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Calgary’s Best Walks by @LoriFitfrog
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Pa… https://t.co/7U88Sz1m0a
2 months ago -
After a year filled with challenges and uncertainty, we want to recognize the incredible commitment of every Velvet… https://t.co/fbGWM5Skom
2 months ago -
Velvet is proud to be partnered with @kathairos_sol to eliminate our methane emissions from routine site venting in… https://t.co/Jpx0v8tYvt
5 months ago -
(2/2) Since 2017, Velvet invested in water infrastructure to reduce our reliance on freshwater, reaching 100% water… https://t.co/nwRYNNtRCX
9 months ago -
(1/2) Velvet Energy wins the 2020 Energy Excellence Award for Project Execution: Oil & Gas for the Gold Creek Water Recycling Project.
9 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
2020
• Brought onstream 3 wells targeting high return gas opportunities at Edson to take advantage of seasonal high gas pricing in the Deep basin
• Drilled and completed a two well development pad program at Pouce Coupe, with both wells achieving over 1,000 bbl/d of light oil production exceeding type curve expectations
• Realized a C$73.4 million gain in oil hedging contracts to date, protecting 2020 year cashflows amidst worldwide selloff in crude oil prices.
2019
• Divested non-core assets in the Pembina area and reallocated a portion of proceeds to replace sold production with light oil weighted Montney volumes
• Increased corporate liquids weighting to exit 2019 at 46% with ongoing Montney light oil development
• Achieved cumulative hedging gains of C$98.3 million as at 2019 year end, including $23.8 million in realized gains for 2019
2018
• Successfully completed unsolicited takeover of Iron Bridge Resources, adding 49,600 net undeveloped acres of Montney land at Gold Creek
• The Acquisition was fully funded with equity from existing shareholders and the monetization of midstream facilities acquired in the transaction
• Expanded Montney light oil inventory with successful horizontal wells at Karr and Pouce Coupe
2017
• Pivotal shift in capital allocation to our Montney light oil project at Gold Creek – Completed facilities installations and brought on first production at Gold Creek in June 2017
• Achieved the 20,000 BOE/d milestone in mid-2017 – All from organic growth
• Added US$50 Million of term debt to our existing second lien notes
• CPPIB commits C$150 million equity investment in December 2017
2016
• Drew $65 million of equity in the first half to support Montney expansion
• Completed the 15-7 Montney oil well at Gold Creek
• Doubled Gold Creek Montney acreage to 124,800 net acres
• Closed US$125 million senior secured second lien financing and drew C$30 million of equity in the third quarter of 2016
• Accelerated development at Edson to two rigs and commenced a winter 3-well drilling program at Gold Creek
4Q2012
Velvet Energy Ltd. Production Growth
4Q2013
Velvet Energy Ltd. Production Growth
4Q2014
Velvet Energy Ltd. Production Growth
4Q2015
Velvet Energy Ltd. Production Growth
Q42016
Closed US$125MM Senior Secured Second Lien Financing. Drew $30MM of equity.
Velvet Energy Ltd. Production Growth
Current
Velvet Energy Ltd. Production
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.