OIL & GAS
INVESTOR SHOWCASE Investing opportunities with a select group of Canada’s most dynamic junior and mid-cap oil & gas producers Monday, June 11, 2012 | 9:00 am – 4:00 pm | The Westin Calgary, 320 – 4 Avenue SW
FREE ADMISSION | OPEN TO THE PUBLIC | NO REGISTRATION
Frac isolation on coiled tubing
+ sliding sleeves
High-performance alternative to plug & perf and ball-sleeve systems Coiled tubing
Frac ports open
Sand-jet perforating sub (standby)
Resettable bridge plug grips and shifts inner barrel and isolates hole below
Sleeve locator
Isolation assembly and sleeve after shifting
Plug & perf and ball-sleeves and packers are basically brute-force techniques, with fluids and fracs bullheaded down the casing and into the formation, with no feedback about formation response at the frac zone, no recourse in the event of a screenout, and no way to conserve water and chemicals. Also, both methods can require extensive post-stimulation work to drill out plugs or ball seats. With the Multistage Unlimited system, coiled tubing provides both a circulation path to the frac zone and a work string, giving this unique system a number of important advantages and none of the disadvantages of the other methods.
Fast frac isolation, mechanical sleeve shift The coiled tubing running string permits the use of a remarkable, patented, dual-purpose tool that 1) isolates the target zone during the frac and 2) shifts the sliding sleeve open at each stage. This sand-friendly Multistage Unlimited resettable bridge plug eliminates the need for
pump-down plugs and sleeve-shifting balls, cutting time between fracs to only 5 minutes. Fracs are pumped down the coiled tubing/casing annulus (smaller, low-rate fracs can be pumped through the coiled tubing).
Circulation path to the frac zone The circulation path to the frac zone throughout the completion operation provides four important benefits: • It is a means to monitor actual frac-zone pressure in real time for better control of sand placement • It provides a way to manage fluids to reduce water and chemicals consumption up to 50% • It provides quick recovery from screenouts by reverse circulating excess sand out of the well • It enables the use of sand-jet perforating to add stages in blank casing, without tripping out of the hole. It all adds up to better frac control, lower-cost completions, and lower environmental impact. Call us or visit our website for more information.
Leave nothing behind.
ncsfrac.com
409.925.7160 (US)
403.862.0870 (Canada)
info@ncsfrac.com
©2012, NCS Energy Services, Inc. All rights reserved. Multistage Unlimited, and “Leave nothing behind.” are trademarks of NCS Energy Services, Inc. Patents pending.
Canada’s Oil & Gas Entrepreneurs™
1060, 717 – 7 Avenue SW Calgary, Alberta T2P 0Z3 P: 403.269.3454 F: 403.269.3636 E: info@sepac.ca
On behalf of the Board of Governors of SEPAC, Canada’s Oil and Gas Entrepreneurs™, I invite you to attend our Oil & Gas Investor Showcase on Monday, June 11, 2012. The Investor Showcase provides a great opportunity for investors, fund managers, analysts and the media to gain insight from some of Canada’s leading junior and mid-cap oil and gas producers. SEPAC is delighted to have the support of our exclusive event sponsor, ATB Corporate Financial Services, and our entire complement of valued sponsors who help us produce this key event on Calgary’s business calendar. Following the plenary session featuring an overview of economic and industry trends affecting the oil and gas sector, you will find separate but simultaneous presentations being offered throughout the day in our two presentation rooms. As well, you will find corporate materials from each of the presenting companies in the JuneWarren-Nickle’s Energy Group Room. We also extend a welcome to the members of the CFA Society of Calgary who will host a luncheon at the Westin in conjunction with the Investor Showcase. SEPAC’s Oil & Gas Investor Showcase is the only investment conference focused on the exploration and production sector this year in Calgary. We hope your attendance provides you with useful and timely information and insight on the diverse investing opportunities among Canada’s junior and mid-cap companies. I look forward to seeing you at The Westin Calgary on Monday, June 11th. Sincerely,
Gary C. Leach Executive Director SEPAC, Canada’s Oil and Gas Entrepreneurs™
Small Explorers and Producers Association of Canada www.sepac.ca
CORPORATE PROFILE Introduction and Session Sponsors
Table of Contents Welcome Letter . . . . . . . . . . . 3 Introduction and Session Sponsors . . . . . . . . . . . . . 4 & 5 3MV Energy Corp. . . . . . . . . . . 8 Cequence Energy Ltd. . . . . . . . . 9 Crown Point Ventures Ltd. . . . . . 10 Exall Energy Corporation . . . . . . 11 Guide Exploration Ltd. . . . . . . . 12 Hyperion Exploration Corp. . . . . . 13 Invicta Energy Corp. . . . . . . . . . 14 Mako Energy Limited . . . . . . . . 15 Mountainview Energy Ltd. . . . . . 16 Palliser Oil & Gas Corporation . . . 17 Paramount Resources Ltd. . . . . . 18 Primary Petroleum Corporation . . 19 Shoal Point Energy Ltd. . . . . . . . 20 Sure Energy Inc. . . . . . . . . . . . 21 Surge Energy Inc. . . . . . . . . . . 22 Trilogy Energy Corp. . . . . . . . . 23 Tuscany Energy Ltd. . . . . . . . . . 24 Twin Butte Energy Ltd. . . . . . . . 25 Vero Energy Inc. . . . . . . . . . . . 26 Yoho Resources Inc. . . . . . . . . . 27
Introduction and Session Sponsors Showcase Highlights The SEPAC Oil & Gas Investor Showcase offers a unique setting for investors to get immediate, first-hand information from the CEOs of some of Canada’s leading junior and mid-cap oil and gas producers. This event attracts hundreds of retail investors, along with industry analysts, oil and gas executives and media. Keynote Address SEPAC is pleased to announce a double-billing for our keynote address. Mr. Bruce Edgelow of ATB Corporate Financial Services will share the stage with Leslie Kende of AltaCorp Capital Inc. Bruce’s 2012 industry update will be followed by a review of acquisitions and divestitures presented by Leslie. Bruce and Leslie’s presentations will kick off the Investor Showcase program at 9:05 am. Bruce Edgelow Vice President, Energy Group, ATB Corporate Financial Services
Bruce is responsible for helping to build ATB Financial's energy business and capabilities. His team consists of industry specialists in all aspects of the energy industry, including drilling and service, pipelines, utilities, midstream, exploration and production. Before joining ATB, Bruce was a senior Royal banker and has more than 39 years of experience with a focus on the oil and gas industry. Bruce is a Fellow of the Institute of Canadian Bankers, has attained the ICD.D designation, and is a very active participant in community and church activities. He also serves as a Director for the Calgary Counselling Centre and sits on SAIT's Board Advisory Council. He has also been a speaker at numerous oil and gas industry seminars on finance. Leslie Kende, P.Eng. Managing Director, Acquisitions & Divestitures, AltaCorp Capital Inc.
Executive Director – Gary Leach Event & Communication Director – Michelle Chidley 1060, 717 – 7 Avenue SW Calgary, Alberta T2P 0Z3 Phone: (403) 269-3454 Fax: (403) 269-3636
The Ideal Exchange Listing for Emerging Oil & Gas Companies: ↗ Straightforward listing requirements
Spring 2012 Investor Showcase was produced by SEPAC and JuneWarren-Nickle’s Energy Group
JUNEWARREN-NICKLE’S ENERGY GROUP President & CEO – Bill Whitelaw Editor, Special Projects – Rianne Stewart Editorial Assistance – Tracey Comeau, Alison Dotinga, Brandi Haugen Graphic Designer – Janelle Johnson Ad Traffic Coordinator – Denise MacKay Senior Account Executive – Diana Signorile Offices Calgary 2nd Floor, 816 - 55 Avenue NE Calgary, AB T2E 6Y4 Tel: (403) 209-3500 Fax: (403) 245-8666 Edmonton 6111 - 91 Street NW Edmonton, AB T6E 6V6 Tel: (780) 944-9333 Fax: (780) 944-9500 Toll-free: 1-800-563-2946
4 SEPAC INVESTOR SHOWCASE – Spring 2012
↗ Freedom to execute acquisition strategies ↗ Less cash burn ↗ Enhanced public disclosure CNSX is an innovative stock exchange that addresses the specific needs and characteristics of small cap companies, their investors and investment dealers. To learn more, contact: Mark Francis CNSX Advisor P. (403) 532-7870 | E. mark.francis@cnsx.ca
www.cnsx.ca
Our Junior Oil & Gas practice is anything but junior KPMG audits 54 percent of the junior producers on the 2011 Oilweek Top 100 For more information contact: John Waiand Junior Oil & Gas Leader (403) 691-8482 jwaiand@kpmg.ca kpmg.ca
Introduction CORPORATE and Session Sponsors PROFILE
Prior to joining AltaCorp, Mr. Kende was Vice President of Engineering at Vero Energy Inc. (a publicly traded junior oil and gas producer) responsible for acquisitions, divestitures, reserves and corporate strategy analysis. From 2003 to 2007, he was an integral part of Tristone Capital’s successful Acquisitions and Divestitures practice, with direct involvement in more than $8 Bn worth of transactions. Mr. Kende began his career with Amoco Canada, later Crestar Energy, in 1990 in production and development engineering. He has had broad experience across the oil and gas production industry with a third-party reserves evaluator, multinational production companies and several junior companies, including Pinnacle Exploration and Cabre Exploration. Mr. Kende holds an Engineering degree from Queen’s University with a specialization in Geophysics, and an MBA from Nova Southeastern University. Mr. Kende is a
McMillan’s Energy Law Group consists of leading professionals across Canada with a wide breadth of experience and recognized expertise providing legal services and advice to the oil and gas industry. For more information on our experience and capabilities, please visit our website, www.mcmillan.ca, or contact Richard Peters at richard.peters@mcmillan.ca.
professional engineer and member of APEGGA. Outside of business, Mr. Kende is a Past Board Member of Rundle College Society, and Past President and Director of the Hounsfield Heights Briar Hill Community Association.
the JuneWarren-Nickle’s Energy Group Room. We welcome you to visit this room throughout the day and meet representatives from the presenting companies, and pick up quarterly and annual reports and other timely investor-related information.
