Accelerating Condensate Development in the Heart of the Montney While Retaining Capital Flexibility Investor Presentation TSX: AAV January 2019
ADVANTAGE AT A GLANCE TSX 52-week trading range 1.80 - 4.90 Shares Outstanding (basic) 186 million Market Capitalization 0.4 billion Enterprise Value 0.7 billion 2018 Estimated Production (1) Advantage Montney Assets Total…
2019-2021 DEVELOPMENT PLAN FURTHER STRENGTHENS BUSINESS MODEL Solid Today Solid Tomorrow Free Cash Generating Asset Reinvest to Diversify & Enhance Free Cash Generation Ultra-low Costs Maintain & Strengthen Netbacks Financial…
2019-2021 DEVELOPMENT PLAN - INTERNALLY-FUNDED GROWTH (1) Condensate & Light Oil Focused 6 miles Progress Drill 96 Montney wells: 42 Pipestone/Wembley 14 Valhalla Glacier 36 Glacier 4 Progress The Foundation Valhalla Utilize…
OPERATIONS OVERVIEW SHIFTING TO MIDDLE MONTNEY LIQUIDS Deep Liquids-Rich Inventory (1)(2)(3) Booked Unbooked Upside Undeveloped TOTAL future Progress location inventory 1,200 to 1,400 Glacier 613 Valhalla 62 214 200 123…
PIPESTONE/WEMBLEY LIQUIDS RICH DEVELOPMENT Pipestone The premium condensate play in Canada BBI 31 net sections CNQ Recent M&A land values exceeding 4.5 million per section ECA 42 wells planned from 2019 to 2021 (4) Kelt Inventory…
VALHALLA LIQUIDS DEVELOPMENT ADVANCING Industry results in Middle Montney have proven ultra-rich condensate on offsetting lands AAV Liquids Handling Hub Advantage to target same interval Q1 2019 Competitor well IP30 1,400 boe/d…
LIQUIDS-RICH MIDDLE MONTNEY AT GLACIER STEPPING UP Early development was in upper and lower Only 41 Middle Montney Montney drills to date Recent focus on Middle Montney, where liquids range from 25-80 bbls/mmcf 90 net sections…
STRATEGIC INFRASTRUCTURE CONTROL, FLEXIBLE PIPELINE ACCESS 100% Owned Glacier Gas Plant 400 mmcf/d Raw Gas + 6,800 bbls/d C3+ Liquids Extraction Advantage Gas Plant Alliance Sales Gas Line Liquids Handling Hub Pembina NGL…
2019-2021 DEVELOPMENT PLAN AS AT NOVEMBER 2018 (1) Guidance and Estimates (2)(3) 2019 Guidance 2020 Estimate 2021 Estimate Average production (boe/day) 43,500 - 46,500 47,850 52,300 Gas production (mmcf/d) 244 to 260 245 246 Liquids…
THREE YEAR DEVELOPMENT PLAN STRENGTHENING FOUNDATION (1) Total Production (boe/d) Liquids Production and 14,000 bbls/d Composition (bbls/d) Exit 9% 52,300 11,370 6% 47,850 45,000 62% 22% 7% 15% 7,000 125% 81% C5+ 3,100 80%…
NET CAPITAL EXPENDITURES FOCUSED ON DRILLING (1)(2) 2019 Capital By Area 2019-2021 Total Capital By Area Other Other Progress 6% 7% 225 Progress 6% 690 million 4% million Glacier Wembley Glacier 32% 24% 49% Wembley 47%…
DEVELOPMENT PLAN PRICE SENSITIVITY - MANAGING VOLATILITY(1) Total Debt to Trailing Adjusted Funds Total Debt to Trailing Adjusted Funds Flow Sensitivity(1) Flow Sensitivity(1) AECO 1.30/mcf AECO 1.50/mcf AECO 1.70/mcf WTI US50.00/bbl…
2019 BUDGET RETAINS CAPITAL FLEXIBILITY(1) Advantage has flexibility with minimal impact on to preserve a strong to defer 100 million of 2019 estimated production balance sheet if prices 2019 capital spending remain below forecast.…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Up…
CONTINUOUS IMPROVEMENT HAS LED TO EXCEPTIONAL EFFICIENCIES Production restrictions 19
MIDDLE MONTNEY PRODUCTION CONTINUES TO INCREASE 2018 6 wells Gen 6: Slickwater, OH Packers, Stage 2015+ Middle Montney wells with frac design changes completions Avg 34 frac stages including 20 frac stages & numerous mechanical…
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Glacier - 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Developed Undeveloped Total Developed Undeveloped Total Interval YE YE YE YE YE YE YE YE YE YE YE…
ADVISORY Oil and Gas Information Barrels of oil equivalent (boe) and thousand cubic feet of natural gas equivalent (mcfe) may be misleading, particularly if used in isolation. Boe and mcfe conversion ratios have been calculated using a…
ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on TSX: AAV Advantage Oil & Gas Ltd. Suite 300, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main: 403.718.8000…
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