4,435 boe/d 2016 Q1 Production 94% oil Conventional cold flow heavy Resource Drilling inventory dominated by low risk bypassed vertical reservoirs that produce successfully with horizontal wells Horizontal wells Predictable…
With oil price strengthening above US40/bbl WTI, Gear plans to resume drilling from its inventory of economic low risk horizontal heavy oil wells this summer Paradise Hill: Six single lateral horizontal wells to follow up on the 5…
Capital investment through 2016 is forecast to improve upon the exceptional results from 2015 The five year historical average net debt to cash flow ratio has been 1.6 x Approximately 500 bbl/d remains shut-in since early 2015 due to…
Production declines are predicted to reverse in the second half of the year with a return to growth Operating costs and royalty costs are predicted to improve into 2016 with per unit values forecast at record lows The 10 well drilling…
Costs per boe have continued to improve despite production declining since 2014 2016 Guidance 15.50 - 16.50/boe Record low costs Q1 2016 15.34/boe 2016 Guidance 2.95/boe Q1 2016 3.67/boe 2.95/boe w/o one time costs…
Base production cash flow is supported by three core area, low cost assets representing a third of corporate production. In total, approximately 50% of production comes from lower cost horizontal wells (these numbers exclude hedging…
Management has compiled a Long Range Model to provide insight as to the future potential of the current asset base at various forecasted oil prices Oil Futures April 13, 2016 See Appendix for key assumptions used to compile…
Long Range Model predicts risked production growth potential from a greater portion of the existing inventory of opportunities than is included in the independent engineering report Model includes five year average base decline of 30%,…
Long Range Model capital and production growth is funded by cash flow with current forward strip prices Cumulative net operating income (NOI) under current strip prices is forecast to grow to almost 30MM by 2020 Forecast cash flow and…
The Long Range Model forecast competitive net debt to cash flow ratios at current oil prices Small increases in oil price yield significant improvements Potential Net Debt to Cash Flow Forecast See Appendix for key assumptions…
9% of Gear Q1 production 3.2% Royalty Four McLaren B wells all averaging above 6.70/boe Op costs risked type curve. McLaren Sands First McLaren A well (194/2-11) also GXE Drills producing above type curve 2016 Budget Low Risk,…
McLaren A McLaren A & B McLaren B 6.5 Section undeveloped land base Two overlapped sandstones, 3m per zone Plan to drill 6 wells in 2016 2016 Budget Inventory 14
8% of Gear Q1 production Quad lateral unlined well successfully drilled and on 2.5% Royalty 8.65/boe Op costs production in 2015 with first six months averaging 250% of the oil from the adjacent 5 single lateral wells Crown land…
17% of Gear Q4 production 5.6% Royalty Fourteen (12.5 net) Lloyd horizontal wells have 10.50/boe Op costs been drilled since 2014 with average results GXE 2015 Drills above risked type curve Since acquisition in 2014, Gear has…
Over 20 undeveloped sections of crown land were acquired through 2015 for approximately 1 million, Gear is targeting material future potential horizontal drilling inventory. Highlights are shown below Unbooked Potential Sections…
Common Shares 85.5 million Bank Capacity (incl. 15 million convertible debentures) 74.8 million Net Debt Q1 2016 (incl. convertible debentures) 59.6 million Production Q1 2016 4,435 boe/d Corporate Netback Q1 2016 9.60/boe Cash…
Gears 4 year history of successfully growing value per debt adjusted share was impacted by 2015 oil prices Estimated 5 year CAGR/DA share is 4% Production growth and 17% Cash flow growth Cash flow metric shown is the non-GAAP cash…
Executive Experience Ingram Gillmore VP Engineering - ARC Energy Trust, Talisman President & CEO, Director Yvan Chretien VP Land - ARC Energy Trust, CNRL VP Land Bryan Dozzi Engineering Manager - Gear Energy, Rock Energy Inc. VP…
Analysts Altacorp Thomas Matthews Cormark Garett Ursu Desjardins Jamie Kubik FirstEnergy Bob Fitzmartyn GMP Aaron Swanson Haywood Darrell Bishop Peters and Co Dale Lewko 21
Long Range Model : Key assumptions The model is presented as a representation of total company potential over the next five years under the current oil price environment. It is not intended to replace the independent reserves…
Price forecasts for well evaluations were 40, 45 and 50 Flat US WTI, with respective 0.75, 0.775 and 0.80 CAD/US foreign exchange, a heavy oil differential of 30% off of WTI and a Gear oil quality discount of CAD 4.50 Paradise Hill…
Loading...
