Creating a Sustainable Business January 2016 TVE: TSX www.tamarackvalley.ca 1
What Sets TVE Apart Culture: Results: Focus on delivering results 2015 exceeded expectations CUT COSTS low cost producer Bankline held at 165 mm Manage the down cycle (experience) Only 100-105 million drawn vs. guidance of Hard…
2016 Budget Principles Top priorities: First balance sheet and bank line liquidity Second modest per share growth Third build low cost inventory through land sales and tuck-ins in core areas; drill non-PUD locations to allow for…
Well Performance Based on Geology Tier 1 4 wells 9% Porosity (green = 2+ meters) Type curve Actual cum production Daily production tests Average daily production Tier 2 2 wells Tier 1 wells Tier 2 wells Type curve…
Tamarack Wells in the Top 10th Percentile Top 10th Percentile Top 25th Percentile Note: The above IRR calculations assume CIBCs base commodity price forecast of US45.00/Bbl WTI & C2.78/Mcf AECO in 2016, and US65.00Bbl WTI &…
Economic Sensitivity Type 1 well Wilson Creek 700% 1.0 mile well 1.5 mile well 600% TVE Economics suggest elimination of 2.0 mile well 2016 1-mile wells Hedging 500% Average Land consolidation has resulted Current in most…
TVE Drilling Inventory 300 Other Cardium Total Inventory 80/bbl, 25% ROR 93 250 303 Locations How many quick payback wells: 38.50 WTI Quick Payback Drilling Inventory Opening inventory: 72 200 Drilled: 15 35 Payout 1.5…
Control What We Can Control - Costs Capital Costs Savings in 2016 Budget CAPEX: 4,500 Equip+Tie-in Completions Drilling Shift to sleeve from ball drop 4,000 Eliminate nitrogen Reduce flaring and conserve 3,500 3,373 Shorten…
Dollars / Stage - Drilling, Completing & Tie In Capital Costs 160 / Stage The real cost benefit and 140 145/stage economic benefit is realized by the DCT cost per stage Capital Cost Per Stage (thousands per stage) 120 60%…
The Evolution of a Core Area Alder Flats TVE land 2014 Acquisition land Entry in 2013 2015 Acquisition land Existing Cardium producers 42 net sections Existing vertical Cardium oil wells Gas plant (10 sec with Cardium pay)…
Capital Efficiency Improvements 2016 vs. 2015 Exit Capital Efficiency 30,000 Decreased facilities from 21% to 4% of budget Longer wells at lower cost 2016 Program 25,000 from 2.3 mm / well / mile to 52 million 2.0 mm / well / mile…
Wilson Creek Mannville Competes for Capital TVE Target TVE Budget AECO Price (2.45/GJ; 2016 avg.) Offset 100% WI 55% WI Capital (mm) 3,050 3,050 1,693 Risking 100% 90% 90% Rate IP30 (mmscf/d) 4.8 2.9 1.6 Reserves (bcf) 5.03 3.03…
2015 - 2016 Budget Financial Stats per BOE 2014 Actuals 2015 Est 2016 Budget Average pricing 48.80/bbl WTI 40.00/bbl WTI Edm Par 94.09/bbl 57.10/bbl 51.45/bbl AECO (monthly index) 4.40/GJ 2.56/GJ 2.45/GJ /boe Revenue 60.38…
Current Hedges as at January 15, 2016 Term Hedge Type Volume Cdn Pricing January 1, 2016 to March 31, 2016 WTI fixed price 2,000 bbls/d Cdn 76.58/bbl April 1, 2016 to June 30, 2016 WTI fixed price 2,400 bbls/d Cdn 76.21/bbl 2016…
Achieving Production Per Share Growth, While De-Levering 12,000 25.0 Oil & liquids Completed Completed Wilson Completed Natural gas Sure 60 mmEnergy Creek equityacquisition & Debt per boe/d prodn Production per share decreased…
Key 6 Month Objectives and Look-back What we did in Objectives for What we said we would do Q3 2015 / Q4 2015 Q1 2016 / Q2 2016 Cautiously proceed with drilling program to Production approx. 9,870 boe/d (up 5.5%), Spend approx.…
Why Buy/Continue to Own Tamarack Resilient assets in low commodity price environment Preserves a solid balance sheet As commodity prices improve, TVE high quality inventory will be economic earlier than most inventory TVE has a plan…
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