Corporate Snapshot & Select Guidance Q3 2018 average production 79,331 boe/d Estimated 2018 annual average production 76,000 78,000 boe/d % oil and NGL 20% Q3 2018 cash flow (millions / per share) 75.4 / 0.28 Estimated 2018 capital…
Q3 2018 HIGHLIGHTS Quarterly average production of 79,331 boe/d, a 22% increase from 65,276 boe/d in Q3 2017 Quarterly cash flow of 75.4 million (0.28/basic common share), a 17% increase from 64.4 million (0.24/basic common share) in…
INVESTMENT HIGHLIGHTS Focused assets in the Peace River Arch Area of Alberta on the Montney/Doig Resource Play Essentially 100% working interest; 99% of production is operated Large, contiguous undeveloped land base with an average…
STRATEGIC LAND ACQUISITION Key Strategic Attributes 18 gross (15.1 net) Montney sections adjacent to existing BIR infrastructure Potential for 4 Montney intervals (Montney D1, D2, C, Basal Doig/Upper Montney) Strong anticipated…
STRATEGIC LAND ACQUISITION CONTD The acquisition provides a rare opportunity to acquire a large contiguous land block in proximity to BIR 3-22 plant as there is currently no open Crown available Extends liquids production fairway in…
90,000 PRODUCTION HISTORY 76,000 80,000 78,000 70,000 Compound per-share production 67,963 growth of 12% per year since 2005. Average Production (boe/d) (14% since PC Gas Plant Phase I 60,000 Completion) 49,236 50,000…
BIRCHCLIFF CORPORATE DECLINE(1) Long life, low decline asset allows for smaller capital wedge YoY needed to maintain volumes Corporate Production (boe/d) 26% 20% Base Decline Base Decline (1) 20052017 Production profile…
CORPORATE RESERVES 1,000,000 7,000 PDP - Reserves TP - Reserves 900,000 2P - Reserves 6,000 800,000 PDP - NPV10 TP - NPV10 On a per share basis PDP, 1P and 2P reserves have increased at a compound 5,000 700,000 2P - NPV10 annual…
PROVEN TRACK RECORD AS A LOW COST PRODUCER 5 Year Profitability Breakdown: 2013 2014 2015 2016 2017 Average Average AECO (CAD/GJ) 2.99 4.27 2.55 2.05 2.05 2.78 Average WTI (USD/bbl) 97.97 92.99 48.80 43.32 50.95 66.81 P&NG Revenue…
2018 & 2019 CAPITAL PROGRAMS 2018 The revised 2018 capital budget of 288 MM includes the original (unchanged) 255 MM 2018 capital budget and 33 MM of 2019 capital accelerated into Q4/18 to take advantage of development efficiencies…
REVISED 2018 CAPITAL PROGRAM DETAILS 2018 CAPITAL PROGRAM Drilling & Development Gross Wells Net Wells Capital (MM) Pouce Coupe - Montney D1 Horizontal Gas Wells 12 12.0 66.2 Pouce Coupe - Montney D2 Horizontal Gas Wells 1 1.0 4.9…
2019 NATURAL GAS MARKETING November 14,2018 AECO 1.75 0.02 0.29 1.44 158,000 GJ/d 38% 36% 1% 154,000 GJ/d Dawn 3.50 6,000 GJ/d 0.13 Alliance 1.20 25% 2.17 2.10 0.02 0.33 105,000 GJ/d 1.75 Note: All Birchcliff gas…
RISK MANAGEMENT & HEDGING In 2019, approximately 62% of Birchcliffs natural gas production will effectively be sold at prices that are not based on AECO (based on preliminary 2019 production guidance of 76,000 - 78,000 BOE/d)…
BORROWING BASE DETAILS Birchcliff has extendible revolving credit facilities in the aggregate principal amount of 950 million, which are comprised of an extendible revolving syndicated term credit facility of 850 million and an…
MONTNEY/DOIG RESOURCE PLAY A Significant Position in a World Class Play
