Saguaro Resources Ltd. Montney Liquids Rich Growth Story Corporate Presentation August 2017 Private and Confidential August 2017 Confidential 1
Saguaro Highlights (1) Q2 2017 production averaged 10,465 Boed from 36 producing Montney horizontal wells; Well peak daily production in July 2017 exceeded 15,500 Boed positioned for Reserves were evaluated by an IQRE ; 2P…
Montney Captured to Date (1)(2) Internal estimate of resource size on 164 sections of a liquids Saguaro rich Montney natural gas play with stacked potential: 3,500 MMBoe in Place (21 Tcf Gas in Place) 1,1001,700 MMBoe…
Derisking Across Saguaros Montney Land Base (1) Geology: Average 260 m of gross pay across three stacked porous zones 81G 14I 3 HZ wells Overpressured; 1115 kPa/m 9 HZ wells Shallower depth of 1,4001,900 m 34H b24H 16…
Drilling and Completion Costs (1) Drilling & /Hz m Realized cost savings and 6.0 3,000 Average Drilling Cost per Well (MM) Drilling per HZ m 5.0 2,500 optimization of technical Drilling Cost () per HZ m 4.0 2,000…
Development Well Performance Update (1)(2) 1,750 1,500 2,000 m wells in the Development Program are trending between the Producing Day Sales Production (Boed) 1,250 6 Bcf and 8 Bcf type curves 1,000 750 500 250…
2,000 m Type Curve Economic Metrics (1) Type Curve Comparison 6 Bcf 7 Bcf 8 Bcf Development Type Curve Type Curve Type Curve program is on DC&E Capital(2) (MM) 5.25 5.25 5.25 pace with the 7 IRR(3)(4) (%; Before Taxes) 42%…
2,000 m Single Well Sensitivities (1) IRR impact of type curve 150% 8 Bcf Type Curve and pricing assumptions (2) 125% Type curves are based on 100% 7 Bcf Type Curve IRR % the following criteria: 75% 6 Bcf Type…
De-risked Inventory with Strong Well Economics (1) 89% of land base derisked with 1,500+ locations Montney Delineation IRR by Montney Target(2) To Be Derisked 1,200 18 sections Upper Target Middle Target Derisked Lower…
Production Update (1) Production by Product 11,000 10,000 Continued production growth 9,000 Production (boed) 8,000 7,000 Highest quarterly production to 6,000 5,000 date in Q2 2017 4,000 3,000 Production averaged 10,465…
Reserves Evaluation Summary (1) Reserves evaluated by an Independent Qualified Reserves Evaluator Total Proved + Probable (2P) reserves increased by 9% since year end 2016 295.1 MMboe at mid year 2017 compared to 270.3 MMBoe at…
Land Base Provides Large Future Reserves Potential (1) 2P Reserves represent 18% of Saguaros estimated well inventory Proved Probable Upper Target Middle Target Lower Target 1. See advisories on pages 23 to…
Full Development Plan Activity & Production (1)(2) The Full Development Plan (FDP) is based on approximately 1,500 horizontal wells (2,000 m) and the 6 Bcf type curve FDP will continue to be updated throughout the delineation…
Full Development Plan Capital & Metrics (1)(2) 1,200 Development Capital Economic Metrics 6 Bcf(3) FDP(4) 2,000 m HZ with 6 Bcf Corporate Cash Flow Type Curve 1,000 Debt Drawn Private Equity Drawn Capital PV0(5) (MM) 5.25…
2017 Natural Gas Price Risk Management (1)(2) Two strategies are in place to mitigate exposure in 2017 to Station 2 price Sumas 19% volatility Market Diversification Hedging Station 2 57% Station 2 Market…
Infrastructure Options (1) Saguaro Currently connected to three third party processing facilities Saguaro Proposed Aitken Creek Contracted firm service of 50 MMcfd Sales Pipeline Takeaway Hub Significant interruptible…
Saguaro b-24-H Facility (1) Recently expanded facility to 100 MMcfd Further modular expansions as required Full site expandable to 1 Bcfd Process Capacity Inlet (Upgraded) 100 MMcfd Compression 100 MMcfd Dehydration…
Strong Access to Capital (1) 400 MM private equity line 140 MM syndicated bank revolver Increased from 105 MM on August 14, 2017 Will continue to expand with reserve growth 50 MM 8.5% second lien secured notes due 2022 Placed…
Q2 2017 Revenue and Netback (1) Continued commodity price volatility impacts our field netback; hedges are in place to protect cash flow Competitive 2017 yeartodate netback of 15.49 per Boe (including hedging) Will continue to…
Summary (1) Liquids Rich Saguaro highlights include: Unique reservoir with high free condensate 36 producing Montney wells on five different pads (2) Attractive economics 146 of 164 sections (89%) have been…
Corporate Information Officers Head Office Stacy Knull President & Chief Executive Officer 440, 222 3rd Ave SW Scott Carrothers Vice President Finance & Chief Financial Officer Calgary, AB T2P 0B4 Tannis Gibson Vice President Geology…
Well Performance Update (1)(2) 1,750 1,500 Producing Day Sales Production (Boed) 1,250 Development Program: Upper & Middle Montney wells with horizontal length of 2,000 m 1,000 750 500 250 Pilot Program(3):…
Supplemental Information: Reserves (1) Reserves Finding, & Finding, Full Development Evaluation Company NPV10 per Boe Development Development & Capital Locations (Net) Share(2)(3) Before Taxes Costs Acquisition (FDC) (4)…
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