SUSTAINABLE CONVENTIONAL RESOURCE COMPANY TSX: SGY DECEMBER, 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(1) 2015(e) Production Exit Rate 14,500 boepd (76% oil) Low Decline of < 21% (RLI 15 years) Q3 2015 Net Debt:…
2016 CAPITAL PROGRAM Protecting NAV and balance sheet through conservative capital spending OPERATIONAL Average Production (boe/d) for 2016 14,000 (76% Oil/NGLs) Capital Spending for 2016 50 million DCET 26.9 million Waterflood…
50MM(e) CAPEX TO MAINTAIN 14,000 BOE/D IN 2016 Maintaining production with modest capital as a function of low corporate declines and excellent well results Estimated 2016 Capital Required to Maintain 14,000 boe/d IP365 Capital…
ELITE ASSETS FOCUSED IN THREE CORE AREAS Large OOIP pools in established conventional reservoirs Surge 2015e Exit Production: Total: 14,500 boe/d (76% Oil & NGLs) (57% on AB Crown) Western Alberta Production: Total: 7,900…
CORE AREA DETAILS 1.4 Billion bbls net OOIP with potential to recover an additional 129 Million unbooked bbls (net to Surge) Internally Estimated Ultimate OOIP (MMbbls) Drilling Locations Avg. CTD Oil Total Booked Independent…
TARGETING CONVENTIONAL RESERVOIRS 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 Capital expenditures decrease, Recovery while recovery factors and ROR rates…
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 December 2015 strip pricing Areas/Formations Rates of Capital Drill/ Complete/ Mboe/well Core Area Locations Return (1) 180 day…
QUALITY WATERFLOOD PROJECTS Waterflood - increasing reserves & flattening declines Current Properties Under Commercial Waterflood Area Formation Start Date 2015 Decline Current RF Booked RF Expected RF Silver Lloyd/ Cummings 1996 10%…
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 greater 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)…
UPPER SHAUNAVON ACTIVITY 250MMbbl OOIP on Surge lands in the Upper Shaunavon R21W3 R20W3 R19W3 Upper Shaunavon A Sand T7 Upper Shaunavon B Sand Upper Shaunavon C Sand Lower Shaunavon T6 SGY Q3 Waterflood Pilot…
UPPER SHAUNAVON PERFORMANCE Surge horizontal results in the Upper Shaunavon outperforming area average Upper Shaunavon Monthly Production vs Area Average 400 SGY Wells Normalized Rate 350 SGY Wells Normalized Cum Area Avg…
SHAUNAVON DEVELOPMENT PLAN Increased cashflow and recovery through drilling (25/yr) and early waterflood implementation Surge Energy Shaunavon Development: 55 US WTI FLAT, FX = 0.75 8000 400 Surge Prod Forecast - with Waterflood…
NORTHWEST ALBERTA Large OOIP 700MMbbls in concentrated high quality light oil assets Large OOIP of 700 (600 net) MMbbls of high quality Valhalla light oil (32-40 API) OOIP: 228 mmbbl (195 mmbbl net) Nipisi OOIP: 155 mmbbl (150…
NORTHWEST ALBERTA - VALHALLA Firm service agreements for Alliance and TCPL pipelines mitigates production restrictions Valhalla Doig 130 MMbbls of net combined OOIP on Surges Sexsmith Valhalla and Wembley Lands (40 API light oil)…
VALHALLA DOIG PERFORMANCE Recent drilling in Valhalla has yielded 3 of the top oil wells in Canada year to date North Valhalla Doig Recent drilling results outperforming type curve and exceeding expectations Optimization of drilling…
SOUTHEAST ALBERTA - SPARKY Provost / Eyehill / Wainwright areas Oil saturated Cretaceous sands Wainwright 428 MMbbls of net OOIP (23-31 API oil) Current recovery factor…
RISK MANAGEMENT / HEDGING STRATEGY The Company has an orderly, on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capex program and fund dividends. Surge has 5,500 barrels per day…
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 Ray Kwan ray.kwanbmo.com Canaccord Genuity Anthony Petrucci apetruccicanaccordgenuity.com…
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