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Investor Update – Long Run Exploration Ltd.

Long Run Exploration Ltd. · Dec 31, 2014 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Update – Long Run Exploration Ltd. – slide 1
    INVESTOR UPDATE DECEMBER 2014 1
  2. Investor Update – Long Run Exploration Ltd. – slide 2
    LONG RUN PROFILE 38,250 Boe/d TSX: LRE Average October production (estimated) Listed on the Toronto Balanced between oil and natural gas Stock Exchange 0.42/share/year Dividend 0.035/share/month 193.5 million 13 years Common…
  3. Investor Update – Long Run Exploration Ltd. – slide 3
    CORPORATE STRATEGY Provide long-term value to shareholders through a sustainable dividend model Prioritize dividend protection Focus on operational efficiency and capital discipline Maintain balanced production mix and…
  4. Investor Update – Long Run Exploration Ltd. – slide 4
    BUSINESS PLAN Focus on strong capital efficiencies within portfolio of properties Improve recycle ratio through capital and operational cost control Proactive hedging program to mitigate commodity price downside risk Fund…
  5. Investor Update – Long Run Exploration Ltd. – slide 5
    LONG RUN KEY VALUE DRIVERS Diversified asset base within the Western Canadian Sedimentary Basin; balanced between oil and natural gas production Asset base well positioned to support sustainable dividend model without a dividend…
  6. Investor Update – Long Run Exploration Ltd. – slide 6
    KEY HIGHLIGHTS 2014 Successful dividend implementation in January 2014 and 5% dividend increase in June 2014 Issued 75 million in convertible debentures in January 2014 Acquired Deep Basin Cardium properties in May 2014 Acquired…
  7. Investor Update – Long Run Exploration Ltd. – slide 7
    ASSET BASE October 2014 Production (estimated) Peace River Area Montney oil 13,850 Boe/d Northern Gas (55% Oil & NGLs) (Bluesky) ALBERTA Edmonton Area Viking oil Peace River Area 8,200 Boe/d (Montney) (60% Oil & NGLs) Deep…
  8. Investor Update – Long Run Exploration Ltd. – slide 8
    PEACE RIVER Normandville & Girouxville Montney horizontal oil development 950m vertical depth October estimated production of 11,100 Normandville Boe/d (60% oil and NGLs) Medium gravity oil (28o API) Key infrastructure in place…
  9. Investor Update – Long Run Exploration Ltd. – slide 9
    DEEP BASIN Pine Creek/Edson Cardium horizontal light oil development 1,800m - 1,900m vertical depth Bluesky horizontal liquids-rich natural gas development Pine Creek 2,400m vertical depth October estimated production of 7,200…
  10. Investor Update – Long Run Exploration Ltd. – slide 10
    DEEP BASIN Kakwa/Wapiti Cardium horizontal liquids-rich natural gas 1,000m - 1,600m vertical depth October estimated production of 3,950 Boe/d (30% liquids) Liquids or NGL content of 40-50 Bbl/Mmcf Wapiti Kakwa LRE…
  11. Investor Update – Long Run Exploration Ltd. – slide 11
    EDMONTON AREA Redwater Viking horizontal oil development 700m vertical depth October estimated production of 4,700 Boe/d (85% liquids) Light oil (38o API) Key infrastructure in place Redwater EOR commenced Viking Shoreface…
  12. Investor Update – Long Run Exploration Ltd. – slide 12
    BOYER Bluesky natural gas 200m - 500m vertical depth October estimated production of 2,900 Boe/d (100% natural gas) Shallow decline (8%/year) 690,000 net acres Current drilling density less than 1.5 wells per section under…
  13. Investor Update – Long Run Exploration Ltd. – slide 13
    CORE AREA OVERVIEW Peace River Deep Basin Redwater Long Run Deep Basin Northern Gas (Normandville Pine (Redwater & Combined Kakwa/Wapiti (Boyer) & Girouxville) Creek/Edson Bruderheim) (incl. minors) October estimated 2,900 11,100…
  14. Investor Update – Long Run Exploration Ltd. – slide 14
    CORE AREA WELL PARAMETERS Peace River Deep Basin Deep Basin Redwater Montney Pine Creek Cardium Kakwa Cardium Viking 190 334 413 72 IP 30 (Boe/d) (63% liquids) (58% liquids) (20% liquids) (90% liquids) 105 175 265 35 IP 365…
  15. Investor Update – Long Run Exploration Ltd. – slide 15
    TYPE CURVES 250 Peace River Montney Type Curve 80 Redwater Viking Type Curve 200 60 Production (Boe/d) Production (Boe/d) 150 40 100 20 50 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3…
