Black Swan Energy: Scale, Growth and Value NEBC Liquids-Rich High Recent wells indicate 7-11 Bcf EUR at low cost Montney Quality 218,000 net acres Liquids yield of 35-50 bbl/MMcf Montney Half-cycle IRR of 75% at 2.50/GJ AECO1…
Black Swan Energy: Building Momentum Production Growth 16,000 Corporate production Avg. Daily Production (boe/d) 14,000 12,000 Q3/16 average 15,000 boe/d (16% liquids) Development 10,000 8,000 6,000 Pilot Drilling Capital…
Continuous Improvement in Well Deliverability Average EUR/Well1 Results demonstrate operational success 10.0 9.0 Average EUR 9.0 Bcf on most recent 24 Hz wells 8.0 Continue to enhance efficiencies 7.0 Increased number of stages…
Type Curve Supported by Multi-Well Development Pads Upper Montney Multi-Well Pad Performance: Average Rate Per Well Pad drilling has now delineated the 10,000 Type Curves entire southern portion of Black Swans 9,000 7-H Pad Average…
Update on Recent Results 19-E 92-C well pad offsets to existing Hz 92-C Five Upper Montney wells completed Q3/16 completed 2015 & 2016 6 well pad Completed Q3/16 Average expected EUR 9.0 Bcf indicated on test Liquids yields…
Low Cost Future Growth: Owned & Operated Gas Plant North Aitken Gas Plant Production 60.0 120.0 Phase 1 capacity: 10,000 boe/d 50.0 100.0 Plant optimized for above average C5+ yield from 22-C pad and to maximize netbacks: Gas…
Inventory Feeds 2016 Volumes: New Wells Support 2017 Growth Black Swan Production 20,000 18,000 Corporate production at record rates 16,000 Q3/16 average 15,000 boe/d (16% liquids) Daily Production (boe/d) 14,000 tied in 2016…
Uniquely Positioned With Multiple Egress Opportunities Current BRITISH COLUMBIA Processing 100 MMcf/d owned & operated gas plant ALBERTA Beatton River Phase 1: 50 MMcf/d (Jan 2016) 1 Phase 2: 50 MMcf/d (2017 expansion)…
Leveraging Infrastructure to Access Diverse Markets Infrastructure connects Black Swan to BRITISH COLUMBIA diverse existing and new markets ALBERTA NEBC Montney is the most active natural Planned infrastructure gas development area…
Aitken Area Capable of Delivering 100,000 boe/d Derisked Upper Montney inventory Aitken area has been proven across a broad land base Five year growth Unconstrained: capable of achieving 100,000 boe/d, then flat for 10 years…
Source Water Secured for Development Plan Beatton River water license Water license supports: Peak drilling rate of 100+ Hz wells/year c-7-H Fresh Water Pit 60,300 m capacity Development profile capable of achieving Water License…
PIR (Atax, 10%) 0.0x 0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x 1.6x 1.8x YO - Inga/Fireweed Montney CR - Greater Portage Montney VII - Route - Upper/Middle Montney TOU - Deep Basin Montney Canbriam - South Fault Block…
Dominant Position in Over-Pressured, Liquids-Rich Fairway Over-pressured Caribou Highly over-pressured reservoir 13-16 kPa/m Jedney Laprise Liquids-rich Normally Pressured Total liquids of 35-50 bbl/MMcf1 (50% C5+); maximizes…
Strategic Focus Long-term, Scalable, Low Cost Development Current Pad development: one-rig Montney program drilling up to 20 wells/year Activity North Aitken Gas Plant expansion to 100 MMcf/d One to Three Leverage asset scale…
Appendix 18
Black Swan Energy Management and Directors Management Team David Maddison, P.Eng. President and CEO (Talisman Energy, BP Exploration) Marc Mereau, P.Eng. COO (Talisman Energy, BP Canada) Michael Wilhelm, B.Comm., CPA, CGA CFO & VP…
