Corporate Presentation. August 2015

Transcription

1 Corporate Presentation August 2015

2 Reader Advisory Certain statements in this presentation constitute forward looking statements or forward looking information within the meaning of applicable securities laws ( forward looking statements ). Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Strongbow Resources Inc. ( Strongbow or the Company ), or developments in Strongbow s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward looking statements. In particular, statements concerning oil and gas reserves may involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. No independent third party has reviewed the reasonableness of any such statements, estimates or assumptions. No member of the Strongbow team represents or warrants that such forward looking statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the forward looking statements. Similarly, no representation or warranty is made that the assumptions on which the forward looking statements are based may be reasonable. No audit, review or verification has been undertaken by Strongbow or any independent third party of the assumptions, data, results, calculations and forecasts presented or referred to herein. The recipient acknowledges that neither it nor Strongbow intends that Strongbow act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person. Each of the recipients, by accepting and providing this Corporate Presentation respectively, expressly disclaims any fiduciary relationship and agrees that the recipient is responsible for making its own independent judgments with respect to any transaction and any other matters regarding this Corporate Presentation. Forward looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward looking statements may also include any statement relating to future events, conditions or circumstances. Strongbow cautions you not to place undue reliance upon any such forward looking statements, which speak only as of the date they are made. Forward looking statements relate to, among other things, changes in the resource market; the market focus of Strongbow s revenue mix and margin targets; operations priorities; and strategy for its products and solutions. The risks and uncertainties that may affect forward looking statements include, among others, the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of Strongbow s customers, demand for Strongbow s assets and other risks detailed from time to time in Strongbow s filings with the Securities and Exchange Commission and Canadian provincial securities regulators. Forward looking statements are based on Management s current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. 2

3 Corporate Profile and Overview Listed on US.OTC Exchange STBR.QB Preliminary TSX Venture Exchange listing approval Basic Shares Outstanding 29,881,824 Insiders and Founders Ownership Largest Shareholder 1 Holloman Value Holdings, LLC 52 Week Trading Range Market Valuation 30% 6,600,000 (or 22% of O/S) $ $0.50 per share $14.9 million 1 no other shareholders hold greater than 10% of outstanding shares As of June 1,

4 Management Team Michael Caetano President, Chief Executive Officer and Director Over 20 years of successful business development and leadership in a variety of private and public companies Specializes in capital funding, mergers and acquisitions Possesses a combination of high energy, entrepreneurial spirit and innate curiosity Kent Edney, P.Eng. Chief Operating Officer Over 14 years of extensive operational and technical experience in western Canada. Experience in business development, finance and public company governance Prior companies include Surge Energy, Breaker Energy, Thunder Energy and Nextraction Energy Robert DaCunha, BA Chief Financial Officer and Director Over 10 years in finance with financial institutions as well as private and public companies Serves as director for several companies and understands compliance/audit requirements Proficient in financial analysis and is detail-oriented in running a successful organization Bachelor of Arts degree from the University of Toronto Robert Madzej, BBA Director Over 10 years of experience in business development and finance Experience in business structuring and economic decision-making Bachelor of Business Administration degree from Simon Fraser University 4

5 Corporate Strategy DEVELOP ACQUIRE ENHANCE BUILD Evaluate and execute an exploitation program for the Compeer Viking light oil property Identify and capture strategic light oil acquisition opportunities where management experience provides a competitive advantage and assets yield low decline production Implement value creation through the application of new technology, engineering optimization, and internally generated drilling prospects Assemble a portfolio of solid, high working interest assets to create a 5,000 to 10,000 boepd energy company 5

