SUSTAINABLE CONVENTIONAL RESOURCE COMPANY TSX: SGY MAY, 2017
REASONS TO OWN SURGE 100% operated, high quality, low decline asset base Experienced management team with proven track records High quality light/medium crude oil asset base; low decline < 25% Year end 2016 NAV of 5.47 per share…
OUTSTANDING RESULTS Continuing to execute a strong and sustainable business plan Over the previous four quarters Surge management has delivered: Three upward revisions to production guidance; 24% growth in production/share from…
FUNDAMENTALS OF SUSTAINABILITY - SHAREHOLDER RETURNS The foundations for sustainability and the assets to deliver low to mid-teens annual returns Cashflow Capital Netback Efficiencies Decline CAD 24.50/…
REVISED GUIDANCE APRIL 2017 Generating excess free cashflow at US55 WTI 2017 Guidance at US55 WTI(1) OPERATIONAL 2017 Average Production (boe/d) 14,450 (81 percent liquids) 2017 Exit Production (boe/d) 15,150 (82 percent liquids)…
CASH FLOW SENSITIVITIES Production growth = compounding cash flow growth at higher oil prices 2H 2017 Annualized Cashflow Sensitivity to Changes in US WTI(1) 200.0 0.80 180.0 0.70 160.0 140.0 0.60 Cashflow per Share…
ELITE ASSETS FOCUSED IN THREE CORE AREAS Large OOIP pools in established conventional reservoirs Surge 2017(e) Avg Production: Total: 14,450 boe/d (81% Oil & NGLs) (57% on AB Crown) Western Alberta Production: Total: 6,100…
TARGETING CONVENTIONAL RESERVOIRS Surge focuses on reservoirs in the conventional end of the permeability spectrum Ultimate Oil Capital expenditures decrease, Recovery while recovery factors and ROR rates of return…
LARGE OOIP, LOW RECOVERY FACTORS 1.6 Billion bbls net OOIP with up to 227 Million net barrels remaining recoverable Drilling Locations Internally Estimated Ultimate OOIP (MMbbls) Gross/Net(2) Avg. CTD Oil Total Booked Independent…
THREE CORE CONVENTIONAL RESERVOIRS Applying proven technology to conventional reservoirs provides top tier performance and higher recovery factors U. Shaunavon Valhalla Doig Sparky Depth 1450m Depth 2000m Depth 725m Net Pay 4 - 10m…
TOP TIER CAPITAL EFFICIENCIES AND REPLACEMENT METRICS Large drilling inventory with excellent economics 55 WTI pricing 2017 Budget Areas/Formations Capital Internal EUR Core Drill/ Complete/ Payout(1) NPV10 / Locations Efficiency…
UPPER SHAUNAVON Large contiguous land position in the 2.0Bbbl Upper Shaunavon trend R21W3 R19W3 Instow T10 T8 Reference: Table above sourced from Discovery Digest Volume 4, 2016 Total Shaunavon production (Upper & Lower) is…
UPPER SHAUNAVON ACTIVITY 275MMbbl (265MMbbl net) OOIP on Surge lands in the Upper Shaunavon R20W3 R19W3 Shaunavon Type Log 15-25-005-20W3 T7 Upper Shaunavon A Sand Upper Shaunavon B Sand Upper Shaunavon C Sand T6 Lower…
UPPER SHAUNAVON PERFORMANCE Surge exceeding expectations in the Upper Shaunavon Upper Shaunavon - SGY Results vs Type Curve 250.0 Budget 2017 SHVN TC Rate Budget 2017 SHVN TC Cum 200.0 Sproule YE2016 Type Curve Rate Sproule…
UPPER SHAUNAVON WATERFLOOD RESPONSE Production flattening above type curve at 100 bopd after 18 months Upper Shaunavon SGY Type Curve vs 193/13-31-5-19W3 80 bopd increase to date due to waterflood response 250 100.0 13-31 EUR…
SOUTHEAST ALBERTA Provost / Eyehill / Wainwright areas Oil saturated Cretaceous sands Wainwright Alberta Sask 500 MMbbls of net OOIP (23-31 API oil) Current recovery factor of 13% (value is skewed to Betty Lake the high side due…
SPARKY UNDER-DEVELOPED COMPARED TO SIMILAR RESOURCE TRENDS Surge leading the pack with horizontal multi-stage fracs on the next big play Oil Play Comparison Alberta Sask Cum oil Recovery of Hz Avg. oil OOIP Play Prod Factor wells…
SPARKY EYEHILL ACTIVITY 100MMbbl net OOIP estimated in the Sparky at Eyehill R3W4 R2W4 Eyehill - Sparky Type Log 06-14-037-03W4 Sparky Sands 06-14-37-3W4 Type Log T37 Recently drilled and completed 16 Sparky horizontals…
SPARKY PERFORMANCE Sparky play exceeding expectations Eyehill SPKY - SGY Results vs Type Curve 120 SGY Wells Normalized Rate (16 Wells) SGY Wells Avg. Cum Production Rate (bopd), Cumulative Oil Production (mbbls) Type Curve…
NORTHWEST ALBERTA Large OOIP 615MMbbls net in concentrated high quality light oil reservoirs Large OOIP of 736 (615 net) MMbbls of high quality light oil (32-40 API) Valhalla Large development inventory of OOIP: 280 mmbbl Nipisi…
NORTHWEST ALBERTA - VALHALLA Working interest ownership in key facilities, and firm service agreements for Alliance and TCPL pipelines mitigate production restrictions Valhalla Doig 150 MMbbls of net combined OOIP on Surges Sexsmith…
POSITIONED FOR LONG TERM SUSTAINABILITY Low base…
HIGH QUALITY CRUDE OIL ASSET BASE Focused, high quality, crude oil asset and opportunity base; 3 core areas are 100% operated, with working interests of 90% Large OOIP crude oil reservoirs with low recovery factors; 17 year…
2016 YEAR END RESERVES 1.3 Billion of Total Proved plus Probable Reserves Value (NPVBT10) 2016 Year End Reserves(1) Surge replaced more than Oil& NGLs Gas Total NPVBT10 Reserve Category (Mbbl) (MMcf) (Mboe) (MM) (2) 130% of 2016…
NET ASSET VALUE - 5.47 PER SHARE Strong NAV supporting per share value SURGE 2016 NAV 2P Reserves Value (MM)* 1,301 Undeveloped Land 96 and Seismic (MM)** Estimated Net Debt (MM) (162) (unaudited) Basic Shares Outstanding…
OIL HEDGING Significant percentage of 2017 production protected with a floor of over C65 WTI 5,500 85.00 5,000 75.00 4,500 Weighed Average Floor Price per bbl (C WTI) 4,000 65.00 3,500 bbl/d of C WTI Hedged 55.00…
RISK MANAGEMENT / HEDGING STRATEGY 2017 ONWARDS The Company has an orderly, on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capital program and fund dividends. Below is a list of…
RISK MANAGEMENT / HEDGING STRATEGY 2017 ONWARDS The Company has an orderly, on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capital program and fund dividends. Below is a list of…
ANALYST COVERAGE Financial Institution Analyst Email Address Acumen Capital Partners Trevor Reynolds treynoldsacumencapital.com BMO Capital Markets Ray Kwan ray.kwanbmo.com Canaccord Genuity Anthony Petrucci apetruccicanaccordgenuity.com…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bank of Montreal Bankers Syndicate: ATB Financial HSBC Bank Canada Wells Fargo Goldman Sachs BDC…
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