CORPORATE PRESENTATION September 2014 All amounts in Canadian dollars unless indicated otherwise
We have sharpened our Focus Growth Model based on Condensate-Rich Wapiti Montney 1. Focus of Growth in Wapiti - Montney 2. Strong Economics - condensate-rich natural gas 3. Early Development Phase - increasing well WAPITI data…
The Alberta Condensate-Rich Montney A sweet spot in a world class play 1. Scalable/Repeatable Deposition on the shelf edge - not isolated pockets Gas charged top to bottom Over-pressured low water saturation High Quality 2.…
The Alberta Condensate-rich Montney Surge in activity, new well data, new entrants Elmworth to Kakwa Montney HZ Activity Update* High and growing level of industry activity 500 Montney HZ wells licensed and/or T71 drilled to date…
North Elmworth Land Acquisition Strong addition to the family Announced August 2014 Recently Acquired 12.5 Gross (12.0 net) sections of Acquired Montney Rights for 35MM - 4,560/acre NVA Block Increases NVA Montney position to over…
2014 Business Plan Development, infrastructure, and delineation 1. Focus on Montney Development Drilling 70% of wells in condensate-rich Bilbo area Recent record-high results in Elmworth (North) and Bilbo (South) blocks Prudent…
NuVista Wapiti Montney Our activity and landholdings Increasing Activity NVA Producing Wells 20 wells on production (IP30) building NVA Vertical Cored Wells volumes in advance of South Block facility T 69 NVA In-Progress Wells ramp…
Bilbo Development Block All future locations no more than 1 mile from existing proven typecurve producers Liquids Typecurve 100* total locations in development area Bbls/MMcf Trend of improving liquids yields Condensate 8 5 Butane…
Montney Performance South Block (Bilbo) Condensate 75 Bbls/MMcf 1,800 12 Cumulative-to-Date Bbls/MMcf Continue to see Condensate 11 9 1,500 strong condensate 10 Butane yield 75 Bbls/MMcf Propane 87 2014 YTD June Field…
Elmworth Development Block All future locations no more than 1 mile from existing proven typecurve producers 100 Total locations identified within development area Liquids Typecurve Bbls/MMcf Typecurve increased from 4.4 Bcf to 6.0…
Montney Performance North Block (Elmworth) Condensate 45 Bbls/MMcf 4.4 bcf Type Curve 6 bcf Type Curve First 3 wells Last 4 wells 10,000 Cumulative-to-Date Bbls/MMcf 9,000 Condensate 11 Increased typecurve to Butane 9 8,000 6…
Montney D&C - Drilling Drilling time and cost reduction continues Steady Days versus Depth Steady progress reducing drilling times 0 progress reducing and drill cost per meter 1,000 Q1 2013 AND PRIOR 2013 WELLS drilling times,…
Montney D&C - Completions Focused on optimizing recovery NuVista's Completion Process Open-hole completion with ball-drop frac technology Large volume slickwater fracs Longer Laterals With More Frac Intervals Manage risks of greater…
Contingent Resource and Reserves Significant delineation of resource and conversion to reserves in 2014 Middle Montney 'C' Middle Montney 'B' *DPIIP: 106 sections 48% of current net acres *DPIIP: 140 sections - 64% of current net acres…
Resources & Reserves Rising Fast Independent Study Updated as of July 2014* Discovered Petroleum Initially-In-Place(1) Cumulative Production(2) 0.02 Tcfe Reserves (Proved Plus Probable)(2)(3) 0.81Tcfe Economic Contingent Resource…
2014 July Reserves Report Montney Transition in full-swing ..growth proven to be continuing 2014 Mid-year Reserves Report GLJ Petroleum Consultants Ltd. Montney DPIIP increased by 40% Montney 2P reserves volume increased by 57%…
Wapiti Montney Processing Capacity Firm Capacity and line-of-sight to long term growth Wapiti Montney Raw Gas Processing Capacity And Estimated Equivalent Montney Production 200 45,000 New Sour Gas Plant 180 40,000 Estimated…
Wapiti Montney Egress Access to midsteam facilities for short and medium term egress and still more options for the long term Loop pipeline to existing SemCAMS K3 gas plant, startup mid to late 2015 Further expansion to existing…
Driving down costs on all fronts Total Cash Costs (/Boe)* 17 16 15 14 General and Administrative (/Boe) 13 3.5 12 11 3.0 10 2.5 2013 2014E 2015E 2.0 Royalties (%) 12% 1.5 10% 1.0 2013 2014E 2015E 8% 6% 4%…
Line-of-Sight to Cash Flow Growth Increasing Production + Increasing Netback Production (MBoe/d) Corporate Netback (/Boe) 25 30 Base Pricing Upside Pricing 26.00 21.00 21.00 20 20 16.00 12.00 15 10 10 0 2013* 2014E 2015E…
NuVista: Looking Forward The corner has been turned Now we grow Focused, repeatable and profitable Costs falling, condensate rising, completions improving Two project development areas define certainty Long-term gas processing and…
APPENDIX September 2014 22
The Montney - A World Class Play EURs and investment growing, capital efficiency improving, and sub plays expanding Why is the Montney Getting Better 1. The Scale stretching from NE BC into AB, difficult to find an analogue commercial…
The Montney - A World Class Play Competitive with US plays and increasing activity Massive Thickness: Montney is akin to stacking four separate shale plays on top of one another All Montney Lithology and Fracability: Low clay content,…
Corporate Strategy Disciplined approach 1. Focused on Condensate-rich Wapiti Montney 500 Capital Expenditures 90% of 2014 capital expenditures in Wapiti 400 300 Million 2. Profitable Growth 200 Cash flow/share growth…
Commodity Price Risk Management WTI Oil we are well hedged Crude Oil Hedge Position 4,000 105.00 3,500 100.00 3,000 Hedged Volume, Bbl/d 2,500 Price, C/Bbl 95.00 2,000 90.00 1,500 Floor C WTI price of 95.61/Bbl…
Commodity Price Risk Management AECO natural gas hedging in good shape Natural Gas Hedge Position 100,000 4.50 90,000 4.00 80,000 3.50 Hedged Volume, GJ/d 70,000 3.00 Price, C/GJ 60,000 2.50 50,000 2.00 40,000…
Operating and Financial Results Understanding the financial power of the Montney Corporate Cash Flow Corporate Cash Flow Netback 35 31 25 30 19.26 20 25 23 22 Million 20 19 12.99 15 11.72 13.59 /Boe 15 11.42 15…
Condensate Pricing Strong demand and premium price for the long term Crude and Condensate Prices 130 Condensate is used in Alberta as a 120 110 diluent to ship heavy oil on pipelines Price, C/Bbl 100 90 Condensate in Alberta…
Advancing the Wapiti Montney Plan The track record to date 2011 2012 2013 2014YTD NVA Producing Horizontal Wells 1 5 16 21 (Cumulative) Rigs Drilling 0-1 1-2 2-3 3 Annual Production 281 1,265 4,650 6,255 (Boe/d) TP+PA…
Montney IP30's Increasing condensate volumes Well IP30* Cumulative to date (June 30, 2014) CGR Cumulative Raw Gas Condensate Total Sales CGR Bbl/MMcf Condensate Total Days on Prod. Bbls/MMcf Sales Gas (MMcf/d) (Bbls/d) (Boe/d)…
Focus on Wapiti Our lands contain the Montney with the bonus of significant Deep Basin uphole potential CARDIUM Acres 000's Nikanassin Dunvegan MONTNEY Cadomin Cardium Falher FAIRWAY DUNVEGAN CADOTTE…
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