catalysts for growth · 4 point loma growth catalysts plx:tsxv inception 135 boe/d september 2016...

September 2017

Catalysts for GrowthAccretive Steps

PLX:TSXV1

2

Point LomaSnapshot

• Funded growth steps in second half of 2017

o September drilling 2 Hz wells

o Activation of acquired development well

o Re-activation of Paddle River volumes

• Further re-activations in Q4 and Q1 continue low risk growth

• Increased liquids weighting with deep cut facilities

• Key capital partners can reduce cost of capital

• Creating shareholder value

PLX:TSXV

3

Point LomaStrategy

PLX:TSXV

• Point Loma has captured a significant

position on the highly prospective

multi-zone Mannville and

Mississippian fairway of West Central

Alberta.

• Modest drill depth and technological

advancements leads to strong

economics with low costs per well

• Over 160,000 net acres with

significant shallow to medium depth

horizontal drilling inventory (> 250 net

drilling opportunities)

• Joint Venture and new equity

unlocks immediate growth

• Build value for successful exit strategy

and shareholder return

4

Point LomaGrowth Catalysts

PLX:TSXV

Inception

135 boe/d

September 2016

400 boe/d

Re-activate Paddle River

Ostracod

March 2017

830 boe/d

Acquire Judy Creek Assets

Q3 2017

Drill 2 wells

Purchase key wells

Optimize Facilities

Q3/Q4 2017

Re-activate Leaman area wells

Drill follow up wells

Q1 2018

Re-activate Thornbury wells

Drill follow up wells

$8 M

Evenergy

Salt Bush

5

Basic Shares Outstanding(2) 42,078,907

Fully Diluted Shares Outstanding 46,028,907

Insider Ownership (Basic / Fully Diluted) 44% / 47%

Management Ownership (Basic / Fully Diluted) 7.0% / 11.0%

Market Capitalization (Basic)(1) $13,465,000

Convertible Debenture – Matures on June 28, 2021(2) $2,500,000

Working Capital $5,400,000

Management Average Cost – per share $0.55-0.59

Notes:

(1) Based on Aug 28 – Sept 1, 2017 weighted average closing price of approximately $0.32 per share

(2) The convertible debenture 3.0% interest with conversion price of $0.50 per share

TSXV – PLX

Share Price (Aug. 28-Sept. 1, 2017) $0.32

Capital StructureCurrent Balance sheet

2017 Current production

Oil/Gas weighting

600 boe/d

25%/75%

6

Lower Mannville DevelopmentQ3 drill one horizontal well, place acquired well on production

1-3

2

8-3

1

LOWER MANNVILLE SS NET PAY MAP

Cutoff: 6% SSØ

• Purchased 2 wells in

Sec. 4-56-7W5

• 12-4-56-7W5

scheduled to start

production in

September

• 2-4 is potential re-

entry candidate

• Acquisition adds 2

potential drilling

opportunities

• Future cost

reductions with

central facilities

PUD location

Drilling opportunity

Q3 Drilling

location

7

Lower Mannville FacilitiesOptimization plan

PLX:TSXV

Facility plan

• Construct central tankage, treating for Paddle

River lower Mannville oil development

• Add flowline capacity

• Utilize existing well as water injector

• Save on emulsion/water trucking

• Support reservoir pressure

$1.2M Capital

Savings $7.20/bbl

• Total

• $1.2M Annual Savings

Results

• With additional development of the

area significant savings result

• 2 new wells in Q3 see benefits

• Future drilling realizes significant

savings

Paddle RiverRe-activation plans and increased liquids recovery

• September 2017 -Re-activation of

approximately 1.2-1.5

mmcfd (1.0-1.2 net)

additional area gas

• September 2017 -Flow paddle river solution

gas, new drill and newly

acquired 12-4 well to

Tidewater plant

• Ultimate re-activations

would add a further 1.0 –

1.5 mmcfd

• Increased liquids

recovery from deep cut

facility

8

Point Loma Land

9

ThorsbyTie-in Glauconite and drill Sparky

PLX:TSXV

Successful

Sparky wells -

Blackspur

9-18 HZ Location and

tie-in

• Tie-in 103/11-18

Glauconite well

• Drill Hz Sparky well

• Opportunity to develop

in two zones with

multi-well potential

• Emerging play has

good growth potential

Oil Gas

6 Regional Horizontal Wells – Oil and Gas Production

WhitecourtBuilding drilling and recompletion inventory

• Current production of

1,600 mcfd net, 45%

WI in gas processing

facility at Judy Creek

• Ownership reduces

incremental costs

• Successful industry

HZ offset sets up

potential future drilling.

