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The Enercom Oil and Gas Conference – Granite Oil Corp

Granite Oil Corp · Aug 14, 2017 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 1
    EnerCom Denver - Aug 2017
  2. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 2
    What is Granite Organic Growth and Dividend 2900 boe/d at 95% oil Pay a dividend yielding 10% 3 to 5% year over year projected production growth Debt to Cash Flow of 1.4 times at current oil prices 100%-owned Bakken oil property…
  3. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 3
    Alberta Bakken - A Large Resource in the Hands of One Owner BC AB SK MB Alberta Basin Williston Basin Granite Oil Alberta Bakken Williston Basin Bakken ND Up to: 45 ft thick MT 18% porosity SD 20 mD permeability G…
  4. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 4
    Granite Bakken Asset TransCanada Meter 400,000 Net Acreage Station 100%-Owned Pipeline 100% Owned Infrastructure 80 Section Oil Pool 2012 2011 Discovery Discovery 100%-Owned Gas Plant 2014 Discovery 100%-Owned…
  5. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 5
    Maximizing Shareholder Value and Returns Production Maintenance & Capital Wind Down to a Low Decline Free Cash Flow (MM) Average Daily Production Development Capital Free Cash Flow WTI (USD) 50 55 60 60 60 60 60 60 60 60 60…
  6. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 6
    20 Year Drilling Inventory 33 Sections LEGEND Gas Injection Well Producing Oil Well Potential Future Gas Injector Future Drilling Location Existing EOR Approval Area Future EOR Expansion Area Capital Per Well Total…
  7. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 7
    Evolution of Gas Injection EOR - Figuring it Out Before Drilling it Up EOR Expansion & Full-Scale Development / Recovery 5.0 1800 Infill Development 4.5 1600 Pilot EOR 4.0 1400 Primary Decline 3.5 EOR 2.5 Section Case Study…
  8. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 8
    Improved Recovery with Gas Injection EOR Historical Bakken Producing Wells EOR Non-EOR Average Well Average Well Number of Wells 15 40 Average Horizontal Well Length (ft) 4200 8300 EUR (mbbl) 234 190 Barrels Per Horizontal Foot…
  9. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 9
    Relentless Cost Reductions Engineering-Driven and Permanent 2014 2015 2016 2017 6.00 Avg = 3.72 MM Avg = 2.67 MM Avg = 1.36 MM Avg = 1.25 MM 5.00 Drilling and Completion Cost (MM) 4.00 3.00 1.25 million drill &…
  10. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 10
    Dropping the Cost of Adding Producing Barrels Drilling and Completion Finding and Development Costs for Producing Wells from Independent Reserve Auditor 30.00 26.13 24.33 25.00 D & C Capex per Barrel of Booked 19.45…
  11. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 11
    2014 2015 2016 Transitioning to EOR Average Total Capex per Well (MM) 3.7 2.67 1.36 Average WTI (USD/bbl) 93 49 42 Operating Netback (CAD/bbl) 44.64 24.73 20.74 EUR (mbbl) 268 238 196 600 Average Horizontal Length (ft) 9500 6100…
  12. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 12
    Economics and Continued Improvement TYPE WELL ECONOMICS (4) All-In Capex: 1.25 MM EUR (TPP): 196 mbbls 500 Capital Efficiency IP365 : 11,500/bbl Horizontal Length: 3,600 ft Year One Average: 108 bbl/d Royalty: FH Sliding 5-30%…
  13. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 13
    Summarizing Organic Improvement 60 300 25.0 55 54 262 250 D & C Capex per Barrel of Booked Reserves (/bbl) (5) 50 250 Capex Per Foot Drilled & Completed (/ft) 20.0 General and Administrative Cost (/bbl) Recovery…
  14. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 14
    Expanding Inventory of Development & Exploration Opportunities A Growing Pool with Significant Exploration Potential: Acquired 50,000 net acres of additional strategic Bakken lands in 2016 3 mm of high impact exploration projects…
  15. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 15
    Gas Injection Enhanced Oil Recovery Ideal EOR method for Granites Bakken Oil Pool and has been in operation for four years with proven results Original producing horizontal delineation wells are converted into gas injection…
  16. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 16
