CAPP Investor Symposium Presentation June 14, 2011 www.zargon.ca
Advisory Forward-Looking Information You are cautioned that the assumptions, including, among other things, future oil and natural gas prices; future capital expenditure levels; future production levels; future exchange rates; the…
Operational & Financial Highlights (Quarter ended March 31, 2011) Q1 2011 Production - 9,546 boe/d Oil 5,893 bbl/d (62% of production) Gas 21.92 mmcf/d Undeveloped land - 498 thousand net acres Funds flow - 0.56/diluted share…
Corporate Strategy Focused on smaller and technically complex, but very profitable oil exploitation projects often overlooked by our larger competitors. Disciplined partial cash flow dividend model encourages efficiencies and…
Core Business Strategies Oil Exploitation (increasing reservoir oil recovery factors) Increase oil production, reserves and ultimate recoveries from existing oil pools through waterfloods, development drilling and other production…
Oil Exploitation Properties
Oil Exploitation Project Inventory Williston Basin Potential Net Locations Waterflood Steelman, SK Frobisher Horizontals 8 Primary Steelman, SK Midale Horizontals 2 Modify Steelman West, SK Midale Verticals or Horizontals 4…
Oil Exploitation Project Inventory (excluding Williston Basin) Potential Alberta Plains South Net Locations Waterflood Taber South, AB Sunburst and Glauconite Horizontals 10 Implement (two projects) Taber South East, AB Sunburst…
Successful Oil Acquisition Strategy Over the last 3 years, we have completed five corporate acquisitions and one significant property acquisition that have brought oil exploitation opportunities: Rival Energy Ltd. (public TSX) Jan.…
Reserve Highlights (2010 year end) McDaniel Proved and Probable Estimate (84% is developed producing) Oil 21.3 mmbbl (up 6%) Gas 66.5 bcf (down 9%) Equivalent 32.4 mmboe (unchanged) Reserve Life Indices Proved producing 6.0…
History of Returns Over our 18-year history we have raised only 199 million and have invested 786 million of capital. With this equity investment, we have built a focused oil exploitation business that has distributed more than 265…
Stability History (from a 6:1 boe perspective) 2010 2009 2008 2007 2006 2005 2004 2P reserves (boe/share) 1.20 1.24 1.40 1.36 1.41 1.41 1.39 Avg. Production 373 412 446 436 437 445 447 (boe/d per million shares) Avg. base cash…
Stability History (from an oil perspective) Q1 2011 2010 2009 2008 2007 2006 2005 2004 2P reserves (bbl/share) n/a 0.79 0.77 0.84 0.79 0.82 0.81 0.77 Avg. Oil Production 216 213 211 207 187 198 197 184 (bbl/d per million shares)…
Hedging Strategy Zargon uses hedges as a risk management tool to ensure the funding of dividends and capital programs. Our policies include: Hedging up to 30% of Zargons combined projected oil and natural gas working interest…
2011 Quarterly Guidance Ranges Oil and liquids: 5,600 to 6,100 barrels per day (March 2011 Guidance). - Q1 production rate of 5,893 barrels per day. - Q2 volumes have been significantly impacted by Williston Basin flooding; (eight…
Zargons Corporate Objectives On January 1, 2011, Zargon returned to a corporate structure that targets a steady, but supportable dividend. Target payout levels are ultimately targeting about 35% of cash flow, although initial…
Zargons Steelman Property Production History Steelman Area Continues to Deliver
Steelman Area Frobisher Type Curve Williston Basin 1,000 270 Wells Evaluated 252 Wells Plotted (green) Statistical Type Well (red) Oil Production Rate ( bbl/day ) 100 10 1 0 12 24 36 48 60 Producing Time…
Comparison of Steelman Area Type Curve with Zargon 2010 Actual Results 100.00 Cumulative Oil Produced ( Mbbl ) 10.00 1.00 0.10 0.01 1 10 100 1,000 10,000 Producing Time (Days) This chart shows recent Zargon…
Steelman Type Curve Statistics Williston Basin Steelman Type Curve Analysis (Based on Steelman Field Statistics) First month rate 98 bbl/d 12th month rate 31 bbl/d First year average rate 56 bbl/d Estimated median reserves 85 mbbl…
Elswick / Weyburn Midale Drainage Locations Williston Basin Elswick Zargons Elswick and Weyburn lands provide more than 25 Midale drainage locations defined by 3D seismic, and in many cases, pressure supported by offsetting…
Ralph and Weyburn North Waterflood Properties Williston Basin Ralph Weyburn The Ralph and Weyburn North waterflood projects provide a long term opportunity to enhance waterflood performance and drill Midale drainage wells.…
Spring 2011 Production Challenges Williston Basin
Hamilton Lake Horizontal Multi-Frac Opportunity Alberta Plains North V Per iking me B abi San lity d Tre nd Vi kin gC Sa nd Viking Oil Sand Unit Oil Recovery 15.8 MMbbl Horizontal multi-frac test well (to be…
Hamilton Lake Oil Sand Unit Unit Production History 5,000 100% 90% Viking A 4,000 80% Oil Production Rate ( bbl/day ) 70% Viking B 3,000 60% Oil Cut ( % ) Viking C 50% 2,000 40% 30% 1,000 20% Unit Statistics (Dec…
Hamilton Lake Viking B Unit Multi-frac Horizontal Well Depletion Concept Existing Vertical Well Multi-frac horizontal Reservoir modeling shows that the combination of strong northeast fracture trends and poorly connected…
Jarrow (Killam) Glauconite Oil Development Alberta Plains North 28 Degree API sweet crude Significant waterflood upside Zargon 100% Working Interest Sections 2010 Drilling 2011 Q2-Q3 Locations Followup Locations, 2011 &…
Taber Type Curve Statistics Alberta Plains South 100 Cumulative Oil Produced ( Mbbl ) 10 1 0.1 0.01 1 10 Producing Time ( Days ) 100 1,000 This chart shows recent Zargon drilling activity and the resulting…
Taber Type Curve Statistics Alberta Plains South Taber Type Curve Analysis (Based on Zargon Production Statistics) First month rate 67 bbl/d 12th month rate 45 bbl/d First year average rate 56 bbl/d Estimated median reserves 75…
Little Bow ASP Project Alberta Plains South 15- 15-019W4 15- 15-018W4 High Quality Sandstone Reservoir (Upper Alberta Mannville) Little Bow I Pool 14- 14-019W4 14- 14-018W4 Zargon WI: 100 % (recent acquisitions) 21 API Oil…
Alkaline Surfactant Polymer (ASP) Flooding ASP Uses 3 Chemicals to Recover Bypassed Oil Alkali Alters properties of reservoir rock to increase the efficiency of the surfactant Reacts with oil to form natural surfactants Surfactant…
Taber South Mannville B Pool ASP Flood Little Bow Mannville I Pool ASP Analog 100% Taber South Oil Cut Taber South Oil Production Mannville B Pool Oil Cut ( % ) 3,500 10% OOIP: 43 mmbbl * 3,000 Waterflood recovery 40% OOIP…
I Pool Plans and Follow up ASP Projects Little Bow Area ZAR 15- 15-019W4 15- 15-018W4 W.I. (%) Little Bow I Pool 100 Potential Follow up U&W Unit 68 P Pool P Pool 100 MM Unit 100 Little Bow I Pool C8C/X8X Pools 81 14-…
CAPP Investor Symposium Presentation June 14, 2011 www.zargon.ca
Loading...
