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SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources

Southern Pacific Resources · Nov 14, 2012 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 1
    CORPORATE PRESENTATION NOVEMBER 2012
  2. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 2
    The Southern Pacific Strategy FOCUSED: We develop and produce bitumen and heavy oil using horizontal wells and steam. INDEPENDENT: We control and operate 100% of our production and 87% of our lands, allowing us to develop at a…
  3. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 3
    STP Overview Common Shares (Oct. 31, 2012) Trading Symbol TSX: STP Shares outstanding basic 397 Shares outstanding fully diluted 425 Insider Ownership fully diluted 4% Average daily trading volume (last 6 mo avg.) 1.0 million…
  4. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 4
    STP Reserves and Resources (effective June 30, 2012) 344 350.0 Consistent Growth in all reserve categories over the past 3 years 300.0 249 All reserves are split between STPSenlac 250.0 and STPMcKay Liquids (mmbbl) 2009…
  5. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 5
    Strategic Assets Alberta: 402 sections of oil sands leases with 87% average working interest (224,312 net acres) Saskatchewan: Average of 3,500 barrels per day (bbl/d) of 100% working interest heavy oil Refer to slide 27 and 28…
  6. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 6
    STP-Senlac Thermal Project Phase K to be drilled in Q42012 STP owned and operated for 3 years Average 2012 Production Rate approx. 3,500 bbl/d Average SOR = 2.5 Experienced operations personnel One pad of 2-3 SAGD well pairs…
  7. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 7
    STP-Senlac: Steady Cash Flow 25 200 180 20 160 140 15 120 Cumulative Millions Millions 100 10 80 60 5 40 20 0 0 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 2011-Q2…
  8. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 8
    STP-Senlac: Consistent Netback Pricing 120.00 100.00 80.00 Heavy Diff Quality/Trans. Diluent 60.00 Royalties Fuel & Power Fixed Opex 40.00 Operating Netback WTI (C/bbl) 20.00 41.62 41.27 36.63 37.40…
  9. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 9
    STP-McKay Thermal Project 45 km NW Ft. McMurray 10.5 section project area 100% STP working interest Phase 1 First Steam July 1, 2012 Phase 1 Design: 12,000 bbl/d oil STP Lands +33,600 bbl/d steam Suncor MacKay SAGD Project…
  10. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 10
    STP-McKay: First Steam Attained First steam to well pairs commenced July 1st Steam has circulated for 3-4 months to warm up reservoir around the well pairs Oil production has commenced and production ramp up is underway Refer to…
  11. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 11
    STP-McKay: Central Process Facility Facility is running well On Time Load Factor since July 1, 2012 is greater than 99% Generating all electrical power through 2 cogens, a 3rd on standby Both steam generators running Emulsion…
  12. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 12
    Bitumen Sales Have Commenced Well pairs are being systematically converted from warm up to production, production levels have begun to ramp Ramp to full design capacity (12,000 bbl/d) is expected to take 12 -18 months from October,…
  13. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 13
    STP-McKay: Weekly Estimated Production 800 100 Circulation Phase Ramp Up Phase 90 700 80 600 Average Daily Bitumen Production (bbl/d) 70 Cumulative Bitumen (Mbbls) 500 60 400 50 40 300 30 200 20 100 10…
  14. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 14
    STP-McKay: Gulf Coast by Rail Market Solution 5 year deal starting Jan. 1, 2013 4,500 km by rail Terminals in Lynton, AB, and Natchez, MS Reduces diluent requirements Improved netbacks Secure access to market Refer to slide…
  15. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 15
    Dilbit Marketing Update 140.00 Historical Relationship between Crude Markers (November 2011 October 2012) 130.00 130.00 120.00 120.00 110.00 WTI, Brent (US/bbl) R = 0.4399 R = 0.8935 110.00 100.00 90.00 100.00 80.00 90.00…
  16. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 16
    STPs Rail Marketing: Netback Analysis Historical Bitumen Pricing of Alberta vs. USGC (STPMcKay Plant Gate Netbacks) 70.00 60.00 50.00 40.00 (C/bbl) 30.00 20.00 10.00 0.00 Jun25 Jul09 Jul23 Aug06 Aug20 Sep04 Sep17…
  17. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 17