    Gas Injection EOR Process Dry Make-up Gas Future Gas Plant Compressor (C5+ Removal) Separator Produced Gas Compressed Gas Re-injected Oil to Sales 25% CO2 Produced Oil + Gas AB Bakken Granite Bakken EOR Basics Injecting…
  17. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 17
    Gas Injection Upside in an Undersaturated Reservoir Alaska Swanson River Oil Pool Analog Discovered in 1957 Gas injection pilot program started in 1962 in response to rapid pressure declines Field-wide injection commenced in 1966…
  18. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 18
    EOR Case Study Example: Proving the Most Efficient Drainage 140 10,000 9,000 120 8,000 100 7,000 Injection Volume (mcf/d) Oil Production (bbl/d) 6,000 80 5,000 60 4,000 40 3,000 2,000 20 1,000 0 0…
  19. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 19
    EOR Case Study Example: Optimizing Gas Injection 250 7,000 6,000 200 5,000 Oil Production (bbl/d) 150 4,000 3,000 100 2,000 50 1,000 0 0 0 50 100 150 200 250 300 Days on Production…
  20. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 20
    Why Granite Large oil asset, early in its life cycle, discovered and developed for the long term by us from the start Built to provide returns to shareholders through the cycles Lower price environment: Highly efficient free…
  21. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 21
    Market Facts Trading Symbols TSX GXO OTCQX GXOCF Monthly Dividend Per Share () 0.035 Financial Highlights Market Capitalization (MM) As at closing 10/08/2017 138 Credit Facility (MM) 60 Net Debt (MM)* 36 Net Debt : Annualized…
  22. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 22
    The Team
  23. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 23
    Granite Oil Corp.s Team Management Team Michael Kabanuk President and Chief Executive Officer Michael is a Professional Engineer with 23 years of engineering and management experience in the oil and natural gas industry. Prior to…
  24. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 24
    Granite Oil Corp.s Team Board of Directors Brendan Carrigy Chair Kevin Andrus Martin Cheyne Michael Kabanuk Henry Hamm Dennis Nerland Bradley Porter Kathy Turgeon G R A N I T E O I L C O R P. T S X : G X O 25
  25. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 25
    Contact Information Investor Inquiries: Michael Kabanuk President and CEO Office: 587.349.9123 mkabanukgraniteoil.ca Tyler Klatt Vice President, Exploration Office: 587.349.9125 tklattgraniteoil.ca Address: Livingston Place South…
  26. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 26
    Appendix
  27. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 27
    Minimizing Environmental Impact Produced solution gas containing 25% CO2 is recycled and reinjected into the reservoir, keeping an estimated 140,000 tons of CO2(5) in CO2 the ground and improving oil recovery Reduced Emissions…
  28. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 28
    Capital Budget 2017 Guidance 2017 CAPEX (MM CAD) 17.2 2017 Production (boe/d) 2900-3000 Monthly Dividend Per Share (CAD) 0.035 Exit Net Debt (MM CAD) 36.6 G R A N I T E O I L C O R P. T S X : G X O 30
  29. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 29
    Hedges / Tax Pools 1,600 100 1,400 TAX POOL CATEGORY AMOUNT (MM) 1,200 COGPE 0.5 80 CDE 128 Hedge Prices (US/BBl)* Production Hedged (Bbl/d) 1,000 CEE 1.5 60 52.23 52.23 49.40 49.40 48.05 48.05 800 UCC 11.6 NCL…
  30. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 30
    Go-forward Capital Focus: Development Drilling Land Workovers Land 3% Facilities 3% 0% Workovers 7% 3% Facilities 20% Drilling + Completions 74% Drilling + Completions 90% 2016 2017 & Forward G R A N I T E O I L…
  31. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 31
    Prioritizing Pool Re-Pressurization Through 1H 2016, GXO focused its resources on pressure maintenance and EOR expansion, which required the shut-in of approximately 290 bbls/d of oil production as nine producing wells were…
  32. The Enercom Oil and Gas Conference – Granite Oil Corp – slide 32
    Building a Free Cash Flow Machine Look After it from the Beginning Managing for the Long-Term 200 mmbbls(2) discovered and delineated with only 2.5% recovery to date Gas injection EOR tested, optimized and fully established All…

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