PEOPLE ASSETS CAPITAL PetroBakken Energy Ltd. May 2012 3
What We Do Innovate 19% Reserve Growth (2011 per share) VALUE CREATION 87% Liquids Weighting Repeat Grow 10+ years Drilling Inventory Our Model The Results PetroBakken Energy Ltd. May 2012 4
Growing a Resource Play Company We are long-term focused. Resource Play Resource Play Production Cardium Bakken Conventional Plays Time Repeatable organic growth combined with an attractive dividend yield Large…
Assets: Opportunity Portfolio Our strategy is focused with multi-year growth opportunities. Business Unit Current Location Inventory Bakken (Southeast SK) 700 (light oil) Cardium 650 (light oil) Conventional 350 (light oil)…
Assets: Reserves Summary 2011 Proved + Probable Reserves Mix Results in 2011: (202 MMboe) 2P reserves of 202 MMboe 15% 5% Replaced 315% of production & increased reserves by 19% (19% per basic share) Finding & development costs and…
Capital: Financial Highlights Our financial strength demonstrates strong execution. Funds flow from operations 2011: 710 million (3.79/basic share, +8% over 2010) Q1 2012: 185 million (0.99/basic share, +8% over 2011) 0.96/share…
Capital: Financial Capacity to Grow Our financial flexibility provides us optionality. Debt Capital Composition US300 million Convertible Debenture (3.125% interest) 1 Senior Unsecured Notes US900 million (8.625% interest)…
Capital: Financial Strength We target a maximum debt* to funds flow of 2x. Debt * to 1.9 x 1.3 x 1.7 x 1.5 x Funds Flow 2,400 2,000 1,600 MM 1,200 800 400 0 2009 2010 2011 2012 (Q1) Credit Facility Convertible…
Assets: Corporate Production Base New production is layered onto maturing assets for growth. Base 2011 Incremental 2012 Incremental 60,000 50,000 * Production (boepd) * * 40,000 30,000 20,000 2012 2011 Base decline:…
Assets: Production Production is oil weighted. Oil & NGL (bbl/d) Gas (boe/d) 60,000 Petrobank Canadian Business Unit PetroBakken 50,000 40,000 Production (boepd) 30,000 20,000 10,000 0 Q2 Q2 Q3 Q4 Q2 Q3…
Assets: High Performance Netbacks Our netbacks outperform intermediate industry peers. Q1 2012 per BOE Profitability Q1 2012: 52.83/boe (excludes hedging) Netbacks were Operating Netback Operating Expense Royalties influenced by…
Assets: Industry Leading Netbacks We are a low cost, highly profitable producer. With an operating netback of 52.42/boe in Q1 2012, our peers must produce additional barrels to generate the same returns. Q1 2012 Barrel Parity 5x…
We Repeat: Strong Well Economics Light-oil focused inventory generates strong economic…
We Repeat: High Returns We invest early in core areas with high returns. Saskatchewan AB/BC & Bakken Cardium Conventional Emerging Plays 2011 Average Production 5,931 20,493 11,199 3,375 (boepd) 2011 Capex 81 320 486 63 (mm) 2011…
New Emerging Plays PBN is well positioned for growth. Meaningful land position with over 190 net undeveloped sections, exposed to new emerging light-oil resource plays More than 1,100 wells of experience in horizontal multi-stage…
Innovate, Grow, Repeat in the Bakken We apply technology to lower costs and increase productivity. Bilateral wells are capital efficient for down-spacing CleanTechTM improves well performance and lowers water cuts in certain areas…
Innovate, Grow, Repeat in the Cardium By refining methodologies we keep getting better. We utilize slickwater frac completions in our horizontal wells We continue to optimize our drilling and completion techniques Steady production…
Future Growth Through EOR Innovation Advancing the practical application of the innovation curve. Secondary recovery is another potential value generation leg for PBN We see EOR potential in both the Bakken and Cardium resource plays…
2012 Capital Forecast Repeating our strategy in 2012. Net Forecasted Average Q1 2012 production Business Capital Wells* Exit Rates exceeded 46,500 boepd Units (millions) (Q1) (boe/d) Average April 2012 production Bakken 105 (1)…
Our People 132 FIELD STAFF 285 OFFICE STAFF 32SUMMER STUDENTS PetroBakken Energy Ltd. May 2012 22
Positioned for the Future Generating value through light oil resource plays. WE INNOVATE Continuing to apply innovative ideas and refine successful practices gained from drilling and operating over 1,100 horizontal wells WE GROW…
Trading symbol PBN: TSX May 22, 2012 closing price 11.88 Shares outstanding 187.9 million Options/incentive shares 12.7 million Market capitalization 2.23 billion PBN:TSX www.petrobakken.com 24
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