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January 2014 Investor Presentation – Legacy Oil + Gas Inc.

Legacy Oil + Gas Inc. · Jan 31, 2014 · 49 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 1
    Light Oil + Capital Efficiencies + Significant Inventory = Sustainable Growth January 2014
  2. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 2
    What Differentiates Legacy Sustainable Oil price and differentials 10-15% per Light oil Track record year per share High netback Capital and cost efficiency growth Demonstrated Relatively per share Upside or immune to growth…
  3. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 3
    Legacys Light Oil Price Prevails Operating Net Back Q3-2013 netback up 15/Boe over Q3-2012 Oil Price Edm Par 2.30/Bbl = Legacy Price 4
  4. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 4
    Historical Performance Cash Flow Growth 300 2.40 Cash FundsFlow Flow Cash Flow Funds FlowPer perShare Share 250 2.00 Cash Flow (/Share) Cash Flow (MM) 200 1.60 150 1.20 100 0.80 50 0.40 0 0.00 2009 2010 2011…
  5. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 5
    Reserves Growth + 2012 Reserves/NAV Proved Plus Probable Reserve Growth 120 0.72 P+P Reserves P+P Reserves per Share 2012 Reserves 100 0.60 P+P Reserves per Share P+P Reserves (MMBOE) Proven + Probable (P+P) 94.2 MMBoe…
  6. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 6
    Driving Capital Efficiencies Reduction in Drilling Days Across All Main Plays 7
  7. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 7
    Development Locations Extensive drilling inventory in 2,080+ NET well-defined light oil plays Focused, operated, high working Net Undeveloped Land interest with material exposure to emerging light oil resource plays 395,329…
  8. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 8
    Reserves Gross Company interest proved + probable 103.3 MMBOE reserves are 84% light oil + NGLs Reserve Life Index Legacy has an industry leading oil weighted proved + probable reserve life index 14.9 YEARS Operating Net…
  9. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 9
    Low Risk Development Budget Drill approximately 159 gross (124.2 net) wells 2014 Capital Budget Breakdown exclusively targeting light oil 350 Million Total Forecast 2014 average production of 21,350 Boe per day (88% light oil and NGLs)…
  10. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 10
    Historical Results + 2014 Forecast 20141 20132 2012 14/12 Production (Boed) 21,350 19,000 16,301 31% Funds from Operations (MM) 355 285 223 59% Funds from Operations (/share) 2.27 1.87 1.56 46% Operating Expenses (/Boe) 13.25…
  11. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 11
    Comparative Analysis '13-'14E '13-'14E '13-'14E 2013E 2014E 2013E 2014E 2013E 2014E 2013E 2014E Production DAPPS CFPS 2013E 2014E 2013E 2014E EV/Prod EV/Prod Netback Netback 2013E 2014E FCF FCF Total Total % Gas Growth Growth Growth…
  12. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 12
    Focused + Light Oil Asset Base Two core areas - each area has focused development assets and new play development opportunities: MAXHAMISH Williston Basin Development Taylorton, Heward/Stoughton, Star Valley, Frys/Antler,…
  13. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 13
    Pierson + North Dakota Spearfish Spearfish fairway expanded between Pierson and Waskada and extended into North Dakota Large oil-in-place pools in Manitoba Highly successful application of horizontal V G G E G EE E E J EJ JA VMV E…
  14. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 14
    Pierson Legacy Wells Outperform Legacy production choked-back; wells carry high fluid levels 15
  15. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 15
    Pierson + North Dakota Spearfish Forecast Type Curves IRR Sensitivity 140 160 Pierson North Dakota Pierson North Dakota 120 140 Production 120 100 Oil Rate (BOPD) Constrained 100 IRR (%) 80 80 60 60 40 40 20 20 0…
  16. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 16
    Steelman/Pinto Midale High impact conventional play with unconventional completion technique Light oil (34-40 API) E G E G V I V IG G IIIGDJ AVD DJ V E A E V J G G G G IG G G GE A JG UVGVJ E CED E J EVDSEVDAE E V EA…
  17. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 17
    Steelman + Pinto Midale Forecast Type Curves IRR Sensitivity 175 200 Steelman Pinto Steelman Pinto 180 150 160 Oil Rate (BOPD) 125 140 120 IRR (%) 100 100 75 80 50 60 40 25 20 0 0 0 2 4 6 8 10 12 14 16 18 20 22…
