2017 Budget Includes Production Growth of 17% to 236 mmcfe/d (39,333 boe/d) & Upsized Glacier Gas Plant Expansion to 400 mmcfe/d (66,670 boe/d). Development through 2019 increases Production to 316 mmcfe/d (52,670 boe/d) Investor…
ADVANTAGE AT A GLANCE TSX, NYSE: AAV TSX 52-week trading range 5.85 - 10.33 Shares Outstanding (basic) 184.6 million 2016 Annual Production Target 40% Annual Production Growth 200 mmcfe/d (33,300 boe/d) Market Capitalization November…
OUR STRATEGY LONG TERM PROFITABLE & SUSTAINABLE GROWTH Strong Balance Sheet 1.0x D/CF(1) 2016 Operating & Hedged to Protect Own & Operate Financial Flexibility Future Cash Flow (2) 100% Plant & Lowest Cash Cost Infrastructure…
LAST 3 YEARS - A SOLID TRACK RECORD OF VALUE GENERATION THREE-YEAR TOTAL SHAREHOLDER ESTIMATED ANNUAL RETURN RETURN (Nov.7/13 to Nov.7/16) 2016 Estimate /mcfe 124% (1) Natural gas and liquids sales price 2.75 including realized…
2017 BUDGET FUNDED THROUGH CASH FLOW INCLUDING UPSIZED GLACIER GAS PLANT EXPANSION TO 400 MMCF/D ( million) 2017 Highlights (1) 205 210 17% Annual Production Growth Drill 21 wells 37 27% Cash Flow Per Share Growth(2) 236…
PRODUCTIVITY & INFRASTRUCTURE SUPPORTING 2017 THROUGH 2019 GROWTH 125 mmcf/d Surplus Well Productivity from 9 Completed Standing Wells(1) 12 wells Uncompleted Standing Wells(2) 150 mmcf/d Plant Expansion to 400 mmcf/d in progress 180…
ADVANTAGES 2017 THROUGH 2019 GROWTH 2017 thru 2019 Highlights 56% Production Growth (2017 to 2019) 625 Million Capital Investment Post 2019 735 Million Cash Flow Average AECO Cdn 2.95/mcf (2.80/GJ) 400 mmcfe/d 0.2x Total YE 2019…
ADVANTAGE GROWTH PLAN 2017 THROUGH 2019(1) Annual Average Production 16% Capital Spending Cumulative 625 million CAGR (2) (mmcfe/d) ( millions) 2017-2019 16% 316 15% 205 210 210 17% 272 236 202 131 2016E 2017 Budget…
CASH SURPLUS REDUCES TOTAL DEBT TO CASH FLOW Cumulative Cash Surplus(1) Year-end Total Debt to Cash Flow (1) 2.95/MCF (2.80/GJ) Ratio 80 110 million 2017-2019 1.0 0.8 32 0.6 25 5 0.2 2016E 2017E 2018E 2019E 2016E…
DEVELOPMENT PLAN NATURAL GAS PRICE SENSITIVITY CFPS & D/CF (1) Includes Advantages hedges as of November 28, 2016 10
MAINTENANCE CAPITAL AND SURPLUS CASH FLOW SENSITIVITY ILLUSTRATIVE AT 325 MMCFE/D 3 Year Cumulative 3 Year Cumulative (NO HEDGING INCLUDED) Surplus Surplus 525 million 690 million 360 Million 305 Million Surplus Cash Flow…
ATTRACTIVE NETBACKS & RECYCLE RATIOS ARE ACHIEVABLE WITHOUT HEDGING Montney Natural Gas Producers Total Cost Structure Q3 2016 NO HEDGING INCLUDED /Mcfe 5.00 Illustrative Illustrative AECO Cdn AECO Cdn 4.50 AAV - 0.58/mcfe Lowest…
HIGH QUALITY MONTNEY ASSETS, OPERATIONAL EXCELLENCE 13
GLACIER DRIVES GROWTH THROUGH NEXT DECADE, ADDITIONAL MONTNEY LANDS PROVIDES FUTURE UPSIDE Current development at Glacier including Progress dry and liquids rich gas drilling with a future (Future) drilling inventory 1,100 locations…
ONLY 7% OF GLACIERS FUTURE WELL INVENTORY REQUIRED FOR 2017 THRU 2019 DEVELOPMENT Only 83 of our 1,100 Future Drill Locations at Glacier is required to achieve growth to 316 mmcfe/d average 2019 Only 297 undeveloped locations booked…
RECENT EIGHT WELL PAD SURPASSES MANAGEMENT EXPECTATIONS COMBINED 120 MMCF/D(1), 35 MILLION DCE&T Longer Laterals, More Frac Stages 3 LM wells average 2,583 meters (longest 2,880 meters) 5-16 28 frac stages, 60 tonnes/stage 8 Well…
