Well Positioned to Accelerate Growth September 2016 TVE : TSX www.tamarackvalley.ca 1
Tamarack is Well Positioned TVE executed another low cost high oil weighted acquisition in July 2016 that is already exceeding internal production and cash flow expectations Now is the time in the cycle to use room on the balance…
Tamarack Core Areas Q2 2016 Production BOE/D % Liquids ALBERTA Cardium 6,801 54% Viking 486 94% SASKATCHEWAN Hatton 441 85% VIKING Other 1,808 26% Westlock OIL 9,536* 52% (2 - 4 drills) Redwater * Excludes the acquisitions…
Wilson Creek / Alder Flats TVE Sun Creek GP Keyera Minnehik Buck Lake TVE 9-24 Compressor Current: Alder Flats Q2/16 prodn 7,258 boe/d (51% liquids) (including TVE Wilson Mannville & Pekisko gas Creek Battery prodn) 310 (229…
Acquisition Criteria 2016 Asset Acquisition: Historical Acquisition Criteria: Redwater / Penny / Wilson Creek 1. cycle ROR on drilling upside must Price 85 million compete for capex with current Proved reserves at 10.36/boe…
Acquired Redwater Asset Performance Redwater (2017 strip as of July 19/16) Field Production Compared to Capital (000s) 750 Acquisition Forecast 1600 Rate IP30 (boe/d) 80% liquids 91 Field Actual Production Reserves (mboe) 80%…
Acquired Penny Asset Performance Field Production Compared to Pool Status: Acquisition Forecast Primarily drilled 1999-2005 1600 Under waterflood OOIP 71 MMstb Field Actual Production Current recovery factor 10% (7.1 mmbbls) 1400…
Cutting Costs on All Fronts Give Strength at Low Prices Capital Costs Cost Per Frac 4,500 160 145/stage 4,000 Equip+Tie-in Completions Drilling 140 / Stage Capital cost (000s/stage) 3,500 3,373 27% 120 2,945 105/stage 64%…
TVE Quick Payback Drilling Inventory…
Half Cycle ROR Resulting into Corporate Full Cycle Wilson Creek Oil Cardium* Q2 2016 Internal Estimate Full-Cycle Corporate ROR Capital (000s) 2,585 Rate IP30 (boe/d) (78% liquids) 393 Top 3 plays blended ROR (D.C.T) Reserves (mboe)…
Half Cycle ROR Resulting into Corporate Full Cycle Wilson Creek Oil Cardium* Q2 2016 Internal Estimate Full-Cycle Corporate ROR Capital (000s) 2,585 90 Rate IP30 (boe/d) (78% liquids) 393 85% Reserves (mboe) (78% liquids) 184 80…
Building Per Share Growth While De-levering Achieving Debt Adjusted Production Per Share Growth Well Inventory…
2017 Growth Potential Maintaining 1.0 times D/CF 13,000 Spend to maintain debt to CF ratio of 1.0x At 55 WTI: Cash flow per share growth approx. 30% on 95-100 million CAPEX exiting over 12,500 Assumes: 13,000 boe/d - 2.65/GJ AECO…
Current Hedges as at August 10, 2016 Term Hedge Type Volume Cdn Pricing July 1, 2016 to September 30, 2016 WTI fixed price 1,800 bbls/d Cdn 69.92/bbl October 1, 2016 to December 31, 2016 WTI fixed price 2,000 bbls/d Cdn 66.43/bbl…
Key 6 Month Objectives and Look-back What we did in Objectives for What we said we would do Q1 2016 / Q2 2016 Q3 2016 / Q4 2016 Assuming 57 million capex case: spend approx. H2/16 prodn average 9,800 10,500 on capital of Executed…
Summary Prudent Management through Downturn Stopped spending at the right time, cut opex, capex and G&A to improve sustainability Paid down debt in 2015 & 2016 yet delivered modest per share growth using high quality drilling with…
Appendix 19
The Tamarack Team Management Board of Directors Brian Schmidt, President & CEO Floyd Price, Chairman Current: CAPP Chair, IOGC Advisor, Director Aspenleaf Energy Current Directorships: Cimarex Energy, Source Energy Former: Spearpoint…
Tamarack Perspective and Culture 1. Build a sustainable, predictable and reliable growth company Full cycle rate of return driven Development inventory with payout 1 to 1.5 years maximum (top quartile in the industry) Clear line of…
Tamaracks 2016/17 Strategy Current 2016/17 strategy consistent with 2015 execution Manage to cycles Maintain strong balance sheet: keep debt to cash…
How to Win in a Downturn Position for High cost, low recovery Commodity commodity Reality sets in Execute M&A and recovery Poorest economics Position balance sheet build inventory Accelerate growth Q4/14 Q1/15 Pumping costs Q2/16…
Tamarack Wells in the Top 10th Percentile Top 10th Percentile Top 25th Percentile Note: The above IRR calculations assume CIBCs base commodity price forecast of US45.00/Bbl WTI & C2.78/Mcf AECO in 2016, and US65.00Bbl WTI &…
Attributes of 2016 Acquisitions (85 mm for 3 assets) Purchased at favorable metrics 44,750/boepd (75% light oil & NGLs) 4.8x cash flow at strip pricing Proved reserves at 10.36/boe Cash flow per share 5% accretive in 2016 and 14%…
2015 Acquisition & Performance Look-back Completed 3 tuck-in acquisitions for 54.0 mm Added 1,450 boe/d at 37,000/boepd (45% light oil & NGLs) 4.4x cash flow at strip pricing Added 5.75 mmboe at 9.37/boe proved and 6.44 mmboe…
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