ATHABASCA OIL CORPORATION FOCUSED EXECUTING DELIVERING JANUARY 2019 CORPORATE UPDATE
ATHABASCA PREMIER RESOURCE EXPOSURE INTERMEDIATE OIL WEIGHTED PRODUCER ASSETS IN CANADAS TOP RESOURCE PLAYS o 40,000 boe/d (90% liquids) Hangingstone o 10% corporate decline o Liquids rich shale at Greater Kaybob THERMAL OIL o…
LEISMER INFRASTRUCTURE TRANSACTION STRATEGIC TRANSACTION WITH ENBRIDGE Unlocking Value Bolstered Liquidity o 265MM cash consideration o 30 year term with an annual toll of 26MM o Priority service on pipelines & dilbit/diluent…
ATHABASCA STRATEGIC OUTLOOK A BALANCED PORTFOLIO PRODUCTION Thermal Oil o Thermal Oil: long life low decline assets 50 Light Oil 37,500 40,000 o 80 year 2P reserve life 40 o Light Oil: high margin growth mboe/d 30 o Top…
2019 PRELIMINARY OUTLOOK CORPORATE 2019 OUTLOOK (US65 WTI & US20 WCS DIFF) o Minimal capital: 95 110MM Op. Income (MM) 300 40 o Maintain production: 37,500 40,000 boe/d (88% liquids) Capex (MM) Production (mboe/d) Interest &…
MARKET ACCESS AND RISK MANAGEMENT DIVERSIFIED PORTFOLIO MITIGATES RISK ALBERTA CRUDE INVENTORIES 80 201317 Range 2018 o Both business divisions contribute to the bottom line 201317 Average 2017 75 Forecast o 315MM 2019e operating…
LIGHT OIL MONTNEY & DUVERNAY
PLACID MONTNEY HIGHLIGHTS AOC OPERATED 70%WI PLACID DEVELOPMENT MAP o 80,000 gross prospective acres 1219 Pad Onstream o 48,000 high graded acres 1630 Pad Rig Released o 200 well development inventory1 Future Pad o Operated…
PLACID MONTNEY STRONG ECONOMICS PRODUCTION PLOT INTERNAL TYPE WELL PARAMETERS 1,200 Gen 1 Gen 2 Rate Sales Gas C5+ liquids Gen 3 (facility restricted wells) 1,000 boe/d mmcf/d bbl/d % Gen 3 (recent unrestricted wells) Internal…
KAYBOB DUVERNAY JOINT VENTURE HIGHLIGHTS (30% WI) o Partnered with Murphy Oil in May 2016 o 2019 preliminary activity o Cash/carry structure minimizes financial exposure 200 375MM gross (15 30MM net) 1B gross 4 yr program; 75MM net…
DUVERNAY COMPETITIVE SHALE PLAY WHAT MAKES THE DUVERNAY COMPETITIVE 2,000 SAXON (3 WELLS) 100 o High liquids yields 1,600 80 boe/d mbbl 1,200 60 200 1,000 bbl/mmcf initial yields (C5+) 800 40 40 55 API condensate 400…
LIGHT OIL NETBACK BENCHMARKING HIGHLIGHTS o Athabasca Light Oil boasts the top netback relative to its Montney/Duvernay peers (last 4 quarters) o Strong liquids weighting (50%) o High quality product (condensate and light oil)…
THERMAL OIL LEISMER & HANGINGSTONE
THERMAL OIL ASSET OVERVIEW LEISMER TOP TIER OIL SANDS PROJECT REGIONAL MAP o 20,000 22,000 bbl/d; 3.5x SOR Hangingstone o 40,000 bbl/d AER approval 2015 project startup o 660 mmbbl 2P reserves1; 85 year 2P RLI o US43 WTI…
THERMAL OIL ACTIVITY OVERVIEW LEISMER PAD OVERVIEW OPTIMIZATION INITIATIVES o Record low nonenergy op. costs in Q3/18 o 25% reduction Y/Y o Leismer 6.69/bbl & Hangingstone 12.20/bbl o Norlite diluent tiein (20MM annual savings)…
SUPPLEMENTAL INFORMATION
CORPORATE SNAPSHOT CAPITALIZATION OVERVIEW (ATHTSX) Basic Shares Outstanding 517 MM Market Capitalization 525 MM Pro Forma Net Debt* 325 MM Total Enterprise Value 850 MM Term Debt (9.875% due Feb 2022) US450 MM Undrawn…
ATHABASCA BEST IN CLASS FOR OIL EXPOSURE 80% UNPARALLELED TORQUE TO OIL 2019 CASH FLOW SENSITIVITY 70% ATH o Athabasca a standout producer for oil exposure 60% US Change in Cash Flow CDN Large Cap o 90% liquids 50% CDN…
LIGHT OIL INFRASTRUCTURE Flexibility with takeaway options; Gas Pipeline (gross) scalable for future growth Up to Gas Capacity 180 MMcf/d Dually connected to regional gas plants Kaybob East AOC 91 km Pipeline Fort Kaybob…
THERMAL OIL INFRASTRUCTURE Illustrative map not to scale 8 Diluent Line HANGINGSTONE CHEECHAM Tank Farms LEISMER 12 Dilbit Line 150mbbl Dilbit 40mbbl Dilbit 150mbbl Diluent 100mbbl Dilbit 6mbbl Diluent 10mbbl Diluent…
MANAGEMENT TEAM AND BOARD MANAGEMENT TEAM BOARD OF DIRECTORS Robert Broen, P.Eng. Ronald Eckhardt President & Chief Executive Officer Chair of the Board, member of the Reserves Committee Kim Anderson, CA Robert Broen, P.Eng. Chief…
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