Corporate Snapshot & Select Guidance Q1 2020 average production (boe/d) 73,580 Light oil (bbls/d) 3,954 Condensate (bbls/d) 4,524 NGLs (bbls/d) 7,962 Natural gas (Mcf/d) 342,831 2019 annual average production 77,977 Light oil…
Corporate Snapshot & Select Guidance Continued Total debt as at March 31, 2020 (millions) (3) 739.6 Credit facilities limit as at March 31, 2020 (billions) 1.0 Common shares (basic) as at March 31, 2020 (millions) 265.9 Market…
LOOKING FORWARD 2020 Plans & Beyond
2020 CAPITAL PROGRAM 2020 Capital Program - Capital Expenditures by Classification Capital Capital Change in Classification REVISED (MM) PREVIOUS (MM) Capital(1) DCCET (2) Pouce Coupe 101 - 107 104 - 110 (3%) (2) Gordondale 40 -…
2020 CAPITAL PROGRAM 2020 Capital Program - Wells to be Drilled and Brought on Production REVISED PREVIOUS Total wells to be drilled in Total wells to be brought Total wells to be drilled in Total wells to be brought (1) (1) Area…
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…
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 May 13, 2020 11
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…
KEYS TO SUCCESS Executives with proven track record, continuity since inception and significant ownership Management Highly experienced Management Team with excellent technical knowledge and a long history with the company 425 (417.4…
PRODUCTION HISTORY 90,000 78,000 77,977 80,000 80,000 77,096 Compound per-share production growth of 11% per year since 2005. 70,000 67,963 (12% since PC Gas Plant Phase I Average Production (boe/d) Completion in 2010)…
CORPORATE RESERVES 1,200,000 7,000 PDP - Reserves 1,100,000 TP - Reserves 2P - Reserves 6,000 1,000,000 On a per share basis PDP, 1P and 2P PDP - NPV10 reserves have increased at a compound 900,000 TP - NPV10 annual growth rate…
PROVEN TRACK RECORD AS A LOW COST PRODUCER 5 Year Profitability Breakdown: 2015 2016 2017 2018 2019 Average Average AECO (CAD/GJ) 2.55 2.05 2.04 1.42 1.67 1.95 Average WTI (USD/bbl) 48.80 43.32 50.95 64.77 57.03 52.97 P&NG…
TRUE ASSET VALUE Infrastructure Assets(1) = 605 MM or 2.27/sh. 3,000 Pouce Coupe Gas Plant = 375 MM 100% WI Oil Batteries = 75 MM x 2 2,500 Sales & Gathering Lines = 30 MM Field Compression Hubs = 10 MM x 3 Non-Op Plant Ownership…
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 2.22 0.04 0.34 1.84 77,700 GJ/d 20% 45% 1% 185,000 GJ/d Dawn 2.60 5,800 GJ/d 0.10 Alliance 1.22 34% 2.02 1.28 0.05 0.73 140,000 GJ/d 1.23 Note: All Birchcliff gas realizes a Henry…
RISK MANAGEMENT, HEDGING & DIVERSIFICATION(3) In 2020, approximately 80% of Birchcliffs natural gas production will effectively be sold at prices that are not based on AECO (based on 2020 production guidance of 78,000 - 80,000 BOE/d)…
OPEX/TRANSPORT COSTS VS GAS PRICING Opex down 26% Q1/20 vs Q3/17 T&M has increased due to increasing 9.00 access to new markets, realizing a 4.50 12% premium to AECO in Q1/20 8.00 4.00 7.00 3.50 6.00 3.00 Operating & T&M…
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 with maturity dates of May 11, 2022, which are comprised of an extendible revolving syndicated term credit…
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 413.2 sections prospective for the Montney/Doig as at…
STACKED RESOURCE PROVIDES SUBSTANTIAL FUTURE UPSIDE 413 (406.2 net) drilled, cased, and completed Montney/Doig horizontal wells as of Dec 31, 2019 May 13, 2020 31
MONTNEY/DOIG MULTI LAYER OPPORTUNITY May 13, 2020 32
BIRCHCLIFF MONTNEY/DOIG INVENTORY 2019YE Note: Location inventory includes three (3) 100% W.I. existing wells that have proved non-producing reserves. (2 in Pouce Coupe and 1 in Elmworth) May 13, 2020 33
FOCUSED ASSETS FOCUSED INFRASTRUCTURE POUCE COUPE GORDONDALE Key Natural Gas Processing Infrastructure Key Natural Gas Processing Infrastructure Pouce Coupe Natural Gas Plant AltaGas Gordondale Gas Plant 3-22-078-12W6 Sour Deep Cut Gas…
WATER STORAGE INFRASTRUCTURE Birchcliff has extensive water storage infrastructure in place to support its completion operations 1,170,000 m3 of water storage at 11 strategically located site 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 OF WELLS ONSTREAM: 2016 14 2017 37 2018 15 2019 17 Deloitte Tier 0 Type Curve Only 7 wells in 2019 with 11 or more months of production data May 13, 2020 37
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 OF WELLS ONSTREAM: 2016 14 2017 37 2018 15 2019 17 May 13, 2020 39
