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February 2015 Investor Update – Long Run Exploration Ltd.

Long Run Exploration Ltd. · Feb 12, 2015 · 27 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. February 2015 Investor Update – Long Run Exploration Ltd. – slide 1
    INVESTOR UPDATE FEBRUARY 2015 1
  2. February 2015 Investor Update – Long Run Exploration Ltd. – slide 2
    LONG RUN PROFILE 1
  3. February 2015 Investor Update – Long Run Exploration Ltd. – slide 3
    CORPORATE STRATEGY Provide long-term value to shareholders through a sustainable business model Strengthen balance sheet Actively manage our balanced property portfolio Development, enhanced recovery and exploration Focus on…
  4. February 2015 Investor Update – Long Run Exploration Ltd. – slide 4
    DIVIDEND Long Run has decided to suspend our monthly dividend payment in response to the current lower commodity price environment Cash flow that had been targeted for dividends in the near term will be used to maintain as much…
  5. February 2015 Investor Update – Long Run Exploration Ltd. – slide 5
    BUSINESS PLAN Key inputs to a sustainable business model Long-term focus Extensive drilling inventory 1,000 booked locations(1) Capital budget fully Enhanced oil recovery funded from funds flow Initiated in both Peace River and…
  6. February 2015 Investor Update – Long Run Exploration Ltd. – slide 6
    PRODUCTION PROFILE Completed Deep Completed Crocotta Basin property 40,000 acquisition Energy Inc. acquisition (August 2014) 36,500 Boe/d (May 2014) 35,000 30,000 Production (Boe/d) 25,000 20,000 15,000 10,000…
  7. February 2015 Investor Update – Long Run Exploration Ltd. – slide 7
    2015 CAPITAL & PRODUCTION GUIDANCE 2015 capital budget of 100 million, with 50 million of development capital anticipated for the first half of the year Based on average commodity price assumptions of WTI US52.50/Bbl, AECO 2.60/GJ…
  8. February 2015 Investor Update – Long Run Exploration Ltd. – slide 8
    2015 DEVELOPMENT PLAN 60 45 Capital Expenditures Millions Million Well Capital 60 30 Plant & Facilities 10 11 wells 15 G&G, Land, HS&E 30 5 wells TOTAL 100 0 Peace River Deep Basin Redwater Montney Property…
  9. February 2015 Investor Update – Long Run Exploration Ltd. – slide 9
    2015 DEVELOPMENT PLAN Property Overview Peace River Deep Basin Deep Basin Redwater Montney Pine Creek Cardium Kakwa Cardium Viking On-stream cost 2.1 3.0 3.4 1.2 (MM)(1) 12-month capital 20,000 17,200 12,800 34,300 efficiency…
  10. February 2015 Investor Update – Long Run Exploration Ltd. – slide 10
    RISK MANAGEMENT 2015 Oil Hedges 2015 Natural Gas Hedges 60% 100 60% 4.00 50% 50% 3.80 90 40% 40% 3.60 /Bbl /GJ 30% 80 30% 3.40 20% 20% 70 10% 10% 3.20 0% 60 0% 3.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 % of Production Hedged…
  11. February 2015 Investor Update – Long Run Exploration Ltd. – slide 11
    CAPITAL STRUCTURE Share Capital: Debt Structure 193.5 million common shares outstanding (at September 30, 2014) Credit Facilities(1): Long Runs lending facilities total 695 million Credit Proactive discussions with our bank…
  12. February 2015 Investor Update – Long Run Exploration Ltd. – slide 12
    PEACE RIVER MONTNEY Normandville/Girouxville Montney horizontal oil development 950m vertical depth October 2014 estimated production of 11,100 Boe/d (60% oil and NGLs) Normandville Medium gravity oil (28o API) Normandville Oil…
  13. February 2015 Investor Update – Long Run Exploration Ltd. – slide 13
    DEEP BASIN CARDIUM Pine Creek/Edson Cardium horizontal light oil development 1,800m - 1,900m vertical depth 13-09 LRE Bluesky horizontal liquids-rich natural gas Battery/Compressor development Station 6,500 boe/d (100%) Pine Creek…
  14. February 2015 Investor Update – Long Run Exploration Ltd. – slide 14
