March 29, 2016 Investor Presentation www.andersonenergy.ca
3 Anderson Energy - Background Focused Development on Cardium Horizontal Wells in Central Alberta and an Emerging Development Project in the Duvernay Carbonates. Aim is profitable growth with production weighting exceeding 50% oil,…
4 Anderson Energy - Background Results for 12 Months Ended December 31, 2015 Funds from Operations: 2.6 million (9.7 million before convertible debenture interest payments). Production: 2,290 BOED (45% oil, condensate & NGL); 165…
5 Anderson Energy - Background Results for 12 Months Ended December 31, 2015 6.5 MM BOE P&P reserves (52% oil,condensate & NGL) with a P&P after tax NPV 10 of 65 MM. P&P future development capital of 45.7 MM (undiscounted) to…
6 Anderson Energy - Background Results for 12 Months Ended December 31, 2015 Current bank lines are 31 MM and are undrawn. Next bank line renewal with Alberta Treasury Branches is May 2016. Investor Presentation March 2016
7 Anderson Energy - Background Cost Saving Measures 2015 gross G&A (cash) expenses were reduced to 6.6 million per year, down from 8.3 million in 2014. 2016 gross G&A (cash) expenses are estimated to be reduced to 5.6 million.…
8 Anderson Energy Debenture Restructuring Proposal The February 26, 2016 Exchange Transaction Proposal: If the proposal is approved, the Company will exchange the entire principal amount of the Series B convertible debentures, and…
9 2015 Operating Cost Reduction 2015 Operating Cost Reduction Initiatives: Most of the initiatives were implemented in March/April and benefited H2 2015 14-18% reduction in contract operating rates Buyout of rental equipment (P…
10 2016 Operating Cost Reduction 2016 Operating Cost Reduction Initiatives: Further reduction in manpower Continued rationalization of shallow gas assets Planned 27% reduction in non-producing well count through abandonment program…
11 Anderson Energy - Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium horizontal drilling Guidance 2016 1,500-1,600 BOED production (42% oil, ALBERTA condensate & NGL) for 2016,…
12 Anderson Energy - Operations Overview Drilling Program Resumption 50 WTI US price signal ALBERTA More clarity required on Alberta royalty review Complete May bank line review Debenture restructuring approved Program could…
13 Anderson Energy - Operations Overview Cardium horizontal drilling focused on the halo or T50 periphery of major Cardium fields The best wells are positioned in good quality rock T45 Away from potential pressure depletion…
14 Anderson Energy - Operations Overview Completion Technology Update: Using slick water as a carrier fluid. It is like soapy water with no gellant and hence the term slickwater. Both broad industry and Anderson specific data…
15 Anderson Energy - Operations Overview Investor Presentation March 2016
16 Anderson Energy - Operations Overview Light Oil Horizontal Potential Drilling Opportunities March 2016 Area Gross Net (1) Willesden Green Cardium 74 55.0 West Pembina/Buck Lake Cardium 18 7.5 Willesden Green Glauconite 6…
17 Anderson Energy - Operations Overview New Oil Project Development: The Company has assembled over 12 sections of 100% working interest land at medium depth in the Duvernay Carbonates. This project would be developed with…
18 Anderson Energy Net Asset Value Net Asset Value (December 31, 2015, pro forma debenture conversion) (M): 10% 12% 15% After Tax P&P reserves (1) 64,984 58,598 50,852 Undeveloped land (2) 1,800 1,800 1,800 Adjusted net working…
20 Anderson Energy Summary (continued) The Company has developed a new position in an emerging medium depth horizontal light oil development project in the Duvernay Carbonates in central Alberta. The Company has over 12 sections of…
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