TVE: TSX-V www.tamarackvalley.ca Resilient in Tough Times, Position for the Future February 2015 1
Circa 2010 Strategy and Culture Holds Up in Tough Times Key Points Out of Strategy Applicable Today Manage the balance sheet Ensure survival in low prices by pulling back capital and cutting costs Full cycle ROR decision making…
Key Points in this Presentation Deliver on your promises Tamarack achieved its 2014 exit rate with the addition of 11 net wells in Wilson Creek The newly acquired oil battery at Wilson Creek thru-put was 300 bbls/d in Sept/14, was…
2015 Budget Principles Realistic pricing in plan TVE will base 2015 plan on strip or lower pricing Rate of return capital deployment Only drill when an acceptable ROR is obtained through higher commodity prices and/or reduced…
2015 Realistic Budgets on Realistic Prices AECO - Gas /GJ Edmonton Par - Oil /bbl 5.50 90 5.00 80 4.50 70 4.00 60 3.50 3.00 50 2.50 40 2.00 30 1.50 TVE Plan Price TVE Plan Price GLJ Q1 2015 20 GLJ Q1 2015 1.00 Assumptions:…
Premier Oil Areas Repeatable, Sustainable, Scalable Viking Oil greater Redwater area Existing TVE Core Areas Play 4 Location confidential 40 net sections Q3/14 Production 1,230 boe/d 190 million barrels OOIP Inventory 186 locations…
Wilson Creek Drilling Plan and Infrastructure TVE land Tuck-in land Acquisition land Cardium rights TVE owns key infrastructure Alder Flats Acquisition land No Cardium rights in an infrastructure Existing Cardium producers Existing…
Wilson Creek is Out-performing Acquisition Expectations million 6000 Phase 2 Purchase price 168.5 Phase 1 5000 Base Phase 1 capex (14 wells Q4/14 & Q1/15) 42.0 Actuals Infrastructure value (20.0) 4000 (replacement value is over 80…
Wilson Creek Better Performance by Tamarack Oil Type Curve (Rate vs. Time) by Operator in Wilson Creek TVE Average Well 48,000 Industry avg. Month 24 Peers 31,831 bbls Average TVE Well Month 12 Average TVE Well 44,380 bbls…
Wilson Creek - Drilling & Completion TVE Advantage Drilling Cost Per Meter Completion Cost Per Stage 700 100 600 532 19% 33% 72 000s per stage 500 469 75 431 64 per meter 400 376 48 50 300 38 200 1.5 mile…
Key 6 Month Objectives and Look-back What we did in Objectives for What we said we would do Q4 2014 / Q1 2015 Q1 2015 / Q2 2015 Exit Q4/14 at 9,500 boe/d; average Exit Q4/14 at 9,700 boe/d for last 2 weeks Q1/15 9,500 boe/d+ of…
Why Buy Tamarack Resilient assets in low commodity price environment Preserves a solid balance sheet As commodity prices improve, TVE high quality inventory will be economic earlier than most inventory TVE implemented its plan to…
TVE Contact Information Tamarack Valley Energy 3100, 250 6th Avenue SW Calgary AB T2P 3Y7 Tel: 403.263.4440 www.tamarackvalley.ca infotamarackvalley.ca 13
Appendix 14
Current Hedges as at February 1, 2015 Term Hedge type Counterparty Volume Pricing October 1, 2014 to October 31, 2014 WTI fixed price Macquarie Bank 1,200 bbls/d Cdn 97.85/bbl November 1, 2014 to December 31, 2014 WTI fixed price…
The Tamarack Team Management Board of Directors Brian Schmidt, President & CEO Floyd Price, Chairman Current: CAPP Vice-Chair, IOGC Board Member Current Directorships: Cimarex Energy, Former: Spearpoint Energy (President), Source…
West Central Cardium Summary Accretive Wilson Creek acquisition adds top tier drilling inventory and key facility infrastructure 2014 Farm-in increased net Greater prospective Cardium sections by Pembina Area 900% (132 net…
Building Credibility - Six Month Review What we said we would do What we did in Objectives for Q214 / Q314 Q214 / Q3 14 Q4 2014 / Q1 2015 Produce 4,700 boe/d average for H1/14; Averaged 4,696 boe/d H1/14; will Exit Q4 /14 9,500…
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