Market Facts Trading Symbols TSX GXO OTCQX GXOCF Monthly Dividend Per Share () 0.035 Financial Highlights Market Capitalization (MM) As at closing 08/08/2017 155 Credit Facility (MM) 60 Net Debt (MM)* 36 Net Debt : Annualized…
Granite Strategy Focus on creating long term shareholder value and returns from a top tier oil resource How Organically ourselves 100% ownership in everything Maximize oil recovery Under a full-scale, highly effective and proven…
Granite Asset Top-Tier Oil Asset Company-estimated 200 million barrels of conventional original oil in place (OOIP)(2) under full scale Gas Injection Enhanced Oil Recovery (EOR) Scheme with a large, high-impact drilling…
Building a Free Cash Flow Machine Look After it from the Beginning Managing for the Long-Term 200 mmbbls(2) discovered and delineated with only 2.5% recovery to date Gas injection EOR tested, optimized and fully established All…
Maximizing Shareholder Value and Returns Development & Measured Growth Production Maintenance & Capital Wind Down to a Low Decline 4,000 25.00 3,500 20.00 3,000 Average Daily Production (bbl/d) 2,500 Free Cash Flow…
20 Year Drilling Inventory 33 Sections LEGEND Gas Injection Well Producing Oil Well Potential Future Gas Injector Future Drilling Location Existing EOR Approval Area Future EOR Expansion Area Capital Per Well Total…
Relentless Cost Reductions Engineering-Driven and Permanent 2014 2015 2016 2017 6.00 Avg = 3.72 MM Avg = 2.67 MM Avg = 1.36 MM Avg = est. 1.25 MM 5.00 Drilling and Completion Cost (MM) 4.00 3.00 1.25 million drill…
Original EOR Area Case Study: Figuring it Out Before Drilling it Up EOR Expansion & Full-Scale Development / Recovery 5.0 1800 Infill Development 4.5 1600 Pilot EOR 4.0 1400 Primary Decline 3.5 EOR 2.5 Section Case Study…
Improved Recovery with Gas Injection EOR Historical Bakken Producing Wells EOR Non-EOR Average Well Average Well Number of Wells 15 40 Average Horizontal Well Length (m) 1283 2521 EUR (mbbl) 234 190 Barrels Per Horizontal Meter…
Dropping the Cost of Adding Producing Barrels 30.00 26.13 24.33 25.00 19.45 D & C Capex per Barrel of Booked 20.00 21.29 19.37 Reserves (/bbl) (5) 15.00 16.23 13.60 9.98 10.00 11.29 9.00 8.44 8.00…
2014 2015 2016 Improving Efficiencies Average Total Capex per Well (MM) 3.7 2.67 1.36 Increased Recovery and Lower Capital Average WTI (USD/bbl) 93 49 42 Operating Netback (CAD/bbl) 44.64 24.73 20.74 EUR (mbbl) 268 238 196 600…
Continuing to Improve 2016 Wells TYPE WELL ECONOMICS (4) All-In Capex: 1.2 MM EUR (TPP): 196 mbbls 500 Capital Efficiency IP365 : 11,000/bbl Horizontal Length: 1,100 m Year One Average: 108 bbl/d Royalty: FH Sliding 5-30% 450…
Summarizing Organic Improvement 200 1000 25.0 182 178 180 900 860 822 D & C Capex per Barrel of Booked Reserves (/bbl) (5) Capex Per Meter Drilled & Completed (/m) 160 800 20.0 General and Administrative Cost…
Expanding Inventory of Development/Exploration Opportunities Finding the Next One A Growing Pool with Significant Exploration Potential: Acquired 50,000 net acres of additional strategic Bakken lands in 2016 3 mm/year of high…
Gas Injection Enhanced Oil Recovery
Maximizing Recovery and Capital Efficiency Produced gas is re-injected into the oil reservoir to replace production voidage and provide pressure support for producing oil wells Gas injection is the ideal EOR method for Granites…
Gas Injection EOR Process Dry Make-up Gas Compressor Compressed Gas Re-injected Separator 25% CO2 Produced Gas Produced Oil + Gas Oil to Sales EOR Basics Injected gas in the top of the reservoir increases/maintains…
Optimizing Drilling for Long-Term Drainage Oil Production Gas Injection 10 m Gas Injected into the Top of the Reservoir Increases Pressure and Oil Mobility Limestone Cap Infill Production Wells at the base of the…
Prioritizing Pool Re-Pressurization Through 1H 2016, GXO focused its resources on pressure maintenance and EOR expansion, which required the shut-in of approximately 290 bbls/d of oil production as nine producing wells were…
EOR Case Study Example: Proving the Most Efficient Drainage 140 10,000 9,000 120 8,000 100 7,000 Injection Volume (mcf/d) Oil Production (bbl/d) 6,000 80 5,000 60 4,000 40 3,000 2,000 20 1,000 0 0…
EOR Case Study Example: Optimizing Gas Injection 250 7,000 6,000 200 5,000 Oil Production (bbl/d) 150 4,000 3,000 100 2,000 50 1,000 0 0 0 50 100 150 200 250 300 Days on Production…
Gas Injection Upside: Swanson River Oil Pool Analog Discovered in Apr. 1957; Drilling development largely completed by 1963 with 55 completed wells Gas injection pilot program started in 1962 in response to rapid pressure declines;…
Responsible and Efficient Operator Produced solution gas containing 25% CO2 is recycled and reinjected into the reservoir, diverting an estimated 18,900 tons of CO2(5) CO2 from the atmosphere per year - improving oil recovery…
The Team
Granite Oil Corp.s Team Management Team Michael Kabanuk President and Chief Executive Officer Michael is a Professional Engineer with 23 years of engineering and management experience in the oil and natural gas industry. Prior to…
Granite Oil Corp.s Team Board of Directors Brendan Carrigy Chair Kevin Andrus Martin Cheyne Michael Kabanuk Henry Hamm Dennis Nerland Bradley Porter Kathy Turgeon G R A N I T E O I L C O R P. T S X : G X O 28
Appendix
Go-forward Capital Focus: Development Drilling Land Workovers Land 3% Facilities 3% 0% Workovers 7% 3% Facilities 20% Drilling + Completions 74% Drilling + Completions 90% 2016 2017 & Forward G R A N I T E O I L…
Capital Budget 2017 Guidance 2017 CAPEX (MM CAD) 17.2 2017 Production (boe/d) 2900-3000 Monthly Dividend Per Share (CAD) 0.035 Exit Net Debt (MM CAD) 36.6 G R A N I T E O I L C O R P. T S X : G X O 33
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