sepac investor showcase november 2012
DESCRIPTION
Investing opportunities with a select group of Canada’s most dynamic junior and mid-cap oil & gas producers.TRANSCRIPT
OIL & GAS
INVESTOR SHOWCASE
Wednesday, November 21, 2012 | 9:00 am – 4:00 pmThe Metropolitan Conference Centre, 333 – 4th Avenue SW, Calgary
FREE ADMISSION | OPEN TO THE PUBLIC | NO REGISTRATION
Investing opportunities with a select group of Canada’s most dynamic junior and mid-cap oil & gas producers
1060-717 7 avenue sWCalgary, alberta t2p 0Z3
p: 403.269.3454F: 403.269.3636
SMALL EXPLORERS AND PRODUCERS ASSOCIATION OF CANADAwww.sepac.ca
Canada’s oil & gasentrepreneurs™
on BehaLF oF the Board of Governors and members of SEPAC, Canada’s Oil
and Gas Entrepreneurs™, I invite you to attend our Oil & Gas Investor Showcase
on Wednesday, November 21, 2012. The Investor Showcase provides a great
opportunity for investors, fund managers, analysts and the media to gain insight
from the CEOs of Canada’s leading junior and mid-cap oil and gas producers.
SEPAC is delighted to have the support of our Event Sponsor, KPMG, as well
as all our valued sponsors who help us produce this key event on Calgary’s
business calendar.
We will start the showcase with a keynote presentation by Mr. Lauchlan
Currie, president of ARC Financial Corp. Mr. Currie will explore the theme of
entrepreneurship in the Canadian oil and gas industry, and changes in the business.
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 Metropolitan Conference Centre on Wednesday,
November 21st.
Sincerely,
Gary C. Leach
Executive Director
SEPAC, Canada’s Oil and Gas Entrepreneurs™
Tank hauling and picker service.
Oil Tanks forsale rentor
403.613.7134 | 403.852.0966
CALROC Industries, Lloydminster, ABwww.calrocindustries.com
Tank hauling and picker service.
Oil Tanks forsale rentor
403.613.7134 | 403.852.0966
CALROC Industries, Lloydminster, ABwww.calrocindustries.com
Welcome Letter . . . . . . . . . . . . 3
Introduction and Session Sponsors . . . . . . . . . . . . . . 6 & 7
Pro� lesBirchcliff Energy Ltd. . . . . . . . . . . . . . . 10
Cequence Energy Ltd. . . . . . . . . . . . . . . 11
Crown Point Energy Inc.. . . . . . . . . . . . . 12
DualEx Energy International Inc. . . . . . . . . 13
Hyperion Exploration Corp. . . . . . . . . . . 14
Invicta Energy Corp. . . . . . . . . . . . . . . 15
LGX Oil + Gas Inc. . . . . . . . . . . . . . . . . 16
Long Run Exploration Ltd. . . . . . . . . . . . 17
Manitok Energy Inc.. . . . . . . . . . . . . . . 18
Palliser Oil & Gas Corporation . . . . . . . . . 19
Petromanas Energy Inc.. . . . . . . . . . . . . 20
Peyto Exploration & Development Corp . . . . 21
Pine Cliff Energy Ltd. . . . . . . . . . . . . . . 22
Surge Energy Inc. . . . . . . . . . . . . . . . . 23
Tuscany Energy Ltd. . . . . . . . . . . . . . . . 24
Executive Director Gary Leach
Event & Communications Director Michelle Chidley
Offi ce ManagerDana Robertson
1060-717 7 Avenue SWCalgary, Alberta T2P 0Z3Phone: (403) 269-3454Fax: (403) 269-3636
ContentsTable of
Fall 2012 SEPAC Oil & Gas Investor Showcase publication was produced by SEPAC and JuneWarren-Nickle's Energy Group
JUNEWARREN-NICKLE’S ENERGY GROUPPresident & CEO Bill Whitelaw
Editor, Special Projects Rianne Stewart
Editorial Assistance Janis Carlson de Boer, Brandi Haugen
Graphic Designer Paige Pennifold
Ad Traffi c Coordinator Denise MacKay
Senior Account Executive Diana Signorile
OFFICESCalgary2nd Flr-816 55 Avenue NECalgary, AB T2E 6Y4Tel: (403) 209-3500 Fax: (403) 245-8666Toll-free: 1-800-387-2446
Edmonton220-9303 34 Avenue NWEdmonton, AB T6E 5W8Tel: (780) 944-9333 Fax: (780) 944-9500Toll-free: 1-800-563-2946
SEPAC, Canada’s Oil and Gas Entrepreneurs™, advocates on behalf of its member companies for sound government policy that promotes a thriving independent oil and gas sector.
SEPAC was founded in 1986 as the Small Explorers and Producers Association of Canada. Today the Association represents a wide spectrum of independent oil and gas companies ranging from start-ups to junior and mid-sized producers operating in Canada, the United States and around the world.
SEPAC’s core Producer Members are supported by a strong contingent of Associate Member companies supplying technology, products and services to the upstream oil and gas industry.
About SEPACOur Association’s mission is to:
ADVOCATE to governments, policy makers and regulators to ensure that the interests of our members are reflected in a fiscal and regulatory framework that encourages investment and supports a prosperous oil and gas industry;
COMMUNICATE essential industry news, events and information to our members and communicate our Association’s views and perspectives to the public, community leaders and media; and
EDUCATE Canadians about the important contribution the junior and mid-sized oil and gas producers make to ensure Canada’s present and future energy needs are met while creating jobs and investment in the communities where our members operate.
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 5
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, or contact Richard Peters at [email protected].
Vancouver l Calgary l Toronto |Ottawa l Montréal l Hong Kong | mcmillan.ca
introduction and session sponsors
shoWCase highLightsThe SEPAC Oil & Gas Investor Showcase
offers a unique setting for investors to get
immediate, fi rst-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,
industry analysts, oil and gas executives,
and media.
If you have attended the Investor Showcase
in the past, please note that the location
has changed. Please join us across the
street from the Westin at the Metropolitan
Conference Centre. With the change in
venue, you will notice some differences
in how the event is formatted. We will be
utilizing both the main and +15 levels of
Mr. Currie holds an M.B.A. from
Queen’s University and a B.Sc. in Geology
from the University of Calgary, and he
is a designated P.Geol. in Alberta. His
community involvement includes: past
chairman of the Board of the Glenbow
Museum, former Oil & Gas Section
chairman of the United Way, past
Fundraiser of the Year for the Calgary
Homeless Foundation and member of
the 2012 Advisory Council of The Calgary
Stampede.
Mr. Currie’s keynote speech will kick
off the Investor Showcase program in
the Ballroom at 9:00am. Join us for
his presentation “Entrepreneurism in
Canadian oil and gas, and the changes in
our business.”
the Metropolitan Centre, and introducing
refreshment breaks to the schedule in the
morning and afternoon.
Keynote speaKerSEPAC is pleased to have Mr. Lauchlan
J. Currie, president of ARC Financial
Corp., deliver the keynote presentation.
