Montney Liquids-Rich Growth Story Corporate Presentation Private and Confidential August 2019 Saguaro Resources Private and Confidential August 2019 1
Track Record of Success Sets Stage for Material Long-Term Value Creation(1) Growth Potential Attractive Economics Proven Track Record Privately-held pure play NE BC Economics at low gas prices Capital efficient execution led by…
Growth Potential Saguaro Resources Private and Confidential August 2019 3
Full Development Plan Provides Material and Sustainable Organic Growth(1)(2) 250,000 Strategically advancing a low-risk development play 2013: initiated pilot program 200,000 2015: commercial development began 2018: average…
High Quality Asset in One of North Americas Leading Oil & Gas Plays(1) The Montney is a large, world class oil and gas play with leading supply costs and economics Saguaro has acquired a large strategic land position in the NE BC…
Sproules Assessment of Saguaros Reserves and Risked Resource Base(1)(2)(3) 15 MMBoe Produced 1P: 152 MMBoe 2P: 420 MMBoe 3P: 703 MMBoe (22% liquids) (22% liquids) (22% liquids) 1P HZ Well Count: 187 2P HZ Well Count: 363 3P HZ…
Stacked Zone Exploitation Multiplies Productive Potential(1)(2) All three Montney targets proven productive Over pressured: 11-15 kPa/m Shallow depth: 1,400-1,900 m Gross pay: up to 265 m across 3 stacked porous zones…
Successful De-Risking & Delineation Drives Reserve Growth(1) De-Risking & Delineation(2) Reserve Bookings(3) High confidence in our resource which is 98% de-risked through High quality asset has allowed impressive, consistent…
Substantial, Low Cost Reserve Growth(1) Sproule December 31, 2018 Reserves Summary 2P Reserves Growth(4) 500 Proved Total Developed Total Proved Plus 400 (Company Gross) Producing (PDP) Proved (1P) Probable (2P) MMBoe 300…
Attractive Economics Saguaro Resources Private and Confidential August 2019 10
Advancing Well Design to Drive Material Type Curve Improvement(1) Three Generations of Saguaro Drills(2) Advancing Well Design Improves Results(3) 1,750 7 Bcf 8 Bcf 10 Bcf Generation Second Third OH Upside 1,500 HZ Length meters…
Drilling: Efficiencies Offset Cost of Longer Laterals(1) Drilling(2) 6.0 1,000-1,500 m 3,000 Avera ge Cost per Well (MM) 14 wells 5.0 2,000 m 2,500 2,500 m 2,500 m Cos t () per HZ m 6 wells 2,000-2,500 m 9 wells 4.0…
Completions: Evolving Design to Enhance Recoveries and Reduce Costs(1) Multiple completion designs tested over time Open Hole vs. NCS systems; 10 to 85 frac stages; 1.0 to 2.0 tonnes/m Current program focus on 40 stage, high…
Field Infrastructure Designed to Support Long-Term Growth(1) Installed three stages of 12 backbone gathering system on Saguaro lands Built to support future growth Building water pipelines in conjunction with gathering lines to…
100% Owned and Operated Facility(1) Recently expanded capacity to 110 MMcf/d to support production growth Highly competitive cost-to-date of 0.75 MM/MMcfd Full site expandable to 1 Bcf/d Process Capacity Inlet (Upgraded) 140…
Competitive Single Well Economics at Flat Prices(1) Single Well Sensitivities(2)(3) 160% Based on Flat AECO 1.50/GJ & WTI US60/Bbl(2) 7 Bcf 8 Bcf 10 Bcf 140% Generation Second Third OH Upside Horizontal Well Length (m) 2,000 m…
Proven Track Record Saguaro Resources Private and Confidential August 2019 17
Consistent Liquids-Rich Production Growth Since Inception(1) Production by Product 20,000 Producti on (Boe/d) 16,000 Q2 2019 production of 16,694 Boe/d 12,000 3 wells onstream late June 2019 April 2019 production exceeded…
Strengthening Netbacks During a Period of Low Commodity Prices(1)(2) 40.00 80% 74% 69% 35.00 65% 66% 70% 63% Revenue from 60% 61% Liquids 58% 30.00 60% 52% 53% 47% 48% 48% 47% 48% 47% % Revenue from Li quids 25.00 50%…
Production volumes aligned with current risk management program Extensive Natural Gas Risk Management Program(1)(2)(3) Program utilizes both financial hedging and marketing contracts 150,000 Marketing contracts include: 28,695…
Full Development Plan with Substantial Long Term Growth(1)(2) Full development plan allows production growth to a peak of 215,000 Boe/d (1 Bcf/d Sales) in 2029 Production can be maintained at this level for 10 years Assumes 1,400…
Funding Long Term Growth while Maintaining Reasonable Debt Metrics(1)(2)(3) Dynamic development program flexible with market conditions Full Development Plan(5) 1,400 Capital program increasingly funded by cash flow Capital (B) 8.7…
Third Party Processing & Transportation(1) Third Party Processing Condensate Pipeline Currently connected to three third party processing facilities Contracted firm service: 130 MMcf/d effective June 2019 Significant…
Expanding North American Market Access(1) Physically connected to five gas pricing hubs across North America (AECO, Station 2, Sumas, Chicago, and Dawn) Financial hedging contracts in place to access additional Station markets…
Strategically Positioned for LNG Upside Potential(1) Global LNG demand expected to grow significantly From 42 Bcf/d in 2018(2) to 82 Bcf/d by 2035(3) Ideally positioned to provide substantial long-term natural gas To Asian…
Saguaros Value Proposition(1) Experienced management team has consistently delivered material, capital efficient growth since inception in 2012 Advancing continuous improvement initiatives to enhance well productivity and cost…
Supplementary Materials Saguaro Resources Private and Confidential August 2019 27
Corporate Information Officers Auditors Bankers Stacy Knull President & Chief Executive Officer PricewaterhouseCoopers LLP Canadian Imperial Bank of Commerce Scott Carrothers Vice President Finance & Chief Financial Officer 3100, 111…
Reserves Evaluations(1) Reserves(2)(3) NPV10 per Boe Locations (MBoe) (BT /Boe) () (Company Gross) YE 2015 YE 2016 YE 2017 YE 2018 YE 2015 YE 2016 YE 2017 YE 2018 YE 2015 YE 2016 YE 2017 YE 2018 Proved Developed 9,181 15,822 31,215…
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