Annual General Meeting of Shareholders May 8, 2014
Corporate Profile Average Q1 2014 production: 21,028 Boe/d (80% gas) 97.9 MM shares outstanding Market capitalization 59.00/share: 5.8 billion 50% insider ownership 924,000 net acres undeveloped land (December 31, 2013) Net Debt:…
Core Areas Average Production (Boe/d) Q1 2014 Kaybob 13,368 Grande Prairie 5,553 Southern 1,455 Northern 652 Total Boe/d 21,028 2014E capital expenditures: 650 MM (including Strategic Investments) 4
Kaybob Resource Paramount Acreage: 560 sections Cretaceous Rights 394 Sections Montney Rights 258 Sections Duvernay Rights Deep Basin liquids-rich gas resources in multiple stacked horizons 40-160 Bcf/section (1) 5+ Bcf EUR/Hz…
Dunvegan Hz Wells Hz Dunvegan well at Resthaven Tested 11.3 MMcf/d(1) at 6.2 MPa IP: 8.3 MMcf/d Currently producing 1.3 MMcf/d Cost: 8.3 MM d/c/t (1) Please refer to the heading Test Results in the Advisories section of this…
Falher/Wilrich Hz Wells Hz Falher well at Musreau Tested 16.4 MMcf/d(1) at 20.8 MPa IP: 12 MMcf/d Producing 2 MMcf/d Cost: 8.6 MM d/c/t (1) Please refer to the heading Test Results in the Advisories section of this…
Falher Type Curve 8
Economics of Kaybob 4.9 Bcf Horizontal Falher Well * Based on processing through a refrigeration facility 9
Montney Gas Resource Liquids-rich Montney gas play Paramount holds 325 net sections of Montney rights 2011/2012 program included 12 Hz Montney wells: tested 5.5-15.4 MMcf/d(1) Montney 2013 program: Drilled 13 wells; commenced…
Montney NGL Rates For Paramount well test results please refer to the heading Test Results in the Advisories section of this presentation for further information. 11 Test results from Competitor wells were obtained through publicly…
3.7 Bcf Montney Type Curve * Based on processing through a refrigeration facility 12
Montney Drilling/Completion Improvements Pad drilling/pad layout Bits/muds/motors Well design: monobores/orientation/reservoir placement Toe up/toe down: effects on production Natural gas fueled rigs Cemented liners/open-hole…
Fox Rig No 3 14
Musreau 2014 Capital Plan Drill 25 (25 net) horizontal Montney wells Start drilling 8 (8 net) Montney pad wells Drill 3 (2.3 net) horizontal Falher/Wilrich wells Drill 4 (3.5 net) vertical wells to hold lands Bring 70 (net)…
Karr Located 50 km SW of Grande Prairie Multi-zone potential, including Halfway, Montney sour and Gething, Bluesky, Falher sweet commingled gas Current lands 93,500 net acres (146 sections) Average 78% working interest Expanded…
Kaybob Plant Capacity Net POU Est. Net Gross Raw Raw POU Sales Capacity Capacity Capacity(1) Current Capacity MMcf/d MMcf/d Boe/d Musreau Refridge 45 45 8,500 Plant Resthaven Plant 20 10 2,000 Smoky Plant 100 10 2,500 Kakwa…
Kaybob Processing Capacity (1) (2) 18
Sales Turbines 19
Process Flow Chart: Musreau Deep Cut Facility Note: Illustrative example 21 Based on indicative prices and differentials which are subject to change
Illustrative Deep-Cut Mix of Cretaceous and Montney Wells Example Montney Wells Only Example 200 MMcf/d x 23% Shrinkage=154 200 MMcf/d x 15% Shrinkage=170 MMcf/d (25,667 Boe/d) Sales Gas Price MMcf/d (28,333 Boe/d) Sales Gas 150…
Paramount Deep-Cut Montney - Illustrative Project Economics Paramounts shallow rights will add substantially to the RLI Paramount has de-risked a substantial amount of its land base and thus could have the potential to do this many…
Valhalla Montney/Doig Play 16 wells tied in at restricted rates (midstream constraints) Currently tied in to four different producer-mid streamers on interruptible capacity leading to intermittent production profiles…
Birch Three Hz Montney wells on production Production processed through pilot facility limited to 3 MMcf/d NGL yields average 60 Bbl/MMcf Four wells planned in H2 2014 Evaluating type curve/NGL ratios to determine economic…
Paramount Investments
Paramount Investments 19.1 MM shares of Trilogy 30.00/share 574 MM 54.1 MM MGM Energy shares 0.20/share 11 MM Fox Drilling 85 MM 3.7 MM shares of MEG Energy 39.00/share 144 MM Other (Marquee, RMP, Strategic, Westbrick, etc.) 56…
Cavalier Energy Inc.
Cavalier Energy Inc. Created in December 2011 Experienced team led by CEO Dr. Will Roach (ex UTS) Paramount has contributed its oilsands assets and seed capital to Cavalier Energy Funding at the Cavalier level will be via a…
Cavalier Assets Approximately 320 sections gross (316 net) Prospective primarily for conventional oilsands, bitumen in carbonates, and cold-flow heavy oil Hoole Project: 100% WI (1) Resource estimates are Best Estimates based…
Hoole Grand Rapids - 1st Project Grand Rapids Reservoir = 30 %, k = 1 to 4 D d = 250m, h 20m, p = 1,500 kPa Viscosity = 200,000 to 2,000,000 cp McDaniel Best Estimate: DEBIP = 1.7 Billion Bbl(1) 80 wells drilled to date; 42 cored…
Liard, NWT Shale Gas
Liard Basin Drilled and completed b-40-I Clean-up test: 5-14 MMcf/d(1) Completion of d-57-D/94-O-12 horizontal planned for later in 2014 Liard Basin industry estimates(2): 170-500 Bcf / section OGIP 20% expected recovery 34-100…
Quarterly Operating Results 35
Conventional Reserves Columns may not add due to rounding. Conventional reserves only. Includes nominal amounts of estimated reserves in respect of Paramount's initial shale gas well at 36 Patry, B.C.
Summary Exposure to significant reserve opportunities Kaybob Deep Basin: Cretaceous, Montney Karr: Montney Valhalla: Montney, Doig Birch: Montney Significant asset value Trilogy MGM MEG Energy Cavalier Energy Liard Shale Gas…
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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