Lauchlan is responsible for ARC’s
investment activities where he leads the
team responsible for managing existing
fund investments, and identifying and
developing new investment opportunities.
He is a member of ARC’s Executive,
Investment and Strategy committees.
Lauchlan currently represents ARC on
the board of Capio Exploration Ltd. and
Tangle Creek Energy Ltd.
6 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
At BDO we believe a greater understanding of our clients’ challenges and opportunities yields stronger insights and better results.
A PARTNER WHO’S NOT AFRAID TO DIG A LITTLE DEEPER.Experience working closely with oil and gas clients in Canada and across the globe has given us the knowledge and experience you can count on.
BDO. MORE THAN YOU THINK.
Assurance | Accounting | Tax | Advisory
620 - 903 8th Ave SW Calgary AB www.bdo.ca
© 2012 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. 2158-01 1012
www.pwc.com/ca/energy
Set to growWe’ll work with you to develop a strategy for sustainable growth
Contact: Alisa Sorochan
403 509 6642
Corporate presentationsThe corporate presentations will all
take place on the main level of the
Metropolitan Conference Centre in
the Ballroom and Lecture Theatre.
Each company at the Showcase will
give a 25-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.
Visit the Investor Showcase page on our
website (www.sepac.ca) to view the
presentation schedule.
presenting Company BoothsThe companies presenting in the Investor
Showcase will have booths set up in the
Strand-Tivoli Room on the +15 level of
the Metropolitan Conference Centre. We
welcome you to visit this room throughout
the day to meet representatives from
the presenting companies, and pick up
quarterly and annual reports, and other
timely investor-related information.
Also in the Strand-Tivoli Room you will
find refreshments, compliments of our
generous sponsors.
sponsor BoothsSpread throughout the venue, 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, and
who have made this event possible.
WeBCast presentationsWith concurrent sessions running
throughout the day it is impossible to take
in every presentation. To ensure that you
don’t miss out, we will be webcasting all the
presentations from the Investor Showcase.
Audio and slides from the keynote
presentation and presenting company
sessions will be posted to the SEPAC website
by 2:00 pm on November 26, and remain live
for a couple of months. Visit www.sepac.ca
for a link to the webcast page.
Introduction and Session Sponsors
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 7
• Mobile Singles • Mobile Doubles • Skidded Doubles • Slant rigs • Mobile Singles • Mobile Doubles • Skidded Doubles • Slant rigs
GRANDE PRAIRIE • NISKU • RED DEER • BROOKS • ARDMORE • LLOYDMINSTER • ESTEVANwww.ensignenergy.com Calgary sales 403.265.6361
INDUSTRY LEADER IN WELL SERVICING
for 30 years
Fleet of 99 service rigs inclusive of:“Performance Excellence – Second to None”
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 House707, 7th Avenue S.W.Calgary, AB CanadaT2P 3H6
T 403 264-1197
F 403 264-1584
www.pajakeng.com
See the heart of the oilsands like you’ve never seen it before!
Visit the oilsands with the click of a button.
canadianoilsandsnavigator.com
Explore the Athabasca oilsands region using the new interactive Canadian Oilsands Navigator.
• Lease ownership
• Operating and upcoming project locations
• Operating project details
• Project development timelines
• Key performance indicators
• Company-specific capital expenditures
canadianoilsandsnavigator.com
After 10 years of providing Land and Environmental services After 10 years of providing Land and Environmental services throughout BC and Alberta, we have witnessed the evolution of the energy industry. Our company has taken great pride in itself on driving regulatory policy, cooperative project planning with our clients, and the active role we play within our community.
As we move into the next 10 years, we are excited to announce a new face for BV Land and Northern Rockies. As of October 1, 2012, BV Land Consulting Ltd. and Northern Rockies Environmental Services Ltd. will be combined under our new name: BV Land Corp.
With continued service from our Fort St. John and Calgary offices, we look forward to the new opportunities and challenges the next decade will bring and are eager to share in them with our new and existing clients as well as all the folks we have met along the way.
Corporate Office: 9807-100th Avenue Fort St. John, BC V1J 1Y4 Office: 1-250-785-6340 Fax: 1-250-785-6351 Ft. St. John: 1-250-261-1802
Calgary Office:Suite 203A708-11th Avenue SWCalgary, AB T2R 0E4 Office: 1-403-718-9587 Calgary Cell: 1-403-860-9634
Email: [email protected] Website: www.bvland.com
Calgary and Houston based OPS Atlas Inc. is internationally accredited by NEBOSH through OPS Consultancy & Training (UK) to conduct Occupational Health & Safety Training and hold examinations for:
• International General Certificate
• International Oil & Gas Certificate
• International Construction Certificate
www.opsatlas.com
2010 Average Production 13,079 boe/day 2011 Average Production 18,136 boe/day Q2 2012 Average Production 22,039 boe/day Estimated Current Production 25,500+ boe/day 2012 Estimated Exit Production 26,000 boe/day
75% Natural Gas, 25% Light Oil
Operating Costs per BOE 08|$10.41 – 09|$8.89 – 10|$7.70 – 11|$6.75 – 12 – Q1|$6.17 – 12 – Q2|$6.22 2012 Q2 Cash Flow $26 Million 2012 Q2 Earnings $0.4 Million 2011 Capital Expenditure Program $237.4 Million 2012 Capital Expenditure Program $292 Million Debt Pro Forma June 30, 2012 $353 Million Total Credit Facilities $540 Million Undeveloped Land (Acres) 552,355 Gross (514,814 Net) 2011 Finding & Development Costs (P+P) $2.88/BOE BFC – $12.01/BOE WFC December 31, 2011 AJM Reserves 275.4 Million BOE – 36 Year RLI (21,100 boe/d) Number of Common Shares 141.3 Million Preferred Shares 2 Million – BIR.PR.A Warrants, Aug 19, 2014 6 Million – $8.30 – BIR.WT Market Capitalization $1 Billion Enterprise Value $1.4 Billion
CORPORATE PROFILE
October 25,2012PEACE RIVER ARCH AREA OF ALBERTACORPORATE SUMMARY
2012 CapitaL BUDget: $292.2 miLLion2012 CAPITAL BUDGET GROSS NET NET CAPITAL WELLS WELLS $(MILLIONS)Drilling & Development Basal Doig/Upper Montney HZ Gas Wells 3.0 3.0 $27.2 Middle/Lower Montney HZ Gas Wells 17.0 17.0 $122.1 Other Gas Wells 0.0 0.0 $1.9 Worsley Charlie Lake HZ Oil Wells 11.0 11.0 $34.8 Worsley Charlie Lake Vertical Oil Wells 0.0 0.0 $0.7 Other Oil Wells 1.0 0.03 $0.2 Disposal Well 0.0 0.0 $1.0
TOTAL DRILLING & DEVELOPMENT 32.0 31.03 $187.9Facilities $67.7Production Optimization $23.7Land, Seismic & Other $12.9 TOTAL NET CAPITAL $292.2
strategy: groWth By the DriLL Bit High working interest, operated production, low operating costs, surrounded by a large,
undeveloped land base where BIR has ownership control or access to infrastructure.
