SLIDE 1
CORPORATE PRESENTATION June 2014
June 2014
Legal Disclaimer
2
The information contained in this presentation (“Presentation”) has been prepared by Xcite Energy Limited (“Xcite Energy” or “Company”) and is being delivered for informational purposes only. The information contained in this Presentation is provided as at the date hereof and is subject to change without notices and does not purport to contain all information about the Company. Certain statements contained in this Presentation constitute forward-looking information within the meaning
- f securities laws, including statements relating to the estimated reserves, resources and exploration activities
associated with the oil and gas properties in which the Company holds an interest. All information other than information of historical fact is forward-looking information. Forward-looking information may relate to the Company’s future outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “project”, “target”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts, and are intended to identify forward-looking information. No assurance can be given that this information will prove to be correct and such forward looking information included in this presentation should not be unduly relied on. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include risks associated with the oil and gas industry (including operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of reserves and resources estimates and projections in relation to production, costs and expenses, health, safety and environmental risks and offshore exploration risk), the risk of commodity price and foreign exchange rate fluctuations and the ability of the Company to secure financing. Additional information identifying risks and uncertainties are contained in the Company’s annual information form dated 26 October, 2010 and in the Management's Discussion and Analysis for Xcite Energy dated 26 March 2014, filed with the Canadian securities regulatory authorities and available at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations. Statements relating to “reserves” or “resources” are deemed to be forward-looking statements or information, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitable in the future. There are numerous uncertainties inherent in estimating quantities of proved reserves, including many factors beyond the control of the Company. The reserve and resources data included herein represents estimates only. In general, estimates of economically recoverable
- il reserves and the future net cash flows therefrom are based upon a number of variable factors and
assumptions, such as historical production from the properties, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary considerably from actual results. All such estimates are to some degree speculative and classifications of reserves are only attempts to define the degree of speculation involved. For those reasons, estimates of the economically recoverable oil reserves attributable to any particular group of properties and classification of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, prepared by different engineers or by the same engineers at different times, may vary substantially. The actual production, revenues, taxes and development and operating expenditures of the Company with respect to these reserves will vary from such estimates, and such variances could be material. The reserves, resources and future net revenue from the Company’s properties have been independently audited by TRACS International Consultancy Ltd (“TRACS”) in its Reserves Assessment Report (“RAR”) of the Company’s properties dated 25 February 2014 and effective 31 December 2013. Reference is made to the Company’s Statement of Reserves Data and Other Oil and Gas Information (Form 51-101F1) report dated 25 February 2014 for more information about the reserves and resources information prepared by TRACS for the Company. Consistent with the securities disclosure legislation and policies of Canada, forecast prices and costs are used in calculating reserve quantities included herein. Actual future net cash flows also will be affected by other factors such as actual production levels, supply and demand for oil and natural gas, curtailments or increases in consumption by oil and natural gas purchasers, changes in governmental regulation or taxation and the impact of inflation on costs. The estimated future net revenue contained herein does not necessarily represent the fair market value of the Company’s reserves and resources. There is no assurance that the forecast price and cost assumptions contained in the RAR will be attained and variances could be material. The recovery and reserves estimates on the Company’s properties described herein are estimates only. The actual reserves on the Company’s properties may be greater or less than those calculated. All recipients of this Presentation are encouraged to obtain separate and independent verification of information and opinions contained in this Presentation as part of their own due diligence. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Each party to whom this Presentation is delivered or made must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections
- r opinions contained in this Presentation necessarily involve significant elements of subjective judgement,
analysis and assumption and each recipient should satisfy itself in relation to such matters. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation
- f any offer to subscribe for or purchase any securities in the Company, nor shall it, or the fact of its delivery,
making or distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract or commitment whatsoever with respect to such securities. The delivery, making or distribution of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons who receive this Presentation should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. In particular, this Presentation has not been approved by an authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly, it is being communicated in the United Kingdom only to persons to whom this Presentation may be communicated without contravening the financial promotion prohibition in Section 21 of the FSMA. Those persons are described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Order”) and include persons who fall within the category of person set out in Articles 19(5) and 49(2) of the Order. In addition, in the United Kingdom, this Presentation is only being communicated to and directed at persons who are a “qualified investor” (within the meaning of Section 86(7) of the FSMA) acting as principal or in circumstances to which Section 86(2) of the FSMA applies. Any investment activity to which this Presentation relates in the United Kingdom is available to, and will only be engaged with such persons and this Presentation should not be acted or relied upon in the United Kingdom by persons of any other description. No offer of securities in the Company is being or will be made in the United Kingdom in circumstances which would require a prospectus to be approved by the UK Financial Services Authority (“FSA”) under Section 87A of the FSMA. By accepting this Presentation, the recipient represents and warrants that it is a person to whom this Presentation may be delivered or distributed without a violation of the laws of any relevant jurisdiction. This Presentation is not to be disclosed to any other person or used for any other purpose and any other person who receives this Presentation should not rely or act upon it. Nothing in this disclaimer shall limit or exclude any liability which by law or regulation cannot be limited or excluded. See the slide titled “Glossary” at end of Presentation for definitions of those defined terms in the Presentation.