Well Results at Valhalla, Wembley and Progress Confirm A Significant & Growing Liquids Rich Drill Inventory. First Wembley Well with Liquids Yield up to 277 bbls/mmcf & Condensate Yields up to 211 bbls/mmcf Investor Presentation TSX /…
ADVANTAGE AT A GLANCE TSX 52-week trading range 3.48 - 9.29 Shares Outstanding (basic) 186 million Market Capitalization 0.7 billion 2017 Production (16% Growth) 236 mmcfe/d (39,315 boe/d) Operating Costs (7% Reduction)…
MONTNEY LANDS PROVIDE NATURAL GAS AND LIQUIDS DEVELOPMENT FOR DECADES - TOTAL 200 NET SECTIONS (128,000 ACRES) Alberta Only 4% of our liquids B.C. rich lands have been drilled First Montney well 624 Progress Total 110 net…
OUR STRATEGY VALUE CREATION THROUGH DISCIPLINED CAPITAL INVESTMENT World Class Montney Asset Operating Own & Operate 100% Flexibility Plant & Infrastructure VALUE CREATION Financial Flexibility - Industry Leading Low…
SIGNIFICANT OPTIONALITY FOR 2018 AND BEYOND THROUGH FINANCIAL & OPERATIONAL FLEXIBILITY (1) 28% % of 2018 Revenue exposed to AECO prices FINANCIAL 37% % of 2018 Production Hedged at average Cdn 3.21/mcf 1.10 Cdn/mcfe Total…
2018 BUDGET FOCUSES ON LIQUIDS GROWTH & RETAINS FLEXIBLITY ( million) 30 145 2018 Highlights (1) (2) 175 to 200 Million Cash Flow & Positive Income 1.0 to 1.3x Year-end 2018 Total Debt/Cash Flow Glacier Valhalla, Wembley,…
2018 BUDGET AT A GLANCE Annual Average Production Liquids Production Capital Expenditures (mmcfe/d) (bbls/d) ( million) 2,400 249 10% 260 -30% 236 1,900 203 16% 56% 175 33% 128 1,218 915 2016 2017 2018E 2016 2017 2018E…
STRONG NATURAL GAS FIXED PRICE HEDGES /Mcf Cdn 61% 3.18 5% % of estimated natural gas 4.42 production , net of royalties 37% 3.21 56% 12% 3.08 3.67 17% 2.89 25% 2% 2.99 4.01 15% 2.71 2018 Q1 2018 Calendar 2019…
MARKET & REVENUE DIVERSIFICATION - 28% REVENUE EXPOSURE TO AECO PRICES IN 2018(1) A 0.25/mcf change in the average AECO price for a full year impacts cash flow by approximately 10 million and impacts Year End Total Debt/Cash Flow by…
NATURAL GAS TRANSPORTATION SERVICE & ADDITIONAL MARKET DIVERSIFICATION IN PLACE TCPL Transportation Service 393 mmcf/d as of April, 2021 Increasing firm service secured to 2021 Ability to reduce future total service commitments…
INDUSTRY LEADING LOW COSTS GENERATES STRONG NETBACK MARGINS AMONGST DRY OR LIQUIDS RICH GAS PRODUCERS 2017 Total Cash Costs Including PDP FD&A 2017 Netbacks Percentage of Revenue 6.00 5.00 73% 66% 4.00 58% /mcfe 51% 52%…
MAINTENANCE CAPITAL AND SURPLUS CASH FLOW SENSITIVITY ILLUSTRATIVE AT 280 MMCFE/D (Q4 2018) (NO HEDGING INCLUDED) 3 Year Cumulative Surplus 300 million Surplus Cash Flow Above 215 Million 1.20/mcf Cash Surplus MAINTENANCE CASH…
ONGOING VALUE CREATION FROM OUR HIGH QUALITY ASSETS THROUGH OPERATIONAL EXCELLENCE 13
ADVANTAGES LAND BLOCKS ARE IN A LIQUIDS RICH MONTNEY FAIRWAY CONFIRMATION THROUGH RECENT DRILLING SUCCESSES Glacier Progress Valhalla Wembley Progress Upper Montney (Dry at Glacier to C3+ 40 bbls/mmcf at Valhalla) Glacier…
LIQUIDS RICH MIDDLE MONTNEY RESOURCE PLAY EVOLUTION Early 2013 - Advantage 2017/18 AAV Confirms High Liquids Discovers MM liquids in Area Yields & Wellhead (Free) C5+/Oil on New Land Blocks First AAV Progress well (LM) Initial 76…
WEMBLEY FIRST DELINEATION WELL C3+ LIQUIDS YIELD OF 277 BBLS/MMCF R9 R8 R7 Advantages First Delineation Well 12-25-72-8w6 CNQ: On 2017/06 Cum Oil: Lateral Length 2,254 meters 67,000 bbls to 2017/11 38 frac stages T73 (5…
