POSITIONED FOR SUSTAINABLE LONG TERM VALUE CREATION Corporate Presentation July 2017
Corporate Profile MARKET SUMMARY Ticker Symbol TSX / NYSE: BXE Average Daily Volume1 Canada: 145,000/ U.S.: 81,000 Shares Outstanding 2 49.3 million basic / 51.4 million diluted Market Capitalization3 173 million Bank Debt4 15…
Investment Highlights HIGH QUALITY Dominant core acreage position in west central Alberta Spirit River represents one of North Americas lowest supply cost natural gas plays ASSETS & Consistently deliver top ranked well productivity…
Reintroducing Bellatrix NEW LEADERSHIP Brent Eshleman appointed President, CEO and a member of the Board of Directors on February 15, 2017 Max Lof appointed CFO June 19, 2017 TRANSFORMATIONAL CHANGES COMPLETED IN 2016 & 2017…
Material Deleveraging & Strategic Repositioning SUCCESSFULLY RAISED APPROXIMATELY 440 MILLION IN PAST 14 MONTHS OVER MULTIPLE TRANSACTIONS WITH MINIMAL PRODUCTION DIVESTED Announcement Gross Proceeds Production sold Transaction Date…
Balance Sheet & Financial Flexibility Effective capital resource management, balancing liquidity and flexibility ESTIMATED BANK DEBT 15MM CREDIT FACILITY CONTAINS LONGER DATED TERM DEBT POST STRACHAN ASSET SALE1 ONE FINANCIAL…
2017 Outlook & Guidance REVISED 2017 PREVIOUSLY SET 2017 ANNUAL GUIDANCE ANNUAL GUIDANCE (JUNE 26, 2017) (MAY 10, 2017) Production (boe/d) 2017 Average daily production 34,500 34,500 2017 Exit production 35,500 35,500 2017 Growth…
Three Year Development Plan THREE YEAR DEVELOPMENT PLAN DESIGNED TO DELIVER INTERNALLY FUNDED PRODUCTION VOLUME GROWTH TARGETING A COMPOUND ANNUAL GROWTH RATE OF +/-15% 45,000 40,000 Estimated Production Volumes (boe/d)…
Commodity Price & Currency Risk Management STRONG FIXED PRICE NATURAL GAS RISK MANAGEMENT PROTECTION 70% 3.36 3.36 3.36 60% % of total forecast 2017 gas volumes 50% 3.08 3.08 3.08 3.08 40% 30% 20% 10% 0% Q2/17 Q3/17…
Highly Concentrated Land Base DOMINANT ACREAGE POSITION WEST CENTRAL ALBERTA CORE AREA Highly focused land base in the prolific Deep Basin of FERRIER Alberta WILLESDEN GREEN 99% of total corporate GREATER PEMBINA production and…
Concentrated Multi-Zone Acreage DEEP BASIN MULTI-ZONE ACREAGE Deep Basin is highly coveted for: Sweet, liquids rich natural gas 4,600 ft TVD Belly River 6,200 ft TVD Sweet, light gravity crude oil Cardium Multi-zone hydrocarbon…
Spirit River is the Growth Engine SPIRIT RIVER PRODUCTION GROWTH 75% 30,000 2010 Spirit Spirit River % of Total Company Volumes 60% 24,000 Average Monthly Production (boe/d) River Other 45% 18,000 30% 12,000 March…
Spirit River - The Quiet Giant WESTERN CANADA 2016 WELLS CALENDAR DAY PRODUCTION BY ZONE Spirit River Montney L Mannville Viking Bakken Glauconitic Cardium Duvernay Shaunavon Colorado Mississippian Charlie Lake 0 10,000…
Spirit River Geology Summary SPIRIT RIVER STACKED SANDS Broad, thick, extensive sand rich valleys in Notikewin, Falher and Wilrich members Tight sandstone: long life reserves with long term hyperbolic decline profile One square mile…
Spirit River Liquids Rich Gas BXE Land Sections1 GREATER FERRIER AREA CORE SPIRIT RIVER PLAY 204 Gross 112 Net BXE Net Drilling Inventory2 86 proved 30 probable 265 unbooked 381 total True vertical formation depth 2,250 meters…
