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EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd.

Tamarack Valley Energy Ltd. · Aug 18, 2015 · 25 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 1
    TVE: TSX-V www.tamarackvalley.ca Being Sustainable in this Low Price Environment August 2015 1
  2. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 2
    Key Points in this Presentation Tamarack Strategic Response Current Competitive Advantage to Down Cycle Sustainable growth at C50/bbl Stop spending when service (US44) for 2 years or C60/bbl costs are high and oil prices are (US52)…
  3. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 3
    What Successful Companies Do in a Downturn High cost, low Price recover with commodity Reality sets in lower costs locked in Poorest economics Period to negotiate contracts Deploy capital Pumping costs Drilling day rates…
  4. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 4
    Cardium Oil TVE is Delivering the Best Economic Returns 60% 100 IRR (%) NPV 15 Break-even (C/bbl) 90 89.87 50% 49% 80 70 71.04 40% 70.5 64.88 60 62.85 62.25 36% 58.98 33% 55.71 30% 50 51.74…
  5. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 5
    Wilson Creek at End of Q1/15 Alder Flats Construct 8 P/L connecting Alder Flats with TVE Wilson TVE land Creek (5.2 mm) Existing Cardium producers Existing vertical Cardium oil wells Q4/14 Drills 2015 Drills Gas plant Battery…
  6. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 6
    Wilson Creek After Tuck-in Acquisition Alder Flats Reduce P/L length by 2/3, size by 2 (3.5 mm savings) TVE land Acquisition land Existing Cardium producers Existing vertical Cardium oil wells Q4/14 Drills 2015 Drills Gas…
  7. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 7
    Wilson Creek Dominant Infrastructure 16-2 MWB Pembina P/L Connection 9-24 Pump Station TVE land Capacity 2,000 bbls/d Existing Cardium producers 20% utilization Existing vertical Cardium oil wells Q4/14 Drills 2015 Drills…
  8. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 8
    Wilson Creek 2015 Tuck-in Acquisition Overview What We Bought Strategic Rationale Acquisition price 54 million Three separate one-off deals Production (45% liquids) 1,450 boe/d Blocky contiguous lands allow for Decline rate 20% more…
  9. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 9
    Additional Upside to 2014 Wilson Acquisition Plan Reduction in Opex 20 5000 11.40/boe to 8.00/boe Lifting Costs (/boe) Monthly Expense (K/Month) 18 4500 NPV10 29 million Production (boe/d) 16 4000 5 Reactivation / Recompletions…
  10. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 10
    Wilson Creek - Drilling & Completion TVE Advantage Drilling Cost Per Meter Completion Cost Per Stage 700 100 600 532 31% 72 47% 000s per stage 75 per meter 500 443 400 368 376 340 53 50 42 43 300 35 1.5 mile 1.5…
  11. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 11
    Wilson Creek - Recycle Ratio 1 mile well - C60/bbl (US52) 1.5 mile well - C60/bbl (US52) 4.0 4.0 Operating Current 3.5 3.5 expense economics Current 3.3 at 60/bbl cost cut Operating economics expense at 60/bbl 3.0 3.0 cost…
  12. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 12
    Wilson Creek Cardium Oil Drilling Inventory 160 Alder Flats 140 Wilson Creek PUDs booked Dec 31/14 120 100 80 60 40 20 0 50 60 70 80 90 ... Lightly booked high quality drilling inventory; exiting 2015 with 39%…
  13. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 13
    Tamarack Profile TVE : TSX-V Corporate Operational 2013 2014 2015e Shares outstanding* (mm) 99.93 Production (boe/d) 3,276 5,717 8,000 - 8,200 Fully diluted* (mm) 104.53 Exit Q4 avg. prodn (boe/d) 4,718 7,681 9,200 9,500 Share…
  14. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 14
    2015 Budget Prices AECO - Gas /GJ Edmonton Par - Oil /bbl 5.50 80 5.00 70 Budget price 4.50 2015 2.70/GJ AECO 60 4.00 2016 3.00/GJ AECO 3.50 50 Budget price 3.00 2015 49.15/bbl WTI 40 2.50 56.75/bbl Edm Par 30 Assumptions: 2016…
  15. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 15
    Current Oil Hedges as at August 15, 2015 Term Hedge type Counterparty Volume Cdn Pricing April 1, 2015 to June 30, 2015 WTI fixed price Macquarie Bank 1,000 bbls/d Cdn 93.25/bbl July 1, 2015 to August 31, 2015 WTI fixed price…
  16. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 16
    Revised 2015 Budget Financial Stats per BOE 2014 Actuals 2015 Budget 6 month 2015 Results Average pricing 49.15/bbl WTI Edm Par 94.09/bbl 56.75/bbl 60.59/bbl AECO (monthly index) 4.40/GJ 2.70/GJ 2.80/GJ /boe Revenue 60.38 36.13…
  17. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 17
    Current Wilson Creek Economics 400% Assumptions 1 mile well 1.5 mile well 1 mile well CAPEX (m) 2,385 2,945 1.5 mile 350% TVE to deploy capital Net reserves (mboe) 124 189 TVE H2/15 IP30 (boe/d) 303 455 hedges 300% TVE Q1/16…
  18. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 18
    Key 6 Month Objectives and Look-back What we did in Objectives for What we said we would do Q1 2015 / Q2 2015 Q3 2015 / Q4 2015 Deliver 8,000 boe/d in Q1/15. Q1/15 averaged 8,092 boe/d. Cautiously proceed with drilling program to…
  19. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 19
    Why Buy/Continue to Own Tamarack Resilient assets in low commodity price environment Preserves a solid balance sheet As commodity prices improve, TVE high quality inventory will be economic earlier than most inventory TVE has a plan…
  20. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 20
    Appendix 20
  21. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 21
    Circa 2010 Strategy and Culture Holds Up in Tough Times Key Points Out of Strategy Applicable Today Full cycle ROR decision making Still want 1 to 1.5 year paybacks or will divert capital Manage the balance sheet Ensure survival…
  22. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 22
    Break-even Economics What oil price do each companys core plays need to achieve a 15% return Oil plays by break-even price mid-cycle, 15% hurdle rate (C/bbl Edm Par) TVE 39 Note: Break-evens for heavy oil plays are to the Edm…
  23. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 23
    Internal Rates of Returns Which companies and oil plays offer the best returns Oil plays by IRR TVE 49% Source: geoSCOUT; company reports; CIBC World Markets Inc. 23
  24. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 24
    Wilson Creek - Recycle Ratio 1 mile well - 70/bbl 1.5 mile well - 70/bbl Current 4.0 4.0 economics Current Operating at 70/bbl economics expense 3.5 Operating at 70/bbl 3.5 cost cut expense 3.3 0.7 cost cut 3.2 20% 3.0 3.0…
  25. EnerCom The Oil and Gas Conference – Tamarack Valley Energy Ltd. – slide 25
    Wilson Creek - Payout 1 mile well - 70/bbl 1.5 mile well - 70/bbl 1.6 1.6 20% capital cost cut Operating 20% capital expense cost cut 1.4 1.4 1.3 0.3 cost cut Current 1.2 economics 1.2 Operating at 70/bbl 1.1 0.3 expense cost…

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