PROGRESS FIRST DELINEATION WELL C3+ LIQUIDS YIELD OF 63 BBLS/MMCF R10 R9 R8 On 2016/08 Advantages First Delineation Cum Oil: 101,000 bbls to Well 13-31-77-9W6 Kelt CNRL 2017/12 T78 Oilwells (17 months) Gaswells Lateral Length…
AREA INFRASTRUCTURE PLANNING Alberta B.C. Progress 100% owned Glacier Gas Plant, 400 mmcf/d Glacier & 6,800 bbls/d liquids 16km (10 MILES) New Compressor and Valhalla Liquids Handling AAV 100% owned Facility (Q4 2018)…
SIGNIFICANT AND GROWING LIQUIDS & DRY GAS DRILLING INVENTORY Proved Developed Multi-Layer Montney Development Wells by Layer(3) Potential across Advantage Land Blocks TOTAL 197 Lower Middle 51 31 Upper 115 337 2P Reserves…
LIQUIDS RICH EXPERTISE DEVELOPED AT GLACIER BENEFITS ALL ADVANTAGE LAND BLOCKS Recent Glacier Middle Montney Well Results (1) Increased frac stages & customized completion designs continue to 8.4 mmcf/d improve well performance…
DRY GAS EXPERTISE CONTINUES TO IMPROVE WELL ECONOMIC THRESHOLDS AT GLACIER 8 WELL PILOT PAD ON-PROD 2016 1.3 year payout at Cdn Wells producing at 10 mmcf/d after 365 2.00/mcf gas price days exceeding type curve Top Tier LM…
LIQUIDS RICH EAST GLACIER MIDDLE MONTNEY WELL ECONOMIC (1) SENSITIVITY Middle Montney at 50 bbls/mmcf C3+ (2) Break-even below 1.50 Cdn gas price at U.S. 55/bbl WTI (3) (1) Management estimates. NPV 10% pre-tax. (2)…
DRY GAS GLACIER UPPER & LOWER MONTNEY WELL ECONOMIC SENSITIVITY(1) Upper & Lower Montney Dry Gas (2) Break-even approximately 1.50/mcf Cdn with top tier Glacier dry gas wells (3) (1) Management estimates. NPV 10%…
GLACIER DRY GAS VS LIQUIDS RICH WELL ECONOMIC COMPARISON(1) Dry Gas vs Liquids Rich (2)…
GROWTH BEYOND 400 MMCF/D CAN BE ACCOMMODATED ON EXISTING PLANT SITE 100% Owned Glacier Gas Plant Positioned for Production Ramp-up Advantage Gas Plant Alliance Sales Gas Line Room for Additional Expansion Beyond 400 mmcf/d Expanding…
Clear Vision for Growth Financial Strength Proven Expertise
APPENDIX
2018 BUDGET & GUIDANCE RANGE Average Annual Production 255 to 265 mmcfe/d (42,500 to 44, 170 boe/d) Liquids Annual 1,900 bbls/d Liquids Exit 2,400 bbls/d Royalty Rate 3% to 5% Operating Costs (/mcfe) 0.25 to 0.29 Transportation Costs…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Up…
ADVANTAGE - LEADING LOW COST NATURAL GAS SUPPLY Select Montney and Marcellus Natural Gas Producers Cash Costs 2018 Estimates (Cdn/mcfe) 2.77 Cdn /Mcfe 2.56 1.10 (1) (2) (3) AAV Montney Marcellus Operating costs &…
RETURN ON AVERAGE CAPITAL EMPLOYED COMPARISON 5-YEAR AVERAGE (2013 TO 2017 ESTIMATE) Advantage Montney Development After tax 5.6% Before tax 7.9% Peers Average 1.4% Comparative data is shown Cdn Large Caps Average 5.2% on an…
CONTINUOUS IMPROVEMENT HAS CREATED INDUSTRY LEADING EFFICIENCIES Production restrictions 32
LIQUIDS RICH GLACIER MIDDLE MONTNEY WELL PERFORMANCE IMPROVEMENTS SINCE 2011 Recent well initial production test rate 2015+ Middle Montney wells with frac design changes including 20 frac stages & numerous mechanical systems to be…
DRY GAS GLACIER UPPER AND LOWER MONTNEY WELLS - IMPROVING PERFORMANCE SINCE 2008 Production restrictions Budget Type Curve (IP30 7.5 mmcf/d & 7.5 Bcf) Data: updated to December, 2017 34
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Glacier - 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Developed Undeveloped Total Developed Undeveloped Total Interval YE YE YE YE YE YE YE YE YE YE YE…
ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on NYSE and TSX: AAV Advantage Oil & Gas Ltd. Suite 300, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main:…
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