Corporate Presentation value in the Journey TSX: JOY May 2016
Value in Journey Security for today (PDP NPV10% covers projected YE 2016 net debt by more than 2X) Value for tomorrow (trading at 50% of PDP NAV; 15% of P+P NAV) Upside for the long term (50% increase in 2016 cash flow with a…
Corporate Overview 9,500 boe/d, 55% liquids (1) 43.6 MM basic shares (59% insiders; 50% PSP Investments) 107MM net debt with a 140MM credit facility DRAWN (90MM drawn) 22% corporate base decline (1) Average Q1 2016…
Core Areas (Along a Prolific Resource Fairway) We produce 9,500 boe/d from pools in our Resource Fairway Resource Alberta Fairway Shallow, low-risk development drilling in conventional oil pools Central Region Edmonton…
Security for Today Experienced team to steward investments (and protect balance sheet) High producing value at historically low pricing (PDP NPV 10% covers projected YE 2016 net debt by 2X) Low decline asset base (PDP RLI = 6.2…
2016 Capital Within Cash Flow Resource delineated by existing wells (No expiry issues; No new lands required) We operate and will scale capital to cash flow (40MM of capital ready projects; only 5MM committed 1H 2016) Multiple…
Producing Value to Current Debt Journeys producing net present value exceeds our current debt by a wide margin Multiple of 2015 YE Debt(1) PDP NPV 10% = 212MM 2.0 X P+PDP NPV 10% = 287MM 2.7 X Journey has a higher…
Ratio of Producing Reserves to Current Rate Journeys producing reserve life index is larger than the average of our peer group RLI(1) PDP Reserves = 20.2 MMboe 6.2 yrs P+PDP Reserves = 27.2 MMboe 8.0 yrs Journey has a…
How to make a Low Decline even LOWER 215 MM conventional 400 MM on waterflood 50 MM to JOY net barrels of be delineated and flooded OOIP by category 185 MM to be flooded 850 MM net barrels of OOIP 400 MM 450 MM convert…
2015 YE Reserves Summary Gross Company (WI) Reserves(1) Oil Gas NGL Reserve Category BOE RLI (Mbbl) (Bcf) (Mbbl) PDP 9,326 56.8 1,375 20,165 6.2 Total Proved 14,308 78.4 1,710 29,077 8.5 P+PDP 12,722 76.1 1,785 27,188 8.0 Proved &…
Net Asset Value NPV 10% Net Asset Net Asset Value per P+P Value Share 486MM 107MM 43.6 MM 173MM of FDC P+P YE net debt O/S Shares P+P adds 199MM of 379MM P+PDP 8.69/share P+P non-producing 287MM NPV 10% PDP P+PDP…
Present Value versus Discount Rate 500 400 300 Journeys future Reserves capital generates a Enterprise Value NPV (MM) 40% ROR on a P+P (MM) 200 basis 2.00 /Share Trading Range 1.00 /Share 100 Journey trades at a ROR…
Reward with Less Risk Maintain course through 2016 (212MM PDP NPV 10% covers debt by 2X) Cheaper to buy it than build it (170MM enterprise value(1) ; 17,900/boed and 6.25/ P+PDP boe) Value will grow over time with recovery…
Business Plan 2013 2014 2015 Operating Highlights 2016 Guidance Actual Actual Estimate Production Average (boe/d) 5,255 10,346 10,309 8,500 - 8,900 Oil and NGLs (%) 54% 53% 54% 54% Corporate Decline Rate (%) 26% 20% 22% 22%…
Hedging and Sensitivities Hedging Oil Contracts Volume Bbls/d Pricing point Strike price/Bbl Term Swap 1,000 WTI NYMEX C 77.00 Jan 1, 2016 to June 30, 2016 Swap 2,500 WTI NYMEX C 62.55 July 1, 2016 to Dec 31, 2016 Swap 1,000 WTI…
Development Drilling Inventory Journey has identified 291 (net) horizontal oil drilling opportunities Horizontal Oil Well Drilling Locations(2) % Booked(1) in Total(3) Reserve Report Region Gross Net South 186 176 25% Central…
Remaining Resource Becomes Future Target 2.5% booked inventory 83% of oil left 17% ultimate behind recovery 2.5% unbooked Ultimate inventory Recovery 12% recovery to date Oil left behind becomes Target Resource Journey…
Future Growth is Driven by Economic Plays Our future is unbooked (3.55/P+P BOE FDC is lower than our peer group) (Only 25% of our Hz oil inventory is booked in the reserve report) Our plays are valuable (Add 199MM in P+P NPV…
Improving Recovery in our Legacy Oil Pools Key capital projects for 2016 Skiff waterflood expansion (completed) Herronton waterflood initiation (completed) Brooks Sunburst development program (ongoing) Countess CBM (pilot being…
Skiff Sawtooth Drilling & Waterflood Development 0.0 m 0.0 m Section 8 in center of pool acquired Q4 2015, allowing for 0.9 m 3.0 m 2.7 m 2.4 m waterflood expansion to the south ( 5 million barrel of OOIP) 1.2 m…
Herronton Elkton HZ Waterflood Initiated Acquired in February 2013; then producing 300 boe/d; 85% gas First well drilled in September 2013; drilled 11 wells to date Current production 1,100 boe/d; 46% liquids 17 land…
Brooks Sunburst Farm In Drilling Farm in/minor purchase on 12 Sections (35 boe/d) prospective for Sunburst oil Offsetting wells 12-36 and 15-28 Hz - low decline oil wells Drilled 2 wells on the farm in block in Q4 2015, including…
Matziwin Glauconite - Waterflood Development 14-20 Injection Pattern - 1 Vertical Injector, 4 HZ Producers Oil CD Rate bbl/d GOR scf/bbl INJ CD Rate bbl/d WCT % 10,000 1,000 100 A A' 10 1 1 1 Aug-15 Dec-15…
Finding, Development & Acquisition Costs For Period July 1, 2013 to December 31, 2015 2013 2014 2015 (3 Yr) Capital Expenditures (MM)(1) 71.6 260.4 48.1 380.1 Total Proved Reserves Additions (MMboe) 3.3 19.8 2.7 25.8 /boe…
Designed to Out Perform Security Defensive strategy positions the Company for recovery Value Trades at a discount to produce out value at historically low oil prices Upside Legacy pools will continue to grow in value with time and…
Appendix- Content Drilling inventory Central Region South Region Strong governance Experienced management 33
Appendix - Central Region R15 R13 R11 R9 R7 R5 R3 R1W5 R25 R23 R20W4 T62 T62 T61 T61 Manola T60 T60 Windfall T59 T59 T58 T58 T57 Cherhill T57 Currently evaluating T56 T56 Hz wells at Crystal T55 T55 T54 EDMONTON T54 and Gilby, in…
Appendix - South Region R3 R1W5 R27 R25 R23 R21 R19 R17 R15 R13 R11W4 T29 T29 Skiff T28 T28 T27 T27 T26 T26 100% of our South T25 Matziwin T25 inventory is concept T24 CALGARY T24 tested, with at least 1 Hz T23 T23 well drilled…
Appendix - Strong Governance Stephen Mulherin Chairman of the Board, Governance / Compensation Committee Chairman Partner, Polar Capital Company; Chairman of Veresen Inc., Director of Delphi Energy Corp. and Trimac Transportation…
Appendix - Experienced Management Team Alex G. Verge, P.Eng., M.Eng. President and Chief Executive Officer, and Director 34 years of experience: Three years as Director of Journey (three as CEO), President and CEO of NuVista Energy,…
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