Corporate Presentation value in the Journey TSX: JOY September 2016
Key Themes from Q2 Lower Cost Structure (Transformed asset base to a more focused, low operating cost core group of assets, improving JOYs ability to profit in all pricing environments) Solved Infrastructure Challenges (Acquired…
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 (1.9 MM increase in cash flow with a…
Corporate Overview 8,600 boe/d, 54% liquids (1) 43.6 MM basic shares (59% insiders; 50% PSP Investments) 103MM net debt with a 110MM credit facility (2) DRAWN (80MM…
Core Areas (Along a Prolific Resource Fairway) We produce 8,600 boe/d from pools in our Resource Fairway Resource Alberta Fairway Shallow, low-risk development drilling in conventional oil pools Central Region Edmonton…
Journey Provides Investors with Security, Value and Upside S U E V P C A S U L I R U D I E E T Y Journeys low decline rates and high producing value provide security in uncertain times 8
Security for Today Experienced team to steward investments 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 yrs; P+PDP RLI = 8.0…
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) Multiple options to allocate capital…
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 165 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 800 MM net barrels of OOIP 400 MM 400 MM convert…
Journey Provides Investors with Security, Value and Upside S U E V P C A S U L I R U D I E E T Y Journey trades at a significant discount to our peer group at a historically low oil price 14
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 Positioned for growth in 2017 (sustaining capital is less than forecasted cash flow) Cheaper to buy it than build it (180MM enterprise value(1) ; 21,000/boed and 7.00/ P+PDP boe) Value will grow over…
Business Plan 2013 2014 2015 Operating Highlights 2016 Guidance Actual Actual Estimate Production Average (boe/d) 5,255 10,346 10,309 8,600 - 8,900 Oil and NGLs (%) 54% 53% 54% 54% Corporate Decline Rate (%) 26% 20%…
Hedging and Sensitivities Hedging Oil Contracts Volume Bbls/d Pricing point Strike price/Bbl Term Swap 2,500 WTI NYMEX C 62.55 July 1, 2016 to Dec 31, 2016 Swap 1,000 WTI NYMEX C 60.00 Jan 1, 2017 to Dec 31, 2017 3 Way Collar 1,000…
Journey Provides Investors with Security, Value and Upside S U E V P C A S U L I R U D I E E T Y Journey is built on a strong foundation of large OOIP reservoirs with low recovery factors 22
Development Drilling Inventory Journey has identified 278 (net) horizontal oil drilling opportunities Horizontal Oil Well Drilling Locations(2) % Booked(1) in Total(3) Reserve Report Region Gross Net South 188 178 24% Central…
Remaining Resource Becomes Future Target 2.7% booked inventory 81.7% of oil left 18.3% ultimate behind recovery 2.7% unbooked Ultimate inventory Recovery 12.9% recovery to date Oil left behind becomes Target Resource…
Future Growth is Driven by Economic Plays Our plays are valuable (Add 199MM in P+P NPV 10% with 173MM in FDC) (525MM in unbooked inventory has the potential to more than double the value of the company) Our future is currently…
Improving Recovery in our Legacy Oil Pools Key capital projects for 2016/2017 Countess CBM (Full Development plan for H2 2016) Brooks Sunburst development and facility upgrade Skiff horizontal development/waterflood expansion…
Countess - CBM Uphole Recompletion Program LEGEND Acquired in PennWest Acquisition CBM Production Journey CBM rights Located on Heritage Freehold block Journey Land Both MacKay and Taber Coal Zones completed on all sides of…
Brooks Sunburst Acquisition and Development Farm in/minor purchase on 12 Sections (35 boe/d) Q3 drilling location prospective for Sunburst oil Offsetting wells 12-36 and 15-28 Hz - low decline Journey Commenced oil wells pipeline…
Skiff Sawtooth Drilling & Waterflood Development Acquired section 8 in Q4 2015, allowing for waterflood expansion to the south ( 5 million barrels of OOIP) Recoveries in established portions of the pool exceed 30% of OOIP with limited…
Herronton Elkton Horizontal Development Acquired in February 2013; then producing 300 boe/d; 85% gas First well drilled in September 2013; drilled 11 wells to date Current production 1,000 boe/d; 43% liquids 17 land purchases/leases…
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 10 Primary Decline 1 Nov-14…
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 Alberta Central Region South Region Strong governance Edmonton Experienced management Calgary 34
Appendix - Central Region Drilling Program Currently planned For Crystal, Poplar Creek, and Cherhill Horizontal Oil Well Drilling Locations(2) Booked(1) Unbooked(3) Property Formations Gross Net Gross Net Poplar Creek/ Belly…
Appendix - South Region Skiff 100% of our South inventory is concept tested, with at least 1 Hz well drilled in each pool Horizontal Oil Well Drilling Locations(2) Booked(1) Unbooked(3) Property Formations Gross Net Gross Net…
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: Five years as Director of Journey (four as CEO), President and CEO of NuVista Energy, VP…
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