C O R P O R AT E P R E S E N TAT I O N SEPTEMBER 2013
CONNACHER - FOCUSED ON IMPROVEMENT Connacher is moving forward Sequential improvement in all areas of our business over the last three quarters Achieving top level facilities operating performance Strong bitumen netbacks due to…
PRODUCING PROJECTS AND GROWTH 100% WORKING INTEREST 87,000 acres of oil sands leases in the Great Divide area Two oil sands plants, Pod One and Algar, 80 km southwest of McMurray 37 producing well pairs Close to…
TWO ESTABLISHED OPERATING FACILITIES POD ONE ALGAR Over 12 million bbl produced since 2007 Over 6 million bbl produced since 2010 Over 95% water recycle Over 95% water recycle 95% facilities reliability Pre-investment made for…
FACILITIES RELIABILITY MONTHLY STEAM INJECTED VERSUS CAPACITY 110% ALGAR POD ONE 105% Plant TA Plant TA 100% 95% Plant TA Plant TA 90% Plant TA 85% 80% Jun-08 Jun-09 Jun-10 Jun-11 Sep-08…
PRODUCTION 16,000 Production bbl/d 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2009 2010 2011 2012 Q2 2013 Algar Pod One 2013 Capital Plan will begin to positively impact production in Q1 2014 8
2013 CAPITAL PROJECTS 95 million 2013 capital plan to increase production and improve facilities reliability 27 million for facilities 68 million for production initiatives On track to be within budget and on schedule Algar Boiler…
PAD 102 IN-FILL WELLS IN-FILL WELLS EXISTING 102-1 PRODUCER All four in-fill wells currently being steamed and will be tested for production in Q3 10
POD ONE IN-FILL WELLS TYPE CURVE 500 450 Based on GLJ Pad 102 well pair without in-fills 400 December 2012 Pad 102 well pair with adjacent in-fill 350 reserve report updated for recent 300 performance Bbl/Day 250…
PAD 104 VERSUS PAD 101N GEOLOGY 101N Pad 104 Pad 101N 104 Continuous clean sand 1AA/01-17-082-12W4/00 100/06-21-082-12W4/00 12
PAD 104 VERSUS PAD 101 NORTH GEOLOGY Pad 104 is dominated by clean sand, high bitumen saturations and lacks the upper zone 101N dominated by thin shale streaks present in Pad 101N Pad 104 has constant thickness of high quality…
PAD 104 FACILITES AUGUST 2013 GROUP SEPARATOR INLET BUILDING WELL PAIR BUILDINGS PIPELINE TO PLANT Pad 104 steam start-up of four new wells expected late September Group infrastructure sized for 10 well pairs Each…
PAD 104 TYPE CURVE COMPARISONS Pad 104 is in a higher Production forecast for new Pad 104 quality section of the wells versus well pairs 101S 8,9 & 10 (analogues) 800 channel compared to ( bbls/day/well) 700 the analogue well…
203-1 SAGD+ PROCESS TRIAL PRODUCTION & SOR 700 7.0 600 6.0 500 5.0 Bbl/day SOR 400 4.0 300 3.0 Bitumen Production (bbl/d) Pump 200 Install 2.0 Forecast Production without SAGD+ 100 process (bbl/d) 1.0 SOR 0 0.0…
203-1* TRIAL RESULTS & EST. CASH FLOW 900 Bitumen Production (bbl/d) 800 800 Forecast Production without SAGD+ process (bbl/d) 600 700 Est Cum Cash Flow (including portion produced but 400 consumed as fuel) 600 Solvent injection…
DILUENT BLEND RATIO REDUCTION 30% Based on field estimates 25% 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Jul-Aug 2012 2012 2012 2012 2013 2013 2013 Reduction at Pod One in the second half of 2012 and at Algar in Q2 of 2013…
NORTH AMERICAN HEAVY OIL MARKETS North American heavy oil market demand is forecast to grow Connacher can access all major refining markets via rail to build a portfolio of customers Introduction of Great Divide blend to new…
MARKETING PORTFOLIO 1 Intra Alberta 2 Markets GD Dilbit 3 Trucking Production Terminal 1 Rail Refinery 1 Rail Loading Terminal 2 Rail Refinery 2 Great Divide Blend is a brand that is highly valued as feedstock…
INTRA-ALBERTA MARKETS June 2012 June 2013 Intra-Alberta delivery point Access to a portfolio of rail markets enables Connacher to optimize Alberta markets 21
DILBIT SALES BY RAIL Percentage and Volume of Total Dilbit Sales Transported by Rail Rail Percentage Rail Volume (bbls) 100% 1,200,000 90% 1,000,000 80% 70% 800,000 60% 50% 600,000 40% 400,000 30% 20% 200,000 10%…
POTENTIAL 2014-2015 PROJECTS FOCUSED ON SEQUENTIAL GROWTH IN PRODUCTION Plant Item Startup Comments SAGD+ process trial Pad Test SAGD+ process on high productivity wells at Pod One Q2 2014 104 Pod One Pad 101S in-fill wells (5) Q3…
PAD 104 ADDITIONAL WELL PAIRS Pad 104 Six new well pairs can be added to Pad 104 Approvals in place for all well pairs Surface facilities pre-built with first four wells Average projected peak productivity per well of 550 bbl/d…
ADDITIONAL POD ONE IN-FILL WELLS Nine new in-fill wells could be drilled at Pod One Based on current temperature readings these well are a low risk, low capital option to increase production and lower SOR Peak production rates…
ALGAR IN-FILL WELLS It is expected there will be sufficient heat developed between the existing well pairs to begin drilling in-fill wells in 2014 Seven in-fill wells are planned, with average peak rates of 220 barrels per day…
ALGAR NEW WELL PAIRS Sufficient reserves have been identified to support drilling three additional well pairs. Expected peak production rates of approximately 400 barrels per day per well. 27
GREAT DIVIDE EXPANSION PROJECT A future growth opportunity All government approvals in place Expanded Algar plant would have 24,000 bbl/d capacity First 12,000 bbl/d phase shown in red in the Approved Development Area…
LIQUIDITY OUTLOOK As at June 30, 2013 Connachers working capital surplus was 56 million Including 77 million of cash on hand No outstanding borrowings under the bank facility with the exception of 13 million that has been…
SUSTAINABILITY AND COMMUNITY Sustainability is key to our long term success Minimize land footprint Responsible water use Effective air management Supporting and monitoring wildlife Providing our people with the tools to…
CONNACHERS BUSINESS We are a focused in situ oil sands developer, producer, and marketer of bitumen High quality producing assets and great people Unique and valuable marketing capabilities Sustainable reduction in diluent…
PAD 104 SAGD PRODUCTION PHASES Circulation High Pressure Peak SAGD Production 90 days High Pressure Low Pressure SAGD Production Steam lift 12 to 18 months Low Pressure Gas lift 4 to 6 years Pumps 34
IN-FILL WELLS The un-steamed area between pairs is heated over time by conduction A new producer well is drilled in between existing pairs at the base of the reservoir The heated area Toblerone Bar is drained with cyclic…
SAGD+ PROCESS COMMERCIAL PROJECT PROCESS FLOW DESIGN 36
POD ONE MINI STEAM EXPANSION PRELIMINARY SCOPE AND DESIGN 500 tons per day of steam addition to allow 2 well pairs to come online earlier Will require additional boiler and evaporator, as well as debottlenecking some other…
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