economics

10 Average sales prices Oil prices USD/bbl ,7 46,6 41, USD/bbl 49, 48, 47, 46, 45, 44, 43, 42, 48,7 45,4 44,9 Q1-17 Q2-17 Q3-17 USD/Mcf 1, 8, 6, 4, 2,, 9,5 4, Gas prices 4, USD/Mcf 8, 7, 6, 5, 4, 3, 2, 1,, 6,9 6,5 5,6 Q1-17 Q2-17 Q3-17 Gas prices up 24% quarter on quarter due to improved market conditions and increased deliveries of higher quality gas.

11 Q3 217 highlights In the third quarter 217, Matra s operating and financial performance continued to improve. Maxim Barskiy, CEO Revenue of TUSD 2,21 (Q317: TUSD 1,744), up 26% Cash Flow from Operations, before changes in working capital, of TUSD 21 (TUSD -417) EBITDA of TUSD 256 (TUSD -321) Result for the period of TUSD -1,795 (TUSD -2,177) Earnings per share amounted to -.5 USD/share (-.7 USD/share) Oil and gas gross production amounted to 713 boepd, up 5% Four production wells drilled in second quarter were put in production during the third quarter 217 In short, our ambition is to drill more wells in the coming year to further improve financial performance by adding profitable oil and gas production in line with the long term target of 6, boe per day. Maxim Barskiy, CEO

12 Revenues TUSD TUSD Q3-16 Q3-17 Production growth and higher prices drive revenues Non-cash revaluation of hedge position reduced Q3 revenues

13 Production cost / EBITDA TUSD USD/bbl ,7 49, , , ,89 47, 46, 45, , 43, Q1-17 Q2-17* Q3-17 Oil and gas production costs EBITDA Received oil price 42, * - Non-recurring listing costs of TUSD 158 recorded in the second quarter 13

14 Production cost per boe USD/bbl 25, 22,84 2, 19,54 15, 15,91 1, 5,, Q1-17 Q2-17 Q3-17 Improved efficiency reduce production costs per boe 14

15 Financial Information Income statement TUSD Jan Sep 217 Jan Sep Revenues 7,31 3,428 5,146 EBITDA 756-2,47-2,75 Balance sheet TUSD 3 Sep, Dec 216 Oil and Gas Properties 81,279 76,882 Cash and cash equivalents 751 1,532 Shareholders Equity 23,765 23,98 Financial Liabilities (non current) 52,55 47,15 15

16 Share Price Development SEK/share Volume ' Shareholders Shares Capital, % Rovelo Investments Ltd ,5 SIX SIS AG ,53 Clearstream Banking S.A ,5 Forsinvest AB ,88 Mangold Fondkommission ,6 UBS Switzerland AG ,89 Filip Engelbert 75 1,89 Avanza Pension ,55 Fibonacci Growth Capital 5 1,26 Dividend Sweden AB ,72 Others ,68 Total

17 Summary & Outlook Attractive investment climate & well positioned to grow profitably in an improved market environment Unexploited asset base and extensive portfolio of profitable growth opportunities at current prices Improving performance from new wells Higher expected returns on future investments in drilling Active drilling & development program targeting 6, boepd Significant revenue growth Financial turn around & focus on economics and efficiency Identified M&A opportunities

18 Investment Highlights Attractive valuation Experienced Board and Management Poised for organic growth Strong development plan Large undeveloped reserves 18