February 11, 2015 Investor Presentation www.andersonenergy.ca
3 Why Invest in Anderson Focused Development on Cardium & Glauc Horizontal Wells in Central Alberta Focus is on growing light oil and condensate production - objective is to have production weighting exceed 50% oil, condensate &…
4 Why Invest in Anderson 2014 Exit Production 3,400 BOED (41% oil, condensate & NGL) 35 Million Non-Dilutive Financing Closed January 23, 2015 Improves liquidity by 33 million, net of expenses Continues rationalization of shallow…
5 Why Invest in Anderson Results for Nine Months Ended September 30, 2014 Funds from Operations 13.3 million Production 3,055 BOED (32% oil, condensate & NGL) Operating Netback 28.74/BOE Operating Expenses 13.33/BOE, Average…
6 Why Invest in Anderson 2013/2014 Winter Drilling Program Eight Cardium horizontal wells drilled in late 2013 & first half of 2014, with an average IP 30 of 511 BOED (53% oil, condensate & NGL) New Cardium Liquids-Rich Gas…
7 Why Invest in Anderson 2014/2015 Winter Program Average IP 30 for the seven Cardium wells completed to date has been 398 BOED (82% oil, condensate & NGL). Average oil, condensate & NGL IP 30 for 2014/2015 program was 327 BPD as…
8 Why Invest in Anderson Cardium Well Performance Average IP 30 for 15 Cardium well completions in the Willesden Green area since December 2012 has been 458 BOED (65% oil, condensate & NGL). Recent industry publications indicate…
9 Anderson Energy Snapshot Trading Equity Symbol TSX AXL-T Debentures AXL.DB AXL.DB.B Trading Volumes 2014 364,500 shares/d Management & Directors own Shares Outstanding 172.5 million basic approximately: 11% of the common…
10 2013/2014 Winter Drilling Program Results 2013/2014 Winter Drilling Program Eight wells drilled in Willesden Green field all completed with slick water frac technology. Average IP 30 of 511 BOED (53% oil, condensate & NGL).…
11 2013/2014 Winter Drilling Program Results Significant Cardium Liquids-Rich Gas Discovery Two horizontal wells drilled in Willesden Green with an average IP 30 of 854 BOED (32% oil, condensate and NGL). An industry publication…
12 2014/2015 Winter Drilling Program Results 2014/2015 Winter Drilling Program Average Cardium IP 30 for seven wells completed to date has been 398 BOED (82% oil, condensate & NGL). Average oil, condensate & NGL IP 30 for…
13 2014/2015 Winter Drilling Program Results 2014/2015 Winter Drilling Program (continued) Performance data for long-reach Cardium horizontal well, IP 30: 648 BOED (92% oil, condensate & NGL). An industry publication indicated this…
14 2014/2015 Winter Drilling Program Results 2014/2015 Winter Drilling Program (continued) In addition to the long-reach well, according to an industry publication, two of the Cardium oil wells were in the top 10 new Cardium oil…
15 Horizontal Well Technology Update In the recently completed drilling programs, the Company optimized the trajectory of the horizontal well through the Cardium formation to obtain better well performance. The Company continues…
16 Shallow Gas Optimization Update On January 23, 2015, the Company sold approximately 510 BOED of predominantly shallow gas from 78 wellbores. The Company is planning to market the sale of its remaining shallow gas properties.…
17 GLJ Interim Reserves Report Effective April 30, 2014 GLJ Petroleum Consultants (GLJ) completed a modified corporate look-ahead analysis effective April 30, 2014 (the GLJ Interim Report). See MD&A for the three months ended March…
18 GLJ Interim Reserves Report Effective April 30, 2014 GLJ recognizes 28% of Companys drilling inventory as reserves. Total Company NPV 10 P&P was 132.8 million. Management estimates a land value of 3.4 million for its 27,988 net…
19 Q3 2014 Results Funds from operations of 2.3 million in Q3 2014 and 13.3 million year to date. Production of 2,793 BOED (26% oil, condensate & NGL) in Q3 2014 and year to date production of 3,055 BOED (32% oil, condensate &…
20 Managing Our Risk Hedging Philosophy Hedge produced oil and natural gas volumes to protect capital program and reduce cash flow volatility Continue to evaluate the merits of further price management strategies as market…
21 Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium horizontal drilling 2014 Exit Production 3,400 BOED (41% oil, condensate & NGL) ALBERTA Q4 2013 production was 2,112 BOED (26%…
22 Operations Overview Targeting 50% of total production being oil, condensate and NGL with Cardium horizontal drilling 2015 Capital Program ALBERTA To be updated with mid March 2015 year end press release. In 2014, the Company…
23 Operations Overview Cardium horizontal drilling focused on the halo or T50 periphery of major Cardium fields The best wells are positioned in good quality rock T45 Away from potential pressure depletion and old waterfloods…
24 Operations Overview Evolution of Cardium Drilling & Completion Practices Impact on Costs and Productivity 7,500 500 Slickwater Fracs (22 wells) Feb-2012 to present 6,750 LEF Fracs (20 wells) 450 Aug-2011 to Jan-2012 456 BOED,…
25 Operations Overview Slickwater Frac Stimulation Carrier fluid is like soapy water with no gellant and hence the term slickwater. Both broad industry and Anderson specific data indicates slickwater fracs result in significant…
26 Operations Overview Light Oil Horizontal Locations February 11, 2015 Gross Net (1) Area Locations Locations Willesden Green Cardium 82 59.8 West Pembina/Buck Lake Cardium 26 7.8 Willesden Green Glauc 8 8.0 Belly River 2…
27 Summary Average IP 30 for first seven Cardium wells in 2014/2015 program is 398 BOED (82% oil, condensate & NGL). Long-Reach Cardium well IP 30 of 648 BOED (92% oil, condensate & NGL). An industry publication indicated this well…
28 Summary The Companys 2014 exit production was 3,400 BOED (41% oil, condensate & NGL). The Company has recently closed a non-dilutive financing which improved liquidity by an estimated 33 million. The Company has a business…
www.andersonenergy.ca Head Office Contact Information 1000, 555 4th Avenue SW Brian H. Dau Calgary, Alberta T2P 3E7 President & Chief Executive Officer Phone: (403) 262-6307 (403) 262-6307 infoandersonenergy.ca
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