Corporate Snapshot & Select Guidance Estimated 2019 annual average production 77,000 79,000 boe/d % oil and NGL 22% Estimated 2019 adjusted funds flow (millions) (1) 335 Estimated 2019 F&D capital expenditures (millions) 242…
Corporate Snapshot & Select Guidance Continued Total debt as at September 30, 2019 (millions) (3) 644.4 Credit facilities limit as at September 30, 2019 (billions) 1.0 Common shares (basic) as at September 30, 2019 (millions) 265.9…
LOOKING FORWARD 2020 Plans & Beyond
2020 CAPITAL PROGRAM 2020 Capital Program - Capital Expenditures by Classification Classification Capital (MM) DCCET Pouce Coupe(1) 104 - 110 Gordondale(1) 95 - 100 Additional Well Completions Capital (2) 21 - 22 Total DCCET 220 -…
2020 CAPITAL PROGRAM 2020 Capital Program - Wells to be Drilled and Brought on Production Total w ells to be brought on Area Total w ells to be drilled in 2020 production in 2020(1) Pouce Coupe Montney D1 horizontal natural gas…
FIVE YEAR PLAN THEMES Fully utilizing the available capacity of Birchcliffs existing infrastructure Increasing Birchcliffs free funds flow and reducing per-unit operating costs Maintaining and strengthening Birchcliffs balance…
FIVE YEAR PLAN PRODUCTION Filling all existing infrastructure to drive down per-unit costs and maximize efficiencies 100,000 Average Production (boe/d) 95,000 90,000 85,000 80,000 75,000 70,000 2020 2021 2022 2023 2024…
FIVE YEAR PLAN FINANCIAL 600 500 Full utilization of infrastructure 400 millions drives 300 significant free 200 cash flow growth 100 0 2020 2021 2022 2023 2024 Sustaining Capital Growth Capital Free Funds Flow 2020…
MULTI-INTERVAL CUBE-STYLE DEVELOPMENT It is very important to note that all rock is not the same and Birchcliff has material, proprietary knowledge respecting all aspects of the Montney/Doig Resource Play in our area of focus. This…
MULTI-INTERVAL CUBE-STYLE DEVELOPMENT 2,400m 1,600m January 22, 2020 13
BIRCHCLIFFS HISTORY A Track Record of Execution
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…
PRODUCTION HISTORY 90,000 77,000 80,000 79,000 82,000 80,000 77,096 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 in…
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 5,000 2P - NPV10…
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…
CORPORATE RESPONSIBILITY Environmental, Social & Governance Waste heat recovery units on phases V & VI of the PC Gas Plant and additional emission reduction initiatives take the equivalent of 5,000 cars off the road annually…
CORPORATE RESPONSIBILITY Community Involvement Over 3 million donated to more than 100 local community groups and organizations in the last 3 years Continued partnerships with local communities through educational, cultural, and…
2020E NATURAL GAS MARKETING AECO 2.10 0.04 0.34 1.72 91,000 GJ/d 22% 44% 1% 185,000 GJ/d Dawn 3.15 5,000 GJ/d 0.12 Alliance 1.20 33% 2.47 1.82 0.03 0.62 140,000 GJ/d 1.82 Note: All Birchcliff gas realizes a…
RISK MANAGEMENT, HEDGING & DIVERSIFICATION(3) In 2020, approximately 78% of Birchcliffs natural gas production will effectively be sold at prices that are not based on AECO (based on 2020 production guidance of 80,000 - 82,000…
OPEX/TRANSPORT COSTS VS GAS PRICING Opex down 36% Q3/19 vs Q3/17 9.00 4.00 T&M has increased due to increasing access to new markets, realizing a 8.00 74% premium to AECO in Q3/19 3.50 7.00 3.00 6.00 Operating & T&M Costs…
INCREASING WCSB NATURAL GAS EGRESS Additional 5.6 Bcf/d coming online by 2023 Intra-Alberta +1.5 Bcf/d East Gate +1.3 Bcf/d LNG 2.1 Bcf/d Intra-AB Demand West Gate +0.7 Bcf/d 1.5 Bcf/d West Coast LNG +2.1 CANADA Bcf/d…