IP 4 mmcfd, Cum 2.5

BCF

• Multiple re-completion

candidates and

potential drilling

opportunities

10

Point Loma Land

ThornburyQ1 2018 re-activation opportunities allow for cost growth

• Current production of

500 mcfd net, 80% WI

in gas compression

facility

• Q1 2018 plans to re-

activate approximately

2.0 mmcfd (1.6 net)

• Will require 3 minor

pipeline connections

planned for winter

2017/18 to re-activate

additional volumes,

$360k net

• Approximately 40,000

net acres

Jumper #1

Prod. Add :

0.75 -1.0

MMCFD

Jumper #2

Prod Add:

1.25 – 1.5

MMCFD

Algar 12-28

Compressor

11

12

Why Invest in Point Loma?Catalysts for Growth

• Capital in place to unlock value

• September drilling 2 wells to develop production

• Addition of new well via acquisition adds production

• Re-activations in Paddle River increase volumes and

liquids

• Further re-activations (Paddle, Thornbury) continue

built in growth steps

• Experienced team aligned with shareholders

PLX:TSXV

13

Disclaimers

Forward Looking StatementsCertain information regarding Point Loma Resources Ltd. (the “Corporation” or “PLX”) inthis

presentation including without limitation management's assessment of future plans and operations,the

benefits to be derived from the proposed transactions, future acquisitions, timing of drilling and tie-in of

wells, cash flow projections, pricing assumptions, productive capacity of the new wells and productive

capacity from different wells, expected production rates, drilling success rates, expected operating

rates, expected LLR ratings, dates of commencement of production, may constitute forward looking

statements under applicable securities laws and necessarily involve risks including, without limitation,

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, unexpected decline rates in wells, wells not performing as expected, delays

resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital

from internal and external sources. 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 exhaustive. Additional information on these and other factors that could effect the Corporation's

operations and financial results will be included in financial reports. Furthermore, the forward looking

statements contained in this presentation are made as at the date of this presentation and the

Corporation does not undertake any obligation to update publicly or to revise any of the included

forward looking statements, whether as a result of new information, future events or otherwise, except

as may be required by applicable securities laws.

PLX:TSXV

14

Disclaimers

Oil and Gas DisclosuresBarrel of oil equivalents or BOEs 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. Given that the value ratio

based on the current price of crude oil as compared to natural gas is significantly different than the

energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as

an indication of value.

References in this document to production test rates, initial test production rates, and other short-term

production rates are useful in confirming the presence of hydrocarbons, however such rates are not

determinative of the rates at which such wells will commence production and decline thereafter and

are not indicative of long term performance or of ultimate recovery. Additionally, such rates may also

include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are

cautioned not to place reliance on such rates in calculating the aggregate production for Point Loma. A

pressure transient analysis or well-test interpretation has not been carried out in respect of all wells.

Accordingly, the Corporation cautions that the test results should be considered to be preliminary.

This presentation discloses drilling locations in two categories: (i) proved locations; and (ii)potential

drilling opportunities. Proved locations, which are sometimes collectively referred to as “booked

locations”, are derived from the Corporation’s most recent independent reserves evaluation as of

December 31, 2016 and account for drilling locations that have associated proven reserves, as

applicable.

