The Southern Pacific Strategy FOCUSED: We develop and produce bitumen and heavy oil using horizontal wells and steam. INDEPENDENT: We control and operate 100% of our production and 87% of our lands, allowing us to develop at a…
STP Overview Common Shares (Sept. 30, 2012) Trading Symbol TSX: STP Shares outstanding basic 397 Shares outstanding fully diluted 425 Insider Ownership fully diluted 4% Average daily trading volume (last 6 mo avg.) 1.0 million…
STP Reserves and Resources (effective June 30, 2012) 344 350.0 Consistent Growth in all reserve categories over the past 3 years 300.0 249 All reserves are split between STPSenlac and 250.0 STPMcKay Liquids (mmbbl) 2009…
Strategic Assets Alberta: 402 sections of oil sands leases with 87% average working interest (224,312 net acres) Saskatchewan: Average of 4,000 barrels per day (bbl/d) of 100% working interest heavy oil Refer to slide 27 and 28…
STP-Senlac Thermal Project Phase K to be drilled in Q42012 STP owned and operated for 2.5 years Average Production Rate approx. 4,000 bbl/d Average SOR = 2.5 Experienced operations personnel One pad of 2-3 SAGD well pairs…
STP-McKay Thermal Project 45 km NW Ft. McMurray 10.5 section project area 100% STP working interest Phase 1 First Steam July 1, 2012 Phase 1 Design: 12,000 bbl/d oil STP Lands +33,600 bbl/d steam Suncor MacKay SAGD Project…
STP-McKay Thermal Project (commissioned June, 2012) Construction Camp Wellpad 102 (Temporary) Wellpad 101 Operations Camp Wellpad 103 (well not drilled yet) Central Process Facility 29 km Road Refer to…
STP-McKay: First Steam Attained First steam to well pairs commenced July 1st Steam to circulate for 3-4 months and warm up reservoir around the well pairs Oil production will start after warm up, and ramp up to design capacity…
STP-McKay: Central Process Facility Facility is running well On Time Load Factor since July 1, 2012 is greater than 99% Generating all electrical power through 2 cogens, a 3rd on standby Both steam generators running Emulsion…
SAGD Start-up Phases Current Phase Circulation: mainly STPMcKay Circulation: SemiSAGD: SAGD: steam conductive heat, communication steam injection in injection in top well, steam is circulated established top well (convective bottom…
Bitumen Shows Occurring in Circulation Phase Although still in the initial circulation phase, bitumen returns are being observed at the plant Premature communication with injector/producer has not occurred to date on any of the well…
STP-McKay: Gulf Coast by Rail Market Solution 5 year deal 4,500 km by rail Terminals in Lynton, AB, and Natchez, MS Reduces diluent requirements Improved netbacks Secure access to market Refer to slide 27 and 28 for…
Rail Provides Attractive Netbacks Historical pricing fundamentals have shown rail option to U.S. Gulf Coast provides stronger netbacks than a pipeline option to U.S. Midwest Dilbit Price 80.00 Better overall Gulf Coast 70.00 60.00…
STP-McKay: Phases 1 and 2 Layout (circa 2016) Well pads Phase 2 18,000 bbl/d Phase 1 + SOR = 3.5 Expansion 18,000 bbl/d SOR = 2.8 Continuous pay fairway Original footprint of Phase 2 site STP-McKay Phases 1 and 2 will…
STP-McKay Phase 1 Expansion: Plot Plan Additional equipment can all be situated on original plant site, minimizing overall footprint Expanded Boiler Expanded Water Additional Steam Feed Water Treatment Generation Additional…
STP-McKay Phase 1 Expansion: Capital Cost Cost per design Capital Budget barrel ( million) (/bbl) Phase 1 Expansion (6,000 bbl/d) 150 25,000 costs include inflation escalation & 6 ( 36% less than original construction)…
STP-McKay Phase 1 Exp. & Phase 2 Schedule Application Approval Engineering & Procurement Phase 1 Expansion Construction First Steam First Oil 6,000 bbl/d Engineering & Procurement Construction Phase 2 First…
STP-McKay: Full Bitumen Exploitation Plan Conduction and cyclic steam SAGD injector SAGD producer Infill horizontal well Refer to slide 27 and 28 for cautionary statements about forwardlooking information. 21
Existing Projects: Defined Growth Forecast represents real projects that are on production, being constructed or in the application process First oil forecasts: STP-McKay Phase 1: Q4 2012 (12-18 months to full capacity) STP-McKay…
STP-McKay: Future Upside STP-McKay 100% working interest in Potential Thermal Project Expansion area 59 sections (environmental boundary background work underway) STP has full-time operations in this area Phase 1 Other…
STPs Upside: Additional Oil Sands Leases Anzac Hangingstone 14 coreholes 29 coreholes 2D seismic, ERT 2D seismic 75 Sections, of which 19 non- 66 Sections prospective sections will be reclaimed by AB Govt under LARP Ells…
Summary of STPs Recent Financing Activities STPMcKay 275 million USD construction 2nd lien term loan STPMcKay ramp up STPSenlac and approval of purchase STPMcKay STPMcKay Phase 1 Expansion 108.4 million 173 million First Steam…
2012/13: An Exciting Fiscal Year for STP Only new SAGD Project starting up in Alberta for 2012 STP-McKay Thermal Commissioning of facility complete and circulation of steam commenced in July 2012 Project Warm up of wells and convert to…
Contact Information Suite 1700, 205 - 5th Ave. SW Calgary, AB T2P 2V7 Phone: 403-269-5243 Fax: 403-269-5273 Email: infoshpacific.com www.shpacific.com TSX:STP For more information: Byron Lutes, President & CEO Ron Clarke, COO…
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