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INVESTOR UPDATE – Long Run Exploration Ltd.

Long Run Exploration Ltd. · Nov 1, 2014 · 30 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. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 1
    INVESTOR UPDATE NOVEMBER 2014 1
  2. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 2
    LONG RUN PROFILE 38,250 Boe/d TSX: LRE Average October producIon (esImated) Listed on the Toronto Balanced between oil and natural gas Stock Exchange 0.42/share/year Dividend 0.035/share/month 193.5 million 13 years…
  3. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 3
    CORPORATE STRATEGY Provide long-term value to shareholders through a sustainable dividend model PrioriIze dividend protecJon Focus on operaJonal eciency and capital discipline Maintain balanced producIon mix and…
  4. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 4
    BUSINESS PLAN Focus on strong capital eciencies within porbolio of properIes Improve recycle raIo through capital and operaIonal cost control ProacIve hedging program to miIgate commodity price downside risk Fund dividends…
  5. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 5
    LONG RUN KEY VALUE DRIVERS Diversied asset base within the Western Canadian Sedimentary Basin; balanced between oil and natural gas producIon Asset base well posiIoned to support sustainable dividend model without a…
  6. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 6
    KEY HIGHLIGHTS 2014 Successful dividend implementaIon in January 2014 and 5% dividend increase in June 2014 Issued 75 million in converIble debentures in January 2014 Acquired Deep Basin Cardium properIes in May 2014…
  7. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 7
    ASSET BASE October 2014 Produc0on (es0mated) Peace River Area Montney oil 13,850 Boe/d Northern Gas (55% Oil & NGLs) (Bluesky) ALBERTA Edmonton Area Viking oil Peace River Area 8,200 Boe/d (Montney) (60% Oil…
  8. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 8
    PEACE RIVER Normandville & Girouxville ALBERTA Montney horizontal oil development 950m verIcal depth October esImated producIon of 11,100 Normandville Boe/d (60% oil and NGLs) T78 Medium gravity oil (28o API) Key…
  9. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 9
    DEEP BASIN Pine Creek/Edson Cardium horizontal light oil development ALBERTA 1,800m - 1,900m verIcal depth Bluesky horizontal liquids-rich natural gas development Pine Creek 2,400m verIcal depth T55 October esImated…
  10. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 10
    DEEP BASIN Kakwa/Wapi0 Cardium horizontal liquids-rich ALBERTA natural gas 1,000m - 1,600m verIcal depth October esImated producIon of 3,950 Boe/d (30% liquids) Liquids or NGL content of 40-50 T68 Bbl/Mmcf…
  11. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 11
    EDMONTON AREA Redwater ALBERTA Viking horizontal oil development 700m verIcal depth October esImated producIon of 4,700 Boe/d (85% liquids) Light oil (38o API) T58 Key infrastructure in place Redwater EOR…
  12. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 12
    BOYER Bluesky natural gas ALBERTA 200m - 500m verIcal depth October esImated producIon of 2,900 Boe/d (100% natural gas) Shallow decline (8%/year) T108 690,000 net acres Current drilling density less than 1.5 wells…
  13. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 13
    CORE AREA OVERVIEW Peace River Deep Basin Redwater Long Run Deep Basin Northern Gas (Normandville Pine Creek/ (Redwater & Combined Kakwa/WapiJ (Boyer) & Girouxville) Edson Bruderheim) (incl. minors) October esImated 2,900…
  14. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 14
    CORE AREA WELL PARAMETERS Peace River Deep Basin Deep Basin Redwater Montney Pine Creek Cardium Kakwa Cardium Viking 190 334 413 72 IP 30 (Boe/d) (63% liquids) (58% liquids) (20% liquids) (90% liquids) 105 175 265 35…
  15. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 15
    TYPE CURVES 250 Peace River Montney Type Curve 80 Redwater Viking Type Curve 200 ProducJon (Boe/d) 60 ProducJon (Boe/d) 150 40 100 20 50 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22…