Keys to sUCCess 93% average working interest in undeveloped land 95% of production is operated 99% of new drilling and completions, initiated and controlled by BIR
WorsLey Light oiL resoUrCe pLay – CharLie LaKe• Essentially 100% WI, light oil, operated, pipelined to controlled infrastructure.• AJM estimates ~ 363 million BOE of light oil in place. All about water� ood recovery
factor, extension of pool, reduction of operating costs.• Immediate plans include: Extension of light oil pool to the north & south, recompletion
opportunities, drilling in� ll development opportunities, expansion of water� ood and application of horizontal drilling.
• 2012 – Continue to drill, 11 horizontal wells, utilizing multistage fracture stimulation technology and 5 vertical wells.
• $2.5M to drill case, complete and equip each horizontal well, IP rates of up to 500 BOE/day, ultimate recovery 220,000 boe.
other resoUrCe pLay LanD – Birchcliff holds:• 126,560 (125,715 net) acres on the Duvernay Resource play, 99% working interest• 460,480 (394,461 net) acres on the Nordegg Resource play, 85% working interest• 422,880 (414,696 net) acres on the Banff/Exshaw Resource play, 98% working interest
montney/Doig natUraL gas resoUrCe pLay
• High Initial Deliverability | Steep Initial Decline | Low Terminal Decline | Stable Long Term Production.
• Large areal extent, thick gross stratigraphic interval average 1,000 ft with varying rock quality.
• From November 2007, drilled and cased 90 (78.2 net) Montney/Doig horizontal natural gas wells and signi� cantly built out infrastructure.
• Each horizontal well costs approximately $5.8 million to drill, case, complete and tie in. Type well IP rate 7.5 mmcf per day, averages 5.3 mmcf per day over � rst 30 days. For internal purposes, Birchcliff forcasts recovery of 6 BCFe per horizontal well.
• Drill minimum of 4 hz wells per section/play (competitors drill up to 8 wells/section)
• Birchcliff controls 494 net sections of either Montney or Doig rights. Only 25% of BIR Montney/Doig lands have proved plus probable reserve bookings
• >1,850 net potential horizontal natural gas locations, at 4 wells per section per play
• >$10 billion of drilling opportunities
• At Dec. 31, 2011, 227.6 mmboe (1.3 TCF + 8,216 mboe liquids) proved plus probable reserves booked on the Montney/Doig play, 122.2 net out of 494 net sections and 295.4 net future horizontal wells out of 1,850 net potential horizontal wells are in the AJM Evaluation. Increases expected over time from well performance, wells per section, reserves per well and ultimate recovery.
• Technology is changing quickly, costs are being reduced, reserve recovery increasing.
25,000
20,000
15,000
10,000
5,000
BOE Q1 Q1Q1Q2 Q2Q2Q3 Q3Q4 Q4
Birchcliff Boe per Day production
Corporate proFiLe
10 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX:BIR
MANAGEMENT
paul WanklynPresident & CEO
howard Crone, p.engExecutive Vice President & COO
David gillis, CaVice President, Finance & CFO
James r. Jackson, p.eng, CFaVice President, Engineering
David p. robinsonVice President, Geology
Christopher C. sobyVice President, Land
stephen r. stretchVice President, Geophysics
mike stewartVice President, Operations
erin thorson, CmaController
BOARD OF DIRECTORS
Daryl Gilbert
Don Archibald
Chairman
Peter Bannister
Paul Colborne
Robert C. Cook
Howard Crone
Brian Felesky
James K. Gray
Francesco Mele
Paul Wanklyn
HEAD OFFICE
3100, 525 - 8 Avenue SW
Calgary, Alberta T2P 1G1
T: 403-229-3050
F: 403-229-0603
W: www.cequence-energy.com
CONTACT INFORMATIONpaul Wanklyn
President & [email protected]
David gillis
VP, Finance and [email protected]
Cequence Energy Ltd. is a resource play–focused company with current production
of 9,000 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 � nancial strength provides � exibility to react to changing
market conditions and consolidation opportunities.
DEEP BASIN FOCUSEDCequence possesses the following critical elements, which we believe position the company for
continued success in the Deep Basin:
• A technical team with proven Deep Basin expertise;
• Multi-zone resource plays where operating synergies and stacked targets can reduce costs;
• Access to gathering and processing facilities to guarantee timely, cost-effective development;
• 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.
Key Data
Production - Current 9,000
Shares outstanding 192mm
Market cap. 325 million
Gas weighting 87%
Simonette has all the critical
elements required for a
substantial growth area.
Cequence has more than
165 net sections of land
with multi-zone potential
at Simonette and maintains
operatorship of the entire
block. Cequence’s recent
winter drilling program
focused on the Montney
reservoir at Simonette, and
results have exceeded
our expectations.
Corporate proFiLe
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 11
TSX:CQE
Corporate proFiLe
12 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX-V:CWV
Bouhajla Permit – Onshore Tunisia
Bouhajla North• Spudding of initial well expected in Q4 2012 / Q1
2013. Drilling contract has been awarded, waiting on rig (next in queue).
• Analogue fi eld, Sidi el Kilani (22 km to the South East) has produced 48 MMBO of 41˚ API light, sweet crude.
• DualEx maintains operatorship with 52.5% interest. Partner to fund initial $7.25M of seismic and drilling program.
Ktittir (KT) Expansion Block• Based on existing 2D seismic and legacy wells,
DualEx is targeting the El Gueria, Bireno and Abiod formations, all proli� c producing zones in Tunisia.
• 3D seismic and contingent well planned for 2013.
Additional Prospects• Additional prospects: Bouhajla Northeast,
Bouhajla Southeast, and Bouhajla KT1 and KT2, identi� ed on the block.
• Fully funded, drill ready prospect in tunisia-expected spud Q4 2012 / Q1 2013.
• Cash fl ow positive, zero debt.
• opportunity for signifi cant expansion of production and resource base
with prospects in tunisia.
• projects are close to infrastructure that has signifi cant takeaway capacity.
Penészlek Field, Northeast Hungary
• Two natural gas wells, including the recently drilled and completed PEN-105A, are producing 700 mcfe/d, net to DualEx.
• Current natural gas price in Hungary is over US$15/mcf, which generates approximately $300,000 in revenue per month.