UPPER & LOWER MONTNEY WELL PRODUCTION CONTINUES TO IMPROVE 16mmcf/d New wells are normally restricted to 10 mmcf/d for frac sand flowback control during initial 6 months Production Average (19 wells, 2014-2015) Budget Type Curve…
RECENT LOWER MONTNEY WELLS WITH UP TO 25 FRAC STAGES (OPEN-HOLE PACKERS AND CEMENTED PORTS) 2 of 4 new wells Additional Lower Montney wells with 20 mmcf/d initial production longer laterals, reduced frac spacing and cemented ports are…
LIQUIDS RICH MIDDLE MONTNEY WELL PERFORMANCE IMPROVEMENTS SINCE 2011 2015/16 Middle Montney wells with frac design changes including 20 frac stages and cemented ports to be evaluated 19 total Middle Montney wells on-production across…
TOP QUARTILE GLACIER MIDDLE MONTNEY WELLS Wells are exceeding current type curves Ongoing delineation identifies sweet spots within different Middle Montney layers. Frac designs are tailored to further optimize results. 12-2…
ROBUST GLACIER MONTNEY WELL ECONOMICS Upper & Lower Montney Middle Montney (Dry Gas) (50 bbls/mmcf(1) C3+, 45% C5+) Advantage achieved 20% DC & E well cost reduction with 35% increase in frac count 83% 82% 62% 61% Type…
GROWTH BEYOND 400 MMCF/D CAN BE ACCOMMODATED ON EXISTING PLANT SITE 100% Owned Glacier Gas Plant Positioned for Production Ramp-up Advantage Gas Plant Room for Additional Expansion To be expanded from Alliance Sales Gas Beyond 400…
Clear Vision for Growth Financial Strength Proven Expertise
APPENDIX 24
GLACIER GROWTH PLAN DETAILS 16% ANNUAL AVERAGE PRODUCTION GROWTH 2017 TO 2019 Annual Average Production (mmcfe/d) 316 Development Plan (1) 272 2016 2017 2018 2019 Actual + Budget Estimate Estimate 236 Estimate 202 Production…
IMPROVING WELL PERFORMANCE AND LOWER WELL COSTS THROUGH DRILLING & COMPLETION TECHNOLOGY Recent TOP Quartile Wells (1) Well Costs Reduced ( millions) Increasing frac count has improved long term production performance in all layers…
CONTINUOUS IMPROVEMENT HAS CREATED INDUSTRY LEADING EFFICIENCIES 27
UPPER AND LOWER MONTNEY WELLS - IMPROVING PERFORMANCE SINCE 2008 Newer wells restricted for frac sand flow back Budget Type Curve (IP30 7.5 mmcf/d & 7.5 Bcf) Data: updated to November 2016 28
EXCEPTIONAL UPPER & LOWER MONTNEY WELL (1) ECONOMICS Upper & Lower Montney Dry Gas (2) Budget Type Curve. Some recent Upper & Lower Montney wells are outperforming type curve (3) (1) Management estimates. NPV 10%…
EXCEPTIONAL EAST GLACIER MIDDLE MONTNEY WELL (1) ECONOMICS Middle Montney at 50 bbls/mmcf C3+ (2) Budget type curve. Some recent MM wells are exceeding type curve. (3) (1) Management estimates. NPV 10% pre-tax (2) Capitalof…
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Interval Developed Undeveloped TOTAL Developed Undeveloped TOTAL YE YE YE YE YE YE YE YE YE YE YE YE YE YE…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Up…
2012 CORE AND COMPLETION STUDIES: INCREASED RESOURCE AND IMPROVED WELL RESULTS Core study determined original density porosity logs have to be re- calibrated IP30s on open hole Re-calibration aligned log to actual wells improved by…
ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on NYSE and TSX: AAV Advantage Oil & Gas Ltd. Suite 300, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main:…
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