Growing Our Free Cash Flow Generating Assets Initial capital investment in light oil resource plays generates rapid near-term production and cash flow growth Maturing production base generates growing free cash flow Long life assets…
Organic Growth We invest capital in our resource plays to build a maturing production base and to generate growth 1,500 50,000 Capital Expenditures (Millions) 1,200 40,000 Production (boepd) 900 30,000 600 20,000 300…
Maturing Asset Base As our production matures, our base decline is decreasing Annual Corporate Decline Rate 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014(e) 2015(e) 6
2014 Capital Program In 2014, with lower base declines and improving capital efficiencies we plan to maintain production levels with reduced capital investment 1,500 50,000 Capital Expenditures (Millions) 1,200 40,000…
Balance Sheet Management Attenuating capital while Continued improvement in sustainability ratio targeting sustaining production 100% by 2015 Changing dividend Reduce cash payments and eliminate further equity dilution by…
Section II OUR ASSET BASE 9
Our Asset Base 2013(e) Business Unit Drilling Inventory 2013(e) Production Production (locations) (boepd) 46,000 boepd Southeast Saskatchewan 22,400 1,2001 Drilling Inventory Cardium 20,000 580 2,200 locations AB / BC 3,600…
SE Saskatchewan Assets We are maximizing the value of our assets by focusing on optimization and EOR Our assets have low decline, light-oil production from the Mississippian conventional and Bakken formations. Along with a moderate drill…
Continued Investment Optimization work has been completed on 310 wells to date Work includes millouts, cleanouts, high volume lifts, swab/bail and new compressor installs In 2014, 30 million will be spent on optimizations in…
Bakken EOR Project Locations LTS Land LTS Pipelines EOR Project Areas Sales Gas Pipelines Lightstream produced gas in Sales Oil Pipelines LTS Gas Plant LTS Operated Wells SE Saskatchewan is LTS Facilities gathered and processed at…
Early EOR Success in the Bakken Future value generation through natural gas flooding CREELMAN EOR PERFORMANCE We expect to recover 1,600 12 approximately 15% of the 11 DPIIP with primary recovery 1,400 10 methods; with EOR…
EOR Schemes Permeability vs. Porosity Cardium, Bakken, Swan Hills Continue our focus on Water Injection Candidates gas injection in the Bakken Pilot both gas and water Permeability injection in the Cardium Focus on…
Cardium Assets Now generating positive operating cash flow Our extensive land base stretches from Calgary to Edmonton and our assets primarily produce light oil from the Cardium formation. We are evolving our expertise to…
Swan Hills Assets Our next wedge of growth with great potential 2013(e) production of 1,700 boepd (over 90% liquids weighting) We have over 77 net undeveloped sections, with over 220 potential drilling locations We are evolving our…
Exploration Assets Our land position has multi-zone potential Monias 13 Sections Dunvegan 9 Sections Gething LTS Land 17 Sections LTS Facility Sales Gas Pipelines West Swan Hills Wilrich River LTS Operated Wells 78…
Well Economics We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Saskatchewan Type Well Bakken1 Cardium Swan Hills2 Conventional…
2014 Capital Program Capital spending in 2014 will be focused 65% on drilling, completions, equipping and tie-ins 2014(e) Capital Breakdown 2014 Planned Capital Activity Net Wells Capital (2014e) (millions) Facilities Optimization/…
Production Additions Average 2014(e) Production 45,000 to 47,000 BOEPD 50,000 40,000 Production (boepd) 30,000 2014 Estimated Base Decline: 26 29% 20,000 Mississipian Bakken Falher 10,000 Swan Hills Cardium 2014 Base…
Section III 2014 FINANCIAL ESTIMATES 25
2014(e) Financial Estimates Average Production (boe/d) 45,000 47,000 Exit Production (boe/d) 46,000 48,000 Liquids Weighting 80% Funds Flow(1) Funds Flow from Operations (000) 595,000 620,000 Funds Flow per share(2) 2.99 3.12…
Light Oil Differentials Differentials have been volatile but trending lower We do not expect current wide Q413 differentials to persist 125.00 20% 100.00 16% 75.00 12% WIT (CAD) Differential 50.00 8% 25.00 4% -…
Continuing to Generate Free Cash Flow In 2014 we expect to generate free positive operating cash flow in southeast Saskatchewan and the Cardium Operating Cash Flow* 300 200 100 Millions - (100) In addition, we received…
Continuing to Improve Sustainability Over time our operations have migrated towards sustainability as our cash flow and payout converge Maturing production attenuates the base decline rate and generates higher free operating cash…
Debt And Liquidity Term debt provides security, liquidity on the balance sheet provides flexibility Senior Secured Covenant Facility (0.2 billion of available liquidity) Debt Capital Composition Term Secured Term subject to…
Managing Our Debt To actively manage our balance sheet, we are proceeding with a number of short and long term initiatives. These include: Managing our capital program while maintaining production to improve our sustainability ratio…
Strength in Our Assets Extensive light-oil assets consisting of: Solid, maturing production Improving base declines Large inventory of sustaining drilling opportunities and growth prospects Our asset base also underpins our balance…
LTS: TSX Eighth Avenue Place 2800, 525 8th Avenue SW Calgary, Alberta T2P 1G1 (403) 268-7800 www.lightstreamresources.com 33
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