The Southern Pacific Strategy FOCUSED: We are a bitumen/heavy oil developer and producer. DRILLED PRODUCTION: Our bitumen and heavy oil will be recovered using horizontal wells and steam; the footprint is similar to conventional…
Overview Shares outstanding - basic 339 million Shares outstanding - fully diluted 359 million Recent price (Close on May 24th, 2011) 1.74 Market capitalization - (May 24thth, 2011) 589 million Working Capital (Mar. 31st , 2011) 345…
Experienced Management Team Years in the Name Title industry Experience Byron Lutes President and CEO [25] VP, Operations with Mancal Energy Inc. VP, Engineering at Hunt Oil Company and Newport Petroleum Corporation Various…
Strategic Land Position Alberta: 436 sections (242,176 net acres) of oil sands leases with 87% average working interest Saskatchewan: 12 month average of 4,200 barrels per day (bbl/d) of operated heavy oil 6
STP-Senlac Thermal Project 4,000 - 5,000 bbl/d for the next 10 -15 years Best in class SOR of 2.0 2.2 Experienced operations personnel 7 Refer to slide 2 for cautionary statements about forward-looking information.
STP-Senlac Solid Production July 1, 2010 to May 31, 2011 average - 4,215 bbl/d Phase H (2 SAGD well pairs) brought on production April 1st, 2011 Phase J (3 SAGD well pairs) expected to be drilled and available for production by…
STP-McKay Thermal Project 45 km NW Ft. McMurray 10.5 section project area 100% STP working interest Regulatory approvals in place Phase 1 construction fully underway Phase 1 Design: Suncor MacKay 12,000 bbl/d oil STP Lands SAGD…
STP-McKay Phase 1 Construction Update Road: Initial build 95% complete, will be completed on time and within budget Plant and pad site construction: Initial earthworks 95% complete, on time and within budget, pile driving has begun,…
STP-McKay Phase 1: Timeline to Production Road Construction ERCB Project Approval Plant & Pad Site SAGD Drilling Facility Construction Commissioning Mechanical Completion Steam Circulation Current Well Ramp Up…
Corporate Cash Flow - Base Case Model (STP-Senlac and STP-McKay Phase 1 Only) 500 5 400 300 3 200 100 1 Debt/EBITDA million 0 2011 2016 2021 2026 2031 -100 -1 -200 -300 -3 Simple model assumes cash sweep…
STP-McKay: 2010-2011 Corehole Program Total of 38 coreholes drilled this past winter in and around STP-McKay To date: 89 coreholes now drilled within project area 15
STP-McKay: High Quality Resource Base Total of 43 coreholes (31 drilled this past winter) on Phase 2 project area High quality bitumen pay encountered on all wells: No lean zones No shale barriers Continuous and exploitable McMurray…
STP-McKay: Expansion Plans Based on the corehole drilling results, Southern Pacific announced on April 14th, 2011 that it is proceeding with expansion plans at McKay STP-McKay Phase 2 is being designed to add 24,000 bbl/d of bitumen…
STP-McKay: Phases 1 and 2 Layout (2014) Well pads Phase 1 Phase 2 Continuous pay fairway 18 Refer to slide 2 for cautionary statements about forward-looking information.
Phase 2: Construction Strategy Southern Pacific plans to stagger the construction of Phase 2 in two integrated 12,000 bbl/d pieces Phase 2B Highlighted in red FEED Study Engineering underway, expect completion by the fall of…
STP-McKay Phase 2A: Timeline to Production Environmental Work Corehole Drilling Application Preparation Approval Process ERCB Project Approval Construction Commissioning Steam Circulation Current First Oil Jul-10…
Southern Pacifics Existing Project Growth Plan Forecast represents real projects that are on production, being constructed or in the application process Timing of STP-McKay Phase 2 represents two stages of growth, designed for…
Corporate Cash Flow - Base Case Model (STP-Senlac and STP-McKay Phase 1 and 2) 1,000 5 800 600 3 400 Debt/EBITDA 200 1 million 0 -200 2011 2016 2021 2026 2031 -1 -400 -600 -3 -800 Simple model assumes cash…
Wabiskaw Bitumen: Additional Resource at McKay Clearwater Wabiskaw zone lies directly above McMurray over Shale most of McKay Phase 1 and 2 (Caprock) Approximately 200 mmbbl of OBIP (management est.) Recovery mechanism planned:…
STP-McKay: Full Bitumen Exploitation Plan Conduction and cyclic steam SAGD injector SAGD producer Infill horizontal well 24
STP-Red Earth Thermal Project 135 sections Existing 1,000 bbl/d thermal project 105 MMbbl of P50 contingent resource Pilot Project Pilot project start up in June 2011 Evaluate through summer and make recommendations in fall…
STPs Upside: Additional Oil Sands Leases Anzac Hangingstone 14 coreholes 29 coreholes 2D seismic, ERT 2D seismic 75 Sections 66 Sections Plans are underway to commence a significant exploration program on these blocks next…
Southern Pacific Sources and Uses Forecast (January 2011 to June 2012 18 months) McKay Phase 1 Contingency 42 STP-Senlac 25 Exploration 25 McKay Phase 1 McKay Phase 2 15 Use of Capital 356 (Total of 546 million)…
2011: Whats next for STP Execution of STP-McKay Thermal Project Construction on time and on budget will be primary focus of 2011 Preparation of STP-McKay Phase 2 Expect to submit an application in the fall of 2011 Development Plan…
Contact Information Suite 1700, 205 - 5th Ave. SW Calgary, AB T2P 2V7 Phone: 403-269-5243 Fax: 403-269-5273 Email: infoshpacific.com www.shpacific.com TSX:STP For more information: Byron Lutes, President & CEO Ron Clarke, COO…
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