Black Swan Energy Scale, Growth and Value High NE BC Liquids-Rich Recent wells indicate 7-11 Bcf EUR at low cost Montney Quality Liquids yield of 35-50 bbl/MMcf Montney Breakeven: 1.20/GJ at 50 WTI (7.5 Bcf EUR) Asset Material…
Black Swan Energy Building Momentum 15,000 Corporate production Avg. Daily Production (boe/d) 12,000 December: 5,900 boe/d (84% gas) Development Drilling More than 15,000 boe/d behind pipe at 2015 YE 9,000 Production expected…
Montney 4
Dominant Position in Over-Pressured, Liquids-Rich Fairway Over-pressured Normally Pressured Highly over-pressured reservoir 13-16 kPa/m providing consistent top-tier deliverability Liquids-rich Over-Pressured Total liquids of…
Top-Tier Deliverability; Upper Montney averaging 9 Bcf1 Black Swan Montney Hz EUR1 vs Time 14 Development wells demonstrate repeatability SSL Wells 54-D Pad 22-C Pad 12 Upper 24 Upper Montney Hz wells tested on Black Swan Lower 10…
Recent Five Well Pad; Highest Black Swan Results to Date Outstanding results on recently acquired lands Black Swan recently completed five wells at the b-22-C pad on acreage acquired as part of the Carmel Bay acquisition, which…
Reducing Costs and Improving Results Decreasing Costs 9.0 Continuous program drives lower costs 8.1 MM 8.0 Gains to date from improved operational efficiencies D&C Cost/well ( MM) 7.0 6.4 MM associated with a continuous program…
Active & Efficient Capital; Flexible 2016 Program Focus on multi-well development pads a-92-C (6 well pad) b-19-E Drilled Q4/15 First development pad (c-7-H, 5 wells) 3 well pad completed in Q4/14, on production Jan 2015 C-7-H At…
Capital Efficient Production Growth Positioning for rapid growth Montney Production 2015 Montney average 4,400 boe/d 16 Volumes reduced by the McMahon gas plant Forecast turn-around and egress restrictions 14 Production greater…
Building on Success; Infrastructure Ownership Enhances Cost Structure Black Swan expects to deliver top decile Infrastructure investment supports low cost operator strategy long-term operating costs Plant commissioning underway: 45…
Aitken Area to Deliver 100,000 boe/d 500+ locations derisked in the Upper Montney Aitken area has been thoroughly derisked by drilling to date Plan achieves 100,000 boe/d in 5 years then holds flat for 10 years Planning for 100…
Securing Access to Processing, Egress and Markets Spectra T-North Sales Gas Ft. Nelson Line BC AB Uniquely positioned; processing options & diverse markets Processing Beatton River 100 MMcf/d owned & operated gas plant1 Phase 1: 45…
Strategic Focus Long-term, Scalable, Low Cost Development Current Pad development: one-rig Montney program drilling up to 20 wells/year Activity Commissioning a 100% owned gas plant Gas plant expansion to 100 MMcf/d One to…
c-7-H Fresh Water Pit & Pad-Site December 2014 Pit capable of storing up to 380,000 bbl of fresh water c-7-H pad 16
Evolution of Well Facilities Construction c-7-H Well Site Design continues to evolve January 2015 Black Swan made several changes pad configuration Improved cost structure & efficiencies Reduced infrastructure, fewer buildings on…
Appendix 18
Black Swan Management and Directors Management Team David Maddison, P.Eng. President and CEO (Talisman Energy, BP Exploration) Marc Mereau, P.Eng. COO (Talisman Energy, BP Canada) Michael Wilhelm, B.Comm., CGA CFO & VP Finance…
North Montney; Quality of Position Drives Capital Investment Industry investment accelerating Over 570 Hz Montney wells drilled since Black Swan entered the area Most active gas region in western Canada Growth through Crown sales…
Focused Position in Proven Top-Tier North American Play Black Swan Beg A-020-H/094-G-01 Upper Montney Thickness, porosity & pressure 60m Montney over 820 ft (250 m) thick Up to four Hz landing zones Consistent reservoir…
Substantial Resource to Unlock Capable of sustaining 2 Bcf/d for 10 years Jedney Gas-in-place supports long-term growth Average 250 Bcf/DSU OGIP 73 Tcf of gas-in-place 1 Over 2,800 Hz well inventory and 15 Tcfe of recoverable…
Acquisition of Carmel Bay Exploration Q2/15 Jedney Builds on Black Swans liquids-rich position 47,000 net acres 815 boe/d (Q1/15) Nig lands include well tests indicating EUR potential in excess of 9 Bcf d-27-K/94-G-8 L. Montney…
Completions Evolution of Design Concepts is Ongoing Initial Completions Design Current Completions Design Continuous Evolution of Ideas Perf and plug (cemented liners) Open hole ball drop Perf and plug (cemented liners) 1,700 meter…
Regional LNG Projects Offer Access to International Markets BC AB Access to key export projects Pacific Northwest LNG* (PETRONAS and partners): Black Swan Refrig & 2-3.6 Bcf/d Compression Facilities Potential FID 2015 Upstream…
Marketing and Risk Management Long-term contracts and capacity being established to support long-term growth Third party natural gas processing 25 MMcf/d firm: McMahon Nov. 2015 (5 yrs) Natural gas egress 40 MMcf/d firm: T-North Nov.…
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