POSITIONED FOR SUSTAINABILITY AND GROWTH August, 2013 TSX:SGY www.surgeenergy.ca
WHY OWN SURGE ENERGY One of the highest quality, crude oil asset and opportunity bases in peer group; 12 year RLI (with 2.5 years of FDC/cash flow) 10 year inventory of low risk development drilling locations; largely unbooked…
RECENT DEVELOPMENTS On July 3, 2013, Surge closed the 240MM acquisition of an elite, operated, large OOIP(1) crude oil asset in SW Saskatchewan, and a concurrent 247.5MM equity financing. On August 7, 2013, Surge increased its…
SURGE ENERGY INC. Elite, operated large OOIP crude oil reservoirs, with low recovery factors Strong balance sheet; ongoing risk management/hedging program Experienced management team with proven track records 5
DEFINED BUSINESS STRATEGY 1. Provide a sustainable, protected, annual dividend to shareholders, payable monthly; and 2. Grow, cost effectively, at 3-5% per year on a reserves, production and cash flow per share basis; and 3.…
(1) SURGE 2013E/2014E GUIDANCE OPERATIONAL 2014E Q1 Production (boe/d) 12,000 (78% Oil/NGLs) 2014E Average Production (boe/d) 12,100 (78% Oil/NGLs) 2014E Exit Production (boe/d) 12,500 (78% Oil/NGLs) 2P Reserves 54.6 mmboe Net…
EXCELLENT CAPITAL EFFICIENCIES / REPLACEMENT METRICS 15,300/boepd Valhalla (46 gross/38.6 net locations) Drill/Complete/Equip: 4.6MM 180 day IP: 300 boepd (66% oil) 672,000 boe/reserves/well (on primary) 18,800/boepd Silver (109…
ELITE, FOCUSED ASSET BASE EXPOSURE TO 815 MMBBLS OF GROSS OOIP ONLY 3% OIL RECOVERED TO DATE 9
SUMMARY OF QUALITY OIL RESERVOIRS LARGE OOIP(1) WITH LOW RECOVERY FACTORS Internally Total Booked Estimated Ultimate Cum Oil Independent Gross OOIP Recovery Property Formation Ave. WI Recovery Recovery Factor (mmbbls)…
SW SASKATCHEWAN SHAUNAVON (LOWER AND UPPER) 250 mmbbls of OOIP in the Lower and Upper Shaunavon formations (medium gravity oil) Current recovery factor 1.3% Operated property that represents 20% of Surges 2P reserves (1) Rates…
SE ALBERTA SILVER AREA (CRETACEOUS SANDS) 195 mmbbls OOIP (24-31 degree API oil) Multi-zone, medium gravity crude at shallow depths…
WESTERN ALBERTA VALHALLA SOUTH / WEMBLEY (DOIG) Valhalla 160 mmbbls of combined OOIP at Valhalla and Wembley (40 degree API light oil) Current recovery factor 2.4% Operated property that represents 35% of Surges reserves (1)…
WESTERN ALBERTA NIPISI (SLAVE POINT) 115 mmbbls of combined OOIP (35-42 degree API) in the Utikuma Slave Point Formation at Nipisi North and Nipisi South Current recovery factor 0.7% of OOIP Operated property that represents 19%…
RISK MANAGEMENT/HEDGING STRATEGY Oil Hedges 5,000 60% The Company has an orderly, Oil Volume Currently Hedged 54% 54% on-going, risk management / 4,500 Percentage of Current Net Oil Production Hedged 50% hedging program designed…
SURGE POSITIONED FOR SUSTAINABILITY Low base…
SURGE POSITIONED FOR GROWTH Focused, high quality crude oil asset and opportunity base; core properties are 100% operated, with working interests of 90% Elite, large OOIP crude oil reservoirs with low recovery factors; 12 year…
ANALYST COVERAGE Financial Institution Analyst Email Address AltaCorp. Capital Don Rawson drawsonaltacorpcapital.com BMO Capital Markets Jim Byrne jim.byrnebmo.com CIBC World Markets Inc. Arthur Grayfer arthur.grayfercibc.com…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Bankers: ATB Financial JPMorgan Chase Bank, N.A. Toronto-Dominion Bank Auditor: KPMG LLP Legal Counsel: Heenan…
2014 KEY SENSITIVITIES BASE SENSITIVITY IMPACT (C) Oil Price (C Ed Par) 90.45 +/-1.00 1.8 million Gas Price (C / Mcf) 3.69 +/- 0.10 0.4 million Production 12,111 +/- 100 1.7 million Cash Netback 33.94 +/- 0.50 2.2 million…
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