MONTNEY/DOIG - A WORLD CLASS RESOURCE PLAY Resource density. Stacked resource up to 300 metres thick. Large areal extent. Extends over 50,000 square miles. Exceptional fracability. Low clay Birchcliff Montney/Doig content, low Poissons…
MONTNEY/DOIG MINEROLOGY LEADS TO EXCELLENT FRACABILITY The Montney/Doig Resource Play rock type is composed of a Some other Resource Plays have a high percentage of clays high percentage of hard minerals, and a low percentage of and…
BIRCHCLIFF MONTNEY/DOIG RESOURCE PLAY The Gordondale Acquisition added a fourth commercial development interval in the Montney D2 Large contiguous land base with 349.4 sections prospective for the Montney/Doig as at December 31,…
BIRCHCLIFF MONTNEY/DOIG INVENTORY Note: Location counts based on Deloitte YE2017 Reserve Report 29
PROXIMAL TO INFRASTRUCTURE WITH LONG TERM EXPOSURE TO LNG EXPORT Montney/Doig Birchcliff Pouce Coupe Production Montney/Doig & PC Gas Plant Owned Infrastructure PC Gas Plant Nova Pipeline System North American Market…
POUCE COUPE OVERVIEW Proven asset in development phase Wells show high initial deliverability, low terminal decline and stable long term production Predictable results with improving gas rates & liquids yields 100% owned and…
2018 WELL PERFORMANCE Deloitte Tier 0 Type Curve 32
CONTINUED WELL IMPROVEMENT Deloitte Tier 0 Type Curve 2018 Wells choked due to PC Gas Plant being full 33
CONTINUOUS COST AND DESIGN REFINEMENT Drilling costs have decreased while overall well costs have slightly Birchcliff Corporate Wellbore Evolution increased due to 7,500 increased2,f5r0a0cintensity Lateral Length (m) and Frac…
2017 LIQUIDS 2017 New Wells IP60 Rates (Avg. Per Well) SUMMARY MAP GORDONDALE: CRUDE OIL Excellent Lower Montney oil inventory in D1 and D2 intervals Engineered completions drive recovery factor improvements EOR scheme under…
2018 LIQUIDS 2018 New Well Production Test Rates SUMMARY MAP GORDONDALE: CRUDE OIL Strong Montney D2 oil and total BOE test rates Strong Montney D1 oil and total BOE test rates Further refinements of engineered completions having…
POUCE COUPE LIQUIDS TYPE CURVE 2018 TARGETED WELL 5,000 Rate of Return (%) WTI (US/bbl) 55/bbl 60/bbl 65/bbl 1.50/GJ 30% 32% 35% 4,000 AECO 2.00/GJ 46% 49% 51% Sales Gas Rate (Mscfd) 2.50/GJ 64% 68% 71% 3,000 NPV 10%…
GORDONDALE OVERVIEW Acquired in 2016, Gordondale consolidated a sizeable and contiguous land base within Birchcliffs existing core area High oil & NGLs weighting Strategic infrastructure Low base decline production High quality…
GORDONDALE KEY INFRASTRUCTURE Key Natural Gas Processing Infrastructure Existing infrastructure has already AltaGas Gordondale CNRL Progress Sour Deep Cut Gas Plant Sour Shallow Cut Gas Plant supported peak production of…
GORDONDALE BASE PRODUCTION HISTORY Last well drilled in 2014 (on-stream Birchcliff 40,000 Scheduled 2015) with peak production of Acquisition AltaGas Plant 35,000 boe/d (22,000 BOE/d) Turnaround 35,000 30,000 AltaGas Deep Cut…
ELMWORTH DEVELOPMENT Received regulatory approval for an Second Exploration acid gas injection well in August 2016 Horizontal Preliminary planning underway for a 100% owned and operated 40 MMcf/d natural gas processing plant;…
CONCEPTUAL MONTNEY/DOIG FIELD DEVELOPMENT MODEL STATUS OF MODEL CALIBRATION AND DERISKING FACIES & PETROPHYSICAL G EOLOG I C A L, GEOPHYSI CAL, G E O M E C H A N C A L HYDRAULIC FRA C & M I C R O SEIS. RESERVOIR M O D E L OPT I MI…
