Teine Energy Growth oriented private company focused on acquiring and developing large, low cost, high quality oil assets Current asset suite Viking light oil 21,000 boe/d Bakken low decline waterfloods 7,000 boe/d Largest Viking…
Saskatchewan Based Concentrated world class asset suite with years of self funding growth Alberta Saskatchewan Bakken Heavy Oil Teine Land 7,000 boe/d 18 miles MONTNEY CARDIUM VIKING Heavy BAKKEN VIEWFIELD BAKKEN…
Growth Driven Shareholder Focused Measure growth on a debt adjusted per share basis and use a conservative approach to booking future development capital Avg. Production (boe/d) 2P Reserves (mmboe)(2) 30,000 125 30% 10% 114…
Infrastructure Advantage Positioned for low cost growth Teine seeks to own, control and operate strategic infrastructure to reduce down time, increasing Enbridge Main Line field manpower efficiency, and improve long-term netbacks,…
Corporate Capital Efficiency Declining DCET costs, completion of infrastructure build, and enhanced well performance = consistent improvement in capital efficiency Corporate Capital Efficiency(1) (C / exit boe/d) 15,000 31,000 /…
Key Cost Drivers Continuous improvement on controllable costs strive to generate more profit per barrel Operational Metrics(1) 2013A 2014A 2015A 2016E Heavy Oil Impact 3.96 G&A 2.61 3.32 72% 1.10 3.93 Transport 2.24…
FD&A Performance PDP FD&A is more representative of replacement cost (depletion) vs. 2P FD&A. Future 2P growth will be consistently achieved through our 15 year inventory of high quality de-risked locations PDP FD&A Recycle…
Financial Discipline Consistent approach to protect the balance sheet and maintain flexibility/liquidity 2017E growth program fully funded by cash flow at US50/bbl WTI Current bank line of 475 MM 40% drawn 12-24 month hedging…
Oil Market Pricing Ample egress and benefiting from the Canadian dollar C Pricing per barrel 120 C WTI Cdn Light Sweet (40 API) WCS Heavy (20.5 API) 100 80 Avg. Diff 60 8% 40 Avg. Diff Teine Viking light oil…
2017 Capital Program Focus remains on Viking light oil development, while testing attractive heavy oil and EOR opportunities 2017 Capital Allocation 300 Viking horizontal development wells with flexibility to increase or decrease…
12 Viking Light Oil
Viking Light Oil Leading North American low cost oil play shallow depth, low water production, low gas ratio US WTI Half-Cycle Oil Breakeven(1) Teines Viking Permian Basin 63.48 Light Oil 60.59 59.65 57.07 52.08…
Viking Light Oil Dominant land and infrastructure position Dominant land position 0.9 million gross / 0.8 million net acres Largest Viking light oil producer at 21,000 boe/d Play expertise Teine has drilled 1,000 Hz wells to…
Viking Light Oil Historical Well Performance Consistent execution 2016 drill program was broadly distributed across entire land base showcasing Teines depth of high quality differentiated Viking inventory 120 Standard Length Wells…
Viking Extended Reach Horizontal Increasing efficiency throughout the entire play with the potential to increase well inventory within sub Tier 5 acreage 180 2016 Program 160 17 wells showing promising early results despite…
Viking Horizontal Well Cost Trends Doing more for less despite overall sand tonnage and stage counts increasing to improve IPs, overall costs are down due to cheaper sand, service cost reductions and design improvements Standard…
Saskatchewan Viking OOIP Shallow deposit with significant oil in place per section 50 55 mbbl of recoverable oil per well, development requires 30 wells per section to attain full primary recovery. Infill wells will benefit from…
Teine Viking 20-acre Pilot Program Results to date have been successful and significantly de-risks the concept throughout much of the play 200 LEGEND 2015/2016 Dodsland Pilot Program Red Line Sproule Tier 5 180 Green Line avg.…
