August 13, 2015 Investor Presentation www.andersonenergy.ca
3 Why Invest in Anderson Focused Development on Cardium Horizontal Wells in Central Alberta Focus is on growing light oil and condensate production - objective is to have production weighting exceed 50% oil, condensate & NGL…
4 Why Invest in Anderson 35 Million Non-Dilutive Financing Closed January 23, 2015 Improves 2014 year end liquidity by 34.5 million, net of 2015 expenses of 0.5 million. Continues rationalization of shallow gas assets. Transaction…
5 Why Invest in Anderson Results for Three Months Ended June 30, 2015 Funds from Operations 1.5 million Production 2,260 BOED (46% oil, condensate & NGL), Cardium production 1,776 BOED (55% oil, condensate & NGL) 125 BOED of…
6 Why Invest in Anderson 2014/2015 Winter Drilling Program Average IP 30 for the nine Cardium wells with more than 30 days of production data has been 413 BOED (85% oil, condensate & NGL). Average oil, condensate & NGL IP 30 for…
7 Why Invest in Anderson 2013/2014 Winter Drilling Program Eight Cardium horizontal wells drilled in late 2013 & first half of 2014, with an average IP 30 of 511 BOED (53% oil, condensate & NGL) New Cardium Liquids-Rich Gas…
8 Why Invest in Anderson Cardium Well Performance Average IP 30 for 19 Cardium well completions in the Willesden Green area since January 2012 has been 469 BOED (68% oil, condensate & NGL). Recent industry publications indicate…
9 Why Invest in Anderson Cost Saving Measures: 2015 cash G&A costs are estimated to be reduced to 7 million per year down from 8.3 million in 2014. 2015 operating expense per BOE is estimated to be 10.30/BOE down from 12.43/BOE in…
10 Why Invest in Anderson Cardium Production: Jan 2014 to Jan 2015 Cardium growth rate: BOED 137%, oil 81% 2014 Cardium production was 1,927 BOED, Q4 2014 was 2,260 BOED First Half 2015 Cardium production of 1,890 BOED with 222…
11 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes(June 30, 2015 298,600 shares/d Management & Directors own 12 months trailing) approximately: 11% of the common shares Shares…
12 2015 Operating Cost Reduction 2015 Operating Cost Reduction Initiatives: Most of the initiatives were implemented in March/April and would benefit Q2-Q4 2015 14-18% reduction in contract operating rates Buyout of rental…
13 Horizontal Well Technology Update In the recently completed drilling programs, the Company optimized the trajectory of the horizontal well through the Cardium formation to obtain better well performance. The Company continues…
14 Shallow Gas Optimization Update On January 23, 2015, the Company sold approximately 500 BOED of predominantly shallow gas from 78 wellbores. Minor shallow gas property dispositions are estimated to close in the third quarter.…
15 GLJ Reserves Report Effective December 31, 2014 GLJ estimated the Companys reserves to be: 3.7 MMBOE PDP, 5.3 MMBOE TP and 9.2 MMBOE P&P. The oil, condensate & NGL contribution was 38%, 40% and 44% of the totals respectively.…
16 GLJ Reserves Report Effective December 31, 2014 GLJ recognizes 30% of Companys drilling inventory as P&P reserves. Total Company NPV 10 P&P was 96.1 million, which is 4% less than last year. The average price forecast reduction…
17 Managing Our Risk Hedging Philosophy Hedge produced oil and natural gas volumes to protect capital program and reduce cash flow volatility Continue to evaluate the merits of further price management strategies as market…
18 Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium horizontal drilling Guidance Q3 2015 1,800-2000 BOED production (45% oil, ALBERTA condensate & NGL), includes impact of 500 BOED…
19 Operations Overview Cardium horizontal drilling focused on the halo or T50 periphery of major Cardium fields The best wells are positioned in good quality rock T45 Away from potential pressure depletion and old waterfloods…
20 Operations Overview Evolution of Cardium Drilling & Completion Practices 7,500 Impact on Costs and Productivity 500 469 BOED, IP30 6,750 450 Slickwater Fracs (19 wells) Jan- 2012 to present 6,000 400 LEF Fracs (20 wells) Aug-…
21 Operations Overview Slickwater Frac Stimulation Carrier fluid is like soapy water with no gellant and hence the term slickwater. Both broad industry and Anderson specific data indicates slickwater fracs result in significant…
22 Operations Overview Light Oil Horizontal Locations August, 2015 Gross Net (1) Area Locations Locations Willesden Green Cardium 75 56.0 West Pembina/Buck Lake Cardium 26 7.8 Glauc/Belly River 8 7.3 TOTAL DRILLABLE 109…
23 Summary First Half 2015 production of 2,481 BOED (46% oil, condensate & NGL), exceeding original guidance of 2200-2400 BOED. TCPL outages in first half of year were 222 BOED. Cardium production growth from January 2014 to January…
24 Summary Average IP 30 for the nine Cardium wells in 2014/2015 program is 413 BOED (85% oil, condensate & NGL). Long-Reach Cardium well IP 30 of 651 BOED (92% oil, condensate & NGL). An industry publication indicated this well is…
25 Summary Guidance for Q3 2015: 1,800-2000 BOED production (45% oil, condensate & NGL), including TCPL outages estimate of 200 BOED and the anticipated sale of various shallow gas assets in Q3. Cost saving measures include: 2015…
www.andersonenergy.ca Head Office Contact Information 1000, 555 4th Avenue SW Brian H. Dau Calgary, Alberta T2P 3E7 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
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