Corporate Presentation on our way TSX: JOY March 2017
Key Themes for 2017 Growing cash flow forecasting over 60% growth in cash flow from 2016 to 2017; cash flow growth continues into 2018 Growing production modest production growth while spending less than 80% of cash flow…
Corporate Overview 8,500 boe/d, 49% liquids (1) increasing to 8,800 -9,200 boe/d, 52% liquids for 2017 43.7 MM basic shares 46% insiders; 37.4% Maple Investments 50MM drawn on 90MM credit facility 85MM net debt including…
Core Areas (Along a Prolific Resource Fairway) We produce 8,500 boe/d from pools in our Resource Fairway Resource Alberta Fairway Shallow, low-risk development drilling in conventional oil pools Central Region Edmonton…
Reward with Less Risk Sustainable growth in 2017 grow within cash flow 54/bbl WTI and 2.65/mcf AECO Cheaper to buy it than build it 215MM enterprise value(1) ; 25,000/boed and less than 10/PDP boe Upside in value over time…
Journey Provides Investors with Growth, Value and Upside G U R V P O A S W L I T U D H E E Journeys low decline rates and high producing value provide security in uncertain times 8
Fueling Growth Experienced team to steward investments High producing value at historically low pricing PDP NPV 10% covers YE 2016 net debt by 2.9X Low decline asset base P+PDP RLI = 9.5 yrs; 2017 base decline of 18% 9
Sustainable Growth in Future Cash Flow Current Strip Pricing 2016 2017 Operating Highlights Estimate Forecast Production Average (boe/d) 8,800 - 8,700 9,200 Oil and NGLs (%) 53% 52% Corporate Decline Rate (%) 20% 18% Reference…
Hedging and Sensitivities Hedging Oil Contracts Volume Bbls/d Pricing point Strike price/Bbl Term Swap 1,000 WTI NYMEX C 60.00 Jan 1, 2017 to Dec 31, 2017 3 Way Collar 1,000 WTI NYMEX C 39.50 / C 60 / C 65 Oct 1, 2016 to March 31,…
2017 Capital Within Cash Flow Resource delineated by existing wells no expiry issues; no new lands required We operate and will scale capital to cash flow over 40MM of capital projects could be implemented in 2017 Multiple options…
How to make a Low Decline even LOWER 160 MM conventional 415 MM on waterflood 50 MM to JOY net barrels of be delineated and flooded OOIP by category 175 MM to be flooded 800 MM net barrels of OOIP 415 MM 385 MM convert…
Journey Provides Investors with Growth, Value and Upside G U R V P O A S W L I T U D H E E Journey trades at a significant discount to our peer group at a historically low oil price 15
2016 YE Reserves Summary Gross Company (WI) Reserves(1) Oil Gas NGL Reserve Category BOE RLI (Mbbl) (Bcf) (Mbbl) PDP 8,841 71.4 1,390 22,128 7.5 Total Proved 13,740 86.4 1,952 30,096 9.6 P+PDP 12,063 91.2 1,692 28,957 9.5 Proved &…
Finding, Development & Acquisition Costs For Period December 31, 2014 to December 31, 2016 2014 2015 2016 (3 Yr) Acquisitions and Divestiture Capital (MM) 167.6 6.6 (9.3) 164.8 Exploration and Development Capital (MM) 92.8 41.5 16.3…
Net Asset Value NPV 10% Net Asset Net Asset Value per Value Share P+P 528MM 157MM of FDC adds 212MM P+P P+P NPV10% of P+P 85MM 443MM 43.7 MM 10.13/share YE net debt O/S Shares Non-Producing P+PDP value 315MM P+PDP…
Reserves Value Journeys 167 million of P+P future development capital (FDC) is only 3.50/P+P boe, 75% of Journeys identified capital projects remain unbooked Journeys 157 million of P+P non-producing FDC adds 212 million of…
Journey Provides Investors with Growth, Value and Upside G U R V P O A S W L I T U D H E E Journey is built on a strong foundation of large OOIP reservoirs with low recovery factors 21
Remaining Resource Becomes Future Target 800 MM net barrels of OOIP 2.4% booked inventory 81.9% of oil left 18.1% ultimate behind recovery 2.5% unbooked Ultimate inventory 13.2% recovery to date Recovery Oil left behind…
Development Drilling Inventory Journey has identified 278 (net) horizontal oil drilling opportunities Horizontal Oil Well Drilling Locations(2) % Booked(1) in Total(3) Reserve Report Region Gross Net South 186 176 27% Central…
Future Growth is Driven by Economic Plays Our plays are valuable add 212MM in P+P Non-Producing NPV 10% with 157MM in FDC 506MM in unbooked inventory has the potential to more than double the value of the company Our future is…
Crystal New Discovery in Viking, Acquisition and Play Expansion Journey 9-30 Production vs. 5-18 Analog 450 100% Existing Journey Pipelines 400 90% 350 80% 70% Daily Oil Rate (bbls) Watercut (%) 300 5-18 oil (bbls/d)…
Skiff Sawtooth Drilling & Waterflood Development Section 8 Pattern Project Economics* Journey Operated: 100% WI Drill 3HZ, Convert 1HZ to Injection Recoveries in established portions of the pool exceed 30% of 54 WTI, 0.76…
Designed to Out Perform Security Defensive strategy positions the Company for recovery Value Trades at a discount to produce out value at historically low oil prices Upside Legacy pools will continue to grow in value with time and…
Appendix- Content Drilling inventory Alberta Central Region South Region Strong governance Edmonton Experienced management Calgary 29
Appendix - Central Region Drilling program currently planned for Crystal, Gilby and Cherhill in H2 2017 Horizontal Oil Well Drilling Locations(2) Booked(1) Unbooked(3) Property Formations Gross Net Gross Net Poplar Creek/…
Appendix - South Region Skiff Drilling in Q1 at Countess, Brooks and Skiff with follow-up planned for H2 2017 Horizontal Oil Well Drilling Locations(2) Booked(1) Unbooked(3) Property Formations Gross Net Gross Net Matziwin…
Appendix - Strong Governance Stephen Mulherin Chairman of the Board, Governance / Compensation Committee Chairman Partner, Polar Capital Company; Chairman of Veresen Inc., and Trimac Transportation Ltd. Howard Crone Independent…
Appendix - Experienced Management Team Alex G. Verge, P.Eng., M.Eng. President and Chief Executive Officer, and Director 34 years of experience: Five years as Director of Journey (four as CEO), President and CEO of NuVista Energy, VP…
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