Building A Premier Oil Company ENERCOMS THE OIL & GAS CONFERENCE 19 Corporate Presentation August 15, 2014
BECOMING A PREMIER OIL PRODUCER TSXV:SOG Shares Outstanding (million)1 361 1.0B in Asset Value(3) Share Price, Aug 1, 2014 0.44 2 3 1 Market Capitalization (million) 159 Enterprise Value (million) 234 British Columbia Alberta…
STICKING TO THE STRATEGY Investing in the right assets Extracting the highest volumes Realizing the best returns 5
MARLOWE AN ASSET LIKE NO OTHER 3 billion barrels of light OOIP in stacked zones* 100% working interest & infrastructure with replacement value 500+ million Muskeg & Keg River are key focus for growth Slave 115 ft Sulphur Muskeg…
MUSKEG DEVELOPMENT REPEATABLE, SCALABLE & PROFITABLE 12 horizontal wells drilled in the play 100+ prospective sections with 8 MM bbl of light OOIP per section* 400 development locations** 10 miles * SOG Internal Estimate **…
MUSKEG TYPE CURVE AND ECONOMICS 2014 Type Curve 1 North Muskeg West Muskeg Recent well results DCETMM2 3.7 4.0 outperforming initial IP30 (BOED) 215 400 type curves %Oil 90% 60% Year 1 Decline 65% 68% Reserves (MBOE) 3 3004 4504…
RESERVES GROWTH Proved + probable reserves up 26% in first half of 2014 20 16.0 15 12.7 Reserves (MMboe) 10 8.1 5.2 5 4.7 0 January 2011 January 2012 January 2013 January 2014 June 2014 10
GAINING EFFICIENCY AND GROWING RETURNS Average Well Cost Declined 20% Average ROR Increased 33% 5.0 90% 5.0 80% 4.8 79% Drilling and Completion Cost (MM) 70% 4.6 60% 4.4 50% ROR 4.2 46% 40% 4.0 4.0 30% 3.8…
MARLOWE OPERATING NETBACK IMPROVEMENT Incremental barrel of production from Marlowe has over 100.00 60/boe netback 90.00 Netback: +60% 80.00 Netback Increase 27.99 70.00 CDN /BOE 41.00 60.00 43.00 45.00 50.00 21.56…
MAKE A STRATEGIC INVESTMENT 2H 2014 2015+ Improve well performance Drill up to 20 Muskeg Wells Reduce well costs Test 3 Keg River Structures Exit 2014 at 4600 BOE/day Repeatable Scalable Profitable Significant light oil…
CORPORATE INFORMATION MANAGEMENT TEAM RESERVE ENGINEERS McDaniel & Associates Consultants Ltd. Gurpreet Sawhney, MSc, MBA, PEng President & CEO AUDITORS Deloitte LLP Cody Smith COO LEGAL Norton Rose Fulbright Canada LLP Aaron…
Risk Management Contracts Term Volume (bbl/d) Average Price (/bbl) WTI NYMEX swaps January December 2014 1,500 CAD92.00 January June 2015 750 CAD90.15 Edmonton differential swaps August December 2014 1,000 CAD9.25 AECO natural gas…