BIGSTONE PROLIFIC, LIQUIDS RICH MONTNEY Pure play MONTNEY E&P company with WORLD CLASS ASSETS: Successful delineation drilling Grande Prairie Bigstone to the west and south Montney Edmonton Growing condensate production and high…
2H 2018 EXPANDED MONTNEY DRILLING PLANS 00/15-10 Development offsetting 16-10 successful delineation at 02/15-10 West Bigstone: 4 Well Pad 4 well pad 15-4 delineation well 15-4 15-31 development well 15-31 16-31 02/15-19…
WEST BIGSTONE PAD DEVELOPMENT PLAN Approach Focused on capital efficiency and return on capital Capital spending will be varied in response to commodity price Objectives Free Cash Flow by 2020 Reduce debt / cash flow to target…
FOLLOWING UP ON RECENT WEST BIGSTONE SUCCESS Delphi West Bigstone 16-10-60-24W5 10,000 compared to Rich Type Curve to date produced 0.57 bcf 15% more gas than Rich Type Curve Gas (mcf/d) & Field Condensate (bbl/d) 1,000…
2018 GUIDANCE FOR SECOND HALF 2018* * Adjusted for expanded capital program 2018 Second 2018 Full Year 2018 capital program supported by Half Guidance (1) Guidance significant production and cash flow growth Net capital program (…
BIGSTONE MONTNEY GROWTH Montney Production Growth Montney asset growth funded largely through cash flow and non-core asset 10,000 Liquids CAGR 63% dispositions 8,000 Nat. Gas CAGR 50% Life-to-date (LTD) capital includes land…
CONSISTENT ECONOMIC RESERVE GROWTH Montney Development (2012 to 2018) Montney Reserves (mboe) Proved Developed Producing 52 wells (41.1 net) drilled LTD 20,000 Montney Other Reserves (mboe) 2015/16 drilling focused on infill…
NETBACK COMPARISON SELECT MONTNEY PRODUCERS Condensate yields, total liquids content and operating netbacks are among the highest in the Montney Operating netbacks continue to increase as: Focus on liquids-rich West Bigstone Low…
BUILT A DOMINANT LAND POSITION Largest Land Position at Bigstone Montney land base has grown to 170 gross sections (111 net) from 4 sections in 2011 Significant land position allows for efficient operations, control over…
BIGSTONE INFRASTRUCTURE FULLY INTEGRATED Amine plant commissioned in Q2/18 and sending sweetened Montney gas to Bigstone 14-28 natural gas plant (25% Delphi working interest) West Bigstone 16-10 well producing to 100%…
7-11 AMINE PLANT ON-STREAM Delphi 17 mmcf/d amine plant to sweeten Delphi Montney sour gas 52 mmcf/d sour dehydration and compression facility November 2018 12
BIGSTONE SWEET GAS PROCESSING PLANT Repsol / Delphi sweet natural gas processing plant Delphi 25% working interest 85 mmcf/d capacity significantly underutilized Now processing amine sweetened Montney gas Material operating…
NEW AMINE PLANT IMPROVES CASH NETBACK Commissioned April 2018 Up to 17 mmcf/d (11 net) of raw gas Cash flow increases by about 0.60/mcf(1) on amine sweetened gas sold on AECO Cash flow impact increases to 0.80/mcf once…
SECURE MARKET ACCESS FOR GROWTH Delphi/Alliance Contracted Transportation Full Path Service to Chicago Service (mmcf/d) Alliance 57 mmcf/d of firm and priority interruptible service Access to premium pricing via Chicago City…
GAS MARKETING IN 2H 2018 Approximately 60% of natural gas sold in Chicago generating Natural Gas Sales by Market (1) significantly higher pricing than AECO. AECO exposure is hedged through marketing income earned on excess Alliance…
CONTRACTED ALLIANCE SERVICE IS A VALUABLE ASSET Delphis Alliance service worth approximately 32 million (1) The undiscounted value of the arbitrage between AECO and Chicago netback prices available through Delphis Alliance service…
PROVEN RISK MANAGEMENT PROGRAM Commodity Hedges Q4 2018 2019 2020 Consistent Hedge Performance Natural gas (mmcf/d) 17.4 15.0 3.7 Average hedge price (C/mcf)(2) 3.64 3.47 3.45 Majority of near term production is % of natural gas…
UNDERSTANDING RESULTS OF EVOLVING FRAC DESIGN Montney Frac Generation Design Evolution 1,800 Gen 6 1,600 Evolution to significantly more West Bigstone sand moving to West Bigstone 1,400 Gen 5 Sand Lb/ft 1,200 More at West -…
MONTNEY ECONOMIC MODEL Bigstone Montney Toe Up Two Section Horizontal Hypothetical Type Wells 30+ stage Slickwater Completion Economics/Metrics - Flat Pricing: WTI US65/bbl, NYMEX US2.80/mmbtu Type Rich Type Well Well Payout yrs…
INCREASING CONDENSATE YIELDS Condensate Gas Ratios Significantly Greater in West Bigstone with Frac Design Changes Delphi Bigstone Montney - IP180 CGR vs. IP30 CGR 250 West Type Well - Stabilized CGR Type Well - Stabilized CGR…
INCREASING NETBACKS Corporate netbacks increase with addition of higher condensate yield wells Impact of Production Composition on IP90 Operating % Change Netback for Bigstone Montney(1) West vs East 50.00 Revenue 25% 45.00…
APPENDIX November 2018 25
INDIVIDUAL MONTNEY WELL DATA Initial Production (IP) Rate Well Performance (1) Well(2) Frac Design Horizontal Number IP30 IP90 IP180 IP365 Generation Length of Fracs Total Sales Field Condy Total Sales Field Condy Total Sales Field…
2300, 333 7th Avenue SW Calgary, Alberta T2P 2Z1 P (403) 265-6171 F (403) 265-6207 infodelphienergy.ca www.delphienergy.ca November 2018 27
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