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December 2015 Corporate Presentation – Northern Blizzard Resources Inc

Northern Blizzard Resources Inc · Dec 20, 2015 · 36 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. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 1
    Northern Blizzard Resources Inc. December 2015
  2. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 2
    Overview Estimated Shares at Dec 31, 2015 (TSX: NBZ) Public Float 29.8 million shares / 27% Management (1) 4.9 million shares / 4% NGP / Riverstone 78.1 million shares / 69% Outstanding 112.8 million shares Monthly Dividend 0.04…
  3. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 3
    Investment Highlights World-Class Oil Resource Base Approximately 2.0 billion bbl DOIIP(1) with 12% recovered to-date Low corporate decline rate of 17% trending lower Long life, low Long reserve life index decline assets 2P = 19…
  4. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 4
    Low Oil Price Environment Rigorous cost controls Sustainable business model Operating costs decreased by 17% Drilling costs decreased 20 30% Capital allocation Control / minimize capital commitments 43 wells in 2015 versus 250…
  5. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 5
    Oil Production Decline 45% 46% 46% 43% 50% 43% 39% 39% 39% 39% 37% 36% 35% 35% 35% 40% 33% 33% Decline Rate (%) 32% 32% 32% 30% 29% 29% 27% 27% 26% 25% 25% 24% 23%…
  6. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 6
    2015 Operating Costs 2015 annual guidance includes 16.0 operating costs of 17.75/boe, 16% 14.0 Operating Costs (million) lower than costs per boe in 2014 12.0 10.0 Operating costs year-to-date are 8.0 under 17.00/boe and…
  7. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 7
    2016 Guidance Sensitivities Guidance Sensitivities WTI (US/bbl) 50.00 45.00 40.00 WCS differential (US/bbl) (15.00) (14.50) (14.00) CAD/USD 1.330 1.340 1.350 Funds from Operations(1) 150 million 135 million 125 million Total…
  8. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 8
    Credit Capacity & Liquidity Debt Composition Dec 31, 2015 - Estimated Bank Credit Facility 475 million borrowing base, currently undrawn Next borrowing base review in May 2016 Financial covenants: Dec 31, 2015(1) Dec 31, 2016(1)…
  9. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 9
    Strong 2016 Hedging Position 70% 80 74 64% 58 68 70 60% 58% 63 63 61 59 58 58 60 Average Oil Floor Price (USWTI/bbl) 57 Total % Hedged 2016E (oil & gas) 55 55 50% 52 50 50 46 40% 40 32% 30% 28% 25% 30…
  10. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 10
    NBRIs Focus Assets Cactus Lake, Winter, Coleville These three areas represent 55% of NBRI production. Over 600 wells have been drilled since Aug 2010 to Dec 2015 in these areas. Production has grown by 22% CAGR since 2010 through…
  11. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 11
    Represents Industrys Top Project Economics 160 140 Preliminary 2016 Budget 120 Current Remainder of 2016 WTI Strip Price Before Tax Rate of Return (%) 100 80 60 40 20 0 35 40 45 50 55 60 65 70 75…
  12. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 12
    Breakeven Oil Price (C/bbl Ed. Par) 100 0 10 20 30 40 50 60 70 80 90 December 2015 RMP (Ante Creek) - Montney Oil 31 ARC (Tower) - Montney Oil 38 WCP - Viking 39 (2017E)thereafter. Source: CIBC Research.…
  13. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 13
    Production Growth from Cactus Lake, Winter & Coleville 14,000 12,000 10,000 Average Daily Production (boe/d) 8,000 6,000 4,000 2,000 - 2011 2012 2013 2014 2015E 1) Compounded annual growth rate. See…
  14. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 14
    Cactus Lake December 2015 - 15 - Northern Blizzard Resources Inc.
