twitter.com/CalimaEnergy Liquids-Rich Montney Formation linkedin.com/company/calima-energy.com Western Canada www.facebook.com/CalimaEnergy July 2018 www.instagram.com/calimaenergy
DISCLAIMER This presentation has been prepared by Calima Energy Limited (Company), based This presentation is presented for informational purposes only. It is not intended on information available as at the date of this presentation. The information in this to be, and is not, a prospectus, product disclosure statement, offering presentation is provided in summary form and does not contain all information memorandum or private placement memorandum for the purpose of Chapter 6D of necessary to make an investment decision. the Corporations Act 2001. Except for statutory liability which cannot be excluded, the Company, its officers, employees and advisers expressly disclaim any The purpose of this presentation is to provide general information about the responsibility for the accuracy or completeness of the material contained in this Company. It is not recommended that any person makes any investment decision presentation and exclude all liability whatsoever (including in negligence) for any in relation to the Company based solely on this presentation. This presentation loss or damage which may be suffered by any person as a consequence of any does not necessarily contain all information which may be material to the making information in this presentation or any error or omission there from. The Company of a decision in relation to the Company. Any investor should make its own accepts no responsibility to update any person regarding any inaccuracy, omission independent assessment and determination as to the Company’s prospects prior to or change in information in this presentation or any other information made making any investment decision, and should not rely on the information in this available to a person nor any obligation to furnish the person with any further presentation for that purpose. information. This presentation does not involve or imply a recommendation or a statement of The petroleum resources information in presentation is based on, and fairly opinion in respect of whether to buy, sell or hold securities in the Company. The represents, information and supporting documentation in a report compiled by securities issued by the Company are considered speculative and there is no technical employees of McDaniel and Associates Ltd, a leading independent guarantee that they will make a return on the capital invested, that dividends will Canadian petroleum consulting firm registered with the Association of Professional be paid on the shares or that there will be an increase in the value of the shares in Engineers and Geoscientists of Alberta, and was subsequently reviewed by Mr Mark the future. Sofield, a consultant to the Company. Mr Sofield holds a BSc. Geology (Hons), is a Geologist with over 20 years of experience in petroleum geology, geophysics, This presentation contains certain statements which may constitute “forward - prospect generation and evaluations, prospect and project level resource and risk looking statements” . Such statements are only predictions and are subject to estimation and is a member of the American Association of Petroleum Geologists. inherent risks and uncertainties which could cause actual values, results, Mr Sofield has consented to the inclusion of the petroleum resources information performance or achievements to differ materially from those expressed, implied or in this announcement in the form and context in which it appears. projected in any forward-looking statements. No representation or warranty, express or implied, is made by the Company that the matters stated in this presentation will be achieved or prove to be correct. Recipients of this Print date 16/07/18 presentation must make their own investigations and inquiries regarding all assumptions, risks, uncertainties and contingencies which may affect the future operations of the Company or the Company's securities. The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. 1
2 INTRODUCTION TO CALIMA Capital Structure Ordinary Shares 978 M Management Perf. Equity (1) 55.5 M Market Capitalisation (2) $55 M Cash & Securities (no debt) $5 M Shareholders Montney Calima owns 72,000 acres of drilling rights Board/Management/Founders (4) 23.03% One of the best resource plays in North America Euroz Principals & Clients 8.29% Prospective resource of 475 mmboe (3) Small Cap Institutions 4.80% Drilling commencing Q4 2018 Pacific World Energy Ltd 3.43% Early monetisation strategy Includes performance shares, performance rights ($0.15) and options ($0.09 and $0.12). For details see prospectus dated June 30 th 2017 (1) Based on the closing price on July 10 th 2018 (2) (3) McDaniel & Associates Report refer Appendix 2 (4) Founders includes former major shareholders of TSV Montney Limited and TMK Montney Limited who entered into voluntary escrow agreements until April 2019 2
MANAGEMENT & MONTNEY Management Team • Havoc Partners joined the Calima management team in May 2017. • Five geoscientists that have worked together for 18 years (2) . 3 • Founders of Fusion Oil & Gas (AIM) and Ophir Energy (LSE). • Discovered more than 2,500 boe. • Ophir was the largest ever E&P IPO in London entering FTSE 250 after listing. • Peak market cap in excess of £2 billion. • Havoc Partners established as an investment vehicle in 2014. A New Way To Map The Montney • Geoscientists at TKM Montney Ltd developed a new mapping technique to predict areas within the Montney that would be liquids rich • Used data from more than 1,400 wells to create a multi- component data model. • Early mapping in 2014 predicted that the Calima Lands would be liquids rich and guided the acreage acquisition strategy. • Havoc invested in 2014 and joined the Board of TKM. • At this time the Calima Lands were not considered to be part of the Montney trend (1) . • Subsequent drilling by adjacent operators validated the Common Recovery Segment Mapping. prediction. Example from Inga area NE British Columbia. (1) Appendix 5 (2) Appendix 3 & 4 From, Cockerill & Hughes, CSEG Recorder, March 2016. 3
THE MONTNEY • C$5.2 Billion invested in 2017 – predicted to increase to C$7.5 Billion by 2022 (1) - The most active oil & gas play in Canada. • 7 Billion cf/d of gas production a 24% increase over the last 12 4 months (2) . • 250,000 bbl/d of condensate production - predicted to increase MONTNEY to 500,000 bbl/d by 2022. • 350 Montney wells spudded during Q1 2018; almost double DUVERNAY the same period in 2016. BAKKEN MARCELLUS • Estimated remaining reserves 449 tcf of gas , 14.4 Billion bbls of UTICA BARNETT condensate and 1.1 Billion bbls of oil (3) . Basin covers 130,000km 2 of British Columbia & Alberta. EAGLE FORD HAYNESVILLE BREAKEVENS FROM SELECTED* SHALE BASINS $100 $20,000 • Montney reservoirs are siltstones encased in shale source Full-cycle breakeven (US$) $17,500 Cost to acquire acreage (US$/acre) rocks. $80 $15,000 $89 FULL CYCLEBREAKEVEN (US$/bbl) • Minerology predisposed to excellent ‘ fracability ’ allowing COST TO ACQUIRE (US$/acre) $12,500 $60 $66 $64 hydrocarbons to flow at greater quantities delivering some of $58 $10,000 $57 $40 $54 the best single well economics in North America . $7,500 $5,000 • Thicker than most other unconventional plays (200-300m) - $20 $2,500 allows for multi-layer completions from one surface location. $- $- BARNETT HAYNESVILLE BAKKEN MONTNEY MARCELLUS EAGLE FORD • C$4,437/acre - Weighted average cost of undeveloped * Source RS Energy Group, Feb 2018 Montney land sales during 1H 2018. COST TO ACQUIRE AREA (km 2 ) PLAY GROSS THICKNESS ACREAGE (US$/acre) MONTNEY (CAN) 130,000 Up to 300m $5,000 BAKKEN (US/CAN) 520,000 Up to 40m $12,500 BARNETT (US) 13,000 25-180m ~$6,000 EAGLE FORD (US) 52,000 15-85m $15,000 (1) Wood Mackenzie Unconventional Service, Montney Key Play Report, April 2017. (2) http://www.jwnenergy.com/article/2018/5/montney-drilling-activity-roars-near-record-q1/ HAYNESVILLE (US) 24,000 40-110m $6,500 (3) The Ultimate Potential For Unconventional Petroleum From The Montney Formation Of British Columbia MARCELLUS (US) 247,000 25-90m $10,000 and Alberta, National Energy Board, November 2013 4
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