March 31, 2015 Investor Presentation www.andersonenergy.ca
3 Why Invest in Anderson Focused Development on Cardium Horizontal Wells in Central Alberta Focus is on growing light oil and condensate production - objective is to have production weighting exceed 50% oil, condensate & NGL…
4 Why Invest in Anderson 35 Million Non-Dilutive Financing Closed January 23, 2015 Improves 2014 year end liquidity by 34.5 million, net of 2015 expenses of 0.5 million. Continues rationalization of shallow gas assets. Transaction…
5 Why Invest in Anderson Results for Three Months Ended December 31, 2014 Funds from Operations 5.9 million Production 3,396 BOED (35% oil, condensate & NGL) Operating Netback: Corporate 27.53/BOE, Cardium 32.79/BOE Operating…
6 Why Invest in Anderson 2014 Capital Efficiency 28,600/BOED December 31, 2014 GLJ Reserves Report 2014 F&DA (additions & net acquisitions net of change to future development capital): Total Proved 37.26/BOE, Total P&P…
7 Why Invest in Anderson 2014/2015 Winter Program Average IP 30 for the seven Cardium wells with more than 30 days of production data has been 397 BOED (82% oil, condensate & NGL). Average oil, condensate & NGL IP 30 for 2014/2015…
8 Why Invest in Anderson 2013/2014 Winter Drilling Program Eight Cardium horizontal wells drilled in late 2013 & first half of 2014, with an average IP 30 of 511 BOED (53% oil, condensate & NGL) New Cardium Liquids-Rich Gas…
9 Why Invest in Anderson Cardium Well Performance Average IP 30 for 15 Cardium well completions in the Willesden Green area since December 2012 has been 458 BOED (65% oil, condensate & NGL). Recent industry publications indicate…
10 Why Invest in Anderson Cost Saving Measures: 2015 cash G&A costs are estimated to be reduced to 7 Million per year down from 8.3 million in 2014. 2015 Operating expense per boe is estimated to be 10.30/boe down from 12.43/BOE…
11 Why Invest in Anderson Cardium Production: Jan 2014 to Jan 2015 Cardium growth rate BOED 100%, oil 55%. 2014 Cardium production 1,927 BOED, Q4 2,260 BOED Investor Presentation March 2015
12 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes 2014 364,500 shares/d Management & Directors own Shares Outstanding 172.5 million basic approximately: 11% of the common…
13 2015 Operating Cost Reduction 2015 Operating Cost Reduction Initiatives: Most of the initiatives were implemented in March/April and would benefit Q2-Q4 2015. 14-18% reduction in contract operating rates. Buyout of rental…
14 Horizontal Well Technology Update In the recently completed drilling programs, the Company optimized the trajectory of the horizontal well through the Cardium formation to obtain better well performance. The Company continues…
15 Shallow Gas Optimization Update On January 23, 2015, the Company sold approximately 500 BOED of predominantly shallow gas from 78 wellbores. The Company is marketing the sale of its remaining shallow gas properties in Q2 2015.…
16 GLJ Reserves Report Effective December 31, 2014 GLJ estimated the Companys reserves to be: 3.7 MMBOE PDP, 5.3 MMBOE TP and 9.2 MMBOE P&P. The oil, condensate & NGL contribution was 38%, 40% and 44% of the totals respectively.…
17 GLJ Reserves Report Effective December 31, 2014 GLJ recognizes 30% of Companys drilling inventory as P&P reserves. Total Company NPV 10 P&P was 96.1 million, which is 4% less than last year. The average price forecast reduction…
18 Q4 2014 Results Funds from operations of 5.9 million in Q4 2014 and 19.2 million for 2014, compared to negative 0.3 million in Q4 2013 and 11.3 million in 2013. Production of 3,396 BOED (35% oil, condensate & NGL) in Q4 2014,…
19 Q4 2014 Results Operating expenses of 10.03/BOE in Q4 and 12.43/BOE in 2014, 30% less than Q4 2013 and 6% less than 2013. Royalties of 7.3% in Q4 and 8.4% in 2014. Pro forma reorganization transaction the Company would have…
20 Managing Our Risk Hedging Philosophy Hedge produced oil and natural gas volumes to protect capital program and reduce cash flow volatility. Continue to evaluate the merits of further price management strategies as market…
21 Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium horizontal drilling Guidance First Half 2015 2,200-2,400 production (46 % oil, condensate & ALBERTA NGL), includes impact of 500…
22 Operations Overview Cardium horizontal drilling focused on the halo or T50 periphery of major Cardium fields The best wells are positioned in good quality rock T45 Away from potential pressure depletion and old waterfloods…
23 Operations Overview Evolution of Cardium Drilling & Completion Practices Impact on Costs and Productivity 7,500 500 Slickwater Fracs (22 wells) Feb-2012 to present 6,750 LEF Fracs (20 wells) 450 Aug-2011 to Jan-2012 456 BOED,…
24 Operations Overview Slickwater Frac Stimulation Carrier fluid is like soapy water with no gellant and hence the term slickwater. Both broad industry and Anderson specific data indicates slickwater fracs result in significant…
25 Operations Overview Light Oil Horizontal Locations March, 2015 Gross Net (1) Area Locations Locations Willesden Green Cardium 75 56.0 West Pembina/Buck Lake Cardium 26 7.8 Glauc/Belly River 8 7.3 TOTAL DRILLABLE 109…
26 Summary 2014 F&DA costs of 37.26/BOE Total Proved and 21.47/BOE Total P&P. Recycle Ratio of 2 times using Cardium net operating income of 42.30/BOE. Replaced 202% of production with new P&P reserves. Replaced 321% of Cardium…
27 Summary Average IP 30 for first seven Cardium wells in 2014/2015 program is 397 BOED (82% oil, condensate & NGL). Long-Reach Cardium well IP 30 of 651 BOED (92% oil, condensate & NGL). An industry publication indicated this well…
28 Summary Cost saving measures include: 2015 cash G&A costs are estimated to be reduced to 7 Million per year down from 8.3 million in 2014. 2015 Operating expense per boe is estimated to be 10.30/boe down from 12.43/BOE in 2014.…
www.andersonenergy.ca Head Office Contact Information 1000, 555 4th Avenue SW Brian H. Dau Calgary, Alberta T2P 3E7 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
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