CORPORATE PRESENTATION July 2014 All amounts in Canadian dollars unless indicated otherwise
NuVista Overview Focused profitable growth with long line-of-sight 1. Focus of Growth in Wapiti - condensate-rich Montney 2. Strong Economics - condensate-rich natural gas 3. Early Development Phase - increasing well data 4.…
The Alberta Condensate-Rich Montney A sweet spot in a world class play 1. Scalable/Repeatable Deposition on the shelf edge - not isolated pockets Gas charged top to bottom High Over-pressured low water saturation Quality Reservoir…
The Alberta Condensate-rich Montney Surge in activity, new well data, new entrants Elmworth to Kakwa Montney HZ Activity Update* High and growing level of industry activity 48 miles 200 industry wells on map sheet, and rising T71…
NuVista's Condensate-Rich Montney Tremendous potential for profitable growth and the growth has already begun 1. Scalable and Repeatable Play 113,000+ net acres (179 net sections) 577 locations in CR Study* and 121 locations…
2014 Business Plan Development, infrastructure, and delineation 1. Focus on Montney Development Drilling 70% of wells in condensate-rich Bilbo Area Evaluation of recent record-high results in Elmworth (North) and Bilbo (South) Block…
NuVista Wapiti Montney Our activity and landholdings Increasing Activity Elmworth 18 wells on production building Development T69 volumes in advance of South Block Block facility ramp up in Q3/Q4 Gold Creek 14 Additional Wells…
Bilbo Development Block All future locations no more than 1 mile from existing proven typecurve producers Liquids Typecurve 100* total locations in development area Bbls/MMcf Trend of improving liquids yields Condensate 8 5 Butane…
Montney Performance South Block (Bilbo) Condensate 75 Bbls/MMcf 2,000 10 Cumulative-to-Date Bbls/MMcf Condensate 12 10 Continue to see Butane 1,600 strong condensate 8 Propane 88 yield 75 Bbls/MMcf Q1 2014 Field Netback…
Elmworth Development Block All future locations no more than 1 mile from existing proven typecurve producers 100 Total locations identified within development area Liquids Typecurve Bbls/MMcf Typecurve increased from 4.4 Bcf to 6.0…
Montney Performance North Block (Elmworth) Condensate 45 Bbls/MMcf Cumulative-to-Date Bbls/MMcf 4.4 bcf Type Curve 6 bcf Type Curve First 3 wells Last 4 wells 10,000 Condensate 11 Increased typecurve to Butane 9 9,000 6 Bcf based…
Montney D&C - Drilling Drilling time and cost reduction continues Steady progress reducing drilling times 0 Days versus Depth Steady progress and drill cost per meter 1000 reducing drilling Q1 2013 AND PRIOR 2013 WELLS times,…
Montney D&C - Completions Focused on optimizing recovery NuVista's completion process Open-hole completion with ball-drop frac technology Large volume slickwater fracs Longer laterals with more frac intervals Manage risks of greater…
Wapiti Montney Processing Capacity Firm Capacity and line-of-sight to growth Wapiti Montney Raw Gas Processing Capacity And Estimated Equivalent Montney Production 200 45,000 New Sour Gas Plant 180 Newly added capacity 40,000…
Wapiti Montney Egress Access to short and medium term egress Loop pipeline to existing SemCAMS K3 gas plant and build Compressor Station, startup mid NuVista (50%) to late 2015 Compressor Station New NuVista (100%) Compressor…
Wapiti Montney Egress and still more options for the long term Further expansion to existing SemCAMS K3 gas plant NuVista (50%) Potential for new Wapiti gas plant in Compressor Station area New NuVista (100%) CNRL Gold Creek…
