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Investor Field Tour – Equal Energy Ltd.

Equal Energy Ltd. · Jun 25, 2013 · 41 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Field Tour – Equal Energy Ltd. – slide 1
    Investor Field Tour June 25, 2013
  2. Investor Field Tour – Equal Energy Ltd. – slide 2
    Agenda: Equal Energy Investor Field Tour June 25, 2013 2
  3. Investor Field Tour – Equal Energy Ltd. – slide 3
    Why Equal Energy Strong balance sheet with commodity price upside Focus on a single asset base Dividend return combined Oklahoma Hunton with long term volume growth opportunity Established play with strong track record,…
  4. Investor Field Tour – Equal Energy Ltd. – slide 4
    2013 Financial Overview: Production average: 2013E 6,400 boe/d Cash flow: 2013E - 33 million Capital expenditures: 2013E - 36 million - 30 million drilling and infrastructure - 6 million land and maintenance 2013 dividend:…
  5. Investor Field Tour – Equal Energy Ltd. – slide 5
    Going Forward: Our 2013 Operational Strategy A Balanced Prudent approach Stay focused on costs on both the capital and operating sides Maintain Equals balance sheet by keeping net debt to cash flow…
  6. Investor Field Tour – Equal Energy Ltd. – slide 6
    Oklahoma Hunton Technical Presentation June 2013 (TSX: EQU, NYSE: EQU)
  7. Investor Field Tour – Equal Energy Ltd. – slide 7
    Geology 8 Equal Energy Investor Field Tour June 25, 2013
  8. Investor Field Tour – Equal Energy Ltd. – slide 8
    Oklahoma Location Map A Hunton Subcrop Edge 23,000 net undeveloped acres Tulsa in the Hunton trend Oklahoma City A 9 Equal Energy Investor Field Tour June 25, 2013
  9. Investor Field Tour – Equal Energy Ltd. – slide 9
    Hunton Carbonate Pinchout South-north cross section AA through Anadarko basin (modified after Pippin, 1970; Dutton and Garret, 1989; Johnson, 1989; and Sorenson, 2005). 10 Equal Energy Investor Field Tour June 25, 2013
  10. Investor Field Tour – Equal Energy Ltd. – slide 10
    Overview 11 Equal Energy Investor Field Tour June 25, 2013
  11. Investor Field Tour – Equal Energy Ltd. – slide 11
    WNIMBY - Whats New in My Back Yard Garfield County Pawnee County 20N 7E 20N 8E 20N 5E 20N 6E 20N 2E 20N 3E 20N 4E 20N 3W 20N 2W 20N 1W 20N 1E 20N 10W 20N 9W 20N 8W 20N 7W 20N 6W 20N 5W 20N 4W Major County MISSISSIPPIAN AND…
  12. Investor Field Tour – Equal Energy Ltd. – slide 12
    The Hunton Play How it Works The Hunton Group is a dual porosity carbonate system that contains oil-wet primary porosity and water-saturated secondary porosity Old SCHEMATIC PLAN VIEW Conventional Field SCHEMATIC PLAN VIEW…
  13. Investor Field Tour – Equal Energy Ltd. – slide 13
    The Hunton Carbonate at Twin Cities Three Distinct Porosity Zones S N TWIN CITIES / CENTRAL DOLOMITE Hunton Cross-Section The B zone is a dolomite with streaky porosity to 20% Horizontal drilling is targeted to the B zone to…
  14. Investor Field Tour – Equal Energy Ltd. – slide 14
    Hunton Reservoir Under the Microscope Virgin reservoir condition Dewatering reservoir condition Dual permeability Water pumped off from fractures Oil wet fine porosity in tighter matrix Volatile oil migrates Water saturated dolomite…