MANAGEMENT & DIRECTORS
Garry HidesPresident, CEO, Director
Ken TompsonExecutive VP, COO, Director
Lorne MorozoffVP Finance & CFO
Abderrahim ChebbiGeneral Manager, Tunisia
David RainDirector
Roy HudsonDirector
John NelsonDirector
Bradley PorterDirector
CONTACT INFORMATION
200, 521 - 3rd Avenue SWCalgary, Alberta Canada T2P 3T3Phone: +1 (403) 265-8011 Fax: +1 (403) 265-8022www.dualexen.com
INVESTOR RELATIONS
Jeremy DietzThe Equicom GroupPhone: +1 (403) 218-2833
OriginalBouhajlaPermitArea: 416km2
BouhajlaKT1 & KT2
Bouhajla North3D Seismic SurveyFebruary–March, 2012
Bouhajla ExpansionApril 2012KT Block
Bouhajla Northeast
Bouhajla North
Bouhajla Southeast
Sidi el Kilani
Sebkhia de El Hani
Pen-52
Pen-14Pen-19
Pen-9
Pen-20
Pen-8
Pen-10
Pen-13Pen-7Pen-71375m
Pen-12
Pen-11
Pen-15Pen-51
Pen-2Pen-1
Pen-4Pen-3Pen-1021500m
Pen-101A1620m
Pen-105A1487m
Pen-106
Nagybánháza
Hungary
Romania
Penészlek
Corporate proFiLe
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 13
TSX-V:DXE
Approximately 66,000 acres of undeveloped land in west-central Alberta.
Including approximately 37,000 acres in the Cardium fairway.
hyperion is a publicly traded, high-growth junior light oil and gas company resulting from the recapitalization of triple 8 energy Ltd. in July 2010. hyperion’s business strategy is to grow through acquisitions, which lead to lower risk, scalable and repeatable development drilling projects. hyperion's core alberta operations are in north pembina, Buck Lake, garrington, niton/mcLeod and Chip Lake areas.
PROVED PRODUCING
(mboe)
PROVED UNDEVELOPED
(mboe)
TOTALPROVED (mboe)
PROBABLE (mboe)
TOTAL PROVEN & PROBABLE (mboe)
NPV 10%BEFORE TAX TPP ($M)
2,223 1,028 3,250 2,271 5,521 $76,095
MANAGEMENTTrevor SpagrudPresident, Chief Executive Of� cer and Director
Larry HammondChief Operating Of� cer
Doug BaileyChief Financial Of� cer
Tim GeeVice President, Engineering
Ryan HeathVice President Land & Business Development
Steve HorthManager, Exploration
BOARD OF DIRECTORSRod MaxwellDan O’NeilGreg TurnbullGreg BayTrevor Spagrud
INVESTOR RELATIONS
Doug BaileyChief Financial Of� [email protected] 2010, 355-4th Ave SWCalgary, AB T2P 0J1Tel: 403.930.0703
MARKET DATARecent Price: $0.65
Avg. Daily Volume: 140,000
Shares Out. (basic): 54.2mm
Market Cap.: $34.1mm
Net Debt (Q2 2012): $32.8mm
FD Shares Out: 71.9mm
Recently secured over 22,600 net acres of Cardium light oil prospective undeveloped land, multiple public and private undeveloped land acquisitions and a farm-in transaction.
In addition, completed four acquisitions since 2010. Gained scale and repeatability in established Cardium light oil producing areas.
215 unbooked locations (205 targeting tight oil) to provide the opportunity for strong, operated, organic growth in 2012, 2013 and beyond.
2012 capital budget includes 12 gross (9.3 net) total wells, including 11 gross (8.3 net) Cardium horizontal light oil wells.
• total Proved rli: 6.7 years
• total Proved Plus Probable rli: 11.4 years
• Production replacement ratio: 1,149%
HIGHLIGHTS
HYPERION LAND BASE
2012 RESERVES
PRO
DU
CTI
ON
GRO
WTH
NA
V BU
ILD
– P
RO F
ORM
A
RESE
RVE
VALU
E BY
PRO
DU
CT
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0Q3/
2010Actual
Q2/ 2011Actual
Q4/ 2011Actual
Q1/ 2011Actual
Q2/ 2011Actual
2012Actual
Q4/ 2010Actual
Q3/ 2011Actual
Gas (6:1)NGLs Guidance
Oil
NGLs26%
Oil48%
Gas26%
$600.00
$700.00
$500.00
$300.00
$400.00
$200.00
$100.00
$ –Est. Sep 2012 2PBT NPV
10%
Current Land, Seismic & Tax
Pools
Net of Current Debt
Net A
sset Value/Share (Basic)
215 Upside Drilling Locations
(risked)
Net
Ass
et V
alue
($M
M)
$ 2.0$ 1.0$ 0.0
$ 3.0$ 4.0$ 5.0$ 6.0$ 7.0$ 8.0$ 9.0$ 10.0$ 11.0$ 12.0$ 13.0
(As Evaluated By McDaniels & Associates Dec. 31, 2011)
Corporate proFiLe
14 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX-V:HYX
Invicta Energy Corp. (TSX:VCA) is a Calgary based, emerging junior oil and gas company ex-ploring and developing light oil opportunities in Saskatchewan and Alberta. The Company’s fo-cus to date has been the development of its Viking resource play in Lucky Hills, Saskatchewan. Invicta is the operator of this play with an average 53% working interest. In addition, Invicta has accumulated undeveloped land in central Alberta a number of prospective plays for light oil. The Company plans to initiate drilling in Alberta in early 2013.
MANAGEMENTGord Reese,President & CEO
John Gee, P.Eng.,VP Engineering and COO
Carrie McLauchlin, CA, Vice President Finance and CFO
Gord Timm, P. Land, PSL, VP Land
Sony Gill, LLB, Corporate Secretary
BOARD OF DIRECTORSDennis Nerland, LLB
Doug Bartole, P.Eng.
Larry M. Jones
Rod Maxwell, CA, CBV
Gord Reese, President & CEO
HEAD OFFICE#1550, 555 – 4th Ave. SW, Calgary, AB T2P 3E7
Phone: (403) 265-8890 Fax: (403) 265-8891
KEY CONTACTSGordon Reese, President & [email protected]
or
Carrie McLauchlin, VP Finance & [email protected]
WEBSITEwww.invictaenergy.ca
PROFILEListing: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VCA.TSXVShares Outstanding (basic/diluted): . . . . . . . . . . . . . . . . . . . . . . . . . 75.6 MM /90.2MMInsider Ownership (basic/diluted): . . . . . . . . . . . . . . . . . . . . . . . . . 16% /21% dilutedInstitutional Ownership: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30% – 40%Market Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~$17 MMUndeveloped Land: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,947 acres (51,963 net)
PRODUCTION PROFILE & FORECAST
AverageProduction(bbl/d)
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800
900
1000
Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13
Forecast
Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13
Forecast Q3/10
(1) (1) (1) (1)
LUCKY HILLS, SASKATCHEWAN• Operatorship: 53% Avg WI• 34 gross (20 net) wells by 2012, exit;
535 bbl/d of oil forecasted for exit 2012• Undeveloped land of 7,360 acres (4,210 net)• 600 meter horizontal wells using pad drilling
& monobore completion; D&C costs average $950K
• Light, sweet (32-38 degree API) oil• Focused facility infrastructure resulting in
operational efficiencies• In excess of 200 gross locations
CENTRAL ALBERTA• 49,587 gross (47,753 net) undeveloped acres• 500 km of trade and proprietary seismic • Four near term (within 12 months) drillable
prospect plays for light oil; two Mannville channel plays and two Viking light oil plays
MANNVILLE CHANNEL PLAYS
• 23 1/2 sections of 100% undeveloped land• 8 – 10 drilling targets; drilling to commence in
early 2013• Hz D&C costs of $1.5MM; forecasted reserves
100 – 150 MSTB/well; 61 to 90% IRR
Kindersley
(1) The 2013 forecasted production assumes drilling 30 gross (16 net) wells at Lucky Hills
Corporate proFiLe
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 15
TSX-V:VCA
MANAGEMENTTrent J. Yanko, P.Eng. President + CEO
Matt Janisch, P.Eng. Vice President, Finance + CFO
Dale Mennis Vice President, Land
Curt Labelle, P.Eng. Vice President, Production
Curt Ziemer, CGAVice President, Accounting
Mark Oliver, P.Geol Vice President, Exploration
William Wee, P.Eng.Vice President, Operations
Mark Franko, LLBCorporate Secretary
BOARD OF DIRECTORSJames Pasieka Chairman
Trent J. YankoChris Bloomer Jim WelykochyNeil Roszell
HEAD OFFICESuite 4400, 525-8th Avenue SWCalgary, Alberta T2P 1G1Phone: (403) 441-2300F: (403) 441-2017 E: [email protected] www.lgxoil.com
Corporate Highlights• Third Alberta Bakken well spud September
28, 2012• 95 sq. mi. 3D seismic program planned for late
fall 2012.• Strategic transaction with Legacy Oil + Gas
Inc. created a high impact, light oil explor-ation focused company that will also pursue a consolidation strategy in Southern Alberta.
