Investor Presentation: Repositioned for Cardium Light Oil Production Growth May 13, 2014 www.andersonenergy.ca
3 Why Invest in Anderson 1. Focused Development on Cardium Light Oil in Central Alberta Focus is on growing light oil production - objective is to have production weighting exceed 50% oil & NGL through Cardium light oil horizontal…
4 Why Invest in Anderson 4. First Quarter 2014 Results Funds from Operations 5.5 million Production 2,958 BOED (39% oil & NGL) Operating Netback 34.51/BOE Operating Expenses 13.28/BOE, Average Royalty of 8.9% 5. 2014 Guidance…
5 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes(1) 373,500 shares/d Management & Directors own (Past 12 months) approximately: Shares Outstanding(1) 172.5 million basic 10% of…
6 Winter Program Results Seven 100% working interest wells drilled in Willesden Green field evaluating four different land blocks. All completed with slick water frac technology. Average IP30 of 459 BOED (60% oil & NGL). The best…
7 Winter Program Results One of the seven wells came on-stream in December 2013. The remaining six wells came on-stream in the first quarter of 2014 and the drilling results have positively impacted Q1 and Q2 2014 production and…
8 Horizontal Well Technology Update In the recently completed drilling program, the Company optimized the trajectory of the horizontal well through the Cardium formation to obtain better well performance. The Company experimented…
9 Shallow Gas Optimization Update All operated shut-in gas that could be returned to production was brought back on-stream in the first quarter of 2014 in response to higher natural gas prices. In the first quarter of 2014, the…
10 GLJ Interim Reserves Report Effective April 30, 2014 GLJ Petroleum Consultants (GLJ) completed a modified corporate look-ahead analysis effective April 30, 2014 (the GLJ Interim Report). See MD&A for the three months ended March…
11 GLJ Interim Reserves Report Effective April 30, 2014 GLJ recognizes 31% of Companys drilling inventory as reserves. Total Company NPV 10 P&P was 132.8 million. Management estimates a land value of 3.4 million for its 27,988 net…
12 Q1 2014 Results Funds from operations of 5.5 million in Q1 2014 compared to negative funds from operations of 0.3 million in Q4 2013. Production of 2,958 BOED (39% oil & NGL) in Q1 2014 compared to 2,112 BOED (26% oil & NGL) in…
13 Financing Our Growth Plan 2014 Capital Program Funded with Cash, Cash Flow and Bank Lines Bank Debt(1) nil drawn under bank lines 28 million in available bank lines (increasing to 31 million in May 2014) Convertible Debentures…
14 Managing Our Risk Hedging Philosophy Hedge produced oil and natural gas volumes to protect capital program and reduce cash flow volatility Continue to evaluate the merits of further price management strategies as market…
15 Operations Overview Targeting 50% of total production being oil and NGL with Cardium horizontal drilling 2014 Production Guidance 2014 estimate: 3,200 BOED (36% oil and NGL) ALBERTA 2014 exit: 3,700 BOED (42% oil and NGL) Q4…
16 Operations Overview Cardium horizontal drilling focused on the halo or T50 periphery of major Cardium fields The best wells are positioned in good quality rock away from potential pressure T45 depletion and old…
17 Operations Overview Evolution of Cardium Drilling & Completion Practices Impact on Costs and Productivity 7,500 Slickwater Fracs (7 Slickwater Fracs (7 500 wells) Feb-2012 to Q1- wells ) Q4-2013 to Q1- 2013 2014 6,750 LEF Fracs…
18 Operations Overview Slickwater Fracs The Results Speak For Themselves Anderson Cardium Slickwater vs Non Slickwater Averages 1200 1000 Non Slickwater Average Slickwater Average Production (boed) 800 600 400…
19 Operations Overview Slickwater Frac Stimulation Carrier fluid is like soapy water with no gellant and hence the term slickwater. Both broad industry and Anderson specific data indicates slickwater fracs result in significant…
20 Operations Overview Continuing to Keep Drilling & Completion Costs Low Local Cardium HZ Well Average Historical Drill Costs 4.0 3.5 3.0 2.5 MM 2.0 1.5 1.0 0.5 0.0 X Y Z YY ZZ Anderson Company (data source Cdn…
21 Operations Overview Continuing to Keep Drilling & Completion Costs Low Local Cardium HZ Well Average Historical Completion Costs 2.5 2.0 1.5 MM 1.0 0.5 0.0 X Y Z YY ZZ Anderson Company (data source Cdn…
22 Operations Overview Light Oil Horizontal Locations May 12, 2014 Gross Net (1) Area Locations Locations Willesden Green Cardium 81 58.3 West Pembina/Buck Lake Cardium 26 7.7 Mannville/Belly River 8 7.3 TOTAL DRILLABLE…
23 Operations Overview Second White Specks Emerging Light Oil Opportunity Second White Specks (SWS) is the source rock for the Cardium and is situated 100 metres deeper than the Cardium. Oil quality and hydrodynamic pressure regime…
24 Summary Q1 2014 results include 5.5 million in funds from operations, 2,958 BOED (39% oil & NGL) of production and an operating netback of 34.51/BOE. Anderson Energy has recently completed a very successful winter drilling…
25 Summary The Companys drilling plan from Q2 2014 to Q2 2015: 15 gross (12.6 net) Cardium, Mannville and Long Reach Cardium horizontal oil wells. The Company has a business plan that will pursue growth of its asset base and cash…
www.andersonenergy.ca Head Office Contact Information 2200, 333 7 Avenue SW Brian H. Dau Calgary, Alberta T2P 2Z1 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
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