    DEEP BASIN CARDIUM Kakwa/Wapiti Cardium horizontal liquids-rich natural gas 1,000m - 1,600m vertical depth October 2014 estimated production of 3,950 Boe/d (30% liquids) NGL content of 40-50 Bbl/MMcf First five wells at Kakwa have…
  15. February 2015 Investor Update – Long Run Exploration Ltd. – slide 15
    OPERATIONAL UPDATE Peace River Area First three horizontal wells of 2015 were drilled and completed at our Girouxville property by the end of January. Initial test results match our forecast expectations. EOR project at Normandville…
  16. February 2015 Investor Update – Long Run Exploration Ltd. – slide 16
    REDWATER VIKING 07-21 Redwater North Viking horizontal oil development Oil Battery 5,000 bbls/d 700m vertical depth 4.0 mmcf/d T58 October 2014 estimated production of Redwater 05-17 Redwater North 4,700 Boe/d (85% liquids)…
  17. February 2015 Investor Update – Long Run Exploration Ltd. – slide 17
    NORTHERN GAS Boyer Bluesky natural gas 200m - 500m vertical depth October 2014 estimated production of 2,900 Boe/d (100% natural gas) Shallow decline (8%/year) 690,000 net acres Current drilling density less than 1.5 wells per…
  18. February 2015 Investor Update – Long Run Exploration Ltd. – slide 18
    ENHANCED OIL RECOVERY (EOR) Waterflood Current Waterflood Pilots Major oil projects under early stage waterflood Pilot Expansion of Area Formation Comments Start Date Start Date Injectors Cost effective reserve additions This…
  19. February 2015 Investor Update – Long Run Exploration Ltd. – slide 19
    ENHANCED OIL RECOVERY (EOR) Peace River Montney Property Good waterflood candidate for oil displacement and pressure support: Normandville Large oil in place reservoir Good rock permeability of 10 - 20 md EOR project at…
  20. February 2015 Investor Update – Long Run Exploration Ltd. – slide 20
    ENHANCED OIL RECOVERY Redwater Viking Property Good waterflood candidate for pressure support: Large oil in place reservoir Relatively uniform vertical and lateral rock properties Initial pilot EOR project encompasses 0.5…
  21. February 2015 Investor Update – Long Run Exploration Ltd. – slide 21
    LONG RUN KEY VALUE DRIVERS Provide long-term value to shareholders through a sustainable business model Improve balance sheet strength through active management of our property portfolio, including asset rationalization…
  22. February 2015 Investor Update – Long Run Exploration Ltd. – slide 22
    SUPPLEMENTAL INFORMATION 22
  23. February 2015 Investor Update – Long Run Exploration Ltd. – slide 23
    RISK MANAGEMENT Costless Collars Volume Pricing Financial hedges mitigate risk January 1, 2015 December 31, 2015 2,500 Bbl/day WTI US 95.00 - 97.50/ Bbl associated with commodity price volatility Crude Oil Fixed Price Volume…
  24. February 2015 Investor Update – Long Run Exploration Ltd. – slide 24
    NETBACKS BY AREA Peace River Deep Basin Redwater Northern Area Area Area Gas Total October 2014 13,850 11,150 8,200 2,900 38,250 Estimated Production (Boe/d) % Liquids 55% 30% 60% - 45% Oil Quality 28 API 42 API 38 API - 32…
  25. February 2015 Investor Update – Long Run Exploration Ltd. – slide 25
    TAX POOLS Tax Pools Annual Deduction Millions Undepreciated Capital Cost (UCC) Up to approximately 25% 370 Canadian Oil & Gas Property Expense (COGPE) Up to 10% 440 Canadian Development Expense (CDE) Up to 30% 630 Canadian…
  26. February 2015 Investor Update – Long Run Exploration Ltd. – slide 26
    BANK SYNDICATE Bank of Nova Scotia National Bank of Canada The Toronto-Dominion Bank HSBC Bank Canada Wells Fargo Bank, N.A., Canadian Branch Canadian Imperial Bank of Commerce Alberta Treasury Branches Union Bank, Canada Branch…
  27. February 2015 Investor Update – Long Run Exploration Ltd. – slide 27
    CORPORATE INFORMATION TSX:LRE Contacts Bill Andrew Chair & CEO (403) 261-6012 Dale Miller President & COO (403) 261-6012 Corine Bushfield Senior Vice President & CFO (403) 261-6012 Dale Orton Senior Vice President, Development…

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