Mount Rundle Financial
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OIL AND GAS PRODUCTION OPPORTUNITY
Investment: USD 300 million Funding Period: 1 year
DESCRIPTION: Investment of USD 300 million to acquire 50% of Canadian public oil and gas company to enable the company to acquire 16 million barrels of light oil reserves with substantial potential to significantly increase production and reserve capture.
LOCATION: Sponsor company is Canadian public company with controlling shareholder. Proposal is to acquire high value light oil reserves in Colombia which will result in equal diversification of company's operations between the two countries.
INVESTMENT HIGHLIGHTS
Proven International
Management Team: Executives have extensive experience in international oil and gas operations, including Middle East and Colombia.
Have increased base production in Canada by 40% in last six months.
Strong technical expertise.
Stable Oil and Gas
Regulatory Countries: Both Canada and Colombia have strong records of stable regulatory regimes.
Ready Market Access: Pipeline infrastructure exists to take all production to
international markets.
1. EBITDA ($millions) Year 1 Year 2
Base 55 66
Acquisition 49 99
Total 104 164
Investor Share of EBITDA: 52 82
2. EBITDA per share
Base 0.18 0.22
with Acquisition 0.17 0.27
Key Investment Parameters
1. Asset Exposure
Canada Colombia
Current: 100% 0%
Proposed: 50% 50%
2. Capitalization
($millions) Shares O/S
Debt Equity Total Capital (millions)
50 300 350 300
Acquisition Capital 0 300 300 300
Post Acquisition 50 600 650 600
3. Production Year 1 Year 2
(boe/day) Base 5000 6000
Acquisition 3000 6000 (light oil)
Total 8000 12000
4. Reserves Acquired (million barrels)
(unrisked) (risked) (prob. %)
Proved 10 10 100
+Probable (incremental) 10 5 50
+Possible (incremental) 10 1 10
Total "3P" reserves 30 16 53.33%
5. Acquisition Parameters
Price: $300 million
Per Barrel Investment
(million bbl) ($/bbl)
Risked Reserves Acquired: Proved 10.0 30.00
Total (risked) 16.0 18.75
Proved + Probable 20.0 15.00
Year 1 Year 2
Production Acquired (barrels/day) 3000 6000
Proforma: $ per barrel/day acquired 100000 50000
Reserve Life Index (years) 14.6 7.3
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