CORPORATE PRESENTATION March 2015 www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
CORPORATE OVERVIEW Highly qualified Board and management team with considerable oil and gas experience Assets are located in the Mid-Continent Region of the U.S. Parallel owns and operates nearly 100% of its assets Senior technical…
THREE MAIN GOALS IN 2015 Maintain a sustainable business model Take the necessary steps to ensure that Parallel is operating within its 1 available cash flow in 2015 Continuously assess and respond to market conditions Postpone…
PARALLELS ASSET ADVANTAGES Parallels assets have qualities and characteristics that support a long-term stable production profile Asset Advantages Assets are almost 100% owned and operated 1 Ability to postpone and recommence…
LOCATION OF ASSETS Texas Assets Greater Panhandle / Hugoton Field Parallels Assets and Operating Areas Oklahoma Assets Location Estimated % of Total Production Texas Carson 63% Texas Sneed 30% Texas Cargray 3% Texas SE…
INFRASTRUCTURE Parallels operating areas have extensive oil and gas infrastructure in place to support long-term production stability Primary and back-up processing agreements in place at both Carson and Sneed Pipeline, compressors,…
OPERATOR OF ASSETS Parallels Operating Position Texas Assets 100% Operated Oklahoma Assets Non-Operated Parallels U.S. based operating team is led by Tony Swindell, Parallels COO U.S. Operating Team Operating Office Tulsa,…
OPERATING SUMMARY Operating Area Production Type Acreage Wells (net acres) (gross count) Condensate & NGLs Carson Natural Gas 91,000 220+ Condensate & NGLs 100% Operated Sneed Natural Gas 52,000 200+ Texas Condensate…
2014 RESERVE SUMMARY Summary of Reserves at December 31, 2014 Total Oil Net Present Value of Future Net Revenue Equivalent Discounted at (%/year ) (USMM) (mboe) (%) 0% 5% 10% 15% Proved Developed Producing 32,306 67 589 389 281…
CAPITAL PLANS www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN 11
2015 CAPITAL PLANS SUMMARY 2015 Drilling Program The 2015 drilling program has been postponed until a sustained recovery in commodity prices is evident Current 2015 Capital Budget US3.1 million 2015 Well Cleanout Program US2.2…
FUTURE DRILLING LOCATIONS Performing Low-Risk, Development & Delineation Drilling Remaining Drilling Locations Over 140 Drilling Success Rate 100% Parallels Traditional Drilling Single Lateral Wells Technique Dehumidified Air No Mud…
WELL CLEANOUT PROGRAM Stimulating Well Production & Managing Parallels Low Production Decline Rate Cleanouts Performed Per Up to 25 Quarter Over time Parallels wells can accumulate fines and dirt which slow production rates.…
PRODUCTION HISTORY Following an initial period of growth Parallel is now targeting a stable production profile Achieved annual production results in 2013 and 2014 that were in line with expectations despite experiencing challenging…
PRODUCTION MIX & REVENUE Production Mix Parallel is considered to be a liquids-weighted producer as condensate and NGLs account for two-thirds of the total production mix Revenue Split Condensate and NGLs account for the…
PRODUCTION MIX NGL SPLIT Parallels Estimated NGL Production Split & the Weighted Average Price at Conway in Q4-2014 Weighted Average Price Industry Parallels Estimated Average in Q4-2014 NGL Production Split (US/boe at Conway)…
REVENUE & OPERATING NETBACK Breakdown of Gross Revenue (US) (Before Realized Hedges) Parallel recorded an average operating netback (before realized hedges) of US23.02 for the full year 2014 www.parallelenergy.ca TSX: PLT.UN 19
INDUSTRY COMPARISONS www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
IMPACT OF A LOW DECLINE RATE Parallels production decline rate is the lowest in its peer group at 8% The average production decline rate for Parallels peer group is 24% Having a very low production decline rate means that Parallels…
RESERVE RATIOS Parallels ratio of proved developed producing (PDP) reserves as a percentage of total reserves is the highest in its peer group at 67% The average PDP ratio for Parallels peer group is 40% Having a high ratio of PDP…
MARKET DATA (As at March 18, 2015) Ticker Symbols TSX: PLT.UN (units) TSX: PLT.DB (convertible debentures) Units Outstanding 55.8 million 52 Week Range 0.46 4.84 Closing Price (March 18, 2015) 0.65 Distribution declared since IPO…
MANAGEMENT & DIRECTORS Management Rick Alexander Tony Swindell President and CEO Chief Operating Officer Rick Miller Chief Financial Officer Directors Chris Burley (Chairman of Parallel Energy Trust) F.H. Mim James Director of…
CORPORATE STRUCTURE Unitholders Investment in Units Distributions Tax efficient Mutual Fund Parallel Principal and Investment in CT Notes Energy Trust Interest on CT Administrator Shareholders Trust structure and CT Units…
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