Questfire Energy Corp. insert logo Corporation Presentation

A New Junior
Oil Exploration Opportunity
Corporate Presentation Nov. 2011
A Solid Team. A Proven Track Record.
Six-man technical and
management team with
over 150 years of
combined experience
Significant horizontal
drilling and strong
operations experience
All necessary disciplines
are in-house: land,
exploration, engineering,
operations and finance
History of organic growth and
value-creation: Stonefire Energy
Corp. and Tempest Energy Corp.
1
All team members
have experience at
senior and junior
public E&P companies
Questfire Energy:
The Investment Opportunity
Early-stage junior oilfocused company with
presence in two
exploration areas: W4
(Racosta/Richdale) and
W5 (Niton/Leaman/
Thorsby)
Exploring for medium to
light oil pools with
potential for 1 to 5
mmboe of recoverable
reserves in proven multizone areas
$6 MM IPO utilizing proven AB
structure (100% flow-through)
All planned projects are 100%
working interest and operated
Aggressive growth plan envisions drilling
5+ oil exploration wells in 2011-2012
2
Questfire Energy: Capital and Share
Structure
• Share Structure:
•
•
•
•
12.813 MM “A” Shares outstanding
1.281 MM Options on the “A” Shares priced at $0.20/sh
0.556 MM “B” Shares outstanding
“B” share conversion – standard “AB” conversion in 3 – 5 years.
• Capital Structure – As of Nov. 22, 2011:
• Positive net Working Capital of approx. $5.2MM
• No Debt
• Flow Through spending obligations:
o $1.895MM for 2011
o $6.17MM for 2012.
3
Questfire Energy Corp:
2011 – 2012 Forecast – Base Case
Drill 5 oil wells:
Forecast 223 boepd
Dec. 2011 – Apr. 2012
100% W.I.
Risked Ave. for 2012
50% light oil
2012 Financials:
Assumes no new equity
Cash Flow of $1.14MM
Exit 2012 – no debt
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2012 Capex of $3.36MM
Expect a bank line of $3.3 MM
No Capital spending past April 2012 in
this forecast
Questfire Energy: Two Exploration Areas
ALBERTA
• Target depths: 1,200-2,200 metres
• Target commodity: medium to light oil
• Target zones: Leduc, Wabamun, Rock
Creek, Ellerslie, Glauconite, Upper
Mannville, Viking, Cardium
• 7.25 net sections of land – 100% W.I.
W5 Exploration Area
Niton Leaman
EDMONTON
Thorsby
W4 Exploration
Area
Racosta
Richdale
CALGARY
5
• Target depths: 900-1,200 metres
• Target commodity: medium to light oil
• Target zones: Banff, Ellerslie, Ostracod,
Glauconite, Upper Mannville, Viking
• 10.25 net sections of land – 100% W.I.
Questfire Energy: Onward and Upward
Formation of
Questfire
Energy
Seed capital of
$1.9 MM
(flow-through
shares at
$0.20)
Acquired 8.25
sections
(5,280 acres)
of Crown and
P&NG leases
(100% WI) in
W4 for light
oil exploration
Q1
Q4
2010
Acquired 7.4
km2 of 3D
seismic in W4
Q1
Today
Acquired 1.5
sections of
land at
Thorsby –
100% WI
Acquired 2.5
sections of
land at Niton
and Racosta –
100% WI
6.7 sections of
land posted in
Niton, Thorsby
and S.Alberta
for Q4 2011 –
light oil plays
Preparing $10
MM ABstructure IPO
to close late
September
2011
Q2
Q3
2011
Shooting 21
km2 of 3D
seismic in W5
Drill:
Racosta 5-23
Niton 16-34
Thorsby 10-27
Drill 3 Net ‘E
and ‘D’’wells
Risked Ave.
production of
223 boepd
(50% oil)
Q4
2012
Management:
Experienced. Skilled. Driven.
Richard Dahl, President & CEO
Professional Engineer
• 24 years’ experience
• President, CEO, Director and
Co-founder of Stonefire
Energy Corp.
• Tempest Energy Corp., Tier
One Energy Corp., Grad &
Walker, HCO Energy, Amoco,
Dome
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John Ramescu, VP Land
Professional Landman
• 26 years’ experience
• VP Land, Director and
Co-founder of Stonefire
Energy Corp.
• Tempest Energy Corp.,
Vermilion, Ranger, Opinac,
Amoco, Dome
Fred Laudel, VP Exploration
• 31 years’ Basin-wide
exploration experience –
275+ wells
Discovered >30 mmboe.
• VP Exploration and
Co-founder of Stonefire
Energy Corp.
• Tempest Energy Corp.,
Real Resources, EOG,
Newquest, Paloma, Gulf
Ronald Williams, VP Finance & CFO
• 20 years industry finance
experience
• VP Finance, CFO and Co-founder of
Stonefire Energy Corp.
• Director Finance Vermilion Energy
Trust (1999-2006)
• Carmanah Resources, Ernst &
Young, Collins Barrow
Management:
Explorationists. Operationally Strong.
Darren Kisser, VP Engineering &
Operations
• Professional engineer with >20
years’ experience with junior,
intermediate and senior E&Ps
• VP Engineering & Operations
and Co-founder of Stonefire
Energy Corp.
