Economics : Break-Even
Showing 3 Results
Canadas opportunity
Highest quality oil sands expected to be competitive on a global basis
Breakeven Brent price, US/bbl
125 3rd largest liquid reserves globally
100 Record of innovation, responsible development
mining
75
Historically conducive investment climate
50
in situ New technologies key to competitiveness
Canada-specific challenges must be addressed
25
0
Brazil North GOM West Canada North
Sea Africa oil sands America
tight oil
Source: IHS - assumes a 10% internal rate of return
Imperial 2019 12
Imperial Oil Limited
April 2019
Eagle Ford Provides Highest Rate of Return at
Current Commodity Prices
175%
Well costs reflect the most
recent results achieved. No
150%
heavy oil wells have been drilled
at Peace River and Lloydminster
125% since mid-2015.
Break-Even WTI (4)
Rate of Return
100%
75%
50% Eagle Ford - US5.2M/well
Peace River - C2.8M/well
25% Lloydminster - C750K/well
0%
45 50 55 60 65 70
WTI (US/bbl)
(1) Individual well economics are based on constant pricing and costs. Pricing assumptions: NYMEX gas = US2.75/mcf, WCS differential = US13.50/bbl, FX Rate (US/C) = 1.3.
(2) Type curve assumptions: Eagle Ford: 30-day IP rate 1,000 boe/d, EUR 800 mboe. Peace River multi-lateral well: 30-day IP rate 400 boe/d, EUR 300 mboe. Lloydminster: for a single
lined horizontal well: 30-day IP rate 70 boe/d, EUR 70 mboe. Baytex internal estimates.
(3) Internal rate of return (IRR) is a rate of return measure used to compare the profitability of an investment and represents the discount rate at which the net present value of costs equals the
net present value of the benefits. The higher a projects IRR, the more desirable the project.
(4) Break even price represents the constant oil price (WTI) at which the net present value of the average type well is zero using a 10% discount rate.
12
Baytex Energy Corp.
October 2016
LINDBERGH COMPETES WITH LOW COST PRODUCTION
GLOBAL RESOURCES PRODUCTION COST CURVE
120
Average break even
100
Oil
Extra heavy oil Sands
Ultra
Deepwater
80 Onshore rest of world
Deepwater Onshore 72
Cost (US per barrel)
Russia
Offshore shelf
62
60
53
55 57
Current price of WTI crude 54
49
40 Onshore Middle East
43 North American
29 Shale
Lindbergh
20 break even 46*
Source: Rystad Energy
Research and Analysis
*Lindbergh break even based
on 2014 costs
0
0 20 40 60 80 100
Total 2020 liquid production (million boe/d)
2016 ANNUAL MEETING 26
Pengrowth Energy Corp
August 2016