Our Business BlackGold Oil Sands Upstream Oil & Gas Production North Atlantic Refinery Canadian-based subsidiary of Korea National Oil Corporation (KNOC) Approximately 53,100 boe/d (2013E) oil weighted upstream…
Our History Formed in July 2002 as an energy royalty trust Harvest Operations Yearly Production Proved + Probable Reserves (MMboe) 600 60,000 500 Probable P+P 50,000 400 Proved Undeveloped Production (boe/d) 40,000 300…
Our Distinction Strong Parent in KNOC Investment grade credit rating: A+ (S&P) / A1 (Moodys) Demonstrated support Opportunistic Growth Significant inventory of drilling opportunities Sustainable organic development Efficient and…
Our Parent Korea National Oil Corporation KNOC was established in 1979 & is wholly owned by the Government of Korea KNOCs mandate is to mitigate the impact of oil prices on the Korean economy through worldwide ownership and production…
Our Value to KNOC KNOC KNOC Oil and Gas Production 2012 Production: 240,000 boe/d 2012 2P Reserves: 1,326 MMboe Harvest 25% 75% Harvest Other 2012 Production: 59,327 boe/d 2012 2P Reserves: 494 MMboe KNOC Oil and Gas 2P…
KNOCs Demonstrated Commitment Harvest is KNOCs Canadian investment vehicle KNOC has contributed more than 2.8 billion1 through equity injection, affiliate loan and guaranteed debt 3,500 Guaranteed US Sr. Notes Debenture 3,000…
Our Upstream Operations Western Canada 2013E production of 53,100 boe/d (66% liquids) Decreased production in 2013 is due to natural production declines, a smaller drilling program and recent dispositions of noncore producing assets…
Our Strategy Harvests assets are sorted into: Core Growth Areas Established five Core Growth Areas Primary focus is to achieve future reserves, production and value growth for a profit Growth through drill bit and strategic…
Upstream Resource Potential Harvest has a diversified portfolio of assets providing base production from conventional and proven unconventional oil-focused properties. Five Core Growth Areas Hay River Cecil Deep Basin Red Earth…
Cecil Acquired in June 2008 with 40-100% working interest 25o API Crude Oil British Columbia 12 new wells drilled by Harvest in 2012 Alberta Average daily production of 1,500 boe/d in 2012 Cecil Drilling Upside 1,150m depth…
Deep Basin Alberta Acquired in February 2011 Up to 34 discrete Cretaceous sand packages Deep Basin Facilitates multi-zoned commingled wells Primarily targeting: Liquids rich natural gas 40 to 70 bbls C3+ per mmcf raw gas OGIPs of…
Hay River British Acquired in August 2005 with 100% working interest Columbia Hay River 24o API Crude Oil Operates under pressure maintenance scheme Alberta supported by water injection Winter access only for drilling operations…
Red Earth Primarily targeting: Red Earth 37o- 39o API Light Crude Oil 101,938 net undeveloped acres Harvest has 89% average working interest 7 gross wells drilled in 2012 2012 production averaged 4,149 boe/d Over 200 future…
SE Saskatchewan Acquired in October 2003 33o-35o API crude oil High netback oil Alberta Drilled 11 gross oil wells in 2012 Saskatchewan Strong operating and infrastructure presence Year round drilling access with short break up…
Harvest Upstream - Advantages Cash Flow Netback (/boe) Natural Gas Weighting 35 60% 30 50% 25 40% 20 30% 15 20% 10 5 10% 0 0% Harvest Peer Average (1) Harvest Peer Average (1) Attractive netbacks with a high…
BlackGold Oil Sands Project - Phase 1 SAGD in-situ oil sands in the Athabasca oil sands Great neighbourhood MEG Christina Lake Cenovus - Christina Lake Devon - Jackfish Reserves 94 mmbbls Proved1 P+P 259 mmbbls1 Phase 1 under…
BlackGold Expansion Project Phase 2 under review Regulatory approval expected in 2013 Expansion of Phase 1 site Project costing underway Additional 20,000 bbl/d production 70 million pre-invested during Phase 1 construction Piping…
Non-Core Dispositions Summary of Divestment Program to Date Divestments Proceeds BOE/D ( Millions) Sold in late 2012 (5 properties) 76.0 1,243 Sold in Q1 2013 (4 properties) 9.5 816 Sold in Q2 2013 (2 properties) 112.5 1,060 Total…
Our Downstream Operations Newfoundland Medium gravity sour-crude hydro-cracking refinery 115,000 bbl/d throughput capacity Diversified, high quality product slate 35% distillates, 29% gasoline, and 34% heavy fuel oil Allows Very…
Downstream Scope Feedstock primarily sourced from the Middle East Refined product sold mainly in the Atlantic Seaboard Related businesses: Marketing division with 52 retail gasoline & 3 card lock locations in Newfoundland Retail…
Downstream Market Volatility Average Refining Margin (US/bbl) 20.00 Golden-Age of Refining 15.00 Crude oil prices Financial market collapse Bifurcation of reach 150/bbl & global recession Brent to WTI 10.00 5.00 - Q4 Q1…
Our Capital Structure KNOC ownership & demonstrated equity and financial support provides substantial benefit Bank Debt 15% 6% Senior Notes 12% 55% Equity 15% 2% Senior Notes 4% Affiliate Loan Corporate Presentation…
Bank Debt 1.0 billion syndicated revolving credit facility with 10 banks Maturity April 30, 2017 663.0 million1 drawn on a 1.0 billion facility Subject to financial covenants: Covenant September 30, 2013 Senior debt(1) to EBITDA…
Publicly Traded Debt 6% US Senior Unsecured Notes US500 million principal amount of 6% unsecured Senior Notes Interest payments occur semi-annually on April 1 and October 1 Issued in October 2012 and mature on October 1, 2017 Traded…
Our Financial Objectives Preserve and strengthen balance sheet Fund major capital projects and acquisitions with cash flow, proceeds from non-core asset sales and a conservative mix of debt and equity from KNOC Selectively hedge…
Conclusion Long-life assets Suite of attractive investment opportunities Conventional Oil Sands Cash flow diversification from multiple assets Sound economic fundamentals for long-term growth Strong demonstrated financial support…
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