Peters & Co. Limited Lake Louise Conference Glen Schmidt President and CEO January 21, 2014
Laricina Advantages Third largest pure play holder of oil sands resource in Canada(1) Significant, High Quality In 500,000+ bbl/d net production potential, with medium term target of 42,500 bbl/d net Situ Asset Base 4.2 bn of…
Corporate Profile Capitalization (October 31, 2013) Basic 67.5 million shares Officer & director ownership(1) 5.3% of basic Fully diluted 72.6 million shares September 30, 2013 working capital 182.7 million Credit Facility 15…
Global Crude Oil Resources A Scarce Commodity Large portion of global crude oil reserves restricted (NOCs, PSAs, export restrictions) Canadian oil a focus among super-majors, national oil companies and North American independents…
Canadian Oil Competes on the World Energy Stage World oil pricing strong, heavy oil differentials narrowing Transportation bottlenecks easing Weaker natural gas and solvent pricing improve operating costs Why Canadian oil sands…
Significant Resource Base (1) (1) Concentrated operations at Germain and Saleski Assets outside of Germain and Saleski offer inventory for future growth Innovation to enhance value a core component of Laricinas business model…
Germain Commercial Demonstration Project (CDP) Began steaming in June, converted to Area: 44,161 acres, 100% w.i. production in September Wells responded as expected 2P Best Estimate Production Reserves Contingent Potential…
Operational Update for Germain CDP and 9 Status on Well-Pairs Current status: Six of the seven planned well-pairs started up Three with producers in basal water, four SL Slotted Liner WW Wire Wrap with producers in bitumen zone…
Germain CDP Operational Status Key events First steam on June 8 (bull heading steam into basal water producers 5 and 6 during OTSG commissioning) Converted well-pairs 5, 6 and 3 to SAGD Sept 2013 During ramp-up, experienced TCPL pipe…
Well-pair Above Basal Water (WP8) pre-conversion thermal conformance Thermal conformance Toe dominated growth between Producer to Injector Growth over the length of the well-pair January 21, 2014 WE PRODUCE 11
Germain Commercial Growth Manageable phased development plan allows for de-risking, management of corporate resources and activity levels, and applying what we have learned to future phases Staged growth helps to manage capital…
Saleski 2P Reserves Best Estimate Production April 2012 Contingent Resources Potential Formation (net mmbbl)(1) (net bnbbl)(1) (gross bbl/d)(1) Grosmont 76 1.6 282,500 Total 76 1.6 282,500 2C continues to perform and…
Operational Update for Saleski Pilot 1C sidetrack drilled successfully Expect first production in February 2014 following first block steaming of 1C and 2C Production affected by truncating C well production cycle in…
Pilot: 2C Cycle Performance Converted 1C well to Phase 1 expected injection early CDOR=350 bbl/d reservoir is behaving as a system, therefore steaming from 1C Cycle 1 155 affected 2C production Cycle 2 273 Cycle 3 186 Cycle 4*…
Pilot: 1D Cycle Performance Cycle 1 79 Cycle 2 177 Cycle 3 177 Cycle 4* 90 D zone reservoir quality (even with impaired wellbore) still yields high well deliverability and confirms conservative CDOR assumption for the D…
Pilot: 1C Sidetrack Well Result Sidetrack drilled off 1C to demonstrate repeated results in the Grosmont C Drilled into heated reservoir, well bore is 60% longer than 2C (700m) Drilled balanced, using foam, and completed open…
Future Development: Concept Start with cyclic convert to continuous: Cyclic to Continuous SAGD (C2C-SAGD) January 21, 2014 WE PRODUCE 18
Saleski Phase 1 Commercial Plan Grosmont initial projections: C-SAGD: Single well horizontal cyclic recovery CSOR 3 3.5; CDOR 300 500 bbl/d C only; 500 850 bbl/d combined C and D zones Bitumen target capacity, 10,700 bbl/d,…
Saleski Phase 1 Design and Update Efficient design to reduce footprint Well module Modules, concentrated central processing facility All regulatory approvals in place Site cleared, grubbed and stripped Site clearing December…
Truck and Rail Terminal Strategy Transition Long-term to Pipe A number of truck locations provide flexibility and price competition for Saleski and Germain delivery options High Increasing number of new rail Prairie projects…
Financial Flexibility Current Working Capital (Sept 30/13) 183 million, forecast year end working capital 130 - 140 million Laricina has limited spending commitments outside of completion of Germain CDP (22MM as at November 30,…
Effect of State-owned Enterprise (SOE) Guidelines Canadian companies require access to capital beyond Canadian providers Uncertainty on SOE guidelines has reduced capital inflow to oil sands sector, slowed project development…
Next 12-18 Months Expected Milestones Saleski Germain Refine C-SAGD optimization Convert well-pairs to production and begin Continue to test interaction between Grosmont C production ramp-up Q1 2014 and D zones at pilot and commercial…
We Produce Bitumen production at Germain expected Q1 2014 Advancing Saleski Phase 1, targeting commercial production from the Grosmont in 2016 Targeting regulatory approval for Germain Phase 2 late 2014 Ready for public…
Significant Definitions In this presentation the reserve and recoverable resource numbers, along with the net present values given, are as defined in the report of GLJ Petroleum Consultants Ltd. (GLJ) regarding certain of Laricinas…
Contact Us Laricina Energy Ltd. 800, 425 1st Street SW Calgary, Alberta T2P 3L8 403-750-0810 www.laricinaenergy.com laricinalaricinaenergy.com January 21, 2014 WE PRODUCE 28
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