CORPORATE PRESENTATION January 2015 www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
CORPORATE OVERVIEW Parallel is a distribution-paying oil and gas producer Highly qualified Board and management team with considerable oil and gas experience Assets are located in the Mid-Continent Region of the U.S. Parallel owns…
OBJECTIVE & STRATEGIES Corporate Objective To provide Parallels unitholders with a sustainable monthly distribution while strategically growing our asset base and operations Corporate Strategies Manage a sustainable business model by…
2015 CAPITAL PLANS 2015 Capital Plans & Production Guidance Parallel has postponed its 2015 drilling program until a sustained recovery in commodity prices is evident Forecasting average daily production of 6,800 boe/day in 2015…
DEBT POSITION Parallel has approximately US156 million drawn on its US190 million credit facility as at December 31, 2014 Parallel has C63 million of convertible debentures due on June 30, 2017 Summary of Parallels Debt Position…
LOCATION OF ASSETS Texas Assets Greater Panhandle / Hugoton Field Parallels Assets and Operating Areas Oklahoma Assets Location Estimated % of Total Production Texas Carson 63% Texas Sneed 30% Texas Cargray 3% Texas SE…
OPERATING SUMMARY Operating Area Production Type Acreage Wells (net acres) (gross count) Condensate & NGLs Carson Natural Gas 91,000 220+ Condensate & NGLs 100% Operated Sneed Natural Gas 52,000 200+ Texas Condensate…
OPERATOR OF ASSETS Parallels Operating Position Texas Assets 100% Operated Oklahoma Assets Non-Operated Parallels U.S. based operating team is led by Tony Swindell, Parallels COO U.S. Operating Team Operating Office Tulsa,…
DRILLING SUMMARY Low-Risk, Development & Delineation Drilling Remaining Drilling Locations Over 140 Drilling Success Rate 100% Parallels Traditional Drilling Single Lateral Wells Technique Dehumidified Air No Mud Open Hole No Frac…
WELL CLEANOUT SUMMARY Stimulating Well Production & Managing Parallels Low Production Decline Rate Cleanouts Performed Per Up to 25 Quarter Over time Parallels wells can accumulate fines and dirt which slow production rates.…
INFRASTRUCTURE Parallels operating areas have extensive oil and gas infrastructure in place to support long-term production growth Primary and back-up processing agreements in place at both Carson and Sneed Pipeline, compressors,…
RESERVE SUMMARY Summary of Reserves at December 31, 2013 Reserves PV10 (mboe) (%) (USMM) (%) Proved Developed Producing (PDP) 32,985 67 374 76 Proved Undeveloped 9,521 19 51 10 Total Proved 42,506 86 425 86 Probable 6,994 14 66…
PRODUCTION HISTORY Parallel has demonstrated historical growth in its quarterly production Gross production growth of 30% from IPO to Q4-2014 Production growth per unit of 55% from IPO to Q4-2014 Average Production per Quarter…
PRODUCTION MIX & REVENUE Production Mix Parallel is considered to be a liquids-weighted producer as condensate and NGLs account for two-thirds of its total production mix Revenue Split Condensate and NGLs account for the…
PRODUCTION MIX NGL SPLIT Parallels Estimated NGL Production Split & the Weighted Average Price at Conway in Q4-2014 Weighted Average Price Industry Parallels Estimated Average in Q4-2014 NGL Production Split (US/boe at Conway)…
REVENUE & OPERATING NETBACK Breakdown of Gross Revenue (US) (Before Realized Hedges) Parallel recorded an average operating netback (before realized hedges) of US25.52 for the nine months ended September 30, 2014…
INDUSTRY COMPARISONS www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
IMPACT OF A LOW DECLINE RATE Parallels production decline rate is the lowest in its peer group at 8% The average production decline rate for Parallels peer group is 25% Having a very low production decline rate means that Parallels…
RESERVE RATIOS Parallels ratio of proved developed producing (PDP) reserves as a percentage of total reserves is the highest in its peer group at 67% The average PDP ratio for Parallels peer group is 40% Having a high ratio of PDP…
2015 GOAL & ASSET ADVANTAGES 2015 Maintain a sustainable business model in 2015 Live within cash flow to fully fund the capital program and distribution GOAL Continuously assess and respond to market conditions Parallels assets have…
MARKET DATA (As at January 23, 2015) Ticker Symbols TSX: PLT.UN, PLT.DB Units Outstanding 55.8 million 52 Week Range 0.46 4.84 Closing Price (January 23, 2015) 0.50 Distribution declared since IPO 2.725 Monthly Distribution 0.01 per…
MANAGEMENT & DIRECTORS Management Rick Alexander Tony Swindell President and CEO Chief Operating Officer Rick Miller Chief Financial Officer Directors Chris Burley F.H. Mim James Chairman of Parallel Energy Trust and Director of…
CORPORATE STRUCTURE Unitholders Investment in Units Distributions Tax efficient Mutual Fund Parallel Principal and Investment in CT Notes Energy Trust Interest on CT Administrator Shareholders Trust structure and CT Units…
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