Exploring the Future The Oil & Gas Conference August 22-26, 2010
Which of these eight companies has the most leverage to oil 3
Oil vs. Gas Production Strategically Positioned 100,000 450,000 boe/d 100% 80% Natural Gas Percentage 60% 40% 20% Oil & NGLs 0% 1 2 3 4 5 6 7 Penn West Production as at Q2 2010 4
producer of light & medium oil in western Canada 5
Penn West Profile Market Capitalization(1) 8.9 Billion Long Term Debt(2) 2.5 Billion Forecast 2010 Production 164,000 172,000 boe/d Est. 2010 Capital Development Budget 700 850 million (1) As at August 12, 2010 (2) As at June 30,…
Horizontal Technology U.S. vs. Canadian Field Development Permian Basin Pembina Cardium Odessa, Texas Drayton Valley, Alberta 5 acre well spacing 80 acre well spacing 9
Strategic Portfolio Management Cordova Embayment Northern Carbonates Peace River Oil Sands Eastern Alberta Cardium Dodsland Waskada Penn West land position 10
Prospect Inventory Cumulative Added Reserves Production per Percent of OOIP / OGIP To Date Incremental Recovery Light Oil 9 B bbls 14% 90 million bbls Gas 18 Tcf 2% 180 Bcf Oil Sands 3 B bbls 0% 30 million bbls Discovered Petroleum…
Unlocking Oil in Place Cardium West Central Alberta 12
West Central AB - Cardium Program Summary 1,040 sections (net) Pembina Buck 2,400 wells (net) Lake West Ferrybank Pembina Willesden 25,000 boe/d current production Green Leafland 10 billion bbls OOIP Strachan 30 kms…
Cardium Land Holders Existing Pool Area Net Sections 1000 1,040 900 Total play exposure of approximately 800 665,000 net acres (1,040 sections) 700 600 500 530 400 300 204 200 160 150150150 100 95 92 81 100 75 66 52 49…
West Central AB - Cardium Costs and Economics Cost per well (000) Economics 75 WTI finding & 1,550 drill 14-18/boe development* 1,000 complete 18,000/boepd capital efficiency 350 tie-in & equip 3.5x recycle ratio 2,900…
West Central AB - Cardium Forecast Type Curve 16% vertical recovery to-date Horizontal Well Type Curve potential hz and wf 10-20% incremental recovery 250 3 month IP 160 bbls/d Billion bbls estimated OOIP 200 Recovery 180…
Unlocking Oil in Place Waskada SW Manitoba 17
Waskada Development History Vertical Wells 100,000 boe Vertical Water Injection 100,000 m3 Horizontal Producer Well Penn West Land Position 5 kms 2 miles Manitoba North Dakota 18
Waskada Costs and Economics Cost per well (000) Economics 75 WTI finding & 500 drill 14/boe development* 600 complete 15,000/boepd capital efficiency 300 tie-in & equip 3.3x recycle ratio 1,400 total Op Ex 10/boe…
Waskada Forecast Type Curve 2% vertical recovery to-date Horizontal Well Type Curve potential hz 5-10% incremental recovery 3 month IP 100 bbls/d 150 Recovery 115 mbbls 1.5 Billion bbls OOIP 100-150 mmbbls potential recovery…
Unlocking Oil in Place Peace River Central Alberta 21
Peace River Oil Partnership Program Summary 237,000 acres T86 10 kms Nampa 5 miles 70 stratigraphic wells Cadotte Seal Harmon North T84 Valley 84 hz wells Harmon Harmon Valley Valley West South T82 2,700 boe/d current…
Peace River Oil Partnership Key Points Penn West contributes: 106,650 acres (45% of 237,000 acres) 1,215 boe/d (45% of 2,700 boe/d) 56 million go forward investment (10% of PWTs 55% interest) Partner contributes: 312 million…
Unlocking Gas Resources Cordova Embayment NE British Columbia 24
Cordova Gas Joint Venture Program Summary 94-P-13 Cordova Embayment Slave Point Platform Wildboy Horn River Basin 94-P-8 550,000 acres (gross) Gas Facility stratigraphic 3 wells All weather access road Nova mainline…
Cordova Gas Joint Venture Key Points Penn West contributes: 275,000 acres 2,500 boe/d 200 million go forward capital investment Partner contributes: Approximately 250 million cash (paid to PWT directly) 600 million go forward…
Setting the Course for the Future Conversion Capital budget of 700 to 800 million necessary to maintain current production levels Focus funds to increase pace of development in key play areas anticipate 150 to 200 million for…
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