CANBRIAM ENERGY INC. CORPORATE PRESENTATION NOVEMBER 2016
Canbriam Energy A fully integrated, BC Montney natural gas growth company with differentiated resource quality Private company focused in the Altares region of the prolific Montney formation in northeast Montney trend BC Fort St.…
Canbriams Altares is located in the northern extension of the Montney The prolific BC Montney has significant well density and peer activity Montney trend Fort St. John Edmonton Calgary Vancouver Canbriam -…
Differentiated resource quality in the BC Montney Four key attributes that differentiate the Altares Montney 1. Over pressured reservoir Up to 2 times over pressured within Main Fault Block 2. Subsurface compartmentalization…
Drilling inventory supports low-risk production growth Deep inventory of liquids rich natural gas wells at current pace of development Reserve bookings: Liquids rich development locations: +20 years of upside 7 years of inventory at…
Significant reserves growth with high liquids content Canbriams 2P bookings reflect consistent well performance and the addition of 24 PDP wells in 2015 2P Reserve growth (MMboe) 2P F&D costs & recycle ratio (1) 25 3.2 3.5 63 2.9…
Stable production history with strong liquids content Canbriams production growth reflects addition of phases 1 & 2 of the Altares Processing Facility in 2015 Production history (MBoe/d) 45 Oct 2015: Phase 2 of Altares Processing…
Development plan focused in the prolific Main Fault Block Canbriams Main Fault Block is substantially de-risked and represents the majority of the next 5 years development Daily Raw Gas Production by Well Upper Montney Development…
Altares wells amongst highest deliverability in Northern BC Montney extension 12 & 24 month rates vs. cumulative production 12 month cumulative production vs. rate (Q3 2016) 8,000 Northern BC Montney extension Cal Daily Gas Rate in…
Optimizing well performance through choke management strategy Canbriams use of downhole chokes optimizes its over-pressured reservoir Altares c-B27-H well - Upper Montney Advantages of downhole chokes: 15.0 30,000 Minimizes 1st…
Improving decline rates through choke management Maintenance capital requirement is 50-60 million annually for 25,000 boe/d of production Production by well vintage 30,000 24% 2016 H2 2016 H1 corporate 2015 2014 25,000 decline…
Infrastructure strategy supports large scale development Canbriam owns & operates all processing infrastructure North Altares infrastructure & pad locations 100% owned & operated infrastructure: Altares Processing Facility consists…
Altares Processing Facility: scalable to 400 MMcf/d Canbriam owns & operates all processing infrastructure Water treatment & recycling hub Commissioned March 2015 Phase 4: 120 MMcf/d Sanctioning to be determined Phase 3: 120…
Integrated water solution is a strategic advantage Demonstrates robust economics, eliminates need to truck water and provides benefits to stakeholders Canbriam water infrastructure capital cost (MM) 1. Sourcing & distribution Project…
Marketing plan supports long term development Canbriam benefits from competitive royalties, supportive stakeholders and easily accessible infrastructure Sufficient takeaway capacity: Spectra T North: 209 MMcf/d firm capacity in early…
Four key elements to Canbriams financial strategy Disciplined approach to financial management Priority in 2016 was prudently 2016 capital spending funded managing spending in uncertain through cash flow and bank lines price…
Managing Station 2 pricing in 2017 Active hedging, physical sales basis contracts & high heat content have optimized natural gas pricing High heat content natural gas(1) Regional price exposure 2017E(2) 3.00 2.50 13% Chicago…
Hedge positions & composition of total liquids production Actively hedging commodity price risk through disciplined risk management M GJ/d Natural gas hedges (at Nov 14, 2016) Liquids hedges (at Nov 14, 2016) 140 3,000 120 97.35 120…
Investing in Canbriam Energy A fully integrated, natural gas growth company with differentiated resource quality Prolific EUR/well with 1,100 of Montney vertical thickness on 62,000 (50% liquids rich) net acres 199.3 MMboe of gross…
SUPPLEMENTAL INFORMATION 21 Canbriam Energy Corporate presentation
Canbriam has the foundation for long term value creation Our approach is defined by three key elements Resource Innovation Collaboration Montney is a world class reservoir Canbriams success is tied to early Team approach fosters…
Differentiated resource quality in the BC Montney Four key attributes that differentiate the Altares Montney 1. Over pressured reservoir Up to 2 times over pressured within Main Fault Block Downhole choke strategy enhances EUR,…
Differentiated resource quality in the BC Montney Four key attributes that differentiate the Altares Montney 2. Subsurface compartmentalization Leads to distinct high pressure regions with consistent well results North Fault…
Differentiated resource quality in the BC Montney Four key attributes that differentiate the Altares Montney 3. Significant thickness 4. Strong liquids component Several zones have been tested 2016E liquids yield: 30 barrels per…
Stable production history with strong liquids content Canbriams production growth reflects addition of phases 1 & 2 of the Altares Processing Facility in 2015 250 Inlet Sep Natural gas production 40,000 Boe/d capacity 200…
Canbriam Energy Management An experienced team with a track record of value creation Paul Myers Founder and CEO since company inception in 2008 President and Chief Formerly President & CEO of Esprit Energy Trust, prior to…
Proven ability to manage over-pressured reservoir Canbriams Altares Montney is up to 2 times over pressured Development plan supported by: 1. Safe operating procedures Plug & Perf is one of the lowest risk completion techniques for…
Main Fault Block type well economic sensitivities Type wells demonstrate strong economic returns under different pricing scenarios Montney NPV10 (M) Montney IRR 18,000 100% 16,000 90% 80% 14,000 70% 12,000 60% 10,000 50%…
Type curve economics Upper Montney Canbriams Upper Montney wells have exceeded type curve performance Well properties 6,000 Raw gas type curve (Bcf)(1) 9.0 5,000 Sales gas (Bcf)(2) 8.2 Liquids (Mbbl)(1) 367 Raw gas production…
Type curve economics Lower Montney Lower Montney performance reflects over-pressured reservoir Well properties 6,000 Raw gas type curve (Bcf)(1) 8.0 5,000 Sales gas (Bcf)(2) 7.3 Liquids (Mbbl)(1) 145 Raw gas production rate…
Historical financial summary Netbacks reflect improving cost structure and production growth Average production 26.2 Adjusted EBITDA(1) 87.8 83.0 (Mboe/d) (C millions) 66.0 17.9 9.6 7.8 23.0 4.3 4.0 2012 2013 2014 2015 Q3…
Composition of revenue stream between natural gas & NGLs Disciplined risk management & active hedging program have supported realized prices Revenue by product: 2014 Q3 2016 (/boe) 40.00 36.24 30.00 26.65 24.21 22.38 22.28…
Supplemental reserves information 2015 Independent reserves evaluation completed by McDaniel & Associates Reserves Reconciliation (1) Proved Probable Proved + Probable Natural Gas NGLs Total Natural Gas NGLs Total Natural Gas NGLs…
Canbriam Energy Inc. 2100, 215 2nd Street SW Calgary, AB Canada T2P 1M4 Tel: 403.269.2874 www.canbriam.com Paul Myers President & Chief Executive Officer 403.718.8550 pmyerscanbriam.com Rob Froese Chief Financial Officer 403.718.3601…
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