Glacier Montney Outperformance Improves Capital Efficiencies, Enables Lower Capital and Maintains Future Production Growth. Highly Efficient 2014 Reserve Additions Reaffirms High Quality Glacier Asset. Investor Presentation TSX /…
ADVANTAGE: AT A GLANCE Canadian Pure Play Montney Producer Listed on TSX and NYSE AAV TSX 52-week trading range 4.51 - 7.85 Shares Outstanding (basic) 170.3 million Glacier Q4 2014 production 134 mmcfe/d (22,352 boe/d) Market…
FOCUSED ON MONTNEY GROWTH & VALUE CREATION World Class Montney Asset Growth Plan & Operational Financial Excellence Strength 2015-2017 Development Plan 22% Average Annual Production Growth 245 mmcfe/d in 2017 (40,830…
GLACIER OUTPERFORMANCE IMPROVES CAPITAL EFFICIENCIES Growth Maintained Improved Well with Lower Capital Performance 110 Million (1) Reduction in 2015 Capital Expenditures Industry Leading Low Cost 18% (1) 2015 Annual Production…
2015 CAPITAL PROGRAM HIGHLIGHTS Production Growth Unchanged 36% Increase from 135 mmcfe/d to 183 mmcfe/d in July 2015 18% Annual production growth (2015/2014) Standing Initial Well Productivity available now to support 2015 production…
PLAN GROWTH MAINTAINED WITH 150 MILLION LOWER CAPITAL Production Profile 275 245 mmcfe/d Plan Summary 2015 to 2017 (1) Average Daily Production (mmcfe/d) 250 205 mmcfe/d 225 245 mmcfe/d (40,830 boe/d) in 2017 200 183…
2015 THROUGH 2017 GROWTH PLAN PRICE SENSITIVITY Downside gas price mitigation while retaining torque to upside 7
GROWTH PLAN LEADS TO SIGNIFICANT FREE CASH FLOW IN EARLY 2017 300 Cash flow significantly exceeds 245 mmcfe/d 3.50/gj generates maintenance capital each year 130 million free annual cash flow 250 200 Final Capital required to…
Montney Only Focus Industry Leading Low Operational Well Cost Outperformance Performance Structure 100% Owned Facilities 9
FOCUSED ON MONTNEY DEVELOPMENT AT GLACIER Current development at Glacier including dry and liquids rich gas drilling Progress Glacier future drilling inventory 1,000 100% owned locations 9 net Montney Glacier Glacier Gas New…
INDUSTRY LEADING COST STRUCTURE & MARGIN Junior E&P 2015e Cost Structure Intermediate/Mid Cap Natural Gas Producers Ranked by Margin (including distributions) Advantages full cycle margin is among the top Montney producers…
HIGHLY EFFICIENT 2014 MONTNEY RESERVES ADDITIONS 321% Reserves Replacement (1) 803% Growth 2P Reserves 33% Increase in PDP (2) reserves to 279 Bcfe 11% Increase in Proven reserves to 1.2 Tcfe 6% Increase in Proven plus Probable…
UPPER AND LOWER MONTNEY WELL PERFORMANCE Recent wells completed with slick water and more frac stages are outperforming expectations. No 2014/2015 wells have been brought on-production to date. - - - Budget Type Curve (IP30 6.9…
2013 SLICKWATER WELLS OUTPERFORM LONG TERM PRODUCTION EXPECTATIONS Recent Upper and Lower Montney wells completed with slickwater fracs are outperforming longer term production expectations. Graph illustrates production from 21…
(1) EXCEPTIONAL UPPER MONTNEY WELL ECONOMICS Upper Montney Dry Gas (2) Recent average Upper Montney well performance exceeding 7 mmcf/d IP30 (3) (1) Management estimates. NPV 10% pre-tax (2) (3) Based on 5.5 million…
(1) EXCEPTIONAL LOWER MONTNEY WELL ECONOMICS Lower Montney at 11 bbls/mmcf C3+(2) Recent Lower Montney wells are at or above 7 mmcf/d IP 30 AECO Gas Price /mcf (3) (1) Management estimates. NPV 10% pre-tax (2) Based on 5.8…
EAST GLACIER CONTAINS HIGHER MIDDLE MONTNEY LIQUID CONTENT Middle Montney wells to date Glacier C5+ 57 illustrate higher liquid content from deg API west to east across Glacier 26 57 31 63 30No Wells Drilled bbl/mmcf 10…
IMPROVING LIQUIDS RICH MIDDLE MONTNEY WELL PERFORMANCE AT GLACIER New 2013 12-2 well started Middle Montney wells have sequentially production at restricted rate of 9.5 demonstrated improved productivity as mmcf/d. Currently…
STRONG EAST GLACIER MIDDLE MONTNEY WELL (1) ECONOMICS Middle Montney at 50 bbls/mmcf C3+ (2) Recent wells are exceeding Budget Type Curve of 4 mmcf/d IP 30 (3) (1) Management estimates. NPV 10% pre-tax (2) (3) Based on…
PENTASTACK DEVELOPMENT WITH DECADES OF DRILLING INVENTORY AT GLACIER Five Development Intervals Containing 1,000 Future Locations after 2017 292 undeveloped locations booked in Dec 31, 2014 Reserve Report 65% of unbooked future…
GLACIER 100% OWNED GAS PLANT & PIPELINE ACCESS Glacier Gas Plant Positioned for Production Ramp-up 400 mmcf/d pipeline capacity to TCPL meter station in place Expansion to 250 MMcf/d Dry and Liquid Gas Processing Capability…
2015 GUIDANCE 2015 Guidance(1) Average Production (mmcfe/d) 150-160 % Annual Production growth 18% Exit Production (mmcfe/d) 180-190 Royalty Rate (%) 4.5% to 5.5% Operating costs (/mcfe) 0.32 to 0.37 Capital Expenditures (…
ADVANTAGE SUMMARY: GROWING OUR MONTNEY AT GLACIER Focused on World Class Glacier Montney development Improved capital efficiencies lowers capital with unchanged production growth 2015 through 2017 Plan Grows Production to 245 mmcfe/d…
APPENDIX 25
FULLY FUNDED GLACIER GROWTH PLAN DETAILS: 22% ANNUAL AVERAGE PRODUCTION GROWTH FOR 2015 TO 2017 Development Plan (1) Production Profile 2014 2015 2016 2017 275 245 mmcfe/d Completed Current Estimate Estimate Average Daily…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics 27
TRACK RECORD OF OPERATING PERFORMANCE 0.50 472,400/frac stage 77% Reduction in cost per frac in Upper Montney Production Growth to 135 mmcfe/d & Average number of frac stages from 7 to 17 Completion Costs/Frac (MM/frac)…
2012 CORE AND COMPLETION STUDIES: INCREASED RESOURCE AND IMPROVED WELL RESULTS Core study determined original density porosity logs have to be re- calibrated IP30s on open hole Re-calibration aligned log to actual wells improved by…
GLACIER DRILLING ECONOMICS AND 2P RECOVERIES PER INTERVAL ( millions unless otherwise indicated) Glacier Drilling Economics PVs 10% Discount(1) Middle Montney AECO C natural gas price Upper Montney Layer 1(6) Lower Montney Layer…
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