Key investment highlights Prolific Montney asset Experienced Large, low risk, management with high return drilling strong sponsorship inventory Favorable Integrated operating development environment strategy 2
Canbriam Energy: corporate overview Overview Asset map Private company started in 2007 and focused on the prolific Montney formation in Northeast BC March 2015 average production of 18,000 boe/d (20% liquids) 2014 production 9,628…
Experienced Management team has a track record of value creation Years Deep industry experience Paul Myers 25+ President, CEO Robert Froese 25+ Chief Financial Officer Gary Gardiner 30+ Chief Operating Officer John Nieto…
Montney: significant well density & offset peer activity Petronas/Progress -Town 30 km Montney Wells Canbriam Energy Shell Progress/Petronas ARC Encana CNRL Murphy Suncor Painted Pony Black Swan Unconventional…
Canbriam: unique geology within prolific Montney resource 4 key attributes of Canbriams Montney asset 1 Significant thickness 2 High liquids content Could ultimately result in 3 or 4 commercial 2014 plant yield: 40 - 50 bbls/MMcf…
Canbriam: unique geology within prolific Montney resource 4 key attributes of Canbriams Montney asset (contd) 3 Over-pressured reservoir 4 Sub-surface compartmentalization Results in higher OGIP & EUR Leads to distinct high-pressure…
Large drilling inventory supports low-risk production growth Well inventory (net) +34 years of upside 18 years of economic drilling inventory 36 wells / year drilling inventory 936 1622 686 186 318 686 40 107 35…
Stable production history with strong liquids content 120 Inlet Separator 100 b-24-H capacity 80 Natural Gas mmcf/d 60 40 20 Sept-14: Plant turnaround 0 3,500 80 3,000 70 60 2,500 Yield bbls/MMcf 50…
Development plan focused in the prolific Main Fault Block Exploration wells: 11 wells since 2008 Development wells: 23 wells (March 31, 2015) 7 zones tested within Montney formation Targeting 2 Upper & 1 Lower Montney zones within…
Consistent well performance supports full scale development Cumulative production by well Main Fault Block (Upper) - First 1,000 days 5,000 b-A24-H c-23-H 4,500 b-34-H c-27-H b-B24-H c-B27-H 4,000 b-B74-A b-C74-A b-D74-A 9 bcf…
Main Fault Block type well economic sensitivities Montney NPV10 (M) including hedge positions Montney IRR including hedge positions 18,000 100% 16,000 90% 80% 14,000 70% 12,000 60% 10,000 50% 8,000 40% 6,000 30% 4,000…
Downhole chokes have improved decline rates Advantages of using downhole chokes Altares c-B27-H Well Upper Montney 15.0 30.0 Manages 1st year production declines and fosters stable production 14.0 28.0 13.0 26.0 Enhances EUR by…
Infrastructure strategy supports large scale development 100% owned and operated Infrastructure North Altares facilities Processing facilities b-24-H: 50 MMcf/d nameplate capacity online b-72-A: scalable to 400 MMcf/d nameplate…
b-72-A facility: scalable design for efficient development C-62-a Water hub Commissioned March 2015 Train 2, phase 2: 120 MMcf/d Sanctioning to be determined Train 2, phase 1: 120 MMcf/d Sanctioning decision in 2015 Train…
b-72-A facility: scalable design for efficient development September 4, 2014 December 19, 2014 February 13, 2015 commissioned 17
Integrated water solution is a strategic advantage Sourcing Canbriam - Altares 20-year permit to access up to 10,000 m3/day of low- cost fresh water from Williston Lake Permitted fresh water supports 1 Bcf/d production Includes…
Operating environment supports development plan Attractive fiscal regime in BC Mile post 73 NGL Spectra T North terminal Canbriam roads Gas transmission Drilling credits & minimal retention drilling required NGLs Supportive…
Hedge positions & composition of total liquids production Natural gas hedges (February 28, 2015) Liquids hedges (February 28, 2015) M Gj/d bbls/d 90 5.00 3,500 120.00 98.75 97.35 80 3,000 70 4.00 3.16 3.26 2,500 3.02 80.00 60…
Key investment highlights Prolific EUR/well with 1,100 of Montney vertical thickness on 61,000 (50% liquids rich) net acres Prolific Montney 168.6 mmboe of gross 1P Reserves (pre-tax PV10 of 1,449 million)(1) asset 280.9 mmboe of…
Supplemental information
Canbriams integrated development strategy Sub-surface & operations Infrastructure Management Canbriams success tied to Processing facilities are 100% Team approach fosters culture early quality differentiation owned & operated of…
Strategies to enhance operational performance 1 Small footprint 3 Limited entry slickwater frac completions Pad drilling minimizes surface Surface disturbance and lowers D&C Surface Casing Isolation Perf costs per well - Pump-…
Upper Montney wells have outperformed type curves Type well assumptions Canbriam development well vs. type curve Main Fault Block (MFB) Upper Montney Drilling locations(1) 284 7,000 Well properties 6,000 Raw gas type curve…
Lower Montney well performance vs. type curves Type well assumptions Canbriam development well vs. type curve Main Fault Block (MFB) Lower Montney 7,000 Drilling locations(1) 149 Well properties 6,000 Raw gas type curve…
Supplemental reserves information Reserves Reconciliation (1) Proved Probable Proved + Probable Natural Gas NGLs Total Natural Gas NGLs Total Natural Gas NGLs Total Bcf MMbbls MMboe Bcf MMbbls MMboe Bcf MMbbls MMboe December 31,…
Upper Montney Main Fault Block well data Daily raw gas production by well Upper Montney Main Fault Block development wells 10,000 b-A24-H 9,000 b-B24-H 8,000 c-23-H 7,000 c-27-H Daily Gas Rate (mcf/d) 6,000 b-34-H…
RESOURCE. INNOVATION. COLLABORATION. Canbriam Energy Inc. Paul Myers 3500, 450 1st Street SW President & Chief Executive Officer Calgary, AB Canada T2P 5H1 pmyerscanbriam.com Rob Froese infocanbriam.com Chief Financial Officer Tel:…
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