POSITIONED FOR SUSTAINABILITY AND GROWTH February, 2014 TSX:SGY www.surgeenergy.ca
RECENT DEVELOPMENTS Announced an elite, accretive, high quality, large OOIP, light oil acquisition in January, 2014: Proposed dividend increase of 4%; and Lowered all-in sustainability ratio…
WHY OWN SURGE ENERGY Low risk, high quality, crude oil asset and opportunity base; 12 year RLI (with 2 years of FDC/cash flow); Very low all-in sustainability ratio…
SURGE ENERGY INC. Elite, operated, large OOIP crude oil reservoirs, with low recovery factors; Over 1.4 Billion bbls of OOIP under management - with current recovery factor of 10% Strong balance sheet; ongoing risk…
KEY VALUE DRIVERS (RISK ADJUSTED) 1. 3-5% organic annual per share growth in reserves, production and cash flow; and 2. 8% dividend yield; and 3. Debt reduction i.e. due to low sustainability ratio; increases NAV; and 4.…
SURGE 2013E/2014E GUIDANCE (1) (3) OPERATIONAL 2013 Exit Production (boe/d) 15,000 (83% Oil/NGLs) 2014E Average Production (boe/d) 16,125 (84% Oil/NGLs) 2014E Exit Production (boe/d) 16,550 (84% Oil/NGLs) 2P Reserves(2) 74.3…
ELITE, FOCUSED ASSET BASE EXPOSURE TO 1.4 BILLION BBLS OF OOIP 10% OIL RECOVERED TO DATE 8
EXCELLENT CAPITAL EFFICIENCIES / REPLACEMENT METRICS Areas Capital Drill/ Complete/ Mboe/well Locations 180 day IP Efficiency Equip (on primary) (Gross / Net) Valhalla 14,300/boepd 4.3MM 300 boepd (66% oil) 672 (46/38) Macoun…
SUMMARY OF QUALITY OIL RESERVOIRS LARGE OOIP(1) WITH LOW RECOVERY FACTORS Internally Estimated Total Booked Ultimate Drilling Cum Oil Independent OOIP (MMbbls) Rates of Recovery Net Property Formation Locations Avg. WI…
ELITE WATERFLOOD RESERVOIRS LOW DECLINE Current Properties Under Full Commercial Waterflood Area Formation Start Date 2014 Decline Current RF Booked RF Expected RF Lloyd/ Silver 1996 18% 12.6% 35.7% 39.0% Cummings Wainwright Sparky…
WILLISTON BASIN SE Sask (Midale/Frobisher/Alida) Steelman Rosebank Macoun Ingoldsby Silverton Hastings Gainsborough Alameda 342 MMbbls of OOIP (35-37 degree API) Surge Land Current recovery factor 19.8% of OOIP Surge…
WILLISTON BASIN Manson (Bakken/Three Forks) 76 MMbbls of OOIP (35 degree API) Current recovery factor 0.9% of OOIP Manson Rates of return 40% (1) 64 gross/58 net drilling locations remain at Manson(2) 2 injectors have been…
SW SASKATCHEWAN Shaunavon (Lower and Upper) 250 MMbbls of OOIP in the Lower and Upper Shaunavon formations (medium gravity oil) Current recovery factor 1.3% Rates of return in excess of 50% (1) 271 gross/264 net drilling…
SE ALBERTA Silver/Wainwright Area (Cretaceous Sands) Wainwright 435 MMbbls OOIP (23-31 degree API oil) Multi-zone, medium gravity crude at shallow depths…
SW SASKATCHEWAN Viking Plenty Operated; high working interests High netback 55/bbl Dodsland Rates of return 34% (1) 143 MMbbls of OOIP (37 degree API) in the Viking formation Current recovery factor 0.5% of OOIP 138…
WESTERN ALBERTA Valhalla South / Wembley (Doig) 160 MMbbls of combined OOIP at Valhalla and Wembley Valhalla (40 degree API light oil) Rates of return of 130% (1) Current recovery factor 2.4% (2) 46 gross/38.6 net drilling…
WESTERN ALBERTA Nipisi (Slave Point) Analogue Slave Point Waterflood 115 MMbbls of combined OOIP (35-42 degree API) in the Slave Point Formation at Nipisi North and Nipisi South Current recovery factor 0.7% of OOIP Gift Rates of…
RISK MANAGEMENT/HEDGING STRATEGY Oil Hedges The Company has an orderly, on-going, risk management / hedging program 55% designed to lock in future cash flows 6,000 to protect the Companys capex Oil Volume program and fund…
SURGE POSITIONED FOR SUSTAINABILITY Low base decline 24%, high netbacks, excellent capital efficiencies Very low all-in sustainability ratio…
SURGE POSITIONED FOR GROWTH Focused, high quality, crude oil asset and opportunity base; core properties are 100% operated with working interests of 90% Elite, large OOIP crude oil reservoirs with low recovery factors; 12 year…
ANALYST COVERAGE Financial Institution Analyst Email Address AltaCorp. Capital Don Rawson drawsonaltacorpcapital.com BMO Capital Markets Jim Byrne jim.byrnebmo.com Cannaccord Genuity Anthony Petrucci apetruccicanaccordgenuity.com…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Bankers: ATB Financial Toronto-Dominion Bank JPMorgan Chase Bank, N.A. Auditor: KPMG LLP Legal Counsel: McCarthy…
2014 KEY SENSITIVITIES BASE SENSITIVITY IMPACT (C) Oil Price (USD WTI) 95.50 +/-1.00 2.4 million Gas Price (C / Mcf) 3.69 +/- 0.10 0.5 million Production 16,125 +/- 100 1.7 million Cash Netback 45.67 +/- 0.50 3.0 million…
Estimated Tax Pool Summary 2013 Canadian Exploration Expense 21.9 million Non-Capital Losses 26.8 million Canadian Development Expense 265.7 million Canadian Oil & Natural Gas Property Expense 610.8 million UCC 250.6…
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