December 4, 2014 Presentation www.andersonenergy.ca
3 Why Invest in Anderson Focused Development on Cardium & Glauc Horizontal wells in Central Alberta Focus is on growing light oil and condensate production - objective is to have production weighting exceed 50% oil, condensate &…
4 Why Invest in Anderson Third Quarter 2014 Results Funds from Operations 2.3 million Production 2,793 BOED (26% oil, condensate & NGL) Operating Netback 22.58/BOE Operating Expenses 13.52/BOE, Average Royalty of 9.6% New…
5 Why Invest in Anderson 2014/2015 Winter Program 13 gross (10.2 net revenue) wells planned 6 gross (5.1 net revenue) drilled to date, of which 3 gross (3.0 net) wells have been completed to date and the remaining 2.1 net wells are…
6 Why Invest in Anderson December 4, 2014 Announcement The Company has signed agreements to reorganize its business, which will result in the disposition of predominantly shallow gas assets which produced 510 BOED (95% natural gas)…
7 Why Invest in Anderson December 4, 2014 Announcement Under the plan of arrangement, holders of common shares of the Company will exchange their shares for common shares of a new corporation, on a one for one basis, and the…
8 Why Invest in Anderson December 4, 2014 Announcement The Company will be mailing an information circular to its shareholders and others affected by the arrangement in late December 2014 or early January 2015. Completion of the…
9 Why Invest in Anderson December 4, 2014 Announcement Upon closing, the transaction will significantly improve the Companys liquidity to pursue its Cardium drilling inventory in Willesden Green, increase the Companys oil and NGL…
10 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes(1) 393,500 shares/d Management & Directors own (Past 12 months) approximately: Shares Outstanding(1) 172.5 million basic 11%…
11 2013/2014 Winter Drilling Program Results Eight wells drilled in Willesden Green field all completed with slick water frac technology. Average IP30 of 511 BOED (53% oil, condensate & NGL). The best performing well had an IP30…
12 2013/2014 Winter Drilling Program Results Significant Cardium Liquids-Rich Gas Discovery Two horizontal wells drilled in Willesden Green with an average IP 30 of 854 BOED (32% oil, condensate and NGL). Industry publications…
13 2014/2015 Winter Drilling Program 13 gross (11.3 net capital, 10.1 net revenue) wells scheduled to be drilled in Willesden Green field evaluating four different land blocks. All Cardium wells to be completed with slick water…
14 Horizontal Well Technology Update In the recently completed drilling programs, the Company optimized the trajectory of the horizontal well through the Cardium formation to obtain better well performance. The Company continues…
15 Shallow Gas Optimization Update All operated shut-in gas that could be returned to production was brought back on-stream in the first quarter of 2014 in response to higher natural gas prices. In the first quarter of 2014, the…
16 GLJ Interim Reserves Report Effective April 30, 2014 GLJ Petroleum Consultants (GLJ) completed a modified corporate look-ahead analysis effective April 30, 2014 (the GLJ Interim Report). See MD&A for the three months ended March…
17 GLJ Interim Reserves Report Effective April 30, 2014 GLJ recognizes 28% of Companys drilling inventory as reserves. Total Company NPV 10 P&P was 132.8 million. Management estimates a land value of 3.4 million for its 27,988 net…
18 Q3 2014 Results Funds from operations of 2.3 million in Q3 2014 and 13.3 million year to date. Production of 2,793 BOED (26% oil, condensate & NGL) in Q3 2014 and year to date production of 3,055 BOED (32% oil, condensate &…
19 Financing Our Growth Plan 2014 Capital Program Funded with Cash, Cash Flow and Bank Lines Bank Debt(1) nil drawn under bank lines 31 million in available bank lines. Convertible Debentures Series A: 50 million, 7.5% coupon,…
20 Managing Our Risk Hedging Philosophy Hedge produced oil and natural gas volumes to protect capital program and reduce cash flow volatility Continue to evaluate the merits of further price management strategies as market…
21 Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium & Glauc horizontal drilling 2014 Production Guidance 2014 estimate: 3,200 BOED (34% liquids) ALBERTA 2014 exit: 3,700 BOED (42%…
22 Operations Overview Cardium horizontal drilling focused on the halo or T50 periphery of major Cardium fields The best wells are positioned in good quality rock away from potential pressure T45 depletion and old…
23 Operations Overview Evolution of Cardium Drilling & Completion Practices Impact on Costs and Productivity 6,000 Slickwater Fracs Slickwater Fracs 600 (7 wells) (8 wells ) Feb-2012 to Q1-2013 Q4-2013 to Q2-2014 5,500 550 LEF…
24 Operations Overview Slickwater Frac Stimulation Carrier fluid is like soapy water with no gellant and hence the term slickwater. Both broad industry and Anderson specific data indicates slickwater fracs result in significant…
25 Operations Overview Light Oil Horizontal Locations November 12, 2014 Gross Net (1) Area Locations Locations Willesden Green Cardium 86 62.6 West Pembina/Buck Lake Cardium 26 7.8 Willesden Green Glauc 8 8.0 Belly River 2…
26 Summary Year to date 2014 results include 13.3 million in funds from operations, 3,055 BOED (32% oil, condensate & NGL) of production and an operating netback of 28.74/BOE. First well in 2014/2015 winter program has produced…
27 Summary The Companys 2014 production guidance estimate is 3,200 BOED (34% oil, condensate & NGL). Exit guidance estimate is 3,700 BOED (42% oil, condensate & NGL). The Companys drilling plan from Q3 2014 to Q1 2015: 13 gross…
www.andersonenergy.ca Head Office Contact Information 1000, 555 4th Avenue SW Brian H. Dau Calgary, Alberta T2P 3E7 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
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