ATHABASCA OIL CORPORATION FOCUSED EXECUTING DELIVERING MAY 2017 CORPORATE UPDATE
NOTES 1
ATHABASCA OIL EXPOSURE TO CANADAS 2 LARGEST RESOURCE PLAYS o Liquids rich Montney at Placid THERMAL OIL o Duvernay at Greater Kaybob o Oil sands in northeastern Alberta Hangingstone 12,000 bbl/d expected to be reached in 2018 LIGHT…
PROVEN TRACK RECORD OF EXECUTION 3 Competitive Montney and Duvernay drilling and completion performance EXECUTION Restructured business for operations on core assets JOINT VENTURE 268 million cash & 220 million carry; 1…
STRATEGY & INVESTMENT PROFILE 4 PRODUCTION LIGHT OIL: DEFINED & MATERIAL GROWTH 70 Duvernay Montney o Scalable Montney position 60 Leismer Hangingstone 50 o Funded Duvernay development 40 mboe/d 30 THERMAL OIL: LEVERAGE…
OUTLOOK & CAPITALIZATION 5 2017 GUIDANCE* CAPITALIZATION (ATH-TSX) o Funds Flow & Production Funds Flow: 90MM Share Price (May 2, 2017) 1.33 /sh Corporate: 36,000 40,000 boe/d (90% liquids) Basic Shares Outstanding 507 MM Thermal…
THERMAL OIL LEISMER & HANGINGSTONE
THERMAL OIL ASSET OVERVIEW 7 ASSET HIGHLIGHTS REGIONAL MAP o 29,000 32,500 bbl/d 2017 production* o 1,075 mmbbl 2P reserves1 o Low-risk future brownfield expansion opportunities at Leismer and Hangingstone Hangingstone o…
LEISMER HIGH QUALITY ASSET 8 ASSET HIGHLIGHTS PROJECT MAP o Commissioned in 2010 o 22,521 bbl/d & 2.9x SOR (Feb/Mar average) L5 o US44/bbl WTI* operating break-evens; targeting US2.50/bbl improvement through diluent sourcing…
HANGINGSTONE DEVELOPMENT OVERVIEW 9 MAP HANGINGSTONE PROJECT 1 (12,000 BBL/D) Central Processing Facility Capacity o First oil in August 2015 12 mbbl/d of bitumen 42 mbbl/d of steam o 9,200 bbl/d (March) MID-TERM OUTLOOK AD…
THERMAL OIL OUTLOOK 10 DEVELOPMENT HIGHLIGHTS PRODUCTION PROFILE o Optimize operations in the initial years 40 Leismer 35 Hangingstone OUTLOOK 30 o Reinvest FCF into high rate of return light oil assets 25 mbbl/d 20 o 2017…
PLACID MONTNEY - REGIONAL OVERVIEW 13 HIGHLIGHTS o 65,000 gross operated acres spanning Placid, Saxon and Simonette o 31,500 prospective gross acres at Placid; 150 200 gross development locations1 Apache Cequence Chevron CIOOC…
PLACID MONTNEY ACTIVITY & ECONOMICS 14 NEAR TERM ACTIVITY SUMMARY ACTIVITY MAP o 2016/17 winter activity Rig released 20 wells Battery commissioned in April 3 pads tied-in; 2 post break-up o 120MM H1/2017 budget o H2/2017…
PLACID MONTNEY SCALABLE POSITION 15 DEVELOPMENT HIGHLIGHTS PRODUCTION PROFILE (NET) 18 o AOC operates with a 70% WI Montney - Upside 16 Montney - Base o 150 200 well inventory supports a 1 3 rig program 14 in the mid-term1 12…
KAYBOB DUVERNAY ACTIVITY OVERVIEW 16 HIGHLIGHTS o Industry activity remains robust; second most active play from a capital perspective in the WCSB o AOC retains exposure to 200,000 commercially prospective acres with 1,500+…
KAYBOB DUVERNAY - FUNDED DEVELOPMENT 17 JOINT VENTURE & DEVELOPMENT HIGHLIGHTS 10 PRODUCTION PROFILE (NET) o 200MM 2017 budget (15MM net) 8 o Carry minimizes near-term capital exposure MUR funds 75% of AOCs 30% WI 6 mboe/d…