  18. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 18
    Star Valley Bakken 28 27 G G26 25 30 G G 29 J 28 27 J 26 25 30 G V29 G I R6 R5 R4W2M EDG G GE E V G A G G G E EG D E G G E E V G G G E A EA V I G 23 V E D EG 21 22 23 24 19 20 21 22 24 19 20 ED E M E EJ EVEV G A V V D…
  19. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 19
    Star Valley Bakken Forecast Type Curve IRR Sensitivity 120 100 110 90 100 80 90 Oil Rate (BOPD) 80 70 60 IRR (%) 70 60 50 50 40 40 30 30 20 20 10 10 0 0 0 2 4 6 8 10 12 14 16 18 20 22 24 80 85 90 95 100 105…
  20. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 20
    Conventional Mississippian Plays Key properties in conventional Mississippian plays include Alameda, Steelman, Midale, SOUTHEAST SASKATCHEWAN Manor, Edenvale/Nottingham and Crystal Hills MANITOBA Main producing and target zones…
  21. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 21
    Conventional Mississippian Forecast Type Curves IRR Sensitivity 100 200 90 180 80 160 Oil Rate (BOPD) 70 140 60 IRR (%) 120 50 100 40 80 30 60 20 40 10 20 0 0 0 2 4 6 8 10 12 14 16 18 20 22 24 80 85 90 95 100 105…
  22. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 22
    Turner Valley Rundle 40o API light oil, liquids-rich solution and non-associated natural gas with low U G G historical oil decline rate…
  23. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 23
    Turner Valley Rundle Forecast Type Curve IRR Sensitivity 130 60 120 110 2013 wells IP30 avg. 50 100 265 BOED per well Peak < 1 month Oil Rate (BOPD) 90 40 80 IRR (%) 70 30 60 50 20 40 30 20 10 10 0 0 0 2 4 6 8…
  24. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 24
    Waterflood Benefits Add reserves cost-effectively Typically double primary recovery factor Finding & development costs low double digit Leverage existing lands and infrastructure Moderates declines Oil production plateaus and can…
  25. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 25
    Heward + Taylorton Waterflood Heward Heward Oil Production Pilot Waterflood Response Start of Injection Taylorton Taylorton Pilot Waterflood Oil Production Response Start of Injection 26
  26. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 26
    Frys + Pierson + Steelman Waterflood Frys Frys Oil Production Response Pilot Waterflood Start of Injection Pierson Steelman Proposed Pilot Proposed Pilot Waterflood Waterflood 27
  27. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 27
    Waterflood Assumptions Waterflood Implementation Costs Opex: 4000/W/M + 3.00/Bbl 6 Miles (10 km) of 4 Water Injection Lines (150/m) 1,500,000 1 Pump Skid at 1000m3/d (250,000/pump) 250,000 Oil Price: US95.00/Bbl WTI 24 Injector…
  28. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 28
    Oil Rate Forecast Tight Oil Waterflood Scenario Secondary Oil Rate Primary Oil Rate 700 Cum Oil Prior to Waterflood = 245 MBbl OOIP = 4.9 MBbl/section 600 Primary RF = 11.1% Secondary RF = 21.6% 500 Oil Rate (BOPD)…
  29. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 29
    Cum. Oil + Recovery Factor Tight Oil Waterflood Scenario Secondary Cum Oil Primary Cum Oil Secondary RF Primary RF 1,200,000 30% Cum Oil Prior to Waterflood = 245 MBbl OOIP = 4.9 MBbl/section Primary RF = 11.1% Secondary RF =…
  30. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 30
    Cash Flow Forecast Tight Oil Waterflood Scenario (Effective Jan 2014) Secondary 10% Disc. Cashflow Primary 10% Disc. Cashflow 35,000 30,000 25,000 20,000 15,000 10% Disc. Cashflow (M) 10,000 5,000 0 -5,000…
  31. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 31
    Economic Results Single Section Result Primary Waterflood Total Reserves (MBbl) 547.9 518.3 1066.2 Reserve Life (yrs) 17 50 50 Recovery Factor (%) 11.1 10.5 21.6 Capital (M) 17,100 900 18,000 NPV 10% BT (M) 15,426 14,341 29,767 Payout…
  32. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 32
    Impact of Waterflood to Legacy Gross OOIP WF Reserves NPV10% BT Area (MBbl) Net Sections (MBbl) (M) Bakken 377,271 80.5 29,964 954,650 Torquay 219,530 33.3 15,398 394,905 Spearfish 599,638 51.7 52,694 613,110 Midale 177,642 36.1…
  33. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 33
    Capture of Large Light Oil Resource Gross Discovered Oil Originally In-Place (DOIIP) (MBbl) 1538.6 1659.8 1871.4 332.8 Conventional Total Resource Sproule CORA LEG CORA CORA=Contingent Oil Resource Assessment See notes,…