  16. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 16
    ENHANCED OIL RECOVERY (EOR) Waterood Major oil projects under wateroods Current Waterood Pilots of Area FormaJon Pilot Start Date Comments Injectors Cost eecIve reserve addiIons Proceeding with EOR Normandville…
  17. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 17
    CORPORATE GUIDANCE Original guidance impacted by unscheduled third party plant and facility restricIons 2014 Updated Guidance (at November 5, 2014)(1)(2) AnIcipate ongoing restricIons will ProducIon average (Boe/d) 31,400…
  18. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 18
    APPENDIX 18
  19. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 19
    2014 FORECAST NET CAPITAL SPENDING 2014 Capital Expenditures million Development Capital 285 Net AcquisiJons (DisposiJons) (26) Net Capital Expenditures 259 Capital Expenditures by Area Peace River Capital Expenditures by…
  20. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 20
    NETBACKS BY AREA Peace River Deep Basin Redwater Northern Montney Cardium Viking Gas Total October EsJmated 13,850 11,150 8,200 2,900 38,250 ProducJon (Boe/d) % Liquids 55% 30% 60% - 45% Oil Quality 28 API 42 API 38…
  21. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 21
    RISK MANAGEMENT Costless Collars Volume Pricing October 1, 2014 December 31, 2014 2,000 Bbl/day WTI US 88.00 - 92.50/Bbl October 1, 2014 December 31, 2014 2,000 Bbl/day WTI US 88.00 - 92.60/Bbl Financial hedges miIgate October…
  22. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 22
    A&D TRANSACTIONS ACQUISITIONS DIVESTITURES Total Cost ProducJon Total Proceeds ProducJon Date Area Date Area (MM) (Boe/d) (MM) (Boe/d) West Central March 2013 Cherhill 13.9 600 December 2012 175.9 1,900 Saskatchewan…
  23. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 23
    PEACE RIVER MONTNEY Normandville/Girouxville ALBERTA Current development focus Normandville T78 areas are Normandville and Montney Subcrop Girouxville Montney oil Normandville Oil Balery 5,000 bopd IniIated…
  24. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 24
    DEEP BASIN CARDIUM Pine Creek/Edson ALBERTA Pine Creek Low risk oil development 13-09 LRE Balery/ Compressor StaJon 6,500 boe/d T55 upside at Pine Creek ExploraIon upside at 13-19 LRE MulJwell Oil Balery 1,200…
  25. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 25
    REDWATER VIKING 07-21 Redwater North Oil Balery 5,000 bbls/d 4.0 mmcf/d T59 05-17 Redwater North Viking oil horizontal mulI-frac Compressor StaJon 4.5 mmcf/d Redwater T58 play 06-11 Eastgate Gas Plant 1.0 mmcf/d T57…
  26. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 26
    CHERHILL Emerging Play ALBERTA Primarily targeIng Ban and Lower T60 Mannville formaIons True verIcal depth of 1,000 - 1,500 meters T58 October esImated producIon of 1,000 Boe/d (45% oil and NGLs) primarily from…
  27. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 27
    TAX POOLS Maximum Annual DeducIon Millions Tax Pools Capital Cost Allowance (UCC) Up to 25% 370 Canadian Oil & Gas Property Expense (COGPE) Up to 10% 440 Canadian Development Expense (CDE) Up to 30% 630 Canadian…
  28. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 28
    RESERVES SUMMARY WORKING INTEREST RESERVES (12/31/2013) Oil Gas NGL Total NPV00 NPV10 NPV15 FDC MBbls MMcf MBbls MBoe M M M M LRE(1) PDP 12,997 130,593 2,310 37,073 923,929 691,192 620,982 - TP 24,676 207,633 3,411 62,692…
  29. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 29
    RESEARCH COVERAGE INSTITUTION ANALYST BMO Capital Markets Jim Byrne Canaccord Genuity Anthony Petrucci CIBC World Markets Adam Gill Clarus SecuriIes Inc. Robert Par Cormark SecuriIes Amir Arif Dundee Capital Markets Chad…
  30. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 30
    CORPORATE INFORMATION TSX:LRE Contacts Bill Andrew Chair & CEO (403) 261-6012 Dale Miller President (403) 261-6012 Corine Busheld Vice President, Finance & CFO (403) 261-6012 Dale Orton Senior Vice President, OperaIons…

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