OUTLINE 1. Company Strategy & Overview 2. Condensate-Rich Montney 3. St. Lawrence Lowlands 4. Oil Shale 5. Outlook 2
COMPANY STRATEGY Leverage extensive tight rock/shale rock expertise to acquire resources early and high grade to prove up reserves Understanding the rocks to capture the economic sweet spot (4% of acreage with the best economics)…
ASSET OVERVIEW SE Saskatchewan/ SW Manitoba Proven Torquay/Spearfish tight oil production with strong netbacks Western Alberta Condensate-rich Montney natural gas resource play with excellent economics Kingdom of Jordan Significant…
FINANCIAL & OPERATIONAL OVERVIEW Operating and Financial Results Capitalization and Liquidity For the quarter ended June 30, 2016 Working Capital Deficit () (1) 23 million (Sept. 8, 2016) 58 million Cash Flow from operations ()…
CONDENSATE-RICH MONTNEY Montney play is approximately 500 km long by 200 km wide One of the largest oil and gas fields in world 449 TCF of marketable gas, 14.5 billion barrels of NGLs and 1.12 billion barrels of oil(1) Gas,…
THE SWEET SPOT Sweet spot of the play is overpressured, liquids-rich area High liquids, particularly condensate key to strong play economics Wapiti Questerre has built a significant land position in the sweet spot of this fairway…
2015/2016 RESULTS Successfully high-graded resource with high value reserves Proved plus probable reserves of 11.16 MMboe (as at December 31, 2015) with NPV-10 of 77.64 million(1) Improvements in drilling, completions and IP rates…
MOVING UP THE LEARNING CURVE Seeing benefits of learning curve with improvements in drilling Recent 1.5 mile well (16-20) with lateral of 2100m drilled in 40 days compared to first 1 mile well (13-17) with lateral of 1600m in 64…
MOVING UP THE LEARNING CURVE Evolving completion designs suggesting meaningful improvements in IP rates Most recent wells with one year of production completed with 85 stage fracs as compared to first well with 15 stages 10
WELL PERFORMANCE & ECONOMICS 19 wells drilled and tested on joint venture acreage at rates of 1,000 to 2,500 boe/d (1) Condensate rates (Bbls/MMcf) have remained stable Operator installing gas lift to improve uptime NPV-10% Per Well…
RUNNING ROOM Significant number of drilling locations with JV operator accelerating development in 2016 Over 70 gross (17.5 net) drilling locations remaining on joint venture block(1) 90% have laterals of 1.5 miles (2300m…
2016 CAPITAL INVESTMENT Focused capital program in 2016 of up to 11 million 5 million - Participated in 2 (0.5 net) wells to Q2 2016 one on production and one being completed 5 million - Participating in up to 2 (0.5 net) additional…
ST. LAWRENCE LOWLANDS Approximately 50% shallower than Montney formation Premium gas market - Natural gas prices 2X prices of Western Canada New CERI report estimates Utica in Quebec could be second lowest supply gas cost in…
UTICA DEVELOPMENT IN US EXCEEDS EXPECTATIONS Utica production has grown to approx. 3 Bcf/d (20% of Canadas total production) in nearly 3 years with well test rates over 30 MMcf/d (1) Utica rock properties in Quebec similar to Utica…
IMPROVING REGULATORY ENVIRONMENT Quebec Government announces new energy policy and draft legislation Recognizes importance of natural gas as a transition fuel Supports exploitation of local oil and gas within limits Original BAPE…
OIL SHALE Major resource with potential for commercial development Estimated 2.8 - 3.1 trillion barrels in place worldwide(1) Questerre is focused on its very high yield acreage in Jordan Jordan host to one of the top 10 oil shale…
OUTLOOK Increasing capital investment for Montney to capitalize on prices and results to date Government and public relations work in Quebec focused on developing new hydrocarbon legislation and regulations Assess Jordan oil shale…
MANAGEMENT & BOARD Board Management Michael Binnion, President & Chief Executive Officer Michael Binnion, President & Chief Executive Officer Bjorn Inge Tonnessen, Chairman John Brodylo, VP Exploration (Nexen) Oil & gas E&P experience…
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