TSXV: TUS November 6, 2014

Transcription

1 TSXV: TUS November 6, 2014

2 Tuscany Overview Oil focussed. Horizontal development drilling. Core areas Evesham and Macklin, Sask. Balance sheet integrity. Ongoing exploration. TSXV: TUS November 6,

3 July, 2014 raised $ 3 MM. Operation Update July drilled a Rutland HZ Dina oil well. August drilled 2 Evesham HZ Dina oil wells. August- September drilled 2 Macklin HZ Dina oil wells. September drilled a Macklin disposal well which proved up 14 additional locations. TSXV: TUS November 6,

4 TSXV: TUS November 6, Production Revenue

5 Corporate Overview Shares outstanding: Fully diluted: Mgmt./Directors: Net debt: July 2014 Bank Line: Market Cap: Debt/Cashflow* : (*Q annualized) 46.2 million 52.0 million 37.1 % ownership $ 4.2 mm $ 8.5 mm $20.3 mm 0.6 years TSXV: TUS November 6,

6 Experienced Leadership MANAGEMENT BOARD OF DIRECTORS Robert Lamond Czar, Orbit Donald K. Clark Czar, Orbit Charles A. Teare Czar, Orbit Marshall Kis Czar, Orbit Jason Gallant Wayne Radcliffe CEO & Chairman COO &VP Ops. CFO & Executive VP VP Dev. Geology Controller Consulting Landman Robert Lamond (Chairman) Donald K. Clark Charles A. Teare Robert L. McPherson John R. Nelson Glen Phillips Roger Hume TSXV: TUS November 6,

7 Management Tuscany Management Team TSXV: TUS November 6,

8 Six Months Highlights $ Thousands, unless otherwise indicated TSXV: TUS November 6, Months Months 2013 Production (BOEd) Average oil price ($/BO) $78.69 $59.81 Revenues $8,430 $2,754 Revenues oil percentage 91.6% 93.1% Cash Flow from operations $4,295 $621 Capital additions $3,024 $1,248

9 Operating Results 5,000 TOTAL REVENUE ($000) CASH FLOW FROM OPERATIONS ($000) 4,000 3,000 2,800 2,400 2,000 2,000 1,600 1,200 1, Q1 Q2 Q3 Q4 Q1 Q Q1 Q2 Q3 Q4 Q1 Q TOTAL PRODUCTION (BOEd) OIL PRICE $/Bbl - Q1 Q2 Q3 Q4 Q1 Q2 - Q1 Q2 Q3 Q4 Q1 Q TSXV: TUS November 6,

10 Asset Overview Tuscany s oil assets are concentrated in the Evesham / Macklin corridor, an area with many heavy oil discoveries..saskatoon TSXV: TUS November 6,

11 Dina Oil Fairway Macklin Evesham Tuscany lands Dina production TSXV: TUS November 6,

12 Well Logs Showing Dina Oil Pay TSXV: TUS November 6,

13 By-passed Oil Pay - Dina Grd Level ohms 750 Metres DINA SAND OIL WATER 100 ohms high resistivity 1 ohm low resistivity TSXV: TUS November 6,

14 TSXV: TUS November 6, Dina Oil Play

15 Vertical and Horizontal Drilling Horizontal Well 91/2-21 Vertical Well 2-21 EVESHAM BASE MAP TSXV: TUS November 6,

16 Evesham Vertical Drilling Grd Level 750 Metres DINA SAND Perfs OIL WATER TSXV: TUS November 6,

17 Evesham Horizontal Drilling 2-21 Vertical Well Cum Oil = 2,753 bbls Grd Level 750 Metres DINA SAND OIL WATER TSXV: TUS November 6,

18 Evesham Horizontal Drilling 2-21 Vertical Well Cum Oil = 2,753 bbls 91/2-21 Horizontal Well Cum Oil = 38,603 bbls Grd Level 750 Metres DINA SAND OIL WATER TSXV: TUS November 6,

19 Key Development Factors Significant pay thickness. Sizeable structural high. Horizontal drilling. Slotted liner in pay zone. Water disposal facilities. Use natural gas. High oil prices. TSXV: TUS November 6,

20 Evesham Slotted Liner Run in the Horizontal Section TSXV: TUS November 6,

21 Evesham Evesham is a key growth asset, with 16 horizontal Dina heavy oil wells drilled to date. Tuscany 60% WI & operator. 13 producing horizontal Dina oil wells and 3 shut in awaiting pipeline. 3D seismic & geological control. Two wells drilled in August TSXV: TUS November 6,

22 Evesham Evesham W3 Battery TSXV: TUS November 6,

23 Evesham Dina Production 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 Original Vertical Wells Evesham Dina Production September 2014 Tuscany Horizontal Wells In Chronological Order n Cron ologi cal Orde SI rwaiting on water disposal pipeline 5,000 0 Well locations TSXV: TUS November 6,

24 Evesham Evesham Battery with Drilling Rig on 97/15-16 TSXV: TUS November 6,

25 Macklin 3D Seismic Tuscany 100 % WI. Eleven producing wells and four shut-in oil wells. 3D seismic and geological control. One new well drilled in August 2014 and one drilled in September disposal well delinated extention to the field. TSXV: TUS November 6,