POUCE COUPE 2020 LIQUIDS TYPE CURVE 4000 3500 Sales Gas Rate (Mcf/d) 3000 2500 2000 1500 1000 500 0 0 20 40 60 80 100 120 Producing Time (Months) Tier 0 Production Summary Tier 0 Type Curve Inputs (1) Cond.…
SCIENCE & TECHNOLOGY PAD May 13, 2020 41
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 production decline High quality…
GORDONDALE BASE PRODUCTION HISTORY Birchcliff Scheduled Acquisition AltaGas Plant (22,000 BOE/d) Turnaround Last well drilled in 2014 (on-stream 2015) with peak production of 35,000 boe/d AltaGas Deep Cut Plant on stream…
GORDONDALE 2020 D1 & D2 OIL TYPE CURVES D1 Tier 1 Type Curve D2 Tier 1 Type Curve 500 450 400 Oil Rate (bbl/d) 350 300 250 200 150 100 50 0 0 20 40 60 80 100 120 Producing Time (Months) *Assumptions: Fx 1.30…
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) 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 D2 results…
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 GEOLOGICAL, GEOPHYSICAL, GEOMECHANCAL HYDRAULIC FRAC & MICRO SEIS. RESERVOIR MODEL OPTIMIZED DCC & PRODUCTION BASAL…
ENGINEERED COMPLETIONS FOR MONTNEY/DOIG FULL FIELD DEVELOPMENT Industry Range Birchcliff Best Practices Oil Birchcliff Best Practices Gas Liner type Openhole or Cemented Cemented Cemented Inter-well spacing 100 400 m (300 1,200 ft)…
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 2015 2016 2017 2018 2019 Q1/2020 Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 163,641 168,444 193,417 250,011 263,108 239,236 Oil, condensate & NGLs (bbls) 1,287 960…
KEY STRATEGIC Corporate Operating Costs vs. % of Natural Gas Sales Volumes Processed at the PC Gas Plant 10.00 100% ADVANTAGES Corporate Operating Cost (/boe) Volum e Through PC Gas Plant 8.00 80% 6.00 60% 100%…
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 late…
BUILDING ON OUR PAST Over 15 Years of Success
Forecasted annual average production of Birchcliffs average daily production was 77,977 boe/d in 78,000-80,000 boe/d in 2019 compared to 2,793 boe/d in 2005, a compounded 2020 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 70% and 41% since /boe 10 8 2008 largely due to…
Re serves Grow th 1,200 4,800 Birchcliff has added significant low cost 1,000 4,000 reserves since commencing operations in 800 3,200 2005. On a per common share boe/1,000shares MMboe 600 2,400 basis, PDP, 1P and 2P…
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 generation Replace approximately 34 coal fired power plants in China…
ENOUGH RESOURCE TO FILL A 2.5 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, 2019 (gas only) at Dec 31, 2019 (gas only) 5.2 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…
2019 MONTNEY/DOIG RESOURCE ASSESSMENT (1) The volumes presented in the table above, other than cumulative production and reserves, have been presented on an unrisked basis, meaning that they have not been adjusted for the chance…
MONTNEY/DOIG WELL LOCATIONS Existing and Potential Future Drilling Locations by Interval at December 31, 2019 Average Proved Plus Probable Reserves plus Gross Number of 2P Net Number of 2P Cumulative 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%…
EXECUTIVE OFFICERS Mr. Tonken is the President, Chief Executive Officer and Chairman of the Board of Birchcliff. He has more than 36 years of A. Jeffery experience in the oil and natural gas industry and is one of the Corporations…
EXECUTIVE OFFICERS Mr. Carlsen is the Vice-President, Engineering of Birchcliff and is a Professional Engineer. He previously served as Asset Christopher A. Team Lead and Senior Exploitation Engineer with Birchcliff. Mr. Carlsen is a…
BOARD OF DIRECTORS A. Jeffery Tonken See Mr. Tonkens biography under Executive Officers. President, CEO and Chairman of the Board Mr. Surbey is a Director of Birchcliff and is a member of the Reserves Evaluation Committee. Mr.…
BOARD OF DIRECTORS Ms. Gerlach is a Director of Birchcliff and is a member of the Audit Committee, Compensation Committee, Nominating Debbie Committee and Reserves Evaluation Committee. Ms. Gerlach was a partner with Deloitte LLP for…
PRESENTATION OF OIL AND GAS RESERVES AND RESOURCES: Deloitte prepared the 2019 Consolidated Reserves Report, the 2018 Consolidated Reserves Report, the 2019 Deloitte Reserves Report and the 2018 Deloitte Reserves Report. McDaniel…
THANK YOU TEAM BIRCHCLIFF Jeffrey Akeroyd, Bradley Alexander, Karen Allen, Diana Almeida, Tracy Anderson, Camille Ashton, Gaetano Aurigemma, Angela Belbeck, Tyrus Bender, Riley Berge, Daniel Blattler, Calvin Bohdan, Angela Boire,…
Loading...