Corporate Presentations Each company at the Showcase will give a 20-minute presentation about their plans to grow their oil and gas production, whether through the drill bit or via acquisitions or mergers. Read the corporate profiles of our presenting companies in this magazine to decide which sessions you would like to attend.
Sponsor Booths Outside the presentation rooms you will find display booths staffed by the sponsors of the SEPAC Investor Showcase. Take some time and visit with these companies who are great supporters of the junior and mid-cap oil and gas industry in Canada.
Visit the Investor Showcase page on our website (www.sepac.ca) for the most up-todate presentation schedule. Presenting Company Booths All companies presenting in the Investor Showcase will have booths set up in
After the Investor Showcase Did you miss a presentation that you really wanted to see? Audio recordings and viewerdriven slides of the presentations will be made available by CNW Group. A link to these webcasts will be posted on the SEPAC website (www.sepac.ca) on June 15. The webcasts will be available online for a couple of months.
www.pwc.com/ca/dbia
Set to grow We’ll work with you to develop a strategy for sustainable growth
TMX - Growth Partner to the Oil and Gas Industry for More Than 100 years. Toronto Stock Exchange and TSX Venture Exchange are home to over 400 junior and senior Canadian and international energy companies with a total market capitalization of more than $400 Billion. • Global Investments • Global Properties • Global Visibility
Vancouver l Calgary l Toronto | Ottawa l Montréal l Hong Kong | mcmillan.ca
Contact: Alisa Sorochan 403 509 6642 alisa.sorochan@ca.pwc.com
Explore your Capital Opportunity Today.
For more information about listing on TMX Equity Exchanges, contact Cindy Gray at cindy.gray@tsx.com or 403-218-2822. All data as at February 29, 2012
Spring 2012 – SEPAC INVESTOR SHOWCASE 5
Let us help you share your story JuneWarren-Nickle’s Energy Group has over 75 years of publishing experience. Why not use our expertise for your custom publications? We can help you with: • Association journals or newsletters • Anniversary or commemorative issues • Show guides for conferences or tradeshows
Our editorial team will turn your story into finely crafted articles.
Our sales team will support your advertising needs.
Our creative team will produce a publication that reflects your organization’s personality.
Choose JuneWarren-Nickle’s Energy Group as your publishing partner, and we’ll help you share your story!
Our printing team will handle the quantities you need and the distribution you require.
Call 1.800.387.2446 or visit junewarren-nickles.com for more information.
JuneWarren-nickles.com
Efficient Sound Wall Solutions. Wellsite Supervision and Project Management for Small Explorers and Producers • Drilling, Completion, Construction Supervision • International and Offshore Supervision
• Drilling, Completion, Production Engineering • Safety Programs and Audits
Suite 300 Iveagh House 707, 7th Avenue S.W. Calgary, AB Canada T2P 3H6
T 403 264-1197
AIL Sound Wall enclosures are engineered to be cost effective choices for today’s industrial sites. Made from maintenance-free PVC vinyl, our Silent-Protector™ (Absorptive) and Tuf-Barrier™ (Reflective) Sound Walls will save you time and money. Lightweight and easy to install
Designed to meet your specifications
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Customized design and install drawings
F 403 264-1584 www.pajakeng.com
1-866-231-7867
ailsoundwalls.com
Fort Nelson: Heart of the Horn River Basin The regional service centre for the Northern Rockies, Horn River, Liard and Cordova Basins, Fort Nelson is characterized by an abundance of natural resources: lush mixed forests, exciting natural gas development, an emerging agricultural sector, and a tourism sector anchored by the Alaska Highway.
Fort Nelson’s Oil & Gas Service Sector is Ready for Business: From frac sand and fabrication to hot shot services and retail opportunities, you can depend on Fort Nelson businesses to deliver. Today’s diversified business is increasingly attracted to the outstanding career and lifestyle opportunities in our magnificent natural setting. Contact 250-774-2541 | ecdev@northernrockies.ca
www.NorthernRockies.ca
CORPORATE PROFILE
TSX-V:TMV
TMV on the TSX-V
Canadians Producing Energy
3MV Energy began as a private company in the spring of 2008. Focusing on light oil production, 3MV set itself apart from other producers by keeping drilling costs low and recognizing value in areas others overlooked. They developed new drilling and completion methods which greatly reduced the capital required to drill, case, complete, and equip wells in the area. In January 2012, 3MV became publicly listed on the TSX Venture Exchange under the symbol TMV. 2
4
3
5 1
MANAGEMENT Douglas McKinnon President & CEO Billy Abbey, CA CFO & VP, Finance Stacey Majchrzak COO Brian Radiff VP, Corporate Development Tom Campbell VP, Land Roger Ricard Field Operations Manager
6
BOARD OF DIRECTORS
Fiske, Saskatchewan
• Completed independent 3rd party geological review of Fiske discovery area • Identified high permeability Viking fairway 200 – 2,500m wide • Permeability up to 350 mD in fairway compared to less than 20 mD in conventional Viking
• Initial 3rd Party estimates of 600 MBOE per section in the high-permeability zone, and up to 1525 MBOE with secondary recovery • Proprietary 2D & 3D seismic combined with our proven interpretation gives us the technical edge
Invest in Experience
The oil and natural gas industry is intensely competitive and 3MV must compete with a substantial number of other entities which may have greater technical and/or financial resources. However, management believes that 3MV will be able to explore and develop new production and reserves with the objective of increasing its cash flow and reserve base. 3MV attempts to enhance its competitive position by operating in areas where its technical personnel are able to reduce some of the risks associated with exploration, production and marketing because they are familiar with the area.
8 SEPAC INVESTOR SHOWCASE – Spring 2012
Douglas McKinnon, Chairman Ron Baba, QC Dallas Duce Don Fairholm, CA Alex Francoeur, P.Geol Rod Wilmer, CFA George Sereggela* Jim Boyle, QC* *George and Jim are members of the Board of 3MV’s wholly owned operating subsidiary, 3MV Operations Inc.
Head Office
250, 305 - 10 Avenue SE Calgary, AB T2G 0W2
Mailing Address
RPO Stampede Box 93009 Calgary, AB T2G 0X6 main: 403.234.8998 fax: 403.800.9317 www.3MVEnergy.com facebook.com/3MVEnergy twitter: @3MVEnergy
CORPORATE PROFILE
TSX:CQE
MANAGEMENT Paul Wanklyn President & CEO Howard Crone, P.Eng
Cequence Energy Ltd. is a resource play–focused company with current production of 10,000 barrels of oil equivalent per day. Cequence is taking advantage of its land base at Simonette, Alberta, with more than 500 potential stacked drilling locations. In addition to the large inventory of prospects and exceptional deep basin expertise, Cequence’s financial strength provides flexibility to react to changing market conditions and consolidation opportunities.
Executive Vice President & COO David Gillis, CA Vice President, Finance & CFO James R. Jackson, P.Eng, CFA Vice President, Engineering David P. Robinson Vice President, Geology Christopher C. Soby
DEEP BASIN FOCUSED
Vice President, Land
Cequence possesses the following critical elements, which we believe position the Company for
Stephen R. Stretch
continued success in the Deep Basin:
Vice President, Geophysics
Mike Stewart
• A technical team with proven Deep Basin expertise;
Vice President, Operations
• Multi-zone resource plays where operating synergies and stacked targets can reduce costs;
Erin Thorson, CMA
• Access to gathering and processing facilities to guarantee timely, cost-effective development;
Controller
• A focus on liquids-rich gas targets that produce breakeven economics at sub $3.00 per GJ gas prices; 500+ drilling locations at Simonette; • A balance sheet that allows for prudent capital spending in a low price environment.
BOARD OF DIRECTORS Don Archibald Chairman
Simonette has all the critical
Peter Bannister
elements required for a
Paul Colborne
substantial growth area.
Robert C. Cook
Cequence has more than
Howard Crone
165 net sections of land
Brian Felesky
with multi-zone potential
James K. Gray
at Simonette and maintains
Francesco Mele
operatorship of the entire
Paul Wanklyn
block. Cequence’s recent winter drilling program
HEAD OFFICE
focused on the Montney
3100, 525 - 8 Avenue SW
reservoir at Simonette, and
Calgary, Alberta T2P 1G1
results have exceeded
T: 403-229-3050
our expectations.
F: 403-229-0603 E: info@cequence-energy.com W: www.cequence-energy.com
CONTACT INFORMATION Paul Wanklyn
Key Data
President & CEO
Production - Current
10,000
Shares outstanding
162mm
Market cap.
~220 million
Gas weighting
87%
pwanklyn@cequence-energy.com David Gillis VP, Finance and CFO dgillis@cequence-energy.com
Spring 2012 – SEPAC INVESTOR SHOWCASE 9
CORPORATE PROFILE
TSX-V:CWV TSX.V - CWV
CROWN POINT VENTURES LTD.
www.crownpointventures.ca
info@crownpointventures.ca
2 0 1 2
F A C T S H E E T
MANAGEMENT
COMPANY OVERVIEW
Murray D. McCartney President & CEO, Director
Crown Point Ventures Ltd. (CWV-TSXV) is junior international oil and gas company focused on identifying, acquiring and developing low-risk and high reward oil and gas deposits in Argentina (onshore). The company is successfully implementing a strategy of acquiring and exploiting undercapitalized oil and gas assets in the three major producing basins in Argentina. Crown Point is exposed to resource potential across four concessions including El Valle, Cerro Los Leones, Cañadon Ramírez, and Laguna de Piedra.