• LGX's fi rst two Alberta Bakken horizontal wells have been drilled and are now on production.
• Early technical data on LGX wells are positive � rst steps toward establishing a commercial development on our lands.
LgX oil + gas inc. is a Calgary, alberta–based junior oil and natural gas company engaged in the exploration and development of resource-type oil and natural gas opportunities primarily focused in southern alberta. LgX is dedicated to delivering growth in reserves and production for its investors through land acquisition followed by exploration and development of the oil and gas resources. LgX’s management is a highly motivated and experienced group of petroleum industry professionals. With its extensive land holdings in the multi-zone southern alberta Bakken fairway, LgX has the opportunities, the fi nancial strength and the management team to build value for shareholders.
Corporate Summary(as at August 31, 2012)
TSX Trading Symbol OILCommon Shares 30.3 millionWarrants 6 millionOptions 2.4 millionInsiders Own Basic 39% Fully Diluted 38%2012 Q2 Production 485 Boe/dProved PlusProbable Reserves(1) 1.75 MMBoeUndeveloped Land(net acres) 155,974Market Capitalization $29.6 millionTax Pools $59 millionBank Line $7 million with zero debt
Alberta Basin Bakken Play • LGX owns 110,000 net acres on
play fairway • Deep Basin tight oil resource play • Bakken oil system—Banff/
Exshaw/Big Valley formations • Additional prospective light
oil targets include the Second White Specks, Barons, Mannville and Nisku formations
• Key 1979 Big Valley producer (10-30) adjacent to Joint Venture lands
• Two operated Big Valley hori-zontal wells drilled to date; both were successful oil wells
• More than 120 wells licensed and/or drilled since late 2009 on 140 mile long play fairway
• Competitors in Canada include TORC, Crescent Point, Shell, Murphy, Nexen, Dee Three and Argosy
(1) as at December 31, 2011
Corporate proFiLe
16 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX-V:OIL
ALTA.ALTA.ALTA.ALTA.ALTA. SASK.
MANAGEMENT TEAM
William AndrewExecutive Chair and CEO
Dale MillerPresident
William Tang KongVP, Corporate Development
Jason FleuryVP, Capital Markets
Shivon CrabtreeVP, Finance and CFO
Jim IversonVP, Exploration
Dale OrtonVP, Operations and Engineering
Devin SundstromVP, Production
BOARD OF DIRECTORS
William Andrew
Dale Miller
John Brussa
Michael McGovern
Paul Dimitriadis
Ed Chwyl
Michael Graham
Brad Munro
Patricia Newson
Jeffrey Errico
THE VISION
• Create a strong mid-cap oil and gas company
• Focus on potential resource plays in the Western Canadian Sedimentary Basin
• Build a balanced portfolio with exploration plays focused on both oil and natural gas
• Use enhanced recovery techniques to maximize property value
THE PLAYS
Montney
• 31.7 mmboe (P+P)
• 9,700 boe/d
• Initial two-year plan includes 90 to 100 horizontal wells targeting Montney oil
Alberta Viking
• 16.2 mmboe (P+P)
• 6,200 boe/d
• 40,000 net acres of undeveloped land
Duvernay
• More than 100,000 net exploration acreage with Nordegg and Duvernay shale resource potential
Saskatchewan Viking
• 7.6 mmboe (P+P)
• 1,500 boe/d
• More than 100,000 net undeveloped acres
PRODUCTION
DuvernayDuvernayDuvernayDuvernayDuvernayDuvernayDuvernayDuvernayDuvernayMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontneyMontney
Alberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta VikingAlberta Viking
Sask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. VikingSask. Viking
ProductionProduction (MBOE/d) Gas Oil + NGL
50% Gas50% Oil
Reserves
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2012 Estimate
20112010200920082007
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25
2012 Estimate
20112010200920082007
June20100
50
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250
2011Forecast
20102009200820072006200520042003
Cash Flow
HERE FOR THE LONG RUN
OCTOBER 2012WWW.LONGRUNEXPLORATION.COM
400-250 2 STREET SW, CALGARY, AB, T2P 0C1 TSX: LRE
RESERVES
ProductionGas
50% Gas50% Oil
Reserves Reserves (MMBOE)(1)
(1)Gross Reserves
Total Proved Proved+Probable
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2012 Estimate
20112010200920082007
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50
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20102009200820072006200520042003
Cash Flow
Corporate proFiLe
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 17
TSX:LRE
Manitok Offers A Significant Growth Opportunity
World class Foothills technical team with extensive experience gained through working in the Foothills at Talisman Energy for more than a decade.
129 years of combined experience in the Foothills. Over 200 wells drilled and $3 billion of capital spent in the Foothills. Provides a competitive advantage over other operators in the Foothills.
Large unexploited land base currently providing (90+) conventional drilling locations with IPs of 265 to 1,166 boe/d.
3+ year drilling inventory of oil locations. Developing additional conventional and unconventional light oil
plays on lands. Unique opportunity created by a shift in focus away from the
Foothills by many majors in unison.
Reduced risk on shallower opportunities due to experience, abundant seismic and borehole data from the deeper drilling done in the past.
Abundant opportunities with results similar to international exploration except with only development drilling risk and much less political risk.
Of the 9 conventional foothills wells drilled to date, 5 wells have had initial test rates of greater than 500 boe/d and 2 have been over 1,300 boe/d.
2012 drilling program to generate significant growth.
12 gross (8.9 net) Cardium light oil drills. 2012 capex program of +$50.0 million is fully funded.
