Building A Premier Oil Company Corporate Presentation April 2016
WE ARE STRATEGIC Shareholder Information Venture exchange (V.SOG) Market Cap 70 MM 542 MM basic shares (64% insider ownership) 25 MM cash No bank debt Closed 95 MM convertible debentures Feb 2016 Corporate Snapshot 1,900 boe/d…
SIGNIFICANT NEAR TERM GROWTH Our Asset: Billion barrels of light oil in place Proven & producing Pipeline connected to oil & gas markets Our Strategy: Control our destiny 100% land & infrastructure Cost reductions & well…
THE OPPORTUNITY 300 WELLS TO 30,000 BOE/D Maintain 30,000 boe/d for over 10 years 35 wells/year 30,000 Production (boe/d) 20,000 10,000 - Estimated Production Current Year 1 Year 2 Year 4 Year 7+ BOE/D 1,750 3,500…
HISTORY OF THE MARLOWE MUSKEG PLAY HOW DID STRATEGIC FIND A BILLION BARRELS OF LIGHT OIL IN ALBERTA Grande Prairie Vancouver Calgary Imperial discovered hydrocarbons in the Astrobleme in 1960s Mainly developed for gas on…
HIGH QUALITY CARBONATE RESERVOIR 14-18-122-23W5 03-35-124-22W5 1370m TVD / -705mSS Net Pay: 6.2m, Por: 9.3% 1300mTVD/-670mSS 6 MMbbl/section OOIP Net Pay: 10m, Por: 12% 12.5MMbbl/section OOIP 10-29-122-21W5 11-35-121-23W5 20%…
OVER ONE BILLION BARRELS OF ORIGINAL OIL IN PLACE Mapped using existing wells & seismic Well Remains Free-Flowing After 1-Year of Production 23 Successful Muskeg wells Independent Engineering Estimate Well Remains Free-Flowing…
GETTING TO A BILLION BARRELS 10 MM barrels of oil in place per section 182 Sections in the Core of the Muskeg Fairway 1 MM barrels recoverable oil per section (10% recovery Factor) OIL IN PLACE CALCULATION IN CORED WELLS Cored…
PREDICTABLE WELL PERFORMANCE 190 MBOE PRODUCED FROM 6-24 MUSKEG WELL IN 1.5 YEARS TYPE CURVE OIL- BBL/D TYPE CURVE OIL & GAS BOE/D 500 1200 14-35-121-23W5 Final 24 hr Test Rate 14-35-121-23W5 Final 24 hr Test Rate 450 1060 BOE/d at…
REDUCING CAPITAL COST PER WELL Drill & Complete Cost Per Stage Reduced by 70% Drill Cost Per Stage Complete Cost Per Stage 700,000 5-Wells 2013 Drill & Complete Cost Per Stage () 600,000 500,000 2016 Program 6 Wells…
REDUCING COSTS PER BOE WITH GROWTH Operating & Transportation costs at Marlowe have dropped to 14.0 mm/year 22 Operating Cost, MM 20 2013 2014 2015 2016E 18 Total OPEX ( MM) 19.8 21.0 14.8 14.0 16 14 Total Production (BOED)…
PLAY IS PROFITABLE AT 40 WTI 120% Capex (MM) 2.75 100% IP30 (boe/d) 380 10% reduction in well cost Oil Weighting (%) 60 80% Rate of Return (%) Reserves* (Mboe) 415 60% F&D (/boe) 6.60 NPV 10 ROR Payout 40% PI 10 (MM) (%)…
INFRASTRUCTURE SUPPORTS GROWTH TO 7,000 BOE/D 100% owned and operated 2 facilities with oil & gas processing and disposal capabilities All wells tied in to facilities Pipeline connected to oil & gas markets Rail & trucking…
PACE OF MUSKEG DEVELOPMENT Phase 1: Grow to 3,500 boe/d 28 million capital 9 development wells Phase 2: Grow to 5,000 boe/d 58 million capital 17 development wells, 2 step out wells Phase 3: Grow to 7,000 boe/d 72 million…
GROW PRODUCTION TO 30,000 BOE/D DOUBLE PRODUCTION IN THE NEXT PHASE Over a billion barrels of light oil in place (Recovery Factor 10-12%) 100% working interest in over 400 sections of land 800 drilling locations delineated in the…
APPENDIX 17
DEDICATED TEAM 18
TEAM - MANAGEMENT Dedicated Team with significant experience Finding & Developing Plays MANAGEMENT POSITION EXPERIENCE Reservoir Engineer; 22 years experience in the oil patch Gurpreet Sawhney President & CEO President of…
TEAM BOARD OF DIRECTORS Strong insider ownership provides financial stability and aligns interest with stakeholders BOARD MEMBER % SHARES1 Thomas Claugus Chairman & CEO, GMT Capital Corp. ( 5 billion assets ) 57.8% (Chairman)…
MARLOWE ASSET Marlowe Asset Zama City Mackenzie Hwy 35 140 km (85 miles) north of the Town of High Level Accessed with 2-Lane Paved Highway High Level Rainbow Lake 21
FINANCING IN PLACE Bank Debt: none Cash Position: 25 million Long-term debt: Convertible debenture offering completed February 2016 95 MM 8% annual interest, payable semi-annually Term 5 years Convertible 0.09 per share Interest…
MARLOWE STACKED OIL DEVELOPMENT Zone Prospective Net Porosity Permeability Swc OOIP/Sec Sections Pay (%) (mD) (%) (MMbbl) (m) * Slave Pt. 100 30 7.0% 5 30 21 Sulphur Pt. 100 8 8.0% 8 25 7 Muskeg 100 10 10.0% 15 25 10 Keg River…
MARLOWE MUSKEG PLAY Steen Astrobleme 15 miles Unconventional Reservoir at 1300-1500 meter depth Ambiguous log response, historical missed pay Produces poorly in vertical well completions Structurally sealed updip by the meteor…
2016 DRILLING PROGRAM Drilling Wells Further & Faster 2016 Improvements Optimized Bit / Motor Selection Geology - Increased Pay Thickness Geosteering Success Extended Reach Test: TD = 3439 m 25
MARLOWE RESERVES & RESOURCE ASSESSMENT All Reserves and Resources Evaluated by Third Party McDaniel & Associates Consultants Ltd. Reserves Category Oil Gas BOE YE-2015 (MBbl) (MMCF) (MBOE) P+P Dev. Prod. 3,443 7,625 4,714 P+P…
PRICING ASSUMPTIONS Oil Prices 40 WTI Exchange Rate (US/CDN) 1.33 WTI (CDN/BBL) 53.20 Differential to Edmonton (CDN/BBL) (5.00) Differential to Marlowe, Quality Adjustment (CDN/BBL) (8.00) Field Price (CDN/BBL) 40.20 Gas…
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