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GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd.

Pace Oil & Gas Ltd. · Jun 25, 2012 · 35 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. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 1
    BUILDING A TOP TIER ENERGY COMPANY, ADDING MORE OIL, BUILDING UP VALUE. GHS100 Conference June 2012 An Intermediate-Sized Real Growth Company Low Risk Oil Development Robust at Low Prices
  2. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 2
    Corporate Overview Strong Real Growth Top tier growth increasing oil weighting drives cash flow Strong Performance Metrics Best in Class Operating results Increased oil weighting Op costs reduced Execution Efficiency Low finding…
  3. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 3
    Corporate Highlights Current March 31, 2012 Basic Shares Outstanding (mm) 47.2 FD Shares Outstanding (mm) 50.7 Bank Debt (mm) 168 Net Debt (mm) 213 Credit Facility (mm) (1) 300 Proved Reserves (mmboe) (2) 44.4 2P Reserves (mmboe)…
  4. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 4
    Corporate Growth Strategy Near Term (1-2 years) Exploit and develop existing oil assets Oil Focused maintain Gas option Explore and develop oil resource plays in inventory Identify new oil resource plays/concepts Maintain/Rank best…
  5. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 5
    Oil Growth Drives Production Increase 16,000 Gas (boe/d) Oil+NGL (bbls/d) 14,262 14,557 14,141 14,205 14,000 13,558 12,403 13,089 Total production up 12,000 over 48% from Q1 9,808 10,271 2010 10,000 Oil production up 8,000…
  6. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 6
    2011 Reserves Breakdown Reserves by Product Reserves by Category Net Present Value by Product (boe6:1, P+P) (, NPV 10% Disc) (, P+P, 10% Disc) NGL NGL 23% Gas 2% 2% Prob 23% Gas 50% 14% 63% PDNP PDP Oil PUD Oil 48%…
  7. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 7
    Pace Underlying Value NGL Gas 2% 23% Proved PV10 13.85 / share Each common share owns Probable PV10 4.10 / share 1.48 boe of reserves 2P PV10 17.95 / share (0.71 bbl of oil) Oil 75% Total Proved 2011 Net Asset Value -…
  8. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 8
    Pace Delivers Low Finding Costs Year / Year 2011 2010 Proved Proved Proved Proved Plus Plus boe Probable Probable F&D Costs 16.17 17.04 12.00 17.20 A&D Costs 23.26 7.36 20.03 14.93 FD&A Costs (including 16.09 17.36 17.81 15.39…
  9. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 9
    Low Finding Costs with Strong Oil Additions 90 90 2011 2010 WFE 80 LEG 80 70 70 BNE 60 60 CKE LEG TP F&D (/boe) TP F&D (/boe) 50 TT 50 POU PBN CPG 40 CPG 40 NVA PXX WFE POU PBN 30 BTE 30 NGL PGF CQE CLT NVA…
  10. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 10
    Increased Liquids Increases Netbacks/Cash Flow 90% 80% 2012e % Liquids Steady growth in liquids 70% weighting compared to 60% peers 50% 40% 30% 20% Increased operating 10% 0% efficiencies & oil growth deliver…
  11. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 11
    Top Quality Reserves Oil Weighted 30 PDP Oil & NGLs 25 20 Large and growing oil mmbbls 15 reserves are low risk 10 Proved Developed 5 Producing - 100% 90% Value Oil % of TP 80% 70% 60% 50% 40% Large Proved…
  12. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 12
    Decreasing Op Costs & Increasing Op Netback Operating Costs/boe Operating Netbacks/boe 24.11 24.18 20.77 20.40 19.68 19.55 17.24 16.57 15.21 14.99 15.20 13.81 13.51 13.84 13.20 13.38 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3…
  13. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 13
    Operating Cost Reduction & Solid Oil Weighted Reserves with Low Decline 50% % change in Opex 2010 to 2011 40% 17% operating cost 30% 20% 10% reduction while 0% increasing oil -10% production -20% 45% Base Decline % Large…
  14. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 14
    Significant Upside & Visible Long Term Growth Areas Key Attributes High Working Interest Operational Control Play Type Project Gross Net Wells Capital Operated MM Wells Southern Glauconite 45 20 18.4 Alberta Lithic Pekisko…
  15. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 15
    Southern Alberta Glauconite & Mannville Oil Plays R20W4 R15W4 Key Attributes Current production: 4,800 boe/d (44% oil) 2,100 bbls/d oil Total Acreage Net 312,000 - 488 sections T15 2011 Program Successful Oil Drilling Oil…
  16. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 16
    Southern Alberta Drill Economics R19W4 R17W4 Play Type Curve 500 T14 450 Type Curve 400 Average 350 300 BOE/D 250 200 150 100 50 0 0 12 24 Months D,C, Equip 1.9 mm T12 Production, boe/d (IP 30 day) 130…
  17. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 17
    Southern Alberta Cost Drivers - Pads 1.4 Drilling Costs Initiatives Completion Cost Initiatives 1,000 1.2 0.10 900 - Remove frac strings 1.0 0.14 - Remove frac port drill outs 800 - Minimize testing 0.10 0.10 700 0.8…