Summary of Net Present Values for Future Net Revenues December 31, 2011 Forecast Prices and Costs
Notes: (1) Columns may not add due to rounding of individual items.(2) Estimates of future net revenues whether discounted or not do not represent fair market value.(3) Forecast of commodity prices used by Sproule in its evaluation can be found at www.sproule.com.
Manitok Energy Inc. is a public oil and gas exploration and development company focusing on conventional light oil and liquids rich gas reservoirs in the Canadian Foothills Belt.
The Company holds a 68% working interest in over 431 gross sections of land (276,073 acres) in the Foothills, with three producing oil pools at Stolberg, Cordel and Brown Creek and high wellhead condensate content in natural gas at Lovett/Basing.
Manitok is currently targeting conventional sweet light oil and liquids rich natural gas reservoirs with depths ranging from 800m to 3,200m.
TSX.V : MEI www.manitokenergy.com
4000
3000
2500
2000
1500
1000
500
3500
0
Q3 Q42010
Q1 Q2 Q32011
Q4 Q1 Q22012
Q3 Q4
Natural GasOil & Liquids
A Balanced Portfolio of Assets 2012 Average Production Forecast
Reserve Category $000 (Before Income Taxes Discounted at 10% a Year)
Gross MBOE
Proved Developed Producing Developed Non Producing Undeveloped
45,4673,615 2,946
3,313.5 571.3 654.9
Total Proved Probable
52,027 31,238
4,539.7 4,280.5
Total Proved Plus Probable 83,265 8,820.3
Alberta
BritishColumbia
LovettBrown Creek
Stolberg/Cordel
Fallen Timber
Coleman
Management TeamMassimo Geremia, President & CEO 21 years of experience in Oil & Gas, Real Estate and Finance
Tim de Freitas, Ph.D., VP Exploration & COO 24 years of experience in industry, most of it focused on structural (thrustbelt) geology and drilling
Robert Dion, CA, VP Finance & CFO 20 years of industry experience in senior financial positions
Dorothy Else, B.Sc., VP Land 28 years of experience as a Landman
Board of DirectorsBruno Geremia, C.A. - Chairman VP Finance & CFO, Birchcliff Energy
Robert J. Dales Director of Celtic Exploration Director of Arcan Resources
Massimo Geremia President & CEO, Manitok Energy
Wilfred A. Gobert Retired, former Vice Chairman of Peters & Co. Director of Canadian Natural Resources and Trilogy Energy Corp.
Contact Information:Manitok Energy Inc. 5th Avenue S.W. Suite 2500, 639 Calgary, Alberta T2P 0M9 P: 403.984.1750 F: 403.984.1749 www.manitokenergy.com
Investor Relations: Mathew August, Managing Director Colonial Advisory Services Inc. [email protected]
Greg Peterson Partner, Gowlings Canada
Tom Spoletini Independent Businessman
Cameron Vouri, P.Eng. Independent Businessman Former President of Provident Energy Trust’s Canadian business unit.
Profile
Manitok Stolberg #1
Corporate
A Once-in-a-Generation Opportunity in the Canadian Foothills
Corporate proFiLe
18 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX-V:MEI
REJUVENATING OLD OIL FIELDS
CAPITAL STRUCTURE• Shares outstanding (basic/diluted) -
57.5 MM/62.6 MM
• Insider holdings (basic/diluted) - 7%/11%
• Credit facility - $43 MM
• Net debt (forecast Q3 2012) - $37 MM
• Tax pools (forecast Q3 2012) - $83 MM
ASSET BASE• Current production estimate - 2,400 boe/d
(98% heavy oil)
• Undeveloped land - 62,000 net acres
• Prospect inventory - 160 heavy oil locations
2012 CAPITAL PROGRAMCapital expenditures - $36 MM
MANAGEMENTKevin Gibson
CEO
Allan Carswell
President & COO
Ivan J. Condic
Vice President, Finance & CFO
Robert (Bob) Padget
Vice President, Engineering
Glenn Taylor
Vice President, Production & Operations
DIRECTORSAllan Carswell
Ken Crowther
Daryl Fridhandler, Q.C., Chairman
Kevin Gibson
Stephen Hayden
Jeffrey C. Saponja
HEAD OFFICE600, 840 – 6 Avenue SW,
Calgary, Alberta T2P 3E5
[p]: 403-209-5710
[f]: 403-228-7992
[e]: [email protected]
www.palliserogc.com
• 13 consecutive quarters of production growth, 98% crude oil production weighting
• Targeting new pools and increasing recovery factors in old fields
• Focused on low operating cost, high netback, heavy oil production
• Growing inventory of drilling locations
ALBERTA SASKATCHEWAN
EDMONTON
CALGARY
SASKATOON
LloydminsterHeavy Oil Area
Currentfocus
Heavy Oil Focus
TSX Venture Exchange: PXL
Oil & Gas Corporation
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q22009 2010 2011 2012
Q10
500
1,000
1,500
2,000
Pro
du
ctio
n (
bo
e/d
)
Oil
Gas
Corporate proFiLe
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 19
TSX-V:PXL
Glenn McNamaraChief Executive Of� cerHamid MozayaniChief Operating Of� cerBill CumminsChief Financial Of� cer
Steve FarnerVice President, Exploration
Verne JohnsonChairman and DirectorHeinz Juergen Klaus ScholzCo-Chairman and DirectorJeffrey ScottDirectorGerard ProttiDirector
Dr. H. Werner LadweinDirectorGordon KeepDirectorFrank GiustraDirectorGlenn McNamaraDirector
petromanas energy inc. is an international oil and gas company focused on the exploration and development of its assets in albania. petromanas, through its wholly owned subsidiary, holds three production sharing Contracts (psCs) with the albanian government. Under the terms of the psCs, petromanas has a 100% working interest in Blocks a, B, D and e and a 50% working interest in Blocks 2 and 3 that comprise more than 1.4 million gross acres across albania's Berati thrust belt.
Proximate to key European export markets, Albania o� ers a stable political environment, attractive � scal terms and an established petroleum system with multiple active oil� elds, including Patos Marinza, the largest onshore oil� eld in Western Europe. Petromanas is princi-pally focused on the sub thrust carbonate play analogous to the Val D’Agri /
Tempa Rossa � elds in south-central Italy. � e company is focused on drilling multiple high-impact commitment wells in Albania in 2012 with prospects ranging from 50 to 230 mmboe in Pmean unrisked prospective resources (GLJ—July 2011).
In February 2012, Petromanas entered into a joint venture agreement with a wholly owned subsidiary of Royal Dutch Shell plc, with Shell acquiring a 50% participating interest in onshore exploration Blocks 2-3 in exchange for payments and carried costs of up to $50.3 million. Blocks 2-3 are home to existing clastic and carbonate oil � elds. In June 2012, Petromanas spud the Shpirag-2 well located on Blocks 2-3. It is a re-drill of the Shpirag-1 well drilled by Occidental Petroleum in 2001 that � owed light oil to surface. � e well is anticipated to take 150 to 180 days to reach a target depth of 6,100 metres at a cost of approximately $31 million, with Petromanas’ estimated net drilling cost expected to be $3 million.
