TSX: JOY Growth Plus Yield E&P sustainable growth applying new technology to legacy oil pools November 2014
Corporate Overview (November 2014) 11,000 boe/d; 55% liquids (Q3 Actual) On track to average 11,200 to 11,400 boe/d for…
Financial Overview (November 2014) Projected year end net debt/annualized cash flow of less than 1.0x; 95MM net debt on a 205MM credit facility 9.8% yield while paying out only 22% of cash flow*; 6/share/month 43.1 MM basic…
Five Reasons to Own Journey 1. Our team has doubled the value of the company, and we have the inventory in pools we already own and control to do it again 2. Our team has a defined strategy and track record of acquiring assets for their…
Growing Inventory in Proportion to Cash Flow July 2012 Inception Current 2P NPV10% BT (MM) (1) 215 722 2P NAV/Basic Share (/Share) 6.58 14.75 PDP NPV10% BT (MM) (1) 104 373 PDP NAV/Basic Share (/Share) 2.21 6.65 Corporate Decline…
Core Areas (Along a Prolific Resource Fairway) 11,000 boe/d; 55% liquids 950 MM OOIP(1) of Journey lands; 85% WI; 12% recovery factor to date Alberta Central Region 5,600 boe/d (61% liquids) 455MM oil weighted capital projects…
Journeys Value Creation Strategy Acquired major oil pools in prolific Identify New resource fairway Opportunities Expanded our (300 Pools in prospect inventory Target to over 10 years Fairway) Drilled over 50 HZ wells to date…
Executing the Strategy (Herronton) Acquired in February 2013; first well drilled in September 2013 15 land purchases/leases and 3 tuck in property acquisitions; quadrupled land position to over 30 sections Our first 4 HZ wells have…
Executing the Strategy (Matziwin/Countess) Matziwin legacy property, expanded through acquisitions West Matziwin (East Matziwin, Countess), land purchases, and farm-ins We have participated in 27 HZ wells on our lands Recent…
Transformative 2014 Acquisition NPV10%(before tax, GLJ December 31, 2013) (1) 176MM purchase price; effective January 1, 2014; Purchase Price 304MM 304mm 220MM 220mm 186MM 186mm Represents of 2014 capital program 4,400 boe/d;…
Why Our Program is Working NPV10% (before tax) MM 300 950 MMbbl OOIP 900MM in Big pools get bigger on JOY Lands Capital Projects 250 with time and Herronton technology 200 Central South Central South Region Region Region…
More to Come Journey has identified 280 (net) horizontal oil drilling opportunities; 78% of these projects are currently unbooked Horizontal Oil Wells Concept Booked Unbooked Total Tested Region Gross Net Gross Net Gross Net South…
South Region (Low Risk Development) As of August 2014, 100% of our South inventory is concept tested, with at least 1 HZ well drilled in each pool Horizontal Oil Well Drilling Locations Booked Unbooked Property Formations Gross…
South Region Drilling Economics Matziwin Countess Metric Herronton Elkton Glauconite Glauconite Capital Cost (MM) 2.3 2.4 3.8 Ultimate Recovery (Mboe) 200 200 330 Oil and NGLs (%) 70% 70% 69% IP30 (boe/d) 200 200 340 IP365 (boe/d)…
Central Region Over the next 12 months Journey plans to drill HZ wells at Crystal and Gilby, in order to prove-up our remaining inventory Horizontal Oil Well Drilling Locations Booked Unbooked Property Formations Gross Net…
Central Region Drilling Economics Crystal Windfall Westerose Gilby Manola Cherhill Metric Viking BHL Belly River Mannville Ellerslie Banff Capital Cost (MM) 2.2 5.3 2.1 2.5 2.0 2.7 Ultimate Recovery (Mboe) 215 270 155 330 175 290 Oil…
Business Plan 2012 2013 2014 2015 Operating Highlights H2 Actual Actual Forecast Forecast Production Average (boe/d) 4,566 5,255 10,200 - 10,400 11,200 - 11,500 December Exit (boe/d) 4,883 5,203 11,200 - 11,400 - Oil and NGLs (%)…
A Sustainable Model With a Compelling Valuation PEERS We achieve above average yield while maintaining a low payout ratio; 9.8% Yield 8.5% 30% Simple Payout Ratio (2015E) 33% We have a clean balance sheet and a track record of…
A Differentiated Business Strategy Designed to Out Perform Team Business Model Assets Experienced management Control legacy underdeveloped Control of 950 MMbbls of OOIP oil pools along a fairway with 12% recovery factor Skilled…
Appendix - Hedging and Sensitivities Hedging Oil Hedging (USWTI) Forecasted Total Liquids Production by Quarter Gas Hedging (CAECO) Forecasted Total Gas Production by Quarter September 30, 2014 September 30, 2014 Bbl/d (liquids)…
Appendix - Strong Governance Patrick Samson Chairman Managing Director, Infrastructure Investments, PSP Investments Stephen Mulherin Lead Independent Director, Governance / Compensation Committee Chairman Partner, Polar Capital Company;…
Appendix - Experienced Management Team Alex G. Verge, P.Eng., M.Eng. Director, President and Chief Executive Officer 32 years of experience: Three years as Director of Journey (two as CEO), President and CEO of NuVista Energy, VP…
Appendix Corporate Information BMO Bankers CIBC ATB Auditors PricewaterhouseCoopers LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Legal Counsel Stikeman Elliott LLP Registrar and Transfer Agent Computershare Trust…
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