Bank of America Merrill Lynch 2011 Global Energy Conference November 14 16, 2011
Corporate Profile Listing NYSE: PWE TSX: PWT Market Capitalization(1) 8.6 Billion Shares Outstanding (Q3 2011) 470 million Liquidity (shares/day) 3.0 million 2011 Production Forecast 162 164 mboe/d (66% liquids) Average gravity of…
Canadian Oil & Gas Evolving Landscape Light Oil Significantly Expanded Activity Light Oil Natural Gas Oil Sands Oil Sands 1940 1980 1980 2000 2000 2010 Steady Growth Natural Gas Reduced Selective Development 5
Strategic Direction Adding Value Field Netback Comparison Oil Gas 60 Netback (/boe) 12 Converted 6:1 Price assumption: US85/bbl WTI, CDN4/mcf AECO, US/C FX par. Note: Definitions of non-IFRS terms can be found on page 23,…
North American Peers Production 100,000 500,000 boe/d Liquids Exposure Gas Oil & NGL 100% Oil & NGL Production (%) 80% 60% 40% 20% 0% Source: Company reports 7
Hedging WTI US 120 2012 Hedging Position 105 100 85 80 65 60 40 20 0 2009 2010 2011 2012 2013 Note: WTI pricing is a combination of both historical and future strip pricing. 8
Strategic Direction Adding Value Light Oil Growth 2011e 66% Liquids 57% 51% Light Oil Dec 2011e Liquids 39% Light Oil Jan 2010 9
Capital Strategy Capital WTI Price Financial Capital Protect Balance Sheet 65 Anticipate Maintaining Dividend No Production Growth for Short Term Maintain Balance Sheet Production Growth 85 Portfolio Proceeds Redeployed Focused…
2012 Capital Program & Guidance 85% of drilling capital to be spent on the four main light oil development projects Capital spending of 1.6 1.7B net Average annual production of 174,000 178,000 boe/d (Prior to dispositions) 2010…
Light Oil Development Penn West has the most leverage to large scale oil development using horizontal Carbonates multistage technology in North America Cardium Inventory Viking to drive 5 10 years Growth Penn West land…
Cardium Light Oil Development Focused Drilling Program Cardium Trend 665,000 net acres 7,500 - 8,500 boe/d incr. production (2011e) 40o API crude quality 2011 capital estimate: 350 - 450MM 2011 well count: 90 - 110 2012…
Cardium Light Oil Development Focused Drilling Program R10W5 120 miles T50 115 miles Alder Flats T45 West Pembina Willesden Green T40 Red Deer Penn West land PW Forecast 2012 well PW 2011 well PW 2010 well…
Carbonates Light Oil Development Focused Drilling Program Carbonates Trend 380,000 net acres Carbonates 4,500 5,500 boe/d incr. production (2011e) 40o API crude quality 2011 capital estimate: 220 - 250MM 2011 well count: 38 - 44…
Carbonates Light Oil Development Drilling Program R20 R1W5 250 miles T95 Sawn Lake Slave Point Penn West land PW Forecast 2012 well Red PW 2011 well Otter Earth PW 2010 well Industry well 225 miles Peace River Slave…
Light Oil Development Summary Drilling inventory for next 5 10 years Low upfront royalties All trends deliver high IRRs Infrastructure control 18
Resource Appraisal Cordova Shale Gas Joint Venture Using JV & selective spending, unlocking Carbonates large-scale value adding projects for mid/long-term Peace River Oil Partnership EOR Viking Penn West land…
Cordova Gas Project Resource Appraisal Cordova Major natural gas Cordova Shale Gas project aligned with ShaleVenture Joint Gas Asian market Joint Venture through JV with Mitsubishi Corp British Columbia Prince Rupert…
Peace River Oil Partnership Resource Appraisal Low Cost Appraisal of Cordova Large Oil Resource Shale Gas for Production Joint Venture Growth in 5 year+ Timeframe Peace River British Oil Partnership Columbia Prince Rupert…
Penn West Balance Point Proving Oil Potential / Prudent Financial Management Oil Development Dividend Financial Management 22
Loading...