  18. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 18
    Price/Capital Sensitivity Southern Alberta SAB - Capital Sensitivity 140 Costs expectations of 120 1.2 to 1.4 MM/well 100 80 by 2013 IRR,% 95% 60 Returns above 60% 40 20 Higher returns 0 compounded with 1000 1200 1400…
  19. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 19
    Waterflood Management Opportunities R18W4 R17W4 1000 5000 Retlaw Unit WF Forecast Cal Day Oil 4000 800 Water Inj, bwpd 3000 T13 600 2000 400 1000 200 0 T12 0 -1000 2012 Plan (5 mm net capital) Implement waterflood…
  20. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 20
    Taber South Full Life Example A B C (A) Strong early waterflood response (B) Low mid life declines (C) significant ASP uplift PACE OIL & GAS GHS100 CONFERENCE SAN FRANCISCO JUNE 2012 21
  21. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 21
    Peace River Arch - Dixonville Key Attributes Current production: 3,600 boe/d (88% oil) R1W6 R25W5 Netback over 35/boe* Total Acreage T87 Net 58,500 - 91 sections Montney C Oil Pool with expanding waterflood OOIP increased by 25%…
  22. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 22
    Dixonville: Montney C Reservoir Simulation 3,200 bbls/d DIXONVILLE: MONTNEY C REMAINING RECOVERABLE OIL (MMBBL) 70 35% 0.40 ULTIMATE RECOVERY OF OOIP (%) 60 0.35 0.30 50 Tertiary, 28.2 20% 0.25 40 15% Upside, 9.4…
  23. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 23
    Peace River Arch - Red Earth Area Key Attributes R9W5 R7W5 Current Production: 550 bbls/d (oil) Total Acreage T88 Net 50,250 78 sections Southern Alberta Top Quality light oil property Netback 60/boe* Slave Point Resource…
  24. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 24
    Peace River Arch - Red Earth Area - Economics R10W5 R6W5 Play Type Curve T89 100/1-9-88-8W5/0 Type Curve 1st Generation Wells 2011 Wells Southern Alberta Oil Rate (bbl/d) 100/8-1-88-12W5/0 T87 0 1 2 3 Years D,C,…
  25. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 25
    Northern Alberta: Rainbow/Haro Resource play R10W6 R6W6 R2W6 Key Attributes T110 Current production: 3,700 boe/d (25% oil) Total Acreage Gross 366,000 - 572 sections Net 319,000 - 498 sections Production Optimization 925 bbl/d…
  26. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 26
    Haro Pekisko Encouragement R5W6 R3W6 Unrisked 300 to 1600 locations T102 200 2-36-101-5W6 175 Oil Rate (bbl/d) 150 125 100 75 50 25 T100 0 0 12 Months 24 36 Type Curve 00/02-36 D,C, Equip 2.1 2.5 mm Production,…
  27. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 27
    Haro Drilling Initiatives Drilling Cost Initiatives Completion Cost Initiatives 2.0 1.8 0.30 2011 completion costs 1.6 0.15 1.2 - 1.5 MM/well 1.4 0.20 Initiatives: 1.2 0.15 Build water pits MM 1.0 1.90 0.8 Expand water…
  28. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 28
    Price/Capital Sensitivity Haro - Capital Sensitivity 150 Costs expectations of…
  29. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 29
    Large Repeatable Gas Deep Basin Land Farrell Creek, BC Area Gross Acres Net Acres Working interest: 75%-100% (operated) Elmworth 5,800 3,500 Chinook Ridge 27,000 16,300 Net acreage: 19,300 acres (30.2 sections) Red Rock 20,100…
  30. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 30
    Deep Basin Multi-Zone Gas Resource Play PROSPECTIVE NUMBER OF WELLS AND COST LAND PER WELL UNRISKED POTENTIAL Net Net Original Book- Net Unbooked Est. Drill, Pace Net Unrisked ed Unrisked Complete and Pace WI EUR (1) Sections Of…
  31. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 31
    Pace Oil Enhanced Recovery Estimated Gross Ultimate Recovery Total Gross EUR Cum as of Dec. Pace WI as of Dec. Pace Gross 31/2011 31, 2011 Incr. Recovery OOIP Prod. Recovery Total Proved Proved + Probable Upside Potential (2P +…
  32. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 32
    Key Investment Highlights Strong Real Growth Oil weighting up and Oil weighting growing Strong Performance Metrics Best in Class Solid operating results and Execution Efficiency Increased oil weighting and op cost reduction Solid…
  33. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 33
    Hedging Commodity Term Type Volume Price (CDN) Oil 2012 fiscal Collar 500 bbl/d 95.00 to 117.75 Oil 2012 fiscal Collar 500 bbl/d 100.00 to 108.70 Oil 2012 fiscal Swap 1,500 bbl/d 97.07 Natural Gas Jun - Dec 2012 Swap 4,740 mcf/d…
  34. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 34
    Pace Corporate Information Management Directors Fred Woods Fred Woods Tom Simons President & CEO Tom Buchanan Jeff Smith Todd Brown Peter Harrison Jay Squiers Vice President & COO Mike Shaikh David Tuer Chad Kalmakoff Vice…
  35. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Pace Oil & Gas Ltd. – slide 35
    For Information Contact Fred Woods President & CEO Todd Brown VP & COO Chad Kalmakoff VP, Finance & CFO Main: 403-303-8500 Investor Relations Email: irpaceoil.ca Website: www.paceoil.ca TSX: PCE OTC: PACEF

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