Proving Something Big Peters & Co. Limited 2012 North American Oil & Gas Conference September 11, 2012 Presented by Glen Schmidt President and CEO Can New Oil Sands Development Compete with other NA Resource Plays
3 Significant definitions In this presentation the reserve and recoverable resource numbers, along with the net present values given, are as defined in the report of GLJ Petroleum Consultants Ltd. (GLJ) regarding certain of Laricinas…
4 Laricina advantages World-class drillable oil sands resource base of 387 mmbbl 2P reserves and 4.6 bn bbl (best estimate) of company interest, contingent and prospective resources(1) World-Class Asset Two projects under active…
5 Laricina: Who we are Calgary, Alberta based founded in Laricinas Position in Four Key November 2005 to focus on in situ oil sands development Oil Sands Formations(1) Developed into one of Canadas largest independent oil sands…
6 Asset portfolio overview All figures Best Estimate SC-SAGD Formation GLJ GLJ Production represent Contingent Sensitivity Laricina W.I. (Working Interest) Resource (1)(4) Potential (2) (3) Burnt Recovery Factors Resource (4)…
7 Can new oil sands development compete The exponential (and unanticipated) growth of North American tight oil has highlighted the issue of oil sands competiveness Key questions being asked are: 1. What is the scale of tight oil…
The scale of the tight oil resource / displacement 8 of crude from US markets Tight oil growth forecasts vary widely, with the upper end of forecasters indicating 2020 tight oil production approximately 5 million bbl/d (2)…
9 The next big oil sands plays Alberta's Bitumen Resource - 1.8 Trillion Barrels 1,000 in situ 900 827.7 Athabasca 800 Original oil in place 700 Cold Lake 600 (bn bbl) 500 Peace River 405.9 Burnt Lakes 400…
10 How does oil sands compete in terms of break- even economics Representative tight oil break-even WTI range between 60 to 90 per barrel (large variation in well economics)depending on geology, play-type, infrastructure…
11 Can oil sands compete for capital with tight oil Nature of oil sands and tight oil plays are fundamentally different Oil sands are a long duration asset requiring high upfront capital Tight oil plays provide cash-on-cash return,…
12 Benefits of solvent processes Concept Company Acronym Solvent Asset Results (Reservoir) Adding butane Cenovus SAP Butane Christina Lake Improved oil production rate during SAGD (Encana) (McMurray) Reduced SOR by 30% Selected…
13 Leading the next generation of in situ recovery Innovation is a core component of Laricinas business model Focused on continuing to improve the efficiency of bitumen recovery processes Increased operating efficiency Greater well…
What will the impact of tight oil growth be to oil 14 sands Pricing discounts and volatility likely increased in the short- term given transportation bottlenecks and incremental tight oil growth; issue for all producers not oil…
15 Oil sands fundamentally robust business Significant scale and long duration asset New resource plays are increasing the size of the accessible resource and drive economies of scale Competitive on break-even and supply cost…
16 Proving something big Producing from the Grosmont Developing the Grand Rapids and building out Germain Investing in value enhancing innovations Growth opportunities in carbonates and sands Laricina is well positioned to…
17 Contact us Laricina Energy Ltd. 800, 425 1st Street SW Calgary, Alberta T2P 3L8 403-750-0810 www.laricinaenergy.com laricinalaricinaenergy.com September 11, 2012 Proving Something Big
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