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Corporate Presentation – Northern Blizzard Resources Inc

Northern Blizzard Resources Inc · Jul 31, 2014 · 37 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. Corporate Presentation – Northern Blizzard Resources Inc – slide 1
    Corporate Presentation July, 2014 -0-
  2. Corporate Presentation – Northern Blizzard Resources Inc – slide 2
    Advisory General A preliminary prospectus and amended and restated preliminary prospectus containing important information relating to the securities described in this presentation has been filed with the securities regulatory…
  3. Corporate Presentation – Northern Blizzard Resources Inc – slide 3
    Advisory Non-IFRS Measures In addition to using financial measures prescribed by IFRS, references are made in this presentation to operating income, operating netback, net debt, free cash flow and total payout ratio, which are measures…
  4. Corporate Presentation – Northern Blizzard Resources Inc – slide 4
    Advisory United States Matters This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any such offering will be made in the United States…
  5. Corporate Presentation – Northern Blizzard Resources Inc – slide 5
    Northern Blizzard at a Glance Overview(1) Public Float 26.3 million shares / 26% Management Shares(2) 6.9 million shares / 7% NGP / Riverstone Shares 68.6 million shares / 67% Common Shares Outstanding 101.8 million shares Offering…
  6. Corporate Presentation – Northern Blizzard Resources Inc – slide 6
    Executive Team and Board of Directors Executive Team Board of Directors Ian Bruce, Director John Rooney, Chairman, CEO & Co-Founder Former Co-Chairman, Peters & Co. Over 30 years of industry experience Director of Logan International,…
  7. Corporate Presentation – Northern Blizzard Resources Inc – slide 7
    Investment Highlights World-Class Oil Resource Base Approximately 1.9 billion bbl DOIIP(1) with less than 11% recovered to-date Low historic corporate decline rate of 17% Long reserve life index of approximately 22 years(2) Lower…
  8. Corporate Presentation – Northern Blizzard Resources Inc – slide 8
    Track Record of Reserves and Production Growth 2P Reserves Growth Production Growth 160 160.0 22,500 (3) 21,000 140.0 135 20,000 18,758 17,985 17,500 120.0 113 15,999 15,000 14,000 (2) 100.0 2P Reserves (MMboe)…
  9. Corporate Presentation – Northern Blizzard Resources Inc – slide 9
    Significant Cash Flow Growth Funds from Operations Growth(1) 400 (4) 353 350 300 (3) 275 Funds from Operations (MM) 250 210 200 172 169 150 100 50 47 0 2010 2011 2012 2013 2014E 2015E WCS Price (C/bbl)…
  10. Corporate Presentation – Northern Blizzard Resources Inc – slide 10
    Guidance Guidance 2014E 2015E WCS Pricing 84.00/bbl 80.00/bbl Funds from Operations per boe(1) 35.00 to 37.00/boe 38.00 to 39.00/boe Average Production 20,500 21,500 boe/d 24,500 25,500 boe/d - Oil-Weighting 94% oil 95% oil Funds…
  11. Corporate Presentation – Northern Blizzard Resources Inc – slide 11
    Balance Sheet and Ownership Pro Forma Capitalization(3)(4) Management team and Board of Directors clear Bank Facility (drawn) 35 million alignment with shareholders Senior Notes 305 million Management, Directors and employees will…
  12. Corporate Presentation – Northern Blizzard Resources Inc – slide 12
    Northern Blizzard 1. Unique High Quality Oil Assets 2. Well-Defined Growth Opportunities 3. Low Decline Rates 4. Pre-Built Infrastructure 5. Excellent Capital Efficiencies 6. Robust Economics 7. Significant Access to Markets 8. Strong…
  13. Corporate Presentation – Northern Blizzard Resources Inc – slide 13
    Unique High Quality Oil Assets Athabasca Oil Sands Large regional deposits of varying quality Very viscous: 1,000,000 cP range Non-mobile oil Cold Lake Oil Sands Viscosity of 100,000+ cP Non-mobile oil Extracted using thermal…
  14. Corporate Presentation – Northern Blizzard Resources Inc – slide 14
    Four Key Development Opportunities (Non-CHOPS) Q1 2014 Production 20,116 boe/d Continued focus on optimization of established Waterflood waterfloods 64% Continue to effectively downspace the waterdrive reservoirs CHOPS…
  15. Corporate Presentation – Northern Blizzard Resources Inc – slide 15
    Well-Defined Growth Opportunities Cactus Lake - 16 -
  16. Corporate Presentation – Northern Blizzard Resources Inc – slide 16
    Waterflood Development: Cactus Lake Section 35 Area downspaced in 2011 Production tripled to 900 bbl/d and subsequently declined at 35% due to inadequate pressure support Waterflood optimized with an additional 9 wells converted to…
  17. Corporate Presentation – Northern Blizzard Resources Inc – slide 17
    Cactus Lake Bakken Repeatable Development Mainly 40 acre spaced waterflood with little development prior to Northern Blizzard acquisition At time of purchase the field had a recovery factor of 18% and a shallow decline…
  18. Corporate Presentation – Northern Blizzard Resources Inc – slide 18
    Cactus Lake Bakken Development Cactus Lake Bakken polymerflood program is progressing as planned Downspaced the west half of the reservoir to 10 acre spacing Continuing to convert wells to injectors Injected 6.4 million bbl of…