Mateo Turic President & CEO, Argentina Operations, Director Arthur J.G. Madden Chief Financial Officer Daniel Lanussol Executive Vice President, Argentina Operations
Crown Point recently announced the acquisition of Antrim Argentina S.A. for $46.4 mm (net of assumed working capital), which included metrics of $29,935/boe/d and $7.66/boe on a 2P basis. The acquisition further expands the company's Argentina exposure and adds approximately 1,500 boe/d (20% liquids) from the Tierra del Fuego property.
BOARD OF DIRECTORS
The company is headquartered in Calgary, Alberta and is led by Murray McCartney and Arthur Madden, formerly of Cavell Energy and Adamant Petroleum, both of which were Canadian junior oil and gas companies acquired by larger entities when production growth justified the exit. The Argentine subsidiary is led by Mateo Turic, with 35 years of production and development history in Argentina and elsewhere in Latin America, having been the former director of exploration and development for YPF.
Gordon Kettleson, Chairman
PROPERTY OVERVIEW
James McMurdo Director of Operations
Carlos Olivieri Denny Deren John Clark John Chulick Keith Turnbull MARKET FACTS (PROFORMA ACQUISITION) Ticker: TSX-V:CWV 52 Week high / low: $2.38 / $0.73 Common shares (mm): 104 Market capitalization ($mm)*: 117 Positive working capital ($mm): 30 Enterprise value ($mm)*: 87 Insider ownership: 7% Undeveloped land (acres): 693,845 *Based on a price of $1.12/share March 23, 2012
10 SEPAC INVESTOR SHOWCASE – Spring 2012
Neuquén Basin High impact conventional exploration and unconventional shale 300,000 net acres at Cerro Los Leones with operatorship 180 square miles of Vaca Muerta upside potential ~14 mmbbls estimated net recoverable oil Vaca Muerta oil shale evaluation to start mid-2012 San Jorge Basin Low risk multi-zone light oil development Currently producing ~450 boe/d (100% oil) and looking to ramp up to ~1,500 boe/d (El Valle) and 300-600 boe/d (Cañadon Ramirez) by year end 2012 Austral Basin Low to medium risk oil and gas development exploration Currently producing ~1,550 boe/d (80% gas) with rising gas price environment Tierra del Fuego assets offer significant 3D identified low risk natural gas and oil drilling opportunities CROWN POINT TAKEAWAYS Exposure to 3 key basins with unconventional and conventional opportunities Current net production ~2,000 boe/d (Q4/11) and growing ~1,550 boe/d Austral Basin, ~450 boe/d San Jorge Basin Operatorship of Cerro Los Leones with 300,000+ net acres (Neuquen Basin) Significant Vaca Muerta upside Low opex ($10-14/boe), low royalties (12%-15%), attractive netbacks ($51/boe including Petroplus) Larger reserve sizes for new fields and pools when compared to North America 4,454 mboe proved, 7,777 mboe 2P reserves Small company exposed to large “game changing” upside
CORPORATE PROFILE
TSX:EE
Exall Energy Corporation is a Canadian based junior oil & gas exploration and production company developing oil & gas assets in Western Canada, particularly in the Mitsue area of Alberta. Exall is weighted towards light oil with high operating margins. Exall has a solid production base of light oil and gas, and has shown itself capable of setting and achieving ambitious production and cash flow targets. Exall is in a favourable position to exploit existing opportunities and to take advantage of opportunities that arise.
2011 Highlights
Directors
A 25 percent increase in the fiscal 2011 production average to 1,094 boe per day from the fiscal 2010 production average of 877 boe per day.
Frank S. Rebeyka, Vice-Chairman Calgary, Alta.
Spud 13 gross (9.07 net) wells with eight gross (5.64 net) wells being placed on production and two gross (1.40 net) wells in various stages of completion, and one gross (0.72 net) service well.
Bernard A. Lang Edmonton, Alta.
Spud two gross (1.32 net) wells were drilling through year end.
Roger N. Dueck Calgary, Alta.
A 38 percent increase in the fourth quarter 2011 production average to 1,383 boe per day from the fourth quarter 2010 production average of 999 boe per day.
Achieved 3D seismic drilling success. Completed upgrades at the Marten Mountain pipeline and battery facility alleviating certain gas constraints. Acquired 175,040 gross (128,582 net) acres of undeveloped land in Mitsue, Alberta.
Stephen G. Roman, Executive Chairman Gormley, Ont.
Roderick Phipps Calgary, Alta. D. Allan Menzies Calgary, Alta. Wayne Egan Toronto, Ont.
Areas of Operation
Reserves (mboe)
Change from Dec 31/09
Total Proved
2,346
12%
Total Proved + Probable
4,499
38%
February 29, 2012
The increase in reserves is due to the drilling success during 2011 and GPP approval.
Exall Energy Production Aitken Creek
Alberta
2500
Alberta
Gas (BOE 6:1)
Mitsue Mitsue
2000
Edmonton
1500
Oil (BOPD)
Jayar Jayar Edmonton
Calgary
1000
500
Gas
0
Janet MacKenzie, PGeol. Vice-President, Exploration
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2009 2010 2011 2008
Oil Exall Energy Corporation
400, 715 – 5th Avenue SW Calgary, AB T2P 2X6 Tel: 403-237-7820 (ext 223) Fax: 403-262-4723
Glen Kerr, B.Eng., PEng. Vice-President, Operations
Exall Energy Corporation 1700, 8 King Street East Toronto, Ont. M5C 1B5 Tel: 416-368-3949 Fax: 416-368-5146
Bow Island Oil
Warren F.E. Coles, MBA Vice-President, Finance and Chief Financial Officer
Exall Energy Corporation 400, 715 – 5th Avenue SW Calgary, Alberta T2P 2X6 Tel: 403-237-7820 Fax: 403-262-4723
Calgary Bow Island
Gas
Roger N. Dueck, BEng., PGeol. President and Chief Executive Officer
Email: rd@exall.com
www.exall.com Spring 2012 – SEPAC INVESTOR SHOWCASE 11
CORPORATE PROFILE
TSX:GO
Guide Exploration is an intermediate oil and natural gas company positioned for long-term growth in Western Canada.
GuideX Strengths
• Big exposure to unconventional resource plays
• Proven management team with history of growing assets
Oil Production (bbl/d)
• Ability to focus development capital on high netback plays
5,000
Oil Production Growth
Dale Miller President Shivon Crabtree VP Finance and CFO
4,000
Dale Orton VP Engineering
3,500
Devin Sundstrom VP Production Jim Iverson VP Exploration
Guide Land Position
Peace River Arch
Cherhill
1,400,000 net acres
TSX: GO 12 SEPAC INVESTOR SHOWCASE – Spring 2012
Management Team Bill Andrew Chair and CEO
4,500
Northern Gas
Suite 400, 250 – 2 Street SW Calgary, AB T2P 0C1 Tel 403.261.6012 Fax 403.262.5561
Fast Facts Shares Outstanding 104 million Current Production Oil Production NGLs Production Natural Gas
15,700 boe/d 5,000 bbl/d 350 bbl/d 62 MMcf/d
William Tang Kong VP Corporate Development
Board of Directors Bill Andrew Dale Miller John Brussa Glenn Carley
Reserves (2P) Oil + NGLs Natural Gas
15,753,000 bbls 219 Bcf
Debt/Bank Facility Tax Pools
$205 / $250 million $682 million
William Cooke Jeffrey Errico Lawrence Fenwick Brad Munro Patricia Newson
www.guidex.ca
CORPORATE PROFILE
TSX:HYX Hyperion is a publicly traded, high-growth junior light oil and gas company resulting from the recapitalization of Triple 8 Energy Ltd. in July 2010. Hyperion’s business strategy is to grow through acquisitions, which lead to lower risk, scalable, and repeatable development drilling projects. Hyperion's core Alberta operations are in North Pembina, Buck Lake, Garrington, Niton, and Chip Lake areas.
HIGHLIGHTS
MANAGEMENT Trevor Spagrud President, Chief Executive Officer and Director Larry Hammond Chief Operating Officer Doug Bailey Chief Financial Officer Tim Gee Vice President, Engineering
Ryan Heath Vice President Land & Business Development Steve Horth Manager, Exploration
BOARD OF DIRECTORS
Completed four acquisitions since 2010. Gained scale and repeatability in established Cardium light oil producing areas. 64 un-booked locations (54 targeting tight oil) to provide the opportunity for strong, operated, organic growth in 2012 and beyond. 2012 capital budget includes 14 gross (9.9 net) total wells, including 12 gross (7.9 net) cardium horizontal light oil wells Guidance: • Average 2012 production of 1,600 to 1,700 boe/d (64% light oil and liquids) • Exit 2012 production of 1,800 to 2,000 boe/d (64% light oil and liquids) • Total capital expenditures of $43 million • Operating costs including transportation of $12.00/boe
HYPERION LAND BASE
Rod Maxwell Dan O’Neil Greg Turnbull Greg Bay Trevor Spagrud
Approximately 46,000 acres of undeveloped land in west-central Alberta.
