Corporate Snapshot & Select Guidance Q1 2017 average production 61,662 boe/d Estimated 2017 annual average production 70,000 74,000 boe/d % oil and NGL 23% Estimated Q4 2017 annual average production 80,000 82,000 boe/d % oil and…
Q1 2017 HIGHLIGHTS Record quarterly average production of 61,662 boe/d, a 47% increase from 41,958 boe/d in Q1 2016 Cash flow of 67.6 million (0.26/basic common share), a 227% increase from 20.7 million (0.14/basic common share) in…
INVESTMENT HIGHLIGHTS Focused assets in the Peace River Arch Area of Alberta (the Montney/Doig Resource Play and the Charlie Lake Light Oil Resource Play) Essentially 100% working interest; 99% of production is operated Large,…
FIVE YEAR PLAN(1) 140,000 125,000 Approximate Annual Average 120,000 110,000 105,000 Production (boe/d) 100,000 91,000 80,000 72,000(2) 60,000 40,000 20,000 0 2017E 2018E 2019E 2020E 2021E Approximate…
KEYS TO SUCCESS Executives with proven track record, continuity since inception and significant ownership Management Highly experienced Management Team with excellent technical knowledge and a long history with the company 316 (310.7…
PRODUCTION HISTORY 80,000 70,000 74,000 70,000 Average Production (boe/d) 60,000 Compound annual growth of 30% per year since 2005 49,236 50,000 38,950 40,000 33,734 30,000 25,829 22,802 20,000 18,136 13,079…
CORPORATE RESERVES 1,000,000 PDP TP 880 MMboe 900,000 2P 800,000 On a per share basis PDP, 1P and 2P 700,000 reserves have increased at a compound annual growth rate of 14%, 22% and 23% Reserves (Mboe)(1) 600,000 per year…
CORPORATE NPV10 (BT) 7,000 PDP TP 5.8 Billion 6,000 2P PDP and 2P NPV10 (BT) increased by 5,000 66% and 50% year over year, respectively 4.1 Billion NPV10 (million) 4,000 3,000 1.9 Billion 2,000 1,000 0…
PROVEN TRACK RECORD AS A LOW COST PRODUCER 5 Year Profitability Breakdown: 2012 2013 2014 2015 2016 Average Average AECO (CAD/GJ) 2.27 2.99 4.27 2.55 2.05 2.83 Average WTI (USD/bbl) 94.21 97.97 92.99 48.80 43.32 75.46 P&NG Revenue…
2016 ACCOMPLISHMENTS Completed the acquisition of significant petroleum and natural gas properties and related assets located in the Gordondale area of Alberta for a purchase price of 613.5 million, after final adjustments (the…
LOOKING FORWARD 2017 Plans & Beyond
2017 CAPITAL PROGRAM 2017 CAPITAL BUDGET: 355.0 MILLION Net Capital Gross Wells Net Wells (millions) Drilling & Development Pouce Coupe - Montney D1 HZ Gas Wells 22.0 22.0 86.1 Pouce Coupe - Basal Doig/Upper Montney HZ Gas Wells 7.0…
2017 CAPITAL PROGRAM The 2017 Capital Program reflects Birchcliffs long-term plan of the continued exploration and development of Birchcliffs low-cost natural gas, crude oil and liquids-rich assets on the Montney/Doig Resource Play…
BORROWING BASE DETAILS Birchcliff has extendible revolving credit facilities in the aggregate principal amount of 950 million, which are comprised of an extendible revolving syndicated term credit facility of 900 million and an…
MONTNEY/DOIG RESOURCE PLAY A Significant Position in a World Class Play
MONTNEY/DOIG - A WORLD CLASS RESOURCE PLAY Resource density. Stacked resource up to 300 metres thick. Large areal extent. Extends over 50,000 square miles. Exceptional fracability. Low clay Birchcliff Montney/Doig content, low Poissons…
MONTNEY/DOIG MINEROLOGY LEADS TO EXCELLENT FRACABILITY The Montney/Doig Resource Play rock type is composed of a Some other Resource Plays have a high percentage of clays high percentage of hard minerals, and a low percentage of and…
BIRCHCLIFF MONTNEY/DOIG The Gordondale Acquisition adds a fourth commercial development interval in the Montney D2 Large contiguous land base with 441 sections prospective for the Montney/Doig as at December 31, 2016 Birchcliff…
PROXIMAL TO INFRASTRUCTURE WITH LONG TERM EXPOSURE TO LNG EXPORT Montney/Doig Birchcliff Pouce Coupe Production Montney/Doig & PC Gas Plant Owned Infrastructure PC Gas Plant Nova Pipeline System North American Market…
