Our 2016 Budget Targets 39% Production Growth, 0.75/mcfe Total Cash Costs, 1.6x Total Debt to Cash Flow and Generates Surplus Cash AECO Cdn 2.50/mcf Investor Presentation TSX / NYSE: AAV February 2016
ADVANTAGE AT A GLANCE TSX, NYSE: AAV TSX 52-week trading range 4.94-8.36 Shares Outstanding (basic) 170.7 million 2016 Annual Production Target 39% Annual Target Production Growth 200 mmcfe/d (33,300 boe/d) Market Capitalization…
POSITIONED FOR PROFITABLE & SELF-FUNDED GROWTH World Class Glacier Montney Asset 1,000 future drill Strong Balance Sheet locations 2016 Budget (2) Industry Leading Low Cost 40 million surplus cash flow Producer 1.6x YE Total…
FOCUSED ON GLACIER DEVELOPMENT ADDITIONAL MONTNEY LANDS PROVIDES FUTURE UPSIDE Current development at Glacier including dry and liquids rich gas drilling with a Progress (Future) future drilling inventory 1,000 locations 100% owned…
CONTINUOUS IMPROVEMENT HAS CREATED INDUSTRY LEADING EFFICIENCIES 5
AND STRONG INVESTMENT RETURNS INVESTMENT ANALYSIS OF 2013 DRILLING PROGRAM (25 Wells, No Hedging Gains Included) Capital Investment DC & E 25 Wells in 2013(1) (150) million Allocation of Plant, GGS, P/L cost to 25 wells (2) (13)…
DRIVING STRONG GROWTH AND FINANCIAL FLEXIBILITY IN OUR 2016 BUDGET KEY ASSUMPTIONS DELIVERABLES 120 Million Capital 160 Million Cash Flow (1) (40 million surplus) 130 mmcf/d Completed Standing Well Inventory 39% Production Growth 13…
WITH SURPLUS CASH FLOW TARGETED AT BUDGET COMMODITY PRICES 160 million(1) 140 million(1) Surplus Cash 120 million 40 million 20 million 53 mm Drill 13 wells for 2017 35 and beyond Pipeline looping 18 Complete 13 wells 41 67…
ADVANTAGE DEVELOPMENT PLAN 2015 THROUGH 2017(1) Annual Average Production 22% Capital Spending CAGR (2) (mmcfe/d) 235 ( millions) 200 200 485 million Total (original 165 estimate 700 million) 142 120 2015 Actual + Estimate…
MAINTENANCE CAPITAL AND CASH FLOW SENSITIVITY Staying Flat is achievable at AECO 2.00/Mcf Based on average well type curve (1) 115 million 195 million 150 million Based on top 115 million quartile 90 million type well (2)…
DEVELOPMENT PLAN SENSITIVITY & HEDGING POSITIONS Current hedging program reduces downside risk and maintains upside torque Production Period Hedged (net) AECO 2016 52% 3.62/mcf 2017 22% 3.31/mcf 2018 Q1 26% 3.17/mcf Notes:…
ADVANTAGE VERSUS CANADIAN GAS & OIL PRODUCERS Targeting top tier debt-adjusted production per share growth while retaining a strong balance sheet and spending less than cash flow. Source: RBC Capital Markets, Equity…
INDUSTRY LEADING LOW COST STRUCTURE PROVIDES STRONG NETBACKS & RECYCLE RATIO EVEN WITHOUT HEDGING Illustrative AECO Cdn Glacier Operating Netback 2.50/mcf Revenue (Realized Price) 2.40 (1) Royalties (0.12) AAV - Industry leading…
ADVANTAGE COMPARED TO NORTH AMERICAN GAS WEIGHTED PRODUCERS 16E/15E Production Growth (%) 2016E Total Cash Costs (Cdn /boe) 12.78 12.43 38% 17% 4.48 13% AAV Canadian E&P US E&P AAV Canadian E&P US E&P (Gas Weighted) (Gas…
OPERATIONAL EXCELLENCE 15
LARGE INVENTORY OF STANDING WELLS & PRODUCTION CAPABILITY Only 8 Wells Required to 20 Wells Completed & Standing Sustain Production from 130 to (current) 180 mmcfe/d at year end 2015 130+ MMCF/D IP30 from the 20 wells 17 Wells…
