Corporate Presentation April 2015 Forward Looking Statements This presentation contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change. 2 Company Overview • CE was formed in 2006 • IPO Completed in November 2006; TSX-V:CE • Aggregated 91 gross sections of oil and gas tenures in NEBC • Consolidated 100% ownership of the CBM Project in 2012 • CBM Project has 497 BCF of total resource potential • Sold the Company’s Montney holdings in July 2014 • Own water disposal rights to the deeper formations under 50,000 acres (78 sections) • 90.4 million shares (basic), 94.5 million shares fully diluted • Management and Directors own 19.6% on a fully diluted basis • No debt, positive working capital, and $2.1 million on deposit with Oil & Gas Commission 3 Investment Highlights • The Company holds a large land base covering a large, confirmed gas-in-place coalbed methane project. • The Company has significant water disposal rights under 50,000 acres in a very active oil & gas province that is short of water disposal capacity. • The Company owns a gas plant, pipeline, gathering system, and water disposal well. • The Company has internally developed a technology* that it believes has the potential to dramatically improve the productive and economic metrics of the Peace River coalbed methane project via cavity completions. • The Company also believes this technology can be applied to the unconventional mining of coal, diamonds, and potash and intends to pursue opportunities in these additional minerals. * This technology has not been tested in the field. Patent pending. 4 Leadership: Management Management Title Experience John Proust Chairman President, J. Proust & Associates Inc: 28 years advising public and private companies on debt and equity financing, mergers and acquisitions and corporate restructuring. Benjamin M. Jones President & CEO Founder of Peace River Project; 38 years in oil and gas exploration and production, including last 12 years focused on unconventional gas in northeast British Columbia. BS Mechanical Engineering. Danny Lee Chief Financial Officer A Chartered Accountant with more then 20 years of experience including financial reporting for Canadian and US listed companies, strategic planning, tax planning, corporate governance, due diligence. Eileen Au Corporate Secretary Extensive senior management experience in a variety of public companies in the areas of finance and compliance. Directors Directors Title Experience John Proust Chairman President, J. Proust & Associates Inc.; 28 years advising public and private companies on debt and equity financing, mergers and acquisitions and corporate restructuring; Director of New Zealand Energy Corp. and Director of Outrider Energy Corp. Benjamin M. Jones Director, CEO, Pres. Founder of Peace River Project; 35 years in oil and gas exploration and production, including last 15 years focused on unconventional gas in northeast British Columbia. BS Mechanical Engineering. Kyle Burnett Director Chairman, CEO/President of Burnett Petroleum Company, Magnolia Petroleum Company and Arcadia Operating, LLC. as well as a board member for Arcadia Exploration and Production Company; 34 years in exploration and production of oil and gas. Jonathan Bahnuik Director Mr. Bahnuik has approximately 10 years’ experience in oil and gas law. Mr. Bahnuik has represented the Company since 2006 and has an intimate knowledge of the Company’s assets and history. Win Purifoy Director Co-founder and co-manager of Cibolo Capital Partners. Cibolo founded Senderra RX Partners in 2010, a Texas-based Specialty Pharmacy with current annual revenues of $350 million. Founder of Value Added Communications. Mr. Purifoy has over 30 years of experience in sourcing, structuring and managing equity investments in energy, agriculture, medical, technology, printing, real estate, financial services, and telecom. In addition, Mr. Purifoy was a co-founder of Canada Energy Partners in 2006, served as a director from 2006-2009. 5 CE Land Base & Pipeline Access Gross Acres 58,613 Shallow: Net Acres 57,341 Proposed TCPL Pipeline 2 BCF/d Est. Op. Q2 2016 Pipeline 6 Peace River CBM Project Summary • 78 Gross Sections of CBM Rights; • 24 wells drilled to date on Project • Gas Plant & Pipeline Constructed in 2008 • Water disposal capacity established • 8 wells put on production at end of 2008 • Netherland Sewell Resource Assessment ascribed 497 BCF net to CE of Proved, Probable, and Possible Reserves and Contingent Resources • Field currently shut-in pending better gas prices and application of proprietary completion technique 7 Regional Gething Structure Map All CE lands strategically situated on a major positive structural feature on the Peace River Arch. Gething coals were buried deep creating high coal rank &high gas contents, then were uplifted into the depth range conducive permeability development. 8 Peace River CBM Project Area 9 Net Coal Isopach Net Coal Thickening Southwesterly 10 Total Gas & Water Production Total Gas & Water Production, US units Gas Volumes, Mcf 900 2000 Normalized Average Production per well= 71 mcf/d & 168 bw/d 1800 800 1600 700 1400 600 1200 500 1000 400 800 300 600 200 400 100 200 0 Production Normalized 52%/Yr Incline Water Volume, bbls 1000 Field Shut in April 16, 2010 Pump Replacement/ Workover 0 Gross Gas Produced Net Gas Sales Total Produced Water Linear (Gross Gas Produced) 11 Strategic Acquisition – Hudson’s Hope Gas Ltd. (“HHG”) • CE acquired all the outstanding shares of HHG in June 2012 for 2 million shares of CE stock. • This acquisition was strategic for the following reasons: 1. Consolidated ownership and operations of the CBM project in CE. 2. Consolidated ownership and control of the Peace River CBM Gas Plant which has an $8 million (100%) replacement cost. This gas plant is a key asset in both the CBM and Montney developments. 3. Consolidated ownership and control of the only water disposal wells within 35 miles of the Peace River Project. These disposal wells are critical to the commercial development of both the CBM and the Montney Shale. 4. Doubled CE’s CBM net proved, probable, possible, and contingent resources to 497 BCF 12 CE Deep Water Disposal Rights Deep Water Disposal Rights: Gross Acres 50,069 Net Acres 25,035 13 Salt Water Disposal Well Locations 54 Miles ACTIVE SUSP 70 Miles 14 Go Forward • CE has four primary assets: • 1. CBM Project with 497 BCF of resource potential • 2. High capacity water disposal in a province short of disposal capacity • 3. Gas plant • 4. A technology that we intend to implement in the CBM project to enhance the economics; and to apply this technology in the unconventional mining of coal, diamonds, and potash. CE will attempt to secure a water disposal contract to generate near-term cash flow and to monetize/develop its undeveloped water disposal rights. CE will, by natural expirations, reduce its CBM lands to +25% of present holdings in the core of thickest coal deposits and in proximity to its production facilities. This core acreage contains a disproportionate share of the gas resource potential under Company lands. CE will attempt to implement its technology in the Peace River CBM Project and to exploit 15 opportunities in additional CBM plays and in coal, diamond, and potash prospects. Summary • 91 gross sections strategically located major structural feature with CBM potential • Approximately $56 million historical capex into the CBM Project • 23.6 BCF 2P Reserves • 79 BCF Possible Reserves • 394.1 BCF CBM Contingent Resources • 497 BCF Total CBM Resource Potential • Pipeline connected • Gas Plant in place • Water disposal established • 50,000 ac (77 gross sections) of undeveloped disposal potential 16
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