Operating and Financial Results Understanding the financial power of the Montney Corporate Cash Flow Corporate Cash Flow Netback 35 25 31 30 19.26 20 25 23 22 12.99 Million 20 19 15 11.72 13.59 /Boe 8.67 15 10 12…
Driving down costs Total Cash Costs (/Boe)* 17 16 15 14 General and Administrative (/Boe) 13 3.5 12 11 3.0 10 2.5 2013 2014E 2015E 2.0 Royalties (%) 12% 1.5 10% 1.0 2013 2014E 2015E 8% 6% 4% 2% 0%…
Line-of-Sight to Cash Flow Growth Increasing Production + Increasing Netback Production (MBoe/d) Corporate Netback (/Boe) 25 30 Base Pricing Upside Pricing 26.00 21.00 21.00 20 20 16.00 12.00 15 10 10 0 2013* 2014E 2015E…
NuVista: Looking Forward The corner has been turned Now we grow Focused, repeatable and profitable Costs falling, condensate rising, completions improving Two project development areas define certainty Long-term gas processing and…
APPENDIX July 2014 21
The Montney - A World Class Play EURs and investment growing, capital efficiency improving, and sub plays expanding Why is the Montney Getting Better 1. The Scale stretching from NE BC into AB, difficult to find an analogue commercial…
The Montney - A World Class Play Competitive with US plays and increasing activity Massive thickness: Montney is akin to stacking four separate shale plays on top of one another All Montney Lithology and fracability: Low clay content,…
Corporate Strategy Disciplined approach 1. Focused on Condensate-rich Wapiti Montney 500 Capital Expenditures 90% of 2014 capital expenditures in Wapiti 400 300 Million 2. Profitable Growth 200 Cash flow/share growth…
Commodity Price Risk Management WTI Oil we are well hedged Crude Oil Hedge Position 3,500 105.00 3,000 100.00 Hedged Volume, Bbl/d 2,500 Price, C/Bbl 95.00 2,000 1,500 90.00 Floor C WTI price of 94.85/Bbl on 60%…
Commodity Price Risk Management AECO natural gas hedging in good shape Natural Gas Hedge Position 100,000 4.50 90,000 4.00 80,000 3.50 Hedged Volume, GJ/d 70,000 3.00 Price, C/GJ 60,000 2.50 50,000 2.00 40,000…
Condensate Pricing Strong demand and premium price for the long term Crude and Condensate Prices Condensate is used in Alberta as a 130 120 110 diluent to ship heavy oil on pipelines Price, C/Bbl 100 90 Condensate in…
Advancing the Wapiti Montney Plan The track record to date 2011 2012 2013 NVA Producing Horizontal Wells 1 5 16 (Cumulative) Rigs Drilling 0-1 1-2 2-3 Annual Production 281 1,265 4,650 (Boe/d) 2P Reserves* 12 MMBoe 29 MMBoe…
Montney IP30's Increasing condensate volumes Well IP30* Cumulative to date** May 3, 2014 CGR Cumulative Raw Gas Condensate Total Sales CGR Bbl/MMcf Condensate Total Days on Prod. Bbls/MMcf Sales Gas (MMcf/d) (Bbls/d) (Boe/d)…
Contingent Resource / 2P Reserves Significant delineation of resource and conversion to reserves in 2013 Middle Montney 'C' Middle Montney 'B' CR: 85 sections 45% of current net acres - 263 Locations (Gross) CR: 101 sections - 54% of…
Resource Study Summary* Contingent Resources doubled Sept. 2012 to Sept. 2013 100 million Bbls recoverable condensate and counting Discovered Petroleum Initially-In-Place(1) See Appendix for Cumulative Production(2) 0.01 Tcfe…
2013 Reserves Report Montney begins to dominate and show scale it's only the beginning 2013 Year Reserves Report - GLJ Petroleum Consultants Ltd. Montney 2P reserves volume increased by 195% for recycle ratio of 2.3x Corporate 2P…
Focus on Wapiti Our lands contain the Montney with the bonus of significant Deep Basin uphole potential Acres 000's CARDIUM Nikanassin Dunvegan MONTNEY Cadomin Cardium Falher FAIRWAY DUNVEGAN CADOTTE…
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