Disciplined Liquids Development in Four Prolific Core Areas Investor Presentation TSX: AAV November 2019
ADVANTAGE AT A GLANCE TSX 52-week trading range 1.35 - 3.46 Shares Outstanding (basic) 187 million Market Capitalization 0.4 billion Enterprise Value 0.7 billion Advantage Montney Assets 2019 Guidance (1) Total Production 43,500 to…
BUILDING ON FOUNDATIONAL ASSETS, TRANSITIONING TO TOP-TIER LIQUIDS Solid Today Solid Tomorrow Reinvest in Our High Return Free Cash Generating Asset Liquids Assets Retain Competitive Edge with Ultra-Low Costs Commanding…
COMMITMENT TO ENVIRONMENTAL LEADERSHIP AND SUSTAINABILITY A Proud Clean Energy Producer The World Needs More of Our Energy CO2 Sequestration Plant Flared Volumes as Percent of (tonnes CO2e accredited) Production 90,367 Improved…
LIQUIDS DEVELOPMENT PROGRAM OBJECTIVES Total Revenue Diversification Value Enhancement (1) 50% Liquids by 2021 Transition to 50% liquids revenue (condensate/light oil) 20% Liquids 39% Midwest US Double digit Adjusted Funds Flow 9%…
LIQUIDS DEVELOPMENT UNDERPINNED BY TOP TIER ASSETS (1) Condensate & Light Oil Focused 6 miles Glacier asset generating free cash Progress Significant oil pool discovery at Progress Glacier Liquids development underway The…
OPERATIONS OVERVIEW SHIFTING TO MIDDLE MONTNEY LIQUIDS Deep Liquids-Rich Inventory (1)(2)(3) Booked Undeveloped Unbooked Upside Progress TOTAL future location inventory Glacier 1,400 to 1,500 697 Valhalla 70 Pipestone/ 216…
ADVANTAGE MONTNEY MULTIZONE DEVELOPMENT THROUGHOUT Wembley primary target Valhalla liquids appraisal targets Glacier liquids zones New oil pool discovery Advantage Operated HZ Offset Operator HZ 8
WEMBLEY/VALHALLA (PIPESTONE) LIQUIDS RICH DEVELOPMENT 71 net sections in the premium, multi- Recently completed D3 Well layer, liquids fairway 30% liquids (IP30) Valhalla wells are tied into AAV Glacier Plant to the West Valhalla…
SIGNIFICANT LIGHT OIL POOL DISCOVERY AT PROGRESS Kelt Oil Wells Tourmaline Oil Wells Up to 153,000 bbls CTD Up to 152,000 bbls CTD 13-31 Montney D1 (2017) 50 net sections assembled at low cost over 5 years Appraisal drilling…
LIQUIDS-RICH MIDDLE MONTNEY AT GLACIER STEPPING UP Early development was in Upper and Lower Q1 2019 10 Well Middle Montney Pad Montney (lean gas) Average Final Rate 422 bbls/d (73 bbls/mmcf) Recent focus on Middle Montney, where…
STRATEGIC INFRASTRUCTURE CONTROL, FLEXIBLE PIPELINE ACCESS 100% Owned Glacier Gas Plant 400 mmcf/d Raw Gas + 6,800 bbls/d C3+ Liquids Extraction TCPL Groundbirch Lateral BC AB Advantage Glacier Gas Plant Future AAV…
2019 GUIDANCE AND ESTIMATES (1)(2) Average production (boe/day) 43,500 - 46,500 Gas production (mmcf/d) 244 to 260 Liquids production (bbls/d) 2,900 to 3,200 % Liquids / % Condensate/light oil 7% / 76% Royalties (/boe) and Royalty…
THREE YEAR DEVELOPMENT PLAN LIQUIDS TRANSITION(1) Total Production (boe/d) Liquids Production and 14,000 bbls/d Exit Composition (bbls/d) 10,500 to 48,500 to 46,000 to 52,500 11,500 43,500 to 48,000 46,500 22% 6,500 to 7% 15%…
DEVELOPMENT PLAN PRICE SENSITIVITY(1) Gas Price Sensitivity Oil Price Sensitivity Total Debt to Adjusted Funds Flow (2) Total Debt to Adjusted Funds Flow (2) AECO 1.30/mcf AECO 1.70/mcf WTI US50.00/bbl WTI US70.00/bbl ( WTI US58/bbl…
STRONG HEDGES AND TRANSPORTATION IN-PLACE (1) Current Hedging Transactions (MMcf/d) Hedging Strategy 140 90% Summer 2019 AECO hedges mitigate AECO (Cdn/Mcf) volatility 80% 120 2.87 2.87 Dawn (US/Mmbtu) Expect to hedge both liquids…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY BC AB Glacier Pipestone Liquids Fairway Source: Geoscout, Corporate Presentations Montney Siltstone Comparison: 700 times more permeability 4x more formation…
CONTINUOUS IMPROVEMENT HAS LED TO EXCEPTIONAL EFFICIENCIES 20
MIDDLE MONTNEY PRODUCTION CONTINUES TO INCREASE 2018/19 11 wells Gen 6: Slickwater, OH Packers, Stage 2017+ Middle Montney wells with frac design changes completions Avg 33 frac stages including 30 frac stages & numerous mechanical…
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Glacier - 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Developed Undeveloped Total Developed Undeveloped Total Interval YE YE YE YE YE YE YE YE YE YE YE…
WEMBLEY MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL Wembley Montney Assigned 2P EUR Per Well & Interval(1) of Gross HZ Wells 2P Gas & Free Liquids Recovery [bcf/well mstb/well] Interval Developed Undeveloped Total Developed…
ADVANTAGE CONTACT INFORMATION Investor Relations 1.866.393.0393 iradvantageog.com www.advantageog.com Listed on TSX: AAV Advantage Oil & Gas Ltd. Suite 2200, 440 2nd Avenue SW Calgary, Alberta T2P 5E9 Main: 403.718.8000…
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