7G Key Value Drivers Corporate liquids yields of approximately 230 bbls/MMcf 1 High Quality Asset Priority development block type curve (Nest 2 type curve) with half-cycle supply cost (the price required for an incremental well…
The Seven Generations Strategy Combine resource selection with innovation, technology and efficiency to remain among North Supply Cost Americas lowest supply cost unconventional gas developers Profitable growth to achieve free…
Stakeholder Differentiation We see ourselves as being in the service business, serving the needs of our stakeholders. We seek satisfaction for all stakeholders. Differentiation is imperative. We support an open and competitive business…
Seven Generations Overview & 2016 Guidance Capitalization 2016E Guidance Initial Public Offering Closed November 5, 2014 Production (% Liquids) (Mboe/d) 100-110 (55-60%) Ticker symbol TSX: VII Rig Count () 5-6 Basic Market…
7G: Strong Track Record of Consistent Performance & Growth Production (boe/d) Condensate Production (bbls/d) Natural Gas Production (1) (MMcf/d) 120,000 25,000 160 149 100,000 - 110,000 21,204 140 100,000 20,000 120 80,000 15,000…
Montney: Multiple Market Access Options Montney Location Summary Pipeline connected Multiple transcontinental natural gas pipelines Regional liquids gathering system Regional sour gas gathering and processing Close proximity…
The Boot Diagram: Ranking Project Competitiveness NYMEX (USD/MMbtu) Breakeven* Price by Play 2015 NYMEX Henry Hub Price Range * Assumes a 15% IRR, US40/bbl WTI, WTI less US5/bbl for Edmonton Par, US0.50/MMbtu AECO basis and FX…
2015: Continued Operational Excellence 2016 Forecast Production Growth of 80% 30% Reduction in Annual Capital in 2016 Average 2015 = 60,400 BOE/d (59% Liquids) Efficiency gains in drilling have increased well count per rig…
Maintenance Capital vs. Growth 2015 Corporate Declines of 30 35% Running Room to Grow Average December 2015 production of 87,000 BOE/d 900 drilling locations (2) within the Nest 30,000 boe/d of declines expected to be replaced 65…
Resource to Reserve to Production Conversions Resource to Reserve Conversion (% of Total Volumes) (1) March 31, 2013 December 31, 2014 December 31, 2015 December 31, 2015 YoY Category MMBOE % Liquids NPV10 (MM) MMBOE NPV10 (MM)…
Infrastructure to Support Improved Well Results Within the Nest Condensate Yield Number of Wells Gas (MMcf/d) Condensate (bbls/d) Total (boe/d) (bbls/MMcf) Jan 16 Nov 14 Jan 16 Nov 14 Jan 16 Nov 14 Jan 16 Nov 14 Jan 16 Nov 14…
Upgraded Nest 2 Type Curves Flatter decline profiles due to intentional choking during flowback (slowback) Higher liquids yield over first year in upgraded curves (118 vs. 92 bbls/MMcf condensate-gas ratio) Lateral length increased to…
Individual Well Economics: Upgraded Nest 2 Type Curve Flat pricing: 50 US/bbl WTI, 2.80 US/MMBTU NYMEX, 0.76 USD/CAD, all pre-tax Upgraded base Production sensitivities using type curve new base type curve 2014 Nest 2 2015 Nest 2 +…
Individual Well Economics: IRR Sensitivities (half-cycle, pre-tax) Current 2016 -2018 Hedge Position Assumptions: - NGLs as % of WTI: C3 35%, C4 50%, Alberta C5+ 93%. Chicago gas discount 0.01 to NYMEX HH. Unit transportation…
Drilling & Completions Cost Performance Average Drilling & Completion Costs Drilling Costs & Lateral Length Completion Costs per Tonne Drilling Costs per Lateral Metre Note: Only includes Montney Nest wells. Improving unit…
Drilling Improvements: 2011 2015 Avg. Well Cost & Time vs. Depth 40% increase in lateral length with approximately 35% lower drill cost Reduced drilling time from 67 days to 31 days for a 13% longer measured depth Resulting…
Production Growth Plans: Transportation and Processing Arrangements Transporting rich gas production on the Alliance pipeline system with Aux Sable processing arrangement Additional firm capacity with McDaniel estimated 2016…
Efficiently Delivering Resource to Markets 7G Lator Shallow Aux Sable 7G Super Pad Cut Processing Chicago Processing Chicago gas sales (B) (A) Dehydrated gas via Rich gas via Chicago NGL sales 7Gs gathering system Alliance…
APPENDIX
Seven Generations - Level 1 Corporate Policy Statement We believe that Companies have only the rights given to them by society. While people have a natural entitlement to basic rights, corporations are an instrument created by society…
Selected Financial and Operational Information OPERATING Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 YE 2015 YE 2014 Average daily production Condensate & oil (bbls/d) 25,572 22,606 20,702 15,810 14,747 12,580…
Hedge Position as of March 31st, 2016 Hedge Position March 31, 2016 2016 2017 2018 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Liquids Hedging WTI…
Well Results within the Nest Nest 2 Nest 1 Gas C5+ Total C5 +Yield Wells Gas C5+ Total C5 +Yield Wells Mcf/d bbls/d boe/d bbl/MMcf () Mcf/d bbls/d boe/d bbl/MMcf () IP30 4,621 856 1,626 185 84 2,315 651 1,036 281 15 IP90 4,671…
Inventory of Nest 1 and Nest 2 Montney Wells In Progress Well Wells down due to Nest 1 Drilling Phase Completion Phase Tie-in Phase Producing Wells Inventory Concurrent Ops July 1, 2015 0 0 0 0 15 0 October 1, 2015 0 1 0 1 15…
Nest 2 Type Curve Raw Gas Production vs. Producing Wells Key assumptions: - Non-producing days have been removed. All data is normalized to 28 stages. Normalization assumes directly proportional relationship between completed…
Nest 2 Type Curve Wellhead Condensate vs. Producing Wells Key assumptions: - Non-producing days have been removed. All data is normalized to 28 stages. Normalization assumes directly proportional relationship between completed…
Sweet Spot of the Montney Over Pressured High Productivity Brittle Rock High Recovery Factor Thickness Large Resources in Place Lower Temperature High Liquids Content Sources: Canadian Discovery & GDGC (2008, 2011), & Steven…
Upside Potential from Upper Montney Extension and Secondary Targets Badheart 7G ACREAGE HELD BY ZONE (March 31, 2016) Muskiki Gross Gross Net Average Cardium Zone Net Acres Acres Sections Sections WI Smoky Kaskapau Cardium…
Next Steps in Well Optimization: High Intensity Completions Tighter frac stage spacing Larger proppant tonnages 2015 average stage spacing of 100 107 metres (28 stages per 2800m 3000m well) Historical frac intensity of 120 tonnes per…
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