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NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp

Bonavista Energy Corp · Nov 17, 2014 · 133 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 1
    ANALYST DAY November 17, 2014
  2. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 2
    AGENDA 8:30 Introductions Berk Sumen Operational Foundation Jason Skehar Value Proposition Bruce Jensen Wayne Merkel Asset Quality Bruce Jensen Magni Lake Wayne Merkel Colin Ranger Financial Strategy Glenn Hamilton 11:00…
  3. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 3
    INTRODUCTIONS
  4. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 4
    BOARD OF DIRECTORS Bonavista Tenure (years) Keith A. MacPhail, Executive Chairman 17 Ian S. Brown, Independent Director 10 Michael M. Kanovsky, Lead and Independent Director 17 Sue Lee, Independent Director 1 Margaret M. McKenzie,…
  5. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 5
    LEADERSHIP TEAM Bonavista Tenure (years) Jason E. Skehar, President and Chief Executive Officer 15 Glenn A. Hamilton, Senior Vice President and Chief Financial Officer 17 Bruce W. Jensen, Chief Operating Officer 12 Dean M. Kobelka,…
  6. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 6
    TODAYS OBJECTIVES Portray the quality of our assets Demonstrate our execution capabilities Provide a line of sight for continued value creation 7
  7. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 7
    OPERATIONAL FOUNDATION
  8. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 8
    CORPORATE IDENTITY 9
  9. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 9
    THIS IS BONAVISTA FOCUSED EFFICIENT A DECADE OF OPPORTUNITIES 10
  10. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 10
    CORPORATE PHILOSOPHY OPERATIONAL Focus on capital and operational efficiencies Operate our assets Maintain high working interests 11
  11. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 11
    THIS IS BONAVISTA We control our assets: 6,500 kms of 91% of 88% of our pipeline and 70 production is production flows facilities are operated through our facilities operated 12
  12. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 12
    THIS IS BONAVISTA We are focused: 95% of our 1.4 million 95% of our future drilling net acres in forecast locations are our core 2015 E&D in our core areas spending is areas in our core areas 13
  13. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 13
    THIS IS BONAVISTA We are experienced and aligned: 17 years of 12 year average tenure 11% insider operational of our leadership team ownership presence 14
  14. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 14
    BUSINESS PLAN Total return model: +10% Annual shareholder return target Achievable through Reinvesting Distributing 75-85% 20-30% of funds from of funds from operations operations 15
  15. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 15
    CONCENTRATION 16
  16. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 16
    CONCENTRATION Focusing in our core areas: In 2009, MONTNEY 0.4 million net acres of our land was in our core DEEP BASIN areas Today, 1.4 million net acres of our land is in our core areas WEST CENTRAL 17
  17. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 17
    CONCENTRATION Production and reserves: 90,000 450 80,000 400 70,000 350 Production (boe/d) Reserves (mmboe) 60,000 83% of 300 83% of 50,000 production 250 reserves 40,000 in core areas 200 in core areas 30,000 150…
  18. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 18
    CONCENTRATION E&D Spending: 100% 90% 80% E&D Spending (%) 70% 60% 50% 40% 30% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2014 E Core Areas Other 19
  19. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 19
    CONCENTRATION Lower cost production in core areas: 12.00 10.00 Operating Costs (/boe) 8.00 6.00 4.00 2.00 0.00 2008 2009 2010 2011 2012 2013 2014 E Bonavista Core Areas 20
