Stifel Nicolaus Energy Conference 2012 June 8, 2012
Corporate Profile Q1 2012 average production: 18,813 Boe/d ( 79% gas weighting) 85.6 MM shares outstanding Market capitalization 27.00/share: 2.3 billion 50% insider ownership 1.2 million net acres undeveloped land (December 31,…
Core Areas Average Production (Boe/d) Q1 2012 2012E Kaybob 9,675 12,600 Grande Prairie 3,792 6,500 Southern 3,718 3,800* Northern 1,628 2,100 Total Boe/d 18,813 25,000 2012 E&D Capital Budget: 475 MM 350 MM in Kaybob 2012…
Kaybob Gas Resource CRETACEOUS GAS SANDS OGIP PER SECTION Significant liquids-rich gas 70 Bcf/Section Average OGIP* resource exists within Deep Basin tight sand reservoirs 40160 Bcf per section OGIP* 1.55.0 Bcf EUR per…
Paramount Musreau/Resthaven Montney Lands Liquids-rich Montney gas play Paramount holds 209 sections (113,000 net acres) of Montney rights 2011 drilling included 5 Hz Montney wells: 15-33 (50% WI) tested over 10 MMcf/d (1) on…
Dunvegan Hz Wells Hz Dunvegan well at Resthaven Tested 11.3 MMcf/d* at 6.2 MPa IP: 8.3 MMcf/d Producing 2.4 MMcf/d Cost: 8.3 MM d/c/t 10 Cum Production: 3.3 Bcf 8 Gas Rate (MMcf/d) 6 4 2 0 0 100 200 300 400 500…
Fahler Hz Wells Hz Falher well at Musreau Tested 16.4 MMcf/d* at 20.8 MPa IP: 12 MMcf/d Producing 3 MMcf/d Cost: 8.6 MM d/c/t 16 14 Gas Rate (MMcf/d) 12 Cum Production: 3.2 Bcf 10 8 6 4 2 0 100 200 300 400 500…
Falher Production 9
Economics of Kaybob 4.9 Bcf Horizontal Falher Well 10
3.7 Bcf Montney Type Curve 11
Economics of Kaybob 3.7 Bcf Horizontal Montney Well 12
Resthaven/Smoky Nine Hz wells drilled in 2011 Four Dunvegan wells brought on production with first month IP at 3.4 6.0 MMcf/d (One at 50% WI, three at 100% WI) Eight wells planned in 2012; five wells drilled to date 3 Hz Montney…
Kaybob Plant Capacity Gross Net POU Raw Raw Est. Net Gas Capacity Sales Current Capacity MMcf/d MMcf/d Boe/d Musreau 45 45 8,600 Resthaven Plant 20 10 2,000 Smoky Plant 100 10 2,500 Kakwa Plant 40 4 720 Pembina Musreau…
Paramount Deep-Cut Montney Project Economics Resource Needed: 200 MMcf/d x 365 73 Bcf/year x 10 year RLI = 730 Bcf 70 Bcf/section 50 % recovery = 20 Sections Cost 40 (5 MMcf/d wells) x 10 MM/well = 400 MM Gas Plant = 200 MM Total:…
Karr-Gold Creek Located 50 km SW of Grande Prairie Multi-zone potential, including Halfway, Montney sour and Nikanassin, Gething, Bluesky and Falher sweet commingled gas Current lands 95,000 net acres (148 sections) Average 83%…
Valhalla Montney/Doig Play Eight wells tied in at restricted rates (facility constraints) Four wells awaiting completion Two wells awaiting tie-in Gathering system expansion and additional compression completed Q1 2012 Continued…
Birch Acquired with Prospex Completed Hz Montney well with promising results; significant liquids ratio on test Production processed through pilot facility limited to 3 MMcf/d in April 2012 Drilled and completed two…
North Dakota Bakken light oil play - entered in 2002 Bakken/Three Forks trend; operated through 100% owned subsidiary Summit Resources Inc.: 250 Bbl/d currently Joint venture established April 2010 17,700 net acres with…
Paramount Investments
Paramount Investments 19.1 MM shares of Trilogy 24.50/share 469.0 MM 43.8 MM MGM Energy Corp. shares 7.5 MM 0.17/share Paramount Drilling U.S./Fox Drilling Inc. 45.0 MM 3.7 MM shares of MEG Energy 34.50/share 127.6 MM Other…
Cavalier Energy Inc.
Created in December 2011 Experienced team led by CEO Dr. Will Roach (ex UTS) Paramount has contributed all of its oilsands assets to Cavalier Energy and seed capital Funding at the Cavalier level will be via a combination of…
Cavalier Assets Approximately 311 sections Prospective primarily for conventional oilsands, bitumen in carbonates, and cold flow heavy oil All but 4 sections 100% WI DEBIP Hoole: 1.63 Billion Bbl Carbonate: 1.62 Billion Bbl…
Hoole Grand Rapids - 1st Project Grand Rapids Reservoir = 30 %, k = 1 to 4 D d = 250m, h 20m, p = 1500 kPa Viscosity = 200,000 to 2,000,000 cp McDaniel Best Estimate : OBIP= 1.6 Billion Bbl 75 wells drilled to date; 39 cored 763…
Hoole Development Schedule Full Field Development 28
Hoole Four-Phase Development Production Profiles by Phase 29
Cavalier Summary Oil opportunity with material scale at Hoole (the first project) Significant upside to extensive Bitumen in Carbonates acreage as technology develops Portfolio of long term development assets Capable and broadly…
Liard Basin Type Logs Besa River Shale Gas 225 m shale section 300+ OGIP/section Paramount holds 127,000 net acres prospective for shale gas 31
Operating Results Production Operating Costs Boe/d /Boe 2012 Production Maintaining cost guidance represents controls with a 43% growth over increasing production 2011 volumes is driving operating costs down Funds Flow G&A…
Summary Exposure to significant reserve opportunities Deep Basin: Cretaceous, Montney Karr: Montney, Nikanassin Valhalla: Montney, Doig North Dakota: Bakken Chain: CBM Significant asset value Trilogy MGM MEG Energy Cavalier…
ADVISORIES APPENDIX
4700 Bankers Hall West 888 Third Street S.W. Calgary, Alberta Canada T2P 5C5 Telephone: (403) 290-3600 Facsimile: (403) 262-7994 www.paramountres.com
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