INVESTOR RELATIONS Doug Bailey Chief Financial Officer dbailey@hyperionexploration.com Suite 2010, 355—4th Ave SW Calgary, AB T2P 0J1 Tel: 403.930.0703
2011 reserves
Recent Price: $0.98
Proved Producing (mboe)
Avg. Daily Volume: 150,000 Shares Out. (basic): 54.2mm
2,223
• • •
Net Debt (exit 2011): $6mm
Oil Guidance
NAV BUILD – PRO FORMA
PRODUCTION GROWTH
FD Shares Out: 71.5mm
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0
Q3/ 2010
Actual
Q4/ 2010
Actual
Q1/ 2011
Actual
Q2/ 2011
Actual
Q3/ 2011
Q4/ 2011
2012
Estimate
Total Proved (mboe)
1,028
Probable (mboe)
3,250
Total Proven & Probable (mboe)
2,271
5,521
NPV 10% Before Tax TPP ($M)
$76,095
Total Proved RLI: 6.7 years Total Proved Plus Probable RLI: 11.4 years Production Replacement Ratio: 1,149%
$300.00 Net Asset Value ($MM)
Market Cap.: $53.1mm
Gas (6:1) NGLs
Proved Undeveloped (mboe)
$250.00 $200.00 $150.00 $100.00 $50.00 $–
YE 2010 P BT NPV 10%
Land, Seismic & Tax Pools **under evaluation**
Debt
Upside Drilling Locations
$ 5.50 $ 5.00 $ 4.50 $ 4.00 $ 3.50 $ 3.00 $ 2.50 $ 2.00 $ 1.50 $ 1.00 $ 0.50 $–
Reserve Value by Product
MARKET DATA
Gas 26%
Oil 48%
NGLs 26%
Actual Estimate
Spring 2012 – SEPAC INVESTOR SHOWCASE 13
CORPORATE PROFILE
TSX:VCA Invicta Energy Corp. (TSX:VCA) is a Calgary based, emerging junior oil and gas company exploring and developing light oil opportunities in Saskatchewan and Alberta. The Company’s current focus is the development of its Viking resource play in Kindersley, Saskatchewan. Invicta is the operator of this play with an average 53% working interest. In addition, Invicta has accumulated undeveloped land in central Alberta on four prospective plays for light oil.
Profile Listing: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shares Outstanding (basic/diluted):. . . . . . . . . . . . . . . . . Insider Ownership (basic/diluted): . . . . . . . . . . . . . . . . . Institutional Ownership: . . . . . . . . . . . . . . . . . . . . . . . . . Market Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . Current Production:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Undeveloped Land: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2P Reserves/PV10: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ManageMent Gord Reese, President & CEO
VCA.TSXV 75.5 MM /101.7MM 14% /22% diluted 20 – 25% ~$20 MM 350 – 380 BOE/D (75% oil) 46,000 acres (41,900 net) 2,545 MBOE/$59.2MM
Kindersley, core area Renegade
John Gee, P.Eng., Vice President Engineering and COO
Novus
Carrie McLauchlin, CA, Vice President Finance and CFO
Whitecap Westfire Renegade
Gord Timm, P. Land, PSL, VP Land Sony Gill, LLB, Corporate Secretary
Tiene
Home Qtr
Board of directors
Allstar
Dennis Nerland, LLB Doug Bartole, P.Eng.
Ish
Larry M. Jones Rod Maxwell, CA, CBV
Kindersley
Gord Reese, President & CEO
Head office #1550, 555 – 4th Ave. SW, Calgary, AB T2P 3E7 Phone: (403) 265-8890 Fax: (403) 265-8891
Key contacts Gordon Reese, President & CEO gord@invictaenergy.ca or Carrie McLauchlin, VP Finance & CFO carriem@invictaenergy.ca
Invicta Land
14 SEPAC INVESTOR SHOWCASE – Spring 2012
Invicta Drilling Locations
• Operatorship- 53% Avg WI • 18 gross (11.9 net) producing wells • 600 meter horizontal wells using pad drilling & monobore completion • D&C costs average $950K • Focused facility infrastructure to increase operational efficiency • Undeveloped land of 5,520 acres (3,292 net) • In excess of 190 gross locations; year-round access • Light, sweet (32-38 degree API) oil; 6 -10 million barrels of oil in place per section • 20 (11 net) wells planned for 2012 - $12.2 MM net capex
2012 guidance
WeBsite www.invictaenergy.ca
Drilled Viking Hz Wells
Drilling Program Gross (Net)
Exit Production BOE/d
CAPEX(1) $MM
Funds Flow(2)
Funds Flow(2)
YE Net Debt
20 (11 net)
675-725
$14 MM
$6.4 MM
$10 MM
$11MM
$0.09/share
$0.13/share
Includes $1.8 MM for land and seismic (2) Based on $95/bbl US WTI oil; $2.50/mcf natural gas; and $1 CDN: $0.98 US (1)
CORPORATE PROFILE
ASX:MKE|OTC QX:MAEEY www.makoenergy.ca Canadian Oil and NGLs / Near-Term Production Growth / Early Stage Upside Mako Energy Limited (Mako) is an exploration and production oil and gas company based in Calgary, Alberta, Canada. Mako is focused on the light oil and liquids rich natural gas area of the Western Canadian Sedimentary Basin. The Company’s primary interests are in the Rock Creek formation (light oil and liquids rich natural gas) and in the Duvernay formation (world class, liquids rich natural gas shale) in west-central Alberta. Mako’s shares trade on the Australian Stock Exchange (“ASX”) under the symbol MKE and on the OTC QX as MAEEY.
Leadership Team
Core Plays
MANAGEMENT
1. Rock Creek (41% W.I.)
Paul Griese
Potential for higher deliverability and lower decline than Cardium, Viking or Bakken wells
President & Managing Director
Cam Bolter Executive Vice President
2. Duvernay (41% W.I.)
Jim Wilson Chief Financial Officer & Corporate Secretary
Evolving fracturing technologies have unlocked new potential of this prolific liquids rich natural gas play
ALBERTA
Brad Crowe Vice President, Land
3. Dina (100% W.I.)
Simon Owen Executive Vice Chairman
BOARD OF DIRECTORS George Watson Chairman
Garry Mihaichuk Independent Director
EDMONTON 2 1
Low risk, predictable, appreciating asset, in the Provost area, providing cash flow and near-term production growth
3
CALGARY
Graham Anderson Independent Director
Liquids Rich Window Developing Resource Plays Heavy Oil Development Play
Simon Owen Executive Vice Chairman
Paul Griese President & Managing Director
Investment Value • Large acreage holdings in west-central Alberta, well positioned for reserves and production growth in emerging light oil and liquids rich natural gas resource plays; recycle ratio of approximately 3x • 2012 development and exploration plan using horizontal and multi-stage fracturing technologies to unlock resource plays • Strong leadership team with solid track record of building successful oil and natural gas companies • Debt-free with cash in the bank
Canadian Office
800 – 521 3rd Ave SW Calgary, AB Canada T2P 3T3 1-403-476-7850
Australian Office ir@makoenergy.ca
14 Emerald Terrace West Perth, WA Australia 6005 +61-8-9226-0443
Spring 2012 – SEPAC INVESTOR SHOWCASE 15
CORPORATE PROFILE
TSX-V:MVW.V Mountainview Energy’s mission is to explore, drill and develop for oil and gas in the Williston Basin Bakken/Three Forks play and the South Alberta Bakken play. By acquiring these properties we have the opportunity, through exploration and development drilling, to increase our daily production. Our strategy will allow Mountainview Energy to build an oil and gas company based on solid fundamentals. To accomplish our goals, Mountainview will rely on management’s proven record of over 50 years of developing oil and gas fields.
Management Patrick Montalban President & Chief Executive Officer Angelique Hatch Chief Financial Officer Joseph P. Montalban Chief Operating Officer Carla Barringer Executive Secretary & Treasurer Kevin O’Day Land Manager
Board of Directors Patrick Montalban Keith MacDonald Denny Hop
Mountainview Energy Ltd. is a Montana-based company actively engaged in the exploration, production and development of oil and gas properties in eastern Montana and western North Dakota to develop the Bakken and Three Forks Shale project. The company is also actively engaged in the South Alberta Bakken play in north-central Montana, east of the Northern Rocky Mountain Front. The common shares of Mountainview Energy Ltd. trade on the TSX Venture Exchange under the symbol MVW.V. Mountainview Energy Ltd.’s mission is to drill and explore for oil and gas in the Williston Basin Bakken/Three Forks play and the South Alberta Bakken play. In the Williston Basin Bakken/Three Forks play there are other producing zones in the area, including the Ratcliffe, Mission Canyon, Nisku, Gunton and Red River. In the South Alberta Bakken Play the other producing intervals include the Sunburst sandstone, Madison Sun River Dolomite, Lodgepole, Nisku, Duperow and Souris River. By acquiring these properties we have the opportunity, through drilling, to increase our daily production. This strategy will allow Mountainview Energy Ltd. to build an oil and gas company based on solid fundamentals. To accomplish our goals Mountainview will rely on management’s proven record of over 50 years of developing oil and gas fields both in private and public companies.
Bo Mikkelsen Carla Barringer
Head Office 33-1st Avenue SW P.O. Box 200 Cut Bank, Montana 59427 T: (406) 873-2235 F: (406) 873-2835 E: mvw@bresnan.net www.mountainviewenergy.com
Contact Information Patrick Montalban President & Chief Executive Officer T: (406) 873-2235 F: (406) 873-2835 E: mvw@bresnan.net Joseph P. Montalban Chief Operating Officer T: (406) 873-2235 E: josephm@mountainviewenergy.com
16 SEPAC INVESTOR SHOWCASE – Spring 2012
Williston Basin Bakken/Three Forks • 22,000 total net acres –approx. $1,150 per acre ~ 12,000 acres (100% WI, 78% NRI) ~ 50,000 gross acres/10,000 net acres ~ 20% WI, 80% NRI • 2012 capital program: ~ 9 gross horizontals (3 operated/ 6 non-operated) • Several large nearby producers ~ TAQA, Baytex, Crescent Point, EOG, Brigham, Geo Resources, Marathon & Samson Resources • Well production range: 200 – 1,000 boe/d in first month • Continuing to build our acreage position using our strong Williston Basin relationships
South Alberta Bakken Play • Rosetta Resources, Newfield Exploration, Anschutz Exploration and Primary Petroleum have recently been drilling Bakken wells in the area. • According to Rosetta they believe there is between 13 - 15 MMboe per square mile of resource in place. • Montana Board of Oil and Gas has recorded at least 55 wells that have been permitted, spudded or drilled by these four companies. • Prospective formations: Mission Canyon, Lodgepole, Bakken and Three Forks. • Approx. $500 million has been spent to date on land, Joint Venture deals and drilling.