  20. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 20
    EFFICIENCY 21
  21. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 21
    EFFICIENCY Executed our 2013 E&D program with greater efficiency: 18% annual improvement in finding and development costs to 11.95/boe* 35% annual improvement in the cost of adding production to 21,000/boed 19% annual…
  22. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 22
    EFFICIENCY Finding, development and acquisition costs: 16.00 14.00 F&D and FD&A* (/boe) 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2009 2010 2011 2012 2013 2P F&D 2P FD&A * Proved + probable including changes in…
  23. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 23
    EFFICIENCY Cost of adding production: 35,000 30,000 E&D Capital Efficiency* (/boed) 25,000 20,000 15,000 10,000 5,000 0 2009 2010 2011 2012 2013 2014 E * Q4 Trailing twelve month efficiencies used for…
  24. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 24
    EFFICIENCY Recycle ratio: 2.50 2.00 Recycle Ratio* (x:1) 1.50 1.00 0.50 0.00 2009 2010 2011 2012 2013 2P F&D Recycle Ratio 2P FD&A Recycle Ratio * Recycle Ratio = Net Operating Income/F&D (F,D&A) on a…
  25. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 25
    EFFICIENCY Cash costs: 15.00 12.00 Cash Costs* (/boe) 9.00 6.00 3.00 0.00 2009 2010 2011 2012 2013 2014 E * Cash costs include operating, transportation, G&A and interest expenses 26
  26. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 26
    VALUE PROPOSITION
  27. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 27
    PEER GROUP 28
  28. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 28
    PEER GROUP ARC Baytex We view our peer group as Crescent Point being comprised of eight dividend paying intermediate Enerplus exploration and production Lightstream companies Pengrowth Pennwest Peyto 29
  29. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 29
    PEER GROUP PERFORMANCE Sustainability - conservative payout metrics: 180% 160% 140% Total payout ratio target of 120% 100-110%* 100% 80% 60% 40% 20% 0% 2011 2012 2013 2014-2019F BNP Dividend/FFO** BNP Capex/FFO**…
  30. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 30
    PEER GROUP PERFORMANCE Competitive cost structure - cash costs: 30.00 25.00 Cash Costs* (/boe) 20.00 15.00 10.00 5.00 0.00 Bonavista Peer Group * Nine months ended September 30, 2014 31
  31. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 31
    PEER GROUP PERFORMANCE Competitive cost structure - finding, development and acquisition costs: 35.00 3 Year Average FD&A* (/boe) 30.00 25.00 20.00 15.00 10.00 5.00 0.00 Bonavista Peer Group * 2011 -2013…
  32. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 32
    PEER GROUP PERFORMANCE Adding production efficiently: 50,000 45,000 E&D Capital Efficiency* (/boed) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Bonavista Peer Group * Q4/2014E trailing…
  33. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 33
    PEER GROUP PERFORMANCE Recycle ratio: 3 3 Year Average Recycle Ratio* (x:1) 2.5 2 1.5 1 0.5 0 Bonavista Peer Group * 3 year average proved + probable Finding, Development and Acquisition recycle ratio…
  34. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 34
    PEER GROUP PERFORMANCE Natural gas weighting: 100 90 80 % Natural Gas Production 70 60 50 40 30 20 10 0 Bonavista Peer Group * Nine months ended September 30, 2014 35
  35. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 35
    PEER GROUP PERFORMANCE Debt to funds from operations: 4 3.5 3 Debt to TTM FFO* 2.5 2 1.5 1 0.5 0 Bonavista Peer Group * Total debt net of working capital / trailing twelve month (TTM) funds from operations…
  36. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 36
    DRILLING INVENTORY 37
  37. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 37
