Petrobank Energy and Resources Ltd. Annual General Meeting May 23, 2012 REAL VALUE
Cautionary Statements Statements in this presentation may contain forward-looking statements, including managements assessment of future plans, results from operations, expectations of future production and capital expenditures,…
Business Structure As of May 22, 2012 Two public companies three undervalued investments Shares outstanding 105.0 million Market cap TSX:PBG - 1.2 billion (Implied Whitesands/Archon…
Our Strategy for Long Term Value Creation Acquire early-stage resources Apply technology to create superior value Spin-out business units to shareholders to realize full value of each company IPO: 2006 Fully distributed to…
2012 Capital Expenditures Focus is on Kerrobert commerciality and maintaining financial flexibility 2012 development capital plan of 34M Development plans revised; total capital unchanged Other, Kerrobert, Pre-condition the Dawson…
PetroBakkens Strategy Innovate 19% Reserve Growth (2011 per share) VALUE CREATION 87% Liquids Weighting Repeat Grow 10+ years Drilling Inventory Our Model The Results PetroBakken Energy Ltd. May 2012 6
Opportunity Portfolio Our strategy is focused with multi-year growth opportunities. Business Unit Current Location Inventory Bakken (Southeast SK) 700 (light oil) Cardium 650 (light oil) Conventional 350 (light oil)…
Growing a Resource Play Company We are long-term focused. Resource Play Resource Play Production Cardium Bakken Conventional Plays Time Repeatable organic growth combined with an attractive dividend yield Large…
Financial Highlights Our financial strength demonstrates strong execution. Funds flow from operations 2011: 710 million (3.79/basic share, +8% over 2010) Q1 2012: 185 million (0.99/basic share, +8% over 2011) 0.96/share per annum…
Positioned for the Future Generating value through light oil resource plays INNOVATE Continuing to apply innovative ideas and refine successful practices gained from drilling and operating over 1,100 horizontal wells GROW Large…
PBN:TSX Heavy Oil Assets / Planned THAI Projects 80 million barrels of exploitable oil in place DAWSON Full field development in Bluesky reservoir Alberta oil sands 1.7 Trillion bbls KERROBERT Heavy oil 21 Billion bbls…
Saskatchewan Heavy Oil Assets Focused on Kerrobert Core Area R27 R23W3 Plover Current Development T35 Future Development Luseland Kerrobert T33 Proved plus probable plus possible THAI reserves of 8.5 million barrels at…
Kerrobert THAI Process Summary 3D Cross-Section of the THAI Process THAI Process Description 1. Horizontal production wells 2. Vertical air injection wells near the 6 toe of the horizontal wells 3. Air injection auto-ignites…
Kerrobert Expansion Wells and Pads Location Air injection well Toe of Production well 14 REAL VALUE
THAIs Achievements Significant progress towards commercialization THAI is a patented technology that has licensing opportunities THAI is a proven process in multiple reservoirs Sustained/controlled combustion High reservoir…
Kerrobert Production Production is trending higher 7-Day Rolling Average Daily Production and Wells on Production 1,200 24 Average number of wells Oil production Power 22 Fluids production interruptions 1,000 20 18 Incinerator…
Kerrobert THAI Sales Oil Quality THAI oilSALES OIL ARCHON ANALYSES Consistently upgradedKERROBERT 20 18 Produced Oil API 16 API Gravity 15.6C, deg 14 12 10 8 6 Native API 4 2 0 Jan-2010Mar-2010May-2010…
Commercial Kerrobert THAI Project Generates Strong Net Operating Income Kerrobert THAI operating netback 100.00 9 million 100 million Annual net operating income 90.00 80.00 70.00 60.00 Field revenue differentials Per…
Future Development Plans Growth opportunities in Petrobanks current portfolio Dawson Complete production wells for conventional cold heavy oil production to pre-condition reservoir for THAI THAI demonstration project to be initiated…
Archon Technologies Archons laboratory facility and research scientists add both immediate and long term value Monitoring , evaluating and enhancing existing operations and technologies Proven ability to generate, test and develop…
Global Technology Footprint Global intellectual property portfolio with patents and patents pending in 32 countries 1 or more THAI & EOR patents issued to Archon Technologies Patents currently pending in 32 countries Estimated…
Petrobanks Unrealized Value Undervalued assets in each of Petrobanks businesses Premium light oil, resource plays in the western Canadian sedimentary basin Significant assets, resources and production potential from Petrobanks…
Normal Course Issuer Bid Buying back our undervalued shares accretes value for long-term shareholders Petrobanks Normal Course Issuer Bid allows the Company to repurchase up to 7,273,401 PBG shares until September 13, 2012 We have…
Concentrating Shareholder Value The NCIB increases each Petrobank shareholders proportionate interest in Petrobanks assets A portion of the NCIB is self funded through sale of PetroBakken shares Our PBN DRIP participation increases…
Significant Potential Share Value Share price trades at discount to PetroBakken value; cash is free 35.00 Petrobank per share value 30.00 25.00 Unrecognized potential value 20.00 15.00 Nearly 3 per share value gap…
APPENDIX TSX: PBG www.petrobank.com REAL VALUE
2012 Capital Forecast Repeating our strategy in 2012. Net Forecasted Average Q1 2012 production Business Capital Wells* Exit Rates exceeded 46,500 boepd Units (millions) (Q1) (boe/d) Average April 2012 production Bakken 105 (1)…
Corporate Production Base New production is layered onto maturing assets for growth. Base 2011 Incremental 2012 Incremental 60,000 50,000 * Production (boepd) * * 40,000 30,000 20,000 2012 2011 Base decline:…
Production Production is oil weighted. Oil & NGL (bbl/d) Gas (boe/d) 60,000 Petrobank Canadian Business Unit PetroBakken 50,000 40,000 Production (boepd) 30,000 20,000 10,000 0 2012 Q2 Q2 Q3 Q4 Q2 Q3…
Financial Capacity to Grow Our financial flexibility provides us optionality. Debt Capital Composition US300 million Convertible Debenture (3.125% interest) 1 Senior Unsecured Notes US900 million (8.625% interest) Credit…
THAI Process Summary 3D Cross-Section of the THAI Process THAI Process Description 11. Horizontal wells are drilled at the base of the reservoir 2 2. Vertical air injection wells are drilled near the toe of the horizontal wells.…
THAI Projects Reservoir Comparison Current projects are located in high quality heavy oil reservoirs Shale Cap Rock Kerrobert Very thick, high quality Waseca Channel Conventional Heavy Oil 10.1o API Dawson High quality Bluesky…
Archon Technologies Integrated intellectual property business plan To date, 11 registered patents and patents pending 33 REAL VALUE
Petrobank Energy & Resources TSX: PBG 3000, 525 8th Avenue SW Calgary, AB, T2P 1G1 403.750.4400 www.petrobank.com www.petrobank.com REAL VALUE
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