A COMPELLING VALUE PROPOSITION TSX: SGY JANUARY, 2021
REASONS TO OWN SURGE TSX: SGY Value based with a strong focus on conventional reservoirs (1) Focus on high quality conventional, large OOIP , light/medium gravity crude oil reservoirs; Surge controls a dominant position in the 11…
2021 STRATEGIC FOCUS Top-tier production efficiencies allow for sustainable production growth, debt reduction and continued emphasis on ESG initiatives, all funded from within cash flow Disciplined Capital Allocation Focused drilling…
DISCIPLINED CAPITAL ALLOCATION Disciplined capital allocation provides operational flexibility in 2H/21 55 million budgeted for exploration and development capital in 2021, which targets the drilling of 32 gross (32.0 net) wells: 31…
2021 LIQUIDITY AND DEBT REDUCTION Free cash flow directed to net bank debt reduction Q1/21 weighted capital program maximizes 2H/21 free cash flow generation, maintaining financial and operational flexibility. Recently added…
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE Expected to abandon 25% of all inactive wells by Q1/21 Surge has submitted more than 1,700 applications under the Government of Albertas Site Rehabilitation Program (SRP) and received in excess of…
2021 OPERATING AND CAPITAL GUIDANCE Production & Cost Guidance 2021 Exit Production: 17,000 boepd (84% liquids) Q2/21 Production: 19,000 boepd (85% liquids) Average 2021 Production: 18,000 boepd (84% liquids) 2021e Net Operating…
OPERATIONS FOCUSED IN 4 CORE AREAS Large OOIP pools in established conventional reservoir trends Greater Sawn: 93% Oil & NGLs Average Valhalla: 84% 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 Oil Production Rate 17 Mo. CUM EUR IP(1) IP365 Individual Well Prod (41 Wells) Actuals…
EYEHILL A SPARKY DEVELOPMENT CASE STUDY Increased production and cash flow by +380% in 4 years YE 2015 Maintain Flat Production Surge Eyehill: 200MMbbls net OOIP 65 net locations remain (45 net booked) Source:…
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…
APPENDIX 17 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, WCS differential, and MSW differential hedges(1): WTI Crude Oil Derivative Contracts MSW Oil…
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program. Below is a list of Surges current AECO & Chicago natural gas hedges and interest rate hedges(1): Chicago & AECO Natural Gas Hedges…
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 BDC Capital Lending Syndicate: Canadian Imperial Bank of Commerce Export Development Canada Goldman Sachs HSBC Bank Canada…
NON-GAAP FINANCIAL MEASURES Certain secondary financial measures in this presentation namely, net bank debt, net operating expenses, and operating netback, are not prescribed by GAAP. These non-GAAP financial measures are included…
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