SUSTAINABLE CONVENTIONAL RESOURCE COMPANY TSX: SGY NOVEMBER, 2018
REASONS TO OWN SURGE TSX: SGY Value based with a strong focus on shareholder returns Conventional, large OOIP(1), light/medium gravity crude oil asset base; 85% of production is oil + liquids; low decline of 23%; excellent capital…
CONSISTENT PRODUCTION PER SHARE GROWTH Over the previous nine quarters Surge management has delivered: 48% Production Growth Over the Last 9 Quarters (41% Per Share) 80.0 19,000 75.0 6 week Alliance pipeline outage negatively…
GENERATING SHAREHOLDER RETURNS The foundation for sustainability and the assets to deliver sustainable annual shareholder returns Operating Capital Netback Efficiencies Decline 31 per…
SURGE ASSET BASE HIGHLIGHTS An operational platform to continue to execute on the sustainable growth plus income model Over 2.4 billion net barrels of conventional OOIP under management - with an estimated 6.9% recovery factor(1) to…
PRODUCTION GUIDANCE 2018 UPWARD REVISION & PRELIMINARY 2019 (1) (2) US65 WTI US75 WTI Upwardly Revised Guidance Exit 2018 production (boepd) 22,500 22,500 Average 2019 production (boepd) 23,000 23,000 Exit 2019 production…
OPERATIONS FOCUSED IN 4 CORE AREAS Large OOIP pools in established conventional reservoir trends Greater Sawn: Total: 6,000 boe/d (98% Oil & NGLs) Valhalla: Surge 2018(e) Exit Production: Total: 5,500 boe/d Total: 22,500…
TARGETING CONVENTIONAL RESERVOIRS Surge focuses on reservoirs at the conventional end of the permeability spectrum Recovery factors, internal rates of return (IRR)(1), and profit to investment ratio (PIR)(1) Ultimate Oil…
NET OOIP OF 2.4 BILLION BARRELS Large OOIP, Low recovery factors focused in conventional reservoirs SGY Net CTD(2) Total Booked Net Total Net drilling Estimated Net Avg. WI Oil Independent Recovery Core Area Formations Locations…
CORE CONVENTIONAL RESERVOIRS Applying proven technology to four core conventional plays with excellent reservoir characteristics(1) Slave Point Sparky Valhalla Doig U. Shaunavon (Structural Reefs) Depth 725m Depth 2000m Depth…
GREATER SAWN - CONCENTRATED LIGHT OIL 675 million barrels net OOIP in concentrated Slave Point reservoirs OOIP of 675 million bbls net of light oil (35-42 API) Sawn OOIP: 200 MMbbl net Development inventory of 119 net locations: Red…
OPERATIONAL FOCUS ON HIGH OOIP AREAS Over 600 MMbbls (net) in the Slave Point with a current 6.6% recovery factor Sawn: Multi-Cycle Reef Complex Advanced Completion Technique: Net OOIP: 200 MMbbls (6.6% RF to date) Cemented liner with…
SLAVE POINT HZ AVERAGE IP180s (2011-2018) Well results on the acquired land base indicates higher quality reservoir 180 Recently Acquired Assets Yielding Best Results In Area 160 bopd 160 145 bopd 140 All Wells Single Leg Hz…
SPARKY UNDER-DEVELOPED COMPARED TO SIMILAR RESOURCE TRENDS Surge operates 40% of the horizontal multi-stage frac wells drilled to date in the Sparky Oil Play Comparison Cum oil Recovery of Hz Current Avg. OOIP Play Prod Factor…
SPARKY - SOUTHEAST ALBERTA Oil saturated, stacked Cretaceous sands - Eyehill / Provost / Sounding Lake / Wainwright Wainwright AB SK Over 700 MMbbls of net OOIP (23-31 API oil) ** 550MMbbls of net OOIP in the Sparky** Betty 340…
VALHALLA - NORTHWEST ALBERTA Large OOIP in stacked pay, light oil reservoirs, with working interest ownership in key facilities, and firm service agreements in place Stacked Reservoirs Sexsmith Depth Net OOIP Current 04-08-075-7W6…
SHAUNAVON 425 MMbbl net OOIP on Surge lands in the Upper and Lower Shaunavon Total Shaunavon production (Upper & Lower) is currently over 2,500 bopd Upper Shaunavon net OOIP estimated to be 225 MMbbls 100 net locations (48 booked)…
HIGH QUALITY CRUDE OIL ASSET BASE Positioned for long term sustainability Low base production decline of 23%; high netbacks; excellent capital efficiencies; Dividend of 0.10 / share annually Surge reported a Dividend Payout Ratio…
APPENDIX 21 FOOTNOTES INCLUDED IN THE BACK AS ENDNOTES
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capital program and fund dividends. Below is a list of Surges current hedging…
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capital program and fund dividends. Below is a list of Surges current hedging…
INTEREST RATE HEDGING & CONVERTIBLE DEBENTURE INTEREST RATE HEDGE Notional Amount Surge Type Term Surge Pays Fixed Rate SGY Pays (CAD) Receives Semi-Annual Step Up Beginning at 1.786% Fixed-to-Floating Rate Swap Feb 2018 to Feb…
ANALYST COVERAGE Financial Institution Analyst Email Address Acumen Capital Partners Trevor Reynolds treynoldsacumencapital.com BMO Capital Markets Ray Kwan ray.kwanbmo.com Canaccord Genuity Anthony Petrucci…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bank of Montreal Bankers Syndicate: ATB Financial HSBC Bank Canada Wells Fargo Goldman Sachs BDC…
CAPITAL MANAGEMENT MEASURES Capital Management Measures Dividend Payout Ratio Dividend payout ratio is calculated as the dividends paid for the respective period divided by adjusted funds flow. This capital management measure is used…
NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measure Certain secondary financial measures in this presentation namely, adjusted funds flow are not prescribed by GAAP. This non-GAAP financial measure is included because management uses…
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