  34. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 34
    Significant Light Oil Resource Base Legacy Working Interest Volumes 300 250 200 MMBbl 150 100 50 0 High Estimate Best Estimate P+P Reserves Sproule Contingent Resource LEG Contingent Resource See notes,…
  35. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 35
    Potential Value Various Capital Timeframes 3 Year Contingent Capex 5 Year Contingent Capex 7 Year Contingent Capex 6000 30.75/share 29.45/share 28.71/share 5000 Assumptions for all cases: NPV10% BT (M) Legacy internal 4000…
  36. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 36
    APPENDIX
  37. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 37
    Corporate Profile TSX Trading Symbol LEG Common Shares 157.2 million Warrants 3.6 million Options & Restricted Shares 9.9 million Insiders own Basic 2.4% Fully Diluted 8.3% Enterprise Value 1.6 billion Average Liquidity 750,000…
  38. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 38
    Taylorton/Pinto Bakken + Three Forks G G J D E G GJ E J I J J E IV I I R7 G R6E G IVE G G R5 G E M JR4W2M M J J S J V D I E I VJ Multizone area for high netback, liquids 1 I G 6 V G G II II II G EI I E M I IE E I J…
  39. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 39
    Taylorton Bakken Forecast Type Curve IRR Sensitivity 160 200 140 180 160 120 Oil Rate (BOPD) 140 100 120 IRR (%) 80 100 60 80 60 40 40 20 20 0 0 0 2 4 6 8 10 12 14 16 18 20 22 24 80 85 90 95 100 105 Months Oil…
  40. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 40
    Stoughton/Heward Bakken Forecast Type Curve IRR Sensitivity 120 180 100 160 140 Oil Rate (BOPD) 80 120 IRR (%) 100 60 80 40 60 40 20 20 0 0 0 2 4 6 8 10 12 14 16 18 20 22 24 80 85 90 95 100 105 Months Oil Price…
  41. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 41
    Frys/Antler Torquay/Souris Valley U R31 G G E E E E E E E E E EJ E E D J JD EV E J E J R30 E V JJ E E E E D E EVJJ ER29W1M EJ E E E AE J G JJ JV36E C 31 J J Torquay (Three Forks) G 31 G EV EV 36 E 31 36 G J JE J M JG…
  42. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 42
    Frys/Antler Torquay (Three Forks) Forecast Type Curve IRR Sensitivity 100 90 90 80 80 70 Oil Rate (BOPD) 70 60 IRR (%) 60 50 50 40 40 30 30 20 20 10 10 0 0 0 2 4 6 8 10 12 14 16 18 20 22 24 80 85 90 95 100 105…
  43. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 43
    Southern Alberta Bakken F G I G K CK G G G R29 R25W4M L G F C S Alberta Basin Bakken Play G GJG G G CF F D G G G G G I LGXG G G JLands K G E GEE KG GFGJ K F K G 1 0 S M I L E S GGGE CJ JF G F G E G E G LGX Wells…
  44. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 44
    Maxhamish, BC Chinkeh F F F F F FV U F F F F UG F G F F UV FKC Chinkeh Formation light oil resource play A D C FC G UVU F B F F G A F F F Significant resource of 40o API light sweet oil, C F F F F F F F confirmed by…
  45. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 45
    Contingent Oil Resource Assessment (CORA)* Company Working Interest Ultimate Recoverable Oil (2) Discovered Contingent Oil Resources (3) Portion of Discovered Lands Oil Initially Low Best High Low Best High Attributed in-Place…
  46. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 46
    Notes to Contingent Resource Assessment Notes: (1) The Spearfish formation is located within Legacy's properties at Pierson, Manitoba and Bottineau County North Dakota. The Bakken and Torquay formations are located within certain of…
  47. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 47
    Disclosure for Contingent Resource Assessment Definitions and Preparation The Discovered Oil Initially In-Place and Discovered Contingent Oil Resource assessments in the Sproule report were prepared in accordance with the definitions,…
  48. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 48
    Disclosure for Contingent Resource Assessment Definitions and Preparation - continued Preparation All estimates of Contingent Resources represent gross resources, meaning the company's working interest share in the Reserves or…
  49. January 2014 Investor Presentation – Legacy Oil + Gas Inc. – slide 49
    Independent Reserve Engineers Contact Information Sproule Associates Limited 4400, 525 8th Avenue SW Bank Syndicate Eighth Avenue Place BMO Capital Markets Calgary, Alberta T2P 1G1 National Bank The Bank of Nova Scotia Tel:…

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