TSX.V : PRD www.prdenergy.ca Corporate Overview Winter 2014 Proven Technology In Mature European Basins
Corporate Overview PRD is a Canadian publicly listed company TSX symbol PRD Shares outstanding 114.7 million Share price 1.03 Insider holdings: Basic 22% Fully diluted 30% Long Term Debt 0 Market capitalization 118 million…
PRD Business Model Low land acquisition costs Explore in regions with production history Attractive exploitation opportunities Inventory to High Shareholder continue netbacks Value development Competitive royalties…
Three Year Strategy Further Today development in existing reservoirs Conventional production Drilling and from licensed production areas Data from farm-in acquisition on licensed Land lands acquisition and farm-in Mid 2013…
Why Germany Why Now Germany A Perfect Fit Three large, proven conventional basins Germany Many pools suspended prior to mid-1990s Multiple and bypassed pay zones Historical oil cutoffs of 3 to 5 mD High quality reservoirs Apply PRD…
Areas of Interest Germany Basin PRD Acreage NW Germany 1,488,300 Molasse 925,000 Total 2,413,300 Source: US Geological Survey Activities focused where significant reserves of oil and gas have been discovered. 7
Northwest Germany Finding Oil Where Oil Is 8
Representative Geology NW Germany Geologic formations Oil deposit Gas deposit Ideal horizontal well candidates Multiple pay zones Fields in NW Germany Historically developed using directional or vertical well configurations…
Molasse Basin Oil and Gas Pools PRD Licence Aichach 925,000 Acres Sudbayern Nord Licence Orientation of potential new pools identified by management Pools are oriented east to west along fault trends through PRDs…
Molasse Basin Cross Section and Play Types Source: Management generated 11
Industry Characteristics Germany and Alberta Germany Alberta Oil permeability cut-off 3-5 millidarcy 0.01 millidarcy 2012 wells drilled 31 13,000 Year of first production 1859 1902 Light oil production 50,000 boe/d 500,000 boe/d…
The European Cost Structure Service costs high due to low activity Increased risk aversion a result of high costs Offshore practices applied onshore Cost efficiencies encourage economic development of new zones and oil pools Delayed…
Comparative Economics Canadian Well Canadian Well German Well German Well Low Case* High Case* PRD Cost Model* Additional 20% Cost Saving* Benchmark Oil Price 100 / bbl 100 / bbl 110 / bbl 110 / bbl Differential per bbl (15 / bbl)…
Production Licences Received Production Acreage Oil Production Agreement to Status State Year of Licences Before Acquire Data Abandonment Abandonment (bbls)* Volkensen 2,800 900,000 Yes Permitting Lower Saxony 1993 Oberg 20,000…
Exploration Licences Received Exploration Acreage Oil Production to State Agreement to Licences Date Within Boundary Acquire Data (bbls) 1 & 2 Steinhorst 169,000 62,100,000 Lower Saxony Yes Sittensen 73,000 900,000 Lower Saxony Yes…
Appendix A: Posidonia world class potential 18
Posidonia Comparables Posidonia - Germany Duvernay - Canada Eagle Ford - USA Kerogene Kerogene Type 2 Kerogene Type 2 Kerogene Type 2 Depth (m) 1,000 to 2,800 2000 to 3,000 3,300 TOC (%) 2 to 15 (avg. 7) 0.1 to 14.1 (avg. 4.5) 4.5…
PRD Posidonia Potential Exploration Vitrinite Potential Thickness Production Vitrinite Potential Thickness Licences Reflectance Area (m) Licences Reflectance Area (m) (%Ro) (acres) (%Ro) (acres) Bramstedt 0.22 to 0.76 84,200 45 to 80…
Commercializing the Posidonia Land A number of PRDs concessions contain Posidonia potential The Posidonia formation typically resides at depths 500M deeper than PRDs initial conventional targets Land rights granted are surface to…
Appendix B: German Energy Industry Overview 22
Northwest German Basin Overview PRD currently has 1,488,300 acres under licence in the Northwest German Basin at a low cost Northwest German Basin occurs primarily in the states of Lower Saxony and Schleswig-Holstein 93% of current…
Germany Basin Issues/Risks Land Regulatory authorities issue licences Primarily held by small group of majors Limited geologic experiences Data Data tightly held by operators with no public access Juniors have difficulty…
Landscape in Germany Germany supports the development of safe oil and gas activities 30,000 wells drilled in Germany since 1850 Fracture stimulation used in development Most oilfields are in rural regions Government currently…
PRD Community Considerations Environment Protect ground water through multiple casings and cement Use water efficiently Pump from well pad and recycle Use environmentally safe fluids where possible Community Multi-well pads…
Appendix C: Near term development projects 27
Boerger 7A Boerger Operations to Date Drill rig released on November 24, 2013 485 meters of horizontal length drilled into targeted formation 200 meters of this section cased with sleeves, remainder open hole Oil and gas shows…
Boerger 7A Boerger Field Farm-in Agreement with GDF Suez (GDF) to farm into Boerger field GDF one of largest operators in Germany and one of largest utilities in Europe Under agreement PRD earns 50 percent of field by: Drilling and…
Boerger 7A Benefits of Boerger Farm-In Opportunity to work with strong local partners Establish operating history Sound economics Potential for multiple zones Expand PRD regional geological knowledge German operations and…
Volkensen Geologic Overview Licence Overview Volkensen Acres: 2,883 Cumulative historic oil production: 0.9 mmbbl Abandoned: 1993 Wells: 8 drilled Zones: Dogger and Posidonia Data arrangement: Exxon may participate up to 50…
Volkensen Geologic Overview Depositional Model Source: Management generated 33
Appendix D: Management Background 34
Unlocking the Resource Play: Bakken Case Study Unlocking the Bakken PRD technical experts were active in successful Bakken development Introduced material cost reductions Advanced application of stimulation technology Advanced use…
Unlocking the Resource Play: Bakken Case Study Bakken Development History Current Bakken production is approximately 50,000 boe/d Source: Saskatchewan Energy Ministry and management experience Costs reduction increased…
Unlocking the Resource Play: Bakken Case Study Bakken Pre and Post Development PRD licences cover several abandoned oil pools with characteristics similar to the pre-development Bakken Known oil in place Historically high cost…
Management Team Michael G. Greenwood, Chairman, CEO and Director 13 yrs as President and COO, Canaccord Capital More than 20 yrs as investment banker Mark Hornett, President, COO and Director 30 yrs Canadian and international oil and…
Board of Directors Michael G. Greenwood, Chairman, CEO and Director Mark Hornett, President, COO and Director Grant B. Fagerheim, Director O&G industry: 25 yrs President, CEO, Director, Whitecap Resources Inc. Previous Companies:…
TSX.V : PRD www.prdenergy.ca Corporate Overview Winter 2014 Proven Technology In Mature European Basins
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