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March 2015 Invetor Update – Long Run Exploration Ltd.

Long Run Exploration Ltd. · Mar 1, 2015 · 29 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. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 1
    INVESTOR UPDATE MARCH 2015 1
  2. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 2
    LONG RUN PROFILE Long Run Exploration is a Calgary-based intermediate oil Northern Gas and natural gas company 2,700 Boe/d focused on development and ALBERTA exploration in western Canada. Peace River Area BRITISH Montney…
  3. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 3
    CORPORATE STRATEGY Provide long-term value to shareholders Strengthen balance sheet Actively manage our property portfolio - Development, enhanced recovery and exploration Focus on operational efficiency and capital…
  4. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 4
    BUSINESS PLAN Key inputs to a sustainable business model Long-term focus Extensive drilling inventory 1,000 booked locations(1) Capital budget in line with Enhanced oil recovery funds flow from operations Initiated in both Peace…
  5. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 5
    PRODUCTION PROFILE Completed Deep Completed Crocotta Basin property 40,000 acquisition Energy Inc. acquisition (August 2014) (May 2014) 35,000 30,000 Production (Boe/d) 25,000 20,000 15,000 10,000 5,000 0 Q1…
  6. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 6
    2014 YEAR END RESERVES HIGHLIGHTS December 31, 2014 Reserves Volumes Long Run P+P Reserves: 170,645 MBoe PDP Probable 32% 39% Long Run P+P Reserves NPV (BT10%): PDNP & 1.64 billion PUD 28% Increased proved plus probable…
  7. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 7
    FOURTH QUARTER 2014 HIGHLIGHTS 36,502 Boe/d average production (49% oil and NGLs) 11,400 Boe/d from the Deep Basin acquisition properties 68.2 million in funds flow from operations 25.04/Boe average operating netback; 20.33/Boe…
  8. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 8
    2015 GUIDANCE Capital budget of 100 million 50 million planned for the first half of the year Based on average commodity price assumptions of WTI US52.50/Bbl, AECO 2.60/GJ and FX CDN/USD 0.80 for 2015 Average production is…
  9. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 9
    RISK MANAGEMENT 2015 Oil Hedges 2015 Natural Gas Hedges 100% 100 100% 3.60 80% 80% 75 3.40 CDN/GJ 60% 60% US/Bbl 50 40% 40% 3.20 25 20% 20% 0% 0 0% 3.00 Q1 Q2* Q3 Q4 Q1 Q2 Q3 Q4 % of Production Hedged Average Floor…
  10. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 10
    CAPITAL STRUCTURE Share Capital: Debt Structure 193.5 million common shares outstanding (at December 31, 2014) Credit Facilities(1): Long Runs lending facilities total 695 million Credit Proactive discussions with our bank…
  11. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 11
    2015 DEVELOPMENT PLAN 60 45 Capital Expenditures Millions Million Well Capital 60 30 Plant & Facilities 10 11 wells G&G, Land, HS&E 30 15 5 wells TOTAL 100 0 Deep Basin Peace River Redwater Cardium Property…
  12. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 12
    2015 DEVELOPMENT PLAN Property Overview Deep Basin Deep Basin Peace River Redwater Pine Creek Cardium Kakwa Cardium Montney Viking On-stream cost 3.0 3.4 2.1 1.2 (MM)(1) 12-month capital 17,200 12,800 20,000 34,300 efficiency…
  13. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 13
    OPERATIONAL UPDATE Deep Basin - First Cardium well of 2015 in Pine Creek completed in January. Initial rates over first 2 weeks averaged over 1,000 Boe/d. Pine Creek Two additional Cardium wells will be drilled and completed prior to…
  14. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 14
    DEEP BASIN CARDIUM Acquired the Deep Basin area through two strategic transactions in 2014 Intensifies Long Runs focus on the western Alberta Deep Basin trend Adds a key area for future development of liquids-rich Cardium…
  15. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 15
