Obsidian Energy Corporate Presentation February 2019
Corporate Overview Market Summary Peace River Ticker Symbol OBE Cold flow heavy oil Manage base production and Shares Outstanding MM 507 commercialize Market Value MM 269 Net Debt MM 391 Enterprise Value MM 660 Deep Basin Liquids…
Willesden Green H2 2018 Program Summary Actuals exceeding forecast Crimson Lake R8W5 INDEX MAP Rig One 18-9 Pad (3 Wells): IP60 477 boepd (71% oil) 2 14-1 Pad (2 Wells): IP60 338 boepd (84% oil) 3 1-36 Pad (2 Wells): IP30 672 boepd…
8-9 Cardium Pad (3 wells) Oct 18, 2018 Simultaneous Operations Flowback Tanks Flare stack Frac Pumps Testers Water Supply Crane for Coiled Tubing Lubricator Data Van Coiled Tubing Unit Sand Haulers Chem Van…
Revitalization of the Cardium Play Historical Cardium Pool Historical Cardium Pool Historical Willesden Green Oil Production (bbl/d) Total Well Count () Cumulative Oil Production (Mbbl/d) 180,000 7,000 Horizontals 80 Horizontals…
The Broader Cardium Opportunity Value proposition is unique to each area 12 Month Cumulative Oil (Mbbl) per well Pembina Cardium Hz well Willesden Green Cardium Hz well R5W5 OBE 17/ H1 18 Ferrier Cardium Hz well Willesden Green…
Breaking Down the Cardium Play Fairways - A Large High-graded Inventory West Pembina Central Pembina R10W5 INDEX MAP Well established Individual fairways and productive trend unit boundaries in significantly de-risked by…
Crimson Lake The Obsidian Energy flag pole for revitalized primary development on our Cardium acreage Banked oil from historical pressure maintenance in WGCU9 Top quality reservoir previously ignored by historical development due to…
Crimson Lake Economics Type Curve Rate vs Time Cost Inputs Cumulative Oil vs. Time 2,200m 2,6 00m 900 180 Drill & Complete MM 3.2 3.5 Equip & Tie MM 0.5 0.5 800 160 Total MM 3.7 4.0 H2 2018 Program IP30: (10 of 14 wells) 700 - 105%…
Drilling Longer Wells, Efficiently OBE Intermediate Wells Well Length 0 Drilling two mile wells reduces fixed 2015 Wells drilling costs Surface Casing 2016 Wells Mobilization 2017 Wells Construction 1,000 2018 Wells…
Optimized Well Design to Maximize the Economics of our Acreage Inter-well Spacing Inter-frac Spacing Lateral Length IRR & NPV Decisions IRR & NPV Decisions IRR & NPV Decisions IRR NPV IRR NPV Practical Cutoff NPV Optimal…
Crimson Lake Cost Reduction Trajectory Drill, Complete, Equip & Tie-In Costs thousands Surveying 3,700 (10) (20) (150) Large program brings cost efficiency and flexibility (150) Construction Reuse of existing pads, multi- well…
East Crimson Moving the Crimson success eastward and onward Continued Eastward extension of the Crimson Lake development program Area has been de-risked by recent drilling results supporting the revitalized development Shared and…
Targeting Oil Banks in Historic Waterflood Targeting Oil Banks Horizontal development in pressure R6W5 maintained fields like East Crimson has WGCU1 two key target types: Banked oil on area edges where legacy drilling has…
West Pembina Proven oil rich Cardium trend with undeveloped primary development acreage Significant offsetting production from established Cardium players throughout the West side of Pembina Underdeveloped halo and core acreage West…
Central Pembina The epicenter of low decline and pressure maintained development Strong technical model is the foundation for additional development from unswept fairways Ability to de-risk through geological and reservoir modelling…
Cardium 3 Year Forecast Cardium on its own is self funded and generates 60MM of Free Cash Flow per year Growing the Cardium by 20% with depth of inventory to back fill higher price scenario Cardium feeds the rest of the business with…
Other Assets Deep Basin & Peace River 21
Deep Basin: Company Under a Company Unit land Ownership in key plant and R8W5 OBE below Base Cardium land OBE Cardium WI land pipeline infrastructure allows for development and operational Bigoray synergies with Cardium program…
Mannville Falher Type Curve Type Curve Rate vs Time Cost Inputs Cumulative Oil vs. Time Drill & Complete MM 3.0 500 300 Equip & Tie MM 0.8 450 Cumulative Prod (mboe) Total MM 3.8 250 Production Rate (boe/d) 400 Production…
Large Peace River Presence R19W5 Cold Flow Inventory Stable, heavy cold-flow oil base production Total Locations 251 Contiguous and extensive acreage with ample inventory Rainbow pipeline Simultaneous operations and multi-leg,…
Why invest in Obsidian Energy Significant rate of change in cash flow 10-15% Largest Cardium Flexibility to CAGR Development Ample acreage manage drilling infrastructure holder with a commodity catalysts head room low…
Appendix & Endnotes 26
Asset Retirement Obligation Improvement Legacy Abandonment 2019-2031 OBE elected to participate in the AERs ABC program to demonstrate a disciplined effort to reduce exposure to the costs of its Legacy portfolio OBE Legacy…
Management Team Mr. French, joined Obsidian Energy on October 2016. Prior to joining the Company, Mr. French served as President and CEO of Bankers Petroleum Ltd. Prior to joining Bankers in 2013, Mr. French held several David L.…
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