DISCLAIMER This presenta-on has been prepared by Calima Energy Limited (Company), prove to be correct. Recipients of this presenta-on must make their own based on informa-on available as at the date of this presenta-on. The inves-ga-ons and inquiries regarding all assump-ons, risks, uncertain-es informa-on in this presenta-on is provided in summary form and does not and con-ngencies which may affect the future opera-ons of the Company contain all informa-on necessary to make an investment decision. or the Company's securi-es. The purpose of this presenta-on is to provide general informa-on about The Company does not purport to give financial or investment advice. No the Company and Calima. It is not recommended that any person makes account has been taken of the objec-ves, financial situa-on or needs of any investment decision in rela-on to the Company based solely on this any recipient of this document. Recipients of this document should presenta-on. This presenta-on does not necessarily contain all carefully consider whether the securi-es issued by the Company are an informa-on which may be material to the making of a decision in rela-on appropriate investment for them in light of their personal circumstances, to the Company. Any investor should make its own independent including their financial and taxa-on posi-on. assessment and determina-on as to the Company’s prospects prior to making any investment decision, and should not rely on the informa-on in This presenta-on is presented for informa-onal purposes only. It is not this presenta-on for that purpose. intended to be, and is not, a prospectus, product disclosure statement, offering memorandum or private placement memorandum for the purpose This presenta-on does not involve or imply a recommenda-on or a of Chapter 6D of the Corpora-ons Act 2001. Except for statutory liability statement of opinion in respect of whether to buy, sell or hold securi-es in which cannot be excluded, the Company, its officers, employees and the Company. The securi-es issued by the Company are considered advisers expressly disclaim any responsibility for the accuracy or specula-ve and there is no guarantee that they will make a return on the completeness of the material contained in this presenta-on and exclude all capital invested, that dividends will be paid on the shares or that there will liability whatsoever (including in negligence) for any loss or damage which be an increase in the value of the shares in the future. may be suffered by any person as a consequence of any informa-on in this presenta-on or any error or omission there from. The Company accepts no This presenta-on contains certain statements which may cons-tute responsibility to update any person regarding any inaccuracy, omission or “forward-looking statements”. Such statements are only predic-ons and change in informa-on in this presenta-on or any other informa-on made are subject to inherent risks and uncertain-es which could cause actual available to a person nor any obliga-on to furnish the person with any values, results, performance or achievements to differ materially from further informa-on. those expressed, implied or projected in any forward-looking statements. No representa-on or warranty, express or implied, is made by the Company that the maMers stated in this presenta-on will be achieved or 1
Corporate Summary ASX Code CE1 Ordinary Shares Comple-on of farmin arrangements • over the liquids-rich Montney play. 490.5 M Management Perf. Equity (1) ASX lis-ng – CE1. • 55.5 M Market Capitalisa-on (2) Havoc Partners team join Calima on • $16.2 M Cash & Securi-es (no debt) (3) the board and management and as shareholders. $7.5 M Enterprise Value (EV) Ac-ve work program and growth • $8.7 M Board & Management own strategy. 22% (1) Includes performance shares, performance rights ($0.15) and op-ons ($0.09 and $0.12). For details see prospectus dated June 30 2017 (2) Based on the closing price on July 30 2017 (3) Es-mated cash balance at comple-on (pre-comple-on Montney investment ~$1.5 M) 2
TEAM HAS BUILT, GROWN AND SOLD SUCCESSFUL COMPANIES TOGETHER MONTNEY - A PREMIER NORTH AMERICAN LIQUIDS RICH ENERGY PLAY MONTNEY - STRONG INSTITUTIONAL AND INDUSTRY APPETITE FOR THE PLAY STABLE INVESTMENT DESTINATION LOW TECHNICAL RISK WITH EXCELLENT UPSIDE MANAGEMENT ALIGNED & MOTIVATED >20% OWNERSHIP SIGNIFICANT VALUE ARBITRAGE VS. MONTNEY PEERS 3