CORPORATE PROFILE
TSX-V:PXL
Oil & Gas Corporation REJUVENATING OLD OIL FIELDS
TSX Venture Exchange: PXL
MANAGEMENT
CORPOR ATE PROFILE
Kevin Gibson
Palliser is a junior exploration and production company that has achieved 12 consecutive quarters of
President & CEO
production growth and has a 98% crude oil production weighting. Palliser is focused on conventional
Allan Carswell
heavy oil production in the greater Lloydminster area of both Alberta and Saskatchewan.
Vice President, Exploration & COO Ivan J. Condic Vice President, Finance & CFO
CORE AREAS
Robert (Bob) Padget Vice President, Engineering
ALBERTA
Current focus
SASKATCHEWAN
Glenn Taylor Vice President, Production & Operations
DIRECTORS
EDMONTON
Lloydminster Heavy Oil Area
Allan Carswell
SASKATOON
Ken Crowther
CALGARY
Daryl Fridhandler, Q.C., Chairman
Medicine Hat Gas Area
Kevin Gibson Stephen Hayden
Palliser Assets
SASKATCHEWAN
Frenchman Lloydminster Tangleflags ~ 65 miles
Jeffrey C. Saponja
ALBERTA
HEAD OFFICE 600, 840 – 6 Avenue SW,
Edam
Calgary, Alberta T2P 3E5
Manitou Lake
[p]: 403-209-5710 [f]: 403-228-7992
~ 65 miles
[e]: info@palliserogc.com www.palliserogc.com
CONTACT INFORMATION Kevin Gibson President & CEO Direct: (403) 209-5717 Email: kevin@palliserogc.com
CAPITAL STRUCTURE
ASSET BASE
• Shares outstanding (basic/diluted) 54.1 MM/59.1 MM
• December 2011 production - 2,150 boe/d (98% heavy oil)
• Insider holdings (basic/diluted) - 7%/12%
• Undeveloped land - 47,601 net acres
• Credit facility - $38.0 MM
• Prospect inventory - 139 heavy oil locations
• Net debt (@ Dec 31/11) - $20.9 MM • Tax pools (@ Dec 31/11) - $68.6 MM
2012 CAPITAL PROGR AM Drilling & reactivation locations Capital expenditures
26 $30.0 MM
Spring 2012 – SEPAC INVESTOR SHOWCASE 17
CORPORATE PROFILE
TSX:POU.TO Officers C. H. Riddell Chairman of the Board and Chief Executive Officer J. H. T. Riddell President and Chief Operating Officer B. K. Lee Chief Financial Officer E. M. Shier General Counsel and Corporate Secretary, Manager, Land L. M. Doyle Corporate Operating Officer G. W. P. McMillan Corporate Operating Officer D. S. Purdy Corporate Operating Officer J. Wittenberg Corporate Operating Officer
Paramount Resources Ltd. is an independent, intermediate Canadian energy company. The company explores for, develops, produces, and markets natural gas, crude oil, and natural gas liquids in Alberta, British Columbia, the Northwest Territories, North Dakota, and Montana. The company also holds investments in public and private entities, including Trilogy Energy Corp., MEG Energy Corp., and MGM Energy Corp. The strategy of the company is to maintain a balanced portfolio of opportunities, while growing reserves and production within the company’s principal producing areas. The company has a large inventory of undeveloped acreage from which to draw. Paramount is divided into four Corporate Operating Units: Kaybob, Grande Prairie, Northern, and Southern.
P. R. Kinvig Controller
• Paramount is 33 years old • 188 full-time employees (137 head office, 51 field at Dec. 31, 2011) • 85.6 million shares outstanding (March 31, 2012) • Greater than 50 per cent insider ownership • Approximately 1.2 million net acres undeveloped land (Dec. 31, 2011) • 2012 average production forecast: 25,000 barrels of oil equivalent per day • 2012 exploration and development budget: $475 million; strategic investment budget: $60 million
L. A. Friesen Assistant Corporate Secretary
Board of Directors C. H. Riddell J. H. T. Riddell J. G. M. Bell T. E. Claugus J. C. Gorman D. Jungé D. M. Knott S.L. Riddell Rose J. B. Roy B. M. Wylie
Head Office
investments
4700, Bankers Hall West 888 – 3rd Street SW Calgary, Alta. T2P 5C5 T: (403) 290-3600 F: (403) 262-7994 www.paramountres.com
Paramount holds investments in the securities of a number of public and private entities, and three drilling rigs which are summarized below:
Contact Information J. H. T. (Jim) Riddell, President and Chief Operating Officer B. K. (Bernie) Lee, Chief Financial Officer T: (403) 290-3600 F: (403) 262-7994
18 SEPAC INVESTOR SHOWCASE – Spring 2012
Market Value(1)
Shares Owned (millions)
Trilogy Energy Corp.
($/share)
($ millions)
19.1
26.36
504.6
MEG Energy Corp.
3.7
38.46
142.3
MGM Energy Corp.
43.8
0.19
8.3
n/a
n/a
45.0
Fox/Paramount Drilling Other
20.0
Total
$720.2
(1) Based on the March 30, 2012 closing price of publicly traded investments, book value of remaining investments and the estimated value of the drilling rigs.
This document is a summary of information contained in Paramount’s presentation materials. Readers should refer to the complete presentation and the advisories contained therein.
CORPORATE PROFILE
TSX-V:PIE Primary is a junior oil and gas company engaged in exploration and development activities in Montana and currently holds substantial land positions in both an unconventional and conventional resource oil play. The Company’s mandate is to continue to acquire strategic opportunities in the Sedimentary Basins of the Western United States and Canada and seek out qualified industry partners to assist in the exploitation and development. To learn more about us, please visit our website at: www.primarypetroleum.com
THE SOUTHERN ALBERTA BASIN OF NORTHWESTERN MONTANA – A NEW MULTI-FORMATION TIGHT OIL RESOURCE PLAY Primary Petroleum has focused a majority of its resources in the evaluation and acquisition of prospective oil acreage in Montana since 2006. The company has a significant land position in the Southern Alberta Basin Bakken Fairway (SABB) in NW Montana. To date, Primary has completed approximately 117 square miles of 3-D seismic; purchased and re-processed 300 miles (480 km) of 2-D seismic trade data and has drilled, logged and cored six vertical stratigraphic test wells ranging in depth from 4,200 to 6,500 feet (1,280 to 1,980 meters) over its leases located in the SABB. The targeted oil bearing reservoirs evaluated and tested are the Sunburst, Madison, Lodgepole, Bakken, Three Forks (Bakken System) and Nisku Formations. Primary and its JV Industry Partner hold over 361,000 gross / 304,000 net acres or 146,100 / 123,000 hectares (500 gross / 337 net sections) in the Bakken System prospective areas. Primary and its US Major Industry Partner currently hold 67.5 / 32.5% interest over its SABB Leases in NW Montana. Estimated published OOIP (Original Oil in Place) on a section of land in the Fairway ranges from 13 million to 15 million barrels. To date, the SABB fairway extends approximately 280 km (175 miles) in a NW-SE trend and remains open. The width of the fairway is currently estimated at 48-64 km (30-40 miles).
Bakken System Production Rates Modified from Smith & Bustin, 2000
R13
Argosy 585 boe/d ~24 hrs
Bowood 357 boe/d ~14 days
TORC 280 bbl/d IP90 DeeThree 415 boe/d IP30
T36N
Mike Marrandino President & CEO (403) 930-3224 mike@primarypetroleum.com
MANAGEMENT, DIRECTORS & ADVISORS Mike Marrandino Founder, President & CEO, Director
William Paddock Drilling & Completions Consultant, USA
Brian Spilchen, CMA CFO INDEPENDENT DIRECTORS William D. B. Koenig CFA, CMA President, Time Stops Consulting Ltd.
ROSE 151 boe/d
• Completed drilling, logging and cored 36.5 meters (120 ft) section through the Bakken System. • April 2012 - commenced secondary drilling and productiontesting program of up to four vertical wells to evaluate the Nisku, Sun river and Sunburst reservoirs. • June/July 2012 - commence horizontal drilling, fracking and completion program for production testing of the Bakken system. • Strategic land acquisition continuing.
