FIRSTENERGY | East Coast Energy Conference
March 2015
Canbriam Energy Inc.
ANALYST: Cody R. Kwong, P.Geol.
ASSOCIATE: Rachel C. Eddy, P.Eng.
Corporate Profile
Canbriam - Montney Fault Blocks
(March 2015)
Canbriam Energy Inc. is a privately held mid-cap producer
pursuing development of the Montney across its ~61,000 net
acre land position in northeast BC at North Altares, where it
has de-risked an impressive inventory of over 700 liquids-rich
natural gas locations.
North Fault
Block
Development activities to date have delineated a 25,000 acre
sweetspot within the Company’s Altares core featuring a
localized, over-pressured Montney reservoir that is delivering
uncharacteristically high liquids yields for the immediate region
alongside some of the best initial natural gas rates observed out
of the entire Montney fairway.
East Fault Block
Canbriam has outlined a preliminary development plan for
a staged infrastructure build out that could ultimately allow
for corporate natural gas production to reach 450 mmcf/d in
2018e+ with the cooperation of supportive commodity and
capital markets.
Canbriam Development
Focus Area
Main Fault
Block
The Company’s key financial partners include Warburg Pincus,
ARC Financial Corp., Ontario Teacher’s Pension Plan, GE Asset
Management and Blackrock.
South Fault
Block
Operational Update
Having been restricted to 50 mmcf/d (or ~10,000 boe/d, 20%
liquids) throughout 2014e, Canbriam has recently begun
ramping-up production through its Phase I facility (80 mmcf/d)
with ~16 wells expected to be brought on production by mid2015e.
Source: FirstEnergy Capital Corp., Company Reports
For 2015e, we forecast Canbriam will spend between $350 to
$400 mm with which it could run a 3 rig drilling program and
complete construction on a water hub (1H15e) as well as a
Phase II expansion (80 mmcf/d) by the end of 4Q15e and bring
total corporate facility capacity to upwards of ~210 mmcf/d
exiting the year.
Canbriam - Altares
(March 2015)
Financial Outlook
Altares processing facility expansion
450
Following the Company’s private placement for US$250 mm of
senior unsecured notes in 4Q14, along with remaining proceeds
available through its Series C preferred shares and $145 mm
line of credit, we believe Canbriam is fully funded into 1H16e.
Investment Summary
We do not provide formal research coverage on Canbriam
Energy Inc. and therefore are unable to provide an investment
option for the stock.
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Potential future
expansion of
b-72-A to 400 MMcf/d
350
300
MMcf/d
Beyond this maintenance case, which includes two further
facility expansions to add 240 mmcf/d of capacity, Canbriam
would require a capital injection or a slower growth trajectory to
match organic financial capacity. Management will look to make
a decision on whether to defer investment in these additional
phases, primarily based on the state of commodity prices, by
mid-year 2015e which may or may not coincide with an IPO
event in the coming quarters/years.
400
250
200
Under
construction
150
100
50
0
b-24-H: 50 MMcf/d current capacity
2013
2014
2015
Source: FirstEnergy Capital Corp., Canbriam Energy Inc.
2016
FIRSTENERGY | East Coast Energy Conference
March 2015
Canbriam Energy Inc.
Canbriam - North Montney
(March 2015)
Fireweed
94-A-11
Gundy
94-B -9
Kobes
Blueberry
T87
Inga
Altares
94-B -8
T85
Attachie
Farrell
Creek
T83
94-B -1
ARX
ARX/TOU
BNP
Canbriam
CNQ
CR
Progress
PGF
PPY
RDS
KEL
SU
TOU
YO
F Canbriam Montney
Wells
F Montney Wells
of Interest
T81
93-O-16
R26
R24
R22W6
Source: FirstEnergy Capital Corp., geoSCOUT
Management Team
Name
Paul Myers
Key Role
President & CEO, Chairman
Rob Froese
CFO
John Nieto
Executive VP, Subsurface
Gary Gardiner
COO
Donna Phillips
Executive VP, Business Development
Larry Cole
Art Flaws
Nauman Rasheed
Sean Brady
VP, Finance
VP, Drilling & Completions
VP, Production & Facilities
VP, Strategic Planning
Description
Formerly President & CEO of Esprit Energy Trust; Prior to held various positions with Encana, Statoil
Exploration US and Amoco Production Company
Prior to CFO & VP, Finance of NuVista Energy Ltd.
Formerly VP, Exploration of Esprit Energy Trust; Prior to held various positions with Anadarko
Petroleum Corporation, Exxon Mobil Corporation and Mobil
Formerly President & CEO of Peregrine Energy Ltd.; Prior to held various executive level positions with
Encana Corporation/AEC
Formerly Director and VP, Land at Direct Energy/Centrica Canada Ltd.; Prior to held various positions
with CanOxy (Nexen), Wascana Energy and SaskOil
Prior to was Manager of Financial Accounting at Esprit Energy Trust
Prior to held various positions with Encana Corporation and Petro-Canada
Prior to held various positions with Pengrowth Energy Corp.
Prior to held various positions with Encana Corporation, Cenovus Energy Inc., and Schumberger
Board of Directors
Peter R. Kagan
David Krieger
Nancy Smith
Zvi Orvitz
Robert Hodgins
Steven VanSickle
Tim Holt
Director
Director
Director
Director
Director
Director
Director
Warburg Pincus
Warburg Pincus
ARC Financial
Teacher's Private Capital
Independent
Independent; Previously President & CEO of Santonia Energy Inc.
Independent
Source: Company Reports, FirstEnergy Capital Corp.
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