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August 2016 Corporate Presentation – Tourmaline Oil Corp.

Tourmaline Oil Corp. · Aug 3, 2016 · 49 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 1
    Corporate Presentation August 2016
  2. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 2
    2 Current Status Aug 2016 Production Overview 2016 average production forecast of 190,000-195,000 boepd (approx. 25% annual growth over 2015 average of 154,400 boepd) 2016 exit production estimate of 210,000 215,000 boepd Exit…
  3. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 3
    3 Historical EP Performance Mar 2016 Production Growth Per Share* Reserves Growth Per Share* 300 5 Production per Thousand Shares Reserves per Share (BOEs) 250 4 200 3 (BOEs) 150 2 100 50 1 0 0 2009 2010 2011…
  4. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 4
    Largest Canadian Gas Producers; 4 2014 & 2015 Dec 2015 Canadian WCSB Gas Production 2014A & 2015E** 1,700 1,600 2014A Production 1,500 2015E Production 1,400 2016E Production 1,300 1,200 Production (MMCF/D) 1,100 1,000…
  5. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 5
    5 Deep Basin Overview Apr 2016 Tourmaline has assembled the largest land position (1.69 million acres), delineated the largest drilling inventory (8,833 locations Schedule A) and has become the largest producer (current…
  6. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 6
    6 Alberta Deep Basin July 2016 R. 9 R. 8 R. 7 R. 6 R. 5 Tourmaline R. 4 R. 3 R. 2has reached R.1W6M R26,W5M production levels of 135,000 boepd from the Deep Basin through Current Production 130,000-135,000 boepd T. 64…
  7. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 7
    Deep Basin Wilrich: Sweet Spot Outperformance 7 TOU has delineated six extensive sweet spots in the Wilrich to date, totalling 700 of the 2,475 Company interest drilling locations. These future locations are all accessible to existing…
  8. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 8
    8 Top Gas Wells Drilled in Alberta in 2015 Source: Peters & Co, geoSCOUT
  9. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 9
    9 Alberta Deep Basin Infrastructure Apr 2016 R. 9 R. 8 R. 7 R. 6 R. 5 R. 4 R. 3 R. 2 R.1W6M R26,W5M Tourmaline Tourmalines 1.69 MM Acres, the largest land position in the Musreau 8-13 TCPL Main Line T. 64 T. 64 Deep Basin, is…
  10. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 10
    NEBC Montney Gas Condensate and Peace 10 River High Charlie Lake Oil Core Areas Mar 2016 R23 R21 R19 R17 R15 R13 R11 R9 R7 R5 R3 R 1, W6M NE Alberta BC T85 Parkland Wabamun Gas Pool Devonian Parkland Non-Deposition T83 Montney…
  11. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 11
    11 Sunrise/Dawson NEBC Montney/Doig Development June 2016 Westcoast McMahon Gas Plant Current Prod. 250-270 mmcf/d 4,500-5,000 bopd (cond,ngls) Current Reserves 376.2 mmboe (Jan 1, 2016) Montney Drilling In excess of 2,100…
  12. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 12
    12 Distribution of the Top 25 Wells Drilled in Western Canada in 2015 Feb. 2016 AVG Hz Lateral Length 1 - Ansell (3 wells TOU: 1390m 2 - Kakwa (4 wells) Non-TOU: 2760m 3 - Marsh (2 wells) 4 - Wild River (1 well) 1 5 - Brazeau (1…
  13. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 13
    13 Peace River High Complex Charlie Lake Play June 2016 Earring 15-16 R. 10 R. 9 R.BOPD, IP90: 130 7 R. 5 1.7 MMSCF/D Peace River High Charlie Lake Play 1,606 Horizontal Locations* along Regional Play Fairway 6-10 Vert. Cum. 55…
  14. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 14
    2015/Q1 2016 Acquisition Activity 14 Sweet Spot Consolidation Strategy Apr 2016 R. 15W6 R. 15W6 R.R. 1W6 1W6 R. 15W5 R. 15W5 2015 Acquisition activities will focus on adding new lands and incremental locations in the highest…
  15. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 15
    15 2015 New EP Opportunities Apr 2016 Tourmaline has multiple new plays and opportunities arising from the ongoing EP program. R. 1W6 All of these new opportunities will access existing Tourmaline infrastructure R. 15W6 R. 15W5…
  16. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 16
    16 Tourmaline Mid-Stream Assets June 2016 The infrastructure skeleton in all three core operated complexes is now complete R. 15W6 R. 1W6 R. 15W5 NE Alberta BC Inga 12 Working interest gas plants, 10 of which are 100% owned and…
  17. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 17
