Through the dedication and efforts of our people, the Montney development at Glacier has become a highly efficient and growing business. We thank ALL of you. Annual General Meeting June 26, 2014 Page 1
Key Corporate Assets Then and Now 2009 Today 31,000 boe/d Total 29,000 boe/d non-Glacier Glacier 2,000 boe/d Glacier 22,500 boe/d (135 mmcfe/d) Delineation drilling results at Glacier in 2008 and 2009 proved significant…
Advantage Today An Industry Leading Pure Play Montney Producer Advantages Pure Play Montney holdings are concentrated in the Glacier, Alberta area. We are a highly focused Montney only producer with 25 current employees, Glacier 100%…
Total Debt and Cost Structure - Then and Now. 79% Reduction 73% Reduction in in Total Debt Cost Structure Page 4
Advantage Today Industry Leading Cost Structure Advantages full cycle margin between realized price and cash costs is among the top Montney producers. 2015 liquids production will further increase the realized price and…
Montney Then and Now Pre-2007 OGIP estimates Current increased from 600 TCF(1) to 4,274 Tcf (2) Hz wells increased from 68 to 3,474 wells Current Hz production 3.5 Bcf/day Well results to date have just begun to show the…
Montney Today One of the Top Resource Plays in North America Montney Siltstone Compared to Key N.A. Shale Gas plays: 700 times more permeability 4x more formation thickness Very low clay content Stable/higher long term well…
Glacier Montney Development Then and Now EnCana EnCana Murphy Murphy Swan & Tupper at 4 to 7 wells/section density today. Potential for 20 wells/section at Glacier EnCana initiated horizontal Advantage has drilled…
Glacier Today Pentastack Development Plan at Glacier Delineation Drilling Confirmed Five Development Intervals Containing 1,400 Future Locations Development based on four wells per section per layer Proven commercial well rates…
Middle Montney Results Led to Acquisition of New Montney Lands in 2013 Phase VI drilling results confirm increasing liquids in east Glacier and extends liquids potential to new lands Technical work to date indicates thick Montney…
Going Forward Our Three Year Growth Plan Three Year Fully Funded Development Plan Details: 100% Production per share Growth 190% Cash Flow per share Growth Production includes NGLs increasing 735 million Capital Expenditures…
Supported by A Track Record Of Operating Performance Production Growth to 135 mmcfe/d and Operating Cost Reduction to 0.30/mcfe 475,000/frac 73% Reduction in cost per frac despite stage increasing average number of frac stages…
Improving Upper and Lower Montney Well Performance at Glacier (data updated to May 31, 2014) Advantage has significantly improved well performance since 2008. Utilization of more frac stages and slickwater fracs have recently created…
Improving Liquids Rich Middle Montney Well Performance at Glacier (data updated to May 31, 2014) Production Rate vs Time New Phase VI 12-2 well started Middle Montney wells have production at restricted rate of 9.5 sequentially…
Proven Commerciality Glacier Montney Well Economics(1) Dry Gas Liquids Rich Gas Upper and Lower Montney (2) Middle Montney Intervals (3) 10.9 million Rate of Return (%) 10.5 million 8.8 million 7.9 million 6.7 million…
Glacier 100% Owned Gas Plant Significant Expansion Potential 5 400 mmcf/d pipeline capacity to TCPL meter station in place Glacier Gas Plant Site and Proximity to Major Natural Gas and Liquids Pipelines and Rail Access…
Glacier Center of the Universe for Advantage View of Glacier Plant Process Train approximately 650 feet long Sign on Control Room Door at Glacier Gas Plant Page 17
Advantage Summary Growing Our Montney at Glacier Focused on our world class 16 Tcf TPIIP Glacier Montney property and development of its 4.2Tcfe contingent resources and 1.7 Tcfe 2P reserves(1) Additional 43.25 net sections of new…
Appendix Page 19
Glacier Located In the Heart of the Montney Resource Play Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Page…
Glacier Major Pipeline Access Page 21
2012 Core and Completion Studies Increased Resource and Improved Well Results Core study determined original density porosity logs have to be re-calibrated Re-calibration aligned log to actual IP30s on open hole core porosities…
Recent Slickwater Fracd Wells Support Budget Type Curve (data updated to April 30, 2014) High rate wells are Recent Upper and Lower Montney wells completed with slickwater fracs are typically rate outperforming Phase VII Budget type…
Summary of Well Tests Referenced in Presentation Slides Final Gas Final Flow Normalized Estimated Test Rate Test Period Pressure Final Gas Test Rate (1) C3+ liquid yield Well Formation (mmcf/d) (hrs) (kpa) (mmcf/d) (bbls/mmcf) (2)…
Glacier Drilling Economics and 2P Recoveries per Interval ( millions unless otherwise indicated) Glacier Drilling Economics PVs 10% Discount(1) Dry Gas(3) Liquids Rich Gas(4) AECO C natural gas price (/mcf)(2) 3.00 4.00 5.00 3.00…
Glacier March 31, 2013 Contingent and Prospective Resource Assessment Advantage engaged our independent qualified reserves evaluator Sproule Associates Ltd. (Sproule) to update the resource analysis and provide a 2C evaluation (Sproule…
Glacier Contingent and Prospective Resource Assessment Low Best High UPIIP (AAV Working Interest, Sales) (3) Estimate Estimate Estimate Natural Gas Prospective Resources (Tcf) 0.342 0.556 0.776 Unrecoverable UPIIP (Tcf) 1.561…
Glacier Contingent and Prospective Resource Assessment 2C (Best Estimate) Contingent Resources Net Present Values Before Income Taxes Gross 2C Recoverable ( millions) Gross Number of Hz Resources per Location Interval Well…
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