THE MONTNEY PLAY • Covers an extensive area (130,000 km 2 ) of Bri-sh Columbia and Alberta. • Es-mated remaining 449 Tcf of gas, 14.4 bn bbls of condensate and 1.1 bn bbls of oil (1) . • Is the most ac-ve play in Canada with C$5.2 Bn in investment in 2017 rising to C$7.5 Bn in 2022 (2) . • Current produc-on is 6.3 bcfed (including 247,000 bbld condensate and other liquids) which is predicted to more For detailed than double by 2022 (2) . map see Slide 6 • Siltstone play offering beMer produc-vity than shale plays. • Thicker than most other unconven-onal plays (200-300 m) allowing for mul--layer comple-ons from one surface loca-on. • Ideal rock proper-es for fracture s-mula-on resul-ng in enhanced produc-vity. • Breakeven costs in the liquids rich window of the Montney play (US$1.69/mcfe) are amongst the most compe--ve in North America, delivering excellent returns at current prices (2) . (1) The Ul-mate Poten-al For Unconven-onal Petroleum From The Montney Forma-on Of Bri-sh Columbia and Alberta, Na-onal Energy Board, November 2013 (2) Wood Mackenzie Unconven-onal Service, Montney Key Play Report, April 2017 4
WHY THE MONTNEY? – PROVEN PERFORMANCE YTD INDEXED SHARE PERFORMANCE BY BASIN Montney Permian Bakken Marcellus Eagle Ford DJ Basin 250 Indexed Share Price Performance 200 150 100 50 0 www.enercominc.com Data: Bloomberg, compiled by Enercom “ The super liquids rich window of the Montney in Bri6sh Columbia will emerge as one of the top plays in Western Canada and perhaps in North America.” BMO Capital Markets Research Note 5
MONTNEY – CALIMA LANDS FARMIN Calima has completed a farmin with TSV-Montney Ltd and • CumulaYve WI Earned Stage Latest Date TMK-Montney Ltd (TSV/TMK) to acquire up to 55% of the ContribuYons (cumulaYve) Calima Lands. 1 C$5 M 20% (20%) 01 Aug 2018 C$10.5 M invested in the Calima Lands by TSV/TMK. • 2 C$12 M 17.5% (37.5%) 28 Feb 2019 3 C$25 M 17.5 % (55%) 28 Feb 2020 Calima will fund a three stage earn-in. • Stage 1 (C$5 M): • Stage AcYviYes 1 Acreage acquisi-on, 3D seismic, Drill planning C$1.5 M invested already. Ø 2 Drill and complete one x 2,000 m Hz well An-cipate full-spend by early 2018. Ø Drill and complete two x 2,000 m Hz wells 3 Stages 2 & 3 (C$20 M): • Entry to stages two and three are at our Ø elec-on. Three-well drilling campaign an-cipated Ø 2H 2018 Calima also owns 11.2% of the issued share capital of • TMK, resul-ng in a fully diluted economic interest of 57%. 6
MONTNEY – LAND SALES 2011 ONWARDS Ac-vity associated with the Montney unconven-onal play • 2011 2013 has spread progressively north eastward. Prior to 2013 the Montney was predominantly a dry gas play. • Since 2013 most of the ac-vity has been focussed on the • liquids rich part of the play. The liquids poten-al of the Calima Lands was iden-fied in • 2013 using a proprietary geoscience work flow. TSV/TMK started acquiring land in the Caribou area in 2014 • moving ahead of industry trends (average land cost $130/ acre). The Calima Lands now lie within the accepted limits of the • Montney liquids rich play. 2015 AUGUST 2017 In July 2017 a single parcel of land covering 14,000 acres • aMracted a record bid of $77 M ($5,600/acre) In August 2017 industry requested that a large con-guous • acreage parcel of c. 100,000 acres to the east of the Calima Lands be included in an upcoming land sale. This is notable because of its very large size and its poten-al • to extend the Montney play eastwards. 2017 Montney Horizontal LAND SALES Produc-on Well 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017 August 2017 Montney Acreage Limit $ = C$ 7
MONTNEY – CALIMA LANDS Calima has the right to earn 55% of an acreage posi-on referred • to as the Calima Lands, located in a liquids-rich window of the CNRL Montney play in Bri-sh Columbia. Black Swan Acreage posi-on currently comprises 75 Sec-ons covering • Saguaro Resources 51,455 acres. Progress Energy Chinook Energy Calima Lands acquisi-on guided by proprietary geoscience • Painted Pony workflow which enabled low-cost licensing ahead of Todd Energy mainstream industry ac-vity. Kelt Exploration Arc Resources Acquisi-on phase to con-nue during 2017. Ø Polar Star 3D seismic over the core of the Calima Lands. • Extensive historical well database • More than 60 well penetra-ons through the Montney Ø within 35 km. Ver-cal well penetra-ons through the Montney in and Ø around the Calima Lands demonstrate that the sec-on is analogous to adjacent produc-on. Plan to drill three horizontal wells in the winter of 2018/19. • 2017 Montney Wells Pre- 2017 Montney Wells For map loca*on see Slide 4 8
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