A Growth-Oriented Oil and Gas Company in the Alberta and BC Foothills March 2016
Strategy High growth, low decline , gas-weighted, oil upside, in conventional bypassed reservoirs Focus Alberta and BC Foothills Symbol TSX-V: IKM Basic / F.D. Shares Outstanding 80.2 mm / 84.3 mm Market Capitalization: diluted/undiluted…
Defensive Strategy in Persistent Low Commodity Price Environment Core asset with 10-15% annual decline. Sound balance sheet (65 MM credit facility, 50% drawn). Recompletion operations with demonstrably quick payout underpins…
Low decline, stacked reservoirs (Wilrich, Falher, Cadomin, Cadotte, Dunvegan, Cardium), containing oil and gas. Identified multiyear drilling inventory for gas and potentially large (bypassed) oil pools. Team was involved previously in…
In the southern part of asset base alone, there is at least 100 MMcf/d ownership gas processing and transporting capability that could bring OPEX to the 4.25-4.50/BOE range, thus becoming one of the lowest cost producers in the basin.…
Exceptionally low corporate decline drives best-in-class growth capital efficiencies. Late-life production and strong conventional reserve bookings. New wells add to strong PDP bookings. Corporate Base Decline 45 40 35 30 IKM…
EV/Q2 - 2015 Production 160,000,000 120,000,000 IKM /BOE/d 80,000,000 40,000,000 - Price/2P NAV 250% 200% 150% IKM 100% 50% 0% Data from National Bank, TD, Scotia, Clarus, First Energy, CIBC 7
(12.00) G&A (Q1 & Q2, 2015) (10.00) (8.00) IKM /BOE (6.00) (4.00) (2.00) - 120.00 2015 PDP FDA - /boe 100.00 PDP FDA - /boe /BOE (PDP, 2P) 80.00 60.00 IKM 40.00 20.00 - COMPANY Data from National…
OPEX now 7 - 8/BOE. 250-350mm replacement value of facilities: significantly underutilized. No value recognized by the market for midstream assets. 14.00 12.00 (2) (1) 10.00 8.00 /BOE OPEX/BOE 6.00 AECO (/Mcf)…
National Bank Top Alberta Wells for Jan 2016 1800 1600 IKM 13-26-58-7W6 1400 Current Rate (boe/d) 1200 1000 800 600 400 200 0 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Cumulative BOE to date…
Recently completed one of the most prolific unstimulated wells in western Canada in recent years. Recompletion and tie in Capital of 1,200 k. Tested at 20 MMcf/d (3,435 boed/d) and potential to flow at more than 30 MMcf/d (5,167…
Recompletions of existing well bores. These wells targeted deeper structural features and shallower targets not necessarily in ideal structural positions. Despite these constraints, early recompletion results yielded greater than…
Opportunities Identified to Date 38 development locations (30 Mboe/d potential). 12-17 recompletions (5 Mboe/d potential). 14 Locations - North (2 Cadotte, 9 Falher, 3 Nik) 17 Locations - North & Central (8 Cardium, 4 Falher,…
Operations to Date 2016 Operations Nearly all reservoir intervals in structural 1 to 5 recompletions will be scheduled before culminations are gas or oil charged. YE2016. Vast untapped resource plays (e.g. Montney). 2016 CAPEX program…
Why own IKM stock 1. Unique business Experienced technical team with highly specialized engineering and geoscience skills in an area with little competition. Underexploited part of the basin: prolific conventional reservoirs proven to…
Management Board of Directors Analyst Coverage Tim de Freitas Robert Dales (Chairman) TD Securities Juan Jarrah President & CEO Dave Anderson Desjardins Jamie Kubik Dorothy Else Executive VP Tim de Freitas Clarus Securities Rob Pare…
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NPV 10% Liquids Gas Reserves Category Oil (Mbbl) MBOE (M) (Mbbl) (MMcf) Developed Producing 116,426 1.0 432.0 83,962 14,427 Developed Non-Producing 10,110 - 6.6 8,043 1,347 Undeveloped 19,554 - 7.2 25,493 4,256 Total Proved…
Deep basin reservoirs heavily exploited, and exist in foothills, but have extensive natural fractures. Falher, Cadomin (9 Bcf) Foothills Deep Basin 7 Bcf (Dunv) 3-30 Bcf Triassic Foothills Deep Basin 20
Underexploited Conventional and Unconventional Resource Base 150 years of collective technical and operational experience underpins strong play understanding. Multiple Bypass Pay Opportunities Extensive 2D and 3D seismic coverage and…
An example of a large resource captured through horizontal drilling in shallow bypass reservoirs IP: 24-30 bbl/d Discovery vertical well (1997), 8-31-42-15w5 IP 24-30 bbls/d Produced 30 mbbls Source: Geoscout Source:…
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