The Seven Generations Strategy Financial Sustainability Profitable growth to achieve positive free cash flow Full Cycle Profitability Earning a return on capital employed across the entire commodity cycle Stakeholder…
Seven Generations Overview & 2016 Guidance Capitalization 2016E Guidance Initial Public Offering Closed November 5, 2014 Production (% Liquids) (Mboe/d) 100-110 (55-60%) Ticker symbol TSX: VII Rig Count () 6-7 Basic Market…
7G: Strong Track Record of Consistent Performance & Growth Production (boe/d) Funds From Operations (MM) Montney Land (acres) 120,000 500 450,000 407,475 100,000 - 110,000 400,000 100,000 400 350,000 328.5 80,000 300,000…
2016: Strong Production Growth with Reduced Capital Investment YTD 2015 Production & Guidance Cumulative YTD Capital Spending & Guidance Actuals Guidance * Cumulative Actuals Guidance * (-15%) +80% Forecast annual production…
Montney: Multiple Market Access Options Montney Location Summary Pipeline connected Multiple transcontinental natural gas pipelines Regional liquids gathering system Regional sour gas gathering and processing Close proximity…
The Boot Diagram: Ranking Project Competitiveness NYMEX (USD/MMbtu) Breakeven* Price by Play YTD NYMEX Henry Hub Price Range Source: Credit Suisse Equity Research August 10, 2015 *Assumes a 15% IRR, US60/bbl WTI, US5/bbl…
Improved Production Results Within the Nest Condensate Yield Number of Wells Gas (MMcf/d) Condensate (bbls/d) Total (boe/d) (bbls/MMcf) Nov 15 Nov 14 Nov 15 Nov 14 Nov 15 Nov 14 Nov 15 Nov 14 Nov 15 Nov 14 IP30 88 34 54 4.3 4.8…
Upgraded Nest 2 Type Curves Flatter decline profiles due to intentional choking during flowback (slowback) Higher liquids yield over first year in upgraded curves (118 vs. 92 bbls/MMcf condensate-gas ratio) Lateral length increased to…
Individual Well Economics: Upgraded Nest 2 Type Curve Flat pricing: 50 US/bbl WTI, 2.80 US/MMBTU NYMEX, 0.76 USD/CAD, all pre-tax Upgraded base Production sensitivities using type curve new base type curve 2014 Nest 2 2015 Nest 2 +…
Individual Well Economics: IRR Sensitivities (half-cycle, pre-tax) Current 2016 -2018 Hedge Position Assumptions: - 50 US/bbl WTI, 2.80 US/MMbtu NYMEX HH and 0.76 USD/CAD. NGLs as % of WTI: C3 35%, C4 50%, Alberta C5+ 93%.…
Drilling & Completions Cost Performance Average Drilling & Completion Costs Drilling Costs & Lateral Length Completion Costs per Tonne Drilling Costs per Lateral Metre Note: Costs are as of November 5, 2015 and include…
Drilling Improvements: 2011 2015 Average Well Cost vs. Depth 40% increase in lateral length for approximately 35% lower drill cost Resulting change of 55% from 4,240/m lateral to 1,915/m lateral Recent 7G pacesetter…
Next Steps in Well Optimization: High Intensity Completions Tighter frac stage spacing Larger proppant tonnages 2015 average stage spacing of 100 107 metres (28 stages per 2800m 3000m well) Historical frac intensity of 120 tonnes per…
Production Growth Plans: Transportation and Processing Arrangements Transporting rich gas production on the Alliance pipeline system with Aux Sable processing arrangement Additional firm capacity with McDaniel estimated 2016…
Efficiently Delivering Resource to Markets 7G Lator Shallow Aux Sable 7G Super Pad Cut Processing(1) Chicago Processing Chicago gas sales (B) (A) Dehydrated gas via Rich gas via Chicago NGL sales 7Gs gathering system Alliance…
7G Key Value Drivers Corporate liquids yields greater than 250 bbls/MMcf High Quality Primary development block (Nest 2 type curve) with half-cycle supply cost < US 1.00/MMBtu at US 45 Asset WTI or < US 0.00/MMbtu supply cost at…
APPENDIX
Seven Generations - Level 1 Corporate Policy Statement We believe that Companies have only the rights given to them by society. While people have a natural entitlement to basic rights, corporations are an instrument created by society…
Selected Financial and Operational Information OPERATING Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 YE 2014 Average daily production Condensate & Oil (bbls/d) 22,606 20,702 15,810 14,747 12,580 9,264 7,554 11,061 NGLs…
Hedge Position as of Nov 30th, 2015 Hedge Position November 30, 2015 2015 2016 2017 2018 Q4 2015 ROY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018…
Well Results within the Nest Nest 2 Nest 1 Gas C5+ Total C5 +Yield Wells Gas C5+ Total C5 +Yield Wells Mcf/d bbls/d boe/d bbl/MMcf () Mcf/d bbls/d boe/d bbl/MMcf () IP30 4,756 874 1,667 184 73 2,315 651 1,036 281 15 IP90 4,709…
Inventory of Montney Wells Updated to Q3 2015 In Progress Well Wells down due to Nest 1 Drilling Phase Completion Phase Tie-in Phase Producing Wells Inventory Concurrent Ops January 1, 2015 1 4 1 6 7 2 April 1, 2015 0 0 2 2 13…
Nest 2 Type Curve Raw Gas Production vs. Producing Wells Key assumptions: - Non-producing days have been removed. All data is normalized to 28 stages. Normalization assumes directly proportional relationship between completed…
Nest 2 Type Curve Wellhead Condensate vs. Producing Wells Key assumptions: - Non-producing days have been removed. All data is normalized to 28 stages. Normalization assumes directly proportional relationship between completed…
Strong History of Resource + Reserve Growth & Conversion Reserves and Resources(1) Current Land Position(2) Resource to Reserve Conversion (MMboe) March 31, 2013 December 31, 2014 7% 28% 39% 35% 58% 33% March 31, 2013…
Sweet Spot of the Montney Over Pressured High Productivity Brittle Rock High Recovery Factor Thickness Large Resources in Place Lower Temperature High Liquids Content Sources: Canadian Discovery & GDGC (2008, 2011), & Steven…
Upside Potential from Upper Montney Extension and Secondary Targets 7G ACREAGE HELD BY ZONE (September 30, 2015) Badheart Muskiki Gross Gross Net Average Cardium Zone Net Acres Acres Sections Sections WI Smoky Kaskapau Cardium…
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