2013 Results, Achievement of our 135 mmcfe/d Phase VI target ahead of schedule and Acceleration of our Phase VII Glacier drilling program sets a solid foundation for multiyear growth Investor Presentation January April 2013…
Advantage at a glance Pure Play Montney Producer Focused on Per Share Growth Listed on TSX and NYSE AAV TSX 52 week trading range ( Cdn) 3.06 - 5.62 Shares Outstanding (basic) 169.1 million Enterprise Value(1) C1.1billion Current…
Recent Achievements Strong Glacier 2013 Reserve Replacement Efficiencies (1) Replaced 840% of Glacier 2013 production 2P F&D cost : 2013 1.33/mcfe (7.99/boe) & 3 year 1.06/mcfe (6.36/boe) 2P Recycle ratio: 2013 2.1x & 3 year 2.7x 2P…
Advantage Pure Play Montney Producer Glacier 100% owned 77 net Glacier Gas sections Plant Valhalla Recently acquired 43.25 net sections of Montney Acreage Located in the heart of the Montney siltstone fairway (290 meter…
Industry Leading Cost Structure Creates Strong Margins Advantages full cycle margin between realized price and cash costs is among the top Montney producers. 2015 liquids production will further increase the realized price and…
Glacier 2013 Reserves 840% Production Replacement, 2.1x Recycle Ratio 580% 2P Reserves At Year-end 2013: growth since 2008 3 Year F&D 1.06/mcfe & Replaced 840% of 2013 Glacier production at a 3 Year Recycle Ratio 1.33/mcfe 2P F&D…
Proven Operating Cost and Production Performance at Glacier 135 mmcfe/d Phase VI production target achieved one month ahead of schedule Advantage grew Glacier production from 0 to 100 mmcfe/d during the first three years of…
Glacier Five Interval Development (Pentastack) Provides Significant Drilling Inventory Over 1,305 Locations Remain Undrilled Beyond 2017 - Post Development Plan 1,400 remaining drilling locations Five 50 meter intervals are…
Three Year Growth Plan Reinforced by Solid Financial Strategy Strengthened Balance Sheet 94 million gross proceeds from Longview share sale 64 million YE 2013 bank debt (1) Downside Natural Gas 3 Year Protection Total…
Three Year Glacier Development Plan Designed to Deliver 100% Production per Share and 190% Cash Flow per Share Growth Development Plan (3) Phase VI Phase VII Phase VIII Phase IX Q213 to Q214 to Q215 to Q216 to Q114 Q115 Q116 Q117…
Three Year Development Plan Strong Cash Flow Growth Total debt/ forward cash flow decreases as cash flow grows significantly based on an average natural gas price of Cdn 3.75/GJ (2014-2017) The 12 month period post Q2 2017 generates…
Glacier Well Netback and Recycle Ratio Supports Strong Drill Economics Liquids Rich Gas Netbacks and Recycle Ratios Dry Gas (/mcfe) (/mcfe) 2P F&D Average Undeveloped Location (1) 1.10__ . 1.57__ . Glacier Operating Netback (2):…
Glacier Montney Well Economics(1) Strong well economics driven Dry Gas by industry leading cost Liquids Rich Gas Upper and Lower Montney (2) structure and well performance Middle Montney Intervals (3) Phase VII Budget uses…
Exceptional Upper Montney Well Performance Across Glacier Production from slickwater fracs exhibiting 21 mmcf/d initial clean-up after test & shallower declines production restricted to 10 mmcf/d 21 mmcf/d 11 mmcf/d record well…
Recent Results Confirm Solid Lower Montney Results Across Glacier 12 mmcf/d Production from 7 mmcf/d initial slickwater fracs production exhibiting clean-up after 5 mmcf/d test and shallower 10 mmcf/d /d declines initial…
Recent Glacier Upper and Lower Montney Slickwater Wells Recent Upper and Lower Montney High rate wells are typically rate wells completed with slickwater restricted to avoid fracs are outperforming Phase VII sand erosion issues…
Middle Montney - Record 13 MMcf/d Well With Free Condensate Liquid yields are higher in east Glacier & pervasive through entire land block 9.5 mmcf/d initial production 8 mmcf/d restricted to 6 26 bbl/mmcf mmcf/d due to 8…
New Completion Techniques Middle Montney 3x Production Improvement at Glacier (graphs updated to March 23, 2014) Middle Montney wells have Production Rate vs Time consistently shown increasing productivity as we optimize New Phase VI…
New Montney Lands Prospective for Natural Gas Liquids(1) Phase VI drilling results confirm increasing liquids in east Glacier and extends liquids potential to new lands Technical work to date indicates thick Montney formation and…
New Montney Lands Type Logs Show Thick Formation & Multiple Layer Potential Glacier Type Log Valhalla Type Log Wembley Type Log Valhalla Upper Upper (Upper Missing) Glacier Liquids Rich Layers Wembley Glacier Liquids…
Approved Glacier Phase VII Budget and Guidance Approved Phase VII Budget & Guidance(1) 12 Months ending March 31, 2015 Average Production (mmcfe/d) 134 to 139 Royalty Rate (%) 5% to 6% Operating Costs (/mcfe) 0.25 to 0.30 Capital…
Glacier Phase VII Middle Montney Liquids Extraction Plans Shallow cut liquids extraction process to be installed in Q2 2015 at existing 100% owned Glacier gas plant Phase VII program targets initial 25 mmcf/d of liquids rich…
Advantage Summary Growing Our Montney at Glacier Focused on our world class 16 Tcf TPIIP Glacier Montney property and development of its 4.2Tcfe contingent resources & 1.7 Tcfe 2P reserves(1) Additional 43.25 net sections of new…
Appendix Page 25
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…
New Completion Techniques Upper Montney 2x - 3x Production Improvement at Glacier (graphs updated to March 23, 2014) Production Rate vs Time Recent Glacier Upper New 5-20 Phase VI well Montney wells show up to started production up…
New Completion Techniques Lower Montney 3x Production Improvement at Glacier (graphs updated to March 23, 2014) Production Rate vs Time Recent Glacier Lower New 10-31 & 15-31 Phase VI wells above Montney wells show up to Budget…
Summary of Well Tests Referenced in Presentation Slides Final Gas Test Test Final Flow Normalized Estimated Rate Period Pressure Final Gas Test Rate (1) C3+ liquid yield Well Formation (mmcf/d) (hrs) (kpa) (mmcf/d) (bbls/mmcf) (2)…
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…
Advantage Glacier Reserve Summary Advantage engaged our independent qualified reserves evaluator, Sproule Associates Ltd. (Sproule) ,to update the reserves analysis for the Company (the Sproule Report) as at December 31, 2013 in…
Advantage Glacier Reserve Summary (1)(2) Glacier Present Value of Future Net Revenue using Sproule price and cost forecasts (000) Before Income Taxes Discounted at 0% 10% 15% Proved Developed Producing 802,614 466,482 394,415…
Advantage Glacier Reserves Summary Page 34
Advantage Glacier Reserve Summary Page 35
Glacier Reserve Summary Sproule Price Forecasts The present value of future net revenue at December 31, 2013 was based upon crude oil and natural gas pricing assumptions prepared by Sproule effective December 31, 2013. These forecasts…
Appendix Glacier March 31, 2013 Contingent and Prospective Resource Assessment Advantage engaged our independent qualified reserves evaluator Sproule Associates Ltd. (Sproule) to update the resource analysis and provide a 2C…
Appendix Glacier Contingent and 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 Glacier Contingent and 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…
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