Corporate Snapshot & Select Guidance Q4 2018 average production 76,408 boe/d 2018 annual average production 77,096 boe/d 2018 adjusted funds flow (millions / per share) 312.9 / 1.18 per share 2018 net income to common shareholders…
FULL YEAR 2018 HIGHLIGHTS Annual average production of 77,096 boe/d, a 13% increase from 67,963 boe/d in 2017 Annual adjusted fund flow of 312.9 million (1.18/basic common share), a 2% decrease from 317.7 million (1.20/basic common…
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…
PRODUCTION HISTORY 90,000 76,000 80,000 77,096 78,000 Compound per-share production growth of 12% per year since 2005. 70,000 67,963 (14% since PC Gas Plant Phase I Average Production (boe/d) Completion) 60,000 49,236…
BIRCHCLIFF CORPORATE DECLINE(1) Long life, low decline asset allows for smaller capital wedge YoY needed to maintain Corporate Production (boe/d) volumes 20% Decline 19% Decline 20052018 2019 2020 (1) Production…
CORPORATE RESERVES 1,200,000 7,000 PDP - Reserves 1,100,000 TP - Reserves 2P - Reserves 6,000 1,000,000 PDP - NPV10 On a per share basis PDP, 1P and 2P 900,000 TP - NPV10 reserves have increased at a compound annual growth rate…
PROVEN TRACK RECORD AS A LOW COST PRODUCER 5 Year Profitability Breakdown: 2014 2015 2016 2017 2018 Average Average AECO (CAD/GJ) 4.27 2.55 2.05 2.04 1.42 2.47 Average WTI (USD/bbl) 92.99 48.80 43.32 50.95 64.77 60.17 P&NG Revenue…
2019 CAPITAL PROGRAM THEMES In 2019, Birchcliff is targeting its total capital expenditures to be less than its adjusted funds flow. Free funds flow is estimated to be 126 MMin 2019(1)(2) 2019 annual average production guidance is for…
2019 CAPITAL PROGRAM DETAILS 2019 F&D CAPITAL PROGRAM Drilling & Development Gross Wells Net Wells Capital (MM) (1)(2) Pouce Coupe Montney D1 Horizontal Natural Gas Wells 6 6.0 34.8 Montney D2 Horizontal Natural Gas Wells 2 2.0 11.4…
2019E NATURAL GAS MARKETING February 13, 2019 AECO 1.65 0.04 0.36 1.26 146,000 GJ/d 35% 39% 1% 163,000 GJ/d Dawn 3.40 6,000 GJ/d 0.14 Alliance 1.20 25% 2.06 2.00 0.04 0.32 105,000 GJ/d 1.64 Note: All Birchcliff…
RISK MANAGEMENT, HEDGING & DIVERSIFICATION In 2019, approximately 65% of Birchcliffs natural gas production will effectively be sold at prices that are not based on AECO (based on 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 367.4 sections prospective for the Montney/Doig as at December 31,…
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…
CONTINUED NATURAL GAS RATE IMPROVEMENT OF WELLS ONSTREAM: 2015 30 2016 14 2017 37 2018 15 2018 Wells choked due to PC Gas Plant being full 32
CONTINUED CONDENSATE RATE IMPROVEMENT During 2018 Birchcliff specifically targeted condensate- rich natural gas wells in Pouce Coupe, which has materially impacted the amount of liquids (primarily condensate) being produced at the…
CONTINUED COST AND DESIGN REFINEMENT Both Pouce Coupe and Gordondale have moved to increased frac intensity to maximize oil and condensate rates Overall well costs have slightly increased due to increased frac intensity 34
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 Scheduled 40,000 2015) with peak production of Acquisition AltaGas Plant 35,000 boe/d (22,000 BOE/d) Turnaround 35,000 2018 AltaGas Deep Cut Plant…
2017 LIQUIDS SUMMARY BUILDING ON THE GORDONDALE ACQUISITION 2017 Well Rates (IP60 Avg. Per Well) GORDONDALE: CRUDE OIL Excellent Lower Montney oil inventory in D1 and D2 intervals Engineered completions drive recovery factor…
2018 LIQUIDS SUMMARY FURTHER REFINING OUR LIQUIDS STRATEGY 2018 Well Rates (IP60 Avg. Per Well) GORDONDALE: CRUDE OIL Strong Montney D2 oil and total BOE test rates Strong Montney D1 oil and total BOE test rates Further refinements…
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…
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 or Cemented Inter-well spacing…
TERMINAL DECLINE CHANGES IQRE continued support for low terminal decline rates from Birchcliffs existing wells and offsetting industry wells with significant production history. Deloittes 2P Tier 0 type curve has remained at 8.2 Bcf…
PC GAS PLANT The Engine for Future Growth
Production Processed through the PC Gas 2013 2014 2015 2016 2017(5) 2018(5) Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 91,666 132,808 163,641 168,444 193,417 250,011 Oil & condensate (bbls) 527 1,065…
Corporate Operating Costs vs. % of Natural Gas Sales KEY STRATEGIC Volumes Processed at the PC Gas Plant 10.00 100% Corporate Operating Cost (/boe) Volume Through PC Gas Plant ADVANTAGES 8.00 80% 6.00 60% 100% owned…
PC GAS PLANT HIGHLIGHTS Following the successful condensate-rich drilling program, Birchcliff is initiating the engineering and planning of a 20,000 B/d liquids handling hub at the plant (est. completion Q3/2020) Current processing…
BUILDING ON OUR PAST Over 10 Years of Success
Forecasted annual average production of Birchcliffs average daily production was 77,096 boe/d in 76,000-78,000 boe/d in 2018 compared to 2,793 boe/d in 2005, a compounded 2019 annual growth rate of 29% per year over that span.…
Birchcliff has increased production at a compound annual growth rate of 29% since 2005. Operating & Cash Costs * 20 18 16 14 Operating and cash costs have 12 decreased by 66% and 41% since /boe 10 8 2008 largely…
Reserves Growth 1,200 4,000 1,000 3,200 Birchcliff has added significant low cost reserves since commencing operations in 800 2005. On a per common share boe/1,000shares 2,400 MMboe 600 1,600 basis, PDP, 1P and…
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, 2018 (gas only) at Dec 31, 2017 (gas only) 5.1 Tcf +…
2018 YEAR END MONTNEY/DOIG RESERVES Drilled 27 HZ M/D wells and acquired 2 HZ M/D wells Drilled 53 HZ M/D wells Drilled 20 HZ M/D wells 385 (380.6 net) Montney/Doig horizontal and acquired 87 HZ M/D wells wells drilled as of…
MONTNEY/DOIG WELL LOCATIONS Existing and Potential Future Drilling Locations by Interval at December 31, 2018 Average Proved Plus Probable Reserves plus Cumulative Gross Number of 2P Net Number of 2P Production Horizontal Well…
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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