  15. Investor Field Tour – Equal Energy Ltd. – slide 15
    Well Performance 16 Equal Energy Investor Field Tour June 25, 2013
  16. Investor Field Tour – Equal Energy Ltd. – slide 16
    Schematic Reservoir Performance Characteristics Hunton Carbonate De-watering Lower NGL Content Higher NGL Content (1100 mmbtu/mcf) (1300+ mmbtu/mcf) 3,500 175 Equal Energy PLATEAU PHASE 3,000 150 Reservoir Pressure…
  17. Investor Field Tour – Equal Energy Ltd. – slide 17
    Horizontals Required to Sufficiently Dewater the Hunton Especially Where the Hunton is Thick (50) Kenneth Horizontal 350 7000 300 6000 250 5000 Gas (boe/day) Oil (bbl/day) OIL AND GAS 200 Water (bbl/day) 4000 WATER…
  18. Investor Field Tour – Equal Energy Ltd. – slide 18
    Twin Cities Central Dolomite Typical Example Dont Confuse Pump Problems with Reservoir Behavior Aphrodite Horizontal 200 14000 180 12000 160 140 10000 120 OIL AND GAS 8000 WATER 100 6000 80 Gas (boe/day) 60 Oil…
  19. Investor Field Tour – Equal Energy Ltd. – slide 19
    Twin Cities Central Dolomite Oil Prone Example Orion Horizontal 200 8000 180 7200 160 6400 140 Gas (boe/day) 5600 Oil (bbl/day) Water (bbl/day) 120 4800 OIL AND GAS WATER 100 4000 80 3200 60 2400 40 1600 20…
  20. Investor Field Tour – Equal Energy Ltd. – slide 20
    Thinner Hunton Results in Faster Dewatering Can be Exploited with Vertical Wells May Require More Wells Per Section Bulldog Deviated (Example From Northwest Oklahoma Asset Sold in 2012) 600 5000 4500 500 4000 3500 400 Gas…
  21. Investor Field Tour – Equal Energy Ltd. – slide 21
    Can Be Difficult to Predict Reserves Abel Horizontal 70 7000 Gas (boe/day) Oil (bbl/day) 60 6000 2009 Forecast 2010 Forecast 50 2011 Forecast 5000 2012 Forecast OIL AND GAS 40 Water (bbl/day) 4000 WATER 30 3000…
  22. Investor Field Tour – Equal Energy Ltd. – slide 22
    Gas Heat Content Rises Over Time Twin Cities Central Dolomite Area Raw Gas BTU Content Trend 1.2400 1.2300 1.2200 mmbtu/mcf 1.2100 1.2000 1.1900 1.1800 Jan10 Mar10 May10 Jul10 Sep10 Nov10 Jan11 Mar11 May11 Jul11…
  23. Investor Field Tour – Equal Energy Ltd. – slide 23
    1.2 1.4 1.6 1.8 2.2 1 2 02/01/2001 05/01/2001 08/01/2001 11/01/2001 02/01/2002 05/01/2002 Equal Energy 08/01/2002 11/01/2002 02/01/2003 05/01/2003 08/01/2003 11/01/2003 02/01/2004 05/01/2004 08/01/2004…
  24. Investor Field Tour – Equal Energy Ltd. – slide 24
    Shrink and Yield Increase With BTU Content SHRINK AND YIELD MARCH 2013 400 0.80 350 0.70 NGL Yield Barrels per Million Cubic Feet 300 0.60 250 0.50 Shrink 200 0.40 Yield 150 0.30 Shrink 100 0.20 50 0.10 0…
  25. Investor Field Tour – Equal Energy Ltd. – slide 25
    Volumes and Values Increase With BTU Content AN ILLUSTRATION 1,000 MCF RAW GAS = 167 MBOE AT THE WELLHEAD TAILGATE BOE BTU TAILGATE BOE TAILGATE VALUE MMBTU/ VOLUME % RESIDUE BOE GAS 4.00/MMBTU TOTAL NGL NGL 0.90 GALLON MCF OF…
  26. Investor Field Tour – Equal Energy Ltd. – slide 26
    March 2013 Effective Wellhead Gas Price 14.00 Effective Wellhead Gas Price /mcf 12.00 10.00 8.00 6.00 TC/CD Carney 4.00 Goodnight 2.00 0.00 1000 1200 1400 1600 1800 2000 2200 Wellhead BTU 27 Equal Energy…
  27. Investor Field Tour – Equal Energy Ltd. – slide 27
