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PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp

Bonavista Energy Corp · Sep 13, 2011 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 1
    New Structure Same Proven Strategy Peters & Co Limited 2011 North American Oil & Gas Conference
  2. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 2
    Bonavistas History Established by current management in 1997 Operated as corporation for our initial 6.5 years focused on growth Converted to an energy trust in 2003 focused on modest, sustainable growth and the delivery of an…
  3. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 3
    Track Record of Value Creation 90.0 450 Junior Phase Intermediate Phase Trust Phase Transitional (high growth) (moderate growth) (sustainable) Phase 80.0 (prepare for 400 conversion) 70.0 350 60.0 300 mboe/d mmboe 50.0…
  4. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 4
    Bonavista Today Toronto stock exchange listing: BNP Monthly dividend: 0.12/share Production: 73,500 boe/d (62% natural gas) Equivalent shares outstanding: 165 million (14% insider ownership) Net debt: 990 million (1.7x 2011…
  5. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 5
    Bonavista Core Regions Three core regions with ample resource potential 85% of properties are operated Disciplined cost structure RLI of approximately 12 years 1,360 drilling locations +80% of drilling locations target…
  6. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 6
    Capturing Value from Natural Gas Liquids Why Pursue Liquids Rich Natural Gas Plays in the Western Canadian Sedimentary Basin (WCSB) Demand for natural gas liquids remains healthy Natural gas liquids pricing has remained strong…
  7. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 7
    Natural Gas Liquids Supply/Demand Ethane North American petrochemical industry has rebounded strongly since 2008 The North American ethane supply offers a cost advantage over global alternatives Strong western Canadian demand is…
  8. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 8
    Natural Gas Liquids Pricing BNP weighted average price of natural gas liquids has de-coupled from natural gas 18.00 16.00 14.00 12.00 10.00 /mcfe 8.00 6.00 4.00 2.00 0.00 Jul-09 Apr-05 Jul-05…
  9. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 9
    Natural Gas Liquids - Value Enhancement Equivalent natural gas price including value of natural gas liquids* 9.00 8.00 8.49 7.85 7.00 7.24 6.98 7.11 6.73 6.00 5.98 6.07 5.67 /mcfe 5.00 4.00 3.00 2.00 1.00…
  10. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 10
    Natural Gas Liquids Proximity to Infrastructure R26 R25 R24 R23 R22 R21 R20 R19 R18 R17 R16 R15 R14 R13 R12 R11 R10 R9 R8 R7 R6 R5 R4 R3 R2 R1W5 R27 R26 R25 R24 R23 R22 R21 R20W4 T63 T63 T62 T62 T61 T61 T60 T60 T59…
  11. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 11
    Increasing Focus on Liquids Rich Natural Gas Bonavistas revenue and production from natural gas liquids 50% 14,000 45% 12,000 40% % of corporate revenue 35% 10,000 30% 8,000 boe/d 25% 25% 6,000 20% 15% 4,000…
  12. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 12
    Inventory Breakdown 1,400 Inventory 2011 Inventory Type Locations Life Program (years) 1,200 Deep Basin Liquids Rich Natural Gas: 1,000 Hoadley Glauconite 375 45 47 8 Rosevear Rock Creek 35 7 5 800 Pine Creek Bluesky 25 2 12…
  13. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 13
    Hoadley Glauconite Liquids Rich Natural Gas Thick heterogeneous sandstone Aerially extensive reservoir over 900 sq. miles Liquids yield of 60 bbls/mmcf Less than 20% recovery factor to date Unlocking incremental value through…
  14. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 14
    Hoadley Glauconite Type Curve 600 500 Initial Production Rate (boe/d,1 mos) 550 Production (boe/d) Initial Production Rate (boe/d, 6 mos) 315 400 Average First Year (boe/d) 245 Recoverable Reserves (mboe) 440 300 200…
  15. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 15
    Hoadley Glauconite Well Performance Normalized Production Trend vs Type Curve 800 80 700 70 600 60 Well Count 500 50 boe/d 400 40 300 30 200 20 100 10 0 0 1 101 201 301 401 501 601 701 801 901 1001…
  16. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 16
    Hoadley Glauconite Development Program Greater than 375 future horizontal locations currently identified The current program results in a conservative ultimate recovery factor of less than 60% Greater than eight years of…
  17. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 17
    Pine Creek Bluesky Liquids Rich Natural Gas Significant quantities of original gas in place 30% recovery factor to date Liquids yield of 40 bbls/mmcf Development to date consisting primarily of vertical wells Reservoir…
  18. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 18
    Pine Creek Bluesky Type Curve 700 Initial Production Rate (boe/d,1 mos) 590 Initial Production Rate (boe/d, 6 mos) 494 Production (boe/d) 600 Average First Year Rate (boe/d) 410 500 Recoverable Reserves (mboe) 498 400 300…
  19. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 19
    Rosevear Rock Creek Liquids Rich Natural Gas R16 R15 R14 FA A A I F A U A I J A T55 U AC T55 Large resource in place initially developed F A vertically Liquids yield of 40 bbls/mmcf 90 mmcf/d of operated…
