June 25, 2014 Announcements 1. East Edson JV 2. Gas Over Bitumen Royalty Credit Monetization 3. Reserves Update 4. Guidance Strategic priorities focus our activities 3
2014 Top five strategic priorities 1. Reduce Debt and Manage Downside Risk 2. Grow Edson Liquids-Rich Gas Production, Reserves, Cash Flow, Inventory and Value 3. Maximize Value of Mannville Heavy Oil 4. Maximize Cash Flow from…
1. Key priority Reduce debt and manage downside risk 5
East Edson JV transaction details Sale of a 50 percent royalty interest on current production (Producing Royalty) Proceeds: 50 million Gross 50 percent royalty on existing production, less deductions for transportation Initially 6.2…
Production Profile Fixed First-out Wedge Production 5.6 MMcf/d plus associated liquids until 2022 Declining at 10% per year from Jan 2023 through December 2034 85% gas / 15% NGLs (43% C5+) 7 Production Buffer Above GORR…
Transaction Rationale Significant cash flow growth Capital infusion allows for technically recognized reserves to become eligible for NI 51- 101 booking based on defined capital funding profile Transaction metrics are significantly…
Gas over Bitumen Monetization Gas over Bitumen Monetization for proceeds of 20.5 million Payment monthly equal to Crown royalty credit earned on GOB financial solution for shut-in Legend property 0.5 x [(Shut-in Deemed Production of…
Balance sheet Net Bank Debt: 18 million (May 1, 2014 pro forma for transactions ) Borrowing base on credit facility 120 million Next semi-annual redetermination October 2014 30 million of funds restricted for 2015 Perpetual East Edson…
Projected balance sheet reconciliation Q2-Q4 Q1 ( Millions) 2014 2015 2014 Pro Forma(1) Pro Forma(1) Exploration & Development 31 141 120 East Edson Producing Royalty Sale - (50) - Other Acquisitions, net of Dispositions - (19)…
Debt Reduction Transactions Pending Dec 31, D East Edson JV Net Proceeds: 120 million ec 31 Producing Royalty sale 50 million , Drilling Royalty Farm in 70 million Gas over Bitumen Monetization: 20.5 million Targeting…
2. Key Priority Grow Edson liquids-rich gas production, reserves, cash flow, inventory and value 13
Edson Wilrich liquids-rich gas To Rosevear Plant (15% WI) Sales Pipeline to Alliance Constructed in 2013 Pipeline To Edson Deep Cut Plant 10-3 Gas Plant To be constructed in 2015 1-34 Gas Plant 16-10 Compressor Expanding to…
Edson Wilrich Type Curves East Edson slightly higher type curve assigned to the SW portion of the JV area 15 where the zone is deeper and higher pressure
East Edson JV Type Curve Economics Projected Economics per South West Projected Economics per North East Drilling Location (McDaniel April 2014 Price) Drilling Location (McDaniel April 2014 Price) Capital (D,C & T) 5.1 MM Capital (D,C…
Greater Edson liquids-rich gas play performance 40% net production 12,000 14,000 growth expected in 2014 Driven by West Edson capacity 12,000 expansion in 2014 10,000 Flatproduction forecast at Edson net to Perpetual as Royalty…
Reserve Distribution 2014 Continued Reserve Growth in Diversifying Assets as well as Overall Company 18 Growth
Guidance
2014 Capital Spending Total Capital: 87 million + 85 million East Edson JV Q1 2014 Q2-Q4 2014 Total Wells Capital Wells Capital Wells Capital (1) 2 gross 10 gross 12 gross West Edson 13 MM 33 MM 46 MM (1.0 net) (5 net) (6.0…
2014 funds flow 2014 Capital Spending of 172 million Production of 20,100 boe/d (19,500 boe/d net of East Edson JV Royalty) 2014 Funds Flow (Pro Forma Pending Transactions) AECO (/GJ) 4.00 4.50 5.00 5.50 6.00 85 75 79 83 87 91…
2015 funds flow 2015 Capital Spending of 120 million Production of 24,500 boe/d (23,400 boe/d net of East Edson JV Royalty) 2015 Funds Flow (Pro Forma Pending Transactions) AECO (/GJ) 4.00 4.50 5.00 5.50 6.00 85 108 129 151 172…
Investment Thesis
Strong annual growth forecast 2014 Key diversifying plays production growth of 22% Growth focused at West Edson Disposition of royalty on developed lands in exchange for 50 million and 70 MM farm-in funding Funds flow and funds flow…
Sum of the parts NAV Per Share (1) WGS LP valued at prorata 2013 buyback acquisition value in all scenarios Trading at
PMT investment thesis Asset base repositioning for resource-style & diversification successful Mannville heavy oil delivering results with material secondary recovery growth potential Edson Wilrich liquids-rich gas inventory proven and…
FOR ADDITIONAL INFORMATION Additional Susan L. Riddell Rose Information President & CEO Cameron R. Sebastian Vice President, Finance & CFO 3200, 605 5 Avenue SW Calgary, Alberta Canada T2P 3H5 800.811.5522 TOLL FREE 403.269.4400 PHONE…
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