Annual General Meeting May 26, 2010 TSX: AAV NYSE: AAV May 2010 Page 1
2009 Corporate Highlights Successfully re-organized to a growth oriented corporation Re-directed cash flow to Montney natural gas resource play at Glacier Improved financial flexibility through a 57% reduction in total debt…
2010 YTD Corporate Highlights Glacier production increased to over 50 mmcfd in April 2010 (ahead of schedule) Lower Q1 capital than anticipated due to better well results & lower drilling & completion costs Corporate production…
Reduced Cost Structure Enhances Economic Returns During Lower Commodity Price Cycles The cost of adding reserves through the drill-bit have decreased by 52% since 2007 due to the impact of Glacier & continued success in other…
A More Compact & Focused Asset Base Post Dispositions Areas: Glacier Significant Montney natural gas resource play Alberta Saskatchewan Central Alberta Montney natural gas resource play Conventional & emerging oil Glacier &…
Advantage Go Forward Corporate Strategy Focus on Montney Natural Gas Resource Play Development at Glacier, Alberta Continued delineation of land block and development of significant production & reserves potential Maintain…
Advantage Land Block is Contiguous & Significant at Glacier Shell LEGEND Arc Advantage Arc Birchcliff CNRL Encana Grey Wolf Murphy Shell Birchcliff Storm Talisman EnCana Advantage Murphy Large Contiguous Land Block at…
Montney Resource Play Fairway Rock Type Matters Unconventional Unconventional Marcellus Shale Horn River Barnett Glacier Shale Shaley silts Edmonton Calgary Haynesville Silt Glacier Montney Shell Arc Dawson Tight…
Montney Reserves/Well Could Exceed Expectations due to Silt/Sand Reservoir Montney type well Swan (based on 55 wells that have the longest production history) Barnett Shale type wells by operator Source: Facts are…
Glacier Montney Development Status Targeted Production Growth Current Highlights: * Gross plant inlet volume Decision mid-year 2010 New 50 mmcfd AAV gas plant (100% W.I.) commissioned and at capacity New TCPL sales pipeline…
Glacier - Infrastructure Development New 50 mmcfd AAV gas plant AAV 50 mmcfd sales AAV Gas Plant gas to TCPL Location TCPL Mainline Existing TCPL Lateral New 100% W.I. Advantage 50 mmcfd Current Gathering gas plant…
Glacier Successful Delineation with Test Rates Exceeding Expectations Across Land Block 1 Upper Montney Hz 12 MMcf/d 1300 psi 2 Upper Montney Hz 8 Upper Montney Hz Avg. 8.1 Mmcf/d 812 psi Avg 5.1 mmcf/d 1404 psi 2 Lower Montney…
Glacier Upper Montney Horizontal Well Test Rates Improving 12,000 Average Hz well rate increased from 10,000 3.6 mmcf/d to 6.5 mmcf/d 8,000 Test Rate (mcf/d) 6,000 4,000 2,000 0 0 500 1,000 1,500 2,000…
Glacier Upper Montney Rate per Frac* Improved 1.7x 1,400 Rate per Frac increased from 1,200 465 mcf/d to 802 mcf/d 1,000 800 mcf/d 600 400 200 0 * Due to testing equipment constraints on high rate/high…
Completion Costs per Frac Declining 1,000,000 900,000 Completion costs per frac 800,000 decreased over 50% 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 May 2010 Page 16
Drilling and Completion Well Costs Reduced Since 2008 D+C costs decreased despite increased fracs per well 8,000,000 Completion Drilling 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000…
Glacier Reserves and Resource Potential Advantage working interest reserves and contingent sales gas resource in million boe (TCF) Significant Upside Potential Remains (1.7 TCF) 2009 Reserves assignment: 56 of 84 sections 3.8…
Glacier - Nikanassin and Other Resource Plays Nikanassin at Glacier is located in: Thick part of the fairway (up to 50 meters) of net coarse grained sand developed in the key Middle section of the Nikanassin Clean sandstone with…
Solid Hedging Program to Support Future Cash Flow % of net Aeco Cdn Nymex US NATURAL GAS Production Hedged (per mcf) (per mmbtu) * 2010 Q1 81% 7.64 8.04 Q2 57% 7.53 7.93 Q3 44% 7.27 7.67 Q4 45% 7.27 7.67 2010 Full Year 57% 7.46…
Advantage - Well Positioned for Growth Montney natural gas resource play at Glacier Significant reserves recognized by Sproule New 50 mmcfd gas plant (100% AAV) Anticipated to reduce operating costs from 8.25/boe to 2.75/boe…
Thank You To our dedicated Staff who contributed significantly to our Achievements & To our Board of Directors for their continuing support May 2010 Page 22 July 2009 - Page 22
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