TD Securities Unconventional Energy Conference Calgary July, 2011
BRITISH COLUMBIA MONTNEY REGION
MONTNEY LANDS MAJOR GROWTH ENGINE Dawson and the West Montney ATTACHIE lands are a significant growth Analysis is ongoing to determine DGIIP for engine for ARC Attachie and Parkland North With greater than 10 Tcf of gas…
MONTNEY LANDS MAJOR GROWTH ENGINE ARC had our independent reserves evaluator assess the resource potential of our main BC Montney lands, excluding Attachie Reserves and Resources - December 31, 2010 (1) Estimated Economic…
DAWSON PRODUCTION 165 MMCF/D IN Q2 2011 180.0 Production through Phase 1 was temporarily interrupted during 150.0 the integration of Phase 2 120.0 90.0 60.0 30.0 0.0 First 60 mmcf/d gas plant on stream May 2010, second 60…
BC MONTNEY WELLS ARC IS THIRD MOST ACTIVE DRILLER 400 350 300 250 200 150 100 50 0 BCOGC ; Top 35 Montney Operators Since 2003 (Montney and Doig Targets) Wells Rig Released
BC MONTNEY PRODUCTION ARC IS CURRENTLY SECOND LARGEST 350 Field Production 300 (mmcfe) 250 Dawson 165 200 Parkland 48 150 100 Sunrise* 7 50 Total 220 0 *non-operated March production, by operator from IHS Accumap
HORIZONTAL WELLS 30 DAY IP RATES MARCH 2011: Glacier - Town 12000 ARC Others 10000 8000 Production Rate (mcf/d) ARC P50 6000 P50 4000 2000 0 1 51 101 151 201 251 301 351 401 451 501 P50 All Wells 3.3…
PARKLAND CAN A SINGLE WELL DRAIN THE FULL VERTICAL SECTION At Parkland, the Upper Montney is considerably thicker than at Dawson. We believe the lower-most sands are not contributing to production a horizontal well has been drilled…
REGIONAL SCHEMATIC CROSS SECTION X Y Total Net Pay3% (m) 103 78 43 36 Total Net Pay6% (m) 30 2 23 4 DGIIP (BCF/Section)* 100 60 45 20 A Y Lower Upper Montney B Montney X E [1] Discovered Gas Initially in Place (DGIIP)…
DEVELOPING IN 3 DIMENSIONS At Sunrise, ARC has tested gas from 3 different zones within the Montney. In Q4, 2011 we will tie-in horizontal wells from each zone to better understand their productive capability Upper Montney A…
MULTI-ZONE POTENTIAL While the Montney is the primary producing zone, the area has multi-zone potential: Rock Creek Cadomin Nikanassin Halfway Doig Doig Phosphate Belloy Kiskatinaw Debolt
DAWSON DEVELOPMENT ECONOMICS 7,000 P10 Type Curve P90 IP (1mo) MMcf/d 5.9 5.0 3.3 6,000 IP (12mo) MMcf/d 4.4 3.7 2.1 5,000 EUR (Bcf) 7.7 6.2 3.8 Gas Rate mcf/d 4,000 3,000 2,000 (26 mos) 1,000 0 (49 mos) 0 2 4…
PARKLAND DEVELOPMENT ECONOMICS 7,000 P10 Type Curve P90 6,000 IP (1mo) MMcf/d 6.4 5.0 3.7 5,000 Gas Rate mcf/d IP (12mo) Mcf/d 2.0 1.6 1.1 4,000 EUR Bcf 5.6 4.8 3.3 3,000 2,000 1,000 0 0 2 4 6 8 10 12 14 16 18 20 22…
ATTACHIE NEW OPPORTUNITY UNDEFINED POTENTIAL 13 mmcfd test Prospective land base of 104 sections Land offsets a 13 mmcf/d Montney test from a third party ARC plans to drill 4 verticals and 2 horizontals by the end of 2011…
APPENDIX
ARC RESOURCES Launched July 1996 as ARC Energy Trust -19% annual return since inception (to June 17) - Current dividend 0.10 per month - 26.68 per share in total dividends (to June 17) -Total dividends of 4 billion (to June 17) -…
KEY RESERVE INFORMATION 19% COMPOUND ANNUAL GROWTH Reserves as of December 31, 2010* (mmboe) - Proved Producing 213 (104 mmboe liquids, 652 bcf gas) - Total Proved 336 (124 mmboe liquids, 1,274 bcf gas) - Proved Plus Probable 487…
INCOME AND GROWTH BOTH ARE POSSIBLE ARC has a 14 year history of risk managed value creation - Provided a 19% annual return since inception - Paid out 4 billion in total dividends - 26.68 / share - Grown absolute production from 9,500…
10% COMPOUND ANNUAL GROWTH IN RESERVES PER SHARE (ADJUSTED) An investor who participated in the dividend re-investment plan since inception would have enjoyed a 10% compound annual growth in the reserves attributed to their…
2011 CAPITAL PROGRAM TARGETS 12 PER CENT GROWTH ( Millions) 2009 (a) 2010(a) 2011(b) Development 187 354 409 Development Facilities 73 72 54 Maintenance 11 15 29 Optimization 8 11 18 Land & Seismic 11 65 17 Unconventional Gas 16 1 5…
HEDGING UPDATE AS OF APRIL 29, 2011 Liquids 2011 2012 Oil (bbls/d) 20,000 18,000 Sold Call (US/bbl)* 89.51 90.00 Bought Put (US/bbl) 84.51 90.00 Sold Put (partial volumes) 61.15 60.00 Gas 2011 2012 Gas (mcf/d) 164,200 76,700…
SUMMARY
WHERE TO FROM HERE Our vision remains the same: Leading oil and gas entity as measured by: Quality of assets Leadership Long-term return to investors Risk managed value creation We expect to continue to provide both growth and…
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