Historical Financial Summary 2016 2015 2015 2014 2014 Q31 Q2 Q1 Full Year Q4 Q3 Q2 Q1 Full Year Q4 Q3 Q2 Q1 Production Oil (bbl/d) - - 65 79 54 64 82 116 17 69 - - - Gas (mcf/d) 75,484 71,376 46,944 23,538 26,513 24,318 19,431…
NEBC Growth in 2016 Driven by Junior/Intermediate Producers Industry investment accelerating 841 wells producing 1.2 Bcf/d at August 2016 Map reflects Tourmaline/Shell and Conoco/Bonavista announced deals but production does…
Montney: Proven Top-Tier North American Play Alberta Black Swan Beg A-020-H/094-G-01 BC Montney over 250 m thick Upper Montney 60 metres Four landing zones are proven Hz targets either on or immediately adjacent to Black…
Low Cost Reserves Underpin Growth Plan Delivered 250% Y/Y increase in 1P reserves & 78% Y/Y increase in 2P reserves Net Present Value1 Before Income 2015 Company Interest Reserves Taxes (MM) Gas NGLs Total 0% 8% 10% 15% 2015…
Reserve Booking Methodology Upper Montney Reserve Booking Map Proved plus probable reserves 2015 YE Proved + Probable (2P) reserves were 383 MMboe, of which 68% are in the upper Montney where development is focused 2P reserves for…
Flexible & Efficient 2016 Capital Program b-19-E Q1: a-92-C (6 well pad) 3 well pad drilled Q4/15 Drilled four wells at d-42-D completed Q3/16 Remaining four wells on the pad to be drilled prior to break-up and the pad will…
Black Swan Liquids Yields Corporately, in 2016 Black Swan has averaged Black Swan Corporate Liquids Yield 100 31 bbl/MMcf (72% C5+) Black Swans plant provides superior Production flowing to McMahon has lower 90 liquids yield vs.…
Upper Montney Multi-Well Pad Production Summary Black Swan utilizes downhole chokes on all Hz wells for operational purposes Data presented is based on actual daily production which has been normalized to adjust for downtime Cum to…
Substantial Resource to Unlock Jedney Capable of sustaining 2 Bcf/d for 10 years Gas-in-place supports long-term growth Average 250 Bcf/DSU OGIP 78 Tcf of gas-in-place 1 Over 2,800 Hz well inventory and 16 Tcfe of 2 recoverable…
Comparative Ranking Among Top US Plays Resource Play Benchmarking at US50/bbl WTI & US3.25/mcf NYMEX (half-cycle) 70% Black Swan well results improved over last two years 60% based on operational enhancements & geotechnical work…
Completions Evolution of Design Concepts is Ongoing Initial Completions Design Current Completions Design Continuous Evolution of Ideas Perf and plug (cemented liners) Open hole ball drop Perf and plug (cemented liners) 1,700 m…
Drilling Curves Show Efficient Operations Total Time vs. Depth 0 Surface hole Black Swan has established a highly effective D-42-D Four Wells 200 Set casing, cement drilling program as a result of continuous 400 Move pad rig,…
Over 4 Bcf/d New Egress Planned Within Three Years Egress Projects (MMcf/d) 2017 2018 2019 Receipt Point Delivery Point Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Spectra High Pine Ft. Nelson T-North TransCanada or Station 2 240 240 240 240…
Marketing and Risk Management Third party natural gas processing 25 MMcf/d firm: McMahon Nov. 2015 (5 yrs) Natural gas egress From McMahon 9.1 MMcf/d contract on Alliance effective Q4 2015 to Q4 2017 (23 months) 4 MMcf/d on T-North…
Type Curve Assumptions 1. Economics assume Black Swan owned infrastructure; Fx C/US of 1.30, 1.25 & 1.20 at US40/bbl, US50/bbl & US60/bbl respectively; Station 2 differential = 0.32/mcf 2. Economics Include equip & tie-in costs of 0.4…
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