CONCLUSIONS
ATHABASCA A PREMIUM OIL WEIGHTED 19 INVESTMENT CURRENT OUTLOOK STRATEGY LIQUIDS WEIGHTED Base production (36,000 40,000 boe/d) Self-funding in 2018 GROWTH Investment in high return light oil 40% production per share CAGR…
TRANSFORMATIONAL ACQUISITION OF STATOILS 22 CANADIAN THERMAL ASSETS 2 510km2 Assets Total Acreage 838 Delineation Wells 2P Reserves1 856 mmbbl 165MM 24,000 bbl/d Cash Flow at Resource1 628 mmbbl US60/bbl WTI 70 year…
ACQUISITION RATIONALE & HIGHLIGHTS 23 STRATEGIC RATIONALE o Acquisition of 24,000 bbl/d of stable Production with US44/bbl WTI Break-Evens o Establishes Athabasca as a 38,000 boe/d (90% liquids) Intermediate Producer o Upgrades…
LIGHT OIL JOINT VENTURE WITH MURPHY OIL 24 STRATEGIC RATIONALE o Corporate o Reduce development risk profile while maintaining upside potential o Strengthen balance sheet and facilitate leverage reduction o Montney o Material…
LIGHT OIL JOINT VENTURE MAP 25 Greater Kaybob Assets AOC 30% WI in 200,000 prospective Duvernay acres Greater Placid Assets AOC 70% WI in 65,000 prospective Montney acres
LIGHT OIL STRATEGIC INFRASTRUCTURE 26 R26 R24 R22 R20 R18 R16 R14W5 Total Battery Capacity (gross) Gas Pipeline (gross) T67 T67 Oil Capacity 36,000 bbl/d Up to Gas Capacity 180 MMcf/d 84 MMcf/d, Gas Capacity expandable to 130…
KAYBOB DUVERNAY 27 JOINT DEVELOPMENT AGREEMENT May 2016 Greater Kaybob Duvernay & Greater Placid Montney Joint Development Agreements available on SEDAR
KAYBOB DUVERNAY - REGIONAL OVERVIEW 28 HIGHLIGHTS o Industry activity remains robust; second most active play from a capital perspective in the WCSB o AOC retains exposure to 200,000 commercially prospective acres with 1,500+…
KAYBOB DUVERNAY - ACTIVITY & TRENDS 29 KAYBOB WEST DRILLING PERFORMANCE DUVERNAY HZ WELL COUNTS 700 10 industry rigs currently active 0 AOC 4-36 4 well Pad 600 375 wells on production (50% inc. Y/Y) 1,000 AOC 2015 average 100+…
PLACID MONTNEY WELL SUMMARY 31 Well UWI Key Dates Drilling Summa Completions Summary Production*** Spud On Prod. Spud - RR Lateral Stages Proppant Loading IP30**** Cum. Production To Date mmm-yy mmm-yy days m lb/ft boe/d % liquids…
CONTINGENT BITUMEN ROYALTY 32 SLIDING SCALE PRICING HIGHLIGHTS 14% OtherDover Birch, Thermal Leases & Grosmont 12% Leismer, Hangingstone, Corner Hangingstone o Royalty applies to all thermal assets 10% o Total cash proceeds of…
ALBERTAS OIL SANDS 33 A GLOBAL ENVIRONMENTAL LEADER HIGHLIGHTS o Canada, with 0.5% of the worlds population, produces about 2% of global CO2 emissions o Oil sands accounted for 8.5% of Canada GHG emissions and about 0.13% of global GHG…
MANAGEMENT TEAM AND BOARD 34 MANAGEMENT TEAM BOARD OF DIRECTORS Robert Broen, P.Eng. Ronald Eckhardt President & Chief Executive Officer Chair and member of the Reserves Committee and member of the Audit Committee Kim Anderson,…
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