Petromanas has also sourced a separate shallow rig to drill the Juban prospect located in Blocks A-B onshore Albania. � e company has received all necessary permits and lease and access road construction is complete. � e company intends to drill the well to a target depth of approximately 2,600 metres, with drilling expected to begin in the fourth quarter. Petromanas is currently � nalizing its options and plans for completing its 2012 PSC commitments in Blocks D-E.
Petromanas’ seasoned management team and board blend local and international experience and have a strong track record of value creation. At June 30, 2012, the company had $73 million in current working capital (including restricted cash) from which to fund operations. Petromanas has o� ces in Calgary, Alberta, and Tirana, Albania, and is listed on the TSX Venture Exchange under the symbol PMI.
Why Invest in Petromanas?
MANAGEMENT BOARD OF DIRECTORS HEAD OFFICE
Key Drill Ready Prospects
Petromanas Energy PSCs, Prospects and Leads
Suite 1720, Life Plaza734-7th Ave. SWCalgary, AB T2P 3P8T: +1 (403) 457-4400F: +1 (403) 457-4480E: [email protected]
Blocks 2-3: shpirag-2 (50% Wi)• Estimated depth to top of reservoir: 5,200 m – 5,500 m• Spud June 30, 2012• Unrisked prospective resources (Pmean): 233 mmboeBlocks a-B: Juban-1 (100% Wi)• Estimated depth to top of reservoir: 1,500 m – 2,000 m• Expected spud date: Q4 2012• Unrisked prospective resources (Pmean):
54 mmboeBlocks D-e: paper-1e (100% Wi)• Estimated depth to top of reservoir:
3,500 m – 4,000 m• Unrisked prospective resources (Pmean):
67 mmboe
Shpirag-2 well site
Corporate proFiLe
20 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX-V:PMI
Corporate proFiLe
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 21
TSX:PEY
Corporate proFiLe
Darren GeePresident & CEOScott RobinsonExecutive VP & COOKathy TurgeonVP Finance & CFOJean-Paul ‘JP’ LachanceVP Exploitation
Tim LouieVP LandDavid ThomasVP Exploration
Don GrayChairmanDarren GeePresident, CEO, DirectorScott RobinsonEVP, COO, DirectorStephen J. ChetnerCorporate Secretary, Director
Rick BraundDirectorBrian DavisDirectorGreg FletcherDirectorMichael MacBeanDirector
peyto exploration and Development Corp. is one of the fastest growing, most profi table natural gas weighted exploration and production companies in Canada. peyto is committed to building shareholder value through the development of high-quality natural gas properties and has proven to be a leader in the exploration and development of alberta’s Deep Basin natural gas resources plays.
peyto exploration and Development Corp. is a dividend-paying corporation organized from peyto energy trust. the trust succeeded the original corporation which was founded in 1998.
Long Reserve Life Asset - 9 yrs PDP, 22 yrs P+P at YE 2011Lowest Cost Producer - $0.97/mcfe ($5.84/boe) cash costs Q2/12Superior Shareholder Returns - Ave ROCE 21%, Ave ROE 40%Own and Control - Operate 99% of production, own infrastructureLiquids Rich Gas - 50,000 boe/d Alberta Deep Basin productionExciting Growth Pro� le - 35% production/share growth in 2011
Monthly Dividend: $0.06/shareShares O/S: 144 million (5% insider ownership)2012 Capex Guidance: $400-450 millionQ2 2012 Net Debt: $150 million (senior secured notes, 7-10 yrs, 4.39-4.88%(pro forma w/ONR) $437 million (revolving bank debt) $587 million Bank Lines: $880 million total capacity ($730 revolving facility)Enterprise Value: $4 billion ($24/share)
Company Summary
BOARD OF DIRECTORS HEAD OFFICEMANAGEMENTPeyto Exploration & Development Corp.1500, 250 - 2nd Street SWCalgary, Alberta T2P 0C1Dir: 403-261-6081Fax: [email protected]
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$ -
$ 2
$ 4
$ 6
$ 8
$ 10
Building it for less than we're selling it
AECO Monthly $/GJ
Peyt
o Re
aliz
ed G
as P
rice
($/m
cfe)
Peyt
o U
nhed
ged
Real
ized
Pri
ce (&
/mcf
e)39%Average
Pro� t
PDP FD&A
RoyaltiesOp Cost (Incl. Trans.)
G&A, InterestBonus
ACHIEVEMENTS• February 2012: Completed a rights offering and private placement for gross proceeds of ~$2.9 million • March 2012: Acquired Carrot Creek assets for $23.5 million which included liquids rich gas production,
related infrastructure, a small amount of oil production and liquids rich gas and oil horizontal drilling opportunities
• October 2012: Closed the acquisition of Geomark Exploration Ltd.; Strong balance sheet with no debt, approximately $22 million of cash and cash equivalents and $9 million of liquid securities
BOARD OF DIRECTORS HEAD OFFICEKEY PERSONNEL
pine Cliff energy is a public company engaged in the exploration, development and production of natural gas, crude oil and liquids. the company’s focus is on innovatively pursuing opportunities to acquire additional high-impact assets for future growth through asset or corporate acquisitions, farm-ins or joint ventures. pine Cliff’s strong balance sheet and management team has positioned the company to capitalize on its growth strategy and maximize value for shareholders.
CORE OPERATIONS — CARROT CREEK• Multi-Zone Area: Targeting Viking, Gething/Ellerslie, Wilrich, Notikewin, Ostracod, Lower Mannville,
Fernie Sand and Rock Creek• Working Interest: 31% (90% of Pine Cliff’s production is operated)• Land: 49 gross sections; 4,035 net hectares (9,970 acres)• Extensive Prospect Inventory: 5 oil locations; over 50 gross horizontal natural gas locations;
numerous recompletion oppportunities• Capital Development: Anticipate drilling one gross (0.30 net) Rock Creek well prior to year-end with
plans to drill up to 3 additional gross wells in early 2013
Philip B. HodgePresident & Chief Executive Of� cerRobb D. ThompsonChief Financial Of� cer & SecretaryKristi L. BarrControllerChris S. LeeSenior Geologist
George F. FinkExecutive Chairman of the Board
Gary J. DrummondPhilip B. HodgeRandy M. JarockCarl R. JonssonF. W. Woodward
901, 1015-4th Street SWCalgary, AB T2R 1J4
Telephone: 403.269.2289Fax: 403.265.7488Website: www.pinecliffenergy.comEmail: [email protected]
KEY FACTS
• TSX Venture Exchange: PNE
• Shares Issued: ~ 145.3 million
• Insider Ownership: 25%
• Market Capitalization: ~ $109 million
• Recent Trading Price (10/22/12): $0.75
• Undrawn Credit Facility: $15 million
• Current Production: ~ 1,100 boe/day
• Liquids Weighting: 25%
• Proved plus Probable Reserves: 3,814 MBOE
• High Quality Asset Base: Significant upside potential with natural gas recovery
Corporate proFiLe
22 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX-V:PNE
HEAD OFFICE2100, 635-8TH AVENUE SW, CALGARY
ALBERTA T2P-3M3
t: 403.930.1010
F: 403.930.1011 WWW.sUrgeenergy.Ca
investor Contacts• Dan O’Neil, President & CEO• Max Lof, CFO• Samantha McAra, Investor Relations
Bankers• National Bank of
Canada• Bank of Nova Scotia• Canadian Imperial Bank
of Commerce• ATB Financial
auditor• KPMG LLP
Legal Counsel• Heenan Blaikie LLP
evaluation engineers• Sproule Associates
EXECUTIVEDAN O’NEILpresident, Chief executive offi cer & Director
DAN BROWNChief operating offi cer
MAX LOFChief Financial offi cer
MALCOLM ADAMSVice president Corporate Development
MARGARET ELEKESVice president Land
TEE ONGVice president engineering
DIRECTORS
PAUL COLBORNE, CHAIRMANpresident, starValley oil & gas Ltd.
