Oil-Weighted Stability May 2019 Corporate Presentation
About PRAIRIE PROVIDENT Oil and liquids-focused Alberta E&P with three core areas (Michichi/Wayne, Princess & Evi) which offer significant torque to oil prices Production weighted 70% to oil & liquids (94% light & medium oil) with…
PPRS FOCUSED STRATEGY Development of conventional oil and liquids plays across core Michichi/Wayne, Princess and Evi areas that offer compelling economics Maintain capital spending levels to approximate adjusted funds flow(1); remain…
PPR STRATEGIC HIGHLIGHTS Increased size, scale and self-funded growth potential affords opportunity to command increased market awareness PPR Snap Shot(1) Financial metrics improve as cash inflows expected to be 6,300 boe/d balanced…
PPR YTD 2019 HIGHLIGHTS Recorded operating netback of 8.5MM in Q1/19, a 676% increase from Q4/18 as Canadian crude oil prices rebounded Q1/19 production averaged 5,962 boe/d, up 29% from Q1 2018, despite 400 boe/d of offline…
2018 RESERVES HIGHLIGHTS Reserves per Basic Share(1)(3)(4) Value Volumes (Btax) Conventional 0.22 +25% Natural Gas(2) Conventional 2016 16-18 Light & (other than Natural Gas Natural Gas Barrels of Oil 0.20 2017 Medium Oil Heavy…
MANAGEMENT TEAM AND BOARD Management Board of Directors Tim S. Granger, President & CEO Patrick R. McDonald, Chairman CEO at Molopo Energy Limited, President and CEO at Compton Petroleum Corporation, COO at Paramount Energy, Managing…
CURRENT ASSET OVERVIEW KEY FOCUS AREAS EVI 2,000 boe/d 33.9 MMboe Michichi/Wayne Lower cretaceous oil/gas Proved + Probable Reserves(1) Year round access Hz development 699,100 Princess PPR Total Net Acres Multi-zone…
PRINCESS 2019 Drill 13-26-020-11W4 IP30 800 boe/d Offers Robust Economics Current production: 1,200 boe/d of medium gravity oil Revenue/boe(1) 41.75 Opex/boe(2) 10.05 Royalty/boe(1) 6.95 Operating Netbacks(3) 24.30/boe 2018…
EVI AREA High value, low-decline Light oil play Current production: 2,000 boe/d Revenue/boe(1) 59.57 Opex/boe(2) 22.91 Royalty/boe(1) 4.07 9-12-87-12 IP30 80 boe/d Operating Netbacks(3) 32.59/boe 2018 activity: 2-12-87-12 5km…
WATERFLOOD STRATEGY: SHALLOW THE DECLINE CURVE Primary Producers 30% decline rate Added 363.5 mboe of P+P reserves in 2018 & 850 mboe over last 3 years Waterflood Producers minor decline Existing PPR Waterflood 11
FUTURE WATERFLOOD DEVELOPMENT Otter WF Primary Recovery (1) 7% Waterflood Recovery(1) 5% Total 12% Evi WF Current WF Expansion Estimated additional EUR of 2MMBBL of oil through the addition of 3 additional waterfloods(2)…
EXPANDED FOOTPRINT AT MICHICHI/WAYNE Sizeable and contiguous acreage Current production: 2,700 boe/d of medium gravity oil Revenue/boe(1) 33.96 Opex/boe(2) 18.71 Royalty/boe(2) 2.40 Operating netbacks(3) 12.85 2018 activity:…
MICHICHI TYPE LOG & PORE VOLUME 100/16-33-031-17W4/00 Net Pay Average Ave core Pore metres Porosity Perm Volume Top Detrital porosity Detrital 2.4 13.5% 5mD 0.32 Banff 21 4.4% 0.5mD 0.92 Total 1.24 Base Banff porosity…
Michichi Main Development Area MICHICHI MAIN DEVELOPMENT AREA Pool outline Michichi Main is comprised of 12 sections situated within the broader Michichi/Wayne area Within these 12 sections, current production = 1,100 boe/d…
PILOT WATERFLOOD SIMULATION Baker Hughes waterflood simulation run in 2015 Waterflood pilot Results suggest that waterflood could more than double the recovery factor Recovery Factor (%) Detrital 4.4% Case 1: Banff 7.3% Base…
ATTRACTIVE ECONOMICS & INVENTORY Cash flow, hedges and balanced capital spending support growth plans Evi Princess Average Type Well Economics(1)(2) Slave Point(3) Glauconite(3) Michichi/ Banff(4) Evi Waterflood(4) Drill,…
DISCIPLINED 2019 BUDGET UNDERSPENDS CASH FLOW Oil-weighted and low-risk asset base Michichi/Wayne area offers significant development potential Forecast 2019 Guidance(1) with attractive economics 2019 budget underspends forecast…
ACTIVE RISK MANAGEMENT 60% hedged of forecast 2019 base volumes (net of royalties) Oil Hedges Gas Hedges 3,000 80% 80% 9,000 70% 70% 2,500 8,000 60% 7,000 60% Hedged Volume (bbl/d) 2,000 Hedged Volume (GJ/d) 50%…
ECONOMICS SENSITIVITIES Blended WTI (US) from Hedged and Unhedged Production 2019 2020 Liquids Production (bbl/d)* 4,270 4,550 4,270 4,550 40 45.76 45.41 43.23 43.03 45 48.33 48.12 46.79 46.68 50 51.13 51.06 50.47 50.44 WTI…
WHY INVEST IN PPR PPR trading at Compelling value opportunity 33% of PDP NAV(3) Focused on returns Disciplined approach to capital allocation and focus on projects that provide the highest IRR Asset portfolio provides returns…
SUMMARY OIL-WEIGHTED PRODUCTION & RESERVES Oil & liquids focused E&P executing a stable, returns-based strategy Attractive Assets Capital Management 6,100-6,500 boe/d for 2019; target exit 6,650 boe/d Development fully funded with…
ADVISORIES Forward Looking Information, Continued Although Prairie Provident believes that its underlying expectations and assumptions are reasonable based on currently available information, undue reliance should not be placed on…
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