Growth focused junior oil company with a low cost, low risk, diversified asset base, strong balance sheet and a deep inventory of economic future drilling opportunities 2016 Q3 Actuals 5,420 boe/d (2 months of Striker production) 71%…
2016 Q4 estimated net debt to cash flow ratio of 1.1 times Provides significant strategic optionality and strong insurance against future price volatility Accomplished through two years of capital restraint, dedicating cash flow and…
The new diversified Gear Energy Focus on low risk, low cost, heavy and light oil horizontal resource oriented plays Other GXE 230 boe/d Elk Point 215 boe/d Edmonton Celtic/Paradise 1085 boe/d Morgan Drayton Valley Vermilion…
Gear development capital investment in 2016 is forecast to continue the exceptional results from 2015 2015 total capital efficiency of 13,500 was a 60% improvement over the previous four year average 5 year history of trailing 12 month…
WTI Risk Management 2016 Q4 2,200 bbl/d 66.66 CAD Swap (Average) 2017 H1 900 bbl/d 61.39 CAD Swap (Average) Risk management program target of 50% protection 200 bbl/d 60.00 x 71.00 CAD collar (volumes net of royalties) 200 bbl/d 60.00…
Current Oil Futures for 2017 WTI US 48.25/bbl WTI CAD 64.15/bbl Resulting in 2017 preliminary estimates of: Revenue: 38.00/boe Based on 60% heavy oil, 25% light/medium oil and 15% gas Cash Flow: 16.20/boe Assuming 10%…
Three remaining wells of the 14 well program to be drilled during the fourth quarter of 2016 Exit production for 2016 is dependant on the timing of those wells The strategy for 2017 will be to invest capital within cash flow, hold debt…
Operating costs and G&A costs per unit have continued to improve since 2014 Interest costs per unit have also declined Q4 2016 Guidance over 40% 14.00 - 16.00/boe Q3 2016 16.33/boe Third quarter operating cost were temporarily…
Gear resumed drilling operations in June 2016 and increased the planned program from 12 to 14 wells in September Program Highlights Wildmere Three quad lateral unlined horizontals to follow up on the successful quad lateral well…
8% of Gear Q3 production Three successful quad-lateral unlined horizontal wells 3% Royalty drilled in 2016 with initial production averaging 9/boe Op costs approximately 45% higher than the first well drilled in 2015 (and the current…
7% of Gear Q3 production Eight new McLaren wells drilled in 2016 to follow up 9% Royalty 10/boe Op costs on the existing five successful wells McLaren Sands All eight wells are now successfully on production with initial rates on the…
McLaren A McLaren A & B McLaren B 6.5 Sections undeveloped land Two overlapped sandstones 3m per zone Current estimate of horizontal drilling inventory is limited to land with historical proven vertical production 2016…
Two successful half section horizontal wells previously drilled in the regional Basal Belly River formation. The 1-4 well was drilled in an undrained area of the reservoir and the 11-32 well was drilled into a lower pressure area adjacent…
9% of Gear Q3 production 8% Royalties Gear plans to follow up historical Basal Belly 18/boe Op costs River success with two Basal wells in Q4 2016. The Gear wells are planned as full section wells with approximately 2.5 times the…
Over 20 undeveloped sections of crown land were acquired through 2015 for approximately 1 million Another 10 sections of land have been added to date in 2016 for approximately 600k Gear is targeting material future potential horizontal…
Gears four year history of successfully growing value per debt adjusted share was impacted by oil prices With recent cost compression and price stability, the strategy is to resume growth per DA share in 2017 Cash flow metric shown…
Executive Experience Ingram Gillmore VP Engineering - ARC Energy Trust, Talisman President & CEO, Director Yvan Chretien VP Land - ARC Energy Trust, CNRL VP Land Bryan Dozzi Engineering Manager - Gear Energy, Rock Energy VP…
Independent Directors Experience Don T. Gray Prior Founder, President & CEO, Peyto Energy Trust Chairman Raymond Cej Prior President, Teine Energy Ltd., Shell Canada Ltd. Harry English Prior Senior Partner, Deloitte LLP John OConnell…
Analysts Altacorp Thomas Matthews Beacon Securities Lyndon Dunkley Canaccord Genuity Sam Roach Cormark Garett Ursu Desjardins Jamie Kubik GMP FirstEnergy Bob Fitzmartyn Haywood Darrell Bishop National Bank Brian Milne Peters & Co Dale…
Price forecasts are US50 flat WTI with 0.80 CAD/US foreign exchange, or US45 flat WTI with 0.775 CAD/US exchange, a heavy oil differential of 30% off WTI with an additional heavy oil quality discount of CAD4.50, and a light oil realized…
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