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November 2017 Corporate Presentation – Tourmaline Oil Corp.

Tourmaline Oil Corp. · Nov 9, 2017 · 51 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. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 1
    Corporate Presentation November 2017
  2. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 2
    2 Current Status Nov 2017 Production Overview Current production 255,000-265,000 boepd 2017 average production forecast of 240,000-250,000 boepd (approx. 30% annual growth) Current liquid production 42,000 bpd 2017 Exit…
  3. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 3
    3 Historical EP Performance Mar 2017 Production Growth Per Share* Reserves Growth Per Share* 350 7 Production per Thousand Shares Reserves per Share (BOEs) 300 6 250 5 200 4 (BOEs) 150 3 100 2 50 1 0 0 2009 2010…
  4. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 4
    4 A History of Full Cycle Profitability Sep 2017 400 6.00 350 * Earnings before taxes (000,000s) 5.00 Earnings before tax ( millions) AECO (CAD/mcf) 300 4.00 250 AECO (/mcf) 200 3.00 150 2.00 100 1.00…
  5. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 5
    5 Largest Canadian Gas Producers Nov 2017 1,800 2016A Natural Gas (Mmcf/d) 1,600 2017E Natural Gas (Mmcf/d) 1,400 2018E Natural Gas (Mmcf/d) 1,200 Production (Mmcf/d) Tourmaline is currently producing 1,000 between…
  6. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 6
    6 A Significant Liquids Producer Oct 2017 Tourmaline has doubled liquids production over the past 15 months with strong liquids growth across all three operated complexes. Condensate production will grow from current levels of 12,000…
  7. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 7
    7 Alberta Deep Basin Nov 2017 T65 R9 R7 R5 Current Production 175,000-180,000 boepd Current Reserves 871.9 mmboe (Jan 1, 2017) T63 Tourmaline Land Base 3,000 gross sections Drilling Inventory 2,819 locations (vertical) TCPL Main…
  8. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 8
    8 Top August Alberta Gas Wells Oct 2017 Source: NBF, geoSCOUT, Company Reports
  9. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 9
    9 Alberta Deep Basin 2H 2017 EP Highlights Sep 2017 T65 R7 R5 Kakwa 3 Well Pad 1-20-62-5W6M Tourmaline Lands 55mmcf/d and 270 bbls/d Cond. NE Alberta T63 Tourmaline Gas Plant BC TCPL Main Line Possible Facility Locations…
  10. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 10
    10 Alberta Deep Basin Liquids Rich Cardium Fairway Aug 2017 The combination of extensive 3D seismic coverage T59 T59 and the lowest cost drilling/completion capability Smoky make the liquids rich Cardium play a significant new…
  11. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 11
    NEBC Montney Gas Condensate and Peace 11 River High Charlie Lake Oil Core Areas Nov 2017 Current Prod. 90,000-95,000 boepd BC Montney In excess of 4,046 horizontal locations Drilling Inventory* BC Montney Reserves 766.5 mmboe (Jan…
  12. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 12
    12 NEBC Montney Gas/Condensate Complex Nov 2017 Black Swan Current Prod. 350-360 mmcf/d TOU Land Comp. Station, dehy C-60-A Gas Plant 25 mmcf/d 7,500-8,000 bpd condensate TOU Wells 200 MMCF/D Q4 2018 Current Reserves 766.5…
  13. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 13
    13 Gundy Ck Montney Development Oct 2017 Drilling Execution Efficiency Black Swan Gundy 2013 - Comp. Station, dehy Current Production: 11,318 boepd (Oct 2017) 25 mmcf/d Current Plan 2014 No of wells drilled by TOU: 23 Days 10 14…
  14. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 14
    Tourmaline Montney 14 Efficiency + Execution Montney Peers Q2/17 Production 40,000 boe/d Sep 2017 Drilling and Completions Costs (1) Montney Operating Costs 14 Q2/2017(1) (2) 12 10 CADMM 8 7.00 6 6.00 4 5.00 2 4.00…
  15. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 15
    15 Peace River High Complex Charlie Lake Play Nov 2017 Mulligan 8-15 Upper Trcl Pad Q3 2016 R. 11 R. 9 5-14 R. 7Mulligan R. 5 90 day production rates Peace River High Charlie Lake Play 1-21: 285 bopd, 0.3 mmcf/d, 335 boepd Oil…
  16. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 16
    boe 10000 12000 14000 16000 18000 20000 22000 24000 2000 4000 6000 8000 0 Tourmaline 16-09-078-07W6 Boulder 03-14-047-14W5 Cenovus 11-08-027-19W4 Tourmaline 02-16-078-07W6 Kelt 04-01-072-08W6…
  17. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 17
    17 Tourmaline Mid-Stream Assets Sep 2017 The infrastructure skeleton in all three core operated complexes is now complete. This infrastructure is essentially R. 15W6 R. 1W6 all newR.and 15W5in the growth areas of the WCSB. NE…
