DISCIPLINE, SUSTAINABILITY, PROFITABILITY January 2016
Teine Strategy Light Oil Focused Control Infrastructure Invest within Funds Flow Continuous Disciplined Accumulation of Viking Resource Target 10% Annual Production Growth US50 WTI 2
Corporate Snapshot Capital Structure Mgt/Empl/Directors 13%, Founders 10%/ Shareholders (fully diluted) CPPIB 77% Term Debt 6.875% Senior Unsecured Notes (due September 2022) US350MM / C386 MM1 Reserves / Production 2P…
Proven Track Record A Platform for Growth Production Reserves1 14,000 13,250 100 12,283 12,000 Probable Proved 80 30.5 Reserves (MMboe) 10,000 29.0 Asset Accumulation 7,791 60 8,000 22.0 6,000 40 4,000 2,978 58.0 62.2…
Q3 2015 Debt & Hedging Summary Unsecured Senior Notes Senior Bank Debt Covenants US350 MM outstanding C250 MM total facility Covenant…
Teine Competitive Advantage Teine seeks to continuously increase profitability through efficiencies in cost structure, increasing well productivity, and improved reservoir recovery Strategic Economic at Low Cost Partner Saskatchewan…
Teines Viking Footprint Teine Saskatchewan Land Holdings1 Sask Viking Production2 450,000 Total: 60k bbl/d 400,000 Other Teine 22% 20% 350,000 300,000 250,000 Undeveloped Acres Developed 200,000 Penn West 10% RRX…
Teines Infrastructure Advantage Own, control and operate strategic infrastructure drives low cost operations 6 oil batteries; aggregate of 24,000 bbls/d capacity 3 gas plants; aggregate of 15 MMcf/d capacity 200,000 bbls total…
2016 Current Outlook Base Case 2014A 2015E1 2016E2 Preserving the balance sheet and WTI (US/bbl) 93.19 50 40 conserving inventory Avg. Production (boe/d) 12,283 13,250 11,700 11,900 Focusing on projects with recycle ratios Wells…
Teine 2016E Scenarios Well Count () Avg Prodn1 (boe/d) Capex (CMM) FFO2,3 (CMM) Base Upside Base Upside Base Upside Base Upside 12,500 11,500 120 123 150 11,800 95 83 100 Well Count Production Capex FFO Unit Base Upside WTI H1 2016…
Cost Drivers in a Commodity Downturn Further reducing already top decile cost structure Driver 2014A Q3 YTD 2015A Variance Opex 9.24 7.37 1.87 20% (C/boe) Transport 4.21(1) 2.25 1.96 47% (C/boe) G&A 3.32 2.11(2) 1.21 36%…
Focus On Capital Efficiency Teine Well Performance by Vintage Teine Well DCET1 Costs 80 2014A H2 2015 2016E 70 Drilling 280 250 250 Completion 420 330 300 60 3 year average 12 Month IP of 34 bbl/d Equip 160 100 100 DCE 860 680…
Teines Viking Robust Economic Inventory 4,000 repeatable, low-risk Hz Viking oil locations 250 sections of identified oil bearing lands with 210 having been de-risked and evaluated by drilling Teine Inventory Map Teine Inventory -…
Future Growth in Reserves and Net Asset Value Teine Net Drilling Inventory 5,000 Reserve class migration Booked in 2P 1 Risked 40 Acre Unbooked 4,712 4,500 Risked 20 Acre Unbooked 75% of captured recoverable oil has yet to be…
Downspace Potential the Prize Historical log analysis has yielded conservative OOIP estimates Resource Potential 250 Potential of 300 MMBOE1 of recoverable light oil (12% RF) with F&D costs of 15-20/BOE 225 MMBBL Pilot program…
The Teine Advantage Dominant land position in top-tier North American light oil play 10 year inventory of drilling locations Control of infrastructure Low cost operator Economic at WTI US35 Track record of per share growth…
Teine Viking Well Economics Type Curve IRR Sensitivities 1 Assumptions Oil Price 44.38 25.00 30.00 35.00 40.00 45.00 Jan 18 Strip Fixed Operating Cost (/month) 2,000 Variable Operating Cost (/boe) 2.95 DCET Cost (C000s) 650 675 700…
North American Crude Oil Play Comparison Payout Payout (Years) Breakeven Price Breakeven (US/bbl) Sask. Bakken Hz. 2.1 Sask. Bakken Hz. 49.33 Viking Hz. Dodsland 2.3 Viking Hz. Dodsland 49.40 Eagle Ford Oil - East 2.6 Cardium Hz.…
Overview of Reserves Teine has a large light oil focused reserve base with 19 year 2P RLI1 Sproule Dec 31, 2014 Reserve Evaluation Commodity Composition 93 MMboe 2P 62 MMboe Proved Reserves Btax Oil NGL's Gas Total NPV10% 13% 13%…
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