CONTACT INFORMATION
Colleen Bailey B.A. Manager of Land
R2W
ROSE 403 boe/d
Pondera-Teton 2012 Drilling Program Update
www.primarypetroleum.com
Jim Ehrets P.Geol Technical & Operations Montana, Director
DeeThree 800boe/d ~3 days
T1
R16W
ROSE – 7 day stabilized production rates NFX – Initial production rate
Primary Petroleum Corporation Suite 480, 700 - 4th Avenue SW Calgary, AB, Canada T2P 3J4
Rod Haverslew M.Sc. P.Geol VP Exploration, Director
Murphy 400 boe/d ~42 days
Murphy 216 bbl/d IP30
L ethbridge
HEAD OFFICE
Robert Bailey P.Eng. Operations Consultant, Canada
R27
LEGEND Rosetta Newfield Shell Murphy Torc Deethree Crescent Pt Bowood/Legacy Argosy Primary Well Locations First Nations Reserves Primary Leased Lands
CONTACT US
ROSE 104 boe/d
K. Alan Blair Partner, Gowling Lafleur Henderson LLP
NFX 225 boe/d
ADVISORS Don R. Lee, Attorney Montana Lease & Title Options
T22N
P. Ted Doughty Ph.D, P.Geol. Prisem Geoscience Consulting LLB
Spring 2012 – SEPAC INVESTOR SHOWCASE 19
CORPORATE PROFILE
CNSX:SHP
Green Point Play: 720,000 Acres of Potential Light Oil in Thick Reservoirs
SHP : CNSX Share capital: 263,950,904 shares I/O 375,509,318 shares F/D
Management George S. Langdon, Phd., P.Geo. President R. Brian Murray, C.A., MBA Chief Financial Officer Russ Compton Sr. Operations Manager Derek Sullivan Manager, Health, Safety and Environment
Technical Advisors J.N. (Jock) McCracken, P.Geol. Egret Consulting, Calgary NuTech Energy Alliance, Houston Ingrain Digital Rock Physics Lab, Houston
Board of Directors Norman Davidson-Kelly, Chairman of the Board John Clarke Howard Hanick George Langdon Steve Millan R. Brian Murray Donald Sheldon
Head Office Suite 501, 65 Queen Street West Toronto, Ontario, Canada M5H 2M5
Shoal Point Energy Ltd. holds rights to an extensive, “unconventional,” oil-in-shale play in the near offshore of western Newfoundland. The company currently operates approximately 720,000 gross and 707,000 net acres in the prospective Green Point Formation, which is an organic-rich, deepwater deposit of Ordovician age, formed in the Appalachian foreland. Since a large proportion of the play lies parallel to and under the current shoreline it can be substantially developed by land-based drilling. This play is roughly time-equivalent and analogous to other shale liquids plays that are being developed in continental North America, but is distinct in its pervasively fractured character, and extraordinary thickness. The prospective interval has been identified from several wells drilled at the shoreline of Port au Port Bay (Exploration License 1070), ranging from 915 gross metres in the Shoal Point 2K39 well to 2147 gross metres in the Long Point M16 well, with net pay values calculated from Nutech petrophysics at 887 metres and 333 metres, respectively. The Green Point Formation is part of the tectonized and imbricated Humber Arm Allochthon, which explains its very thick and fractured character, and may provide flow without stimulation, and higher than average recoverability, over large areas. In the Port au Port Bay wells, the entire thickness of the Green Point lies within the oil window. AJM Deloitte has recently assigned a range of ~22.5 billion (best estimate) to ~50 billion (high estimate) barrels of Undiscovered Petroleum Initially-in-Place to the three combined offshore blocks, EL1070, EL1120, and EL1097R. Stratigraphically, the Green Point is a cyclical, basin-centre, “hybrid” unit that contains both mature source black shale and porous-permeable siltstones and sandstones within its cycles; each cycle, in effect, may be a self-charging, self-sealing unit of some tens of metres of thickness. Up to thirty or more cycles may be present in the deeper parts of the basin. Small amounts of historical production from shallow wells in the Green Point show a light, sweet, paraffin-free crude of 32-36 degree API gravity; oil shows in the current 3K39Z well suggest a crude in the 40-45 degree range. Oil seeps are present along the coast and wherever there is Green Point at surface in western Newfoundland. The Company is currently testing its Shoal Point 3K39Z well on EL1070, which is the first well to be drilled specifically to evaluate this emerging play in western Newfoundland. Upon a successful test of this well, the Company will make application to the regulatory authority for a Significant Discovery License, which would preserve the prospective lands for production. Shoal Point has also acquired two adjacent blocks through farmin—EL1120 and EL1097R—and is planning to mobilize a rig to test each of these properties commencing in Fall 2012. Regional infrastructure such as roads and ports in the area provide an immediate ramp-up scenario to production and transhipment to refineries on the eastern seaboard of North America.
Shoal Point Energy Land Position Green Point
Shoal Point 3K-39
• 720,000 gross and 707,000 net acres of
Contact Information www.shoalpointenergy.com George Langdon 416.637.2181 ext. 305 glangdon@shoalpointenergy.com R. Brian Murray 416.985.7810 rbrianmurray@rogers.com W. David Black, Investor Relations 416.637.2181 ext. 308 dblack@shoalpointenergy.com 20 SEPAC INVESTOR SHOWCASE – Spring 2012
Location: West Newfoundland oil-in-shale potential
Parson’s Pond
EIA
Shales Flowing Oil
• A JM resource study: High estimate of
St. Pauls
~50 billion barrels Undiscovered PIIP
Sally’s Cove Trout River
• Operator in all lands
Chimney Cove
• Light sweet crude is expected to be main
Little Port
product
Shoal Point 3K-39
• Currently completing extensive testing Possible Drilling Locations are Underlined
Properties can be drilled from the shore into the shallow water, Western Newfoundland
program • Applying for production license • Regional infrastructure, roads and ports
CORPORATE PROFILE
TSX:SHR Sure Energy Inc. is a junior Canadian oil and gas company listed on the TSX. The Company has an experienced management team that was instrumental in building Vermilion Resources Ltd. and Clear Energy Inc. The Company began a highly successful transformation in late 2010 from being predominantly a gas producer (87% gas) to an oil producer, currently producing 62% oil and liquids. The Company currently has production capacity of 900 to 950 barrels of oil and liquids per day, with 3 million cubic feet per day of natural gas. Sure Energy has material exposure to a Viking light oil resource play at Redwater, Alta. and has also had recent success finding light oil in Queensdale, SE Saskatchewan. In early 2011 the Company also established a new core area at Virginia Hills, Alta., where it will target light oil in the Viking and Beaverhill Lake formations. Competitive Strengths
Cash Flow
16000 14000
Dollars (C$000’s)
12000 10000 8000 6000 4000 2000 0
16000
2006 2007 2008 2009 2010 2011 Year
Average Daily Production
Recent Growth
14000 Gas
12000
Oil & Liquids
Boe/d
10000 8000 6000 4000 2000 0
The Company has a strong exploration bias to its development strategy. It focuses on identifying opportunities early in their development, allowing it to gain low-cost entry to projects. As an example, the Company had identified the potential for horizontal drilling upside in the Viking at Redwater prior to any of the recent horizontal development. It therefore was able to establish a land position for about $100,000 per section as compared to over $1 million per section paid by competitors on the trend last year. At Virginia Hills the Company has identified an area of Viking resource potential that may benefit from horizontal drilling and fracking. The Company will be the first to drill a horizontal Viking well in the area to test this concept.
2007
2008
2009 Year
2010
2011
Operations
The Company grew its oil and liquids production from 236 barrels per day to 611 barrels per day in 2011 as it consolidated its transition from a gas producer to an oil producer. The result of the increase in oil and liquids production was a doubling of cash flow from $6.3 million in 2010 to $13.4 million in 2011. The Company has experienced consistent oil and liquids reserve growth since it made the decision to switch its focus to an oil weighted producer with the purchase of a private company in 2009. Oil and liquids reserves have increased from 191,000 barrels at the end of 2008 to 4,300,000 at the end of 2011.
DIRECTORS Jeffrey S. Boyce Chairman and Chief Executive Officer, Sure Energy Inc. W. Peter Comber Managing Director, Barrantagh Investment Management Inc. Larry J. Macdonald Chairman and Chief Executive Officer, Point Energy Ltd. Thomas P. Stan President and Chief Executive Officer, Foundation Oil and Gas
OFFICERS Jeffrey S. Boyce Chairman and Chief Executive Officer Chris Baker President, Chief Operating Officer and Vice President, Exploration Lance Wirth Vice President, Finance and Chief Financial Officer C. Tom Banks Vice President, Engineering Rob Sheedy Vice President, Land Dale Kuzyk Vice President, Production Daniel G. Kolibar Corporate Secretary
HEAD OFFICE 1100, 606 4th Street SW Calgary, Alberta T2P 1T1 T: (403) 410-3100 F: (403) 410-3111 E: info@sureenergyinc.com www.sureenergyinc.com
CONTACT
Financial
Production (62% oil & liquids)
1,440 boe/d
Current share price
$0.90 - $0.95
Proved + probable reserves (Dec 31, 2011)
5,924 Mboe
Shares outstanding (basic)
60,580,630
Undeveloped land (net acres)
114,799
Market capitalization
$56.3 MM
Chris Baker President, Chief Operating Officer and Vice President, Exploration T: (403) 410-3105 Spring 2012 – SEPAC INVESTOR SHOWCASE 21
CORPORATE PROFILE
TSX:SGY Surge is an oil-focused exploration and production company with operations throughout western Canada and the Williston Basin. Since its inception on Apr. 13, 2010, Surge has achieved significant growth in production, reserves and cash flow per share. In less than two years, the company has positioned itself in three core areas, assembled more than 490 (350 net) oil drilling locations, gained exposure to an internally estimated discovered petroleum initially in place1 of more than 440 gross (360 net) million barrels of oil, tripled the size of our bank line, and increased average daily trading liquidity.
