POSITIONED FOR LONG TERM SUSTAINABILITY AND GROWTH November, 2014 TSX:SGY www.surgeenergy.ca
RECENT DEVELOPMENTS Continued success in Upper Shaunavon 6 wells drilled by end of Q3: each currently producing 200 bopd. Discovery well maintaining production 180 bopd Larger OOIP(1); now 200mm OOIP; 100 additional locations Plan…
WHY OWN SURGE ENERGY Low risk, high quality, crude oil asset and opportunity base; 15 year RLI (with 2 years of FDC/cash flow); Very low all-in sustainability ratio…
SURGE ENERGY INC. Elite, operated, large OOIP crude oil reservoirs, with low recovery factors; over 2.0 Billion barrels of net OOIP under management - with current recovery factor of 8% Strong balance sheet; ongoing risk…
KEY VALUE DRIVERS (RISK ADJUSTED) 1. 4% organic annual per share growth in reserves, production and cash flow; and 2. 9% dividend yield(1); and 3. Debt reduction (i.e. due to low sustainability ratio) increases NAV; and 4.…
CURRENT GUIDANCE OPERATIONAL 2014E Exit Production (boe/d) 21,350 (84% Oil/NGLs) RLI 15 years based on 2014E exit production 2014E Capital Spending 142 million 2014E Wells Drilled 66/43.5 gross/net wells 1 2014 Decline 22% 2014…
EXCELLENT CAPITAL EFFICIENCIES / REPLACEMENT METRICS Areas/Formations Rates of Drill/ Mboe/well Core Area Locations Capital Efficiency Return Complete/ 180 day IP (on primary) (Gross / Net) % Equip Valhalla 14,300/boepd 130% 4.3MM…
SUMMARY OF QUALITY OIL RESERVOIRS LARGE OOIP(1) WITH LOW RECOVERY FACTORS OOIP (MMbbls) Drilling Locations Cum Oil Total Booked Independent Internally Estimated Ultimate Avg. WI (2) Core Area Formations Recovery Recovery Factor P+P…
QUALITY WATERFLOODED RESERVOIRS LOW DECLINE Current Properties Under Full Commercial Waterflood Area Formation Start Date 2014 Decline Current RF Booked RF Expected RF Lloyd/ Silver 1996 18% 12.6% 35.7% 39.0% Cummings Wainwright…
SW SASKATCHEWAN Shaunavon (Lower and Upper) 375 MMbbls of Net OOIP in the Lower and Upper Shaunavon formations (medium gravity oil) Current recovery factor 1.1% Rates of return in excess of 136% (1) for the Upper Shaunavon 369…
Upper Shaunavon Regional R21W3 R19W3 T10 Leitchville T8 Leon Lake Dollard T6 SGY Lands T4 Upper Shaunavon Wells
WILLISTON BASIN SE Sask Midale, Macoun and Pinto Areas (Midale) Midale 211 MMbbls of Net OOIP (35-37 degree API) Weyburn Current recovery factor 5% of OOIP Rates of return 57% (1) Macoun 118 gross/91 net drilling locations…
WILLISTON BASIN SE Sask Ingoldsby & Silverton Areas (Frobisher/Alida) Ingoldsby 159 MMbbls of Net OOIP (35-37 degree API) Silverton Current recovery factor 22% of OOIP Rates of return 64% (1) Gainsborough 40 gross/31 net…
WILLISTON BASIN Manson (Bakken/Three Forks) Manson 64 MMbbls of Net OOIP (35 degree API) Current recovery factor 1.2% of OOIP Rates of return 26% (1) 38 gross/34 net drilling locations remain at Manson 2 injectors have been…
SW SASKATCHEWAN Viking Plenty Operated; high working interests High netback 55/bbl Rates of return 44% (1) 127 MMbbls of Net OOIP (37 degree API) in the Dodsland Viking formation Current recovery factor 0.7% of OOIP 138…
SE ALBERTA Provost / Eyehill / Wainwright Area (Cretaceous Sands) Wainwright 400 MMbbls of Net OOIP (23-31 degree API oil) Multi-zone, medium gravity crude at shallow depths…
SE ALBERTA Nevis Area (Wabamun) 90 MMbbls of Net OOIP (23-31 degree API oil) Current recovery factor of 3.9% Low-decline, high ROR assets that provide stable cash flow base Continued positive oil response from expanded…
WESTERN ALBERTA Valhalla South / Wembley (Doig) Valhalla 130 MMbbls of Net combined OOIP at Valhalla and Wembley (40 degree API light oil) Rates of return of 130% (1) Current recovery factor 2.5% 46 gross/38 net drilling…
WESTERN ALBERTA Nipisi (Slave Point) Analogue Slave Point Waterflood 149 MMbbls of Net combined OOIP (35-42 degree API) in the Slave Point and Gilwood Formations at Nipisi and Nipisi South Current recovery factor 3.1% of OOIP…
RISK MANAGEMENT/HEDGING STRATEGY The Company has an orderly, on-going, Oil Hedges risk management / hedging program 10,000 65% designed to lock in future cash flows to protect the Companys capex 9,000 51% 51% Oil Volume Currently…
PRO-FORMA RESERVE BOOKINGS Total 2P Total 2P FDC FDC / CF Company Reserves (MM) Ratio* (mmbbl) Surge 73.5 391.2 - SE Sask Asset (RPL) 6.1 25.2 - Longview 37.6 215.5 - Pro-forma 117.2 631.9 1.9* *Note: Assumes 2015E FFO of…
PRO-FORMA ESTIMATED 2013 TAX POOLS ESTIMATE TAX POOL (MM) Canadian Exploration Expense 24 Non-Capital Losses 147 Canadian Development Expense 329 Canadian Oil & Gas Property Expense 829 UCC 250 Share Issue Costs 19…
SURGE POSITIONED FOR LONG TERM SUSTAINABILITY Low base decline 22%, high netbacks, excellent capital efficiencies Very low all-in sustainability ratio…
SURGE POSITIONED FOR GROWTH Focused, high quality, crude oil asset and opportunity base; core properties are 100% operated with working interests of 90% Elite, large OOIP crude oil reservoirs with low recovery factors; 15 year…
ANALYST COVERAGE Financial Institution Analyst Email Address BMO Capital Markets Jim Byrne jim.byrnebmo.com Canaccord Genuity Anthony Petrucci apetruccicanaccordgenuity.com CIBC World Markets Inc. Jeremy Kaliel jeremy.kalielcibc.ca…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bankers: Bank of Montreal JPMorgan Chase Bank, N.A. ATB Financial HSBC Bank Canada Auditor:…
NON-GAAP MEASURES NON-GAAP MEASURES This presentation includes non-GAAP measures as further described herein. These non-GAAP measures do not have a standardized meaning prescribed by International Financial Reporting Standards (IFRS…
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