POUCE COUPE DRILLING PERFORMANCE Drill Cost Efficiency Average Drilling Speed (Spud to Rig Release) 800 300 750 Cost per Drilled Length (/m MD) 2017 - 1,993k/well (4,832m MD, 32 Stages Planned) 250 2017 - 3.7 Days/1000m 700…
POUCE COUPE LOWER MONTNEY (D1) CORE AREA COMPLETION EVOLUTION Completion Cost per Stage vs. Number of Stages Proppant Intensity 400 40 1.00 200 Completion Cost Per Stage (000's) 350 35 0.90 180 Average Proppant Intensity…
ENGINEERED COMPLETIONS FOR MONTNEY/DOIG FULL FIELD DEVELOPMENT Industry Range Birchcliff Best Practices Oil Birchcliff Best Practices Gas Liner type Openhole or Cemented Openhole or Cemented Openhole Inter-well spacing 100 400 m…
TERMINAL DECLINE CHANGES Continued support for low terminal decline rates from Birchcliffs existing wells and offsetting industry wells with significant production history. Deloittes Tier 0 type curve has remained at 8.2 Bcfe sales…
PC GAS PLANT The Engine for Future Growth
Production Processed 9 Mo. through the PC Gas 2013 2014 2015 2016 2017(4) 2018(4) Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 91,666 132,808 163,641 168,444 193,417 261,313 Oil & condensate (bbls) 527…
Corporate Operating Costs vs. % of Natural Gas Sales KEY STRATEGIC 10.00 Volumes Processed at the PC Gas Plant 100% Corporate Operating Cost (/boe) Volume Through PC Gas Plant ADVANTAGES 8.00 80% 6.00 60% 100% owned…
PC GAS PLANT HIGHLIGHTS Current processing capacity of 340 MMcf/d Phase VI expansion was completed ahead of its initially scheduled October 1, 2018 completion date, adding 80 MMcf/d bringing total processing capacity to 340 MMcf/d…
BUILDING ON OUR PAST Over 10 Years of Success
Forecasted record annual average production of Birchcliffs average daily production was 67,963 boe/d in 76,000-78,000 boe/d in 2017 compared to 2,793 boe/d in 2005, a compounded 2018 annual growth rate of 30% per year over that…
Production Growth 80,000 300 70,000 boe/d/million wtd. avg. shares 250 60,000 Birchcliff has increased production at a compound annual growth rate of 200 50,000 boe/d 40,000 30,000 150 30% since 2005. 100 20,000…
Reserves Growth 1200 4,000 1000 3,200 Birchcliff has added significant low cost 800 reserves since commencing operations in boe/1,000shares 2,400 MMboe 600 2005. On a per common share 400 1,600 basis, PDP, 1P and 2P…
APPENDIX
ENOUGH RESOURCE TO FILL A 2.1 Bcf/d LNG TRAIN FOR OVER 20 YEARS 1 Bcf/d LNG Train X 365 Days X 20 Years = 7.3 Tcf BIR Remaining Reserves as BIR Contingent Resource as at Dec 31, 2017 (gas only) at Dec 31, 2017 (gas only) 4.9 Tcf +…
2017 YEAR END MONTNEY/DOIG 1,000, RESERVES Drilled 53 HZ M/D wells Drilled 20 HZ M/D wells and acquired 87 HZ M/D wells 900,000 348 (342.8 net) Montney/Doig horizontal Drilled 29 HZ M/D wells 800,000 wells drilled as of Dec…
MONTNEY/DOIG WELL LOCATIONS 59
SERIES A PERPETUAL PREFERRED SHARES Preferred Share Details Series A Number of Shares 2 million Issue Date August 8, 2012 TSX Trading Symbol BIR.PR.A Issue / Par Price 25.00 per share Quarterly Dividend 0.523375 per share Yield on…
SERIES C PREFERRED SHARES Preferred Share Details Series C Number of Shares 2 million Issue Date June 14, 2013 TSX Trading Symbol BIR.PR.C Issue / Par Price 25.00 per share Quarterly Dividend 0.4375 per share Yield at Issue 7.0%…
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