HEALTHY BUSINESS UNDERPINNED BY BALANCED PORTFOLIO Dry Gas Marcellus ? Free cash flow positive ? Operational excellence ? Egress secured ? Running room Heavy Oil Chauvin ? Free cash flow positive ? High value oil production ?…
MATERIAL DEVELOPMENT POTENTIAL Land position Net acres (?000) Resource potential (unrisked) mmboe 0 200 400 600 Greater Edson Duvernay Chauvin Eagle Ford Marcelus 0 500 1,000 1,500 2,000 Prospective Contingent Duvernay…
SUSTAINABLE PROFITABLE GROWTH 2P COGEH reserves and RLI mmboe 0 100 200 300 400 500 5 0 10 15 20 Marcellus Chauvin Greater Edson Eagle Ford 2P COGEH Reserves Reserve Life Index years 0 20 40 60 80 100 120 140 160…
SELF-FUNDING CAPITAL PROGRAM ? Free cash flow turning point 2015 ? Focus on liquids ? Leveraged to natural gas prices * Includes results from ongoing operations and assumes 50% joint venture in Duvernay ** Assumes COGEH price deck…
0 10 20 30 40 50 60 70 Chauvin Eagle Ford 5 4 3 2 1 0 Marcellus Greater Edson FOCUSING ON HIGH MARGIN CORE AREAS North America liquids ? Field cash flow margins $/boe 95% liquids >60% liquids 6.8 17.4 40.0 12.3 13.8…
TLM operated MARCELLUS Cabot Chief/Keeton/Radler SWEPI/Ultra Chesapeake/Statoil/ Anadarko Tennessee gas pipeline North Penn gas pipeline Proposed TEUSA pipeline TEUSA pipeline TLM compressor station
IMPROVED D&C METRICS ? MORE WELLS FOR THE SAME COST 0 100 200 300 2011 2012 2013** Drilling cost per well* Avg. $ per foot 0 200 400 600 800 2011 2012 2013** Completion cost per well* Avg. $ per stimulated foot 5 0 10…
OPERATIONAL EXCELLENCE ? PRODUCTION OPTIMIZATION Improvement in volumes 10%
Gulf Coast Northeast TGP 500 Pool 800 Pool Henry Hub TLM Meter 219 Dominion Empire Empire pipeline to Chippawa Tennessee gas pipeline to Gulf Coast Marcellus ? transportation contracts mmbtu/d 150 475 ? Low-cost firm…
EAGLE FORD La Salle County Live Oak County McMullen County Talisman operated TLM/STO land Oil Liquids Gas Statoil operated DeWitt Karnes County County
OPTIMIZING VALUE FROM LIQUIDS-RICH SHALE PLAY Materiality Cost Structure Competitive Advantage ? ~60,000 net acres, majority held by production ? 118 million boe of 2P reserves ? > 60% liquids ? Doubled production over last 2…
EAGLE FORD ? FREE CASH FLOW FROM 2016 Sources and uses of cash* $ million Production mboe/d 0 10 20 30 40 50 2013 2014 2015 2016 2017 2018 Gas Liquids 0 200 400 600 800 Capital Cash flow* 2013 2014 2015 2016 2017 2018…
CONTINUOUSLY IMPROVING OUR PERFORMANCE D&C cost per well $ million Drilling cost per well Avg. $ per foot Completion cost per well Avg. $ per stimulated foot Drilling cycle time Days 8 6 4 2 0 10 12 2011 2012 2013 Completion…
TECHNOLOGY IMPROVEMENT ? HIGHER RECOVERY, PRODUCTION AT LOWER COST ? Production optimization ? McMullen County centralized gas system ? Gas lift and paraffin strategies ? Additional compression ? line pressure reductions ?…
STABLE FREE CASH FLOW GENERATION Materiality Cost Structure Competitive Advantage ? ~900 million boe original oil in place (net) ? >200,000 net acres (40 million boe 2P reserves) ? Optimization, infill drilling and enhanced…