    Hunton Wells Exhibit Conventional RLIs Equal Energy Hunton Wells With Reserves Remaining at December 31, 2012 25 20 Vertical Horizontal Wells Drilled (Gross) 15 128 Wells in Sample Set 10 5 0 1988 1990…
  28. Investor Field Tour – Equal Energy Ltd. – slide 28
    Equal US Commodity Mix and Pricing Equal Hunton Commodity Mix Equals US production roughly 50/50 liquids/gas 3% Equals NGL mixed stream attracted 96% of 49% Conway propane pricing in Q1-2013 Oil Equals gas is benchmarked on…
  29. Investor Field Tour – Equal Energy Ltd. – slide 29
    Twin Cities/Central Dolomite Hunton Development Large Reserves & Production Base Thicker Hunton (up to 100+) exploited with dual-leg horizontals No stimulation required Significant oil sometimes encountered always gas Peak water…
  30. Investor Field Tour – Equal Energy Ltd. – slide 30
    Historical Hunton Hydrocarbon and Water Production 31 Equal Energy Investor Field Tour June 25, 2013
  31. Investor Field Tour – Equal Energy Ltd. – slide 31
    Drilling and Completion 32 Equal Energy Investor Field Tour June 25, 2013
  32. Investor Field Tour – Equal Energy Ltd. – slide 32
    Hunton Drilling, Completion & Equipment Arbuckle Group Multiwell pads exploit up to 4 sq.mi. of resources Single, dual and crows foot horizontal drilling techniques are used Long horizontals allow rapid depressuring of the…
  33. Investor Field Tour – Equal Energy Ltd. – slide 33
    TC/CD Hunton Drilling and Completion Wells are drilled with a maximum angle of deviation in the intermediate hole of 6070O. 7 casing is then set such that from the top of the Hunton to casing point is 180, which allows for the…
  34. Investor Field Tour – Equal Energy Ltd. – slide 34
    Typical Hunton Dewatering Production Facility 35 Equal Energy Investor Field Tour June 25, 2013
  35. Investor Field Tour – Equal Energy Ltd. – slide 35
    Production Facility 36 Equal Energy Investor Field Tour June 25, 2013
  36. Investor Field Tour – Equal Energy Ltd. – slide 36
    Water Disposal 37 Equal Energy Investor Field Tour June 25, 2013
  37. Investor Field Tour – Equal Energy Ltd. – slide 37
    Salt Water Disposal System 18 Active SWD Wells Permitted capacity totals 825,000 bwpd Capacity with current pump installations 522,000 bwpd Current throughput (March 2013) 78,000 bwpd Maximum throughput of 260,000 bwpd in 2008…
  38. Investor Field Tour – Equal Energy Ltd. – slide 38
    Salt Water Disposal History 300,000 250,000 Saltwater Disposal BWPD 200,000 Carney 150,000 Goodnight TC/CD 100,000 50,000 0 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 39 Equal Energy…
  39. Investor Field Tour – Equal Energy Ltd. – slide 39
    Salt Water Disposal System SWD Well Pumps and VSDs SWD Multiple Pumps and Disposal Wellhead SWD Multiple Pumps SWD Single Pump 40 Equal Energy Investor Field Tour June 25, 2013
  40. Investor Field Tour – Equal Energy Ltd. – slide 40
    SWD Facility 41 Equal Energy Investor Field Tour June 25, 2013
  41. Investor Field Tour – Equal Energy Ltd. – slide 41
    Field Tour Stillwater Equal Energy Field Office CD2 Disposal Facility and Greenfield-Foy-Lubin Production Facility 42 Equal Energy Investor Field Tour June 25, 2013

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