tsx venture - “rgy” october 1, 2005
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TSX Venture - “RGY”October 1, 2005
MOVING IN THE RIGHT DIRECTION
Investment Snapshot• Area of focus: Central Alberta, Peace River
Arch and Southwestern Saskatchewan
• Current production: 1,000 Boe/d
• 2005 estimated cash flow: $7.5 million
• 2005 estimated CFPS: $0.38/share
• Total net debt: $ 5.5 million
• Shares outstanding: 19.8 million
• Recent share price: $1.62 per share
The RIVAL Team Colin Ogilvy, President and Chief Executive Officer
28 years of experienceJohn Clark, Vice President, Engineering
29 years of experienceJohn Wilson, Vice President, Exploration
27 years of experience George Ziroff, Vice President, Finance
28 years of experienceDirectors:
Larry M. Jones Doug MartinRoy GillespieHarley WingerColin Ogilvy
Corporate Philosophy
• Experience & track record of
management team is “cornerstone”
for success
• Strict adherence to corporate strategy
and disciplined focus for all operations
• Maintain financial strength and flexibility
at all times
Corporate Strategy
• High working interest
• Operatorship or control
• Sweet gas or light Oil
• Depth < 1,800 metres
• Access to infrastructure
• Land availability
• Year-round accessible
Edmonton
Calgary
Existing Core Areas
Loon
Robsart
Production area
Exploration area
Bellshill/Killam
East Central
Core Areas Strategy• Primary emphasis on the shallower,
multi-zone areas within Alberta & SW Sask.
• Target areas where Rival has the technical expertise and a track record of success
• Operations within areas with availability to cost-effective facility infrastructure
• Focus on growth through the drill bit while targeting overall low cost structure
Growth Strategy
• Internally generated production growth
• Full-cycle exploration
• Two-pronged approach to growth:•“Grassroots” exploration•Complementary or strategic property acquisitions or corporate
transactions
2005 Corporate Objectives• Increase prospect inventory and landholdings
• Focus on grassroots exploration activity
• Increase operatorship and control over
Company interests to 75% of production
• Operate at least 90% of capital expenditures
• Complete one strategic acquisition
• Average 900 – 1,000 boe/d for 2005
• Target 1,200 boe/d exit rate production
T7
T5
T3
T1
Lim
it of
Mar
ine
Ss.
Lim
it o
f M
ari
ne
Ss.
RobsartBearpaw/Belly River
• Shallow gas (200-600m), sweet
• Rival 50% WI
• 3 well drilling program
• Extensive infrastructure
• 3 company owned plants
• Undeveloped acreage
• 53,000 net acres
• Production (net) 2.0 MMcf/day
ROBSARTR24W3R25R26
T3
T4
T5
Recent Rival wells
Killam
T41
T42
R 14 W4
6-30 Battery
Locations
Bellshill Lake
T41
T42
R13W4
Locations
Loon Area
FARM IN BLOCK
3D OUTLINE
Locations
• Large farm-in on Metis lands (Rival 33%)
• Crown equivalent royalty• Slave Point/Granite Wash (<1,800 m.)• 3D survey complete• Storm Exploration: experienced operator
FARM IN BLOCK
3D OUTLINE
2005 Performance (6 mos.)• Completed and tied-in 9 wells from Q4
successful drilling program
• Drilled 5 of 6 wells successfully
• Production averaged 785 boe/d
• Oil & gas sales were over $6.6 million
• Cash flow was over $3.0 million
• Cash flow per share was $0.16/share• Sold Suffield, Sask. property
for $950,000
Potential for Growth• Solid, low risk development drilling
program to be executed• Attractive long-term commodity price
outlook
• Drilling opportunities available
• Competitive industry - Available capital• Significant asset and corporate
rationalization activity underway
Corporate Activity (Q4)
• 3 wells at Robsart, Sask. (50%)
• 2 wells at Bellshill
(80%)
• 2 wells at Killam (85%)
• 2 wells in East Central (55%)
• 2 seismic programs (100%)
• Property or corporate acquisition
Production to Date:
FE. MR. MA.
710
775840
(2005 monthly average boe/d)
Oil (bbls)Gas (mcf)
JA.
780
JN.
825810760
AP. JL. AU. SE.
875950
OC.
1000
Outlook for Growth• 100 boe/d to be placed on production
• Strong inventory of drilling prospects:
• Robsart: 12 drilling prospects
• Bellshill/Killam 4 drilling prospects
(3D)
• East Central: 5 drill-ready prospects
• Loon: 3 drilling
prospects (3D)
• New exploration areas targeted• $8.5 million capital budget
for 2005
Outlook: Production
20032004
E2005
F
10
625709
(Yearly average Boe/d)
Oil (bbls)Gas (mcf)
2002
900
Outlook: Revenue($000)
20022003
10,500
9,000
14,500
2004E
100
2005F
Outlook: Cash Flow
2004E2003
0
4,400
2,280
2002
($000)
7,500
2005F
Outlook: Cash Flow per Share
2003
0.0
0.230.20
2002
($)
2004E 2005F
0.38
2005 Forecast Performance (budgeted)
• Production (‘05 Avg.): 900 boe/d
• Revenue: $ 14.5 million
• Cash flow $ 7.5 million
• Cash flow per share $ 0.38/sh.
• Net income $ 1.8 million
• Net income per share $ 0.09/sh.
(Fcst.)
Rival Energy Investment
Fundamentals• Proven management team
• Disciplined operating strategy
• Inventory of drilling prospects
• Strong balance sheet / financial
flexibility
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