Enercom 2012 Oil and Gas Conference August 13, 2012 The Game Plan Gordon J. Kerr, President and Chief Executive Officer
Corporate Strategy Own a portfolio of oil and gas resource plays in North America which includes: early stage assets that offer scope and scale as well as future option value producing assets with development opportunity Improve…
Corporate Profile Ticker Symbol (TSX & NYSE) ERF Enterprise Value (1) 4.0 billion Average Daily Trading Value (1H 2012) 54 million 2012E Average Daily Production 83,500 BOE/day 2012E Exit Production 88,000 BOE/day Oil and…
Our Assets Waterfloods: 2012E Production 14 properties by Play Type Montney IOR & EOR potential 33,000 net Low decline, cash acres generating assets 20% 18% 23% 9% 30% Stacked Mannville 70,000 2012E Production net acres…
Delivering Organic Production Growth 2012 Forecast: 90,000 Annual average daily production: 80,000 83,500 BOE/day 70,000 11% expected growth over 60,000 2011 AA BOE/day 50,000 Exit production: 40,000 88,000 BOE/day…
Financial Flexibility Debt/funds flow ratio at June 30, 2012 was 2.0x Issued 405 million of private placement Senior Notes US753MM & long term debt in May CAD70MM 7 to 12 year terms at 4.4% 1.0 billion bank credit facility…
Our Operational Focus in 2012 Execution at Fort Berthold Reduce cycle times on new wells Reduce downtime Continue to advance on our waterflood projects Advance EOR pilots at Giltedge & Med Hat Drilling/injector conversions to…
Hedging 2012 Crude Oil* 2013 Crude Oil* 63% at 96.17 63% of crude oil hedged at 50% at 50% of crude oil 50% 38% US96.17/bbl 101.36 hedged at US101.36 Hedged Spot Hedged Spot Q3 2012 2013 Natural Gas* Natural Gas*…
Fort Berthold Leads the Charge in Oil Growth Current Operated and Non-Operated Locations Key Facts Net Acreage (90% WI) 76,000 (119 sections) 2011 P+P Reserves 55.4 MMBOE 2011 Contingent Res. Est. 49 MMBOE Future Drilling Locations…
Delivering Organic Production Growth at Ft. Berthold Well results continue to meet our expectations Bakken long type well: 12,000 EUR: 905 MMBOE Oil 800 Mbbls 10,000 Gas 330 MMcf NGLs 50 Mbbls 8,000 30 Day IP: 1,240 bbls/day…
Fort Berthold Bakken Economics Bakken Long Laterals 9,500 ft. 20 - 24 frac stages, 12 MM/well* Type Curve EUR: 905 MBOE Oil 800 Mbbls Gas 330 MMcf NGLs 50 Mbbls IRR 48% Net Present Value (10%)* 11.5 million Payout Period 2.0…
Canadian Waterflood Assets Key Facts OOIP 1.6 billion barrels (net) P+P Reserves (YE 2011) 90 million barrels net (26% recovery) Recovery to date 21% Best Est. Contingent 56.3 million barrels Resources Average Oil Quality 30 API…
Stable Crude Oil Production Base from Waterfloods 25 Sold 2,800 non-core Low base decline of 12% BOE/day 20 50% of net operating income reinvested to MBOE/day 15 maintain production 10 2012E annual production: 17,000…
Marcellus: Retaining Leases for Future Value Capture YTD 2012 largely driven by non- operated activity focused on lease retention Majority of drilling taking place in Bradford and Lycoming counties Non-operated activity slowing due…
An Abundance of Deep Gas Opportunity Approximately 175,000 net acres Montney Potential of high working interest land 33,000 net acres of undeveloped land throughout the region Includes 100% working interest in approximately…
Outlook Good mix of early stage, high growth, and mature oil and gas properties Abundance of growth opportunities in our portfolio today not reliant on acquisitions Delivering organic reserve replacement and production growth…
Supplemental Information The Game Plan
175% Organic Reserve Replacement in 2011 2P reserves increased by 5% 350 322 MMBOE 306 MMBOE Replaced 300% of our oil 300 production, growing 2P oil 43% reserves by 14% 250 47% NPV of reserves increased by MMBOE 200 10%…
Fort Berthold Well Spacing (1280 acres per drilling spacing unit) 2P (EUR) 2P + CR (EUR) Potential Upside Bakken Bakken Middle Middle 800 800 800 800 Lower Bakken Lower Bakken Lower Bakken Three Three…
North Dakota Takeaway Capacity Rail and pipeline commitments in place for 8,500 bbls/day in 2012 and 14,000 bbls/day in 2013 2,000 to 3,000 bbls/day directly exposed to LLS pricing through Feb 2014 20
Marcellus Lease Tenure Non-Operated (47,000 net acres in PA) Operated primarily by Chief, Exco and Chesapeake Anticipate 30% - 35% of leasehold to be held by production by end of 2012 Approximately 22,000 net acres expire in 2013…
Waterfloods: Defining the IOR/EOR Opportunity in Canada Contingent 2011 Resource OOIP YE 2P Total (MMBbl) 2011 Net (net) Reserves Recovered Incremental Operating Asset (MMBbl) (MMBOE) (MMBbl) IOR EOR Total Recoverable Income Medicine…
Stacked Mannville Key Facts Key properties Pine Creek to Hanlan Net Acreage (acres) 70,000 acres (110 sections) Future HZ Drilling 100 - 200 Locations Expected EUR/Well 4.0 - 6.0 Bcfe Acquiring and utilizing 3D seismic…
Deep Gas: Wilrich Type Curve Economics 4.0 Bcf Well 6.0 Bcf Well Type curves are based on offset data NPV NPV and are supported by our well results AECO IRR Payout 10% IRR Payout 10% (/Mcf) % (Years) (MM) % (Years) (MM) Positive…
Montney Cameron/Julienne Creek Key Facts Key Properties Cameron/Julienne Creek Progress/Petronas Net Acreage 33,000 acres (+50 sections) North Montney JV Estimated OGIP 150 Bcf/section (Lily) Future Hz Drilling 350 - 400…
Deep Gas: Upper Montney Type Curve Economics 4.0 Bcf Well 5.0 Bcf Well 6.0 Bcf Well NPV NPV NPV AECO IRR Payout 10% IRR Payout 10% IRR Payout 10% (/Mcf) % (Years) (MM) % (Years) (MM) % (Years) (MM) 4.00 25 3.5 2.5 40 2.6 4.3 57 2.0…
Why the Duvernay Shale at Willesden Green Duvernay has analogous rock characteristics to the Eagleford Prolific over-pressured Devonian source rock Within the gas condensate window, based on: Offsetting well control and reported…
Duvernay Shale Willesden Green Key Facts Sinopec Daylight Key Properties Willesden Green, AB Net Acreage 72,000 acres (113 sections) Est. OGIP 65 Bcf/section Sirius Est. Density 4 wells/section Antelope Expected 3.5 Bcf COP…
Stock Dividend Program (SDP) Benefits: All shareholders are now eligible to participate Shareholders can elect to receive cash dividends or Enerplus shares 5% discount to current market price and no fees or commissions Participation…
Enerplus Share Ownership Investor Composition Geographic Composition Total Institutional 16% 34% Total Retail 23% 32% 66% 18% 68% 43% US/Intl Institutional Canadian Institutional Canada US and Other US/Intl Retail…
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