CONNACHER - WHO, WHAT, WHERE Half a Billion barrels of conventional 2P bitumen reserves(1) producer TSX:CLL heavy oil refiner SAGD Oil sands asset Conventional asset AB bitumen Montana Refinery Fort McMurray…
KEY FACTS(1) 448mm Market shares capitalization: outstanding 545mm Enterprise Pre-tax NAV: CLL - TSX Value: 2.9B 1.5B 52 week Hi- On average, Lo: 2mm shares 1.66 - 1.10 traded daily 1) As at May 31, 2011. Refer to slide 21…
TRACK RECORD OF GROWTH Production Boe/d(1) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 2009 2010 Q1 2011 2011E Crude oil Natural gas Bitumen Bitumen Reserves(1)(2) MMbbls PV-10% (MM) 700 4,000 600…
THE STAGE IS SET UPSIDE INITIATIVES(1) Value Recognition Oil Sands JV Process Light Oil Resource Play - In Progress Asset Rationalization In Progress Streamlined Balance Sheet - Completed Growing, Reliable Bitumen…
ACT I: GROWING, RELIABLE BITUMEN PRODUCTION(1) Holdings in main Athabasca oil sands fairway Half a Billion barrels of 2P bitumen reserves at Great Divide(2) Two producing SAGD projects Fort McMurray Great Divide…
POD ONE PLANT Notional 27,000 bbl/d steam generation capacity Over 7 million bbls of bitumen produced and sold since December 2007 startup Possible infill wells in 2012(1) 1) Refer to slides 36 and 37 for forward looking…
ALGAR Pod One Algar Well Pads Algar Plant Site Completed April 2010, under-budget; commerciality achieved October 1, 2010 Notional 30,000 bbl/d steam capacity Still in ramp-up phase Designed to facilitate brownfield…
Oil Sands Consistent and Sustainable Growth(1) 20,000 20,000 19,000 19,000 18,000 Based on 7 day rolling average production since July 2010: 18,000 17,000 17,000 16,000 2011 full year 16,000 15,000 Algar Pod 1 guidance range:…
OPTIMIZATION THROUGH INNOVATION(1) Innovation Impact Status Low Pressure Reduces SORs Ongoing SAGD Reduces impact of lower pressure lean zone/gas cap in Pod One (Pod One and (Downhole pumps) Enhances and stabilizes production…
Oil Sands Pricing Over Last Two Years(1) Bitumen Price Comparison WTI WCS DilBit price at W/H Diluent price delivered to site Bitumen price at W/H Bitumen price at W/H (with Hedge) 140 130 120 110 100 Price (C/bbl) 90…
Strong Bitumen Netbacks Connacher has demonstrated an ability to generate strong bitumen netbacks at a range of commodity prices Sensitivity Analysis to 2010 Actual Netback (C/bbl of bitumen, except where noted) 2010 Actual Netback…
ACT II: STREAMLINED BALANCE SHEET Long Term Debt ( millions) Face Value Post- May 31, 2011 Senior Secured Notes Refinancing 350mm Senior Second Lien Notes due August 2018 8.75% 350 US550mm Senior Second Lien Notes due August 2019…
ACT III: ASSET RATIONALIZATION(1) Raised 80mm from sale of assets in 2011 to date GTE monetization anticipated in 2011 Other non-cash generating assets may be sold Potential total 2011 proceeds of 150mm from asset sales; redeployed…
ACT IV: LIGHT OIL RESOURCE PLAY TWINING(1) Capitalize on horizontal expertise, technological advances, existing land base, project approach 100+ well locations identified near Three Hills producing area Targeting light crude oil in…
ACT V: PRODUCTION GROWTH FROM RESERVES(1) 31/12/10 31/12/10 Bitumen Reserves/Resources mmbbl 10% PV mm Proved Reserves (1P) 180 1,397 Proved and Probable Reserves (2P) 500 2,966 Proved, Probable and Possible Reserves (3P) 604 3,713…
GREAT DIVIDE EXPANSION PROJECT(1) EIA submitted to expand SAGD production capacity at Great Divide to 44,000 bbl/d anticipate late 2011 approval Proposed 24,000 bbl/d expansion to Algar site May be accomplished by two…
