OUTLINE 1. Company Strategy 2. Light Oil Bakken/Torquay, Antler, Saskatchewan 3. Liquids-Rich Montney, Kakwa-Resthaven, Alberta 4. Oil Shale 5. St. Lawrence Lowlands, Quebec 6. Outlook 2
COMPANY STRATEGY Leverage extensive tight rock/shale rock expertise to acquire tight resources early and develop reserves First mover in shale gas acquired acreage in Quebec almost 5 years ahead of industry Invited speakers at domestic…
VALUE CREATION Portfolio to create value in the short, medium, and long term 4
ASSET OVERVIEW SE Saskatchewan/ SW Manitoba Proven Torquay/Spearfish tight oil production with strong netbacks Western Alberta Liquids-rich Montney natural gas resource play with exceptional economics Utah & Wyoming Oil shale…
FINANCIAL & OPERATIONAL OVERVIEW Operating and Financial Results Capitalization and Liquidity For the 6 months ended June 30, 2014 16.9 million (Sept 5, 2014) 300 million Nil 8.6 million 23,385,617 9% 241,546,674 91% 991…
ANTLER 7
Questerre Pool ANTLER HIGH NETBACK Bakken/Torquay tight oil play NPV-10/bbl of 38.48/bbl based on 2P reserves of 1.8 million Adjacent Pool barrels and 69 million NPV-10 as at December 31, 2013(1) 2014 YTD netbacks of 83/bbl based…
KAKWA-RESTHAVEN 9
LIQUIDS-RICH MONTNEY Montney play is approximately 500 km long by 90 km wide One of the largest oil and gas fields in world Gas, oil and liquids-rich windows similar to Eagleford shale in Texas Production in liquids-rich…
THE SWEET SPOT Sweet spot of the play is overpressured, liquids-rich area High liquids, particularly condensate key to robust play economics Questerre has built a significant land position in the sweet spot of this fairway Acquired…
Wellhead Condensate Rate bbls/MMcf PROVEN DEVELOPMENT AREA 10 wells drilled and tested at rates of 800 to 2,500 boe/d Liquids rates from first wells have averaged 140-190 bbls/MMcf over 2013 Economic Sensitivities Robust economics…
MOVING UP THE LEARNING CURVE Days from Spud versus Measured Depth Days From Spud Drilling and Completion Costs per Meter of Horizontal Length 0 4 9 14 19 24 29 34 39 44 49 54 59 64 16000 - M/Meter of Hoirzontal Length 14000…
MONTNEY GROWTH POTENTIAL Questerre wells to date have targeted one of three prospective intervals in the Montney All wells tested the Middle Montney (D2 unit) with condensate rates of 150 bbls/MMcf First Upper Montney well (D4 unit)…
RECENT ACTIVITY Operated Acreage Kakwa South 16-07 well tests at 828 boe/d - 3.5 MMcf/d and 70 bbls/MMcf of liquids and less than 0.003% H2S Well is being tied-in and should be on production in Q4 2014 Next licensed well has a…
ILLUSTRATIVE DEVELOPMENT PROGRAM Illustrative Cash Flow Illustrative growth based on meeting 20 MMcf/d + liquids of firm processing capacity by mid-late 2015 Initial capital investment of 80 million-100 million required in late…
SUMMARY Illustrative cash flow Strong Economics - High condensate rates from wells in sweet spot (100 bbls/MMcf+) contribute to initial type wells with 2P reserves of 1 mmboe and NPV-10 of 14 million Wells with condensate rates of…
LOOKING FORWARD Drill up to two more wells on 100% acreage in 2014 and up to six in 2015 Contracting new triple rig for 100% acreage - next well expected to spud in September and continue drilling based on results Drill up to two more…
OIL SHALE 20
OIL SHALE Major resource on cusp of commercial development Estimated 2.8-3.1 trillion barrels in place worldwide with 2.1 trillion located in the United States(1) Questerre has an indirect interest in a US400 million joint venture…
ECOSHALE Field work underway to build mine and first commercial-scale capsule Total and Red Leaf have approved updated budget and final permits received Construction work scheduled for completion by Q4 2015 and first oil produced by…
Pasquia Hills, Saskatchewan QUESTERRE PROJECTS Expanded 100% land position to 48,000 high-graded acres First phase of resource report completed with oil in place estimated at over 2 billion barrels Currently assessing resources that…
ST. LAWRENCE LOWLANDS 24
ST. LAWRENCE LOWLANDS Best estimate of 18 Tcf of prospective resource on acreage 4.4 Tcf net to Questerre(1) Approximately 50% shallower than Montney formation Premium gas market - Natural gas prices 2X prices in Western Canada…
New majority government announces action plan for hydrocarbon development in Quebec Commitment to introduce new oil and gas legislation by fall of 2015 Government to invest 45 million in 2014 in oil exploration activities on Anticosti…
MOVING IN THE RIGHT DIRECTION Questerre building partnership between government and industry to resuming field work on shale gas discovery in next 12-18 months Pilot project being proposed to capitalize on winter and remote natural gas…
OUTLOOK 28
OUTLOOK Continue Montney drilling program towards target of 6,000 boe/d by mid-late 2015 Contracting new triple rig to drill up to 2 more wells on 100% acreage in 2014 and up to 6 in 2015 First Kakwa North well being completed now with…
MANAGEMENT & BOARD Board Management Michael Binnion, President & Chief Executive Officer Michael Binnion, President & Chief Executive Officer Peder Paus, Chairman Merchant banking experience Conventional Asset Team Former Managing…
APPENDIX 33
KAKWA MARKET ACCESS New energy paradigm makes access to customers a critical path item 140 bbl 100/bbl (90%-100%+ of WTI/bbl) Questerre strategy is to secure access to all 5 bbl 100/bbl aspects of value chain (90%-100%+ of…
ECOSHALE Innovative approach that moves the process to the rocks instead of moving the rocks to the process Incorporates benefits and avoids challenges of both surface and subsurface processes Dramatically improves economics…
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