August 13, 2014 Presentation www.andersonenergy.ca
3 Why Invest in Anderson 1. Focused Development on Cardium & Glauc Horizontal wells in Central Alberta Focus is on growing light oil and condensate production - objective is to have production weighting exceed 50% oil, condensate &…
4 Why Invest in Anderson 4. Second Quarter 2014 Results Funds from Operations 5.5 million Production 3,414 BOED (30% oil, condensate & NGL) Operating Netback 28.88/BOE Operating Expenses 13.22/BOE, Average Royalty of 7.6% 5.…
5 Why Invest in Anderson 4. 2014 Guidance 3,200 BOED (36% oil, condensate & NGL) annual, 3,700 BOED (42% oil, condensate & NGL) exit production Year to date production 3,188 BOED (34% oil, condensate & NGL) 46 million capital…
6 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes(1) 405,500 shares/d Management & Directors own (Past 12 months) approximately: Shares Outstanding(1) 172.5 million basic 10% of…
7 Drilling Program Results Eight wells drilled in Willesden Green field evaluating four different land blocks. All completed with slick water frac technology. Average IP30 of 511 BOED (53% oil, condensate & NGL). The best…
8 Drilling Program Results Significant Cardium Liquids-Rich Gas Discovery Two horizontal wells drilled in Willesden Green with an average IP 30 of 854 BOED (32% oil, condensate and NGL) Industry publications indicate the two wells…
9 Horizontal Well Technology Update In the recently completed drilling program, the Company optimized the trajectory of the horizontal well through the Cardium formation to obtain better well performance. The Company experimented…
10 Shallow Gas Optimization Update All operated shut-in gas that could be returned to production was brought back on-stream in the first quarter of 2014 in response to higher natural gas prices. In the first quarter of 2014, the…
11 GLJ Interim Reserves Report Effective April 30, 2014 GLJ Petroleum Consultants (GLJ) completed a modified corporate look-ahead analysis effective April 30, 2014 (the GLJ Interim Report). See MD&A for the three months ended March…
12 GLJ Interim Reserves Report Effective April 30, 2014 GLJ recognizes 31% of Companys drilling inventory as reserves. Total Company NPV 10 P&P was 132.8 million. Management estimates a land value of 3.4 million for its 27,988 net…
13 Q2 2014 Results Funds from operations of 5.5 million in Q2 2014 compared to 5.5 million in Q1 2014. Production of 3,414 BOED (30% oil, condensate & NGL) in Q2 2014 compared to 2,958 BOED (39% oil, condensate & NGL) in Q1 2014…
14 Financing Our Growth Plan 2014 Capital Program Funded with Cash, Cash Flow and Bank Lines Bank Debt(1) nil drawn under bank lines 31 million in available bank lines. Convertible Debentures Series A: 50 million, 7.5% coupon,…
15 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…
16 Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium & Glauc horizontal drilling 2014 Production Guidance 2014 estimate: 3,200 BOED (36% liquids) ALBERTA 2014 exit: 3,700 BOED (42%…
17 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 away from potential pressure T45 depletion and old…
18 Operations Overview Evolution of Cardium Drilling & Completion Practices Impact on Costs and Productivity 6,000 Slickwater Fracs Slickwater Fracs 600 (7 wells) (8 wells ) Feb-2012 to Q1-2013 Q4-2013 to Q2-2014 5,500 550 LEF…
19 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…
20 Operations Overview Light Oil Horizontal Locations July 31, 2014 Gross Net (1) Area Locations Locations Willesden Green Cardium 90 63.2 West Pembina/Buck Lake Cardium 26 7.8 Willesden Green Glauc 9 9.0 Belly River 2…
21 Summary Q2 2014 results include 5.5 million in funds from operations, 3,414 BOED (30% oil, condensate & NGL) of production and an operating netback of 28.88/BOE. Anderson Energy has recently completed a very successful drilling…
22 Summary The Companys 2014 production guidance estimate is 3,200 BOED (36% oil, condensate & NGL). Exit guidance estimate is 3,700 BOED (42% oil, condensate & NGL). The Companys drilling plan from Q3 2014 to Q2 2015: 14 gross…
www.andersonenergy.ca Head Office Contact Information 2200, 333 7 Avenue SW Brian H. Dau Calgary, Alberta T2P 2Z1 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
Loading...