PLX:TSXV

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Disclaimers

Potential drilling opportunities are internal estimates based on the Corporation’s prospective acreage

and an assumption as to the number of wells that can be drilled per section based on industry practice

and internal review. Potential drilling opportunities do not have attributed reserves or resources. The

Corporation has, based on the December 31, 2016 reserve report and management's current internal

estimate, 3.4 net proved locations and 70 identified potential drilling opportunities. Potential drilling

opportunities have specifically been identified by Management as an estimation of our multi-year

experience in drilling activities based on evaluation of applicable geologic, seismic, engineering,

production and reserves data on prospective acreage and geologic formations. The drilling locations

on which we actually drill wells will ultimately depend upon the availability of capital, regulatory

approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results and other

factors. While certain of the potential drilling opportunities have been de-risked by drilling of wells by

the Corporation or other operators in close proximity to such potential drilling opportunities, the

majority of other potential drilling opportunities are farther away from existing wells where

management has less information about the characteristics of the reservoir and therefore there ismore

uncertainty whether wells will be drilled in such locations and, if drilled, there is more uncertainty that

such wells will result in additional oil and gas reserves, resources orproduction.

Type wells indicated herein are internal estimates based on common industry practices of reviewing

analogous wells in reasonable proximity to the drilling opportunities and defining a ‘type well’ by

averaging production of the analogous wells for the first 24 months, or longer, as available from public

sources. These type wells have been prepared by a qualified reserves evaluator or auditor and do not

represent ‘reserves’ as defined by NI 51-101. Well economics associated with these estimates are

based on certain assumptions made by management based on current pricing, costs, royalties and are

not intended to provide an estimate of future performance of wells or an estimate of reserves.

PLX:TSXV

Contact Information

16

Head Office2000, 350 – 7 Avenue SW

Calgary, Alberta T2P 3N9

403-705-5051

Contacts Terry Meek,

President, CEO

403-705-5051, e444

[email protected]

Kevin Angus,

Executive Vice President Business Development

403-705-5051, e440

[email protected]

Randall Boyd,

Vice President Finance, Chief Financial Officer

403-705-5051, e443

[email protected]

Corporate Services Legal Counsel

McCarthy Tétrault

Reserve Engineers

McDaniel &Associates

Consultants Ltd.

Auditors

KPMG LLP

Transfer Agent

Computershare Investor

Services

mailto:[email protected]



17

An Experienced & Energized TeamWith a Track Record of Unlocking Value in West-Central Alberta

Terry Meek, P.Eng., President, CEO

• Mr. Meek has 30+ years of experience in the conventional and unconventional oil & gas industry. Former founder, Executive VP and COO of the

coal bed methane focused company Ember Resources Inc. (2005-2011). Former founder, VP Engineering and COO of Thunder Energy (1995-

2005), growing market capital to over $600 million from inception.

Kevin Angus, P.Geoph., ICD.D, Executive Vice President Business Development

• Mr. Angus has 30+ years of geotechnical experience and is also a director of Painted Pony Petroleum. Former co-founder of three public oil and

gas companies, Mustang Resources Inc., Pegasus Oil and Gas Inc. and Surge Energy Inc. Mr. Angus has also held positions with Husky Energy

Inc., Ulster Petroleum Ltd. and Archean Energy Ltd.

Randall Boyd, CPA, CGA, Vice President Finance and CFO

• Mr. Boyd is an experienced public CFO with 30+ years in the oil and gas industry. His experience includes positions as CFO at Deventa Energy

Inc., Masters Energy Inc. and other listed companies. Prior experience includes Flagstone Energy Inc., Norwich Resources and Archean Energy.

Dan Boyko, P. Eng., Vice President, Engineering

• Mr. Boyko has 30+ years of experience in the petroleum industry. Former VP Business Development for Open Range Energy Corp. and has

acted as a Petroleum Engineering consultant for multiple companies including NAL Resources.

Brad Johnston , B.Comm – Vice President Land

• Mr. Johnston has 18 years of experience in the oil and gas industry, both internationally and in Western Canada, Mr. Johnston previously held

positions at Galleon Energy Inc., Nexen Energy Inc. and was VP Land for Carnaby Energy Ltd.

Gordon Cameron – Corporate Secretary

• Mr. Cameron is a partner at McCarthy Tétrault LLP. He has been a practicing corporate lawyer for over 9 years and specializes in the areas of

corporate finance, capital markets, corporate governance and mergers and acquisitions.

Travis Brookson P. Geo., Exploration Manager

• Mr. Brookson has 21 years of geological experience in the Western Canadian Sedimentary Basin, mostly focused on conventional stacked plays

in central Alberta and the Peace River Arch. Mr. Brookson’s prior companies include Taqa North, Ravenwood Energy, Spartan Energy.

