Gear entered into an arrangement agreement for a plan of arrangement with Striker Exploration Corp. on June 7, 2016 Terms 2.325 Gear shares issued for each Striker share 76.7 million Gear shares issued Assumption of net debt of 10…
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…
Upon close of the Striker arrangement, Gears focus of operations will expand to the West to include the diversification of new light oil opportunities in Alberta Gear Lands Other GXE Striker Lands Elk Point 350 boe/d 250 boe/d…
Gear resumed drilling operations on June 24th, 2016 after an eight month period on the sidelines waiting on price recovery Program Highlights Wildmere Three quad lateral unlined horizontals to follow up on the successful quad…
Gear capital investment through 2016 is forecast to improve upon the exceptional results from 2015 Drilling for 2016 commenced on June 24th, 2016 in the Wildmere Cummings June production estimate of 6,000 boe/d pro-forma Striker (not…
Production will resume growth starting in Q3 2016 with the Gear 10 well heavy oil drilling program (+2 Striker wells) Operating costs and royalty costs are predicted to improve into 2016 with per unit values forecast at record lows…
Costs per unit have continued to improve despite production declining since 2014 2016 Guidance 15.50 - 16.50/boe (14.00 - 16.00/boe w/ Striker) Record low costs Q1 2016 15.34/boe 2016 Guidance 2.95/boe (2.80/boe w/…
Corporate cash flow is supported by three core areas, low cost assets representing 1/3 of corporate production Further growth in these low cost areas will support strong corporate netbacks Field Netbacks Q2 Gear Estimate Q1…
Total development capital of 14.9 million through 2015. Drilled 12 wells with 100% success and performed 20 recompletions All-in capital efficiency of 13,500/bbl/d (14.9 million/1,100 boe/d for the first 10 peak months) 2015 Capital…
8% of Gear Q1 production Quad lateral unlined well successfully drilled in 2015 2.5% Royalty 8.65/boe Op costs with first 12 months averaging 250% of the oil from the adjacent 5 single lateral wells Crown land position of…
9% of Gear Q1 production 3.2% Royalty Four McLaren B (lower) wells and one 6.70/boe Op costs McLaren A (upper) well with strong McLaren Sands production, averaging above risked type curve. GXE Drills 2016 Budget Low Risk, Low…
McLaren A McLaren A & B McLaren B 6.5 Sections undeveloped land Two overlapped sandstones 3m per zone Plan to drill 6 wells in 2016 2016 Budget Inventory 14
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…
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 (prior) 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…
Independent Directors Experience (prior or current) Don T. Gray Prior Founder, President & CEO, Peyto Energy Trust Chairman Greg Bay * Current President, Cypress Capital Management Raymond Cej Prior President, Teine Energy Ltd., Shell…
Analysts Altacorp Thomas Matthews Cormark Garett Ursu Desjardins Jamie Kubik FirstEnergy Bob Fitzmartyn GMP Aaron Swanson Haywood Darrell Bishop Peters and Co Dale Lewko 20
Price forecast for well evaluations was 50 Flat US WTI, with respective 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 Cummings Morgan Capital 670k…
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