CANBRIAM ENERGY INC. CORPORATE PRESENTATION MARCH 2017
Canbriam Energy An integrated, BC Montney natural gas growth company with differentiated resource quality Private company focused in the Altares region of the prolific Montney formation in northeast BC Montney trend Q4 2016…
Investing in Canbriam Energy Canbriams integrated approach supports low cost Montney development Prolific BC Montney asset Large, low risk, high return drilling inventory Integrated development strategy Low cost…
Canbriams Altares is located in the northern extension of the Montney The prolific BC Montney has significant well density and peer activity Montney trend Fort St. John Edmonton Vancouver Calgary Canbriam -…
Altares wells amongst highest deliverability in Northern BC Montney extension 12 & 24 month rates vs. cumulative production highlight over-pressured nature of resource 12 month cumulative production vs. rate (Q4 2016) 8,000 Northern…
Improving decline rates through downhole choke management Maintenance capital requirement is 50-60 million annually for 25,000 boe/d of production Production by well vintage 30,000 27% 2016 2015 2014 25,000 corporate 2013…
Significant reserves growth with high liquids content Canbriams 2P bookings reflect consistent well performance 2P Reserve growth (MMboe) 2P F&D costs & recycle ratio (1) 25 3.2 3.5 63 61 2.9 2.8 2.7 3.0 20 2.3 2.5 55 F&D…
Proven capability drilling in anomalously over-pressured Montney Canbriams Altares drilling requires underbalanced drilling with mud weights exceeding 1,800 kg/m3 Unique challenges in over-pressured Doig & Montney formations (18 22…
Efficiency gains tied to improved drilling & completion performance Cost efficiency tied to sliding sleeve technology, less intense completions & improved drill times Canbriam drilling, completion & tie-in costs by well (M) 14,000…
Evolution of completion optimization Completion efficiency improving through technology advancement & integrated technical approach Initial development Development phase Current design (2009 2012) (2013 2015) (2016 2017E) Plug &…
Optimized development spacing in 2016 Three Upper Montney & two Lower Montney layers at 300 meter spacing Previous development plan included 4 layers at 200 meters spacing Future Development Capital reduced by 16% in 2016 Liquids…
Type curve economics Main Fault Block Type wells demonstrate strong economic returns under different pricing scenarios Single well statistics Main Fault Block IRR sensitivity 140% Upper 115% Lower Montney 120% Well properties…
Infrastructure strategy supports large scale development Canbriam owns & operates all processing infrastructure North Altares infrastructure & pad locations 100% owned & operated infrastructure: Altares Processing Facility consists…
Altares Processing Facility: scalable to 400 MMcf/d Canbriam owns & operates all processing infrastructure Water treatment & recycling hub Commissioned March 2015 Phase 4: 120 MMcf/d Sanctioning to be determined Phase 3: 120…
Competitively advantaged in water sourcing, handling & disposal Integrated water strategy eliminates need to truck water Sourcing & distribution 80% 20 year permit (2011) to access 10,000 m3/day of fresh water from Williston Lake…
Marketing plan supports long term development Sufficient takeaway capacity to support near term requirements Spectra T North: 228 MMcf/d firm capacity Spectra T North Actively mitigating unused firm capacity Pembina Birch Block…
Four key elements to Canbriams financial strategy Disciplined approach to financial management Priority in 2017 to prudently 2016 capital spending funded managing spending with a through cash flow and bank lines continued focus on…
Managing Station 2 pricing in 2017 Active hedging, physical sales basis contracts & high heat content have optimized natural gas pricing High heat content natural gas(1) Regional price exposure 2017E(2) 3.00 2.50 13% Chicago…
Hedge positions & composition of total liquids production Actively hedging commodity price risk through disciplined risk management M GJ/d Natural gas hedges (at March 1, 2017) Liquids hedges (at March 1, 2017) 140 3,000 80 70.60…
Canbriam has demonstrated full cycle value Canbriams low cost structure & prudent risk management have supported full cycle returns Low cost business model supports value creation Return on capital employed(1) Operational…
Investing in Canbriam Energy A fully integrated, natural gas growth company with differentiated resource quality Prolific EUR/well with 1,100 of Montney vertical thickness on 62,000 (50% liquids rich) net acres 225.6 MMboe of gross…
SUPPLEMENTAL INFORMATION 23 Canbriam Energy Corporate presentation
Canbriam has the foundation for long term value creation Our approach is defined by three key elements Resource Innovation Collaboration Montney is a world class reservoir Canbriams success is tied to early Team approach fosters…
Differentiated resource quality in the BC Montney Four key attributes that differentiate the Altares Montney 1. Over pressured reservoir Up to 2 times over pressured within Main Fault Block Downhole choke strategy enhances EUR,…
Differentiated resource quality in the BC Montney Four key attributes that differentiate the Altares Montney 2. Subsurface compartmentalization Leads to distinct high pressure regions with consistent well results North Fault…
Differentiated resource quality in the BC Montney Four key attributes that differentiate the Altares Montney 3. Significant thickness 4. Strong liquids component Five commercial intervals 2017E liquids yield: 30 barrels per MMcf…
Development plan includes five commercial intervals Three Upper Montney & two Lower Montney layers at 300 meter spacing 7 Tested zones C5 Commercial Upper Intervals1 & 2 C4 C2 Commercial Interval 3 T1 300 m…
Optimizing completion design Migration to pinpoint cemented sliding sleeve technology has resulted in more efficient placement of sand Well count by completion type 20 19 Migration towards sliding sleeve technology 18 driven by:…
Stable production history with strong liquids content Canbriams production growth reflects addition of phases 1 & 2 of the Altares Processing Facility in 2015 Production history (MBoe/d) 45 Oct 2015: Phase 2 of Altares Processing…
Optimizing well performance through choke management strategy Canbriams use of downhole chokes optimizes its over-pressured reservoir Altares c-B27-H well - Upper Montney Advantages of downhole chokes: 15.0 30,000 Minimizes 1st…
Development plan focused in the prolific Main Fault Block Canbriams Main Fault Block is substantially de-risked and represents the majority of the next 5 years development Daily Raw Gas Production by Well Upper Montney Development…
Stable production history with strong liquids content Canbriams production growth reflects addition of phases 1 & 2 of the Altares Processing Facility in 2015 250 Inlet Sep Natural gas production 40,000 Boe/d capacity 200…
Canbriam Energy leadership Team built specifically for exploration & development of unconventional gas resource Paul Myers Founder and CEO since company inception in 2008 President and Chief Diverse 30 year career in various…
Historical financial summary Financial performance reflect improving cost structure and production growth Average production 26.6 Adjusted EBITDA(1) 144.0 (Mboe/d) (C millions) 17.9 87.8 83.0 66.0 9.6 7.8 4.3 23.0 2012 2013…
Composition of revenue stream between natural gas & NGLs Disciplined risk management & active hedging program have supported realized prices Revenue by product: 2014 Q4 2016 (/boe) 40.00 36.24 30.00 26.65 24.21 22.38 22.28…
Supplemental reserves information 2016 Independent reserves evaluation completed by McDaniel & Associates Reserves Reconciliation(1) Proved Probable Proved + Probable Natural Gas NGLs Total Natural Gas NGLs Total Natural Gas NGLs…
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