  15. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 15
    Cactus Lake Overview Largest field by production and reserves Strong economics 407 mmbbls DOIIP (1) 8.5% field royalty rate, 2.7% in EOR areas 13% recovered to date 13/boe operating costs 31 mmboes 1P, 49mmboes 2P (2) Sub 10/boe F&D…
  16. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 16
    Cactus Lake Bakken Infill Drilling Rex/Bakken Type Curve -- Rate vs Time 40 35 30 CD Oil Rate (bblpd) 25 20 15 2016 Infill Program 10 5 0 Drill Timing Flood Type Section Well Count 0 12 24 36 48 60 2011 WF 35 37…
  17. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 17
    Cactus Lake Infill Drilling Opportunity 375(1) production wells drilled (Rex/Bakken and Sparky) Drilling Inventory 316 remaining inventory locations identified 400 350 Conservatively booked, 150 unbooked locations 300 Average DOIIP…
  18. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 18
    Cactus Lake Polymer Update Bakken / Sparky polymer performance update Largest North American non-horizontal polymer flood by injection volumes Phase 3A commissioned in March 2015 115 active polymer injectors Current polymer…
  19. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 19
    Cactus Lake PF versus WF Production Performance Normalized comparison between polymer flood 35 Oil Rate (PF) and waterflood (WF) areas 30 25 Oil Rate (bbl/d) 20 15 10 5 0 0 10 20 30 40 Water Rate 700 600…
  20. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 20
    Cactus Lake Polymer Flood vs Waterflood Economics Polymer flood economics highlight: BT ROR Sensitivity to WTI Price 60% improvement in reserves 70 30% improvement in NPV 60 Strong F&D 50 BT ROR% No degradation of ROR% 40…
  21. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 21
    Cactus Lake Reduced Operating Costs, Strong NOI (1) Average Daily Production and Operating Costs 2015 annualized production growth 10,000 20 achieved through: 9,000 Polymer response 8,000 16 7,000 2014 infill program flush…
  22. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 22
    Winter December 2015 - 23 - Northern Blizzard Resources Inc.
  23. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 23
    Winter Overview Largest field by oil in place +600 mmbbls DOIIP < 8% recovered to date 14 mmbbls(2) proved reserves 22 mmbbls(2) proved plus probable reserves Production NBRI +3,450 bbl/d estimated for 2015 Development 191…
  24. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 24
    Winter Value Creation Repeatable Horizontal Drilling Consistent performance 182 horizontal wells drilled for production on 25 meter spacing since 2010 (Dec 31, 2015) Superior economics Winter development provides better…
  25. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 25
    Winter Reduced Operating Costs, Strong NOI(1) Operating costs continue to Average Daily Production and Operating Costs decline 8,000 24 7,000 21 Operating Costs (/boe) Production (boe/d) 6,000 18 Flat year over year 5,000 15…
  26. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 26
    Coleville December 2015 - 27 - Northern Blizzard Resources Inc.
  27. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 27
    Coleville Viking 10,000 Acres in Proven Fairway Raging River Whitecap Novus Teine Ish Crescent Point Penn West Other Operators Company Land Source: The Playbook: Ranking North Americas Oil & Gas Plays Sixth Edition,…
  28. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 28
    Coleville Development Opportunity One of the largest tight oil plays in western Canada NBRI drilled 48 wells from Jan 2014 to Dec 2015 1,100 boe/d estimated for 2015 37.50 per boe field netback estimated for 2015 7.50 per boe…
  29. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 29
    Coleville Coleville Smiley 10 wells will be drilled in Q1 2016 and 15 completed Smiley and Whiteside are expected to provide average peak production rates of 60 boe/d and greater PFRA With capital reductions and strong…
  30. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 30
    SAGD Review December 2015 - 31 - Northern Blizzard Resources Inc.
  31. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 31
    SAGD Development Repeatable Opportunities Large oil in place Strong economics Technology-driven recovery Significant advantages from existing Long life assets infrastructure Est DOIIP 150 mmbbls December 2015 - 32 - Northern…
  32. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 32
    Plover North SAGD Thermal Project Forecast 2,200 5.0 2,000 4.5 1,800 4.0 1,600 3.5 1,400 Average Oil Rate (bbl/d) 3.0 1,200 SOR 2.5 1,000 2.0 800 1.5 600 1.0 400 200 0.5 0 0.0 Q1 2015 Q2 2015 Q3…
  33. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 33
    Plover North SAGD Well Cumulative Oil-Steam Plot 250,000 200,000 CUMULATIVE OIL (bbl) 150,000 100,000 50,000 0 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 CUMULATIVE STEAM (bbl) A3P A4P A5P…
  34. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 34
    2016 Plover North SAGD Plant Expansion 50M 50M BTU BTU Steam Steam Gen Gen A3P A3I A4P A8P A4I A8I A5P A7P A7I A6P A5I A6I December 2015 - 35 - Northern Blizzard Resources Inc.
  35. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 35
    Plover North SAGD Expansion Economics Calculated Indicators WTI Price (US/bbl) 40 45 50 55 60 65 70 Monthly Discount (BT-ROR) 12.9 20.6 28.0 35.0 41.8 48.4 54.8 BT PV 10% 1,404 5,328 9,236 13,130 17,016 20,898 24,775 Recycle Ratio…
  36. December 2015 Corporate Presentation – Northern Blizzard Resources Inc – slide 36
    Corporate Information AUDITOR KPMG LLP ENGINEERING CONSULTANTS Ryder Scott Company - Canada INVESTOR CONTACTS John Rooney, Chairman & CEO Michael Makinson, VP Finance & CFO 1900, 421 7 Avenue SW, Calgary, AB T2P 4K9 (403)…

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