RECOVERING MORE FROM LARGE VOLUMES IN PLACE Zones # of prospective drilling locations Gross Type well (EUR) mboe Sparky (Hz), General Petroleum (Hz), Rex (Vt/Hz) 180 60 Cummings (Hz), Dina (Hz), Leduc (Hz), McLaren (Vt) 95 70…
BYPASSED OIL IN MATURE VERTICAL WELL WATERFLOOD T43 T42 R2 R1 Water injector well Producing well Sparky GP Rex GP Rex Water injector well Producing well Horizontal development Vertical waterflood Sparky Horizontal…
LONG-TERM, LOW-RISK ATTRACTIVE CASH FLOW Sources and uses of cash* $ million Production mboe/d 8 6 4 2 0 10 12 2013 2014 2015 2016 2017 2018 EOR Development/optimization Base ~$80 million Annual free cash flow 0 50 100…
GREATER EDSON Whitecourt Edson Rocky Mountain House Alberta Duvernay South Duvernay North Wild River TLM operated Midstream pipeline Duvernay outline T60 T55 T50 T45 T40 R25 R20 R15 R10 R5 W5 Edson
LIQUIDS-RICH PRODUCTION AND STRATEGIC INFRASTRUCTURE Materiality Cost Structure Competitive Advantage ? 526,000 net acres ? 382 million boe of contingent resource (unrisked) and 715 million boe of prospective resource (unrisked)…
SUCCESSFUL WILRICH PLAY APPRAISAL T55 T50 R24 R20 W5M 2 recent wells; ~7-day test rates Greater Edson Wilrich Hz well results mcf/d Type Curves Actuals Deep Cut Wild River Sundance Edson 0 30 60 80 120 150 180 210 12,000…
WILD RIVER ? DUNVEGAN T57 T55 R25 R23 R21 W5M a a a a a a a a a a ~60-70 bbls/mmcf Wild River Dunvegan Hz well results mcf/d Type Curves Actuals Liquids recovery through deep cut facility Wild River Deep Cut Bigstone…
EDSON ? FREE CASH FLOW GROWTH Sources and uses of cash* $ million Production mboe/d 0 10 20 30 40 50 60 2013 2018 2014 2015 2016 2017 Gas Liquids 0 100 200 300 400 Capital Cash flow* 2013 2014 2015 2016 2017 2018 *…
0 350,000 250,000 150,000 50,000 400,000 450,000 300,000 200,000 100,000 Encana FH Conoco- Apache Phillips Encana Chevron Talisman Shell Trilogy Athabasca XTO JV MAJOR PLAYER ~300,000 net acres Of 100% W.I. prospective…
DUVERNAY Fox Creek Oil Liquids Gas TLM land Exxon Encana Chevron Shell TLM drilled and completed TLM in progress TLM gas plant Rimbey Rocky Mountain House
A PREMIER SHALE PLAY Materiality Cost Structure Competitive Advantage ? ~300,000 net acres (prospective land) ? 1.8 billion boe prospective resource (unrisked) ? Pad drilling will drive costs down ? Experimenting with D&C…
TLM Duvernay Land Leduc Reef Edge Oil Gas Liquids TLM Wells Competitor Wells Pine Creek Encana 06-06 Yield ~487 bbls/mmcf Shell 02/05-30 Yield ~525 bbls/mmcf 1,650M Lateral Encana 06-09 Yield ~370 bbls/mmcf 21 stages Shell…
TLM Duvernay Land Leduc Reef Edge Oil Gas Liquids TLM Wells Competitor Wells Shell 04-21 Yield ~72 bbls/mmcf 3.5 mmcf/d IP 1600M Lateral TLM 03-28 Yield ~264 bbls/mmcf 2.8 mmcf/d IP 14 stages, 1,615M Lateral Encana 02-35…
DUVERNAY ? GROW SUBSTANTIAL PRODUCTION Sources and uses of cash** $ million * Assumes COGEH price deck 0 20 40 60 80 100 2013 2019 2020 2014 2015 2016 2017 2018 Liquids Gas Value growth Future 100 mboe/d ** Assumes 100%…
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