Investor Presentation: Repositioned for Cardium Light Oil Growth November 2013 www.andersonenergy.ca
3 Why Invest in Anderson 1. Focused Development on Cardium Light Oil in Central Alberta Focus is on growing light oil production, objective is to exceed 50% of oil & NGL production volumes with Cardium light oil horizontal drilling…
4 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes(1) 230,000 shares/d Management & Directors own (Past 12 months) approximately: Shares Outstanding(1) 172.5 million basic 10% of…
5 Strategic Alternative Review Completed Highlights Bank debt of 107 million reduced to zero, now 24 million of cash deposits Sold over 405 wellbores in 15 transactions, raising over 150 million Completed all drilling…
6 Operating Netbacks Potential Impact of Natural Gas and Oil Price Changes on Operating Netbacks Average Wellhead Average Wellhead Operating Gas Price Example Oil Price Example Netback (/Mcf) (/bbl) (/BOE) 2014 Examples 3.00…
7 Financing Our Growth Plan 2014 Capital Program Funded with Cash, Cash Flow and Bank Lines Convertible Debentures Series A: 50 million, 7.5% coupon, conversion price 1.55 per share, matures January 31, 2016 Series B: 46 million,…
8 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…
9 Operations Overview Targeting 50% of total production being oil and NGL with Cardium horizontal drilling 2014 Preliminary Production Average Estimate 2,600 BOED ALBERTA 33% oil and natural gas liquids 2013/2014 Preliminary…
10 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 away from potential pressure T45 depletion and old…
11 Operations Overview Evolution of Cardium Drilling & Completion Practices Impact on Costs and Productivity 7,500 500 Slickwater Fracs (7 wells) Feb- 2012 to present 6,750 LEF Fracs (20 wells) Aug- 450 2011 to Jan-2012 455 BOED,…
12 Operations Overview Slickwater Fracs The Results Speak For Themselves Anderson Cardium Slickwater vs Non Slickwater Averages 1200 1000 Non Slickwater Average Slickwater Average Production (boed) 800 600 400…
13 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…
14 Operations Overview Lowest Drilling Costs in the Industry Local Cardium HZ Well Average Historical Drill Costs 4.0 3.5 3.0 2.5 MM 2.0 1.5 1.0 0.5 0.0 X Y Z YY ZZ Anderson Company (data source Cdn…
15 Operations Overview Lowest Completion Costs in the Industry Local Cardium HZ Well Average Historical Completion Costs 2.5 2.0 1.5 MM 1.0 0.5 0.0 X Y Z YY ZZ Anderson Company (data source Cdn Discovery)…
16 Operations Overview Willesden Green Early stage development with sweet spots in the Cardium halo delineated 20 wells on production (68% WI) 102 wells in drill inventory (74% WI) in greater Willesden Green Anderson…
17 Operations Overview Cardium Horizontal Oil Drill Ready Locations Gross Net (1) Area Locations Locations Willesden Green 102 76 Pembina Areas 37 9 TOTAL DRILLABLE 139 85 1. Net is net revenue interest. The December…
18 Operations Overview Second White Specks Emerging Light Oil Opportunity Second White Specks (SWS) is the source rock for the Cardium and is situated 100 metres deeper than the Cardium Oil quality and hydrodynamic pressure regime…
19 Summary Anderson Energy has recently completed its strategic alternatives review and has repositioned itself financially to pursue the Cardium horizontal oil play. Anderson Energy has the lowest capital cost solution for…
www.andersonenergy.ca Head Office Contact Information 2200, 333 7 Avenue SW Brian H. Dau Calgary, Alberta T2P 2Z1 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
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