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January 2018 Corporate Presentation – Tourmaline Oil Corp.

Tourmaline Oil Corp. · Jan 22, 2018 · 46 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. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 1
    Corporate Presentation January 2018
  2. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 2
    2 Current Status Jan 2018 Production Overview Current production 270,000-275,000 boepd 2018 average production forecast of 270,000-280,000 boepd Current liquid production 48,000 bpd 2017 Exit production target of 270,000-280,000…
  3. January 2018 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. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 4
    4 A History of Full Cycle Profitability Jan 2018 400 6.00 * 350 Earnings before taxes (000,000s) 5.00 AECO (CAD/mcf) Earnings before tax ( millions) 300 4.00 250 AECO (/mcf) 200 3.00 150 2.00 100 1.00…
  5. January 2018 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. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 6
    6 A Significant Liquids Producer Jan 2018 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. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 7
    7 Alberta Deep Basin Jan 2018 T65 R9 R7 R5 Current Production 177,500-182,500 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. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 8
    8 Top 25 New Alberta Gas Wells for October 2017 Dec 2017 Note: Excludes plant condensate & NGLS Source: Peters & Co, GeoSCOUT
  9. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 9
    9 Alberta Deep Basin Liquids Rich Cardium Fairway Dec 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…
  10. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 10
    NEBC Montney Gas Condensate and Peace 10 River High Charlie Lake Oil Core Areas Jan 2018 Current Prod. 92,500-95,000 boepd BC Montney In excess of 4,046 horizontal locations Drilling Inventory* BC Montney Reserves 766.5 mmboe (Jan…
  11. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 11
    11 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…
  12. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 12
    12 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…
  13. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 13
    13 Peace River High Complex Charlie Lake Play Dec 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…
  14. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 14
    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…
  15. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 15
    15 2018/2019 Liquids Growth Projects Jan 2018 Doe 2-11 Sweetening Facility Facility provides capacity for additional liquid rich 3,500 bpd Montney turbidite condensate production (17 wells (Q4 2018) currently shut-in). NW Spirit…
  16. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 16
    16 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…
  17. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 17
    17 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…
  18. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 18
    18 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,…
  19. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 19
    19 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…
  20. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 20
    Continuously Improving Well Performance 20 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…
  21. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 21
    21 Continuous Cost Reduction Strategy Jan 2018 Operating Costs General and Administrative Costs 7.00 6.50 6.34 1.50 1.29 6.00 5.58 1.02 5.50 1.00 /boe /boe 5.00 4.87 0.79 0.74 4.43 4.35 4.37 0.60 4.50 0.45…
  22. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 22
    22 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…
  23. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 23
    23 Balanced Revenue and Cash Flow Streams Through Product, Marketing and Transportation Diversification Jan 2018 2018 Budgeted Revenue 24% Oil AECO 24% NGLs Fixed Price 10% 13% NYMEX- Based Delivery NYMEX 23% Basis…
  24. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 24
    24 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…
  25. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 25
    25 2018 Natural Gas Transportation and Marketing Overview Oct 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 US/Other…
  26. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 26
    26 2017 Highlights/2018 Outlook Jan 2018 Tourmaline now a Senior with production exceeding 270,000 boepd. Tourmaline is currently the second largest producer of Canadian natural gas and will be a top ten Canadian liquids producer…
  27. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 27
    APPENDIX
  28. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 28
    28 Natural Gas Flows From Western Canada
  29. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 29
    29 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…
  30. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 30
    30 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…
  31. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 31
    31 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…
  32. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 32
    32 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…
  33. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 33
    33 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…
  34. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 34
    34 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…
  35. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 35
    Tourmaline Montney 35 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…
  36. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 36
    36 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)…
  37. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 37
    37 Hedging Summary 2018 Oct 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…
  38. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 38
    38 Quarterly Hedge Summary Oct 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 Price…
  39. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 39
    39 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…
  40. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 40
    40 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
  41. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 41
    41 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…
  42. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 42
    42 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…
  43. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 43
    43 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…
  44. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 44
    44 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…
  45. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 45
    45 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…
  46. January 2018 Corporate Presentation – Tourmaline Oil Corp. – slide 46
    47 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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