Pure Play Montney Producer with a proven operating team and industry leading cost structure creates a solid foundation for multi-year growth Investor Presentation TSX, NYSE: AAV June 2014 Page 1
Advantage At a Glance Intermediate Canadian Montney Producer Listed on TSX and NYSE AAV TSX 52-week trading range (Cdn) 3.55 - 7.06 Shares Outstanding (basic) 169.1 million Current Production 135 mmcfe/d (22,500boe/d) Market…
Industry Leading Pure Play Montney Producer Advantages Pure Play Montney holdings are concentrated in the Glacier, Alberta area. We are a highly focused Montney only producer with 25 current employees, Glacier 100% owned operatorship…
Three Year Fully Funded Glacier Growth Plan : 100% Production per Share and 190% Cash Flow per Share Growth Development Plan (3) Phase VI Phase VII Phase VIII Phase IX Q213 to Q214 to Q215 to Q216 to Q114 Q115 Q116 Q117 Current…
Three Year Development Plan Strong Cash Flow Growth Total debt/ forward cash flow decreases as cash flow grows significantly based on an average natural gas price of Cdn 3.75/GJ (2014-2017) The 12 month period post Q2 2017 generates…
Three-Year Growth Plan Reinforced by Solid Financial Strategy Strengthened Balance Sheet 94 million gross proceeds from Longview share sale 17.5 million from sale of Questfire investments 85 million March 31, 2014 bank debt 3…
Recent Achievements Support Growth Plans Credit facility increased by 100 million to 400 million 21% drawn based on March 31, 2014 bank debt of 85 million providing significant financial flexibility Track record of production growth…
Proven Operating Performance Since 2008 Advantage has drilled 117 Montney wells across our Glacier land block and developed significant expertise to execute and optimize future capital programs and operations Advantage grew…
Strong Reserves Growth and Replacement Efficiencies 580% 2P Reserves At Year-end 2013: growth since 2008 3 Year F&D 1.06/mcfe & Replaced 840% of 2013 Glacier production at a 3 Year Recycle Ratio 1.33/mcfe 2P F&D cost 2.7x 2P…
Delineation Drilling Led to Pentastack Development Plan at Glacier Over 1,305 Locations Remain Undrilled Beyond 2017 - Post Development Plan 1,400 remaining drilling locations Five 50 meter intervals are available for development…
Pure Play Focus Creates Industry Leading Cost Structure Advantages full cycle margin between realized price and cash costs is among the top Montney producers. 2015 liquids production will further increase the realized price and…
Netback and Recycle Ratio Contributes To Strong Drill Economics Liquids Rich Gas Netbacks and Recycle Ratios Dry Gas (/mcfe) (/mcfe) 2P F&D Average Undeveloped Location (1) 1.10__ . 1.57__ . Glacier Operating Netback (2):…
Glacier Montney Well Economics(1) Dry Gas Liquids Rich Gas Upper and Lower Montney (2) Middle Montney Intervals (3) 10.9 million Rate of Return (%) 10.5 million 8.8 million 7.9 million 6.7 million 4.9 million Frac…
Recent Slickwater Fracd Wells Support Budget Type Curve (data updated to April 30, 2014) High rate wells are Recent Upper and Lower Montney wells completed with slickwater fracs are typically rate outperforming Phase VII Budget type…
Upper Montney: Exceptional Well Performance Across Glacier Production from slickwater fracs exhibiting clean-up after test and shallower declines 21 mmcf/d initial production restricted to 10 mmcf/d 21 mmcf/d 11 mmcf/d record…
Lower Montney: New Wells Confirm Solid Results Across Glacier 12 mmcf/d Production from slickwater fracs initial exhibiting clean-up after test and production shallower declines 7 mmcf/d 10 mmcf/d 5 mmcf/d production for 2…
Recent Middle Montney Wells Support Budget Type Curve (data updated to April 30, 2014) Production Rate vs Time New Phase VI 12-2 well started production at restricted rate of Middle Montney wells have 9.5 mmcf/d. Restricted to…
Middle Montney: Results Confirm Liquid Trend and Improved Well Rates Liquid yields are higher in east Glacier and pervasive through entire land block 9.5 mmcf/d initial production 8 mmcf/d restricted to 6 26 bbl/mmcf 8 mmcf/d…
Glacier Phase VII Middle Montney Liquids Extraction Plans Additional gas compression to be added here Shallow cut liquids extraction process to be installed in Q2 2015 at existing 100% owned Glacier gas plant Phase VII program…
New Montney Lands Prospective for Natural Gas Liquids(1) Phase VI drilling results confirm increasing liquids in east Glacier and extends liquids potential to new lands Technical work to date indicates thick Montney formation and…
Approved Glacier Phase VII Budget and Guidance Approved Phase VII Budget and Guidance(1) 12 Months ending March 31, 2015 Average Production (mmcfe/d) 134 to 139 Royalty Rate (%) 5% to 6% Operating Costs (/mcfe) 0.25 to 0.30 Capital…
Advantage Summary Growing Our Montney at Glacier Focused on our world class 16 Tcf TPIIP Glacier Montney property and development of its 4.2Tcfe contingent resources and 1.7 Tcfe 2P reserves(1) Additional 43.25 net sections of new…
Appendix Page 23
Montney Siltstone Supports High Reserve Recoveries Shale Silt Sand 84 gross (77 net) sections - Historic type curve based on 86 wells with an average of 11.5 fracs per well The Montney formation is a siltstone and sand…
Glacier Major Pipeline Access Page 25
2012 Core and Completion Studies Increased Resource and Improved Well Results Core study determined original density porosity logs have to be re-calibrated Re-calibration aligned log to actual IP30s on open hole core porosities…
Summary of Well Tests Referenced in Presentation Slides Final Gas Final Flow Normalized Estimated Test Rate Test Period Pressure Final Gas Test Rate (1) C3+ liquid yield Well Formation (mmcf/d) (hrs) (kpa) (mmcf/d) (bbls/mmcf) (2)…
Glacier Drilling Economics and 2P Recoveries per Interval ( millions unless otherwise indicated) Glacier Drilling Economics PVs 10% Discount(1) Dry Gas(3) Liquids Rich Gas(4) AECO C natural gas price (/mcf)(2) 3.00 4.00 5.00 3.00…
Glacier March 31, 2013 Contingent and Prospective Resource Assessment Advantage engaged our independent qualified reserves evaluator Sproule Associates Ltd. (Sproule) to update the resource analysis and provide a 2C evaluation (Sproule…
Glacier Contingent and Prospective Resource Assessment Low Best High UPIIP (AAV Working Interest, Sales) (3) Estimate Estimate Estimate Natural Gas Prospective Resources (Tcf) 0.342 0.556 0.776 Unrecoverable UPIIP (Tcf) 1.561…
Glacier Contingent and Prospective Resource Assessment 2C (Best Estimate) Contingent Resources Net Present Values Before Income Taxes Gross 2C Recoverable ( millions) Gross Number of Hz Resources per Location Interval Well…
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