Investment highlights Recent bitumen production Long Lake approximately 28,300 bbl/d (gross) Built & Producing Upgrader producing hydrogen, oxygen, electricity, syngas & PSC Current production, near term Unique expansion &…
Long Lake: built & producing 4
Long Lake Project plant site 5
Long Lake Project up & running Project ramping-up to expected peak capacity of 72,000 bbl/d bitumen upgraded to 58,500 bbl/d of PSC (20,000 bbl/d net to OPTI) Plant producing all designed products: hydrogen, oxygen, electricity, syngas…
Operations overview Production ramp-up at SAGD & Upgrader facilities continues Surface World class, state-of-the-art Upgrader operating, proving technology works Syngas used to provide fuel, electricity & hydrogen Produced over 11…
Upgrader operational performance Upgrader on-stream time remains high and has improved substantially with operating experience Upgrader On-Stream Factor Design 96% 99% 98% 100% 96% 96% 93% 93% 92% 92% 91% 93% 90% 87% 86% Upgrader…
SAGD performance Working to resume ramp-up with consistent & reliable steam production Successful SAGD response Surface & reservoir issues 180,000 35,000 160,000 30,000 Steam (bbl/d), Wells*1,000 Bitumen (bbl/d), SOR*1,000…
SOR by well type Typical SAGD well takes a number of years to reach optimal SOR Well Type Curve for Long Lake Project 2P 6.0 Today (early stage of production life) 5.0 4.0 ISOR 3.0 2.0 1.0 0.0 1 2 3 4 5 6 7 8…
SOR & production SOR improvements over one-year period Field SOR versus Production by Well Pair 6.0 January 2010 wells January 2011 wells 5.0 Expectations over time 60% of production 4.0 22 wells No vertical tail (all wells…
Reservoir sensitivities at full production Long Lake generates strong cash flow at a broad range of SOR 500 SOR 3.0 SOR 4.0 SOR 3.5 (1) 453 (80) 400 -2% Million (net to OPTI) 373 -17% 365 100 WTI 100 WTI 300 310 100…
Project free cash flow Facility reliability & bitumen production are key Positive field cash flow achieved in October & December 2010 at production of approximately 29,000 bbl/d Approximately 75% of our operating costs are fixed…
Returning to successful ramp-up Multiple initiatives underway to increase bitumen production Steam production & water treatment Steam - Natural gas pipeline under construction Near Term Water - Maintenance on remaining hot lime…
Projected netbacks (1) Strong netbacks at full production 98.14 Revenue 100 6.93 Royalties & G&A 80 76.26 28.17 Operating Costs 3.88 60 26.78 CDN/bbl 40 63.14 Netback Self Supplied 45.60 Energy (3) Self Supplied…
Significant asset value 16
World class joint venture T94 Firebag T93 High value in-situ leases located in heart of Mackay River T92 Athabasca oil sands fairway Lewis T91 Fort T90 McMurray T89 Resource concentrated in 3 core land areas T88…
Near term expansion Kinosis Planning 40,000 bbl/d (gross) SAGD stages for Kinosis Regulatory approval in place for 140,000 bbl/d (gross) of SAGD production Current economics favourable for SAGD expansions Ability to self-supply…
Future expansions Kinosis Kinosis represents an attractive near term expansion opportunity Ongoing planning of 40,000 bbl/d SAGD projects Sanctioning decision expected in 2012 Current economic conditions favorable for SAGD…
Future expansions Leismer & Cottonwood Potential for 216,000 bbl/d (gross) of SAGD production Leismer Cottonwood Leismer & Cottonwood well- delineated with coreholes & 3-D seismic 458 delineation wells on 275 sections Best estimate…
Significant reserves & resources Significant proven + probable reserves & resources support growth 1,200 1,100 MMbbl Cottonwood Leismer Millions bbls of Bitumen (net) 1,000 207 MMbbl Kinosis Long Lake 800 729 MMbbl 600 591…
Significant reserves value Enterprise Value vs. After Tax (AT) 2P Reserves NPVs (Long Lake & portion of Kinosis only) 6,000 NPV 5,000 4,701 Probable NPV 4,000 1,691 3,407 Probable millions 1,775 Enterprise Value 3,000…
Financial position Financial resources Cash of 287 million at March 31, 2011 190 million revolving credit facility with a maturity date in December 2011 165 million drawn at March 31, 2011 Expected positive net field operating margin…
2011 capital budget Priority: ramp-up bitumen production & improve project operations reliability Capital Summary Long Lake 122 Kinosis 22 Leismer/Cottonwood 6 Total 150 Long Lake 53 million (net) for PAD 12 & 13 15 down hole ESP…
Moving forward OPTI has a unique combination of current production, near term expansion & long term growth Future Production Growth (gross) 500,000 Operating Regulatory Planned Approval 432,000 Daily Bitumen Production (bbl/d)…
Executing strategic alternatives review OPTI remains committed to its review of strategic alternatives for the Company to address its overall leverage position Strategic alternatives may include Capital market opportunities Asset…
Investment highlights Current production & high value sales product Significant asset value in Long Lake & future expansions Working toward Strategic Alternatives Review conclusion 29
Appendix 30
OPTI quick facts TSX Symbol OPC Market Capitalization (1) 68 million Enterprise value (1) 2.8 billion Shares outstanding (1) 282 million 2P Reserves 729 million bbl Contingent resource 1,100 million bbl Prospective resource 335…
OPTI Canada Inc. (TSX: OPC) Key corporate milestones Established in 1999 Joint venture with Nexen in 2001 (Area of Mutual Interest in Athabasca area) IPO 2004 SAGD start-up 2008 Upgrader start-up January 2009 Business model…
Oil sands recovery Mining versus In-situ SAGD Process Natural Gas SAGD First tested in 1984 improvements continuously made in existing commercial operations Recycle 90% of water used to create steam Relatively minimal…
OPTIs integrated solution Challenges with OPTIs Traditional SAGD Integrated Solution Exposure to volatile natural Significantly reduced reliance on gas costs natural gas Exposure to heavy oil Integrated process will deliver…
Long Lake Project surface facilities Conventional Patented Conventional Premium SAGD OrCrudeTM Process Refining Sweet Crude 72,000 bbl/d 58,500 bbl/d 35
Premium product PSC expected to receive premium pricing PSC expected to receive higher value relative to other synthetic crude oils as volumes continue to ramp up Two markets ensure strong sales price for PSC High demand by…
In-situ reservoir comparison Long Lake compares favourably with other major in-situ projects Project Pay Porosity Reservoir Bitumen of cores Reservoir Thickness (%) Depth Saturation analysed (1) Pressure (m) (m) (%) (kPa) Long Lake…
Proactive approach to environmental issues OPTI remains committed to responsible development Responsible water use No tailings ponds Reduced natural gas use Minimal surface disturbance Extensive monitoring for air emissions 38
Long Lake Project well pads 39
SAGD well pad 40
Definitions & cautionary statements Notes to Resource Slides These estimates represent the best estimate of our resources, are not classified or recognized as reserves, and are in addition to our disclosed reserve volumes. Contingent…
Definitions & cautionary statements Notes to Estimated Future Project Pre-Payout Netback Slide We have provided below an update to our estimated netbacks and free cash flows for the Project that were last updated in our second quarter…
Definitions & cautionary statements Notes to Estimated Future Project Pre-Payout Free Cash Flows at a Range of Potential SOR On a long-term basis, we estimate sustaining capital costs required to maintain production at design rates of…
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