    STP-McKay: Phases 1 and 2 Layout (circa 2016) Well pads Phase 2 18,000 bbl/d Phase 1 + SOR = 3.5 Expansion 18,000 bbl/d SOR = 2.8 Continuous pay fairway Original footprint of Phase 2 site STP-McKay Phases 1 and 2 will…
  18. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 18
    STP-McKay Phase 1 Expansion: Plot Plan Additional equipment can all be situated on original plant site, minimizing overall footprint Expanded Boiler Expanded Water Additional Steam Feed Water Treatment Generation Additional…
  19. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 19
    STP-McKay Phase 1 Expansion: Capital Cost Cost per design Capital Budget barrel ( million) (/bbl) Phase 1 Expansion (6,000 bbl/d) 150 25,000 costs include inflation escalation & 6 ( 36% less than original construction)…
  20. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 20
    STP-McKay Phase 1 Exp. & Phase 2 Schedule Application Approval Engineering & Procurement Phase 1 Expansion Construction First Steam First Oil 6,000 bbl/d Engineering & Procurement Construction Phase 2 First…
  21. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 21
    Existing Projects: Defined Growth Forecast represents real projects that are on production, being constructed or in the application process First oil forecasts: STP-McKay Phase 1: Q4 2012 (12-18 months to full capacity) STP-McKay…
  22. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 22
    STP-McKay: Future Upside STP-McKay 100% working interest in Potential Thermal Project Expansion area 59 sections (environmental boundary background work underway) STP has full-time operations in this area Phase 1 Other…
  23. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 23
    STPs Upside: Additional Oil Sands Leases Anzac Hangingstone 14 coreholes 29 coreholes 2D seismic, ERT 2D seismic 75 Sections, of which 19 non- 66 Sections prospective sections will be reclaimed by AB Govt under LARP Ells…
  24. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 24
    Summary of STPs Recent Financing Activities STPMcKay 275 million USD construction 2nd lien term loan STPMcKay ramp up STPSenlac and approval of purchase STPMcKay STPMcKay Phase 1 Expansion 108.4 million 173 million First Steam…
  25. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 25
    STP: Net Asset Value Estimate ( million) NPV 10% NPV 8% (1) NPV of Proved Plus Probable Reserves, BT discounted (249 mmboe) 1,593 2,009 (1) NPV of Best Estimate Contingent Resources, BT discounted (525 mmboe) 959 1,696 September 30,…
  26. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 26
    2012/13: An Exciting Fiscal Year for STP Only new SAGD Project starting up in Alberta for 2012 STP-McKay Thermal Commissioning of facility complete and circulation of steam commenced in July 2012 Project Warm up of wells and convert to…
  27. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 27
    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…
  28. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 28
    APPENDIX 30
  29. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 29
    Potential Customers / Refineries Customer Map Chevron Pascagoula Citgo Corpus Christi Citgo Lake Charles Natchez MS Conoco Westlake ExxonMobil Baton Rouge Exxon Chalmette ExxonMobil Beaumont ExxonMobil Chalmette…
  30. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 30
    STP-McKay: Excellent SAGD Reservoir Facies Name % Shale Sample Photo Upper Clean F1 2.5% 100% Sand F1 90% F1 80% 70% Bioturbated F2 F2 9.0% Facies 60% 50% F2 40% Lower Clean F3 2.5% Sand 30% F3 20% 10% F3 F4…
  31. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 31
    STPMcKay Phase 1 Expansion: Water Handling Capacities (existing and proposed with Expansion) Current Facility Bottleneck Make Up Water 5% Water Treatment Steam Generation Current 44.0 Mbbl/d Current 37.4 Mbbl/d SAGD Injector…
  32. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 32
    STP-McKay: Full Bitumen Exploitation Plan Conduction and cyclic steam SAGD injector SAGD producer Infill horizontal well Refer to slide 27 and 28 for cautionary statements about forwardlooking information. 34
  33. SOCIETE GENERALE FIRSTENERGY CAPITALS ANNUAL ENERGYGROWTH CONFERENCE – Southern Pacific Resources – slide 33
    STP-McKay Thermal Project (commissioned June, 2012) Construction Camp Wellpad 102 (Temporary) Wellpad 101 Operations Camp Wellpad 103 (well not drilled yet) Central Process Facility 29 km Road Refer to…

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