Advantage Pure Play Montney Producer Listed on TSX & NYSE AAV Shares Outstanding (basic) 168.4 million Enterprise Value January 17, 2014 4.76/share 1.1 billion Glacier Production Growth Q3 2013 Production 111 mmcfe/d Q2 2014 Phase…
Glacier A World Class Asset De-risked, delineated resource that is ready to enter a manufacturing stage of development Montney Resource of 18.1 Tcfe TPIIP (1) (16.0 Tcf gas plus 337 MMbbl liquids) 2P Reserves 1.60 Tcfe 2C…
Operational Update Performance Exceeding Expectations Phase VI Capital program is on-track with 3 active drilling rigs 19 wells of the 22 well program have been drilled to date Drilling & Completions costs per well are tracking lower…
Upper Montney Phase VI Confirms Solid Well Performance Across Glacier 21.2 mmcf/d record well 9.8 mmcf/d No UM wells drilled Phase VI wells are proving up reserves in east Drilled and completed Glacier at above type…
New Completion Techniques Upper Montney 2x - 3x Production Improvement at Glacier (graphs updated to January 4, 2014) 14,000 Production Rate vs Time Raw Gas Production Rate (Mcf/d) New Glacier Upper 12,000 New 5-20 Phase VI well…
Lower Montney Phase VI Proves Up East Glacier Reserves 6.8 mmcf/d 10.6 mmcf/d 9.4 mmcf/d Phase VI wells proving up reserves on east side of Glacier Lower Montney results are improving with frac Drilled and completed design…
New Completion Techniques Lower Montney 3x Production Improvement at Glacier (graphs updated to January 4, 2014) Production Rate vs Time 16,000 Old Method Raw Gas Production Rate (Mcf/d) New Glacier Lower 14,000…
Middle Montney Increasing Liquid Trends in East Glacier Trend shows increasing liquid yields in east Glacier & up-dip Liquids are pervasive through entire Glacier land block 26 bbl/mmcf 8 bbl/mmcf 8.4mmcf/d 31 bbl/mmcf 26…
New Completion Techniques Middle Montney 3x Production Improvement at Glacier (graphs updated to January 4, 2014) 9,000 Production Rate vs Time Raw Gas Production Rate (Mcf/d) Glacier Middle Montney wells 8,000 Old Method…
Glacier Montney Well Economics(1) New completion 12.7 million techniques are supporting higher Rate of Return (%) type curves 10.9 million 10.5 million 8.8 million 7.9 million 6.7 million 4.6 million 4.9 million…
Glacier Five Interval Development (Pentastack) Montney formation at Glacier averages 290 meters thick over the land block Delineation has proven commercial rates both vertically and laterally across Glacier in all 5 Montney…
Glacier Middle Montney Liquids Extraction Options 1. Glacier gas plant (for 200 mmcf/d gas throughput) Cost to install shallow cut extraction 44 million Glacier 2 Glacier Alliance Pipeline 2. Alliance Aux Sable Pipeline system Gas…
New Montney Lands Prospective for Natural Gas Liquids Phase VI drilling results confirm increasing liquids in East Glacier & extends liquids potential to new lands Advantage acquired additional Montney acreage prospective for liquids…
New Montney Lands Type Logs Show Thick Formation & Multiple Layer Potential Glacier Type Log Valhalla Type Log Wembley Type Log Valhalla Upper Upper (No Upper Montney present) Potential Liquids Rich Layers Wembley…
Industry Leading Cost Structure 2012 metrics AAV Q3 2013 Op. cost improves to 0.29/mcfe Page 16
Glacier Reserves, Netbacks & Recycle Ratio(1) 46% increase since 2011 Dry Gas(2) Liquids Rich Gas(2) Netbacks & Recycle Ratios (/mcfe) (/mcfe) 2P Finding and Development Cost including FDC: 1 year 0.73 . 1.73 . 3 year…
Advantage Strong Financial & Hedging Position Bank Debt ( millions) 53% undrawn Bank debt September 30, 2013 140 credit facility Credit facility 300 Undrawn credit facility 160 Other Investments & Liabilities ( millions) Annual…
Advantage Summary Focused on world class Montney gas resource development at Glacier, Alberta 2P Reserves of 1.60 Tcfe 2C Contingent Resources of 4.2 Tcfe; of which 72% is contained in the liquids rich Middle Montney intervals…
Appendix Page 20
Glacier Reserve Assignments and Future Drilling Locations Future Drilling Locations Percentage of Future Drilling Locations 2P 2C Interval With Reserves Assigned Locations(1) Locations(2) Upper 1 74% 178 60 9% Significant…
Glacier Updated Contingent Resource Assessment(1) Contingent 2C Resource grew 2013 2C Contingent Resource grew to 4.2 Tcfe significantly in 2013 due to delineation and improved well performance in the liquids rich Middle Montney…
Montney Siltstone Supports High Reserve Recoveries Shale Silt Sand 84 gross (77 net) sections - Historic type curve based on 86 wells with an average of 11.5 fracs per well The Montney formation is a siltstone and sand…
2012 Core & Completion Studies Increased Resource & 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 evident…
Glacier Drilling Economics & 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 4.00…
Net Asset Value Calculation at March 31, 2013 Net Asset Value March 31, 2013(1) (millions) 2P Reserves (discounted 10%, pre tax) 1,749 Undeveloped land 21 Bank debt and working capital (174) Investments: Longview Oil Corp(2) 141…
Appendix A Glacier Contingent & 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 2C…
Appendix A Glacier Contingent & 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)…
Appendix A Glacier Contingent & 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…
Appendix B Advantage Corporate Reserve Summary Advantage engaged our independent qualified reserves evaluator (Sproule) to update the reserves analysis for the Company (the Sproule Report) as at March 31, 2013 in accordance with NI…
Appendix B Advantage Corporate Reserve Summary Net Asset Value using Sproule price and cost forecasts (Before Income Taxes) The following net asset value (NAV) table shows what is normally referred to as a produce-out NAV calculation…
Appendix B Advantage Corporate Reserve Summary Sproule Price Forecasts The present value of future net revenue at March 31, 2013 was based upon crude oil and natural gas pricing assumptions prepared by Sproule effective March 31, 2013.…
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