    17 The Embedded Tourmaline Oil & Liquid Production Opportunity June 2016 R. 15W6 R. 1W6 R. 15W5 If oil prices recover to the 50/bbl level, Tourmaline can Peace River High quickly adjust the EP program to add over 15,000 bpd of 100…
  18. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 18
    18 Historical Reserves Summary Mar 2016 Reserves (GLJ) Reserves 2012 2013 2014 2015 1200 2011 2012 2013 2014 2015 (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) 1000 PDP 67.3 91.9 122.3 177.8 263.2 TP 149.0 249.2 316.5 472.3 644.1…
  19. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 19
    19 Gas Development Location Inventory and Economics Mar 2016 AB Deep Basin Outer Foothills AB Deep Basin B.C. Montney Charlie Lake Vertical Vertical Horizontal Horizontal Horizontal Total Well Costs 3.7 5.25 4.75 3.25 3.0 (Drill,…
  20. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 20
    20 Sweet Spot Location Inventory Mar 2016 AB Deep Basin B.C. Montney B.C. Montney Charlie Lake The Sweet Spot Locations are profitable on a Wilrich/Notikewin Dawson Lower Montney/ Spirit River/ full cycle basis at these commodity…
  21. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 21
    21 2017/2018 New EP Project Inventory: Significant Growth Upside Apr 2016 2017 Base Case Volume Contribution 2H 2017/2018 Incremental Production Project from the New EP Projects Volume Potential (Upside Case) BC Montney Turbidite…
  22. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 22
    22 Capital Cost Reduction Overview July 2016 Tourmaline drill and complete capital costs have been reduced by 30% since Q1 2015. A further 15% reduction is targeted with the 2H 2016 EP program. The Company estimates that 60-65% of…
  23. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 23
    23 Continuous Cost Reduction Strategy Aug 2016 Operating Costs General and Administrative Costs 2.46 8.00 2.50 7.00 2.00 6.34 6.00 /boe 1.50 /boe 5.58 1.29 4.87 1.02 5.00 1.00 4.43 4.35 4.37 0.79 0.74 0.60…
  24. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 24
    24 2016/17 Guidance Aug 2016 The 2017 EP program/guidance assumes a 12 drilling rig program. The Company is staffed to effectively operate 22 rigs and will systematically expand the 2017 program should commodity prices exceed…
  25. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 25
    25 Underlying Natural Gas Fundamentals are Strong. Mar 2016 Supply/Demand fundamentals support a strong natural gas price recovery, the warm 2015/2016 winter has temporarily deferred this rally, to 2H 2016/Q1 2017. Natural Gas…
  26. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 26
    26 2016 EP/Operations Outlook Aug 2016 2016 production growth of approximately 25% YOY. Current facility capacity of approximately 210,000-215,000 boepd, matching the 2017 production forecast. 2017 EP program assumes a 12 rig…
  27. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 27
    27 2016 Financial/Capital Outlook Aug 2016 EP capital budgets for 2016 and beyond will be less than or equal to cash flow. First half 2016 capital program reduced to 310 million. The Company continues to maintain one of the…
  28. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 28
    28 Tourmaline Environmental Performance Tourmaline strives to continually improve all aspects of environmental performance including the impact of its operations on air, land and water. Tourmaline ranks as a top decile performer…
  29. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 29
    29 Capitalization to Date Insiders Public Total millions of shares Price* millions of shares Price* 2008 Financings Common shares 28.50 5.16 22.00 7.00 301.0 2008 Financings Flow through shares 1.25 10.00 1.25 10.00 25.0 2009…
  30. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 30
    APPENDIX
  31. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 31
    31 Natural Gas Flows From Western Canada
  32. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 32
    32 Tourmaline Vs. US Shale Plays (1) Apr 2016 Tourmaline Tourmaline Marcellus Shale Marcellus Shale Utica Alberta Deep Basin (2) B.C. Montney (2) Liquids Rich Drill, Case, Complete 3.6MM 2.5MM 8.2MM 8.2MM 12.8MM Costs (USD)…
  33. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 33
    33 Marcellus & Utica Rig Count vs Production Analysis Apr 2016 180 25 70 Rigs required to keep Appalachia Aggregate Gas 160 Production Flat at 19.8 Bcf/d(1)(2) 20 140 120 15 100 Rig Count Bcf/d 80 10 60 40…
  34. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 34
