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October 2016 Investor Presentation – Painted Pony Petroleum Ltd

Painted Pony Petroleum Ltd · Oct 10, 2016 · 37 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. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 1
    PAINTED PONY Investor October 12, TSX: PPY PETROLEUM LTD. Presentation 2016
  2. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 2
    Why do we do what we do PPY embraces new ideas and technologies. It is in our DNA, it is part Innovation of who we are Win / Win Approaching all dealings with partners, shareholders, suppliers, and Relationships stakeholders…
  3. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 3
    Corporate Profile TSX Ticker Symbol PPY Current Daily Production (per September 19, 2016 180 MMcfe/day Daily Trading Volume (30 day trading average) 1.1 million shares per day press release) (30,000 boe/d) Shares 100…
  4. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 4
    Significant Growth Montney Growth Forecasting 2016 exit production of approximately 240 MMcfe/d (40,000 boe/d) representing a 166% increase over fourth quarter 2015 average daily production of 90.3 MMcfe/d (15,043 boe/d) Fully…
  5. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 5
    The Montney Trend Location, Location, Location PPYs Montney Sweet Spot is: a dolomitic siltstone with higher quality reservoir than a shale 4x thicker than the Marcellus at greater than 300m (984 ft) 300 meters (approximately…
  6. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 6
    Production Growth Impressive and Consistent 4,221 6,589 8,693 13,192 23,000 46,000 Annual 15,604 boe/d boe/d boe/d Average boe/d boe/d boe/d boe/d boe/d 300 400 Annual Average MMcfe per Day per 1 Million Shares Annual…
  7. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 7
    5-Year Development Model Infrastructure Build Drives Production Growth 700 700 AltaGas Townsend Facility (Phase II) 48 MMcf/d 600 AltaGas Townsend Facility 2019 (Phase II) 150 MMcf/d 600 Production (MMcfe/d) 500 500 AltaGas…
  8. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 8
    Growth Plan Increasing Cash Flow from Production Growth 69 Million of Free 450 Cash Flow in 606 MMcfe/d 650 Capital Development Program (August 2016) (101,000 boe/d) 2019 Annual Average Daily Forecast Production 600 Annual…
  9. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 9
    Increasing Cash Flow per Mcfe Driving Cash Costs Lower; Increasing Liquid Yields G & A Costs per Mcfe Operating Costs per Mcfe Liquids Production Operating Cost ( / Mcfe) 0.40 63% 1.00 35% 6,000 G&A Cost ( / Mcfe) Liquids…
  10. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 10
    Strong Cash Flow per Mcfe Positive Earnings Forecasted in 2017 at August 2, 2016 Strip Pricing Forecasted 2017 Cash Flow and Earnings per Mcfe* 3.50 1.50 0.41/Mcfe 3.00 Net Income 1.00 Cash Flow/Mcfe 1.35/Mcfe Equals 41% of…
  11. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 11
    Prudent Risk Management Financial Hedges Financial hedges protect funds flow and mitigate pricing volatility thereby reducing the impact of regional pricing disparities 400 AECO Fixed Price Hedges (/Mcf) Station 2 Fixed Price…
  12. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 12
    Prudent Leverage Balance Sheet Strength Maintained 3.25 Natural Gas NYMEX (USD) 2.25 Natural Gas NYMEX (USD) YE Net Debt : Q4 Annualized Funds Flow (WTI and FX at August 2, 2016 Strip) August 2, 2016 Strip Pricing (WTI and FX at…
  13. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 13
    Land Position Premium Assets in the Optimum Location Large contiguous land base with year-round access 199 net sections (127,354 net acres) 2nd Largest position in northern Montney west of deep royalty line Attractive B.C.…
  14. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 14
    Royalty Advantage Best Royalty Structure in North America Painted Pony is 100% in B.C. and 100% west of the Deep Royalty Line Inclusive of the B.C. Deep Well Royalty Credit, B.C. has the best royalty structure in North America PPY…
  15. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 15
    Facilities Key Infrastructure New AltaGas Townsend Facility: PPY Major new shallow-cut facility Operated Alaska Highway West Blair (25 MMcf/d) Blair 198 MMcf/d licensed capacity PPY Operated PPY has secured firm capacity for…
  16. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 16
    Sales Egress Optionality Firm Transportation Supports Increasing Production Volumes Began selling 45 MMcf/d onto AECO Oct 1, 2016 Selling 18 MMcf/d at Sumas / Huntington sales hub (US/Canada border) starting November 1, 2016 266…
  17. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 17
    2015 Reserves Deep, Long-Term, Underlying Value At December 31, 2015(1): 2P Reserves 4.6 Tcfe 7.5 2015 2P times Recycle Ratio (F&D) Increase in 2P Reserves from December 31, 2014 (1) 57% 1.5 2015 1P times Recycle Ratio (F&D)…
  18. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 18
    Canadian Natural Gas 2P Reserves As at Dec 31, 2015 49% Reduction 2015 Cost of Supply in FDC/Mcfe 33% Increase in 2P Undeveloped Reserves per well (13-15) 7.5x Recycle Ratio (1.23 Netback / 0.16 F&D) 10 1.48 2013 FDC/Mcfe (1)…
  19. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 19