    DRILLING INVENTORY Highlights include: 1,550 Locations Quantity: greater than 10 years inventory Quality: 78% of inventory in key plays Concentration: 95% in core areas 38
  38. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 38
    DRILLING INVENTORY Increasing inventory in our key plays: Nov 2013 Less 2014 Drills Added Current 1,087 121 198 1,164 39
  39. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 39
    DRILLING INVENTORY Key plays 1,164 locations: West Central Deep Basin Montney 450 400 350 300 Drilling Locations 250 200 150 100 50 424 142 198 105 149 61 85 0 Glauconite Cardium Ellerslie Notikewin/ Falher…
  40. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 40
    DRILLING INVENTORY Significant unbooked upside: West Central Deep Basin Montney 100% 90% 80% 70% 60% 50% 40% 30% 209 32 20% 329 10% 29 16 22 13 8 0% Glauconite Cardium Ellerslie Notikewin/ Wilrich Bluesky Montney…
  41. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 41
    DRILLING INVENTORY Glauconite highlights: 2 R11 R10 R9 R8 R7 R6 R5 R4 R3 R2 R1W5 R28 R27 R26 R25 R24 R23 R22W4 T48 18% booked T47 T46 WESTEROSE Ferrybank/Morningside Current Inventory T45 39 HOADLEY Booked Inventory 7…
  42. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 42
    DRILLING INVENTORY Wilrich highlights: 30% booked Marlboro Current Inventory 37 MARLBORO Booked Inventory 11 CARROT CREEK Carrot Creek Current Inventory 10 unbooked Booked Inventory 0 Ansell/Peco Current Inventory 102…
  43. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 43
    DRILLING INVENTORY Montney highlights: Montney Current Inventory 85 Booked Inventory 13 300 potential locations T88 Montney is virtually unbooked T87 44
  44. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 44
    VALUE CREATION Recycle ratio of key plays: West Central Deep Basin Montney 5 4 Recycle Ratio* (x:1) 3 2 1 0 Glauconite Cardium Ellerslie Notikewan/Falher Wilrich Bluesky Montney * Recycle ratio is the year…
  45. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 45
    VALUE CREATION Payout of key plays: West Central Deep Basin Montney 30 25 Payout* (months) 20 15 10 5 0 Glauconite Cardium Ellerslie Notikewan/Falher Wilrich Bluesky Montney * Based on single well type…
  46. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 46
    VALUE CREATION Internal rate of return of key plays: West Central Deep Basin Montney 80 70 60 50 IRR* (%) 40 30 20 10 0 Glauconite Cardium Ellerslie Notikewan/Falher Wilrich Bluesky Montney * Based on single…
  47. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 47
    VALUE CREATION On-stream cost IP12** of key plays: West Central Deep Basin Montney 25,000 On-stream Costs* (/boed) 20,000 15,000 10,000 5,000 0 Glauconite Cardium Ellerslie Notikewan/Falher Wilrich Bluesky…
  48. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 48
    FIVE YEAR PLAN 49
  49. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 49
    FIVE YEAR PLAN Foundation for growth: ELLERSLIE 29 (26.5 net) wells / 130 million spending MONTNEY 39 (39.0 net) wells / 280 million spending CARDIUM 38 (34.6 net) wells / 120 million spending BLUESKY 42 (29.8 net) wells / 160…
  50. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 50
    FIVE YEAR PLAN Production growth: 120,000 100,000 Production (boe/d) 80,000 60,000 40,000 20,000 0 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Base Other Glauconite Spirit River Bluesky Cardium Ellerslie…
  51. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 51
    FIVE YEAR PLAN Extensive drilling inventory: Previous 5 year plan Current 5 year plan Current Inventory Glauconite 316 265 424 Cardium 87 38 142 Bluesky 42 42 61 Spirit River Group 115 189 254 Ellerslie 138 29 198 Montney 49 39 85 TOTAL…
  52. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 52
    FIVE YEAR PLAN E&D spending for growth: E&D spending of 3 billion over five years 800 700 600 500 ( millions) 400 300 200 100 0 2015 F 2016 F 2017 F 2018 F 2019 F Support Glauconite Cardium Bluesky Spirit River…