Jamie Chisholm, P. Eng., Operations Manager

• Mr. Chisholm has 19 years of experience in the Oil and Gas sector. Mr. Chisholm has worked various positions starting at the field level and

progressing into more senior positions with companies such as Canadian Natural Resources, Birchcliff Energy and Westfire Energy.

18

Strong GovernanceExperienced Board of Directors, Four Independent

Steve Dabner, P. Geol., - Chairman

• Mr. Dabner previously Vice President Exploration and New Ventures at Madalena. Mr. Dabner has 33 years of industry experience, including

founding roles as President and Chief Executive Officer of Online Energy Inc., Trimox Energy Inc. and Moxie Exploration Ltd.

Doug Dafoe, CA

• Mr. Dafoe is currently the Chief Executive Officer and President of Ember Resources Inc. and Chairman of the Board of Xtreme Drilling and Coil

Services Corp. Mr. Dafoe has 35 years industry experience with public and private oil and gas companies in Western Canada, including acting

as Chief Executive Officer and President to Sword Energy Inc.

Jay Reid, B.Comm, LLB

• Mr. Reid is currently a partner at Burnet Duckworth and Palmer LLP and has a practice focused on securities laws in the area of capital markets,

mergers and acquisitions and corporate governance. Mr. Reid has over 26 years of industry experience. During the course of his career Mr. Reid

has acted as a Director or Officer of 19 public companies.

Don Brown

• Mr. Brown is an independent businessman with over 30 years of industry experience and formerly the President and Chief Executive Officer of

Elkwater Resources Ltd. until July 2014.

Kevin Baker, Q.C.

• Mr. Baker has served as a Director of Calfrac Well Services Ltd. since 2010. Mr. Baker has also served as the President and Managing Director

of Baycor Capital Inc., a private merchant banker, since January 1990 and the CEO of ConleyMax Inc., an oilfield services company since

September2011.

Terry Meek – President, CEO

• Bio in Management Section

Jianjun Cui, PhD Geoph.

• Mr. Cui has more than 20 years of senior management experience including Senior Vice President of a Hong Kong listed company, Vice President

of Mergers and Acquisitions for Sinochem Petroleum, Country Manager to Colombia and General Manager of Asset Management for Sinochem

Petroleum.

PLX:TSXV

19

Multiple Zone Oil and Liquids Rich Gas FairwayUpper Mannville Inventory

Blackspur

Bonavista

Tourmaline

Cenovus

Cardinal

Vermillion

Petrus

Manitok

Industry

Success

Significant Horizontal Opportunity Base

Zone Bypass drilling

Opportunities (1)

Follow-up

Opportunities(1)

Glauconite 17 104

Other Upper

Mannville

15 90

Assumptions

Drill - $900k

Complete - $600k

Tie-in - $400k

15 stage frac

(1)See Disclaimers for additional definitions of locations and opportunities. Follow up

opportunities are wells on industry standard spacing that would result from a successful

drilling opportunity.

Month Month

18 Regional Horizontal Wells – Oil and Gas Production By Well

• Over 5,500 well penetrations in

the area have identified our

bypass opportunities

20

Multiple Zone Oil and Liquids Rich Gas FairwayLower Mannville Inventory

Industry

Success








Assumptions

Drill - $900k

Complete - $600k

Tie-in - $400k

15 stage frac

Blackspur

Bonavista

Tourmaline

Cenovus

Cardinal

Vermillion

Petrus

Manitok


Opportunities (1)

Follow up

Opportunities(1)

Ostracod 19 121

Ellerslie 5 30

Month Month


21

Multiple Zone Oil and Liquids Rich Gas FairwayJurassic Inventory

Industry

Success



Opportunities (1)

Follow-up

Opportunities(1)

Rock Creek 3 18

Nordegg 8 58




Sinopec

Surge

New Star

LongRun

Assumptions

Drill - $900k

Complete - $400k

Tie-in - $400k





Month Month

catalysts for growth · 4 point loma growth catalysts plx:tsxv inception 135 boe/d september 2016...

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