Strong Balance Sheet Forecast approximately 1.0x net debt/cash flow for 2017 Strong growth funded by cash flow Forecast 15% production growth through 2017 funded by cash flow US50/bbl WTI Deep inventory of future growth…
TSX Listed GXE Shares Outstanding 193 million Average Daily Trading Q1 532k Insider Ownership 15% basic Current Production 6,450 boe/d, 86% Liquids (Current Estimate) Estimated 2017 Exit Production 7,200 boe/d 2017 Q1 Net Debt 46.7…
Low debt provides strategic optionality and insurance against future price volatility Current prices support the strategy to exit the year at under 1.0x net debt to cash flow 2017 Estimate of approximately 1.0x net debt to cash…
Gear is forecasting a return to competitive value growth per debt adjusted share through 2017 at oil price of US 50/bbl 2017 WTI Cash flow metric is the non-GAAP cash flow from operations Share count is debt adjusted in 2017 using…
Future growth focused on horizontal development of low risk, low cost, heavy and light oil resources 480 Management identified drilling locations 153 booked in P+P by GLJ (32%), P+P RLI = 9.7 yrs Heavy Oil North 2,250 boe/d 74 booked in…
Development capital efficiencies of 13,500 to 15,000/boe/d forecasted from 2015 through 2017 a 60% improvement over the previous four year average 2014 2015 2016 2017 Estimate 35,900/boe/d 13,500/boe/d 24,000/boe/d 15,000/boe/d…
Oil Futures for 2017 (May 2, 2017) WTI US 49.50/bbl WTI CAD 67.00/bbl Resulting in 2017 estimates of: 42.00/boe Revenue Based on 62% heavy oil, 24% light/medium oil & NGLs and 14% gas 19.00/boe Cash Flow (after hedging) Based…
2017 total costs are forecast to be down more than 15/boe (40% lower) than 2013 9
Capital budget targets low risk production growth of approximately 15% while investing within cash flow 2016 Actuals 2017 Guidance 2017 Q1 Actual Production 5,152 boe/d 6,400 boe/d 5,907 boe/d Royalty rate 9.3% 10% 9.4% Operating costs…
Heavy Oil Program (31 wells) Wildmere Area, Alberta 5 Cummings multi-lateral horizontals (quads and triples) 4 General Petroleum (GP) multi-lateral horizontals (duals) Paradise Hill Area, Saskatchewan 17 McLaren horizontal wells…
Multi-lateral unlined horizontal drilling has been very successful in the Cummings and GP 2017 plan is to drill 9 wells; 5 into the Cummings and 4 into the General Petroleum (GP). 4 drilled to date Approximately 60 multi-lateral wells…
Cummings Risked Estimates Capital 900k IP 365 72 bopd Reserves 66 mbbls Economics ROR (BT) Payout US60 WTI 75% 1.1 years US50 WTI 55% 1.4 years The 2017 Cummings program includes 2 full section quads 2 shorter quads and 1…
Horizontal McLaren drilling has been very successful in the Paradise area. Current 2017 plan is to drill 17 more wells. Approximately 100 horizontal wells in inventory with 36 booked at YE 2016 (P+P) 2 Wells IP90 80 bbl/d Celtic…
Gear has established a potential new core area in southern Saskatchewan with a 16 section foothold. Historical drilling in the area has 12-10 been successful in producing heavy oil from IP60 75 bbl/d the Success and the Bakken…
The 2017 plan is to drill 5 full section Basal Belly River horizontal light oil wells in Wilson Creek. Five new full section wells are now on production with results as expected. Operated Wilson Creek production is averaging…
Risk management strategy is to target 50% protection for 2017 and 2018 (net of royalties) Gear also has the WCS differential hedged at CAD21.40/bbl for 400bbl/d in 2017 17
Executive Ingram Gillmore VP Engineering - ARC Energy Trust, Talisman President & CEO, Director Yvan Chretien VP Land - ARC Energy Trust, CNRL VP Land Bryan Dozzi Engineering Manager - Gear Energy, Rock Energy VP Engineering David Hwang…
Analysts Altacorp Thomas Matthews Beacon Securities Lyndon Dunkley Canaccord Genuity Sam Roach Cormark Garett Ursu Desjardins Jamie Kubik GMP FirstEnergy Bob Fitzmartyn Haywood Christopher Jones National Bank Brian Milne Peters & Co Dale…
Price forecasts are US50 flat WTI with 0.80 CAD/US foreign exchange, or US60 flat WTI with 0.84 CAD/US exchange, a heavy oil differential of 30% off WTI with an additional heavy oil quality discount of CAD6.00, and a light oil realized…
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