ATHABASCA OIL CORPORATION FOCUSED EXECUTING DELIVERING AUGUST 2015 CORPORATE UPDATE
2 REFINED STRATEGY FOR VALUE CREATION Material Core Assets o 1,000+ well inventory in the Duvernay shale play at Kaybob1 o 80,000 bbl/d project potential at the Hangingstone thermal asset WORLD CLASS ASSETS Diverse portfolio…
3 CORPORATE OVERVIEW CAPITALIZATION OVERVIEW (Q2 2015) Stock exchange listing TSX Trading symbol ATH Share Price (July 28th, 2015) 1.42 /sh 52-week trading range 1.32 8.00 /sh Basic shares outstanding 403 MM Fully diluted…
4 WELL POSITIONED FOR GROWTH 2015 HIGHLIGHTS o Building a business that is self funded in the medium-term o Exit volumes expected to grow by 75% in 2015 o Conservative approach to capital allocation and spending CAPEX/ FUNDING IN…
A FOCUS ON MAINTAINING BALANCE SHEET 5 STRENGTH & FINANCIAL FLEXIBILITY STRONG LIQUIDITY POSITION o 582MM of cash, cash equivalents & short-term investments1 o 284MM of promissory notes from PetroChina2 o 186MM of undrawn credit…
6 FOCUSED ON OUR CORE ASSETS LIGHT OIL: GREATER KAYBOB 2015 program o 203MM full year budget o Rig release 11 Duvernay wells; completion operations on least 4 wells o Rig release 1 Montney well; completion operations on 2 wells Go…
DUVERNAY OVERVIEW
8 THE DUVERNAY IS A WORLD CLASS RESOURCE UNCONVENTIONAL PLAYS IN o Large in place resource NORTH AMERICA WORLD o High liquids yield: 100 -1,000 bbl/MMcf liquids CLASS o Initial results compare favorably to the Eagle Ford…
KAYBOB DUVERNAY EXPOSURE; LIQUIDS AND 9 OVERPRESSURE DRIVES ECONOMICS GREATER KAYBOB DUVERNAY EXPOSURE HIGH QUALITY LIQUIDS KAYBOB Volatile Oil EAST Land: 156,000 acres 8-18 45API Locations: 1,3001 WI: 99% Kaybob East KAYBOB 14…
10 CONDENSATE RICH GAS WINDOW AOC ACTIVITY KAYBOB WEST SAXON SOUTH o 8 horizontals & 2 verticals Capital (Cur./Dev.) MM 17/10 15/8 o 4 on production, 2 on a soak period & 1 1 waiting on completion Type Curve IP30 boe/d 1,000 -…
11 KAYBOB WEST WELL COST INITIATIVE WELL COST IMPROVEMENTS o Scale through pad drilling is the largest driver for improved efficiencies o Drilling Completions: o Fit for purpose rigs o Frac fluid and volume optimization o Wellbore…
KAYBOB WEST DUVERNAY ECONOMICS AND 12 WHY COSTS MATTER KAYBOB WEST SOUTH TYPE CURVE1 EXTENDED FREE LIQUIDS YIELDS 1,500 Kaybob West South 300 02/2-34-62-20W5 Extended production data 1,250 08-34-62-20W5 confirming expectations that…
13 UNLOCKING THE VOLATILE OIL WINDOW AOC ACTIVITY VOLATILE OIL PARAMETERS o 7 horizontals & 3 verticals Capital (Cur./Dev.) MM 12 - 17 / 7 - 10 o 4 on production & 3 wells waiting on Type Curve IP30 1 boe/d 400 - 800+…
14 DUVERNAY MILESTONES & TARGETS 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Appraisal & 95% of 200,000 acres held into intermediate term Land Tenure 15 Horizontal and 5 Vertical wells Establish Pad 2…
15 DUVERNAY GROWTH SCENARIO SCENARIO OVERVIEW o Potential for significant annual production growth o Cost learnings with the transition to development o Flexibility to control pace of activity ANTICIPATED COST LEARNING CURVE (MM)…
16 CONTROL OF STRATEGIC INFRASTRUCTURE Total Battery Capacity Gas Pipeline Oil Capacity 36,000 bbl/d Up to Gas Capacity 84 MMcf/d, 180 MMcf/d Gas Capacity expandable to 130 MMcf/d Kaybob East AOC 91 km Pipeline Fort…
17 MONTNEY APPRAISAL AT PLACID PLACID MONTNEY HIGH QUALITY LIQUIDS o Completed a 2 well winter appraisal program aimed at demonstrating well performance similar to offsetting operators o 100+ potential inventory (2 separate Montney…
HANGINGSTONE OVERVIEW
19 HANGINGSTONE DEVELOPMENT HANGINGSTONE PROJECT 1 (12,000 BBL/D) HANGINGSTONE INFRASTRUCTURE o Achieved first steam at the end of Q1 2015 o Achieved first oil in July with six well pairs on SAGD production o US50-55/bbl cash flow…
20 PROJECTED HANGINGSTONE RAMP-UP Assumes flat pricing of US50/bbl WTI, 26% WCS diff, 0.78 FX and 3/mcf AECO 12,000 Base Bitumen Production 50 Costs Capitalized Opex 10,000 40 Capex Revenue 8,000 30 MM 6,000 bbl/d…
21 AOC LEARNINGS LEAD TO SUCCESS POTENTIAL LEARNINGS APPLIED 5m of separation as per design ISSUE Drilled more delineation wells than industry KNOW THE average RESERVOIR High definition 3D Seismic Engineering and construction best…
SUPPLEMENTAL INFORMATION
23 KAYBOB DUVERNAY ACTIVITY UPDATE 12 14 6 9 7 8 1 18 5 19 17 15 10 13 11 3 4 2 0 16 See Slide 24 for a summary of well results Apache Chevron Conoco Encana Hitic Shell Talisman Trilogy XTO Other Trilogy…
24 KAYBOB DUVERNAY WELL SUMMARY Duvernay Well Summary Well UWI Key Dates Drilling Summary Completions Summary Production*** Spud On Prod. Spud - RR Lateral Stages** Water Sand IP30**** Cum. Production To Date mmm-yy mmm-yy days m m3 /…
INDUSTRY DUVERNAY ACTIVITY LEVELS AT KAYBOB HIGHLIGHTS LICENSES, SPUDS AND ON PRD. WELLS 70 Licenses o 450 wells licensed in the play to date Spuds 60 On Prd. o Q1 saw a record 32 wells placed on production 50 o Q2 has seen…
PEER LEADING LIQUIDS SHALE PLAY 26 EXPOSURE HIGHLIGHTS PLAY DEVELOPMENT PHASES o Athabasca has exposure to 200,000 acres (98% WI) of prospective Duvernay at Kaybob Emerging Plays Commercial Blowdown Development o Majority of land…
27 DEBT AND CREDIT FACILITY OVERVIEW UNDRAWN CREDIT FACILITIES Q2 2015 INTEREST RATE PRE-PAYMENT TERMS Cdn 125MM senior secured revolving credit facility due 2017 124 5% Pre-payable without penalty 05/2015 102% US 50MM senior secured…
28 OTHER LONG TERM ASSETS Slave Point BIRCH SLAVE POINT o 675,000 acre land position o 2.1 Bbbl contingent resource1 (best estimate) o Validated oil production with 2013 pilot program Birch Dover DOVER WEST SANDS West…
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