HERE FOR THE LONG RUN CORPORATE PRESENTATION, DECEMBER 2012 TSX: LRE
LONG RUN PROFILE Key Metrics Listing TSX:LRE Shares Outstanding 126 million Production 23,000 boe/d Oil + NGLs 10,618 bbl/d Gas 74.3 MMcf/d Oil Weighting 48% Average Oil Gravity 32 API Anticipated 2012 Year-end Net Debt 290 million…
PRODUCTION VERSUS PEERS Long Run is Liquids Rich Total Production (boe/d)* Liquids Production (bbls/d)* 30,000 16,000 14,000 25,000 12,000 20,000 10,000 15,000 8,000 6,000 10,000 4,000 5,000 2,000 0 0 CR LRE BIR PMT…
FINANCIAL METRICS VERSUS PEERS Reduced debt-leverage 2013e Debt/Funds Flow* 4.5 180 million asset sale announced 4.0 Nov. 15th to close December 14, 2012 3.5 3.0 Anticipated debt to 2013 expected funds 2.5 flow of 1.3x is…
THE OPPORTUNITY Room to Run Focus on the Western Canadian Sedimentary Basin, specifically on areas that provide tight oil and gas potential, ability to control infrastructure and room for expansion and consolidation Build a…
2013 CAPITAL BUDGET Targeting Growth Drill, Complete and Tie-In Capital (%) Wells (%) Peace River Montney Oil 110 mm (42) 50 Redwater Viking Oil 82 mm (31) 68 Other Oil 25 mm (9) 12 Other Gas 3 mm (1) 2 Total DC+Tie-In 220 mm 132…
2013 OPERATING BUDGET Targeting Growth Forecast Average Daily Production Anticipated 2013 Cost Structure Natural Gas 70 MMcf/d /BOE Heavy Oil 1,300 bbl/d Royalties (6.50) Light Oil 11,000 bbl/d Operating Expenses (12.75) NGLs 1,110…
KEY PROPERTIES Blend of Exploration and Development Northern Gas Peace River Exploration Edmonton Area LONG RUN EXPLORATION CORPORATE PRESENTATION DECEMBER 2012 8
PEACE RIVER Dominant land position in multi-zone play 600,000 net acres Primary targets are Triassic age resource plays targeting oil and liquids-rich gas Current development focus area is Girouxville/ Worsley Normandville…
MONTNEY Long Run Offers the 5th Largest Land Position in the Montney Montney Land Holders (Net Sections) 1,400 1,200 1,000 800 600 400 200 0 LONG RUN EXPLORATION CORPORATE PRESENTATION DECEMBER 2012 10…
MONTNEY Oil Upside in the Peace River Arch Girouxville/Normandville area Current production approximately 6,000 BOE/d (65% oil) Constructed 5,000 bbl/d oil facility in Q2; additional 5,000 bbl/d oil facility in Q3 Waterflood…
MONTNEY Type Curve Economics Montney Horizontal Oil Type Curve IP 90 150 boe/d 250 2012 Montney Hz Oil Type Curve NPV BT 8% 2.5 million All Montney Hz Greater or equal to 20 Stages 32 Wells On-stream cost 2 million Total…
EDMONTON CORE AREA Cherhill & Redwater Cherhill & Redwater produce a combined 6,200 boe/d Primary targets are Viking / Mannville and Mississippian oil horizons Significant infrastructure in-place Land position of 80,000…
VIKING - REDWATER Light oil play with significant development opportunities Redwater located near Edmonton Area Current production approximately 4,000 boe/d Viking oil horizontal multifrac/multilateral play 38 API oil…
VIKING - REDWATER Type Curve Economics Alberta Viking Well IP 90 50 boe/d 70 NPV BT 8% 1.0 million 105 Wells 60 On-stream cost 1.2 million Production (boe/d) 50 Payout 19 months 40 30 48 Wells Recycle ratio (12 month)…
HORIZONTAL PLAY COMPARISON Highly competitive on-stream costs 200 24 Month F&D Long Run Montney 2012 Type Curve 100 180 Long Run Redwater Viking 80 Evi Slave Point Average Sask Viking Average /boe 160 60 Sask Bakken…
BOYER Natural Gas Torque Acquisition in February 2012 Producing approximately 20 MMcf/d Shallow decline gas (8%/year) 710,000 net acres Low operating costs of 1.35/Mcf Current drilling density less than 1.5 wells per…
PEACE RIVER ARCH EXPLORATION Jack Q3 HZ Charlie Lake Oil Josephine Q1 HZ Charlie Lake Oil Springburn Q1 HZ Slave Point Oil Eaglesham Q1 HZ Montney Gas/Oil Girouxville Q3 HZ Slave Point/Wabn Oil Puskwaskau Q1 VT Test…
DUVERNAY The Duvernay shales are analogous to shale plays such as the Barnett and Haynesville in the U.S. Long Run has over 300,000 acres of Duvernay rights Grande Long Run Duvernay Prairie Well Location Initial vertical…
WHY LONG RUN EXPLORATION Reasons to invest Increasing netback through light-oil development focus Strong and proven management team Financial strength to provide exploration capital in opportunity rich Peace River Arch area…
CORPORATE INFORMATION TSX :LRE Contacts Bill Andrew Chair and CEO (403) 261-6012 Dale Miller President (403) 261-6012 Jason Fleury Vice President, Capital Markets (403) 261-8302 Main: 403-261-6012 Toll-Free Investor Line:…
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