Executive Dan O’Neil President, Chief Executive Officer & Director Dan Brown Chief Operating Officer Max Lof Chief Financial Officer Kevin Angus Vice-President, Exploration Malcolm Adams Vice-President, Corporate Development Margaret Elekes Vice-President, Land Tee Ong Vice-President, Engineering
Directors Paul Colborne, Chairman President, StarValley Oil & Gas Ltd. Peter Bannister President, Destiny Energy Inc. Rob Leach President, International Fitness Holdings Keith Macdonald President, Bamako Investment Management James Pasieka Partner, Heenan Blaikie LLP Murray Smith Member, Energy Advisory Board of TD Securities Colin Davies Independent Director
The company is currently focused on drilling at its three core areas. Surge has more than 229 net unbooked horizontal drilling locations to pursue, which has the potential to add more than $460 million2 of value (or almost $6 per fully diluted share) and add more than 25 million barrels of light oil reserves. Total capital required to achieve this value is approximately $440 million, which is less than three times our annualized exit cash flow for 20123. Long-term growth initiatives include oil-focused exploration and tight oil waterfloods. The company’s tight oil waterflood opportunities have the potential to increase the value of Surge by more than $250 million (or more than $3.20 per fully diluted share) and add more than 30 million barrels of light oil reserves based on successful implementation. Based on the company’s current net asset value, unbooked drilling inventory and unbooked waterflood upside, Surge has the potential to more than triple the company’s oil reserves and double the net asset value going forward from approximately $9 to more than $18 per fully diluted share. Surge is committed to delivering top quartile corporate performance and creating value for shareholders by continuing to grow reserves, cash flow and production on a per share basis. Surge is forecasting a 2012 exit production rate of 11,000 boe/d (77 per cent oil and NGLs). Surge is forecasting an annualized 2012 exit fund from operations forecast at $166 million4 ($2.34 per share) and a debt-to-cash flow ratio5 of less than one times. Surge is on track to meet or exceed its 2012 production guidance. Leading capital efficiencies among oil weighted peer group: • 2011 proved-plus-probable finding and development of $14.02 barrels of oil equivalent (including change in future development capital), recycle ratio of 2:7 • Proven growth-focused management team • Three high-performing asset teams, each
capable of managing 10,000 barrels of oil equivalent per day • Potential to more than triple oil reserves within cash flow • E xposure to more than 56 million barrels of light oil upside from primary and secondary development in addition to its current oil reserves of 23 million barrels
Corporate Partners Bankers
Legal Counsel
National Bank of Canada • Bank of Nova Scotia • Canadian Imperial Bank of Commerce • ATB Financial
•
•
Auditor •
KPMG LLP
Heenan Blaikie LLP
Evaluation Engineers •
S proule Associates Limited
Investor Contacts
Dan O’Neil, President & CEO • Max Lof, CFO •
Head Office 2100, 635 - 8th Avenue SW Calgary, AB T2P 3M3 T: 403.930.1010 F: 403.930.1011 www.surgeenergy.ca
22 SEPAC INVESTOR SHOWCASE – Spring 2012
1 “Discovered Resources” or “Discovered Petroleum Initially-In-Place” (“DPIIP”), are those quantities of petroleum estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially-in-place includes production, reserves and contingent resources; the remainder is unrecoverable. “Contingent resources” are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as Contingent Resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. There is no certainty that it will be commercially viable to produce any portion of the Contingent Resources. A recovery project cannot be defined for this volume of DPIIP at this time, and as such it cannot be further sub-categorized. 2 Assumes all wells are drilled immediately and based on November 1st, 2011 strip pricing (Year 1: CDN$88.90/bbl Edm. Par/US$92.34/bbl WTI; CDN$3.56/ GJ AECO/$US 4.16/mmbtu NYMEX; CDN$/US$ exchange rate of $1.001). 3 Based on a forecast 2012 annualized exit funds from operations of $166 million. 4 Based on US$105.00/bbl WTI, $2.95/GJ AECO, US$/CDN$ exchange rate of $1.00. 5 Based on a 2012 forecast year-end net debt of $144 million and forecast 2012 annualized exit funds from operations of $166 million.
CORPORATE PROFILE
TSX:TET Trilogy’s geographically concentrated assets are primarily low-risk, high working interest, lowerdecline properties that provide abundant infill drilling opportunities and good access to infrastructure and processing facilities, many of which are operated and controlled by Trilogy. Advances made in horizontal drilling and completion techniques have provided Trilogy with the opportunity to confidently exploit additional tight gas reservoirs on its acreage at attractive finding and development costs. Trilogy plans to continue its strategy of capitalizing on its core assets, focusing on tight gas reservoirs where horizontal technology can be used to add low cost reserves and grow production efficiently. Since converting from a trust to a growth oriented energy corporation in 2010, Trilogy is anticipating that its production will increase from 19,780 Boe/d in 2009 to an estimated 40,000 Boe/d in 2012. The recent development of the Montney oil and gas pools in Kaybob has increased crude oil and NGL's production from 21 per cent of the total production in 2009 to approximately 45 per cent of 2012 production. Continued success should see oil and NGL production increase to 50 per cent of annual production.
Officers J. H. T. Riddell Chief Executive Officer
2012 Annual Guidance Production: 40,000 Boe/d Operating cost: $7.00/Boe Capital expenditures: $300 MM
J. B. Williams President and Chief Operating Officer
2011 Results
M. G. Kohut Chief Financial Officer
Geological and Geophysical
G. L. Yester General Counsel and Corporate Secretary
Production Equipment and Facilities and Inventory
DIRECTORS C. H. Riddell J. H. T. Riddell M. H. Dilger D. A. Garner W. A. Gobert R. M. MacDonald E. M. Shier D. F. Textor
Land
$38.1 MM $1.0 MM
Drilling and Completion
$225.7 MM $87.0 MM
Net Dispositions
($1.9 MM)
Total 2011 Capital Expenditures
$349.9 MM
2011 Major Facilities and Montney Land Costs
($81.9 MM)
Total Capital Expenditures (excl. major facility and Montney land costs)
Reserves
$268.0 MM
Proved
Reserve Additional (MMBoe) Technical Revisions and Economic Factors (MMBoe) Total 2011 Reserve Additions (MMBoe) Future Development Capital ($ MM)
P+P
16.0
20.1
3.4
0.5
19.4
20.6
9.1
5.1
F&D Costs ($/Boe, excl. major facility and Montney land costs)
$14.29
$13.25
F&D Costs ($/Boe, incl. major facility and Montney land costs)
$18.52
$17.23
$15.05
$14.25
HEAD OFFICE
Three-Year Average F&D Costs
1400, 332 – 6th Avenue SW Calgary, Alta. T2P 0B2 T: (403) 290-2900 F: (403) 263-8915 www.trilogyenergy.com
($/Boe, incl. major facility and Montney land costs)
Production
Operating Income
12% 31%
14%
10%
58% 76%
CONTACT J. H. T. (Jim) Riddell Chief Executive Officer J. B. (John) Williams President and Chief Operating Officer M. G. (Mike) Kohut Chief Financial Officer T: (403) 290-2900 F: (403) 263-8915
Natural Gas:
138 MMcf/d
Natural Gas:
Oil:
12,500 Bbl/d
Oil:
NGL:
4,500 Bbl/d 40,000 Boe/d
NGL:
$40.7 MM $327.1 MM $60.9 MM $428.8 MM
Please refer to the "Forward-looking Statement Advisory" located in Trilogy's 2011 Annual Report.
Spring 2012 – SEPAC INVESTOR SHOWCASE 23
CORPORATE PROFILE
TSX-V:TUS
May 2012 MANAGEMENT Robert W. Lamond President & C.E.O. Donald K. Clark Vice President Operations & C.O.O. Brad R. Perry C.F.O. Marshall Kis Vice President Development Geology
Focused on Heavy Oil in the Lloydminster Region
BOARD OF DIRECTORS Robert W. Lamond David Bennington Donald K. Clark Roger W. Hume John G.F. McLeod Glen Phillips Jack Steinhauser Charles A. Teare CORPORATE STRUCTURE (December 31 2011 ) OS Shares 124 million Management’s holdings ~36.4% Working capital deficit: ($0.4) million Investment in MHR: $2.3 million Available bank line: $4.6 million Available capital: $6.5 million
No debt, Q4-11 revenue 98% from oil
Ongoing Exploration of 11 Prospects
Active Development Program in 2012
50+ Drilling Locations at Macklin & Evesham
Production
Cash Flow 2.0
Photo: development drilling at Macklin, March 2012
Quarterly Cash Flow, $ Millions
Average Production, BOEPD
400
300
200
100
Q1
Q2
Q3
2011
24 SEPAC INVESTOR SHOWCASE – Spring 2012
Q4
1.5
1.0
0.5
Q1
Q2
Q3
2011
Q4
CORPORATE PROFILE
TSX:TBE Twin Butte Energy Ltd. is a dividend-paying, moderate growth, oilweighted, intermediate production company with its core operations in the Lloydminster heavy oil fairway. With a focus on a sustainable dividend payout, the company has targeted a total payout ratio of 100%, where the total dividend payments plus capital requirements to moderately grow production is equal to cash flow. Twin Butte pays a monthly dividend of $0.015 or $0.18 annually. Current production is approximately 13,800 boe/d weighted 71% to heavy oil, 9% to light oil and liquids and 20% to natural gas.
Sustainable Dividend Yield Plus Moderate Production Growth
MANAGEMENT Jim Saunders President & CEO Alan Steele Vice President, Finance & CFO
Subsequent to the acquisition of Emerge Oil & Gas Inc. in January 2012, Twin Butte converted to a dividend paying moderate growth model. We believe the dividend of $0.18 annually (equates to approximately a 6.9% yield at $2.60 share price), which when added to expected growth of 3-5% provides an attractive return to investors.
Bruce Hall Chief Operating Officer (C.O.O.)
Twin Butte’s core operating area focuses on conventional heavy oil in a fairway all within one hour’s drive of Lloydminster on both sides of the Alberta–Saskatchewan border. This fairway accounts for about 75% of the company’s current 13,800 barrels of oil equivalent production. The Company has a current inventory of over 500 net wells from which to draw upon for their drilling programs and continues to enhance this inventory through land additions, seismic and an acquisition strategy.
Neil Cathcart Vice President, Exploration
The heavy oil wells provide excellent capital efficiency of $11,500/boed, rates of return of over 200% with payouts of under a year, which allows the company to grow production moderately while spending approximately 65% of cash flow. The Company operates with a disciplined approach to the allocation of its capital resources while maintaining a conservative financial structure through the relatively lower debt levels and a strong hedging program that supports the cash flow in a fluctuating commodity price environment.
