A COMPELLING VALUE PROPOSITION TSX: SGY AUGUST, 2020
REASONS TO OWN SURGE TSX: SGY Value based with a strong focus on conventional reservoirs Focus on high quality conventional, large OOIP(1), light/medium gravity crude oil reservoirs; A dominant position in the medium/light oil Sparky…
1H/2020 HIGHLIGHTS Disciplined, proactive, business strategy amid turbulent markets In 1H/2020 Surge Management acted decisively to preserve stakeholders capital by: Being the first public oil company in Canada to suspend its…
SIGNIFICANT HEDGE POSITION (1) Robust 2020 hedging program provides balance sheet protection WTI OIL HEDGES Strategic hedging program yielded realized gains of over C29 million during 1H 2020. Edmonton Light and WCS oil…
OPERATIONS FOCUSED IN 4 CORE AREAS Large OOIP pools in established conventional reservoir trends Greater Sawn: 93% Oil & NGLs Average Valhalla: 86% Oil & NGLs 65% Oil & NGLs Sparky: 93% Oil & NGLs Shaunavon: 100%…
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 Avg.…
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), decline rate, and profit to investment ratio…
SPARKY A DOMINANT POSITION Low PEs, year-round accessibility = a premier Canadian medium/light oil growth play The Sparky is a large, well established, prolific oil AB SK producing formation in Western Canada. Surge holds a dominant…
2019-2020 SPARKY DRILLING RESULTS Production results continue to outperform internal type curve expectations Wainwright Betty Lake Silver Macklin Lakeview Provost 43 horizontal Sparky wells drilled and on…
EYEHILL A CASE STUDY Increased production and cashflow by +380% in 4 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 formations Shaunavon produces 100% high operating netbacks, low decline oil. Upper Shaunavon net OOIP is estimated to be 200MMbbl. 65 net locations (35…
CORPORATE SUSTAINABILITY Surge is taking a proactive approach to Environmental, Social, and Governance initiatives Environmental Social Governance Surge abandoned 149 Surge employs a pro- Surge is committed to wells in 2019 which…
APPENDIX 15 FOOTNOTES INCLUDED IN THE BACK AS ENDNOTES
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. 2 2020 2,835 45.18 Qtr. 3 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 MSW Oil Differential Hedges Date Total Swap Collar Swaps…
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…
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(1) PDP TP TPP Reserve Value NPV10 BT (MM) 603 1,023 1,644 Undeveloped Land and Seismic (MM)(2) 131 131 131 Net…
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 financial measures in this presentation namely, net debt, and operating netback are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the…
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