  18. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 18
    18 Historical Reserves Summary Feb 2017 Reserves (GLJ) Reserves 2012 2013 2014 2015 2016 2000 2012 2013 2014 2015 2016 (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) PDP 91.9 122.3 177.8 263.2 352.1 1500 TP 249.2 316.5 472.3 644.1…
  19. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 19
    19 Gas Development Location Inventory and Economics Mar 2017 AB Deep Basin Outer Foothills AB Deep Basin B.C. Montney Charlie Lake Vertical Vertical Horizontal Horizontal Horizontal Total Well Costs 3.3 4.80 4.40 2.90 2.4 (Drill,…
  20. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 20
    20 Completed Well Costs and EUR By N. American Play Type Aug 2017 Well Costs (CAD) Vs. EUR by Play Type 25 0.47/mcf Completed Well Cost CDN EUR (Bcfe) 20.5 Bcfe 0.69/mcf 20 17.9 Bcfe 15 0.70/mcf 12.3 MM 12.5 Bcfe…
  21. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 21
    21 Tourmaline vs Natural Gas Peers Cash Costs Per BOE July 2017 Tourmaline Vs. Natural Gas Weighted Peers Cash Costs in USD* per BOE (Q1/17) Operating Transportation G&A Interest 12.00 10.26 10.00 1.45 8.00 7.15 1.54 Costs…
  22. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 22
    22 The TOU Engineering Execution Machine Sep 2017 Drill & Complete Costs 8.00 Tourmaline has the lowest completed per stage (Equipping not included) well costs in the overall Montney play in 7.00 Western Canada and the Alberta…
  23. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 23
    Continuously Improving Well Performance 23 and Recoverable Reserves Oct 2017 2,000 1,750 Deep Basin 1,500 EUR 934 Mboe 1,250 47% EUR Increase Since 2012 IP 30 1,812 boe/d Boe/d 1,000 750 IP 90 1,334 boe/d 500 250 IP 365 700…
  24. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 24
    24 Continuous Cost Reduction Strategy Mar 2017 Operating Costs General and Administrative Costs 2.46 8.00 2.50 7.00 2.00 6.34 6.00 /boe 1.50 /boe 5.58 1.29 4.87 1.02 5.00 1.00 4.43 4.35 4.37 0.79 0.74 0.60…
  25. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 25
    25 2018 Guidance Nov 2017 2018(1) Production Boe/d 270,000 - 280,000 Cash Flow - MM(i) 1,362 CFPS - Diluted(i) 5.04 E&P Capital Program - MM 1,082 Free Cash Flow - MM(ii) 251 Exit Net Debt - MM(i) 1,558 Debt to CF…
  26. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 26
    26 Current 5 Year Plan(1) Nov 2017 400,000 350,000 300,000 250,000 Spirit River Boe/d 200,000 NEBC 150,000 Deep Basin 100,000 50,000 - 2016 2017 2018 2019 2020 2021 2022 Annual After-tax After-tax E&P Capital Free…
  27. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 27
    27 2018 Natural Gas Transportation and Marketing Overview October 2017 2018 Natural Gas Portfolio Diversification 19% 10% 2018 Exit: 440 mmcf/d of gas will be to US/Other Markets 2019 Exit: 540 mmcf/d of gas will be to…
  28. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 28
    28 2H 2016 Highlights/2017 Outlook Nov 2017 Tourmaline now a senior with production exceeding the 250,000 boepd milestone. (30%+ annual growth) The Company reserves are now 1.75 billion boe (Jan 1, 2017). (60%+ annual growth)…
  29. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 29
    APPENDIX
  30. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 30
    30 Natural Gas Flows From Western Canada
  31. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 31
    31 Shell Acquisition Overview Oct 2016 A major step towards the ongoing plan to become Canadas and one of North Americas largest, most efficient, lowest cost and profitable natural gas producers. The acquisition provides a…
  32. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 32
    32 Underlying Natural Gas Fundamentals are Strong. Mar 2016 Supply/Demand fundamentals support a strong natural gas price recovery, the warm 2015/2016 winter has temporarily deferred this rally, to 2H 2016/Q1 2017. Natural Gas…
  33. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 33
    33 2017 EP Highlights, New Opportunities Feb 2017 R. 11W6 R. 1W6 R. 15W5 Lower Charlie Lake Regional Play 60 day IP of 344 bopd, 1.29 NE Alberta Inga mmcfpd. BC Montney 15 wells on-stream. Gundy Gas/Cond T85 Minimum 284…
  34. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 34
    34 2H 2017 Significant EP Activity, Step-Out Wells Aug/Sept 2017 Five-six horizontal follow-ups to the Anderson-Lambert-Hinton Cardium gas condensate discovery during the 2H 2017. 16-25 discovery well has now produced 2.3 bcf of…
  35. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 35
    35 Historical Drilling Performance and Cost Improvements Mar 2017 South Deep Basin Peace River High Average Drill Days Average Drill Cost Average Drill Days Average Drill Cost 3.0 35 57% 49% 20 41% 36% 5.0 2.5 30 Decrease…
