TD Securities 2011 Calgary Unconventional U co e t o a Energye gy Conference July 2011
CONNACHER - WHO, WHAT, WHERE Half a Billion barrels of 2P bitumen reserves(1) conventional producer TSX:CLL heavy oil refiner SAGD Oil sands asset Conventional asset AB bitumen Montana Refinery Fort McMurray…
KEY FACTS(1) Market 448mm shares capitalization: outstanding 545mm Enterprise Pre-tax NAV: CLL - TSX Value: 2.9B 1 5B 1.5B 52 week Hi-Lo: On average, 2mm shares 1.66 - 1.10 traded dailyy 1) As at May 31, 2011. Refer…
TRACK RECORD OF GROWTH Production Boe/d(1) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 2009 2010 Q1 2011 2011E Crude oil Natural gas Bitumen Bitumen Reserves(1)(2) MMbbls PV-10% (MM) 700 4 000…
THE STAGE IS SET UPSIDE INITIATIVES(1) Value Recognition Oil Sands JV Process Being Initiated Light g O Oil Resource esou ce Play ay - In Progress og ess Asset Rationalization In Progress Streamlined Balance Sheet -…
Act I: CORE ASSETS GROWING, RELIABLE BITUMEN PRODUCTION Holdings in main Athabasca oil sands fairway(1) Focus on Greater Greater Divide Divide Half a Billion barrels of 2P bitumen reserves(2) Divesting Halfway Creek Fort…
POD ONE 27,000 bbl/d steam generation capacity Over 8 million bbls of bitumen produced and sold since December 2007 startup Possible infill wells and new well pad in 2012(1) 1) Refer to slides 22 and 23 for forward looking…
ALGAR Pod One Algar Well Pads Algar Plant Site Completed April 2010, under-budget; commerciality achieved October 1, 2010 30,000 bbl/d steam capacity Still in ramp ramp-up up phase Designed to facilitate brownfield…
LIGHT OIL RESOURCE PLAY TWINING(1) Capitalize on resource play expertise Targeting light crude oil in the Pekisko Formation 100+ well locations identified near Three Hills producing area Anticipate p 200 boe/d mid-point p IP…
DOWNSTREAM ASSET MONTANA REFINERY Profitable 9,500 bbl/d heavy oil refinery located in Great Falls, Montana Captures a portion of the heavy oil price differential to which oil sands operations are exposed Produces gasoline, middle…
Act II: CHALLENGES OIL SANDS CONSISTENT AND SUSTAINABLE GROWTH(1) 20 000 20,000 20 000 20,000 19,000 19,000 18,000 Based on 7 day rolling average production since July 2010: 18,000 17,000 17,000 16,000 2011 full yyear 16,000…
GREAT DIVIDE EXPANSION PROJECT(1) EIA submitted to expand SAGD productive d ti capacity it att Great G t Divide to 44,000 bbl/d - anticipate late 2011 approval 500 mmbbls 2P reserves more than support expansion plans Proposed…
ENVIRONMENTAL ISSUES Oil sands d mining i i and d iin-situ it processes t tarred d with ith the th same brush b h Concerns about emissions are here to stay In-situ Oil Sands Alliance (IOSA) is a voice for independent oil…
ACT III: IMPACT OF TECHNOLOGY OPTIMIZATION THROUGH INNOVATION(1) Innovation Impact Status Low Pressure Reduces SORs Ongoing SAGD Reduces impact of lower pressure lean zone/gas cap in Pod One (Pod One and (Downhole pumps) Enhances…
ACT IV: PRICING OIL SANDS PRICING OVER LAST TWO YEARS(1) Bit Bitumen Price P i Comparison C i WTI WCS DilBit price at W/H Diluent price delivered to site Bitumen price at W/H Bitumen price at W/H (with Hedge) 140 130 120…
SIX REASONS TO OWN CONNACHER(1) Value Recognition Production Growth from Reserves Impact of Innovation in Oil Sands I Impact t off Light Li ht Oil R Resource Pl Play P Prospects t Improved Balance Sheet and Metrics…
LARGE PRODUCING BITUMEN RESERVE BASE(10) As at December 31, 2010 mmbbl 10% PV mm (9) Proved Reserves (1P) (1) 180 1,397 Proved and Probable Reserves (2P) (1)(2) 500 2,966 P Proved, d Probable P b bl and d Possible P ibl…
2011 PRODUCTION FORECAST AND CAPITAL BUDGET(1) Production 2010 Actual Bitumen (bbl/d) 14,500 16,500 8,299 Conventional (boe/d)(2) 1 000 1,400 1,000 1 400 2 400 2,400 Total Upstream (boe/d) 15,500 17,900 10,699 Capital Budget…
CONNACHER IS VALUABLE(1) Estimated Net Asset Value (NAV) millions Proved and Probable Reserves (2P) (2) 3,101 Best Estimate Contingent Resources (2) 571 Land Value (3) 15 Book Value of Refinery (5) 81 Investment in Gran Tierra (legacy…
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