  53. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 53
    ASSET QUALITY
  54. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 54
    WEST CENTRAL 55
  55. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 55
    WEST CENTRAL Multi-zone potential: Belly River CARDIUM Second White Specs Viking Notikewin FALHER GLAUCONITE ELLERSLIE Rock Creek Elkton 845 locations in key plays 56 File: File: Analyst File: AnalystDay…
  56. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 56
    WEST CENTRAL Production growth: Generates free cash flow of 1 billion over next five years 70,000 700 60,000 600 Capital, NOI* ( millions) 50,000 500 Production (boe/d) 40,000 400 30,000 300 20,000 200 10,000…
  57. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 57
    WEST CENTRAL Investing in infrastructure: 2014 Compressor Sites Existing Compression +10mmcf/d 2014 Highlights 44 mmcf/d capacity added in three new compressor sites 40km of 8 or greater pipeline +24mmcf/d 2015 Development…
  58. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 58
    WEST CENTRAL Revenue characteristics and market certainty: Natural Gas: Average residual gas heat value of 1,052 Btu/scf (39.4 MJ/m3) Primarily sweet natural gas Minimal transportation restrictions Transportation cost to AECO hub…
  59. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 59
    GLAUCONITE 60
  60. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 60
    GLAUCONITE R11 R10 R9 R8 R7 R6 R5 R4 R3 R2 R1W5 R28 R27 R26 R25 R24 R23 R22W4 T48 T47 F L FF F F T46 WESTEROSE A FF AF F F FF C F G FL FF FF T45 G F F 69 wells planned in 2014 FA FF F F HOADLEY FF F FF…
  61. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 61
    GLAUCONITE Growth in 2014: 30,000 28,000 26,000 24,000 Production (boe/d) 22,000 20,000 18,000 16,000 14,000 12,000 10,000 2013 - 10 2014 - 01 2014 - 04 2014 - 07 2014 - 10 62
  62. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 62
    GLAUCONITE Type curve: 700 Current Turbo Capex ( millions) 3.1 3.1 600 IP12 (boe/d) 253 283 /boed 12,250 10,950 500 EUR (mboe) 465 522 Production (boe/d) IRR (%) 63 65 400 F&D (/boe) 6.65 5.94 P/I 1.1 1.2 300 Recycle…
  63. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 63
    GLAUCONITE Completion cost efficiency: 140,000 14 120,000 12 Completion Cost (/interval) Interval placed per well 100,000 10 80,000 8 60,000 6 40,000 4 20,000 2 0 0 2009 2010 2011 2012 2013 2014 YTD…
  64. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 64
    GLAUCONITE Performance of slickwater completions: 7,000 Comparison to foam fracs: IP1 30-40% less Raw Gas Production (mcf/d) 6,000 IP12 same to 10% greater 5,000 EUR 10 to 15% greater 4,000 3,000 2,000 1,000 - 1…
  65. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 65
    GLAUCONITE Extended reach results: Well Cost F&D /boed Wells ( millions) (/boe) (IP3) Hoadley Trend 8 4.8 5.71 5,850 Improvement (1.0) 22% 20% Strachan Trend 2 8.7 7.60 13,200 Improvement (2.1) 33% 5% 50 additional…
  66. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 66
    GLAUCONITE - STRACHAN R11 R10 R9 R8 R7 R6W5 BNP Producer Inventory growth 2014 Well 2015 Locations with continued T39 Inventory success T38 Drilled one well in 2014 Three wells in 2015 69 locations in the…
  67. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 67
    GLAUCONITE - STRACHAN Two mile type curve: Type Curve Capex ( millions) 8.0 IP12 (boe/d) 559 /boed 14,300 8,000 EUR (mboe) 924 7,000 IRR (%) 54 Raw Gas Production (mcf/d) F&D (/boe) 8.66 6,000 P/I 1.0 5,000 Recycle Ratio…
  68. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 68
    GLAUCONITE Foundation of our five year production growth: 40,000 Grows to 35,000 35,000 boe/d 30,000 Production (boe/d) 25,000 20,000 15,000 10,000 5,000 0 2009 2010 2011 2012 2013 2014 E 2015 F 2016 F 2017 F 2018…
  69. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 69
