Key Investment Highlights 200 m of Montney pay in ideal geological setting that provides for high liquids content and high pressure High Quality Q1-Q3 2014 liquid-gas ratios of 152 bbls/MMcf of condensate and oil, and 78 bbls/MMcf of…
Seven Generations Overview Key Capitalization and Operational Highlights 7G Montney / Deep Basin Lands and Infrastructure Basic shares post IPO 246 million Enterprise Value1 6.2 billion Q3 2014 Production sales 35.8 Mboe/d (58%…
Attractive production performance so far (but we are not settling for this) Cumulative to date IP 30 IP 90 IP 180 Well Head Map Gas Total Days Condensate boe/d boe/d boe/d (MMcf) (Mbbl) (Mboe) 1 993 1,531 179 435 715 674 681 2…
Track Record of Resource to Reserve Conversion McDaniel Reserve and Resource Reports (NPV10 pre-tax, Billions) 18.0 2P Reserves 2C Resources Best Est. Prospective Res. 16.0 14.0 4.2 12.0 Billions 5.9 10.0 4.6 8.0 6.0…
Marketing, Processing and Transportation Arrangements 7Gs lands ideally located near two transcontinental gas pipeline systems and a regional condensate pipeline system Natural Gas Processing & Transportation Arrangements Firm…
Production History & 2014 / 2015 Estimates 7G increased rig count from 7 rigs in Q3 2013 to 10 rigs by the end of Q3 2014 The Company anticipates increasing its rig count to 15 rigs by the end of the first half of 2015 7G…
ASSET SUMMARY
Montney Reservoir Properties OVER-PRESSURED RESERVOIR BEST ROCK QUALITY (Siltstone) THICKEST MONTNEY IN ALBERTA 25% to over 50% over-pressured Averaging: 50% Quartz; 40% Dolomite; 200 metres of total Montney thickness; 10% Clays*…
7Gs Nest Montney: A Top Tier Development Asset Wells to date have averaged 1,453 boe/d (IP 90) (25 wells) and 1,144 boe/d (IP 180) (18 wells) HIGH PRODUCTIVITY Highest rates to date1 3,234 boe/d (IP 30), 2,535 boe/d (IP 90) and 2,220…
Nest Lands Located in an Ideal Geological Setting Key geological characteristics of the Nest include Low geothermal gradient leading to high liquids content and preservation Relative depth allows for high pressure resulting in high…
Individual Well Economics: Upper & Middle Montney (US 4.00/MMBTU flat NYMEX, US90.00/bbl WTI, 0.92 USD/CAD, pre-tax; 2200 m type curves, management P50) Nest Montney Development Future Montney Development NEST 1 NEST 2 Wapiti Sour…
Nest P50 Type Curves & Historical Production (1,2) (1,2) Raw gas (Mcf) Nest 2 wells Nest 1 wells Nest 2 type curve (1,2) (1,2) Nest 1 type curve Condensate (bbls) 1) Normalization assumes directly proportional…
Improved Unit Costs Total Cost (MM) vs. Lateral Metres Drilling Completion lateral m Linear(lateral Linear Trendm)(lateral m) Drilling improvements Plug & perforation completion Longer laterals Metres of Lateral Drilled (m)…
Optimization Case Study: 7G Pad 18 (most pronounced optimization example) 02/11-13-063-05W6 02/12-24-063-05W6 Date Spudded September 29, 2011 August 17, 2013 Lateral Length 1,468 m (4,815 ft) 2,638 m (8,653 ft) +76% longer Total cost…
Individual Well Economic Sensitivities: Motivation for Optimization (US 4.00/MMBTU flat NYMEX, US90.00/bbl WTI, 0.92 USD/CAD, pre-tax; 2200 m type curves, management P50) BASE CASE ECONOMICS PRODUCTIVITY & EUR +30% Nest Development…
Super Pads: Distributed Processing & Localized Gas Lift Capability Key strategic drivers for Super pads: SIMPLIFIED PROCESSING SCHEMATIC i) High pressure gas for artificial lift at each well to assist lifting free liquids Super pad…
Significant Transportation, Processing & Marketing Contracts In Place Natural Gas Sales - Rich Gas Premium contract with Aux Sable and firm transportation contract with Alliance - Volumes increase to 250 MMcf/d by Q4 2015 and 500…
Exposure to Significant Upside Potential from Upper / Middle Montney Extension and Secondary Targets Significant additional potential from conventional zones and emerging tight targets exists across 7Gs land base in addition to…
Summary: A Differentiated Team Developing a World Class Asset High quality liquids-rich resource base Significant reserves and resources to support a multi-decade drilling program Location advantages and firm transportation…
Well Spacing Supporting Development Plan The Companys objective is to maximize the value of its land by finding an optimal combination of well design (e.g. frac size, frac spacing) and well spacing Presently, the Companys independent…