    34 Hedging Summary 2016 Aug 2016 2016 Gas Hedges (July December) Volume Weighted Avg Price 677,085 Total price protected volumes mcf/d /mcf(1) (mcf/d) Fixed Price Hedges 19,644 Additional short term hedged AECO (CDN) 298,739 2.33…
  35. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 35
    35 Quarterly Hedge Summary Aug 2016 Natural Gas Volume Q3 2016 WAVG Price Volume Q4 2016 WAVG Price Volume Q1 2017 WAVG Price Volume Q2 2017 WAVG Price mcf/d /mcf(1) mcf/d /mcf(1) mcf/d /mcf(1) mcf/d /mcf(1) Fixed Price…
  36. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 36
    36 EP Growth Plan (Original Business Plan) Sept 2008 This is essentially the same business plan that was executed for Duvernay Oil Corp. (2001-2008) Primary growth mechanism will be a conventional EP Program (including Resource…
  37. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 37
    37 Western Canadian Sedimentary Basin Selected Exploration & Production Opportunities NORTHWEST TERRITORIES Alta. Deep Basin Peace River High Charlie Lk. Oil. Alta./NEBC B.C. ALBERTA Resource Plays Peace River High…
  38. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 38
    38 Alberta Deep Basin: Wilrich Regional Resource Play Apr 2016 R. 9 R. 8 R. 7 R. 6 R. 5 R. 4 R. 3 R. 2 R.1W6M R26,W5M T. 64 T. 64 Kakwa 4-29 Kakwa 13-12/5-12 30 day IP T.20.2 63 mmcfpd 30 day IP 19.2 mmcfpd T. 63 Tourmaline…
  39. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 39
    Alberta Deep Basin: 39 Notikewin/Falher Hz Program Apr 2016 R. 9 R. 8 R. 7 R. 6 R. 5 R. 4 R. 3 R. 2 R.1W6M R26,W5M KakwaT. 649-17 Kakwa 1-7 T. 64 30 day IP 21.8 mmcfpd 30 day IP 16.4 mmcfpd T. 63 T. 63 T. 62 Wild R 3-9…
  40. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 40
    40 Banshee Alberta Gas Plant Simple, easy to construct dew point plants tied to the main TCPL sales system Total cost (2 phases) of 80M, capacity of 130 mmcfpd with enhanced liquids recovery capability
  41. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 41
    41 Dawson-Doe Montney Turbidite Play May 2015 Tourmaline has delineated a new condensate rich Lower Turbidite Montney lobe at Dawson-Doe, with 17 wells drilled and completed since Q4 2013. The Company has a total of 273 remaining…
  42. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 42
    42 BC Montney Drill/Complete Cost Progression Apr 2016 10 9 7.5-8.0 MM 8 (4 Wells) Capital Cost Drill and Complete (Millions) 7 Optimized well Drilled approx Expanded to a design and expanded 6 15 wells/yr 3 rig program…
  43. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 43
    43 Current Reserve Distribution Mar 2016 R. 15W6 R. 1W6 R. 15W5 Peace River High NE Alberta Total Natural Gas Reserve Base of 5.69 100 BC Inga TCF, the second largest in Canada. 84.3 75 Peace River High T85 mmboe…
  44. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 44
    44 2015 Reserves Overview Mar 2016 Tourmaline has exceeded the billion barrel reserve milestone (Jan 1, 2016 2P reserves of 1.1 billion boe) and currently produces over 1.0 bcf/day of natural gas and 25,000 bpd of oil/cond/ngls.…
  45. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 45
    45 North East BC Montney Water Management July 2013 Non-potable water sourced lined reservoir for frac operations (2 non-freshwater wells) Separate water pipeline system to existing and future pads. Frac water pumped to pads…
  46. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 46
    46 Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities Cost saving via novel frac water sourcing/recycling Alternative hz frac programs/processes Concurrent pairs, delayed flow-backs etc. Novel drilling…
  47. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 47
    47 Schedule A DRILLING LOCATIONS This presentation discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and (iv) an aggregate total of (i),…
  48. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 48
    48 Schedule A continued Deep Basin Vertical well count : Approximately 2,600 gross prospective sections at approximately 1.5 wells per section minus 10% for areas that are inaccessible or limited by spacing requirements minus…
  49. August 2016 Corporate Presentation – Tourmaline Oil Corp. – slide 49
    49 Schedule B Prospective locations are unbooked locations that are not included in inventory. Unbooked locations are internal estimates based on the Company's prospective acreage and an assumption as to the number of wells that can…

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