This Is

Velvet Energy

  • Velvet Energy has updated its corporate presentation. You can find the link at the bottom of our homepage at https://t.co/A1fMyQT09F. 6 months ago
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  • We hosted a group of shareholders, directors, bankers and analysts for a tour of our Montney light oil operations i… https://t.co/3deyHXzMxq
    1 month ago

  • Shoutout to our CFO Chris Theal who proved work-life balance is possible by placing 1st in his age category in the… https://t.co/UNMSt9ZIZu
    2 months ago

  • Velvet Energy is proud to have Lynn Gregory be awarded with CAPLA’s Honorary Lifetime Member Award for 2019. Lynn i… https://t.co/O0hdstwgY7
    2 months ago

  • Velvet held its 4th Annual Spring Breakup Bowling Tournament to have a little fun and celebrate our winter drilling… https://t.co/ZfVBk0wzjJ
    2 months ago

  • Velvet Energy has updated its corporate presentation. You can find the link at the bottom of our homepage at https://t.co/A1fMyQT09F.
    6 months 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 light oil window of the Montney in Alberta and northeast B.C. and in the liquids rich window of the Deep Basin of Alberta. The Company produces 14,000 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 has drilled 26 gross/net wells in the black oil window of the Montney in the Karr/Gold Creek area of northwest Alberta. With the acquisition of Iron Bridge Resources Inc. in 2018, Velvet now controls 230 net sections of land at Karr/Gold Creek, where it produces 17,000 boe/d.  The company also has a portfolio of early phase exploration lands, targeting Montney light oil at Pouce and Flatrock, B.C. Two wells were drilled at Pouce in 2018, with one well tied in during September last year.

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

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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

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Investor Presentation

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.

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