• Tempest Energy Corp., Vermilion,
Norcen, Wintershall
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Bruce Shepard, VP Exploitation
• 31 years’ extensive Basin-wide
exploration and exploitation
experience. Drilled 145+ wells;
discovered >19 mmboe
• Exploration Manager and Cofounder of Stonefire Energy
Corp.
• Tempest Energy Corp.,
numerous technical and
manager roles with junior to
mid-sized E&P companies
Rod Keller, Project Manager
• >42 years’ experience in
environmental, surface land,
construction, drilling and facilities
• As President of Advance Energy
Ltd. has consulted to numerous
junior to senior E&P companies.
• Field project manager for Stonefire
Energy Corp., Tempest
Energy Corp. and Tier
One Energy Corp.
Directors
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Roger MacLeod
Independent Director
•
•
•
•
Neil Dell
Independent Director
• Professional engineer with > 40 years’ industry experience,
including 31 years with GLJ Petroleum Consultants
(VP Small Business Services)
• President, Delmar Consulting
• Senior reservoir engineer with Mesa Petroleums Ltd.
• Reservoir engineer with the ERCB
Richard Dahl
President & CEO,
Director
• 24 years’ experience
• President, CEO, Director and Co-founder of Stonefire Energy Corp.
• Tempest Energy Corp., Tier One Energy Corp., Grad & Walker,
HCO Energy, Amoco, Dome
John Ramescu
VP Land, Director
• 26 years’ experience
• VP Land, Director and Co-founder of Stonefire Energy Corp.
• Tempest Energy Corp., Vermilion, Ranger, Opinac, Amoco, Dome
23 years’ experience in corporate law and finance
Partner, Davis LLP
Formerly Partner, Burstall Winger
Director of Stonefire Energy Corp.
Questfire Energy:
Focused on Building Value
Our niche: Explore for and develop
1-5 mmboe recoverable medium
to light oil pools using the latest
technology
• Target multi-zone areas with
year-round access
• Drilling depths of less
than 2,200 metres
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• Potential for horizontal/multi-stage fracturing
technology being developed by resource players
• Grow core areas through focused exploration,
exploitation, selective acquisitions and control
of infrastructure
• Generate operated, high working interest,
quality assets
Questfire Energy:
Building Quality Operations
Create value by controlling all
phases of the exploration and
production process:
• Generate prospects in-house
• Maintain operatorship and high
working interests
• Maximize the use of in-house
technical expertise
• Quality assets with infrastructure ownership
• Targeting low operating costs, long reserve
life index and strong recycle ratios
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Questfire Energy: Our Arsenal
Experienced geological team –
average 30+ years of basin-wide
experience each
Committed: Founders
to maintain significant
ownership in step
with growth
What’s best for
shareholders: fiveyear horizon for
liquidity event
Track record of discoveries and
building/managing junior
companies
12
Questfire Energy: Risk Mitigation
• Decline in oil price ─ Conservative budget pricing ($90/bbl WTI and
$4.25 Cdn/GJ) and a goal of maintaining a low cost structure helps
offset commodity price risks
• Dry holes – Risk is mitigated by pursuing multiple play types in areas
we are experienced with, by the use of 3D seismic, by pursuing plays
with moderate drilling depths and costs and by targeting areas and
plays with multi-zone potential
• Cost escalation to drill/tie-in – Our in-house operations experience
and operatorship ensure we keep a handle on costs at all times
• Weather and equipment delays – Our focus areas generally have
good year round access with services based nearby
• Ability to satisfy flow-through commitments – Inventory and
prospects on existing asset base and experienced team in
managing past flow-through commitments
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Questfire Energy: Reasons to Invest
• New junior oil opportunity with an experienced
management team with track record of creating
shareholder value
• An opportunity to participate in the initial public financing
• In-house geology and operations
• Presence established in two exploration areas
• Significant exploration upside targeting light to
medium sweet oil
• An investment with leverage to increasing world oil
demand and oil price upside
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Questfire Energy Corporate Information
Board of Directors
• Richard Dahl
• John Ramescu
• Roger MacLeod
• Neil Dell
Bankers: National Bank of Canada
Auditors: Collins Barrow Calgary LLP
Reserve Evaluators: GLJ Petroleum Consultants
Lead Financial Advisor: Cormark Securities Inc.
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Forward-Looking Disclaimer
Certain information disclosed in this presentation, including management’s
assessment of Questfire Energy’s future plans and operations, contains
forward-looking statements that involve substantial known and unknown
risks and uncertainties, several of which are beyond the control of
Questfire Energy. These include the impact of economic and industry
conditions, changes in laws and regulations, volatility of oil and gas prices,
currency fluctuations, imprecision of reserve estimates, environmental
risks, competition from other producers, and ability to access capital from
external sources. The actual results and performance of Questfire could
differ materially from those expressed in, or implied by these forwardlooking statements and accordingly, no assurance can be given that any
events anticipated by the forward-looking statements will transpire
or occur.
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Contact
Richard Dahl, P.Eng.
President & CEO
Tel: 403-263-6688
Email: [email protected]