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INVESTOR PRESENTATION – Surge Energy Inc

Surge Energy Inc · Sep 1, 2014 · 28 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. INVESTOR PRESENTATION – Surge Energy Inc – slide 1
    POSITIONED FOR LONG TERM SUSTAINABILITY AND GROWTH September, 2014 TSX:SGY www.surgeenergy.ca
  2. INVESTOR PRESENTATION – Surge Energy Inc – slide 2
    RECENT DEVELOPMENTS Continued success in the Upper Shaunavon 2 new step-out wells drilled in Q2: each currently producing 325 bopd with low water cuts larger OOIP(1) than the 125 million net barrels originally estimated; 64…
  3. INVESTOR PRESENTATION – Surge Energy Inc – slide 3
    WHY OWN SURGE ENERGY Low risk, high quality, crude oil asset and opportunity base; 15 year RLI (with 2 years of FDC/cash flow); Very low all-in sustainability ratio…
  4. INVESTOR PRESENTATION – Surge Energy Inc – slide 4
    SURGE ENERGY INC. Elite, operated, large OOIP crude oil reservoirs, with low recovery factors; over 1.9 Billion barrels of net OOIP under management - with current recovery factor of 8% Strong balance sheet; ongoing risk…
  5. INVESTOR PRESENTATION – Surge Energy Inc – slide 5
    KEY VALUE DRIVERS (RISK ADJUSTED) 1. 4% organic annual per share growth in reserves, production and cash flow; and 2. 7.5% dividend yield(1); and 3. Debt reduction (i.e. due to low sustainability ratio) increases NAV; and…
  6. INVESTOR PRESENTATION – Surge Energy Inc – slide 6
    CURRENT GUIDANCE OPERATIONAL 2014E Exit Production (boe/d) 21,350 (84% Oil/NGLs) RLI 15 years based on 2014E exit production 2014E Capital Spending 142 million 2014E Wells Drilled 66/43.5 gross/net wells 1 2014 Decline 22% 2014…
  7. INVESTOR PRESENTATION – Surge Energy Inc – slide 7
    ELITE, FOCUSED ASSET BASE Surge 2014 Exit Production: Total: 21,350 (84% Oil & NGLs) Valhalla Nipisi Surge Core Sunset Properties Western Alberta Production: Total: 7,000 (67% Oil & NGLs) Westerose Wainwright Nevis…
  8. INVESTOR PRESENTATION – Surge Energy Inc – slide 8
    EXCELLENT CAPITAL EFFICIENCIES / REPLACEMENT METRICS Areas/Formations Rates of Drill/ Mboe/well Core Area Locations Capital Efficiency Return Complete/ 180 day IP (on primary) (Gross / Net) % Equip Valhalla 14,300/boepd 130% 4.3MM…
  9. INVESTOR PRESENTATION – Surge Energy Inc – slide 9
    SUMMARY OF QUALITY OIL RESERVOIRS LARGE OOIP(1) WITH LOW RECOVERY FACTORS OOIP (MMbbls) Drilling Locations Cum Oil Total Booked Independent Internally Estimated Ultimate Avg. WI (2) Core Area Formations Recovery Recovery Factor P+P…
  10. INVESTOR PRESENTATION – Surge Energy Inc – slide 10
    QUALITY WATERFLOODED RESERVOIRS LOW DECLINE Current Properties Under Full Commercial Waterflood Area Formation Start Date 2014 Decline Current RF Booked RF Expected RF Lloyd/ Silver 1996 18% 12.6% 35.7% 39.0% Cummings Wainwright…
  11. INVESTOR PRESENTATION – Surge Energy Inc – slide 11
    SW SASKATCHEWAN Shaunavon (Lower and Upper) 350 MMbbls of Net OOIP in the Lower and Upper Shaunavon formations (medium gravity oil) Current recovery factor 1.1% Rates of return in excess of 136% (1) for the Upper Shaunavon 369…
  12. INVESTOR PRESENTATION – Surge Energy Inc – slide 12
    Upper Shaunavon Regional R21W3 R19W3 R18W3 T10 Leitchville T8 Leon Lake Dollard T6 T4 SGY Lands Upper Shaunavon Wells
  13. INVESTOR PRESENTATION – Surge Energy Inc – slide 13
    Upper Shaunavon R20W3 R19W3 R18W3 OOIP 150+ mmbbl T7 (Upper Shaunavon B Sand only) 3D CPG Upper Shvn HZ Drill Outline 191/10-07-006-19W3 IP(90) = 218 BOPD Cum = 43.6 mbbl SGY Q1 Upper Shvn Hz Drill SGY Q2 Upper Shvn Drills…
  14. INVESTOR PRESENTATION – Surge Energy Inc – slide 14
    WILLISTON BASIN SE Sask Midale, Macoun and Pinto Areas (Midale) Midale Macoun Pinto Surge Land 211 MMbbls of Net OOIP (35-37 degree API) Surge Fee Land Current recovery factor 5% of OOIP Surge Wells Rates of return…
