This Is

Velvet Energy

  • Velvet will be at the SAIT Career Fair today. We have full and part time career opportunities for Accounting and Ad… https://t.co/3dX9JvXMkJ 3 days ago
READ MORE TWEETS

  • Velvet will be at the SAIT Career Fair today. We have full and part time career
    opportunities for Accounting and Ad… https://t.co/3dX9JvXMkJ

    3 days ago

  • Secular trend of rising LNG exports from the USA continues, with waterborne exports in Aug17 up 70% YoY to 1.5 bcf/d.
    3 weeks ago

  • Velvet awarded six scholarships to high school students in Edson and Drayton Valley - proud supporters of local youth development!!
    1 month ago

  • New EIA report cites continued moderation in MoM Permian growth due to accelerating field declines and lower per-rig productivity.
    1 month ago

  • Velvet celebrated 20,000 boe/d milestone on June 17, 2017. Way to go team Velvet!!
    1 month ago

Engagement

Velvet is an organic growth company. We apply best-in-class geoscience and commercial skill to build large and contiguous tracts of land in, and adjacent to, oil-window source rocks. State-of-the-art prospecting, drilling, completions, and production methods allow us to generate top decile economic returns.

Velvet Energy Operations

Velvet’s operations are focused in the liquids rich window of the Deep Basin of Alberta. The Company produces 18,500 boe/d from the liquids rich Ellerslie formation which spans from West Pembina to Whitecourt. Velvet has over 15 years of Ellerslie and stack development inventory to continue to sustain or grow this high rate of return asset.

The Company recently commenced production in the black oil window of the Montney in the Gold Creek area of northwest Alberta. Velvet controls over 200 net sections of land at Gold Creek, where it produces 2,500 boe/d. The company also has a portfolio of early phase exploration lands, targeting oil and liquids rich prospects in its existing areas of operations.

Chronology of Growth

2017

• 1Q2017 was the most active quarter in Velvet’s history, with 16 gross / 11.6 net wells in Edson and Gold Creek.Our program successfully drilled four productive formations across our landbase

• Completed facilities installations and brought on first production at Gold Creek in June 2017

• Achieved 20,000 boe/d milestone at end of 2Q2017

• Velvet has drilled 96 gross horizontal wells in the Ellerslie since 2013

ve_chronology-growth-2017-a

2016

• Drew a total of $65 million equity in the first half

• Completed the 15-7 Montney oil well at Gold Creek

• Doubled Gold Creek acreage to 195 net sections

• Closed US$125 million Senior Secured Second Lien financing and drew $30 million of equity in 3Q2016

• Accelerated development at Edson to two rigs and commenced 3-well winter program at Gold Creek

ve_chronology-growth-2016-a

2015

• Closed a new $100 million equity line with our New York investors in 1Q2015

• Completed construction of a 54mmcf/d fit-for-purpose gas and NGL plant at Zeta Creek in our Edson core in 3Q2015

• Drilling activity in 2015 supported filling our 40% equity interest in the plant at start-up

ve_chronology-growth-2015-a

2014

• Acquired Lightstream assets in West Pembina for $72.2 million in 1Q2014

• Drew $105.6 million of equity to fund the acquisition and expanded Ellerslie delineation program

• Achieved 10,000 boe/d milestone in May 2014

ve_chronology-growth-2014-a

2013

• Drew $50 million of equity in 2Q2013 to fund a multi-zone evaluation of the Deep Basin stack

• Brought our first liquids-rich Ellerslie horizontal well onstream at 1,250 boe/d in West Pembina

ve_chronology-growth-2013-a

2012

• Acquired Vero Deep Basin gas assets for $200 million in 1Q2012

• Drew $110 million of equity to fund the acquisition

ve_chronology-growth-2012-a

2011

• Velvet closed a C$355million equity line with three New York-based investors in 2Q2011

• Drew $70 million of equity at closing

ve_chronology-growth-2011-a
2Q2011
1Q2012
4Q2012
2Q2013
4Q2013
1Q2014
3Q2014
4Q2014
1Q2015
3Q2015
4Q2015
Q12016
2Q2016
3Q2016
Q42016
Current

2Q2011

Closed C$355mm Equity Line at $10.00/sh. Drew $70MM of equity

1Q2012

Acquired Vero Deep Basin assets for $200.5MM. Drew $110MM of equity

4Q2012

Velvet Energy Ltd. Production Growth

2Q2013

Drew $50MM of equity. Concluded multi-zone evaluation of Deep Basin stack. Brought 16-14 Ellerslie hz onstream.

4Q2013

Velvet Energy Ltd. Production Growth

1Q2014

Acquired Lightstream Assets in Pembina for $72.2MM. Drew $75MM of equity.

3Q2014

Completed 1st Montney well and commenced Zeta Creek Plant design. Drew $30.6MM of equity.

4Q2014

Velvet Energy Ltd. Production Growth

1Q2015

Closed new $100MM equity line at $13.75/sh

3Q2015

Completed construction and filled equity interest in new 54mmcf/d fit-for-purpose gas and NGL plant at Zeta Creek. On time and on budget.

4Q2015

Velvet Energy Ltd. Production Growth

Q12016

Drew $15MM of equity.

2Q2016

Edson development accelerated with 2nd rig. Additional land acquisition opportunities in Gold Creek. Drew $50MM of equity.

3Q2016

Completed 15-7 oil well in the Montney at Gold Creek. Doubled Gold Creek landholdings to 195 net sections via asset & Crown land acquisitions.

Q42016

Closed US$125MM Senior Secured Second Lien Financing. Drew $30MM of equity.

Velvet Energy Ltd. Production Growth

Current

Velvet Energy Ltd. Production

{"dots":"false","arrows":"true","autoplay":"false","autoplayInterval":"3000","speed":"300","fade":"true","adaptiveheight":"true","slidestoshow":"3","first_slide":"0","nav_centermode":"true","rtl":"false"}

Investor Presentation

corporate-presentation-cover
Investor Contacts

Chris Theal, Chief Financial Officer

Careers

We’re always looking for talented people to join our team. At Velvet, we value our employees and recognize them as the driving force behind our success.

Contact

We are located in the downtown core in Calgary, but you can keep up with what is happening at Velvet by following us on LinkedIn or Twitter.

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text.