POUCE COUPE OVERVIEW Proven asset in development phase Wells show high initial deliverability, low terminal decline and stable long 2017 February 8th Montney D1 Test Results term production Predictable results with improving rates…
2017 FEBRUARY 8TH POUCE COUPE TEST RESULTS The table below sets forth the recent test results from Birchcliffs two Montney horizontal natural gas wells drilled in the Pouce Coupe area as a part of our budget expansion in Q4 2016…
POUCE COUPE LOWER MONTNEY (D1) PERFORMANCE VS. TYPE CURVE 7,000 6,000 Deloitte Tier 0 Type Curve IP (un-choked): 6.9 MMcf/d 5,000 IP (choked): 4.0 MMcf/d 2P Reserves: 8.2 Bcfe(1) Gas Rate (Mcf/d) 4,000 3,000…
GORDONDALE ACQUISITION HIGHLIGHTS Completed the Gordondale Acquisition on July 28, 2016 for a purchase price of 613.5 million, after final adjustments Consolidated a sizeable and contiguous land base within Birchcliffs existing…
GORDONDALE BASE PRODUCTION HISTORY Montney D2 40,000 discovery well 2015 2014 Last well drilled in 2014 (on-stream 2015) 2013 2012 with peak production of 35,000 boe/d 35,000 2011 2010 2009 2008 and Earlier 30,000 AltaGas Deep…
GORDONDALE OVERVIEW Drilled 6 (6.0 net) Montney horizontal oil and natural gas wells in 2016 including three Montney D2 oil wells 2017 February 8th Montney D1 Test Results and three Montney D1 natural gas wells Early results from…
2017 FEBRUARY 8TH GORDONDALE TEST RESULTS The table below sets forth the recent test results from Birchcliffs first six Montney horizontal wells drilled on the Gordondale Assets in Q4 2016 Preliminary results are meeting or exceeding…
GORDONDALE KEY INFRASTRUCTURE Key Natural Gas Processing Infrastructure Existing infrastructure has already AltaGas Gordondale CNRL Progress Sour Deep Cut Gas Plant Sour Shallow Cut Gas Plant supported peak production of…
ELMWORTH DEVELOPMENT Received regulatory approval for an acid gas injection well in August 2016 Preliminary planning underway for a Second Exploration 100% owned and operated 40 Horizontal MMcf/d natural gas processing plant;…
CONCEPTUAL MONTNEY/DOIG FIELD DEVELOPMENT MODEL STATUS OF MODEL CALLIBRATION AND DERISKING FACIES & PETROPHYSICAL GEOLOGICAL, GEOPHYSICAL, GEOMECHANCAL HYDRAULIC FRAC & MICRO SEIS. RESERVOIR MODEL OPTIMIZED DCC & PRODUCTION BASAL…
POUCE COUPE DRILLING PERFORMANCE Drill Cost Efficiency Yearly Average Drill Speed ( Spud Rig Release) 700 300 650 250 600 550 mD/Day /mD 200 500 450 150 400 35% decrease in /mD from 2007 Drilling twice as fast as…
POUCE COUPE LOWER MONTNEY (D1) CORE AREA COMPLETION EVOLUTION Completion Cost per Stage vs. Number of Stages Proppant Intensity 300 30 1.00 200 Completion Cost Per Stage (000's) Average Proppant Intensity (t/m) Average Number…
ENGINEERED COMPLETIONS FOR MONTNEY/DOIG FULL FIELD DEVELOPMENT Industry Range Birchcliff Best Practices Oil Birchcliff Best Practices Gas Liner type Openhole or Cemented Openhole Openhole Inter-well spacing 100 400 m (300 1,200 ft)…
TERMINAL DECLINE CHANGES Due to strong historical performance from both Birchcliff and industry Montney/Doig wells, Deloitte has reduced their forecast TP and 2P terminal declines to 11% and 9%, respectively Deloittes Tier 0 type…
MONTNEY NORMALIZED VINTAGE PLOT Historical Pouce Coupe Montney D1 Performance(1) 8,000 7,000 2016 Engineered completions and improved drill placement have led 6,000 to substantial year over year 2015 increases in well results…
PC GAS PLANT The Engine for Future Growth
Production Processed through the PC Gas 2012 2013 2014 2015 2016 Q1 2017 Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 59,327 91,666 132,808 163,641 168,444 171,605 Oil & NGLs (bbls) 204 527 1,065 1,287 960…
Corporate Operating Costs vs. % of Natural Gas Sales Volumes Processed at the PC Gas Plant KEY STRATEGIC 10.00 100% Corporate Operating Cost (/boe) Volume Through PC Gas Plant ADVANTAGES 8.00 6.00 80% 60% 100% owned…
