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INVESTOR UPDATE – Long Run Exploration Ltd.

Long Run Exploration Ltd. · Jun 23, 2014 · 39 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 JUNE 2014
  2. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 2
    LONG RUN PROFILE Lisng TSX:LRE Shares Outstanding 149 million Northern Gas ALBERTA Market Capitalizaon 850 million Liquidity Peace River Area 800,000 (shares/day; YTD) Q1 2014 Producon 25,613 Boe/d Deep Basin…
  3. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 3
    CORPORATE STRATEGY Provide long-term value to shareholders with sustainable yield plus growth model where capital expenditures and dividends are funded through funds ow from opera0ons Provide growth through controlled…
  4. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 4
    STRATEGY - OPERATIONS Focus on strong capital eciencies within porRolio of proper0es Improve recycle ra0o through capital and opera0onal cost control Build and expand infrastructure to maximize opera0ng eciencies and minimize…
  5. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 5
    STRATEGY - FINANCE Ensure corporate sustainability by funding dividends and capital spending through funds ow from opera0ons Execute nancial strategy without the aid of a dividend reinvestment program (DRIP) Target net debt…
  6. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 6
    RESULTS AND TRACK RECORD Strong Reserve Growth 120 Reserve Growth 1 0.89 0.9 Con0nuous strong reserve 100 growth 0.8 0.75 80 0.7 Increased proved plus 0.6 probable reserves (P+P) 17% 0.52 per share YoY…
  7. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 7
    RESULTS AND TRACK RECORD ProducCon & Funds Flow Growth Producon Growth Funds Flow Growth 30,000 Implemented 0.08 80,000 0.60 New Management Dividend 0.074 0.56 New Management Implemented Team Team Dividend 0.069 0.07…
  8. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 8
    WHY A DIVIDEND Assets Long Runs proven and predictable assets support a sustainable total payout ra0o People Highly experienced technical teams who are able to embrace new technologies, maximize resource recovery and take…
  9. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 9
    PEER COMPARABLES 2014e Yield 2014e Total Payout Ra0o(1) 2014e Debt/Funds Flow 2014e EV/DACF Source: NaConal Bank; based on strip pricing at 05/30/2014. Excludes CrocoNa acquisiCon assets. (1) Total Payout is net of DRIP…
  10. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 10
    RECENT ACTIVITIES 320 million in acquisi0ons & 32 million in dives0tures completed over the past 9 months which consolidated exis0ng core opera0ng areas and added an addi0onal core opera0ng area Successful dividend…
  11. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 11
    RECENT ACTIVITIES CrocoNa Energy Inc. AcquisiCon Announced acquisi0on of Crocona Energys strategic Edson Cardium & Bluesky assets on June 12, 2014 Key consolida0on property for the building out of our new Edson Pine Creek core…
  12. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 12
    ASSET BASE PEACE RIVER AREA Montney ght oil 13,000 Boe/d Northern Gas (Bluesky) (55%+ Oil & NGLs) ALBERTA EDMONTON AREA Peace River Area Basal Viking ght oil (Montney) 7,600 Boe/d (75% Oil & NGLs) Deep Basin…
  13. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 13
    ASSET BASE LOOKING FORWARD 2014 Upcoming Ac0vity Peace River Area 43 Montney wells planned for 2014 EOR ac0vity ini0ated in 2013 with expansion planned for 2014 Edmonton Area 43 Viking wells planned for 2014 EOR ac0vity…
  14. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 14
    PEACE RIVER Normandville & Girouxville Montney Plays ALBERTA Normandville T79 Montney 0ght oil development - 950m ver0cal well depth Substan0al produc0on growth in Normandville and Girouxville areas T77 -Sept 2011…
  15. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 15
    EDMONTON AREA Redwater Viking Play T59 Basal Viking 0ght oil development Redwater T58 - 700m ver0cal well depth Current produc0on 5,400 Boe/d (90% liquids) T57 Light oil (38o API) T56 Strong netbacks,…
  16. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 16
    DEEP BASIN - WAPITI Cardium Play ALBERTA T70 Elmworth T69 Cardium 0ght liquids-rich natural gas forma0on T68 - Moderate depths T67 (1,000m to 1,600m Wapi ver0cal well depth) T66 Current produc0on…
  17. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 17
    DEEP BASIN - PINE CREEK Cardium Play ALBERTA T56 Cardium 0ght oil development - 1,800m-1,900m ver0cal Pine Creek well depth T55 Light oil (41o API) Current produc0on of 750 Boe/d (20% liquids) Edson Strong…
  18. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 18
    CROCOTTA ENERGY INC. ACQUISITION Edson Cardium & Bluesky Assets Acquisi0on of Crocona Energy Inc.s ALBERTA strategic Edson Cardium and Bluesky T56 assets Consolida0on of recently acquired Edson Pine Creek core area…
  19. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 19
    BOYER Natural Gas ALBERTA T110 Bluesky natural gas Current produc0on 18.0 MMcf/d T108 Shallow decline gas (8%/year) 710,000 net acres T106 Current drilling density less than Boyer 1.5 wells per sec0on T104 70 MMcf/d…
  20. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 20