    DEEP BASIN CARDIUM Pine Creek/Edson Cardium horizontal light oil development 1,800m - 1,900m vertical depth Bluesky horizontal liquids-rich natural gas 13-09 LRE Battery/Compressor development Station 6,500 boe/d (100%) Pine Creek…
  16. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 16
    DEEP BASIN CARDIUM Kakwa/Wapiti Cardium horizontal liquids-rich natural gas 1,000m - 1,600m vertical depth Fourth quarter 2014 production of 3,600 Boe/d (30% oil and NGLs) NGL content of 40-50 Bbl/MMcf First five wells at Kakwa…
  17. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 17
    PEACE RIVER MONTNEY Normandville/Girouxville Montney horizontal oil development 950m vertical depth Fourth quarter 2014 production of 10,700 Boe/d (60% oil and NGLs) Normandville Medium gravity oil (28o API) Normandville Significant…
  18. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 18
    REDWATER VIKING 07-21 Redwater North Viking horizontal oil development Oil Battery 5,000 bbls/d 700m vertical depth 4.0 mmcf/d Redwater T58 Fourth quarter 2014 production of 05-17 Redwater North 4,500 Boe/d (88% oil and NGLs)…
  19. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 19
    NORTHERN GAS Boyer Bluesky natural gas 200m - 500m vertical depth Fourth quarter 2014 production of 2,700 Boe/d (100% natural gas) Shallow decline (8%/year) 690,000 net acres Current drilling density less than 1.5 wells per…
  20. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 20
    ENHANCED OIL RECOVERY (EOR) Waterflood Current Waterflood Pilots Major oil projects under Pilot Expansion of early stage waterflood Area Formation Comments Start Date Start Date Injectors Cost effective reserve additions May 1,…
  21. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 21
    ENHANCED OIL RECOVERY (EOR) Peace River Montney Property Good waterflood candidate for oil displacement and pressure support: Large oil in place reservoir Good rock permeability of 10 - 20 md Normandville EOR project at…
  22. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 22
    ENHANCED OIL RECOVERY Redwater Viking Property Good waterflood candidate for pressure support: Large oil in place reservoir Relatively uniform vertical and lateral rock properties Redwater Initial pilot EOR project encompasses…
  23. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 23
    SUPPLEMENTAL INFORMATION 23
  24. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 24
    2014 YEAR END RESERVES December 31, 2014 Reserves(1) Natural Oil NGLs Gas Total (MBbl) (MBbl) (MMcf) (MBoe) Proved Proved producing 15,164 7,799 194,693 55,412 Proved non-producing 304 818 19,975 4,451 Proved undeveloped…
  25. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 25
    2014 YEAR END RESERVES Reserves Pricing(2) 2014 2013 WTI Oil AECO Gas WTI Oil AECO Gas (US/Bbl) (CDN/Mcf) (US/Bbl) (CDN/Mcf) 2014 - - 95.72 4.01 2015 64.17 3.38 93.62 4.17 2016 76.67 3.83 92.25 4.35 2017 83.33 4.06 96.01 4.81 2018 -…
  26. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 26
    RISK MANAGEMENT Volume Pricing Costless Collars January 1, 2015 December 31, 2015 2,500 Bbl/d WTI US 95.00 - 97.50/ Bbl Financial hedges mitigate risk Fixed Price associated with commodity price January 1, 2015 April 30, 2015…
  27. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 27
    TAX POOLS Tax Pools Annual Deduction Millions Undepreciated Capital Cost (UCC) Up to approximately 25% 350 Canadian Oil & Gas Property Expense (COGPE) Up to 10% 460 Canadian Development Expense (CDE) Up to 30% 780 Canadian…
  28. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 28
    BANK SYNDICATE Bank of Nova Scotia National Bank of Canada The Toronto-Dominion Bank HSBC Bank Canada Wells Fargo Bank, N.A., Canadian Branch Canadian Imperial Bank of Commerce Alberta Treasury Branches Union Bank, Canada Branch…
  29. March 2015 Invetor Update – Long Run Exploration Ltd. – slide 29
    CORPORATE INFORMATION TSX:LRE Contacts Bill Andrew Chair & CEO (403) 261-6012 Dale Miller President & COO (403) 261-6012 Corine Bushfield Senior Vice President & CFO (403) 261-6012 Dale Orton Senior Vice President, Development…

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