    GLAUCONITE Cash generation: Generates free cash flow of 1 billion over next five years 400 350 300 250 ( millions) 200 150 100 50 0 2009 2010 2011 2012 2013 2014 E 2015 F 2016 F 2017 F 2018 F 2019 F NOI (…
  70. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 70
    SPIRIT RIVER 71
  71. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 71
    SPIRIT RIVER FALHER Morningside area: R4 R3 R2 R1W5 R28 R27 R26 R25W4 T47 T47 Recent T46 T46 performance WESTEROSE attracts capital T45 T45 42 miles T44 T44 Drilled 8 wells in Falher since T43 MAIN CHANNEL…
  72. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 72
    SPIRIT RIVER FALHER ANALOG 1300m Hz well Possible modern day analog to the Falher Horizontal well connecting multiple point 10 Km bar reservoirs MEANDER BELT Rio Negro, Patagonia, Argentina Entire floodplain (orange)…
  73. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 73
    SPIRIT RIVER - FALHER Morningside area: 4,000 3,500 3,000 Production (boe/d) 2,500 2,000 1,500 1,000 500 0 2013 - 06 2013 - 09 2013 - 12 2014 - 03 2014 - 06 2014 - 09 74
  74. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 74
    SPIRIT RIVER - FALHER Morningside Falher type curve: Type Curve 900 Capex ( millions) 3.0 800 50 bbls/mmcf IP12 (boe/d) 303 of liquids /boed 9,740 700 EUR (mboe) 484 Production (boe/d) 600 IRR (%) 71 500 F&D (/boe) 6.11…
  75. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 75
    SPIRIT RIVER - FALHER Strachan Falher channel trend: Prolific channel OCHIESE Falher Hz production New play in Strachan analogous to OChiese Falher One well planned in 2015 STRACHAN 28 locations in our prospect inventory…
  76. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 76
    SPIRIT RIVER - FALHER STRACHAN FALHER OCHIESE FALHER MORNINGSIDE FALHER 00/16-21-038-10W5/0 00/13-23-044-10W5/0 00/15-30-042-27W4/0 27 m 28 m 10 m 3250 m TVD 2450 m TVD 1650 m TVD 35,000 kpa Offsetting Industry Well at…
  77. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 77
    SPIRIT RIVER - FALHER OChiese Falher production: 7,000 6,000 Raw Gas Production (mcf/d) 5,000 4,000 3,000 2,000 69 wells 1,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Months on…
  78. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 78
    DEEP BASIN 79
  79. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 79
    DEEP BASIN Multi-zone potential: R23 R22 R21 R20 R19 R18 R17 R16 R15 R14 R13 R12 R11 R10 R9 R8 R7W5 T59 17m17m 21m T58 T57 Belly River T56 Cardium Second White Specs Viking T55 NOTIKEWIN FALHER T54…
  80. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 80
    DEEP BASIN Production growth: 45,000 Building a 450 40,000 new core 400 area 35,000 350 Capital, NOI ( millions) Production (boe/d) 30,000 300 25,000 250 20,000 200 15,000 150 10,000 100 5,000 50 0 0 2009…
  81. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 81
    DEEP BASIN Operating efficiency: 14.00 50% cost reduction in 12.00 five years Operating Costs (/boe) 10.00 8.00 6.00 4.00 2.00 0.00 2009 2010 2011 2012 2013 2014 E 82
  82. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 82
    DEEP BASIN Investing in infrastructure: Pine Creek C: 18 mmcf/d Processing flexibility W Q: 15 mmcf/d through connectivity McLeod C: 14 mmcf/d Q: 6 mmcf/d W Marlboro W C: 60 mmcf/d Q: 35 mmcf/d Five operated processing…
  83. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 83
    DEEP BASIN Revenue characteristics and market certainty: Natural Gas: Average residual gas heat value of 1,111 Btu/scf (41.6 MJ/m3) Sweet natural gas Firm transportation contracts in place Transportation cost to AECO hub is…
  84. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 84
    SPIRIT RIVER 85
  85. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 85
    SPIRIT RIVER WILRICH C F FAGCF FF F F F Marlboro F F FF GG A FG MARLBORO 12 wells drilled since 2012 Wilrich Deep Basin CLine F F 4 wells drilled in 2014 F 3 wells planned in 2015 CARROT CREEK Ansell 18…
