NUVISTA ENERGY LTD. CORPORATE PRESENTATION NOVEMBER 2012
Corporate Strategy Transforming NuVista in a challenging natural gas price environment Build foundation for future Alberta Montney success at Wapiti has proven significant condensate-rich growth potential Disciplined approach to…
2012 Business Plan Doing what we said we would Focus on excellence in execution and discipline Manage debt at least flat for FY 2012 Limit capital to cash flow + asset sales proceeds Prove and delineate strategic potential of…
Divestitures Sharpen our Focus Upon The Alberta Condensate-Rich Montney at Wapiti Pro-forma (1) Total Core July 2012 (1) Post Net Regions Production Dispositions Acreage Key Products (Boe/d) (Boe/d) (000s) Deep Basin 14,875 8,900…
Developing Exposure to New Plays Knowing when to focus is critical A diverse portfolio is critical during the early stages There is a pronounced inflection point in recognizing value as de-risking is achieved the correct time to…
Requirements for Profitable Resource Development Alberta Wapiti Montney ingredients for success Prove Play Focus Build Grow Repeatable and scalable Sufficient level of de-risking and data acquisition (established typecurve)…
Alberta Montney Focus Repeatable and scalable three offsetting industry developments add to our own momentum Albright - COP and ECA Operated 71 16 HZ Wells Producing Since 2009 Condensate-rich gas accumulation August 27 MMcf/d total…
Greater Wapiti Area Montney Production 10-fold increase since 2010 All Industry Wells *Greater Wapiti Greater Wapiti Montney Producers.wls November 10, 2012 1.0E4 1.0E7 1.0E4 100 Currently 50 wells that have…
Alberta Montney Select industry landholdings and drilling activity NuVista 69 Paramount 68 7 Gen Celtic 67 CIOC Sinopec 66 Daylight 65 64 63 Best approximation of 62 industry land positions from public 10W6…
Alberta Montney Focus De-risking and data acquisition already sufficient and growing T69 5 Sino-DAY Well Current Status 3 1 1 Producing 6 T68 4 CNRL 2 Producing NVA 3 Producing 4 Producing T67 5 Producing Core Analysis 7 6…
Montney Performance Exceeding expectations Montney Sales Production Montney IP30 Production Rates 3,500 2,000 Sales Gas C2-C4 C5+ 3,000 C5+ C4/C3 Sales Gas Facility-restricted in first month Production (Boed) 2,500 1,500…
Alberta Montney Resource Focus Condensate-rich Wapiti Montney Netbacks At Base Liquids Typecurve Shallow Cut Yield Deep Cut Yield 9.00 /Mcfe 50 Bbls/MMcf 100 Bbls/MMcf 8.00 6 Condensate 32 7.00 10 Butane 39 34 Propane 6.00…
We Have Demonstrated Continuous Improvement in Execution and Cost 6,000 5,600 Drilling Building operational efficiency is critical to 5,500 resource play development success 5,000 Best Cost to date = 4,800K NuVista is delivering on…
Alberta Montney Focus Access to short and long-term egress Egress 1: Gas currently flowing through Devon Compressor/Dehy to SemCAMS K3 plant T69 Egress 2: Sinopec - Daylight /NuVista 7-22 compression and dehydration to SemCAMS…
Alberta Montney Focus Access to short and long-term egress Alliance Sales Future Option 4 Loop portion of SemCAMS Pipeline to existing K3 plant. Future Option 5 CNRL Gold Creek facility Future Option 6 Paramount 6-18 facility…
Compelling Economics Now with line-of-sight to exceptional Original Typecurve Early Pilot Wells, Long Tie-ins 2013-14 Dev Wells Full-field Development Typecurve Upside c3, 5.5 c3, 5.5 c3, 5.5 c3, 5.5 c3, 5 c4, 8 c4, 8 c4, 8 c4, 8…
NuVista Montney Economic Sensitivities are Moving to the Right +0.60 +0.30 - -0.30 -0.60 November 2012 16
The Rocks Underpin our Results Thick Continuous High Quality 12-23-66-7W6 Sand dominated reservoir 3G Analysis for EVERY well Lower Shore Depositional Mineralogy Geological face Upper Environment Pore distribution shelf facies Rock…
Contingent Resource Identified on 50% of NuVista acreage* and counting 6 miles Continue drilling by NuVista and competitors will serve to: 1. Convert resources to reserves; and 2. Identify additional contingent resource…
Middle Montney Contingent Resource Significant scale and value independently verified Discovered Petroleum Initially-In-Place(1) Contingent resource assigned to approximately of NuVista's land base to Cumulative Production (2) 0.0018…
Contingent Resource Disclosure Notes: (1) All estimates of resources and reserves in the above table represent NuVista's gross resources, reserves or production before the deduction of any royalties and without including any royalty…
Alberta Montney Resource Focus Wapiti Advantage: up-hole options for additional development Multiple liquids-rich gas bearing zones up-hole Provides optionality as there is abundant sweet area infrastructure Example: Falher Zone 24…
2012 Guidance Enhancing the Wapiti Alberta Montney focus with renewed balance sheet strength 2012 Guidance Capital Expenditures (MM) 120 Production (Boe/d) (1) 22,000 - 22,500 Oil and Liquids Weighting (%) 29% Funds from Operations…
2013 Business Plan & Guidance Moving from 1 rig to 2 rigs - November 2012 First half 2013 approved capital expenditure budget 90MM Funding sources: cash flow, bank debt and property dispositions First half 2013 production 15,250…
NuVista: Looking Forward the corner has been turned Solid balance sheet Major divests complete Focused and repeatable Pilot program success Play economics great and rising Costs falling, liquids rising Accelerating on the back of…
Commodity Price Risk Management Average Average Crude Oil Volume Floor Cap Premium Period (Bbls/d) Fixed Price Swap WTI (C/Bbl) 1,350 86.39 86.39 Q4 2012 Fixed Price Swap WTI (C/Bbl) 1,350 86.39 86.39 Q1 2013 Fixed Price Swap WTI…
Commodity Price Risk Management Natural Gas - AECO Average Average (physical sale contracts) Volume Floor Cap Premium Period (GJ/d) Fixed Price Swap (C/GJ) 3,333 3.41 3.41 Q4 2012 Fixed Price Swap (C/GJ) 10,000 3.02 3.02 Q1 2013…
Advisory Regarding Oil and Gas Information ADVISORY REGARDING OIL AND GAS INFORMATION Throughout this presentation the terms Boe (barrels of oil equivalent), MMBoe (millions of barrels of oil equivalent), (Bcfe (billions of cubic feet…
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