  16. Investor Update – Long Run Exploration Ltd. – slide 16
    ENHANCED OIL RECOVERY (EOR) Waterflood Major oil projects under waterfloods Current Waterflood Pilots Cost effective reserve Area Formation Pilot Start Date of Comments Injectors additions Increases recovery Proceeding with…
  17. Investor Update – Long Run Exploration Ltd. – slide 17
    CORPORATE GUIDANCE Original guidance impacted by unscheduled third party plant and facility restrictions 2014 Updated Guidance (at November 5, 2014)(1)(2) Anticipate ongoing restrictions Production average (Boe/d) 31,400 will…
  18. Investor Update – Long Run Exploration Ltd. – slide 18
    APPENDIX 18
  19. Investor Update – Long Run Exploration Ltd. – slide 19
    2014 FORECAST NET CAPITAL SPENDING 2014 Capital Expenditures million Development Capital 285 Net Acquisitions (Dispositions) (26) Net Capital Expenditures 259 Capital Expenditures by Area Peace River Capital Expenditures by Type 45…
  20. Investor Update – Long Run Exploration Ltd. – slide 20
    NETBACKS BY AREA Peace River Deep Basin Redwater Northern Montney Cardium Viking Gas Total October Estimated 13,850 11,150 8,200 2,900 38,250 Production (Boe/d) % Liquids 55% 30% 60% - 45% Oil Quality 28 API 42 API 38 API -…
  21. Investor Update – Long Run Exploration Ltd. – slide 21
    RISK MANAGEMENT Costless Collars Volume Pricing Financial hedges mitigate October 1, 2014 December 31, 2014 2,000 Bbl/day WTI US 88.00 - 92.50/Bbl October 1, 2014 December 31, 2014 2,000 Bbl/day WTI US 88.00 - 92.60/Bbl risk…
  22. Investor Update – Long Run Exploration Ltd. – slide 22
    A&D TRANSACTIONS ACQUISITIONS DIVESTITURES Total Total Cost Production Production Date Area Date Area Proceeds (MM) (Boe/d) (Boe/d) (MM) West Central March 2013 Cherhill 13.9 600 December 2012 175.9 1,900 Saskatchewan Peace,…
  23. Investor Update – Long Run Exploration Ltd. – slide 23
    PEACE RIVER MONTNEY Normandville/Girouxville Current development focus Normandville areas are Normandville and Normandville Oil Balery 5,000 bopd Girouxville Montney oil 15 mmcf/d IniFated water injecFon pilot in…
  24. Investor Update – Long Run Exploration Ltd. – slide 24
    DEEP BASIN CARDIUM Pine Creek/Edson Pine Creek Low risk oil development 13-09 LRE Balery/ Compressor StaJon upside at Pine Creek 6,500 boe/d 13-19 LRE MulJwell Oil Balery 1,200 bbl/d ExploraFon upside at north 10.5…
  25. Investor Update – Long Run Exploration Ltd. – slide 25
    REDWATER VIKING 07-21 Redwater North Oil Battery T59 Viking oil horizontal multi-frac 5,000 bbls/d 4.0 mmcf/d play 05-17 Redwater North Redwater Compressor Station 4.5 mmcf/d Control of infrastructure to T57 maximize operating…
  26. Investor Update – Long Run Exploration Ltd. – slide 26
    CHERHILL Emerging Play Primarily targeting Banff and Lower Mannville formations True vertical depth of 1,000 - 1,500 meters October estimated production of 1,000 Boe/d (45% oil and NGLs) primarily from the Banff Lower Mannville…
  27. Investor Update – Long Run Exploration Ltd. – slide 27
    TAX POOLS Tax Pools Maximum Annual Deduction Millions Capital Cost Allowance (UCC) Up to 25% 370 Canadian Oil & Gas Property Expense (COGPE) Up to 10% 440 Canadian Development Expense (CDE) Up to 30% 630 Canadian Exploration…
  28. Investor Update – Long Run Exploration Ltd. – slide 28
    RESERVES SUMMARY WORKING INTEREST RESERVES (12/31/2013) Oil Gas NGL Total NPV00 NPV10 NPV15 FDC MBbls MMcf MBbls MBoe M M M M LRE(1) PDP 12,997 130,593 2,310 37,073 923,929 691,192 620,982 - TP 24,676 207,633 3,411 62,692 1,394,530…
  29. Investor Update – Long Run Exploration Ltd. – slide 29
    RESEARCH COVERAGE INSTITUTION ANALYST BMO Capital Markets Jim Byrne Canaccord Genuity Anthony Petrucci CIBC World Markets Adam Gill Clarus Securities Inc. Robert Par Cormark Securities Amir Arif Dundee Capital Markets Chad…
  30. Investor Update – Long Run Exploration Ltd. – slide 30
    CORPORATE INFORMATION TSX:LRE Contacts Bill Andrew Chair & CEO (403) 261-6012 Dale Miller President (403) 261-6012 Corine Bushfield Vice President, Finance & CFO (403) 261-6012 Dale Orton Senior Vice President, Operations &…

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