Liquids Rich Montney Value Scale Growth September 2019
Positioned For Free Cash Flow Generation Major Milestone Q3 2019 Nig Creek Plant & North Montney Mainline On-stream Liquids-Rich Montney 231,000 net acres2 40,000 44,000 Boe/d in 2020 100% working interest Enhanced Self Funding…
Building Momentum Through 2019 Production Growth Cash Flow vs. Commodity Prices 45 30 Increasing Q4 5.00 Avg. Daily Production (mboe/d) cash flow 4.50 40 Running less than one rig annually delivered: 25 35 4.00 50% CAGR Q4/14…
Established Track Record Upper Montney Hz - Avg EUR by Pad 14.0 12.0 12.2 11.3 Predictable Well Results 10.1 10.2 10.3 Average EUR: 9.4 Bcf since 2012 (69 wells)1 10.0 9.3 9.4 Average EUR: 10 Bcf (last 50 wells) Avg EUR…
Optimizing Cost Structure & Wellbore Design Black Swan Drilling Cost 4.5 4,500 4.0 Cost per Well 4,000 Base Design For Development Plan Cost per m 4 MM D&C and 9 Bcf per well 3.5 3,500 Drilling Cost (MM) Cost per lateral m…
Compelling Economics: Low Cost, Liquids Rich, Hot Gas Black Swan Upper Montney Performance vs Type Curve1 7,000 250 Material Upside 6,000 Average Gas 200 Corporate planning based on 9.0 Bcf & 4MM D&C 9.0 Bcf Type Curve 5,000 Recent…
Infrastructure: Key Component of Integrated Growth Plan Core Infrastructure In Place North Aitken (Plant 1): 110 MMcf/d (current capacity) Liquids recoveries capable of 40 bbl/MMcf (50% C5+) Nig Creek Nig Creek (Plant 2): 100 MMcf/d…
Owned & Operated Infrastructure: Lower Costs & Higher Netbacks Plant Capacity Stable Liquids: 45 bbl/MMcf 120 Plant at capacity 60.0 of 110 MMcf/d 100 Liquids Yield (bbl/MMcf Raw) 50.0 Gas Production (MMcf/d) 80 Plant…
Nig Creek Gas Plant: Major Milestone Achieved Execution On Budget, On Schedule Commissioned and on-stream Sept 2, 2019 Three pads (22 wells) required to fill Nig Creek (2A) 100 MMcf/d currently behind pipe Approved well licenses for…
Scalable Growth With Low Sustaining Capital Expansion Optionality 70,000 Option for continued growth Building Capacity in Stages 60,000 Execution strategy offers optionality at each stage for: Future growth Production…
Connection to NGTL through NMML: a step toward diversification Egress Via Three Major Gas Pipelines British Columbia Egress on all three Canadian gas transmission systems enables netback optimization Egress grows to 390 MMcf/d…
Delivering Liquids & Natural Gas to Diverse Markets Diversifying Black Swans Marketing Portfolio BC NGTL NMML will provide accessQC to AECO and other potential TC AB Energy markets in eastern Canada and the U.S. STN 2 ATP SK MB…
Risk Management: Financial Hedging & Physical Diversification GJ/d Natural Gas Hedging /GJ 250,000 2.50 Natural Gas 200,000 2.00 Actively working to achieve downside coverage and diversification for natural gas1 150,000 1.50…
2019 Guidance: Production Targets Unchanged with Lower Capital 2019 Capital Program Drilling capital budget (includes maintenance to stay flat): Wells: 93MM (23 Hz drills, 20 completions, 20 tied-in) D&C costs 8% below budget YTD…
Balanced Execution - Environment, Health & Safety, Community Environment Health & Safety Community Involvement Ranked No. 1 for LMR1 among all BC Health, Safety & Environment Policy Coordinated First Nations Training oil and gas…
Aitken Area: Depth of Inventory Underpins Long Term Planning Jedney Core Area: 400 Hz Locations Remaining Upper Montney Hz inventory delineated in the Aitken core development area 10-20 years of locations remain based on a…
Strength Across Multiple Factors Drives Long Term Profits Well Performance Infrastructure Advantage Average EUR Bcf (Wells Drilled Last 36 Mos.)1 2.8X 2019E Operating Costs (/boe)2 12.0 Recycle Ratio 10 10.0 9.1 8 8.0 Forward…
Appendix Liquids Rich Montney Value Scale Growth 18
