A PROUD CANADIAN CLEAN ENERGY PRODUCER FOCUSED ON DEVELOPMENT OF ITS SIGNIFICANT MONTNEY NATURAL GAS AND LIQUIDS RESOURCE Annual General Meeting May 29, 2018
CANADIAN E&P COMPANIES CHALLENGING TIMES BUT 2
THERES MORE THAN MEETS THE EYE WHEN YOU LOOK BEYOND THE NEGATIVE INDUSTRY HEADLINES 3
CANADIAN NATURAL GAS STRIP PRICES REALISTIC OR NOT Are AECO gas prices of Cdn 1.50/GJ to 1.75/GJ for the next 4 to 5 years reasonable 4
CANADIAN NATURAL GAS SUPPLY REQUIRES HIGHER PRICES TO SUSTAIN AND GROW Estimated WCSB Break-Even Prices by Sub-Play (1) Majority of Canadian Gas Plays Require Full Cycle Prices C2.00/mmbtu to Break-Even. Oil and Ultra-rich gas…
ASSOCIATED GAS FROM ONLY OIL AND LIQUIDS-RICH GAS PLAYS CHALLENGED TO REPLACE CANADIAN GAS PRODUCTION DECLINES we believe the decline in natural gas production will offset most of the associated gas from liquids-rich drilling (1)…
NORTH AMERICAN NATURAL GAS DEMAND GROWTH EXPECTED TO OFFSET SMALL SUPPLY IMBALANCE NEAR TERM North American Natural Gas Market Fundamentals 120 Recent 0.5 to 0.7 Bcf/d NGTL receipt 110 swings moved prices 0.00 to 1.80/GJ (implies…
WCSB TRANSPORTATION EGRESS IS GROWING Oilsands 2.0-2.5 Bcf/d of Incremental Westcoast Growth Power egress capacity growth in LNG Generation WCSB 2018-2021 Canadian LNG exports would TCPL East Gate: + 1.7 Bcf/d 2018 - 2021…
POSITIVE CANADIAN ENERGY MESSAGES GAINING TRACTION PUBLIC/POLITICAL SUPPORT & NARRATIVE GROWING 9
ADVANTAGE UPSIDE MORE THAN MEETS THE EYE TCFs of Natural Gas Millions of Barrels of Liquids including C5+, Oil Investment Plan underway to Increase Liquids, Moderate gas Operating flexibility to readily modify capital allocation…
SIGNIFICANT NATURAL GAS AND LIQUIDS UPSIDE ACROSS LAND HOLDINGS 200 net sections (128,000 East Glacier 50-80 Progress First AAV net acres) bbls/mmcf Progress well (LM) 63 bbls/mmcf 110 net sections Progress, Glacier Valhalla,…
EXTENSIVE LIQUIDS-RICH MONTNEY RESOURCE Increasing Total C3+ and C5+/Oil liquids content from East Glacier to Wembley Progress 50-100 bbls/mmcf Only 4% of liquids rich lands have been drilled E Glacier Valhalla 20 to 100…
WEMBLEY/PIPESTONE ULTRA RICH LIQUIDS PRODUCTION R10 R9 R8 Volatile oil area Oil Production Rate (bbl/d) production 625 bopd IP30 - Oil T73 AAV First Wembley Well 12-25 Mid Montney 1,312 boe/d 624 bbls/d free C5+/Oil 819…
VALHALLA LIQUIDS RICH DEVELOPMENT UNDERWAY AAV 4 well pad - 6,410 boe/d (32 mmcf/d gas(1) + 1,075 bbls/d liquids with certain yields up to 100 bbls/mmcf, 90% C5+/oil) 4 well pad Upper & Middle Montney Wells will be production…
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 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) existing…
WELL ECONOMICS ACROSS ADVANTAGE LAND HOLDINGS Half-cycle Economics (1)(2)(3) (AECO Cdn 2.00/mcf & US 60/bbl WTI) ROR% Payout NPV10 Years Breakeven(4) Glacier Dry (Upper & Lower Montney) 33% - 67% 1.7 - 2.8 1.25/mcf East…
INCREASING LIQUIDS STRENGTHENS REVENUE & NETBACKS(1)(2) (SENSITIVITIES + IMPACTS) 1% Liquids increase Liquids Production 10% - 15% 3% to 5% of Total Revenue Impact % of Total Production 6% - 8% 5% - 6% 4.4% 2018 Guidance 2018…
SIGNIFICANT & PROLIFIC LOW COST NATURAL GAS SUPPLY AVAILABLE AT GLACIER PROVIDES OPTIONALITY 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 wells Budget…
MAINTENANCE CAPITAL AND SURPLUS CASH FLOW SENSITIVITY ILLUSTRATIVE AT 280 MMCFE/D (Q4 2018) (NO HEDGING INCLUDED) Capable of Maintaining Annual Surplus Cash CASH FLOW Production at of 100 million 215 Million AECO 1.20/mcf 100…
GLACIER 100% OWNED GAS PLANT SPARE CAPACITY TO PROCESS OUR LAND BLOCKS & EXPANDABLE BEYOND 400 MMCF/D ON EXISTING SITE Expansion to 400 mmcf/d Underway Advantage Gas Plant Alliance Sales Gas Line Room for Additional Expansion…
ENVIRONMENT, SOCIAL, HEALTH & SAFETY COR Certification 97% 98% 96% 98% 98% 98% Sequestered 40,000 tonnes of CO2 emissions (equivalent to 1,300 vehicles) from our CO2 & H2S reinjection process at our Glacier gas plant Top Decile…
ADVANTAGE - LEADING LOW COST NATURAL GAS SUPPLY Select Montney and Marcellus Natural Gas Producers Cash Costs 2018 Estimates (Cdn/mcfe) 2.82 2.39 1.18 (1) (2) (3) AAV Montney Marcellus Operating costs & transportation…
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