Corporate Profile Corporate Summary Production (Q1 2014) 105,700 boe/d Reserves (2P Gross YE 2013) (1) 634 mmboe Reserve Life Index (2P) (1) 15.5 years (2) Annualized Dividend / Dividend Yield 1.20 per share / 3.7% (3) Annualized…
Unique Strategy Targeting net debt to 200% Reserve funds from operations Replacement through between 1.0 1.5x the drill bit for the past Active Hedging 6 consecutive years Program Capital Discipline and Pace of Development…
Risk Managed Value Creation Production Profile boe/d Forecast Strategic Optionality
Sustainable Dividend Key component of strategy Supported by active hedging and balance sheet strength Cumulative Dividends and Historic Payout Ratio Committed to the Dividend While Delivering Profitable Growth
Delivering Income and Growth Delivered 19% annualized total return since inception Paid out greater than 5 billion in total dividends to date - 30.38/share (1) Production Growth Reserves Growth (2P) Gas Liquids (1) Includes June…
ARCs Proven Development Model FULL CYCLE GROWTH AND INCOME PROVIDER Dawson, Pembina, SE Sask/Manitoba, Redwater OPTIMIZE COMMERCIALITY Ante Creek, Parkland/Tower EXPANSION REPEAT DECISION DEVELOP TO COMMERCIALIZE…
2014 Capital Budget 915 Million Significant spending on oil and liquids-rich gas and low cost, high rate of return Montney natural gas development 2014 Capital Budget Volumes Year Capital Average Gross Net MM (boe/d) Wells…
Growing Our Low Cost Gas Business 15% CAGR(1) total Natural Gas production driven by 33% CAGR Montney Natural Gas production 2009 - 2015 Forecast 21% CAGR(1) in 2P Natural Gas reserves from 1 Tcf to 2.6 Tcf 2008 - 2013 (1)…
Growing Oil and Liquids Since 2009 7% CAGR(1) total Liquids production driven by 34% CAGR Montney Liquids production 2009 2015 Forecast 5% CAGR(1) in 2P Liquids reserves from 152 Mmbbls to 194 Mmbbls 2008 - 2013 Meaningful Oil…
Montney Growth Assets
Montney Growth Assets - Pilot Wells Pilot Projects: Attachie West Attachie East Septimus Pouce Coupe Lower Montney Parkland/Tower Lower Montney Dawson Lower Montney Optionality - Assets in Various Stages of Development…
Montney Infrastructure Optionality Area is currently well served with three major pipelines providing access to North American Markets: TransCanada Canada & US Alliance Chicago Spectra - Westcoast ARC Lands Multiple pipelines are…
ARC in the Montney Montney ARCs Growth Engine
Significant Land Base and Drilling Inventory Gross Drilling Locations* Montney Lands 966 Gross (902 Net) Sections Developed Undeveloped Developed Undeveloped * Subject to change based on technology and economic…
NEBC Montney First Year Cumulative Gas (1) All Montney Horizontal gas wells in NW AB from T75 R10 W6 (Glacier) to NE BC 94-G-2 (Northern Montney). (2) Based on first 365 days of production (excludes oil wells and all gas wells…
Montney Development Economics Half Cycle Economics Cdn 95/bbl Oil and Cdn4/GJ Gas Parkland Tower Dawson Sunrise Ante Creek 70% IRR 35% IRR 85% IRR 80% IRR 70% IRR 4.2x Recycle 4.1x Recycle 4.5x Recycle 4.8x Recycle 3.3x Recycle…
Dawson Gas World Class Gas Resource
Dawson Asset Details Net production (boe/d) Q1 2014 27,200 Liquids (bbls/d) 950 Gas (mmcf/d) 158 Production split % (liquids/gas) 97% gas Land (Montney net sections) 133 Working Interest 96% Reserves (2P mmboe) 174 Liquids…
Dawson A Cash Flow Machine Grown production from approximately 50 Mmcfe/d in 2009 to 165 Mmcfe/d by mid 2012 At Cdn3 gas 30% Reinvestment Ratio to sustain Cash Flow and generate 100 million of Free Cash Flow annually for 15 years…
Dawson Gas Type Curve Growth Expect 2014 type curve to be consistent with 2013; plans to drill core Dawson wells to keep plant full in 2014 and into 2015 Based on delineation data from pressure and rate performance, we expect…
Parkland/Tower Reaping Acquisition Benefits
Parkland/Tower Asset Details Parkland Tower Net production (boe/d) 12,700 3,870 Q1 2014 Liquids (bbls/d) 1,950 2,850 Gas (mmcf/d) 65 6.1 Land (net sections) 23 57 Working Interest 84% 92% Reserves (2P mmboe) 58.0 24.6 Liquids…
Tower Dual-Layer Development Parkland and Tower have similar geology Two Layer Horizontal Development Very Thick Montney A 100M (328 ft.) Tower also has Dual-Layer Montney Development Opportunity
Tower Strong Well Performance Tower 12-16 Pad (8 wells) Cumulative Production Cumulative Oil Production (Mbbls) Cumulative Total Production (Mboe) Restricted to 100 bopd MRL due to Government Regulations. 2014 Type Well Early…
Sunrise Long-Term Growth Opportunity
Sunrise/Sunset Asset Details Sunrise has progressed from pilot to full scale development Net production (boe/d) Q1 2014 3,000 Liquids (bbls/d) 0 Gas (mmcf/d) 18.0 Land (net Montney sections) 32 Working Interest 89% Reserves…
Sunrise Development Planning Sunrise 02-25 Sunrise Development Model Vertical Frac Offset Proposal Upper Montney Middle Montney Montney B Montney E Multiple Zones with Economies of Scale
Sunrise Outperforming Expectations Estimated Ultimate Recovery (EUR) is Cumulative Production + Forecast or GLJ 2P Reserves A 02-25 Hz MTYA Cum to March 10, 2014: 3.9 Bcf ARC EUR Forecast (RTA): 15 Bcf GLJ 2013 (2P) EUR:14 Bcf B…
Ante Creek Oil & Gas A Montney Success Story
Ante Creek Asset Details Net production (boe/d) Q1 2014 18,200 Liquids (bbls/d) 10,700 Gas (mmcf/d) 45 Production split % (liquids/gas) 59/41 Land (Montney net sections) 341 Working Interest 99% Reserves (2P mmboe) 50.9…
Ante Creek Opportunity for Down-Spacing Testing 200m lateral horizontal well spacing in Montney through pilot schemes; ensuring future development extracts maximum value The down-spacing is aimed at greatly increasing the NPV of the…
Summary
Looking Beyond 2015 ARC has a well balanced inventory of value creating opportunities which may be pursued beyond 2015 Option to grow at a rate estimated to be similar to growth for the period 2010 2014 Project Options 2016 -…
Appendix
Reserves and Resources Disclosure TPIIP, DPIIP and UPIIP have been estimated using a zero percent porosity cut-off for gas and a 3% cutoff for oil. This means that all gas bearing rock has been incorporated into the calculations.…
Definitions of Oil and Gas Reserves and Resources Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis…
Definitions of Oil and Gas Reserves and Resources Economic Contingent Resources (ECR are those contingent resources which are currently economically recoverable. Undiscovered Petroleum Initially-In-Place (UPIIP) is that quantity of…
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