BORROWING BASE DETAILS Birchcliff has extendible revolving credit facilities in the aggregate principal amount of 1.0 billion, which are comprised of an extendible revolving syndicated term credit facility of 900 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…
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 in 2016 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…
STACKED RESOURCE PROVIDES SUBSTANTIAL FUTURE UPSIDE January 22, 2020 32
MONTNEY/DOIG MULTI LAYER OPPORTUNITY January 22, 2020 33
BIRCHCLIFF MONTNEY/DOIG INVENTORY January 22, 2020 34
FOCUSED ASSETS FOCUSED INFRASTRUCTURE POUCE COUPE GORDONDALE Key Natural Gas Processing Infrastructure Key Natural Gas Processing Infrastructure Pouce Coupe Natural Gas Plant AltaGas Gordondale 3-22-078-12W6 Sour Deep Cut Gas Plant…
WATER STORAGE INFRASTRUCTURE Birchcliff has extensive water storage infrastructure in place to support its completion operations 920,000 m3 of water storage at 10 strategically located sites This volume provides Birchcliff…
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 Only 3 wells in 2019 with 9 or more months of production data Deloitte Tier 0 Type Curve January 22, 2020 38
CONTINUED CONDENSATE RATE IMPROVEMENT Birchcliff continues to target condensate-rich natural gas wells in Pouce Coupe, which has materially impacted the amount of liquids (primarily condensate) being produced at the Pouce Coupe…
CONTINUED CONDENSATE RATE IMPROVEMENT January 22, 2020 40
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 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…
2018 LIQUIDS SUMMARY 2018 Well Rates (Rates are IP60) FURTHER REFINING OUR LIQUIDS STRATEGY GORDONDALE: CRUDE OIL Strong Montney D2 oil and total boe test rates Strong Montney D1 oil and total boe test rates Further refinements of…
2019 LIQUIDS SUMMARY 2019 Well Rates (Rates are IP60 or noted by pad) CONTINUED PURSUIT OF INCREASED LIQUIDS GORDONDALE: CRUDE OIL Successful delineation of the Montney D1 and D2 oil trends to the south Significant Montney D1 and…
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 2018 2018 2017 2017 2016 2016 January 22, 2020 50
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…
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…
PC GAS PLANT The Engine for Future Growth
Production Processed through the PC Gas 2014 2015 2016 2017 2018 9mo/19 Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 132,808 163,641 168,444 193,417 250,011 264,699 Oil, condensate & NGLs (bbls) 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 bbls/d liquids handling hub at the PC Plant (anticipated completion in Q3/2020).…
BUILDING ON OUR PAST Over 15 Years of Success
Forecasted annual average production of Birchcliffs average daily production was 77,096 boe/d in 77,000-79,000 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
CANADAS LNG ADVANTAGE Cleaning Our Worlds Environment, a 2.4 Bcf/d LNG Facility Could; Displace 52.6 million tonnes of carbon emissions from coal-fired power generations. Replace approximately 34 coal fired power plants in China…
ENOUGH RESOURCE TO FILL A 2.2 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, 2018 (gas only) 5.1 Tcf…
PROXIMAL TO INFRASTRUCTURE WITH LONG TERM EXPOSURE TO LNG EXPORT Montney/Doig Birchcliff Montney/Doig Production Resource Play Owned Infrastructure Pouce Coupe Gas Plant Nova Pipeline System North American Market LNG…
2018 MONTNEY/DOIG RESOURCE ASSESSMENT Reserves and Resource Volumes (Bcfe)(1)(2) Resource Class Raw/Sales Low Estimate Case Best Estimate Case High Estimate Cumulative Production(3) Sales 995.4 995.4 995.4 Remaining Reserves(3)(4)…
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…
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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