Viking Light Oil Inventory 15 year high quality inventory 5,000 repeatable, low-risk Hz Viking oil locations 80% of land base has been de-risked Teine Inventory Map Teine Inventory Tier 5 or greater 5,000 4,000 Ave Tier: 5.1…
21 Bakken Heavy Oil
Bakken Heavy Oil Low viscosity oil is ideal candidate for water and polymer flooding, driving low declines and free cashflow Over 1 billion BBL OOIP with less than 12% recovery 98% under water flood amenable to waterflooding due to…
Bakken Polymer Flood Coleville polymer flood exhibits excellent prodn efficiencies and low F&D costs while mitigating corporate decline 2011 pilot demonstrated consistent increased production Plan to initiate Phase 1/2/3 in H1…
Heavy Oil Sustainability Torque to oil price recovery, optionality to further fund Viking light oil development or grow heavy oil Stay-Flat Cash Flow at Various WTI Illustrative analysis of 80 forward year cash flow Stay-flat…
25 Summary
Resource World class, low cost oil resource driving long term, low risk growth 6 Billion bbls Estimated Oil in Place within Teine Lands Remaining Recoverable Oil Remaining Recoverable Oil = 675 mmbbl 2015E YE 2P Reserves…
Teine Competitive Advantage World class oil deposit with significant OOIP and scalability Predictable and significant growth with low-risk capital programs Low Cost Built to withstand ongoing oil market volatility Solid track…
Corporate Information Board of Directors Bankers Avik Dey Chair Dennis Chorney Vice-Chair National Bank of Canada, Syndicate head Jim Howe Nicholas Zelenczuk Wilmington Trust, Bond Administrator David Chambers Jason Denney…
Management Team Jason Denney, P.Eng President & CEO 20+ years, previously COO of Teine (management roles with Encana, operational roles with Murphy Oil) Ken Hillier, CA SVP & CFO 30+ years (CFO Angle Energy, CFO C&C Energia, CFO…
32 Appendix
Teine Viking Well Economics Type Curve IRR Sensitivities - Standard Length Wells (1)(2)(1)(2) Assumptions WTI (US/bbl) 59.70 40.00 45.00 50.00 55.00 60.00 65.00 Dec 13 Strip Fixed Operating Cost (/month) 2,000 DCET Cost (C000s) 630…
Debt & Hedging Summary Senior Bank Facility Facility Covenants HY Note C475 MM secured banking Covenant 1: < 3.0x senior US350 MM unsecured note facility debt / 4 quarter trailing Principal and interest Increased from 250 MM EBITDA…
Cash Returns Teines high quality production and low cost structure delivers one of the most profitable bbls in Canada EBITDA per boe(1) 28 Teine 25 24 24 22 22 21 20 18 16 16 16 16 14 14 14 14 13 13 12 12…
Penn West Asset Acquisition Overview Transaction Overview & Rationale Asset Map Acquisition of Penn West southwest Saskatchewan oil acreage, primarily focused on the core Viking light oil Teine Pre Acquisition Land Base acreage PWT…
Viking Light Oil Waterflood Potential Economic success will be area specific and is dependent on adequate porosity and permeability. However, Teine lands within the identified area exhibit some of the highest porosity and permeability…
2015 Pro Forma Reserve Composition Summary Commodity Composition Reserves Btax Light Oil Heavy Oil NGLs Gas Total FDC NPV10% 114 mmboe 2P 85 mmboe Proved mmbbls mmbbls mmbbls bcf mmboe CMM CMM 11% 10% PDP 26 24 1 34 56 8 918 2% 2%…
E&P High Yield Outperformance JPM HY Index JPM HY E&P Index Teine Energy 6.875% due 2022 23.0% 21.0% 19.0% 17.0% 15.0% 13.0% 11.0% 9.0% 7.73% 7.0% 6.92% 6.58% 5.0% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16…
Corporate History June 2010 November 2011 November 2011 December 2012 January 2013 May 2013 September 2014 June 2016 US300 MM C155 MM equity Second Lien Term Closed US350 Closed 975 MM Acquisition of Company Founded C204 MM…
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