CKE 2016 Strategy Preserve our working capital surplus, (19.5 million unconsolidated for Chinook Energy Inc. at September 30, 2016) through the balance of the year and into 2017 Continue to materially reduce cash costs to the…
CKE Strategic Review Process Engaged Peters & Co. to assist in a comprehensive review of strategic alternatives that will result in a well-capitalized entity that can best develop our emerging Montney assets at Birley/Umbach, BC and…
Strategic Transaction: Divestiture to Craft Oil Ltd. On June 10, 2016, we completed the divestiture of the majority of our non- Montney Alberta assets for 70% of the approximate 217mm issued and outstanding shares of Tournament…
Three Well Birley Drilling Program Drill 3 (2.67 net) wells at Birley/Umbach (Q4 2016). Complete and tie-in these wells (Q1 2017) Prepare an additional Birley/Umbach lease for further 2017 drilling. Our guidance for the Chinook 2016…
2016 Q1 2017 Activity Facility construction completed Five (4.25 net) CKE Montney Hz wells on production in mid February Wells are performing above type curve expectations Continued expansion of land position along the Montney…
Birley - CKE Well Performance 6 HZ wells (5.0 net) drilled and completed to date Five 1200m Hzs with 18 stages, one 1600m Hz with 24 stages (future wells all 1600m+ Hzs with 24+ stages) All fracs were 65 tons, 65m spacing,…
Birley - CKE Comparison to 120 Montney Wells Chinook 2014 Wells (3) CKEs Montney wells are the shallowest in the play trend, but still rank in the top quartile for first year Chinook 2015 Wells (3) productivity (good rock) Company…
ECONOMIC SENSITIVITIES Birley Well Economics Birley Montney Type Well Unrisked Economics 1,600m HZ w 24 Frac Stages IP90 857 boe/d 4.8 mmcf/d raw gas + 32 bbls/mmcf (15 bbl cond, 7 bbl pentane) IP365 601 boe/d 3.1 mmcf/d + 84…
Birley Activity By Year Early History and Conservative 5 Year Plan (easy to accelerate) All values are current CKE net amounts (generally 84% WI) 2014 (1) 2015 2016 (est) 2017 (est) 2018 (est) 2019 (est) 2020 (est) WELLS DRILLED…
Birley - Production Growth Potential (Accelerated Case) Consider building sour gas plant 60 Phase II capacity growth to 54 mmcf/d (July 2017) -requires construction of 25 mmcf/d Gas Rate (mmcf/d) & Well Count compressor…
GRANDE PRAIRIE AREA - Montney Knopcik Area 34.5 Sections (18 net) Gold Creek Area - 27 sections (17 net) Q1/16 drills Recent well 9 mmcf/d IP 16 Hz wells now drilled offsetting 1st CKE well IPs range from 400 to 1,800…
2016 Industry Challenges Continue Important to understand and address near term challenges and to be transparent about them Current strategy remains in place to preserve cash and to avoid eroding NPV by pursuing growth…
Contact Chinook Walter Vrataric, President & CEO www.chinookenergyinc.com Chinook Energy Inc. T: 403.261.6883 Suite 1000, 517 10th Ave SW F: 403.266.1814 Calgary, Alberta, Canada T2R 0A8 info1chinookenergyinc.com
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