SUSTAINABLE CONVENTIONAL RESOURCE COMPANY TSX: SGY MARCH, 2016
REASONS TO OWN SURGE 100% operated, high quality, low decline asset base High quality light/medium crude oil asset base; low decline 19% NAV of 4.88 per share using Sproule and Associates new lower pricing(1) Return capital to…
SURGE ENERGY Well positioned for growth and sustainable dividends Total Proved plus Probable Reserves of 85.8 mmboe(1) 2016 Average Production Rate 14,000 boepd (76% oil) Low Decline of 19% (RLI 16 years) Year End 2015 Net Debt:…
2015 YEAR END HIGHLIGHTS Positioned for a lower for longer crude oil price scenario; Top tier operational results Completed 465MM in accretive asset sales at an average price of 90,000/boepd Reduced OPEX by 20% and Gross G&A by 36%…
2015 YEAR END RESERVE HIGHLIGHTS Maintained reserves and achieved historically low F&D with high quality, large OOIP reservoirs All-in Proved plus Probable F&D of 6.08 per boe Proved plus Probable reserves totaling 85.8 million…
2016 CAPITAL PROGRAM Protecting NAV and balance sheet through conservative capital spending OPERATIONAL Average Production (boe/d) for 2016 14,000 (76% Oil/NGLs) Capital Spending for 2016 50 million DCET 26.9 million Waterflood…
50MM(e) CAPEX TO MAINTAIN 14,000 BOE/D IN 2016 Maintaining production with modest capital as a function of low corporate declines and excellent well results Estimated 2016 Capital Required to Maintain 14,000 boe/d IP365 Capital…
ELITE ASSETS FOCUSED IN THREE CORE AREAS Large OOIP pools in established conventional reservoirs Surge 2016 Avg. Production: Total: 14,000 boe/d (76% Oil & NGLs) (57% on AB Crown) Western Alberta Production: Total: 7,800 boe/d…
CORE AREA DETAILS 1.5 Billion bbls net OOIP with potential to recover an additional 125 Million net unbooked bbls Internally Estimated Ultimate OOIP (MMbbls) Drilling Locations Avg. CTD Oil Total Booked Independent Recovery…
TARGETING CONVENTIONAL RESERVOIRS Large OOIP, high quality reservoirs tend to get larger over time Conventional reservoirs tend to outperform over time: Year over year recovery factor reserve additions Long life, low decline…
CONVENTIONAL VS. UNCONVENTIONAL RESERVOIRS Surge targets reservoirs on the conventional end of the permeability spectrum Ultimate Oil Capital expenditures decrease, Recovery while recovery factors and ROR rates of return…
THREE CORE CONVENTIONAL RESERVOIRS Applying proven technology to conventional reservoirs helps provide top tier performance and higher recovery factors U. Shaunavon Valhalla Doig Sparky Depth 1450m Depth 2000m Depth 725m Net Pay 4…
TOP TIER CAPITAL EFFICIENCIES AND REPLACEMENT METRICS Large inventory with excellent economics using March 2016 strip pricing Areas/Formations Capital Rates of Drill/ Complete/ Mboe/well Core Area Locations Efficiency Return (1)…
QUALITY WATERFLOOD PROJECTS Waterflood - increasing reserves & flattening declines Current Properties Under Commercial Waterflood Area Formation Start Date 2015 Decline Current RF Booked RF Expected RF Silver Lloyd/ Cummings 1996 10%…
SOUTHWEST SASKATCHEWAN - SHAUNAVON 450MM barrels of net OOIP in the Upper and Lower Shaunavon combined 450 MMbbls of net OOIP in the Lower and Upper Shaunavon formations (medium gravity oil) Current combined recovery factor 1.2%…
UPPER SHAUNAVON Large contiguous undeveloped land position in the greater Upper Shaunavon trend R21W3 R19W3 Area/Pool Well Count Depth OOIP Cum Oil Peak Rate Current Rate T10 Instow Vt Hz (m) (MMbbl) (MMbbl) (bbl/d) (bbl/d)…
UPPER SHAUNAVON ACTIVITY 250MMbbl OOIP on Surge lands in the Upper Shaunavon R21W3 R20W3 R19W3 Upper Shaunavon A Sand T7 Upper Shaunavon B Sand Upper Shaunavon C Sand Lower Shaunavon T6 SGY Q3 Waterflood Pilot…
UPPER SHAUNAVON PERFORMANCE Surge horizontal results in the Upper Shaunavon outperforming area average Upper Shaunavon Monthly Production vs Area Average 400 350 300 Rate (bopd), Cum Oil (mbbl) 250 200 150…
NORTHWEST ALBERTA Large OOIP 700MMbbls in concentrated high quality light oil assets Large OOIP of 700 (600 net) MMbbls of high quality light oil (32-40 API) Current Production 7,900 boe/d (66% Oil and Valhalla NGLs) OOIP: 228…
NORTHWEST ALBERTA - VALHALLA Firm service agreements for Alliance and TCPL pipelines mitigates production restrictions Valhalla Doig 130 MMbbls of net combined OOIP on Surges Sexsmith Valhalla and Wembley Lands (40 API light oil)…
VALHALLA DOIG PERFORMANCE 2015 drilling in Valhalla yielded 3 of the top oil wells in Canada North Valhalla Doig Recent drilling results outperforming type curve and exceeding expectations Optimization of drilling and completion…
SOUTHEAST ALBERTA - SPARKY Provost / Eyehill / Wainwright areas Oil saturated Cretaceous sands Wainwright 430 MMbbls of net OOIP (23-31 API oil) Current recovery factor of 15% Current production: 3,700 boe/d Eyehill Sparky…
POSITIONED FOR LONG TERM SUSTAINABILITY Low base…
HIGH QUALITY CRUDE OIL ASSET BASE Focused, high quality, crude oil asset and opportunity base; 3 core areas are 100% operated, with working interests of 90% Large OOIP crude oil reservoirs with low recovery factors; 16 year…
RISK MANAGEMENT / HEDGING STRATEGY The Company has an orderly, on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capex program and fund dividends. Below is a list of Surges current…
2015 YEAR END RESERVES 1.1 Billion of Total Proved plus Probable Reserves Value (NPVBT10) 2015 Year End Reserves Oil& NGLs Gas Total Reserve Category NPVBT10 (MM) (1) (Mbbl) (MMcf) (Mboe) Proved Producing 24,121 36,369 30,182…
ANALYST COVERAGE Financial Institution Analyst Email Address Acumen Capital Partners Trevor Reynolds treynoldsacumencapital.com BMO Capital Markets Ray Kwan ray.kwanbmo.com Canaccord Genuity Anthony Petrucci apetruccicanaccordgenuity.com…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bankers Syndicate: Bank of Montreal ATB Financial HSBC Bank Canada Wells Fargo Goldman Sachs…
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