A COMPELLING VALUE PROPOSITION TSX: SGY NOVEMBER, 2020
BDC / EDC CREDIT COMMITMENTS Significant liquidity to pursue economic development activities. Surge Energy Inc (Surge or the Company) has received lender approvals for a total of 90 million in new credit commitments, subject to final…
Q3 SUSTAINABILITY UPDATE Surge continues to focus on being an industry leader in addressing environmental liability Surge has submitted more than 1,700 applications under the Government of Albertas Site Rehabilitation Program (SRP).…
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; Surge controls a dominant position in the 11…
OPERATIONS FOCUSED IN 4 CORE AREAS Large OOIP pools in established conventional reservoir trends Greater Sawn: 93% Oil & NGLs Average Valhalla: 85% 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 on-stream costs, year-round access = a premier Canadian medium/light oil growth play The Sparky is a large, well established, oil producing AB SK formation in Western Canada. Surge holds a dominant…
2019/2020 SPARKY RESULTS VS BOOKED RESERVES Average Sparky results exceed the weighted average Sproule PUD by 47%, and Sproule P+PUD by 23% Max 17 Mo. CUM EUR Oil Production Rate IP(1) IP365 Actuals Actuals Individual Well Prod…
EYEHILL A SPARKY DEVELOPMENT 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)…
VALHALLA STACKED PAY MULTI-ZONE POTENTIAL Multiple large OOIP light oil reservoirs provide a sustainable drilling inventory and production base 200MMbbls of net combined OOIP. Doig and Montney turbidite wells among the most…
GREATER SAWN - CONCENTRATED LIGHT OIL 700 MMbbls net OOIP in concentrated Slave Point reservoirs Sawn Net OOIP of 700 MMbbls of light oil OOIP: 200 MMbbl net (35-42 API). Red Earth Development inventory of 150 net locations OOIP:…
SHAUNAVON 400 MMbbl net OOIP on Surge lands in the stacked Upper and Lower Shaunavon formations Shaunavon produces 100% low decline medium gravity crude oil with high operating netbacks. Upper Shaunavon net OOIP is estimated to be…
CORPORATE SUSTAINABILITY Surge is taking a proactive approach to Environmental, Social, and Governance initiatives Environmental Social Governance Surge has applied for and Surge employs a pro- Surge is committed to received in…
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 (1): WTI Crude Oil Derivative Contracts Swaps Three-way Collar Average Average Price…
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program. Below is a list of Surges current MSW & WTI differential hedges and Surges current AECO & Chicago natural gas hedges (1): WCS Oil…
INTEREST RATE AND FX HEDGING INTEREST RATE HEDGE Notional Amount Surge Surge Type Term Fixed Rate Surge Pays (CAD) Receives Pays Semi-Annual Step Up Fixed-to-Floating Rate Feb 2018 to Feb Floating Beginning at 1.786%…
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 ATB Financial Bank of Nova Scotia Bank of Montreal Bankers Syndicate: BDC Capital Canadian Imperial Bank of Commerce Goldman Sachs HSBC Bank Canada Toronto-Dominion Bank…
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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