Pure Play Montney Producer with a proven operating team, industry leading cost structure & clear visibility to a significant drilling inventory creates a solid foundation for multi-year growth Investor Presentation TSX, NYSE: AAV…
Advantage At a Glance Intermediate Canadian Montney Producer Listed on TSX and NYSE AAV TSX 52-week trading range (Cdn) 3.55 - 7.85 Shares Outstanding (basic) 169.1 million Current Production 135 mmcfe/d (22,500 boe/d) Market…
Industry Leading Pure Play Montney Producer Focused on Glacier Area Advantages Pure Play Montney holdings are concentrated in the Glacier, Alberta area. We are a highly focused Montney only producer with 25 current employees, Glacier…
Glacier Montney Development Then and Now EnCana EnCana Murphy Murphy Swan & Tupper at 4 to 7 wells/section density today. Potential for 20 wells/section at Glacier Very few horizontal wells drilled Advantage has…
Glacier Delineation Drilling Resulted in Pentastack Development Plan Five Development Intervals Containing 1,400 Future Locations Development based on four wells per section per layer Proven commercial well rates across Glacier…
Middle Montney Liquids Led to Acquisition of New Montney Lands in 2013 Phase VI drilling results confirm increasing liquids in east Glacier and extends liquids potential to new lands Technical work to date indicates thick Montney…
Going Forward Financial Strength to Support Montney Growth Plan Strengthened Balance Sheet 94 million gross proceeds from Longview share sale 17.5 million from sale of Questfire investments 85 million March 31, 2014 bank debt…
Industry Leading Cost Structure Contributes to Robust Economics Advantages full cycle margin between realized price and cash costs is among the top Montney producers. 2015 liquids production will further increase the realized…
Three Year Fully Funded Glacier Growth Plan Details: 100% Production per Share and 190% Cash Flow per Share Growth Development Plan (3) Phase VI Phase VII Phase VIII Phase IX Q213 to Q214 to Q215 to Q216 to Q114 Q115 Q116 Q117…
Three Year Development Plan Strong Growth Leads to Free Cash Flow Total debt/ forward cash flow decreases as cash flow grows significantly based on an average natural gas price of Cdn 3.75/GJ (2014-2017) The 12 month period post Q2…
Track Record of Improving Operating Performance Production Growth to 135 mmcfe/d & Operating Cost Reduction to 0.30/mcfe 475,000/frac 73% Reduction in cost per frac despite increasing stage average number of frac stages from 6 to…
Improving Upper & Lower Montney Well Performance with Slickwater (data updated to May 31, 2014) High rate wells are Recent Upper and Lower Montney wells completed with slickwater fracs are typically rate outperforming Phase VII Budget…
Exceptional Upper Montney Results Across Glacier Production from slickwater fracs exhibiting clean-up after test and shallower declines 21 mmcf/d initial production restricted to 10 mmcf/d 21 mmcf/d 11 mmcf/d record well 10…
Solid Lower Montney Results Across Glacier 12 mmcf/d Production from slickwater fracs initial exhibiting clean-up after test and production shallower declines 7 mmcf/d 10 mmcf/d 5 mmcf/d production for 3 months 43.7 mmcf/d…
Improving Liquids Rich Middle Montney Well Performance at Glacier (data updated to May 31, 2014) Production Rate vs Time New Phase VI 12-2 well started Middle Montney wells have production at restricted rate of sequentially…
Middle Montney: Results Confirm Liquid Trend and Improved Well Rates Liquid yields are higher in east Glacier and pervasive through entire land block 9.5 mmcf/d initial production 8 mmcf/d restricted to 6 26 bbl/mmcf 8 mmcf/d…
Proven Commerciality - Glacier Montney Well Economics(1) Dry Gas Liquids Rich Gas Upper and Lower Montney (2) Middle Montney Intervals (3) 10.9 million Rate of Return (%) 10.5 million 8.8 million 7.9 million 6.7…
Glacier Gas Plant (100% Owned) - Significant Expansion Potential 5 400 mmcf/d pipeline capacity to TCPL meter station in place Glacier Gas Plant Site & Proximity to Major Natural Gas & Liquids Pipelines & Rail Access…
Advantage Summary Growing Our Montney at Glacier Focused on our world class 16 Tcf TPIIP Glacier Montney property and development of its 4.2Tcfe contingent resources and 1.7 Tcfe 2P reserves(1) Additional 43.25 net sections of new…
Appendix Page 20
Glacier Located In the Heart of the Montney Resource Play Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Page…
Glacier Major Pipeline Access Page 22
2012 Core and Completion Studies Increased Resource and Improved Well Results Core study determined original density porosity logs have to be re-calibrated Re-calibration aligned log to actual IP30s on open hole core porosities…
Upper and Lower Montney Average Well Type Curve Improvement (data updated to May 31, 2014) Advantage has significantly improved well performance since 2008. Utilization of more frac stages and slickwater fracs have recently created…
Summary of Well Tests Referenced in Presentation Slides Final Gas Final Flow Normalized Estimated Test Rate Test Period Pressure Final Gas Test Rate (1) C3+ liquid yield Well Formation (mmcf/d) (hrs) (kpa) (mmcf/d) (bbls/mmcf) (2)…
Glacier Drilling Economics and 2P Recoveries per Interval ( millions unless otherwise indicated) Glacier Drilling Economics PVs 10% Discount(1) Dry Gas(3) Liquids Rich Gas(4) AECO C natural gas price (/mcf)(2) 3.00 4.00 5.00 3.00…
Glacier March 31, 2013 Contingent and Prospective Resource Assessment Advantage engaged our independent qualified reserves evaluator Sproule Associates Ltd. (Sproule) to update the resource analysis and provide a 2C evaluation (Sproule…
Glacier Contingent and Prospective Resource Assessment Low Best High UPIIP (AAV Working Interest, Sales) (3) Estimate Estimate Estimate Natural Gas Prospective Resources (Tcf) 0.342 0.556 0.776 Unrecoverable UPIIP (Tcf) 1.561…
Glacier Contingent and Prospective Resource Assessment 2C (Best Estimate) Contingent Resources Net Present Values Before Income Taxes Gross 2C Recoverable ( millions) Gross Number of Hz Resources per Location Interval Well…
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