POSITIONED FOR LONG TERM SUSTAINABILITY AND GROWTH June, 2014 TSX:SGY www.surgeenergy.ca
RECENT DEVELOPMENTS Q1/14 Drilling/Waterflood Results Better Than Expected: 100% drilling success in Q1/14; exit rate (pro-forma Longview) increased to 21,350 boed (84% oil) Large new pool discovery in the Upper Shaunavon 125 mm…
WHY OWN SURGE ENERGY Low risk, high quality, crude oil asset and opportunity base; 15 year RLI (with 2 years of FDC/cash flow); Very low all-in sustainability ratio (89%); NO DRIP Excellent replacement metrics/capital efficiencies…
SURGE ENERGY INC. Elite, operated, large OOIP crude oil reservoirs, with low recovery factors; over 1.9 Billion barrels of net OOIP under management - with current recovery factor of 8% Strong balance sheet; ongoing risk…
KEY VALUE DRIVERS (RISK ADJUSTED) 1. 3-5% organic annual per share growth in reserves, production and cash flow; and 2. 8.6% dividend yield; and 3. Debt reduction (i.e. due to low sustainability ratio) increases NAV; and 4.…
CURRENT GUIDANCE OPERATIONAL 2014E Exit Production (boe/d) 21,350 (84% Oil/NGLs) RLI 15 years based on 2014E exit production 2014E Capital Spending 136 million 2014E Wells Drilled 63/40.5 gross/net wells 1 2014 Decline 22% 2014…
EXCELLENT CAPITAL EFFICIENCIES / REPLACEMENT METRICS Areas/Formations Rates of Drill/ Mboe/well Core Area Locations Capital Efficiency Return Complete/ 180 day IP (on primary) (Gross / Net) % Equip Valhalla 14,300/boepd 130% 4.3MM…
SUMMARY OF QUALITY OIL RESERVOIRS LARGE OOIP(1) WITH LOW RECOVERY FACTORS OOIP (MMbbls) Drilling Locations Cum Oil Total Booked Independent Internally Estimated Ultimate Avg. WI (2) Core Area Formations Recovery Recovery Factor P+P…
ELITE WATERFLOOD RESERVOIRS LOW DECLINE Current Properties Under Full Commercial Waterflood Area Formation Start Date 2014 Decline Current RF Booked RF Expected RF Lloyd/ Silver 1996 18% 12.6% 35.7% 39.0% Cummings Wainwright Sparky…
WILLISTON BASIN SE Sask Midale, Macoun and Pinto Areas (Midale) Midale Macoun Pinto Surge Land 103 MMbbls of Net OOIP (35-37 degree API) Surge Fee Land Current recovery factor 10% of OOIP Surge Wells Rates of return…
WILLISTON BASIN SE Sask Ingoldsby & Rosebank Areas (Frobisher/Alida) Rosebank 242 MMbbls of Net OOIP (35-37 degree API) Current recovery factor 17.4% of OOIP Ingoldsby Rates of return 64% (1) 40 gross/31 net drilling locations…
WILLISTON BASIN Manson (Bakken/Three Forks) 65 MMbbls of Net OOIP (35 degree API) Current recovery factor 0.9% of OOIP Manson Rates of return 40% (1) 38 gross/34 net drilling locations remain at Manson(2) 2 injectors have…
SW SASKATCHEWAN Shaunavon (Lower and Upper) 350 MMbbls of Net OOIP in the Lower and Upper Shaunavon formations (medium gravity oil) Current recovery factor 1.3% Rates of return in excess of 78% (1) for the Upper Shaunavon 369…
SW SASKATCHEWAN Viking Plenty Operated; high working interests High netback 55/bbl Rates of return 44% (1) Dodsland 127 MMbbls of Net OOIP (37 degree API) in the Viking formation Current recovery factor 0.5% of OOIP 138…
SE ALBERTA Silver/Wainwright Area (Cretaceous Sands) Wainwright 360 MMbbls of Net OOIP (23-31 degree API oil) Multi-zone, medium gravity crude at shallow depths…
SE ALBERTA Nevis Area (Wabamun) 80 MMbbls of Net OOIP (23-31 degree API oil) Current recovery factor of 3.9% Low-decline, high ROR assets that provide stable cash flow base Continued positive oil response from expanded…
WESTERN ALBERTA Valhalla South / Wembley (Doig) 160 MMbbls of combined OOIP at Valhalla and Wembley Valhalla (40 degree API light oil) Rates of return of 130% (1) Current recovery factor 2.4% (2) 44 gross/37 net drilling…
WESTERN ALBERTA Nipisi (Slave Point) Analogue Slave Point Waterflood 115 MMbbls of combined OOIP (35-42 degree API) in the Slave Point Formation at Nipisi North and Nipisi South Current recovery factor 0.7% of OOIP Gift Rates of…
RISK MANAGEMENT/HEDGING STRATEGY The Company has an orderly, on-going, Oil Hedges risk management / hedging program 10,000 65% designed to lock in future cash flows to protect the Companys capex 9,000 51% 51% Oil Volume Currently…
PRO-FORMA RESERVE BOOKINGS Total 2P Total 2P FDC FDC / CF Company Reserves (MM) Ratio* (mmbbl) Surge 73.5 391.2 - SE Sask Asset (RPL) 6.1 25.2 - Longview 37.6 215.5 - Pro-forma 117.2 631.9 1.9* *Note: Assumes 2015E FFO of…
PRO-FORMA ESTIMATED TAX POOLS ESTIMATE TAX POOL (MM) Canadian Exploration Expense 25 Non-Capital Losses 182 Canadian Development Expense 452 Canadian Oil & Gas Property Expense 726 UCC 247 Share Issue Costs 15 Estimated…
SURGE POSITIONED FOR LONG TERM SUSTAINABILITY Low base decline 22%, high netbacks, excellent capital efficiencies Very low all-in sustainability ratio of 89%; NO DRIP Strong balance sheet; over 200 million of room on bank…
SURGE POSITIONED FOR GROWTH Focused, high quality, crude oil asset and opportunity base; core properties are 100% operated with working interests of 90% Elite, large OOIP crude oil reservoirs with low recovery factors; 15 year…
ANALYST COVERAGE Financial Institution Analyst Email Address AltaCorp. Capital TBD TBD BMO Capital Markets Jim Byrne jim.byrnebmo.com Cannaccord Genuity Anthony Petrucci apetruccicanaccordgenuity.com CIBC World Markets Inc. Jeremy…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bankers: Bank of Montreal JPMorgan Chase Bank, N.A. ATB Financial HSBC Bank Canada Auditor:…
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