SUSTAINABLE CONVENTIONAL RESOURCE COMPANY TSX: SGY MARCH, 2020
REASONS TO OWN SURGE TSX: SGY Value based with a strong focus on sustainable production from conventional reservoirs In response to the current volatility in global crude oil markets, Surge management and Board have reacted…
SIGNIFICANT HEDGE POSITION (1) Robust 2020 hedging program provides balance sheet protection OIL HEDGES Well-positioned with 42% of net oil production hedged (i.e. 1.6 million barrels) at approximately CAD 80/bbl for Q1…
2019 HIGHLIGHTS Disciplined business strategy provided strong operational and financial results Average daily production increased by 17% in 2019 to 21,175 boepd, from 18,058 boepd in 2018; Increased operating netbacks(2) year over…
2019 YEAR END RESERVES 1.6 Billion of Total Proved plus Probable Reserves Value (NPVBT10) 2019 Year End Reserves(1)(2) Increased Total Proved reserves per debt adjusted Oil & NGLs Gas Total NPVBT10 share by 4% in 2019; Reserve…
NET ASSET VALUE High quality conventional reservoirs continue to deliver value to shareholders 2019 NAV per Share PDP TP TPP Reserve Value NPV10 BT (MM) 603 1,023 1,644 Undeveloped Land and Seismic (MM) (1) 131 131 131 Net Debt…
2020 GUIDANCE AND KEY CORPORATE ATTRIBUTES Cost effective, sustainable, low decline, crude oil production base Key Operational and Financial Attributes Large Net OOIP: 2.5 Bbbls (5.6% cum to date recovery factor)(1)(2) High Netback,…
OPERATIONS FOCUSED IN 4 CORE AREAS Large OOIP pools in established conventional reservoir trends Greater Sawn: Total: 5,000 boe/d (93% Oil & NGLs) Average Area Production Total: 21,000 boe/d (86% Oil & NGLs) Valhalla:…
NET OOIP OF 2.5 BILLION BARRELS Large OOIP, with low recovery factors - focused in conventional reservoirs SGY Net CTD(2) Total Booked Net Total Net drilling Estimated Net Oil Independent Recovery Core Area Formations Locations…
TARGETING CONVENTIONAL OIL RESERVOIRS Surge focuses on high quality reservoirs at the conventional end of the permeability spectrum Recovery factors, internal rates of return (IRR)(1), decline rate, and profit to investment ratio…
SPARKY A DOMINANT POSITION Applying modern technology to a prolific Western Canadian formation AB SK The Sparky is a large, well established, prolific oil producing formation in Western Canada. Surge holds a dominant land position in…
2019 SPARKY DRILLING RESULTS Production results continue to outperform internal type curve expectations Wainwright Betty Lake Silver Macklin Lakeview Provost 24 horizontal Sparky wells drilled and on production in…
EYEHILL A CASE STUDY Increased production and cashflow over 380% in 3 years YE 2015 Maintain Flat Production as per Divco Model Surge Eyehill: 200MMbbls net OOIP 65 net locations remain (45 net booked) Source:…
GREATER SAWN - CONCENTRATED LIGHT OIL 600MMbbls net OOIP in concentrated Slave Point reservoirs Sawn OOIP of 700 MMbbls net of light oil OOIP: 200 MMbbl net (35-42 API). Red Earth Development inventory of 150 net locations OOIP:…
VALHALLA STACKED MULTI-ZONE POTENTIAL Multiple large OOIP light oil reservoirs provide a sustainable drilling inventory and production base 200MMbbls of net combined OOIP. Doig wells continue to be among the most prolific oil…
SHAUNAVON 400 MMbbl net OOIP on Surge lands in the Upper and Lower Shaunavon Shaunavon produces 100% high netback, low decline oil. Upper Shaunavon net OOIP is estimated to be 200MMbbl. 65 net locations (35 net booked). 10…
CORPORATE SUSTAINABILITY Surge is taking a proactive approach to Environmental, Social, and Governance issues Environmental Social Governance Surge abandoned 149 Surge employs a pro- Surge is committed to wells in 2019 which is…
APPENDIX FOOTNOTES INCLUDED IN THE BACK AS ENDNOTES 19
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program. Below is a list of Surges current WTI hedges: WTI Hedges - Swaps Quarter Volume Swap (USD) Qtr. 1 2020 3,250 58.17 Qtr. 2 2020…
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program. Below is a list of Surges current WTI hedges: WCS Oil Differential Hedges Natural Gas Hedges Floor Ceiling Type Term Volume Currency…
INTEREST RATE AND FX HEDGING & CONVERTIBLE DEBENTURE INTEREST RATE HEDGE Notional Amount Surge Type Term Surge Pays Fixed Rate Surge Pays (CAN) Receives Semi-Annual Step Up Beginning at 1.786% Fixed-to-Floating Rate Swap Feb 2018…
ANALYST COVERAGE Financial Institution Analyst Email Address Acumen Capital Partners Trevor Reynolds treynoldsacumencapital.com BMO Capital Markets Ray Kwan ray.kwanbmo.com Canaccord Genuity Anthony Petrucci…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Bank of Montreal ATB Financial Bankers Syndicate: Canadian Imperial Bank of Commerce Toronto-Dominion Bank HSBC Bank Canada BDC Capital Goldman Sachs…
NON-GAAP FINANCIAL MEASURES Certain secondary measures in this presentation are disclosed for the purpose of providing investors with additional insight as to how the Company evaluates the management of its capital and analyze business…
NON-GAAP FINANCIAL MEASURES CONTD All-in Payout Ratio All-in payout ratio is calculated using the sum of total exploration and development capital, plus dividends paid, divided by cash flow from operating activities less payments on…
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