Strategic Combination Establishing the Premier Pure-Play Pipestone Montney Company Sustainable long-term condensate growth OCTOBER 2018
Funded growth and increased scale Blackbird Energy Inc. (Blackbird) and Pipestone Oil Corp. (Pipestone Oil) have agreed to combine to form Pipestone Energy Corp. (Pipestone Energy) Pro forma ownership of 45.1% for Pipestone Oil…
Strategic rationale for Blackbird Unique opportunity to enhance Blackbird shareholder exposure to top-tier Montney assets and secure 310 million in equity and debt financing (the Financings) to fund development Superior Market…
Introducing Pipestone Energy Corp. Canadas newest intermediate condensate-rich producer Transformative Business Combination Pro Forma Perspectives Exit 2019E Net Montney Sales Processing 2P Reserves (1) Business Combination…
Experienced management and board Pipestone Energy will have leadership continuity through board representation and will be led by a team with extensive experience in the Grande Prairie region Board of Directors Leadership Team…
Investment highlights of Pipestone Energy A premier high growth pure-play condensate rich Montney company Dominant pure-play Pipestone Montney company in the sweet spot of the condensate fairway Over 98,000 net acres of contiguous…
The perfect fit Combination of highly complementary acreage creates pure-play Pipestone Montney company with the largest land holding in the area Pipestone Montney Area Map Pipestone Montney Acreage Holders (1) of sections in the…
Consistent geology Across Pipestone Energys land base, the Montney is thick, high quality, and laterally continuous with four prospective development layers Pipestone Area Cross Section Encana Pipestone Energy Tested by offset…
In the sweet spot 173 gross sections of contiguous lands, all located in the super condensate trend Large scale new investment in regional natural gas and liquids processing capacity by high quality midstream operators…
Strong recent well results to date Average last 24-hour test results from Pipestone Oil wells in the Montney B of 2,200 boe/d (50% C5+), and first Montney C test of 1,300 boe/d (19% C5+) Recent Well Test Results (1) Pipestone Energy…
Supportive offset well performance Pipestone Montney operators have demonstrated very strong natural gas productivity with high condensate gas ratios Pipestone Montney Very Rich Gas Condensate Historical Well Results Calendar Day…
Attractive type curve economics Pipestone Montney wells deliver highly competitive half-cycle returns with forecasted paybacks of 13 months and IRRs of 95% Pipestone Very Rich Gas Condensate (Montney B) Type Curve Economics…
Significant reserves & resource recognition Pipestone Energy has 165 MMboe of 2P reserves (47% liquids) and 221 MMboe of Best Estimate Contingent resource (46% liquids) Condensate Total Volume / Oil NGLs Liquids NPV 10% (B-Tax)…
Decades of drilling inventory Up to 1,450 potential remaining wells in inventory, providing decades of condensate-rich development potential and free cash flow generation for investors Future Development Locations Multiple Layers…
Processing and egress solutions Pipestone Energy has diversified processing and egress solutions in place Processing Capacity Egress Tidewater Pipestone Montney Gas Plant Alliance Keyera Wapiti Gas Plant Blackbird has firm access…
Positioned for significant long-term growth Pipestone Energy has natural gas and egress solutions confirmed to support 30,000 boe/d by 2022 Sales Gas (MMcf/d) (1) 150 TCPL Alliance Pipestone Energy has firm Tidewater Pipestone…
Pipestone Energy Corp. Strategic combination of two neighbouring, contiguous Pipestone Montney assets under a single well-capitalized, high growth company + Dominant pure-play Pipestone Montney company in the sweet spot of the…
Capitalized to grow to 14,000 boe/d The planned capital expenditures are fully funded by the Financings and forecast cash flow from operations Capitalization (Prior to the Proposed 10:1 Share Consolidation) Common Shares…
Advisories Forward-Looking Statements In the interest of providing shareholders of Blackbird and potential investors information regarding Blackbird, Pipestone Oil and Pipestone Energy (the combined company proposed by the announced…
Advisories (Continued) Non-IFRS Measures This presentation contains references to free cash flow, operating netback, IRR or internal rate of return, adjusted net debt and NOI or net operating income, which are terms commonly used in the…
Advisories (Continued) Reserves and Resources Disclosure Blackbird Figures provided in this presentation as to Blackbirds reserves volumes and net present value of future net revenue attributable thereto are estimates of such volumes…
Advisories (Continued) Drilling Locations This presentation discloses future development drilling locations, including future booking potential and total risked locations. Drilling locations refers to Pipestone Energys total proved,…
Advisories (Continued) Analogous Information Certain information in this presentation may constitute analogous information within the meaning of NI 51-101, including information relating to areas, wells or operations that are in…
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