PC GAS PLANT HIGHLIGHTS Current processing capacity of 180 MMcf/d Expect Phase V expansion will be completed in October 2017, adding 80 MMcf/d bringing total processing capacity to 260 MMcf/d 41% 59% Expect Phase VI expansion…
POUCE COUPE SERVICE OVERVIEW Virtually all of our natural gas production is transported on TransCanadas NGTL System in Alberta pursuant to both firm and interruptible service agreements Birchcliff recently entered into sales…
CHARLIE LAKE LIGHT OIL RESOURCE PLAY Dependable Light Oil Production
WORSLEY CHARLIE LAKE LIGHT OIL Essentially 100% W.I. with operatorship and control of wells, pipelines and facilities Own over 190 net sections with 200+ horizontal locations currently identified Mature, predictable, long life…
WORSLEY CHARLIE LAKE LIGHT OIL ACCOMPLISHMENTS SINCE SEPTEMBER 2007 ACQUISITION 2P reserves have increased over 150% to 38.9 MMboe from 15.1 MMboe 2016 year end 2P NPV10 (BT) was 537 million versus purchase price of 270 million…
45,000 WORSLEY AREA RESERVES PDP 38.9 MMboe 40,000 TP PDP reserves increased 15% as 2P success with the waterfood scheme 35,000 advanced proved reserves to PDP 30,000 Reserves(1) (Mboe) 25,000 20.4 MMboe 20,000…
WORSLEY AREA NPV10 (BT) 1,200 2016 PDP NPV10 (BT) of 172 million, 1,000 a increase of 29% from year end 2015 800 NPV10(1) (million) 600 537 Million 400 341 Million 172 Million 200 0 2007 2008 2009 2010 2011…
BUILDING ON OUR PAST Over 10 Years of Success
Record annual average Birchcliffs average daily production was 49,236 boe/d in production of 49,236 2016 compared to 2,793 boe/d in 2005, a compounded boe/d in 2016 annual growth rate of 30% per year over that span. 2,793 boe/d 1…
Production Growth 60,000 300 boe/d/million wtd. avg. shares 50,000 250 Birchcliff has increased production at a 40,000 200 compound annual growth rate of boe/d 30,000 150 20,000 100 30% since 2005. 10,000 50 0 0…
Reserves Growth 1000 4,000 800 3,200 Birchcliff has added significant low cost reserves boe/1,000shares 600 2,400 since commencing operations in 2005. On a per MMboe 400 1,600 common share basis, PDP, 1P and 200 800 2P…
APPENDIX
2016 MONTNEY/DOIG RESOURCE ASSESSMENT Reserves and Resource Volumes (Bcfe)(1)(2) Resource Class Raw/Sales Low Estimate Case Best Estimate Case High Estimate Case Cumulative Production(3) Sales 696.7 696.7 696.7 Remaining…
2016 YEAR END MONTNEY/DOIG 900,000 RESERVES Drilled 20 HZ M/D wells and acquired 87 (82.5 net) HZ M/D wells 295 (289.7 net) Montney/Doig horizontal 800,000 Drilled 29 HZ wells drilled as of Dec 31, 2016 including M/D wells 87…
SERIES A PERPETUAL PREFERRED SHARES Preferred Share Details Series A Number of Shares 2 million Issue Date August 8, 2012 TSX Trading Symbol BIR.PR.A Issue / Par Price 25.00 per share Quarterly Dividend 0.5000 per share Yield at…
SERIES C PREFERRED SHARES Preferred Share Details Series C Number of Shares 2 million Issue Date June 14, 2013 TSX Trading Symbol BIR.PR.C Issue / Par Price 25.00 per share Quarterly Dividend 0.4375 per share Yield at Issue 7.0%…
EXECUTIVE OFFICERS A. Jeffery Mr. Tonken is a director and the President and Chief Executive Officer of Birchcliff. He has more than 36 years of experience in the oil and natural gas industry and is one of the Corporations founders.…
EXECUTIVE OFFICERS Mr. Carlsen is the Vice-President, Engineering of Birchcliff and is a Professional Engineer. He previously served as Asset Christopher A. Team Lead and Senior Exploitation Engineer with Birchcliff. Mr. Carlsen is a…
BOARD OF DIRECTORS Mr. Shaw is a director of Birchcliff and has more than 29 years of experience in the oil and natural gas industry and is one of Larry A. Shaw the Corporations founders. Prior to joining Birchcliff, Mr. Shaw served as…
THANK YOU TEAM BIRCHCLIFF Jeffrey Akeroyd, Bradley Alexander, Karen Allen, Laura Armstrong, Camille Ashton, Rainer Augsten, Gates Aurigemma, Bryce Baloun, Alan Basnett, Angela Belbeck, Charmaine Belley, Tyrus Bender, Tim Berg, Perry…
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