North American Supply Cost Comparison 4.00 3.50 3.00 Henry Hub (US/MMbtu) 2.50 2.00 1.50 1.00 0.50 0.00 Economics assume 15% Before tax IRR, assumes US0.83 = CDN1.00, US0.75/MMbtu AECO basis, and a 20:1…
Spirit River All-In Profitability Full Cycle F&D costs C2.50/GJ C3.00/GJ Drill 1.7MM Complete 1.6MM Full cycle F&D costs /Mcfe (0.85) (0.85) Equip & tie in 0.7MM Half cycle costs 4.0MM Land/seismic/facilities 1.1MM Cash costs…
Spirit River Well Costs & Capital Efficiencies FOCUSED CAPITAL COST REDUCTIONS 6.0 5.0 Long Reach 4.0 Costs (millions) Long Reach Long Reach Equip & Tie-in 3.0 Complete 2.0 Drill 1.0 0.0 2015 - 24 wells 2016…
Enduring Efficiency Gains AVERAGE SPIRIT RIVER DRILLING CURVES SPUD TO RIG RELEASE BY YEAR 0 20 Days (Spud to Rig Release) 2014 Spirit River Average 500 15 2015 Spirit River Average 1,000 10 2016 Spirit River Average 1,500…
Spirit River Development Comparison COMPARATIVE 2015 & 2016 SPIRIT RIVER COST & EFFICIENCY METRICS Frac stages Number of completion days Avg proppant placed per stage 20 30 70 Proppant per stage (tonnes) 25 60 Number of…
Representative Spirit River Inventory Required to Maintain Production Volumes Approximately 14 net Spirit River wells1 per year maintains production in the mid 30 mboe/d range through 2020 Represents scenario of drilling of only 15%…
Cardium Light Oil Resource Play BXE Land Sections1 155 Gross 99 Net BXE Net Drilling Inventory2 92 proved 29 probable 85 unbooked 206 total Cardium Resource Play Summary Largest accumulation of light oil in the WCSB…
Strategic Land Position GREATER FERRIER/BRAZEAU/WILLESDEN GREEN AREAS OF WEST CENTRAL ALBERTA Pembina Brazeau Ferrier Willesden Green Bellatrix Peyto TAQA Cenovus Tourmaline Westbrick 25 Source: Accumap, company…
Greater Ferrier Area Infrastructure Overview GREATER FERRIER EXISTING GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or…
Drill Bit Focused PLANT INVESTMENT & CONSTRUCTION COMPLETE Q2/18 Major compressor stations, pipelines and Bellatrix Alder Flats Plant capital investment nearing completion Proportion of incremental capital to drilling & completion…
BXE Alder Flats Superior Operational Performance in Core West Central AB Area SUPERIOR & CONSISTENT PLANT PERFORMANCE FUEL/DISPOSITION EFFICIENCY Bellatrix Alder Flats Highest Bellatrix Alder Flats Most efficient Utilization 3rd Party…
Ample Takeaway Capacity & Market Egress AMPLE FIRM TRANSPORTATION IN PLACE FOR ALBERTA NATURAL GAS MARKET EGRESS CURRENT & GROWTH VOLUMES Firm Transportation (FT) agreements in place ALBERTA representing 120% of current gross operated…
Compelling Investment Opportunity Excellent Organic SUSTAINABILITY Growth Potential Competitive Economics PROFITABILITY De-risked LONG TERM GROWTH Leading Well Results Technically Astute 30
Corporate Information BOARD OF DIRECTORS SENIOR OFFICERS BANKERS W.C. (Mickey) Dunn Brent A. Eshleman, P.Eng. National Bank of Canada Chairman President & CEO Alberta Treasury Branches The Bank of Nova Scotia Murray L. Cobbe Max Lof,…
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