  15. INVESTOR PRESENTATION – Surge Energy Inc – slide 15
    WILLISTON BASIN SE Sask Ingoldsby & Rosebank Areas (Frobisher/Alida) Rosebank 159 MMbbls of Net OOIP (35-37 degree API) Current recovery factor 22% of OOIP Ingoldsby Rates of return 64% (1) 40 gross/31 net drilling locations…
  16. INVESTOR PRESENTATION – Surge Energy Inc – slide 16
    WILLISTON BASIN Manson (Bakken/Three Forks) 64 MMbbls of Net OOIP (35 degree API) Current recovery factor 1.2% of OOIP Manson Rates of return 40% (1) 38 gross/34 net drilling locations remain at Manson(2) 2 injectors have…
  17. INVESTOR PRESENTATION – Surge Energy Inc – slide 17
    SW SASKATCHEWAN Viking Plenty Operated; high working interests High netback 55/bbl Rates of return 44% (1) Dodsland 127 MMbbls of Net OOIP (37 degree API) in the Viking formation Current recovery factor 0.7% of OOIP 138…
  18. INVESTOR PRESENTATION – Surge Energy Inc – slide 18
    SE ALBERTA Silver/Wainwright Area (Cretaceous Sands) Wainwright 400 MMbbls of Net OOIP (23-31 degree API oil) Multi-zone, medium gravity crude at shallow depths…
  19. INVESTOR PRESENTATION – Surge Energy Inc – slide 19
    SE ALBERTA Nevis Area (Wabamun) 80 MMbbls of Net OOIP (23-31 degree API oil) Current recovery factor of 3.9% Low-decline, high ROR assets that provide stable cash flow base Continued positive oil response from expanded…
  20. INVESTOR PRESENTATION – Surge Energy Inc – slide 20
    WESTERN ALBERTA Valhalla South / Wembley (Doig) 130 MMbbls of Net combined OOIP at Valhalla and Valhalla Wembley (40 degree API light oil) Rates of return of 130% (1) Current recovery factor 2.5% (2) 44 gross/37 net drilling…
  21. INVESTOR PRESENTATION – Surge Energy Inc – slide 21
    WESTERN ALBERTA Nipisi (Slave Point) Analogue Slave Point Waterflood 149 MMbbls of Net combined OOIP (35-42 degree API) in the Slave Point and Gilwood Formations at Nipisi and Nipisi South Current recovery factor 3.1% of OOIP…
  22. INVESTOR PRESENTATION – Surge Energy Inc – slide 22
    RISK MANAGEMENT/HEDGING STRATEGY The Company has an orderly, on-going, Oil Hedges risk management / hedging program 10,000 65% designed to lock in future cash flows to protect the Companys capex 9,000 51% 51% Oil Volume Currently…
  23. INVESTOR PRESENTATION – Surge Energy Inc – slide 23
    PRO-FORMA RESERVE BOOKINGS Total 2P Total 2P FDC FDC / CF Company Reserves (MM) Ratio* (mmbbl) Surge 73.5 391.2 - SE Sask Asset (RPL) 6.1 25.2 - Longview 37.6 215.5 - Pro-forma 117.2 631.9 1.9* *Note: Assumes 2015E FFO of…
  24. INVESTOR PRESENTATION – Surge Energy Inc – slide 24
    PRO-FORMA ESTIMATED 2013 TAX POOLS ESTIMATE TAX POOL (MM) Canadian Exploration Expense 24 Non-Capital Losses 147 Canadian Development Expense 329 Canadian Oil & Gas Property Expense 829 UCC 250 Share Issue Costs 19…
  25. INVESTOR PRESENTATION – Surge Energy Inc – slide 25
    SURGE POSITIONED FOR LONG TERM SUSTAINABILITY Low base decline 22%, high netbacks, excellent capital efficiencies Very low all-in sustainability ratio…
  26. INVESTOR PRESENTATION – Surge Energy Inc – slide 26
    SURGE POSITIONED FOR GROWTH Focused, high quality, crude oil asset and opportunity base; core properties are 100% operated with working interests of 90% Elite, large OOIP crude oil reservoirs with low recovery factors; 15 year…
  27. INVESTOR PRESENTATION – Surge Energy Inc – slide 27
    ANALYST COVERAGE Financial Institution Analyst Email Address BMO Capital Markets Jim Byrne jim.byrnebmo.com Canaccord Genuity Anthony Petrucci apetruccicanaccordgenuity.com CIBC World Markets Inc. Jeremy Kaliel jeremy.kalielcibc.ca…
  28. INVESTOR PRESENTATION – Surge Energy Inc – slide 28
    CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bankers: Bank of Montreal JPMorgan Chase Bank, N.A. ATB Financial HSBC Bank Canada Auditor:…

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