ENCORE: DOWNSTREAM ASSET MONTANA REFINERY Profitable 9,500 bbl/d heavy oil refinery located in Great Falls, Montana Captures a portion of the heavy oil price differential to which oil sands operations are exposed Produces gasoline,…
2011 PRODUCTION FORECAST AND CAPITAL BUDGET(1) Production 2010 Actual Bitumen (bbl/d) 14,500 16,500 8,299 Conventional (boe/d)(2) 1,000 1,400 2,400 Total Upstream (boe/d) 15,500 17,900 10,699 Capital Budget millions Maintenance and…
CONNACHER REPRESENTS GOOD VALUE Per BMO Research Sector Comment EV/1P EV/2011E 2011P/NAV May 24, 2011 (1) EV (B) Reserves Boe/d (BMO) CLL 1.3 6.90 79,313 0.6 Athabasca Oil Sands 5.4 NA NA 1.0 MEG Energy 9.4 15.51 375,793 1.0…
CONNACHER IS VALUABLE(1) Estimated Net Asset Value (NAV) millions Proved and Probable Reserves (2P) (2) 3,101 Best Estimate Contingent Resources (2) 571 Land Value (3) 15 Book Value of Refinery (5) 81 Investment in Gran Tierra (legacy…
SIX REASONS TO OWN CONNACHER(1) Value Recognition Production Growth from Reserves Impact of Innovation in Oil Sands Impact of Light Oil Resource Play Prospects Improved Balance Sheet and Metrics Strong Liquidity Prospect…
EXPERIENCED MANAGEMENT TEAM Name Title Experience Richard A. Gusella Chairman & CEO since May 2001; Chairman effective May 2010; Chief Executive Officer MA (Economics) Approximately 40 years industry experience Peter D. Sametz…
LARGE PRODUCING BITUMEN RESERVE BASE(10) As at December 31, 2010 mmbbl 10% PV mm (9) Proved Reserves (1P) (1) 180 1,397 Proved and Probable Reserves (2P) (1)(2) 500 2,966 Proved, Probable and Possible Reserves (3P) (1)(2)(3) 604…
FIVE YEAR TRACK RECORD OF ADDING VALUE(1) Bitumen PV 10% (mm - before tax) 4,000 3,500 Proved Probable Possible 3,000 2,500 2,000 1,500 1,000 500 0 Dec. 2005 Dec. 2006 Dec. 2007 Dec. 2008 Dec. 2009 Dec 2010 26 C/H 75…
STEAM ASSISTED GRAVITY DRAINAGE PROCESS Well Pad and Plant Cap Rock Impermeable Cap Rock Layer Steam Injection Well Oil Production Well Steam Chamber Oil Sands Steam injected and rises, producing heat Hot bitumen…
TYPICAL SAGD WELL LIFE CYCLES Cap Rock Oil Sands Potential Potential infill well infill well Circulation Peak SAGD Production Declining SAGD Production 90 days 12 to 18 months 4 to 6 years 28
PUMPS REDUCE SORS(1) Twelve wells on ESPs (seven are high temp ESPs) One north well on PC pump Four north wells converted Pod One back to gas lift North wells commenced methane co-injection Three wells on high temp ESPs at…
EXPLORATION SUSTAINS GROWTH AND ADDS VALUE Systematic leasehold Great Divide evaluation Quigley 59 coreholes and one observation well drilled and 3D seismic at Thornbury completed in Q1 2011 Pod One Algar Thornbury Only 17%…
HEDGING STABILIZES CASH FLOW Crude Oil Hedges (CLL is long crude oil) WTI Swaps: US85.25/bbl on 2,000 bbl/d from Apr June 2011 US90.60/bbl on 2,000 bbl/d for calendar 2011(1) WTI Costless Collar: US80/bbl by US96/bbl on 2,000 bbl/d…
SAGD OIL SANDS GREENHOUSE GAS EMISSIONS(1) GHG from SAGD oil sands are generally comparable to domestic US and imported crude oil, on a life-cycle basis Connacher is reducing its GHG footprint 1) Refer to slides 36 and 37 for…
OIL SANDS EMISSIONS VERSUS COAL 34
CONNACHERS ENVIRONMENTAL REPORT CARD(1) Small footprint Pod One < 2% of Manhattan Island Efficient water usage Sourced from non-potable sub-surface aquifer 1) Refer to slides 36 and 37 for forward looking information…
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