  36. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 36
    36 Historical Completions Performance Improvements Deep Basin - Completions Peace River High - Completions 3,000 3,500 47% 3,000 72% 2,500 Decrease Since 2012 Decrease Since 2012 2,500 2,000 2,000 000 000 1,500 1,500…
  37. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 37
    37 Tourmaline Vs. US Shale Plays (1) Apr 2016 Tourmaline Tourmaline Marcellus Shale Marcellus Shale Utica Alberta Deep Basin (2) B.C. Montney (2) Liquids Rich Drill, Case, Complete 3.6MM 2.5MM 8.2MM 8.2MM 12.8MM Costs (USD)…
  38. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 38
    38 Hedging Summary 2018 October 2017 2018 Gas Hedges Volume Weighted Avg Price (Jan Dec 2018) mcf/d /mcf(1) Fixed Price Hedges 253,454 Total fixed hedges(mcf/d) Fixed (CDN) (2) (3) 147,961 2.93 Nymex (less AECO diff) (US) 105,493…
  39. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 39
    39 Quarterly Hedge Summary October 2017 Natural Gas Volume Q4 2017 WAVG Price Volume Q1 2018 WAVG Price Volume Q2 2018 WAVG Price Volume Q3 2018 WAVG Price mcf/d /mcf(1) mcf/d /mcf(1) mcf/d /mcf(1) mcf/d /mcf(1) Fixed…
  40. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 40
    40 EP Growth Plan (Original Business Plan) Sept 2008 This is essentially the same business plan that was executed for Duvernay Oil Corp. (2001-2008) Primary growth mechanism will be a conventional EP Program (including Resource…
  41. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 41
    41 Alberta Deep Basin Overview Aug 2016 The Alberta Deep Basin is the largest gas producing sub-basin in Western Canada, with current production of 3.2-3.3 bcf/day. The Alberta Deep Basin and the BC/Ab Montney are Canadas two…
  42. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 42
    42 Alberta Deep Basin: Wilrich Regional Resource Play Apr 2016 R. 9 R. 8 R. 7 R. 6 R. 5 R. 4 R. 3 R. 2 R.1W6M R26,W5M T. 64 T. 64 Kakwa 4-29 Kakwa 13-12/5-12 30 day IP T.20.2 63 mmcfpd 30 day IP 19.2 mmcfpd T. 63 Tourmaline…
  43. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 43
    Alberta Deep Basin: 43 Notikewin/Falher Hz Program Apr 2016 R. 9 R. 8 R. 7 R. 6 R. 5 R. 4 R. 3 R. 2 R.1W6M R26,W5M KakwaT. 649-17 Kakwa 1-7 T. 64 30 day IP 21.8 mmcfpd 30 day IP 16.4 mmcfpd T. 63 T. 63 T. 62 Wild R 3-9…
  44. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 44
    44 Banshee Alberta Gas Plant Simple, easy to construct dew point plants tied to the main TCPL sales system Total cost (2 phases) of 80M, capacity of 130 mmcfpd with enhanced liquids recovery capability
  45. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 45
    45 Tourmaline Environmental Performance Tourmaline strives to continually improve all aspects of environmental performance including the impact of its operations on air, land and water. Tourmaline ranks as a top decile performer…
  46. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 46
    46 BC Water Management 100% of all water flowed back from completion operations is recycled 90% of all water sourced for stimulation operations is recycled 187,000m3 of produced water storage capacity 3 produced water ponds…
  47. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 47
    47 Natural Gas Substitution in Operations Raw Natural Gas cost (Feb 2017) 0.10/DLE (Diesel Equivalent Liter) vs 0.69/L rack price for marked diesel 12 Drilling Rigs and all BC completion operations use a combination of NG/Diesel…
  48. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 48
    48 Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities Cost saving via novel frac water sourcing/recycling Alternative hz frac programs/processes Concurrent pairs, delayed flow-backs etc. Novel drilling…
  49. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 49
    49 Capitalization to Date Insiders Public Total millions of shares Price* millions of shares Price* 2008 Financings Common shares 28.50 5.16 22.00 7.00 301.0 2008 Financings Flow through shares 1.25 10.00 1.25 10.00 25.0 2009…
  50. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 50
    50 Schedule A DRILLING LOCATIONS Estimated Drilling Inventory This presentation discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and…
  51. November 2017 Corporate Presentation – Tourmaline Oil Corp. – slide 51
    51 Schedule A continued Deep Basin Vertical well count : Approximately 2,746 gross prospective sections at approximately 1.5 wells per section minus 10% for areas that are inaccessible or limited by spacing requirements minus…

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