Strong Balance Sheet Forecast under 1.0x net debt/cash flow for 2017 Strong growth funded by cash flow Forecast 18% production growth through 2017 Deep inventory of future growth opportunities 480 management recognized drilling…
TSX Listed GXE Shares Outstanding 195 million Average Daily Trading Q3 326k Insider Ownership 15% basic October Production Estimate 7,200 boe/d, 86% Liquids Estimated 2017 Q4 Production 7,300 7,400 boe/d 2017 Q3 Net Debt 44.5…
Low debt provides strategic optionality and insurance against future price volatility 2017 Estimate of under 1.0x net debt to cash Current prices support the flow strategy to exit the year at under 1.0x net debt to cash flow…
Gear is forecasting a return to competitive value growth per debt adjusted share through 2017 at current prices Cash flow metric is the non-GAAP cash flow from operations Share count is debt adjusted in 2017 using an estimated…
Future growth focused on horizontal development of low risk, low cost, heavy and light oil resources Heavy Oil 5,000 boe/d 430 locations 480 Management identified drilling locations Edmonton 153 booked in P+P by GLJ (32%)…
Development capital efficiencies of 13,500/boe/d for 2015 and 2016, forecast 15,000/boe/d for 2017 Base decline estimate record low of 28% 2014 2015 2016 2017 Estimate 35,900/boe/d 13,500/boe/d 24,000/boe/d 15,000/boe/d 164MM capital…
2017 WTI US 50.80/bbl Heavy oil average 12 API WTI CAD 65.90/bbl 42.90/boe Revenue Heavy oil price estimate 63% heavy oil (WTI WCS Diff) x exchange 23% light/medium oil & NGLs 14% gas 5.50/bbl 18.25/boe Cash Flow (after hedging)…
2017 total costs are forecast to be 15/boe lower than 2013 (-40%) 9
Gears capital budget targets production growth of approximately 18% Q4 2017 versus Q4 2016 while maintaining a top quartile net debt to cash flow ratio at current prices 2017 Guidance 2017 (9 month) Actual 2016 Actual Production…
Future potential demonstrated by annualizing 2017 Q4 estimated results WTI oil price of approximately US 20% increase in estimated 42/bbl required to keep cash flow production flat at 7,300 boe/d with current declines and 10% price…
Conventional drill to the target formation, cement intermediate casing and then drill up to four horizontal legs without setting expensive slotted liners Technology is being applied in thin tight conventional medium and heavy oil…
Gear has built a material land position targeting the Cummings and General Petroleum (GP) heavy oil formations Successful multi-lateral unlined horizontal West Wildmere drilling began in 2014 Cummings Through 2017 the current plan is…
Risked Estimates Capital 850k IP 365 70 bopd Reserves 74 mbbls Economics ROR (BT) Payout US50 WTI 80% 1.2 years Economics presented as an average of GP and Cummings multilateral wells Superior field netbacks possible due to…
Horizontal McLaren drilling has been very successful in the Paradise area. This year 15 new wells were drilled and are now all on production. RISKED Estimates Celtic Capital 650k Management recognizes IP 365 60 bopd approximately…
Gear has a 21 section potential new core area where historical drilling has been successful in producing heavy oil from the Success and the Bakken formations. The plan is to establish production and cost profiles in order to 12-10…
Gear has been successfully developing the light oil resource in the Basal Belly River at Wilson Creek. Gear has 5 full section wells currently producing at an average of 3 times the rates seen from the original 2 short wells drilled…
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 18
Executive Prior Experience Ingram Gillmore President & CEO, Director VP Engineering ARC Resources, Talisman Yvan Chretien VP Land VP Land ARC Resources, CNRL Bryan Dozzi VP Engineering Engineering Manager - Gear Energy, Rock Energy…
Analysts Altacorp Thomas Matthews Beacon Securities Lyndon Dunkley Canaccord Genuity Sam Roach Cormark Garett Ursu GMP FirstEnergy Bob Fitzmartyn Haywood Christopher Jones National Bank Brian Milne Peters & Co Dale Lewko 20
Price forecast of US50 flat WTI with 0.80 CAD/US foreign exchange, a heavy oil differential of 30% off WTI with an additional heavy oil quality discount of CAD5.50, and a light oil realized price estimate of WTI minus CAD6.00…
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