May 15, 2015 Investor Presentation www.andersonenergy.ca
3 Why Invest in Anderson Focused Development on Cardium Horizontal Wells in Central Alberta Focus is on growing light oil and condensate production - objective is to have production weighting exceed 50% oil, condensate & NGL…
4 Why Invest in Anderson 35 Million Non-Dilutive Financing Closed January 23, 2015 Improves 2014 year end liquidity by 34.5 million, net of 2015 expenses of 0.5 million. Continues rationalization of shallow gas assets. Transaction…
5 Why Invest in Anderson Results for Three Months Ended March 31, 2015 Funds from Operations 0.3 million Production 2,704 BOED (46% oil, condensate & NGL), Cardium production 2,006 BOED (58% liquids) 320 BOED of production shut in…
6 Why Invest in Anderson 2014/2015 Winter Drilling Program Average IP 30 for the nine Cardium wells with more than 30 days of production data has been 413 BOED (85% oil, condensate & NGL). Average oil, condensate & NGL IP 30 for…
7 Why Invest in Anderson 2013/2014 Winter Drilling Program Eight Cardium horizontal wells drilled in late 2013 & first half of 2014, with an average IP 30 of 511 BOED (53% oil, condensate & NGL) New Cardium Liquids-Rich Gas…
8 Why Invest in Anderson Cardium Well Performance Average IP 30 for 19 Cardium well completions in the Willesden Green area since January 2012 has been 469 BOED (68% oil, condensate & NGL). Recent industry publications indicate…
9 Why Invest in Anderson Cost Saving Measures: 2015 cash G&A costs are estimated to be reduced to 7 million per year down from 8.3 million in 2014. 2015 operating expense per BOE is estimated to be 10.30/BOE down from 12.43/BOE in…
10 Why Invest in Anderson Cardium Production: Jan 2014 to Jan 2015 Cardium growth rate: BOED 137%, oil 81% 2014 Cardium production was 1,927 BOED, Q4 2014 was 2,260 BOED Q1 2015 Cardium production of 2,006 BOED with 320 BOED…
11 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes (March 31, 2015 296,200 shares/d Management & Directors own 12 months trailing) approximately: 11% of the common shares…
12 2015 Operating Cost Reduction 2015 Operating Cost Reduction Initiatives: Most of the initiatives were implemented in March/April and would benefit Q2-Q4 2015 14-18% reduction in contract operating rates Buyout of rental…
13 Horizontal Well Technology Update In the recently completed drilling programs, the Company optimized the trajectory of the horizontal well through the Cardium formation to obtain better well performance. The Company continues…
14 Shallow Gas Optimization Update On January 23, 2015, the Company sold approximately 500 BOED of predominantly shallow gas from 78 wellbores. The Company is marketing the sale of its remaining shallow gas properties in Q2 2015.…
15 GLJ Reserves Report Effective December 31, 2014 GLJ estimated the Companys reserves to be: 3.7 MMBOE PDP, 5.3 MMBOE TP and 9.2 MMBOE P&P. The oil, condensate & NGL contribution was 38%, 40% and 44% of the totals respectively.…
16 GLJ Reserves Report Effective December 31, 2014 GLJ recognizes 30% of Companys drilling inventory as P&P reserves. Total Company NPV 10 P&P was 96.1 million, which is 4% less than last year. The average price forecast reduction…
17 Managing Our Risk Hedging Philosophy Hedge produced oil and natural gas volumes to protect capital program and reduce cash flow volatility Continue to evaluate the merits of further price management strategies as market…
18 Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium horizontal drilling Guidance First Half 2015 2,200-2,400 BOED production (46% oil, ALBERTA condensate & NGL), includes impact of…
19 Operations Overview Cardium horizontal drilling focused on the halo or T50 periphery of major Cardium fields The best wells are positioned in good quality rock T45 Away from potential pressure depletion and old waterfloods…
20 Operations Overview Evolution of Cardium Drilling & Completion Practices 7,500 Impact on Costs and Productivity 500 469 BOED, IP30 6,750 450 Slickwater Fracs (19 wells) Jan- 2012 to present 6,000 400 LEF Fracs (20 wells) Aug-…
21 Operations Overview Slickwater Frac Stimulation Carrier fluid is like soapy water with no gellant and hence the term slickwater. Both broad industry and Anderson specific data indicates slickwater fracs result in significant…
22 Operations Overview Light Oil Horizontal Locations May, 2015 Gross Net (1) Area Locations Locations Willesden Green Cardium 75 56.0 West Pembina/Buck Lake Cardium 26 7.8 Glauc/Belly River 8 7.3 TOTAL DRILLABLE 109…
23 Summary Closed reorganization transaction on January 23, 2015. Net of expenses, the Company improved liquidity by 33.5 million. Q1 2015 production of 2,704 BOED (46% oil, condensate & NGL). The Company sold 500 BOED of production…
24 Summary Average IP 30 for the nine Cardium wells in 2014/2015 program is 413 BOED (85% oil, condensate & NGL). Long-Reach Cardium well IP 30 of 651 BOED (92% oil, condensate & NGL). An industry publication indicated this well is…
25 Summary Guidance for first half of 2015: 2,200-2,400 BOED production (46% oil, condensate & NGL). TCPL outages were less than forecast in the first quarter, therefore production guidance is at the upper end of the estimated range,…
www.andersonenergy.ca Head Office Contact Information 1000, 555 4th Avenue SW Brian H. Dau Calgary, Alberta T2P 3E7 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
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