POSITIONED FOR LONG TERM SUSTAINABILITY TSX: SGY AUGUST, 2015
REASONS TO OWN SURGE 100% operated, high quality, low decline asset base High quality light/medium crude oil asset base; low…
SURGE ENERGY Well positioned for growth and sustainable dividends Total Proved plus Probable Reserves of 86.7 mmboe Production Exit Rate 14,500 boepd (76% oil) Low Decline of 23% (RLI 15 years) Exit Net Debt(e): 138MM with…
Q2 2015 HIGHLIGHTS Reduced G&A by 23% and OPEX by 15% as compared to Q1/15 Achieved a debt to funds flow ratio of 0.9x for Q2/15 Q2/15 capital program of 15MM represented only 42% of funds from operations; 90% payout ratio…
SECOND HALF 2015 Second half exit production of 14,500 boe per day with 42.6MM capital spend Conservative 42.6MM capital program 2015 exit rate of 14,500 boepd; production growth of 3% YOY Drill and complete 11 net wells (7 Upper…
SECOND HALF 2015 CAPITAL PROGRAM Protecting NAV and balance sheet through conservative capital spending OPERATIONAL Average Production (boe/d) for 2H 2015 14,250 (76% Oil/NGLs) Capital Spending for 2H 2015 42.6 million Wells…
ELITE ASSETS FOCUSED IN THREE CORE AREAS Large OOIP pools in established conventional reservoirs Surge Production: Total: 14,250 boe/d (76% Oil & NGLs) (57% on AB Crown) Western Alberta Production: Total: 7,750 boe/d (66% Oil &…
CORE AREA DETAILS 1.4 Billion bbls net OOIP with potential to recover an additional 124 Million bbls net to Surge OOIP (MMbbls) Drilling Locations Avg. CTD(1) Oil Total Booked Independent (1) Internally Estimated Ultimate Core…
TARGETING CONVENTIONAL RESERVOIR ROCK Large OOIP, high quality reservoirs tend to get larger over time Conventional reservoirs tend to outperform over time: Year over year recovery factor reserve additions Long life, low decline…
CONVENTIONAL VS. UNCONVENTIONAL RESERVOIRS Surge targets reservoirs that sit on the conventional end of the permeability spectrum Ultimate Oil Recovery factors and Recovery rates of return increase as ROR reservoir…
THREE CORE CONVENTIONAL RESERVOIRS Applying proven technology to conventional reservoirs helps provide top tier performance and recovery factors U. Shaunavon Valhalla Doig Sparky Depth 1450m Depth 2000m Depth 725m Net Pay 4 - 10m…
TOP TIER CAPITAL EFFICIENCIES AND REPLACEMENT METRICS Large inventory with excellent economics using June 2015 strip pricing Areas/Formations Capital Rates of Drill/ Complete/ Mboe/well Core Area Locations Efficiency Return (1)…
QUALITY WATERFLOOD PROJECTS Increasing reserves / flattening declines through waterflood implementation Current Properties Under Full Commercial Waterflood Area Formation Start Date 2015 Decline Current RF Booked RF Expected RF…
SOUTHWEST SASKATCHEWAN - SHAUNAVON 450MM barrels of net OOIP in the Upper and Lower Shaunavon combined 450 MMbbls of net OOIP in the Lower and Upper Shaunavon formations (medium gravity oil) Current combined recovery factor 1.0%…
UPPER SHAUNAVON Large contiguous undeveloped land position in the Upper Shaunavon trend R21W3 R19W3 Area/Pool Well Count Depth OOIP Cum Oil Peak Rate Current Rate T10 Instow Vt Hz (m) (MMbbl) (MMbbl) (bbl/d) (bbl/d) Instow 118…
UPPER SHAUNAVON ACTIVITY 250MMbbl OOIP on Surge lands in the Upper Shaunavon R20W3 R19W3 R18W3 CPG U. Shvn Hz T7 191/13-20-006-19W3 On Prd Mar 2011 IP(90) = 109 BOPD Cum(YTD) = 24.5 mbbl Upper Shaunavon A Sand SGY Q4 14…
UPPER SHAUNAVON PERFORMANCE Surge results in the Upper Shaunavon exceeding expectations Upper Shaunavon - SGY Results vs Type Curve 250 SGY Wells Normalized Rate (bopd) - 10 wells Production Rate (bopd), Cumulative Oil Production…
SHAUNAVON DEVELOPMENT PLAN Increased cashflow and recovery through drilling and early waterflood implementation FOOTNOTES INCLUDED IN THE BACK AS ENDNOTES 18
NORTHWEST ALBERTA Large OOIP 700MMbbls in concentrated high quality light oil assets Large OOIP of 700 (600 net) MMbbls of high quality light Valhalla oil (32-40 API) OOIP: 228 mmbbl (195 mmbbl net) Nipisi OOIP: 155 mmbbl (150…
NORTHWEST ALBERTA - VALHALLA 195MMbbls net OOIP in oil rich Doig and Doe Creek formations Valhalla Doig Doe Creek 130 MMbbls of net combined OOIP on Surges Valhalla Oil Pool and Wembley Lands (40 degree API light oil) Valhalla…
SOUTHEAST ALBERTA - SPARKY Provost / Eyehill / Wainwright areas Oil saturated Cretaceous sands Wainwright 400 MMbbls of net OOIP (23-31 degree API oil) Current recovery factor of 15% Current production: 3,900 boe/d Eyehill…
RISK MANAGEMENT / HEDGING STRATEGY Oil Hedges The Company has an orderly, on-going, risk management / hedging program 100.00 7,500 designed to lock in future cash flows to protect the Companys capex program and fund dividends.…
2014 YEAR END RESERVES 1.4 Billion of Total Proved plus Probable Reserves Value (NPVBT10) 2014 Year End Reserves Proforma SE Sask/MB Disposition Oil& NGLs Gas Total Reserve Category NPVBT10 (MM) (1) (Mbbl) (MMcf) (Mboe) Proved…
POSITIONED FOR LONG TERM SUSTAINABILITY Low base…
HIGH QUALITY CRUDE OIL ASSET BASE Focused, high quality, crude oil asset and opportunity base; 3 core areas are 100% operated, with working interests of 90% Large OOIP crude oil reservoirs with low recovery factors; 15 year…
ANALYST COVERAGE Financial Institution Analyst Email Address Acumen Capital Partners Trevor Reynolds treynoldsacumencapital.com BMO Capital Markets Jim Byrne jim.byrnebmo.com Canaccord Genuity Anthony Petrucci…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bankers: Bank of Montreal ATB Financial HSBC Bank Canada Wells Fargo Goldman Sachs Auditor: KPMG…
ENDNOTES Slide 3: (1) Based on guidance pricing: WTI US65.00, CAD/USD FX 0.81, WTI CAD80.25, WTI-to-EDM differential CAD3.70, EDM light CAD76.55, 2.95/mmbtu AECO Slide 5 - 6: (1) Based on guidance pricing: WTI US65.00, CAD/USD FX…
NON-GAAP MEASURES NON-GAAP MEASURES This presentation includes non-GAAP measures as further described herein. These non-GAAP measures do not have a standardized meaning prescribed by International Financial Reporting Standards (IFRS…
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