    CORE AREA OVERVIEW Peace River Redwater Deep Basin Deep Basin Northern Gas Long Run (Normandville & (Redwater & - Wapi - Pine Creek (Boyer) Total* Girouxville) Bruderheim) Current Produc0on (Boe/ 10,000 5,400 5,100 750…
  21. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 21
    CORE AREA WELL ECONOMICS Peace River Redwater Deep Basin Deep Basin Montney Viking Wapi Cardium Pine Creek Cardium 250 72 410 350 IP 30 (Boe/d) (65% liquids) (91% liquids) (20% liquids) (56% liquids) 140 36 265 184 IP 365…
  22. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 22
    REVISED CORPORATE GUIDANCE 2014 Post Deep 2014 Pre Deep Basin Basin Cardium Cardium Acquision 2014 Post Deep Acquision & Post & Pre Crocoma Basin Cardium Crocoma 2015 Post Guidance Acquisions Acquision(1) Acquision(2,4)…
  23. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 23
    TYPE CURVES 300 Long Run Montney Hz Oil Long Run Viking Hz Oil 80 250 73 Wells 70 Total Produc0on (Boe/d) 200 60 Total Produc0on (bbl/d) 50 150 50 Wells 40 100 26 Wells 30 15 Wells 20 50 10 0…
  24. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 24
    ENHANCED OIL RECOVERY (EOR) Waterood Cost eec0ve reserve addi0ons Current Waterood Pilots Increased recovery of Area Formaon Pilot Start Date Comments Lowers nding & Injectors development costs Proceeding with EOR…
  25. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 25
    LONG RUN KEY VALUE DRIVERS Diversied asset base within the Western Canadian Sedimentary Basin; balanced between oil and natural gas produc0on Asset base well posi0oned to support sustainable dividend model without dividend…
  26. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 26
    APPENDIX 26
  27. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 27
    2014 FORECAST NET CAPITAL SPENDING Pre Crocona Post Crocona Acquisi0on Acquisi0on* Capital Expenditures (MM) (MM) Well capital 150 170 Plants/ Facili0es/ EOR 50 50 Recomple0ons, G&G, Land, Abandonment 30 30 Capital…
  28. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 28
    Q1 2014 NETBACKS BY PLAY Peace River Redwater Northern Montney Viking Gas Total Producon (Boe/d) 10,637 6,101 2,732 16.4 25,613 MMcf/d % Liquids 62 80 0 56 Oil Quality 28 API 38 API - - 32 API Field Netback…
  29. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 29
    RISK MANAGEMENT Crude Oil Costless Collars Volume Pricing Financial hedges mi0gate January 1, 2014 June 30, 2014 1,000 Bbl/day WTI US 95.00 - 98.00/Bbl risk associated with January 1, 2014 December 31, 2014 2,000 Bbl/day WTI US…
  30. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 30
    RECENTLY COMPLETED A&D TRANSACTIONS ACQUISITIONS DIVESTITURES Total Total Cost Producon Producon Date Area Date Area Proceeds (MM) (Boe/d) (Boe/d) (MM) West Central February 2013 Peace Area 7.5 100 December 2012 175.9…
  31. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 31
    PEACE RIVER MONTNEY Normandville/Girouxville ALBERTA Current development focus areas Normandville T79 are Normandville and Girouxville Montney oil Normandville Oil Bamery Ini0ated water injec0on pilot in Q2, 5,000…
  32. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 32
    PEACE RIVER MONTNEY Have drilled 3 sec0ons at 8 wells per sec0on Historical Type Curve spacing with no interference 300 250 73 Wells Expanding water ood pilots during 2014. With success, full implementa0on will begin in…
  33. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 33
    REDWATER VIKING 07-21 Redwater North Oil Bamery T59 Viking oil horizontal mul0-frac play 5,000 bbls/d 4.0 mmcf/d Control of infrastructure to maximize opera0ng eciencies and 05-17 Redwater North Redwater T58 minimize…
  34. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 34
    REDWATER VIKING Historical Type Curve Development drilling at 16 wells per 80 sec0on for op0mal drainage 70 60 Implemented ini0al water injec0on Total Producon (bbl/d) 50 scheme in December 2013, expanding in 40 2014…
  35. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 35
    CHERHILL Emerging Play ALBERTA Primarily targe0ng Ban and Lower T60 Mannville forma0ons True ver0cal depth of 1,000 - 1,500 meters T59 T58 Current produc0on of approximately 1,500 Boe/d (40% liquids) primarily…
  36. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 36
    DEEP BASIN - WAPITI CARDIUM Horizontal Type Curve Economics Historical Type Curve Property acquired on May 30, 2014 500 400 Liquids-rich gas (40 bbl/mmcf) Total Produc0on (Boe/d) 300 90,000 net acres 200 82…
  37. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 37
    DEEP BASIN - PINE CREEK CARDIUM Horizontal Type Curve Economics Historical Type Curve Property acquired on May 30, 2014 500 28,000 net acres 14 booked loca0ons 400 Total Produc0on (Boe/d) 300 Average 77% working…
  38. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 38
    RESERVES SUMMARY Consensus Pricing RESERVES 12/31/2013 Oil Gas NGL Total NPV00 NPV10 NPV15 FDC MBbls MMcf MBbls Mboe M M M M LRE PDP 12,997 130,593 2,310 37,073 923,929 691,192 620,981 - TP 24,676 207,633 3,411 62,692…
  39. INVESTOR UPDATE – Long Run Exploration Ltd. – slide 39
    CORPORATE INFORMATION TSX:LRE Contacts Bill Andrew Chair & CEO (403) 261-6012 Dale Miller President (403) 261-6012 Corine Busheld Vice President, Finance & CFO (403) 261-6012 Jason Fleury Vice President, Business…

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