Twin Butte Attributes
• Tax pools of approximately $560MM
• Oil leveraged with oil & NGL’s comprising 80%
• Sustainable $0.18 annual dividend (paid monthly $0.015 per month)
of production and 65% of reserves • 13,800 boe/d (71% heavy oil, 9% light oil & NGL’s and 20% natural gas) • P+P RLI of 9.6 years; 7.8 years on liquids • Strong hedging position providing excellent cash flow support • Balance sheet strength with under $130MM net
• Heavy oil inventory of over 500 net wells pro-
Claude Gamache Vice President, Heavy Oil Geosciences Preston Kraft Vice President, Engineering Colin Ogilvy Vice President, Land
BOARD OF DIRECTORS David Fitzpatrick Jim Brown John Brussa Tom Greschner Jim Saunders Warren Steckley Bill Trickett
HEAD OFFICE
viding low risk, high IRR, high capital efficiency
410, 396 – 11th Ave. S.W.
drilling inventory
Calgary, Alberta T2R 0C5
• Net undeveloped lands of 230,000 acres with a
T: (403) 215-2045
drilling inventory of 115 light oil wells, and 280
F: (403) 215-2055
gas well inventory • Experienced and disciplined management team
debt on a $205MM bank line
Bob Bowman Vice President, Operations
www.twinbutteenergy.com
CONTACT INFORMATION Jim Saunders President & CEO
Heavy Oil Economics WTI (US$)
$80.00
$90.00
$100.00
(403) 215-2040
Wellhead (C$)
$54.00
$62.00
$70.00
jsaunders@twinbutteenergy.com
Royalty
$11.88
$13.64
$15.40
Operating Cost
$17.00
$17.00
$17.00
Alan Steele Vice President, Finance & CFO
Netback
$25.12
$31.36
$37.60
Recycle Ratio*
2.6
3.2
3.9
*Based on average well cost of $515,000, 53mboe (9.72/boe)
(403) 215-2692 asteele@twinbutteenergy.com
Spring 2012 – SEPAC INVESTOR SHOWCASE 25
CORPORATE PROFILE
TSX:VRO Production growth on Cardium Assets
Cardium Oil Play
80
3,500
Cardium vertical oil wells Boe/day
Cardium Hz wells
New pure play Vero, 2 rig drilling program accelerates growth to greater than 65% year-over-year
Cardium shorelines Vero Cardium land
Net Well Count
3,000
Trading Symbol: TSX-VRO
70
60
Corporate Snapshot Current production (70% oil & liquids): ~2500 boed Bank line: $65 mm Total debt: $0 mm Shares outstanding (basic/FD): 49.0 mm/53.4 mm Avg daily shares traded ’12: 638,000
Edmonton
40
og
ra
m
Start of Hz Cardium drilling
Pr
30
ig
ALBERTA
1,500
1R
Daily Production (boed)
50 2,000
Net Hz Cardium Well Count
2,500
1000 20
Sh
Cardium Operations Overview
Calgary
el
or in re eT
Target depth 1,600m – 1,900m • Hz length 1,300m – 1,400m • Typical completion is 17-18 fracs
500
nd
Increased oil & liquids weighting from 28% to 70% between Q4 2009 and Q1 2012
s
m Pe bi na
0
0
Drilled on play to date: 46 (35.4 net)
10
2009 Q3
Q4
2010 Q1
Q2
Q3
Q4 2011 Q1
Q2
Q3
Q4 2012e 2012 exit
• 174 gross (111 net) sections • Typical well qualifies for 5% royalty for 70 mboe or 30 months • Teams have worked this area extensively for past 6 years, drilling over 100 multistage frac Hz wells
Vero Energy Inc. is a Calgary based, growth oriented company engaged in the exploration, development and production of oil and liquids in Western Canada. Since its inception in November of 2005, Vero has achieved significant growth in production and production per share, cash flow and cash flow per share, reserves and reserves per share. Vero is committed to growing mainly through the drill bit, but also explores prudent acquisition opportunities that are a strategic fit. From November 2005 to December 2011 Vero’s Management Team grew the company from 980 to 9,200 boed, 80% of which was achieved through drilling. During those 6 years, Vero’s production increased 844% (260% per share) and its reserves increased 888% (296% per share). On January 31, 2012 Vero closed a strategic deal divesting itself of the majority of its natural gas assets, which transformed the company into a pure play Cardium light oil producer focused on the Cardium light oil play in Western Canada. Vero’s strategy is focused on adding inventory in light oil resource plays while capitalizing on its team’s expertise in drilling and completing horizontal multi-stage frac wells.
Management
2012 Forecast
Doug Bartole, P.Eng President & CEO, Director Kevin Yakiwchuk, M.Sc., P. Geol Vice President, Exploration Bob Bachynski, P.Land Senior Vice President, Land Gerry Gilewicz, C.M.A Vice President, Finance & CFO Shane Manchester, P.Eng Vice President, Operations
Exploration and development capital (mm) $62.5 Acquisitions in Q1 (mm) $5.9 Well count (net) 28-30 (16-17) Production (boed) (70% oil and liquids) 2,500 – 2,700 Exit production (boed) (70% oil and liquids) 3,000 – 3,300 Cash flow (mm) $41.1 – $44.3 Per share ($/sh) $0.84 – $0.90 Exit debt (mm) $26 – $29 Exit debt/Q4 annualized cash flow 0.5 – 0.6 x 2012 Gas price ($/mcf AECO) 2.20 2012 Canadian WTI oil price ($/bbl CDN) 101.50
• 2011: 19 (13.9 net) wells • 2012 drilling plans: 28-30 (16-17 net) wells • Q1: 8(6.9 net) wells drilled
Drilling inventory • 220 (123 net) identified Hz locations • 176 (99 net) are unbooked
Land
Contact Information 900, 520 - 3rd Ave SW Calgary, Alberta T2P 0R3 T: 403.218.2063 F: 403.218.2064 Toll Free: 1.866.709.VERO (8376) E: general.info@veroenergy.ca www.veroenergy.ca 26 SEPAC INVESTOR SHOWCASE – Spring 2012
Net Asset Value (NAV) of Retained Assts Combined (mboe)
NPV 10% BT (1) ($mm)
PDP
2,722
74.1
Total proved
4,545
95.8
Total proved plus probable
9,019
Land value (2)
151.8 $28.9mm
$3.70/share Reserves evaluated by Sproule Associates Ltd. as at Dec 31, 2011 and including FDC (1) Using forecast prices in 2011 year end Independent Reserve Evaluation Report (2) Evaluated by Seaton Jordon as at December 31, 2011
2011 Reserve summary
2012 Reserve adds to date
• • • •
• Q1 drills included 5 (3.9 net) unbooked locations • Q1 activity potentially added an additional 10.1 net bookable undeveloped locations
Proved reserves increased by 32% Proved plus probable reserves increased by 38% Proved plus probable reserves 63% oil and liquids 44 (23.8 net) undeveloped Cardium Hz oil wells booked • RLI 15.3 years based on Q4 2011 production
CORPORATE PROFILE
TSX-V:YO
SHORT TO MEDIUM TERM PLAN
2011 Year of Discovery Tested three unconventional plays - all successful • Duvernay - Kaybob, AB • Montney - Nig, BC • Jean Marie - Mike, BC
2012 Year of Delineation • •
KAYBOB DUVERNAY Play Summary
•
• The Duvernay contains liquids rich natural gas with liquids rates from 100 to 150 barrels per mmcf (approximately 65% condensate). • The prize varies from 100 to 120 bcf per section of raw gas in place in the thick part of the trend where Yoho lands are located. • Estimated per well recovery of 3.7 bcf and a half a million barrels of liquids. • Development of this resource would require six to eight wells per section, utilizing multi-stage, slick water fracturing techniques. • Once pad drilling development is initiated, all in well costs are expected to be $10.0 million or below per well. • These wells benefit from a 5% crown royalty for the first five years.
•
Drill delineation wells on two plays Four to five wells per play - spaced over the lands Focus on Duvernay and Montney liquid rich gas plays Quantitatively evaluate resource
2013 Initial Year of Development • • • •
Initiate pad drilling Reduce costs Increase efficiencies Ramp up production and subsequent cash flow
MANAGEMENT Brian McLachlan, President and CEO Clark Drader, VP Land Barry Stobo, VP Engineering and COO Wendy Woolsey, VP Finance and CFO
BOARD OF DIRECTORS
NIG MONTNEY Play Summary
• The Montney contains liquids rich natural gas, with expected yields to be 30 to 40 barrels per mmcf of natural gas. • The prize over Yoho lands is estimated to be 40 to 50 bcf of raw gas in place per section. • Estimated per well recoverable reserves are forecasted to be 3.4 bcf and 90 mstb. • We would develop this resource with four horizontal wells per section utlizing multi-staged facs in the horizontal section. • We expect that under full development with pad drilling we can reduce cost to the $5.0 million per well range. • All Yoho’s drilling activity so far have been upper Montney. We believe the lower Montney has excellent potential as well.
Bruce Allford John Brussa Peter Kurceba Brian McLachlan Kevin Olson Gary Perron Terry Svarich, Chairman
CONTACT INFORMATION Suite 500, 521 - Third Avenue S.W. Calgary, Alberta T2P 3T7 Phone: 403.537.1771 | Fax: 403.537.1775 Email: info@yohoresources.ca www.yohoresources.ca TSX-V:YO
Spring 2012 – SEPAC INVESTOR SHOWCASE 27
INDUSTRY LEADER
IN WELL SERVICING for 30 years
“Performance Excellence – Second to None” Fleet of 99 service rigs inclusive of: • Mobile Singles • Mobile Doubles
• Skidded Doubles
• Slant rigs
GRANDE PRAIRIE • NISKU • RED DEER • BROOKS • ARDMORE • LLOYDMINSTER • ESTEVAN www.ensignenergy.com
Calgary sales 403.265.6361
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