6 North American Resource Plays Alaska HORN RIVER MONTNEY BARNETT Yukon Territory Northwest Territories Nunavut Canada British Columbia COLORADO Oil Gas Washington Oregon California Nevada HAYNESVILLE Alberta CARDIUM Saskatchewan Ontario Quebec Newfoundland New Brunswick Montana Maine North Dakota Minnesota Vermont New Hampshire Idaho South Dakota Wisconsin Wyoming New York Massachusetts United States Michigan Rhode Island Iowa Pennsylvania Connecticut Nebraska Utah Indiana Ohio New Jersey Colorado Illinois Delaware West Missouri Virginia Virginia Maryland Kansas Kentucky North Carolina Arizona New Mexico Tennessee Oklahoma Arkansas South Carolina MARCELLUS Mississippi Alabama Georgia Texas Louisiana Mexico Manitoba VIKING BAKKEN EAGLEFORD UTICA FAYETTEVILLE Canada Viking Light Oil Horizontal Play first horizontal well drilled in ,625+ horizontal wells drilled to date m depth and 35 o API oil Bakken Light Oil Montney Liquids-rich Gas Colorado Dry Gas Horn River Shale Gas Utica Shale Gas United States Barnett Haynesville Fayetteville Marcellus Eagleford 6

7 Viking Light Oil Fairway Fairway extends from Plato field in SW Saskatchewan to Redwater Field in Eastern Alberta Well defined light oil accumulations Ideal candidate for horizontal wells with multi-stage fractures Shallow formation depths and low cost operating environment with year round access 7

8 Compeer Viking Oil Play Apache 135 horizontal wells drilled or licenced surrounding Compeer land base Raging River Strongbow 52 horizontal wells have yielded first 4 month production rates of >50 BOPD Major players in the area include Apache, Anegada, Raging River, Novus and Penn West Anegada Penn West 2015 Viking drilling activity and licences initiated by Anegada, Novus, Rolling Hills and Spur Energy Vertical Viking Horizontal Viking > 50 bopd in 1 st 4 months 8

9 Strongbow Compeer Viking Raging River Novus Strongbow 4-32 HZ Drilled first Viking horizontal well W4 in Production from the well has established the presence of light oil with associated gas. Earned 100 percent working interest in 8 sections of land from intermediate energy company Anegada Penn West Prominent Viking oil producer Raging River drilled its first horizontal well at Compeer in 2014 (5 miles NW of Strongbow acreage) 2 Miles Anegada and Penn West continued their Viking horizontal drilling activity during 2014 Vertical Viking Horizontal Viking > 50 bopd in 1 st 4 months 9

10 Strongbow Compeer Viking Northwest Log 5 m thick % porosity Strongbow Log 4.5 m thick 18-21% porosity Southeast Log 4 m thick 21-27% porosity Strongbow log suggests Viking formation has similar thickness as Viking to the northwest and southeast, with slightly less porosity Strongbow log indicates Viking is shalier, thus likely less permeable Different completion techniques required to unlock oil flow 10

11 Compeer Offset Performance AVERAGE WELL Performance from offset wells is scattered, with peak onemonth production rates ranging from bbls/d Average well achieves 60 bbls/d peak month average oil rate and stabilizes around 15 bbl/d after one year 11

12 Compeer - Ideal Growth Candidate Large Original Oil in Place Low current recovery factor Relatively low technical, operating and producing uncertainty Reasonable potential to increase reserves, production and cash flow Per well capex less than $1.5 million Operatorship and 100% working interest in order to control capex and operations timing Year round access Availability and access to required services 12

13 Corporate Evolution Compeer Viking oil opportunity Drilled first corporate Viking horizontal oil well Earned eight sections of Crown P&NG rights from surface to basement Producing well while monitoring area competitor activity Consolidate share capital structure Completed one for four reverse split resulting in 27.5 million shares outstanding Engage technical and operating team Attracted and retained services of key technical and operational personnel Reinvigorate corporate development Identify, evaluate and capture new potential growth opportunities Source additional capital through existing and/or new shareholders Move Strongbow from emergent position to fully functional junior oil and gas operating company in Western Canada 13

14 Investment Opportunity Emergent Public Junior Oil and Gas Investment Opportunity Early Stage New Corporate Structure New Technical and Operating Team Existing Assets with Large Potential Upside Flexible, Financed, Fun Seeking New Growth Opportunities Committed to Growing Shareholder Value and Returns 14

15 Contact Information U.S. Office Suite 250, 777 North Rainbow Boulevard Las Vegas, Nevada Calgary Operations Office Suite 1000, 734 7th Avenue S.W. Calgary, Alberta Canada T2P 3P8 Michael Caetano President and CEO Investor Relations Saf Dhillon