  19. Corporate Presentation – Northern Blizzard Resources Inc – slide 19
    Cactus Lake Production, Operating Income and Capex Profile 2010 production: 2,803 boe/d Current production: 6,300 boe/d (125% growth) 33 million positive cash flow estimated for 2014 Cumulative positive cash flow since acquisition…
  20. Corporate Presentation – Northern Blizzard Resources Inc – slide 20
    Well-Defined Growth Opportunities Winter - 21 -
  21. Corporate Presentation – Northern Blizzard Resources Inc – slide 21
    Winter Horizontal Infill Development Development highlights: Drilled 138 gross horizontal wells distributed throughout the pool(1) Expanded facilities to handle in excess of 300,000 bbl/d gross water production 2014 Q4 gross water…
  22. Corporate Presentation – Northern Blizzard Resources Inc – slide 22
    Winter Production, Operating Income and Capex Profile Significant production growth through horizontal drilling and facility expansions Continued growth and positive free cash flow generation 2010 production at time of acquisition:…
  23. Corporate Presentation – Northern Blizzard Resources Inc – slide 23
    Well-Defined Growth Opportunities Viking Light Oil - 24 -
  24. Corporate Presentation – Northern Blizzard Resources Inc – slide 24
    Viking Light Oil Well Inventory Locations Viking light oil resource play assets located in Whiteside and Smiley areas of Saskatchewan 10,912 net acres (96% average WI) 2014 plan includes 20 horizontal wells 8 drilled Q1 and on…
  25. Corporate Presentation – Northern Blizzard Resources Inc – slide 25
    Well-Defined Growth Opportunities Plover Heavy Oil SAGD - 26 -
  26. Corporate Presentation – Northern Blizzard Resources Inc – slide 26
    Saskatchewan Heavy Oil SAGD Analog Projects(1)(2) Paradise Hills Husky Paradise Hills Pikes Peak South Husky Pikes Peak South (1) Project images and information table sourced from Husky corporate disclosure (as of September…
  27. Corporate Presentation – Northern Blizzard Resources Inc – slide 27
    Saskatchewan Heavy Oil Analog Projects(1)(2) Production/ Development Mannville Expected Timeline/ Thermal Production On Production Operator Project (bbl/d) Date Husky Pikes Peak 4,100 1984 Southern Senlac 2,000 1995 Pacific…
  28. Corporate Presentation – Northern Blizzard Resources Inc – slide 28
    Plover Heavy Oil SAGD Opportunity First steam in June 2014 Steam to wells targeted for Q3 2014 First oil targeted for Q4 2014 Production target of 2,400 bbl/d by end of 2014 - 29 -
  29. Corporate Presentation – Northern Blizzard Resources Inc – slide 29
    Heavy Oil SAGD Opportunities First SAGD project (Plover SAGD) in final stages of implementation Four additional SAGD projects in various stages of planning (Cactus & Pirtuk) Illustrative SAGD Project Parameters (Plover SAGD)…
  30. Corporate Presentation – Northern Blizzard Resources Inc – slide 30
    A Low Decline Asset Base Historical Oil Production 7% to 10% Growth Go Forward 11% Decline 11% Growth Northern Blizzard Operated Waterflood Limited Drilling Downspacing, Waterflood 40 Acre Spacing Development Limited…
  31. Corporate Presentation – Northern Blizzard Resources Inc – slide 31
    Pressure Maintenance Key to Low Declines Northern Blizzard Corporate Conversion Losses Northern Blizzard Corporate Effective Production Decline 17% decline All wells drilled to the end of 2012 17% Decline Production…
  32. Corporate Presentation – Northern Blizzard Resources Inc – slide 32
    Pre-Building Infrastructure Will Maximize Future Production Historical Infrastructure and Capitalized Water Handling Capacity Polymer Spending(1) 1,000,000 243 million 900,000 CHOPS(2) 800,000 11 million Excess Capacity…
  33. Corporate Presentation – Northern Blizzard Resources Inc – slide 33
    Excellent Capital Efficiencies Go forward capital efficiencies average approximately 30,000 - 35,000/boe/d (IP-365) Northern Blizzard has invested significant capital to support further growth Historical capital efficiencies include…
  34. Corporate Presentation – Northern Blizzard Resources Inc – slide 34
    Robust Economics Type Curve Economics Recent Wellhead Pricing(2) 160% Before-Tax Rate of Return (%) 120% 80% 40% 0% Wellhead Price 55.00/bbl 65.00/bbl 75.00/bbl 85.00/bbl Approx. WCS Price(1) 59.25/bbl 69.25/bbl…
  35. Corporate Presentation – Northern Blizzard Resources Inc – slide 35
    Significant Access to Markets 75% of Northern Blizzard production is pipeline Market Access Overview connected to Enbridge mainline at Kerrobert Northern Blizzard has ability to sell by pipe or by rail Rail advantages No diluent…
  36. Corporate Presentation – Northern Blizzard Resources Inc – slide 36
    Strong Free Cash Flow Illustrative Free Cash Flow WCS Pricing 80.00/bbl Annual Production(1) 25,000 boe/d Funds from Operations(1) 353 million Royalty Rate(1) 13% Opex(1) 19.25/boe Corporate Decline Rate 17% Annual Decline(2)…
  37. Corporate Presentation – Northern Blizzard Resources Inc – slide 37
    Investment Highlights Attractive total return delivered through low-risk development of Northern Blizzards world-class oil resource base Unique High Quality Oil Assets 1.9 billion bbl DOIIP(1) Well-Defined Growth Opportunities…

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