CIBC Whistler Institutional Investor Conference January 22, 2014
CORPORATE IDENTITY Our foundation: 4.0B Enterprise Value PEOPLE RESERVES PRODUCTION OPPORTUNITIES 376 Employees 372 mmboe* 76,000 boe/d 1,650 Locations 13% Insider Ownership 14 year RLI 90% Operated 89% Horizontal 3 * 2P at…
CORPORATE IDENTITY Our asset base: British Columbia Alberta Ft St John Access to 4.1 million acres Deep Basin 78 operated facilities Edmonton 6,200 km of operated pipelines Focus Areas West Central Calgary Vancouver BNP…
BUSINESS PLAN Shareholder Return = Income + Growth 10% 20% 10% 10% 5% 10% 5% SPENDING 0% 0% 0% Income Return Target Total Return Target Growth Return Target VALUE CREATION 5
STRATEGY The right ingredients: CONCENTRATE OPERATIONS ON EXCELLENT ASSETS TOP QUALITY RESERVOIRS + IDENTIFY AND EXECUTE WITH EXCELLENT PEOPLE EFFICIENCY AND PRECISION = VALUE CREATION 6
CONCENTRATION Concentration of land: 2009 2013 Alberta British Columbia 0.8 million acres 2.1 million acres Edmonton Deep Basin Deep Basin Vancouver Calgary Multi zone potential Substantial resource West Central West…
CONCENTRATION Concentration of production and reserves: 80,000 400 70,000 350 60,000 300 Production (boe/d) Reserves (mmboe) 50,000 68% 250 80% 30% 40,000 200 16% 30,000 150 20,000 100 10,000 50 0 0 2008…
EFFICIENCY Finding, development and acquisition costs*: 35.00 30.00 3-year Average (/boe) 25.00 20.00 15.00 10.00 5.00 0.00 BNP Bonavista Peer Group 9 *Proved + probable, including FDC
EFFICIENCY Adding production more efficiently: 40% more efficient than 2012 E&D efficiency (/boed, trailing 12-mos) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1…
VALUE CREATION Alberta Montney Edmonton Six plays account for 1,019 Calgary horizontal locations Deep Basin 2013 Location Breakdown by Area Bluesky Wilrich Wilrich 23% 1,650 locations Glauconite 12% 1,465 Hz (89%) 65%…
VALUE CREATION Economics of key plays in focus areas*: Recycle Ratio On-stream Cost IP12** (/boed) 4 25,000 20,000 3 15,000 2 10,000 1 5,000 0 0 Glauconite Glauconite Bluesky Ellerslie Montney…
VALUE CREATION Building value with liquids rich natural gas plays: 70 bbls/mmcf 90 bbls/mmcf 38 bbls/mmcf 155 bbls/mmcf 0% C2 22% 23% 29% C3 35% 35% 42% 29% C4 18% 52% C5 37% 29% 13% 10% 20% 6% 9.00 Revenues*…
VALUE CREATION Solid foundation for growth in focus areas: MONTNEY, 49 gross wells / 319 million spending ELLERSLIE, 138 gross wells / 552 million spending WILRICH, 103 gross wells / 314 million spending BLUESKY, 42 gross wells…
VALUE CREATION Production growth: 120,000 2018 110,000 boe/d 110,000 100,000 Production (boe/d) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 2014 2015 2016 2017 2018 Base Glauconite Cardium…
KEY PLAYS West Central area 2014 E&D budget of 328 million: Glauconite: 186 horizontal wells drilled Operating cost 3.00/boe 400 horizontal locations Glauconite 2014 program 58 wells Cardium: 115 horizontal wells drilled…
KEY PLAYS Deep Basin area 2014 E&D budget of 121 million: Bluesky: 70 sections of land Bluesky 65 horizontal locations 2014 drilling program 7 wells Latest well test = 13 mmcf/d Wilrich Wilrich: 75 sections of land 120…
2014 BUDGET Capital allocation: Capital % of Value Gross Wells ( millions) Capital Glauconite 58 161 39% Cardium 21 53 13% Ellerslie 11 44 11% Bluesky 8 21 5% Wilrich 11 42 10% Montney 2 13 3% Additional Deep Basin…
GUIDANCE 2014 Guidance: 2012 2013 2014 Actual Estimate Forecast Capital expenditures ( millions): Exploration and development 402 437 500 550 Acquisitions and divestitures (11) 23 - Total 391 460 500 550 Production (boe/d)…
SUMMARY Why Invest in Bonavista Targeting 5-7% annual growth plus a 5% yield Experienced leadership team - average tenure of 11 years Operations focused in top quality reservoirs Executing with improved efficiency 21
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