    Reserves Growth Impressive and Consistent 136.9 191.1 290.3 488.4 768.0 MMboe Reserves MMboe MMboe MMboe MMboe 5 60 4.6 Assuming Enterprise Value 50 4 10.24/sh 46.1 (8.50/sh equity + 1.74/sh debt) Reserves per Share…
  20. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 20
    Reserves Growth Per Share Growth Comparison 9 80% 69% 2015 BOE per 1,000 Shares 2014 BOE per 1,000 Shares 8 2P Reserves per Share Growth (2015 over 2014) 60% 7.7 7 2P Reserves per Share Growth 40% 6 22% 18% BOE per…
  21. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 21
    Reserves Growth / Cost Reduction Bigger and Cheaper PPYs reserves per share continues Reserve to increase while cost of supply per Finding & Growth Mcfe continues to decline Development Proved Plus Probable 5.0 50 Costs Proved…
  22. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 22
    Well Performance Top Performing Wells Among Montney Producers Painted Pony Average Peak Month Rate Twice Average Comparable Wells 275 7 140 Painted Pony PPY Wells (6.2 MMcf/d) Average Double 6 the Rates of All 120 2013-2014…
  23. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 23
    Technology Parallel-Pair Completion Using Open Hole Ball-Drop Open Hole Ball-Drop Single Well Production Increase at Ball-Drop No Cost Open Hole Ball-Drop Packer Increase Parallel Pair Completion 300-350 m Inter-well…
  24. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 24
    Dramatic Increase in Capital Efficiencies Blair-Daiber High-Rate, Liquids-Enhanced 10 A 72% increase in 6-month cumulative production (1.4 Bcfe vs. 0.8 Bcfe; 15.5 Bcfe vs. 11 Bcfe 8 Management Type Curves 15.5 Bcfe EUR; 34%…
  25. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 25
    2016 Development Plan & Economics Blair-Daiber High-Rate, Liquids-Enhanced Development Program Economics 4.8 million Drill, Complete, Equip & Tie-in 9.1 MMcfe/d IP30 Production Rate 15 bbls/MMcf Liquids Recovery (C3+) 9.2…
  26. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 26
    Improving Capital Efficiencies Townsend Liquids-Rich Sweet Spot 10 A 100% increase in 6-month cumulative production (1.0 Bcfe vs. 0.5 Bcfe; 9.5 Bcfe 8 Management Type Curve vs. Plug & Perf Type Well) coupled with a Through…
  27. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 27
    2016 Development Plan & Economics Townsend Liquids-Rich Sweet Spot Development Program Economics 4.8 million Drill, Complete, Equip & Tie-in 7.4 MMcfe/d IP30 Production Rate 60 bbls/MMcf Liquids Recovery (C3+) 6.7 million NPV…
  28. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 28
    Development Economics Price Sensitivity 250% High-Rate and Liquids- Enhanced, Blair-Daiber Blair-Daiber Wells Deliver Significant 15 bbls/MMcf 200% (15.5 Bcfe Paired Torque to Stronger Gas Prices Parallel Type Well) 150%…
  29. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 29
    Capital Expenditures 2016 2016 Actuals / Forecast Alaska Highway Blair Period Capital Drilling Completions Blair/Townsend West Q1 67.1 million 12 net wells 9 net completions Interconnect Blair Pipeline Q2 35.3 million 5 net…
  30. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 30
    Best Pony in the Race Checking Off All of the Boxes Financing In Place Top Well Performance Low Well Costs Well Hedged Rapid Growth Lowest Royalty Framework Processing Capacity to Support Growth Firm Transportation Massive…
  31. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 31
    Appendices and Disclosures
  32. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 32
    AltaGas Strategic Alliance Deal with People You Trust in a Win / Win Alliance Liquids-Rich Natural Gas Processing Provides for the development of essential liquids-rich gas processing facilities Existing AltaGas PNG…
  33. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 33
    Strategic Asset Swap Increased Working Interest on Key Sections Strategic asset exchange announced July 27, 2016 New 100% owned and operated core development in Daiber area Swap increases average working interest from 75% to…
  34. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 34
    Proposed West Coast LNG Projects Proposed LNG Projects Capacity Exxon Imperial 4.0 Bcf/d WCC LNG Shell Petrochina, Mitsubishi, KOGAS 3.2 Bcf/d LNG Canada Nexen / CNOOC Inpex, JGC 3.1 Bcf/d Aurora Liquefied Natural Gas Ltd.…
  35. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 35
    Equity Research Sell-Side Analyst Coverage Institution Analyst AltaCorp Capital Patrick ORourke BMO Capital Markets Joe Levesque Canaccord Genuity Corp. Anthony Petrucci CIBC World Markets David Popowich Cormark Securities Inc.…
  36. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 36
    Corporate Overview Auditor KPMG LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Banks The Toronto-Dominion Bank The Bank of Nova Scotia Alberta Treasury Branches Canadian Imperial Bank of Commerce HSBC Bank Canada Wells…
  37. October 2016 Investor Presentation – Painted Pony Petroleum Ltd – slide 37
    Endnotes R: Reserves per share are calculated by dividing 2P reserves by shares outstanding at the end of the year. As at December 31, 2015, Painted Ponys 2P reserves were 768 MMboe and there were 100.0 million shares outstanding.…

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