  86. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 86
    SPIRIT RIVER WILRICH Productivity trends at Ansell: VG F F V F G FF V C A FF C F V V V F C VV V VV VV Discovering multiple V A C A FF FF AF F V F FFV A V G V V V V F A C C C V V F V VF F F permeability trends F…
  87. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 87
    SPIRIT RIVER - WILRICH New well production, 15-31-050-18W5: 12,000 36 10,000 30 Raw Gas Production (mcf/d) Casing Pressure (mPa) 8,000 24 6,000 18 4,000 12 High productivity potential of 2,000 6 Wilrich at Ansell…
  88. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 88
    SPIRIT RIVER - WILRICH Rapid production growth at Ansell: 8,000 7,000 6,000 Production (boe/d) 5,000 4,000 3,000 2,000 1,000 0 2013 - 11 2014 - 01 2014 - 03 2014 - 05 2014 - 07 2014 - 09 2014 - 11 89
  89. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 89
    SPIRIT RIVER - WILRICH Ansell Wilrich type curve: Type Curve 800 Capex ( millions) 5.7 700 IP12 (boe/d) 425 /boed 13,400 600 EUR (mboe) 850 Production (boe/d) IRR (%) 57 500 F&D (/boe) 6.71 400 P/I 1.2 Recycle Ratio 3.8…
  90. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 90
    SPIRIT RIVER - WILRICH Completion design evolution: 0.90 3.0 Proppant Intensity (tonnes/meter) 0.80 2.5 Completion Cost ( million) 0.70 2.0 0.60 1.5 0.50 1.0 2014 Q3/4 2014 Q1 0.40 0.5 2013 0.30 0.0…
  91. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 91
    SPIRIT RIVER - WILRICH Improving cost trends: 7.0 6.0 5.0 ( millions) 4.0 3.0 2.0 1.0 0.0 2013 2014 Q1 2014 Q2 2014 Q3 Drill Completion Equip &Tie-in 92
  92. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 92
    SPIRIT RIVER - WILRICH Investing in infrastructure: R19 R18 R17 R16W5 W T53 T53 03-11-053-18W5 Gas Plant T52 T52 2014 Q1: Commissioned 35 mmcf/d compressor site Constructed 27.5 km 10 and 6 sales lines 2014 Q4: T51…
  93. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 93
    DEEP BASIN - NOTIKEWIN / FALHER Extensive channeling Multiple stratigraphic levels of channels: Notikewin (upper and lower) Falher (upper and lower) Notikewin channels visible on 3D seismic A B Spudding first Notikewin…
  94. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 94
    SPIRIT RIVER - NOTIKEWIN Offsetting Ansell area production: 9,000 Prolific well performance 8,000 in the area Raw Gas Production (mcf/d) 7,000 6,000 5,000 4,000 17 well average 3,000 2,000 1,000 0 1 2 3 4 5 6 7…
  95. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 95
    SPIRIT RIVER Combined West Central and Deep Basin: 45,000 40,000 35,000 Production (boe/d) 30,000 25,000 20,000 15,000 10,000 5,000 0 2012 2013 2014 E 2015 F 2016 F 2017 F 2018 F 2019 F Base Production…
  96. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 96
    SPIRIT RIVER Combined West Central and Deep Basin: 450 400 350 300 ( millions) 250 200 150 100 50 0 2009 2010 2011 2012 2013 2014 E 2015 F 2016 F 2017 F 2018 F 2019 F NOI ( millions) E&D Spending (…
  97. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 97
    BLUESKY 98
  98. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 98
    DEEP BASIN - BLUESKY Healthy condensate yield: Drilled 30 wells (57% F F F F F V VF F V V V operated) since 2010 F F F Drilled 9 wells in V V 2014 5 wells planned in 2015 F F F V V 61…
  99. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 99
    DEEP BASIN BLUESKY Type curve: 800 Type Curve Capex ( millions) 5.0 700 IP12 (boe/d) 382 /boed 13,625 600 EUR (mboe) 545 Production (boe/d) 500 IRR (%) 54 F&D (/boe) 9.17 400 P/I 0.8 300 Recycle Ratio 3.1 Payout…
  100. NOVEMBER 2014 ANALYST DAY – Bonavista Energy Corp – slide 100
    DEEP BASIN - BLUESKY Outperforming area competitors: 4,500 4,000 3,500 5 wells Raw Gas Production (mcf/d) 3,000 2,500 7 wells 10 wells 2,000 4 wells 1,500 1,000 Industry 1 Industry 2 500 Industry 3 Bonavista…

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