Black Swan Energy Executive Team David Maddison, P.Eng. Marc Mereau, P.Eng. David is President, CEO and founder of Black Swan Energy. Marc is Chief Operating Officer and a co-founder of Black He has over 37 years of industry experience…
Black Swan Energy Board of Directors David Maddison, P.Eng. David B. Krieger, MBA David is President, CEO and founder of Black Swan Energy. He has over 37 years of David is a member of the Warburg Pincus Executive Management team, having…
Historical Financial Summary 2019 2018 2018 2017 2017 Q2 (3) Q1 Full Year Q4 Q3 Q2 Q1 Full Year Q4 Q3 Q2 Q1 Production Gas (mcf/d) 114,449 120,169 121,614 120,960 125,401 121,914 118,105 88,559 116,138 85,769 66,194 85,832 NGL (bbl/d)…
Type Curve Assumptions 1. AECO Delivery: Economics assume volumes flow through new Black Swan owned infrastructure (reflects full cycle) with tolls to AECO on the NGTL system and gas realizations priced equal to AECO 2. FX rate of…
Completions: Optimization of Design Completion Design Evolution Completed Well Length 2400 7,600 Early move to short stages, optimizing well length and sand loading in 2200 7,100 development 2012/13 Perf-plug, long stage length, 8…
Upper Montney Multi-Well Pad Production Summary Cum to Black Swan utilizes downhole chokes Internal UWI Completion Montney IP30 / well IP90 / well IP365 / well Jun/19 EUR on all Hz wells for operational Reference (Year) Target (mcf/d)…
Pad Operations: Core Area Delineated with High Rate Pads Avg Aitken Core Area Plot Year Wells/ D&C Avg EUR Legend Pad Completed Pad (MM) (Bcf) 32-C 2018 6 4.5 10.2 19-E 72-C 2017 6 4.7 11.3 92-C 42-D 2017/2018 8 3.9 8.5 7-H 42-D…
Black Swan Liquids Yields at Aitken Creek North Gas Plant Black Swan Corporate Liquid Yield 100 90 Black Swans plant provides superior liquids yield vs. McMahon Aitken Creek: Superior Recoveries 80 Until August 2017 North Aitken…
Growing PDP and Proved Reserves for Less 2018 Year-end PDP FD&A & Reserves Growth vs. Montney Peers 25.00 35% 30% 2018 PDP Reserves Growth 20.00 25% PDP FD&A (/boe) 15.00 20% 10.00 15% Leading Y/Y PDP Growth 5.00…
Growth Plan Supported by Low Cost Reserves Net Present 2018 PDP adds replaced 162% of annual production 2018 Company Interest Reserves Value1 Before Tax (MM) Gas NGLs Total 16% 2018 Total Reserve Volume 0% 10% (MMcf) (mbbl)…
North Montney Mainline Construction Underway Eastern and Western Market Potential NMML construction commenced Aug 2018 British Columbia Expected fall 2019 on-stream NGTL Production to flow onto the NGTL system Part of multi billion…
Black Swan & AltaGas Strategic Infrastructure Co-ownership Investment by AltaGas for 50% WI in certain existing and future natural gas processing plants of Black Swan: 136MM in 2018 50MM in Q4/19 The Aitken Creek Processing…
Substantial Resource to Unlock Capable of sustaining 2 Bcf/d Jedney for 10 years Gas-in-place supports long-term growth Average 250 Bcf/DSU OGIP 83 Tcf of gas-in-place Over 2,600 Hz well locations and 15 Tcfe of 1 recoverable…
Delivering on a Long-Term Strategy Repeatable deliverability Caribou Highly over-pressured reservoir 13-16 kPa/m Jedney Laprise Normally Liquids-rich Pressured Total liquids of 30-50 bbl/MMcf1 (50% C5+) Alberta B.C. Beg Low…
NEBC Growth Driven by Junior/Intermediate Producers Industry Investment North Montney production peak at over 1.6 Bcf/d April 2018 Juniors and Intermediates represent 55% of total North Montney production, up from 30% four years…
Corporate Information Executive Independent Reserve Evaluator David Maddison President & Chief Executive Officer GLJ Petroleum Consultants Marc Mereau Chief Operating Officer Bruce Thornhill VP Exploration Auditors Michael Wilhelm VP…
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