26 Macklin Macklin 2-33 Battery. TSXV: TUS November 6,

27 Macklin Dina Production Macklin Dina Production September ,000 35,000 Tuscany Horizontal Wells In Chronological Order 30,000 25,000 20,000 Old Horizontal Wells * 15,000 10,000 5,000 Vertical 0 * New oil since Tuscany reactivation. Well locations TSXV: TUS November 6,

28 Macklin Macklin 93/ W3 Electric Driver for PC Pump. TSXV: TUS November 6,

29 Macklin North Base Cummings Coal Structure TSXV: TUS November 6,

30 Macklin North W3 Dina Log TSXV: TUS November 6,

31 TSXV: TUS November 6, Macklin North Dina Amplitude

32 Macklin North Dina Seismic Cross-section DINA SAND INTERVAL TSXV: TUS November 6,

33 Dina Estimated Well Reserves Oil Reserve Calculation 50 metre spacing Area = 10 acres Pay = 26 feet Porosity = 33 % Water Saturation = 20 % Oil Formation Volume Factor =.95 Fraction Original Oil In Place 505,000 bbls Recovery Factor = 15 % Recoverable Oil 75,000 bbls TSXV: TUS November 6,

34 TOTAL DEVELOPMENT POTENTIAL Potential horizontal locations LOW CASE HIGH CASE EVESHAM (Dina) EVESHAM (Cummings) 2 4 MACKLIN (Dina) MACKLIN (Sparky) MORGAN (Lloydminster) PROVOST ( 2 Properties) 2 6 SENLAC (Bird Bear) 2 4 WINTER (Dina) TOTAL * Tuscany s actual drilling plans are dependent upon a number of factors and may change from time to time as the factors change see forward looking statements. TSXV: TUS November 6,

35 Q Drilling Program HZ WELLS STATUS MACKLIN (Dina) 2 Locations WINTER 1 Location MORGAN 1 Location Macklin (Sparky) 1 Location TOTAL 5 TSXV: TUS November 6,

36 December 31, 2013 Reserves Report Oil & Natural Combined NGL s Gas Gas 6:1 (mbbls) (mmcf) (mboe) *NPV10: Before tax net present value at 10% discount rate, using McDaniel forecast price deck at December 31, NPV10* ($mm) Developed Producing 522 1, $ 12.6 Non-producing $ 3.5 Undeveloped $ 6.5 Total Proved 1,103 1,334 1,325 $ 22.6 Probable $ 16.6 TOTAL Proved + Probable 1,989 1,590 2,254 $39.2 TSXV: TUS November 6,

37 Why Invest In Tuscany? Undervalued. Low debt leverage. Oil focussed. Active development program with multiple projects. Defined exit strategy TSXV: TUS November 6,

38 Additional Prospects Macklin: Sparky Winter: Dina Morgan : Lloydminster Provost: Dina To expedite development Tuscany may be seeking a partner for some of these projects. TSXV: TUS November 6,

39 Macklin Sparky Play Sparky Pool Outline TSXV: TUS November 6,

40 Sparky Drilling Locations Tuscany Colony Gas Well PROSPECT DESCRIPTION 1,400 acres 100% WI IP: bopd Sparky Show 100 Mstb/well recoverable (primary) 10 MMstb OOIP/Section 19 API Oil 32 HZ Sparky Locations (200m spacing) Future Waterflood Candidate TSXV: TUS November 6,

41 Sparky Logs 3-14 on prod; Feb, Cum: 35.6 MSTB 2-22 on prod; June, Cum: 36.2 MSTB TSXV: TUS November 6,

42 Surge Provost W4 CUM OIL PROD: 44.5 MSTB 173 bopd 77 bopd TSXV: TUS November 6,

43 Sparky and Dina Pool Outlines TSXV: TUS November 6,

44 Winter 3D Seismic Type Log W3 TSXV: TUS November 6,

45 TSXV: TUS November 6, Winter Type Log

46 Morgan Lloydminster Pay (m) Type Log W4 Cum Oil 36.7 bbls Type Log W4 TSXV: TUS November 6,

47 Morgan Type Logs Type Log Cum Oil 36.7 bbls TSXV: TUS November 6,

48 Forward Looking Statements This presentation contains a summary of Management s assessment of historical, financial and operating results and should be read in conjunction with the annual report and consolidated financial statements of the Company, other information filed in regards to each company filed on SEDAR, and interim reports and other materials released by each Company from time to time. Certain of the statements contained herein including, without limitation, financial and business prospects and financial outlook, reserve and production estimates, drilling and re-completion plans, timing of drilling, completion and tie-in of wells and capital expenditures and the timing thereof may be forward-looking statements. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue" and similar expressions may be used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to Management. Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and the risk factors outlined under "Risk Factors" in each Company s Annual Information Form and elsewhere herein. The recovery and reserve estimates provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Companies operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no obligation to update or review them to reflect new events or circumstances except as required by applicable securities laws. Basis of Presentation The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in this report are derived by converting gas to oil in the ratio of six Mcf of gas to one Bbl of oil. TSXV: TUS November 6,

49 For further information, please visit: TSXV: TUS Suite # th Avenue S.W. Calgary, AB T2P 2Y5 Tel: (403) Fax: (403)