PENTASTACK DEVELOPMENT WITH DECADES OF DRILLING INVENTORY AT GLACIER Capable of maintaining 245 mmcfe/d (40,830 boe/d) for 50 years (1) 1,000 Future Drill Locations at Glacier support future growth (1) 292 undeveloped locations booked…
ROBUST UPPER & LOWER MONTNEY DRY GAS WELL ECONOMICS, ROR% CURRENT COMMODITY PRICES Upper & Lower Montney Middle Montney (Dry Gas) (50 bbls/mmcf C3+, 45% C5+) 77% Advantage achieved 20% cost reduction to average 5.5 million DC &…
2013 UPPER & LOWER MONTNEY WELLS OUTPERFORM LONG TERM PRODUCTION EXPECTATIONS. 2014 WELLS JUST STARTED 8 New Wells on-stream December 2015 to sustain production at 180 mmcfe/d. Wells are normally restricted to 10 mmcf/d for frac sand…
IMPROVING LIQUIDS RICH MIDDLE MONTNEY WELL PERFORMANCE AT GLACIER 10 New MM wells could exceed type curve Production Test Rate On-production Rate New 8-35 well (2014) 12-2 well (2013) cumulative production cumulative production 1…
EXPANDED GLACIER GAS PLANT PROVIDES ADDITIONAL CAPACITY FOR FUTURE GROWTH & OPERATIONAL FLEXIBILITY Plant Process Capacity 250 mmcf/d provides 70 mmcf/d of additional plant capacity for 2016 & 2017 growth 100% ownership of the Glacier…
GROWTH BEYOND 2017 CAN BE ACCOMMODATED ON EXISTING PLANT SITE R14 R13 R12 R11 R10 R9 R8 R7W6 100% Owned Glacier Gas Plant Positioned for T78 T78 Advantage Gas Plant Production Ramp-up T77 T77 Alliance Sales Gas Line TCPL…
Clear Vision for Growth Financial Strength Proven Expertise
APPENDIX 24
FULLY FUNDED GLACIER GROWTH PLAN DETAILS: 22% ANNUAL AVERAGE PRODUCTION GROWTH FOR 2015 TO 2017 Annual Average Production (mmcfe/d) 235 200 142 142 8% 2015 Actual + Estimate 2016 Budget 2017 Estimate Annual Average…
UPPER AND LOWER MONTNEY WELLS - IMPROVING PERFORMANCE SINCE 2008 Budget Type Curve (IP30 7.2 mmcf/d & 7.2 Bcf) Data: updated to December 2015 26
(1) EXCEPTIONAL UPPER & LOWER MONTNEY WELL ECONOMICS Upper & Lower Montney Dry Gas (2) Budget Type Curve. Some recent Upper & Lower Montney wells are outperforming type curve (3) (1) Management estimates. NPV 10%…
STRONG EAST GLACIER MIDDLE MONTNEY WELL (1) ECONOMICS Middle Montney at 50 bbls/mmcf C3+ (2) Budget type curve. Some recent MM wells are exceeding type curve. (3) (1) Management estimates. NPV 10% pre-tax (2) Based on 5.9…
2014 MIDDLE MONTNEY PROGRAM FOCUSED ON HIGHER LIQUID CONTENT IN EAST GLACIER Middle Montney wells to date Glacier C5+ 57 illustrate higher liquid content(1) from west to east across Glacier deg API 10 MM wells drilled in 2014…
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Glacier - 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Interval Developed Undeveloped TOTAL Developed Undeveloped TOTAL YE 2012 YE 2013 YE 2014 YE…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Up…
2012 CORE AND COMPLETION STUDIES: INCREASED RESOURCE AND IMPROVED WELL RESULTS Core study determined original density porosity logs have to be re- calibrated IP30s on open hole Re-calibration aligned log to actual wells improved by…
ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on NYSE and TSX: AAV Advantage Oil & Gas Ltd. Suite 300, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main:…
Loading...
