TVE: TSX-V www.tamarackvalley.ca Establishing Top Tier Sustainable Growth November 2014 1
Key Points in this Presentation With recent oil price declines, TVEs focus has been to continue to cut operating and capital costs to maintain one year payouts TVE utilized corporate hedging policy: hedged maximum allowed volume at…
The Tamarack Team Management Board of Directors Brian Schmidt, President & CEO Floyd Price, Chairman Current: CAPP Vice-Chair, IOGC Board Member Current Directorships: Cimarex Energy, Former: Spearpoint Energy (President), Source…
Tamaracks Strategy 1. Select the Right Real Estate Non - Select high hydrocarbon in place Resource Play Conventional (4 mmboe or 25 bcf per section) Tamarack Tight Sands (Cardium, Viking, Demonstrate success in analogs Deep…
Tamarack Perspective and Culture 1. Build a sustainable, predictable and reliable growth company Full cycle rate of return driven Development inventory with payout 1 to 1.5 years maximum (top quartile in the industry) Clear line of…
Year Over Year Delivery Approx. 30% 14000 Completed Wilson decline in oil 0.45 Completed Completed Creek acquisition & Oil & liquids Sure Energy 60 mm equity prices 125 mm equity 0.40 Natural gas acquisition financing 12000…
Premier Oil Areas Repeatable, Sustainable, Scalable Viking Oil greater Redwater area Existing TVE Core Areas Play 4 Location confidential 40 net sections Q3/14 Production 1,200+ boe/d 190 million barrels OOIP Netback 58-63/boe 60%…
Why Wilson Creek is a Premier Acquisition 5000 millions Base Phase 1 Phase 2 Purchase price 168.5 4000 Phase 1 capex (14 wells Q4/14 & Q1/15) 42.0 Phase 2 Drilling Production (boe/d) Infrastructure value (20.0) 3000 (replacement…
West Central Cardium Summary Accretive Wilson Creek acquisition adds top tier drilling inventory and key facility infrastructure 2014 Farm-in increased net prospective Greater Cardium sections by 900% (132 net Pembina sections)…
Wilson Creek Tamarack Activity and Acquisition Scope Tamarack Program Alder Flats 9-33 currently TVE land Activity has been accelerated with producing at restricted Tuck-in land 9 wells drilled and 10 by end of Q3 rates; June test…
Wilson Creek Acquisition Infrastructure TVE land Tuck-in land Acquisition land Cardium rights Acquisition land No Cardium rights Legacy TVE wells and Existing Cardium producers acquired wells will enjoy Existing vertical Cardium…
Suncor Wilson Creek Acquisition Lifting Costs Wilson Creek Production (Suncor only) 4-14 Battery Production Monthly Opex BOE/D /BOE 100 300 Pre AQN 877,657 1,666 17.56 90 TVE Q4e 755,369 2,212 11.38 250 80 TVE 2015e 1,048,086…
Cutting Costs with Infrastructure Advantage 21,000 m3 TDL Fresh Water Surface Irrigation TVE 6,000 m3 TDL Lines Fresh 4.5 km Water 1.0 km km 15,000 m3 pit 0.8 km Battery Site Well Heads 0.4 km C Ring Well Heads Well…
Wilson Creek - Drilling & Completion TVE Advantage Drilling Cost Per Meter Completion Cost Per Stage 700 100 600 532 19% 33% 72 000s per stage 500 469 75 431 64 per meter 400 376 48 50 300 38 200 1.5 mile…
Brazeau & Blue Rapids Pad drilling in Blue On prodn Apr/14 TVE farm-in lands Increased working interest Rapids enabled fracing Hz well and drilling through Both wells on Licensing Oil well spring break up 2014 prodn mid-July…
Growth in Cardium / Viking Drilling Inventory Includes Only Low Risk Locations (85% COS) 600 Wells booked in 2P reserves Total Risked Upside Drilling Locations Risked drilling locations Over 6-8 years of development drilling 500…
Building Credibility - Six Month Review What we said we would do What we did in Objectives for Q214 / Q314 Q214 / Q3 14 Q4 2014 / Q1 2015 Produce 4,700 boe/d average for H1/14; Averaged 4,696 boe/d H1/14; will Exit Q4 /14 9,500…
Why Buy Tamarack Resilient in low commodity price environment Preserve D/CF with capital discipline ROR on drilling preserved by cost cutting less than one year payback Can grow production and strengthen balance sheet at current…
TVE Contact Information Tamarack Valley Energy 3100, 250 6th Avenue SW Calgary AB T2P 3Y7 Tel: 403.263.4440 www.tamarackvalley.ca infotamarackvalley.ca 20
Appendix 21
Current Hedges as at October 9, 2014 Term Hedge type Counterparty Volume Pricing October 1, 2014 to October 31, 2014 WTI fixed price Macquarie Bank 1,200 bbls/d Cdn 97.85/bbl November 1, 2014 to December 31, 2014 WTI fixed price…
Building Credibility - Six Month Review What we said we would do What we did in Objectives for Q413 / Q114 Q4 2013 Q2 / Q3 2014 Produce 4,050+ boe/d average Achieved 2013 production guidance and Produce 4,700 boe/d average for…
Building Credibility - Six Month Review What we said we would do What we did Objectives for Q2/Q3 2013 Q2/Q3 2013 Q413 / Q114 Live within means, keep debt/CF Achieved YE target: Debt/CF dropped to Produce 4,050+ boe/d average for…
Building Credibility - Six Month Review What we said wed do for Q4/12 to Q1/13 What we did Q4/12 to Q1/13 Live within means keep debt at acceptable levels Focused drilling on wells…
Wilson Creek Transaction Rationale Accretive capture of premier Cardium land position contiguous to existing Tamarack lands, creates seamless integration Leveraging Tamarack advantage Driven CAPEX per well down while achieving top…
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