CORPORATE PRESENTATION May 2015 All amounts in Canadian dollars unless indicated otherwise
2015 Focus: Flexibility and Strength 1. Balance Sheet in excellent shape 2015 plans shaped around maintaining this 2. 2015 Guidance 22,500 to 24,000 Boe/d & capex reduced to 270-290MM GRANDE PRAIRIE WAPITI 3. Strong Economics…
NuVista: Adjusting to Current World Pricing This too shall pass but the duration is uncertain. In the meantime, NVA has critical success factors in place for times like this Strong balance sheet and it comes first Play economics…
The Alberta Condensate-Rich Montney A sweet spot in a world class play 1. Scalable/Repeatable Deposition on the shelf edge not isolated pockets Gas charged top to bottom Over-pressured low water saturation High Quality 2. Porous…
The Alberta Condensate-Rich Montney Production and HZ Well Count Increasing Dramatically Elmworth to Kakwa Montney HZ Activity Update* High level of industry activity continues still 14 T71 rigs drilling T70 500 Montney HZ wells…
2014 Year-end Reserves Report Montney transition in full-swing growth poised to continue 2014 Year-end Reserves Report GLJ Petroleum Consultants Ltd. Montney DPIIP increased by 63%* PDP reserves volume increased 61% before production…
Contingent Resource and Reserves Significant delineation of resource and conversion to reserves in 2014 Middle Montney 'C' Middle Montney 'B' Discovered: 71,894 Acres (112 sections) 50% of Total Gross Acres Discovered: 114,225 Acres…
2015 Business Plan High capital flexibility for low commodity price period Capital reduced 25% to 280 million, production guidance maintained long term plans intact Using our flexibility to reduce drilling pace and temporarily,…
Montney Operations Activity Update Flexibility in drilling pace focus on lowest-risk most economic PDP additions Pipestone T 70 45 wells on production by mid-year 2015 up 37% from year end 2014 Elmworth Development Block 2-3 rigs…
Bilbo Development Block The best plays still add value while weathering the commodity price storm Inputs** Economics 100 total locations* in development area Well performance continues to improve Dev Well Capital 8.1MM NPV10 6.7MM…
Montney Performance South Block (Bilbo) 1,800 24 Bilbo Well Production Rates (Boe/d) Cumulative-to-Date Bbls/MMcf 7 IP30 IP90 IP180 IP360 Condensate 6 1,500 20 Butane Bilbo Type Propane 77 1,372 1,071 845 629 Curve 2013 and…
Elmworth Development Block The best plays still add value while weathering the commodity price storm 100 *Total locations identified within Inputs** Economics development area Dev Well Capital 8.1MM NPV10 4.7MM Typecurve increased…
Montney Performance North Block (Elmworth) Outperforms 4.4 bcf Type Curve 6 bcf Type Curve First 3 NVA Wells Last 4 NVA Wells (Big Fracs) 10,000 Cumulative-to-Date Bbls/MMcf 9,000 Condensate 9 Butane Elmworth Well Production Rates…
Wapiti Montney Egress Built-in growth with high capital flexibility in the short term and still more options for the long term Loop pipeline to existing SemCAMS K3 gas plant; expected startup early Q32015 SemCAMS compressor station…
Wapiti Montney Processing Capacity Firm Capacity and line-of-sight to long term growth With TOP flexibility built in Wapiti Montney Raw Gas Processing Capacity And Estimated Equivalent Montney Production 200 New Sour Gas Plant…
Commodity Price Risk Management WTI Oil Very strong hedge position Crude Oil Hedge Position 4,000 100.00 95.00 3,500 90.00 3,000 Hedged Volume, Bbl/d 85.00 2,500 Price, C/Bbl Oil hedging very 80.00 2,000 strong…
Commodity Price Risk Management AECO natural gas Very strong hedge position Natural Gas Hedge Position 100,000 4.50 and Hedging for 90,000 gas is very strong 4.00 into 2017 80,000 3.50 Hedged Volume, GJ/d 70,000 3.00…
NuVista 2015 Guidance Commodity prices It's a New World Very strong hedge book mitigates the impact Finishing what we started Q1 winter drilling program reduced prudently but still intact North (Elmworth) compressor station to be…
NuVista: Looking Forward Flexibility for Defensive Environment Strength should commodity prices rebound Balance sheet comes first we will use our flexibility to weather the storm Top plays win at any price Focused capital…
APPENDIX May 2015 22
Montney D&C Drilling Drilling time and cost reduction continues and low commodity price environment will surely bring additional service/supplier cost reductions Steady progress Days vs. Depth reducing Steady progress reducing drilling…
Montney D&C - Completions Focused on optimizing recovery NuVista's Completion Process Montney IP30 Progress Open-hole completion with ball-drop frac technology 1,500 Boe/d Large volume slickwater fracs 1,250 Longer Laterals…
Well Clean-outs Example of recent success with Coil Tubing Mill-outs Coil tubing mill-out operation yields significantly increased gas rate and pressure May 2015 25
Montney DPIIP Summary On the rise Discovered Petroleum Initially-In-Place(1) * See Appendix for Cumulative Production(2) 0.03 Tcfe important disclosures Reserves (Proved Plus Probable)(2)(3) 1.10 Tcfe regarding Reserves and…
Condensate Pricing Strong demand and premium price for the long term Crude Oil and Condensate Prices 130 Condensate is used in Alberta as a diluent 120 110 to ship heavy oil on pipelines 100 90 C/Bbl Condensate in Alberta is…
Montney IP30's 2015 Well IP30* Cumulative to date (April 26, 2015) CGR CGR Cumulative Raw Gas Condensate Total Sales Days on Condensate Total Bbl/MMcf Bbls/MMcf Sales Gas (MMcf/d) (Bbls/d) (Boe/d) Prod. (MBbls) (Mboe) (raw/C5+)…
Focus on Wapiti Our lands contain the Montney with the bonus of significant Deep Basin uphole potential Acres 000's Nikanassin Dunvegan Cadomin MONTNEY Falher FAIRWAY DUNVEGAN CADOTTE NOTIKEWIN Gross 96 115 110…
Lower Montney Activity NuVista data collection in progress Industry Hz well results coming available early 2015 Multiple pilot wells in progress by Pipestone industry no public test results yet NVA 15-13-68-7W6 Vertical Elmworth…
Loading...