  20. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 20
    Rosevear Rock Creek Type Curve 600 Initial Production Rate (boe/d,1 mos) 517 Production (boe/d) 500 Initial Production Rate (boe/d, 6 mos) 360 400 Average First Year (boe/d) 263 Recoverable Reserves (mboe) 440 300 200…
  21. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 21
    Blueberry Montney Liquids Rich Natural Gas Emerging liquids rich natural gas resource play 55 net section land position Upper and Lower Montney potential SRX 5.5 mmcf/d Two horizontal / two vertical wells drilled to Town date…
  22. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 22
    Blueberry Montney Type Curve 800 700 Initial Production Rate (boe/d,1 mos) 740 Production (boe/d) Initial Production Rate (boe/d, 6 mos) 455 600 Average First Year (boe/d) 352 500 Recoverable Reserves (mboe) 504 400 300…
  23. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 23
    Emerging Opportunities Industry activity with numerous emerging opportunities proximal to our land base: Viking Cardium Montney Ellerslie Wilrich Notikewin Duvernay
  24. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 24
    Natural Gas Liquids - Summary Natural gas liquids are becoming an increasingly important component of Bonavistas activity Value enhancement of natural gas liquids is compelling Ample gathering and processing infrastructure in the…
  25. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 25
    Appendix
  26. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 26
    Corporate Strategy Focus on profitability and total shareholder return Provide a healthy balance of sustainable growth and meaningful income Target resource style development projects to deliver annual organic production growth…
  27. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 27
    Operational Strategy Maintain an industry leading cost structure Target low risk, resource play opportunities to maximize capital efficiencies Target high levels of operatorship and asset concentration to maximize operating…
  28. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 28
    Operational Strategy Continuous improvement of 3-yr trailing average FD&A costs 25.00 BNP 3-yr FD&A Peer Group* Avg. 3-yr FD&A 20.00 16.95 15.00 /boe 14.80 14.05 13.57 10.00 5.00 0.00 2007 2008 2009 2010…
  29. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 29
    Operational Strategy Continuous improvement in cash cost structure 18.00 BNP Cash Costs Peer Group* Avg. Cash Costs 16.00 14.00 13.85 12.00 13.15 13.20 11.72 /boe 10.00 8.00 6.00 4.00 2.00 0.00 2007 2008…
  30. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 30
    Operational Strategy Increased use of horizontal multi-stage fracture technology 80% 80% 70% 70% Wells drilled horizontally 60% 50% 50% 40% 30% 20% 18% 10% 0% 4% 2007 2008 2009 2010 2011F
  31. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 31
    2011 Capital Spending E&D Expenditure: 400 - 420 million 66% Drilling Program 140 145 wells 18% Facilities building two new major facilities 10% Land and Seismic continue to grow long term development inventory 6%…
  32. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 32
    Western Core Region Current production: 45,500 boe/d Drilling inventory: 993 total locations (94% horizontal) 2011 E&D expenditures: 310 320 million 86 88 wells (92% horizontal) 2011 development focus: Hoadley Glauconite Liquids…
  33. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 33
    Northern Core Region Current production: 16,500 boe/d Drilling inventory: 186 total locations (75% horizontal) 2011 E&D expenditures: 50 - 55 million 9 - 10 wells (56% horizontal) 2011 development focus: Delineate Montney at…
  34. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 34
    Eastern Core Region Current production: 11,500 boe/d Drilling inventory: 181 total locations (54% horizontal) 2011 E&D expenditures: 40 - 45 million 45 - 47 wells (62% horizontal) 2011 development focus: Light oil production…
  35. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 35
    Commodity Hedging Activity Crude Oil Costless Collar % of Volume Floor Ceiling Year Period (bbl/day) Production (WTI C/bbl) (WTI C/bbl) 2011 Q3 9,500 42.5 79.58 97.09 Q4 9,500 38.8 79.58 97.09 Average 9,500 40.5 79.58 97.09…
  36. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 36
    Commodity Hedging Activity Natural Gas Costless Collars % of Floor Ceiling Volume Year Period (gjs/day) Production AECO (CDN/gj) AECO (CDN/gj) 2011 Q3 40,000 14.2 4.67 6.38 Q4 26,667 9.1 5.02 6.85 2011 Average 33,333 11.6 4.78…
  37. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 37
    Bonavista 2011 Guidance 2009 2010 2011F Number of wells 114 140 140 - 145 Capital expenditures (millions) 834 570 580 - 600 Production (boe/d) 55,299 66,259 70,500 71,500 Cash flow (millions) 448 527 570 - 600 /share 3.46 3.44…
  38. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 38
    Bonavista - Well Positioned for the Future People committed management team with a proven track record entrepreneurial employees driven by results Assets high quality asset base capable of delivering profitable growth balanced…
  39. PETERS 2011 NORTH AMERICAN OIL & GAS CONFERENCE – Bonavista Energy Corp – slide 39
    1500, 525 8th Avenue SW, Calgary, AB T2P 1G1 Telephone: 403-213-4300 Fax: 403-262-5184 Web-page: www.bonavistaenergy.com

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