OUR FOCUS We are an upstream energy company focused on light oil development in western Canada EXTENSIVE PORTFOLIO SUSTAINABLE PRESERVE LONG TERM OF ASSETS BUSINESS MODEL VALUE Drilling inventory of 10+ 2014 capital program…
OUR ASSET BASE 9 Month Average Production 41,750 boepd Q4 2014 Drilling Business Units Production Production Inventory (boepd) (boepd) (locations) Bakken 13,990 17,8231 1,050 2014 Production Exit: Cardium 18,566 18,606 460…
RESERVES SUMMARY Proved + Probable Reserves Mix (161 MMboe) 2014 Results 22% 2P reserves of 161 MMboe 70% 8% 2P NPV10% (before tax) of 3.2 billion Light & Medium Oil 2P reserve additions (before A&D and Natural Gas Liquids…
BUSINESS UNIT RESERVES BU Proved + Probable Reserves Mix (161 MMboe) 2014 Year-end Valuation (millions) 13 MMboe 2P Reserves (NPV 10%) 3,150 79 MMboe Total Debt (1,647) Hedges 67 69 MMboe Decommissioning Liability (198)…
2015 CORPORATE STRATEGY Retain long-term value and preserve financial flexibility in current low commodity price environment Operational Plan Suspension of monthly dividend Capital program of 100 - 120 million, funded by internally…
2015 CAPITAL & DRILLING PROGRAM We have reduced our 2015 capital & drilling program to 110 million1 and suspended our second half operated drilling program given low commodity prices and current capital costs 2015 Planned Capital…
FOCUS ON FREE CASH FLOW Our long term light-oil business model Initial capital investment in light oil resource plays generates near-term FUTURE GROWTH production growth and early payout GROWING INTO FREE CASH FLOW Maturing…
DEBT AND LIQUIDITY Our secured debt credit facility is currently being renegotiated to manage covenants and provide ongoing financial flexibility 575 million of available DEBT CAPITAL COMPOSITION Term Secured Debt liquidity…
GUIDANCE Our revised guidance reflects a lower commodity price forecast; in the current commodity price and service cost environment, we do not intend to invest in operated, new well drilling programs in the second half of 2015 Initial…
FUNDS FLOW PROTECTION Our 2015 WTI hedge position helps protect our downside in the current pricing environment Commodity 1H 2015 2H 2015 Oil hedged - WTI (bbl/d) 7,750 4,795 Net production hedged 1,2 39% 24% Ceiling (US/bbl) 104 103…
ECONOMIC SENSITIVITIES Sensitivities and assumptions on annualized 2015 funds flow from operations Impact Parameter Assumption Change of: ( millions) WTI Oil1,2 US52.50/bbl +/- 1.00 5.2 Production 31,500 boepd +/- 1,000 7.0…
BAKKEN ASSETS Focus on optimization and EOR Our assets produce light oil from the Bakken and the conventional Mississippian formations with a relatively low decline rate. With a moderate drilling program in 2014, we focused on optimizing…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding Bakken With Bakken EOR projects we expect to: Attenuate declines and extend production life Increase DPIIP recovery factors from 15% to 25% Improve…
CARDIUM ASSETS Generating positive operating cash flow Our extensive land base stretches from Calgary to LTS Land Edmonton and our assets primarily produce light oil LTS Batteries from the Cardium formation. We are continuously Sales…
CARDIUM GROWTH Cardium Production and Cumulative Well Count 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200 5,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
AB / BC ASSETS The Swan Hills is our next growth target Production has grown to 2,500 boepd New 3,500 bopd battery operational in Q2 2014 Future Operations Reserve bookings confirm long-term prospectivity LTS Land LTS Batteries…
GROWING SWAN HILLS PRODUCTION Swan Hills production growth has increased our liquids weighting for the Alberta/BC business unit 5,000 25 4,000 20 Net Wells on Production Production (boepd) 3,000 15 2,000 10 1,000…
LONG-TERM WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Business Unit Bakken Business Unit Cardium Alberta/BC Type…
LONG-TERM OPPORTUNITY PRESERVE LONG TERM EXTENSIVE ASSETS SUSTAINABILITY VALUE Drilling inventory of 10+ 2014 capital program 2014 reserve value years (before A&D) and significantly exceeds dividends fully financed enterprise…
Trading Symbol LTS: TSX Share Price (March 6, 2015) 1.05 Market Capitalization 207million Shares Outstanding (Dec 31,2014 Basic) 197 MM Total Debt 1.65 billion Options/Incentive shares 5.4 MM Enterprise Value 1.86 billion Shares…
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