PETER BANNISTERpresident, Destiny energy inc.
ROB LEACHpresident, international Fitness
KEITH MACDONALDpresident, Bamako investment management
JAMES PASIEKApartner, heenan Blaikie LLp
MURRAY SMITHmember, energy advisory Board, tD securities
COLIN DAVIESindependent Director
CORPORATE PARTNERS
Surge is an oil-focused E&P company with operations throughout Western Canada and in the Williston Basin. Since inception on April 13, 2010, Surge has achieved signi� cant growth in production, reserves and cash � ow per share. The Company is positioned in three core areas, has assembled more than 570 gross (435 net) oil drilling locations, gained exposure to an internally estimated DPIIP1 of more than 550 (gross) million barrels of oil and tripled the size of our bank line.
The Company is currently focused on drilling at each of its three core operating areas. Surge has more than 329 net unbooked horizontal oil drilling locations to pursue, which has the potential to add more than $760 million2 of value (or almost $10 per fully diluted share) and more than 35 million barrels of light oil reserves. Total capital required to realize this value is approximately $650 million, which is three times our annualized exit cash fl ow for 20123.
Longer-term growth initiatives include oil focused exploration and tight oil waterfl oods. The Company’s tight oil waterfl ood opportunities have the potential to increase the value of Surge by more than $275 million (or more than $3.50 per fully diluted share) and add more than 44 million barrels of light oil, based on successful implementation.
Based on the Company’s current net asset value, unbooked drilling inventory and unbooked waterfl ood 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 $22 per fully diluted share.
Surge is committed to delivering top quartile corporate performance and creating value for shareholders by continuing to grow reserves, cash fl ow and production on a per share basis. Surge is forecasting a 2012 exit production rate of 11,000 boe/d.
Leading capital effi ciencies among oil weighted peer group
• 2011 2P F&D of $14.02 per boe (incl. change in FDC), recycle ratio of 2.7
proven growth focused management team
• 3 high performing asset teams, each capable of managing 10,000 boe/d
potential to more than triple oil reserves
• Exposure to more than 79 million barrels of light oil upside from primary and secondary development in addition to its current oil reserves of 23 million barrels
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 defi ned 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 April 30th, 2012, strip pricing (Year 1: CDN$95.66/bbl Edm. Par/US$103.79/bbl WTI; CDN$2.22/GJ
AECO/$US CDN$/US$ exchange rate of $0.987).3 Based on a forecast 2012 annualized exit funds from operations of $155 million Based on US$104.50/bbl WTI, Edm Par C$94.68, $1.98/GJ AECO, US$/CDN$
exchange rate of $0.9989.
Corporate proFiLe
Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE 23
TSX:SGY
MANAGEMENTRobert W. LamondPresident & C.E.O.
Donald K. ClarkVice President Operations & C.O.O.
Brad R. PerryC.F.O.
Marshall KisVice President Development Geology
BOARD OF DIRECTORSRobert W. LamondDavid BenningtonDonald K. ClarkRoger W. HumeJohn G.F. McLeod Glen PhillipsJack SteinhauserCharles A. Teare
CORPORATE STRUCTURE (September 30, 2012 )
OS Shares 122 million
Management’s holdings ~36%
Est. working capital: $0.2 million
Available bank line: $8.5 million
Available capital: $8.7 million
CONTACT INFORMATIONT: (403) 269-9889
F: (403) 269-9890
Production
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Q1 Q2 Q3 Q4 Q1 Q2
2011 2012
Aver
age
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duct
ion,
BO
EP
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Cash Flow
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0.5
1.0
1.5
2.0
Q1 Q2 Q3 Q4 Q1 Q2
2011 2012
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rterly
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h Fl
ow, $
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ions
ONGOING EXPLORATION OF 9 PROSPECTS
FOCUSED ON HEAVY OIL IN THE LLOYDMINSTER REGION
PRODUCTION
EXPANDED WATER HANDLING FACILITIES
Q3 2012
30+ DRILLING LOCATIONS AT MACKLIN & EVESHAM
No debt, Production
98% oil
Photo: development drilling at Macklin, March 2012
CASH FLOW
Corporate proFiLe
24 Fall 2012 – SEPaC Oil & GaS invEStOr ShOwCaSE
TSX-V:TUS
Visit us at: www.evcam.comEmail: [email protected]
Calgary Sales: 403-263-6144Blaine Fusick or Curtis Jerrom
* 720 dpi HD Color Resolution Cameras - highest in the industry
* Smallest OD for Sideview Camera - 43mm (1-11/16”)* More Robust Camera Design for Horizontal Deployment* Independent Hi-Temp LED’s for Downview & Sideview* Most Experienced Camera Operators in the Industry
THE BEST DOWNHOLE VIDEO TECHNOLOGY
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Visit us at:
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CASH FLOW
Managing your regulatory, to help you grow.
Managing your regulatory, to help you grow.
Managing your regulatory, to help you grow.
Managing your regulatory, to help you grow.
Providing the upstream and downstream petroleum sector with regulatory products and services to allow companies to properly manage their regulatory affairs.
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Corporate Emergency Response Plan (D071)
Corporate Health and Safety Manual
Pipeline Inspections (D066)
Pipeline Operations & Maintenance Procedures Manual
& Integrity Plan (D066)
Resource Applications (D065)
Facility Inspections (Manual 001)
Upstream Petroleum Industry Flaring (D060)
Upstream Oilfield Waste Management (D058)
Energy Development Applications (D056)
Storage Requirements for Upstream Petroleum
Industry (D055)
Application Audit Responses
Application Relaxations (D049, D017, D004)
Injection and Disposal Well Applications (D051)
Revised Program to Reduce Benzene Emissions from
Glycol Dehydrators (D039)
Drilling Rig Inspection (D036)
Service Rig Inspection (D037)
Measurement and Accounting Reviews (D17)
Suspension Requirements of Inactive Wells (D013)
License Liability Rating (LLR) Program (D006 & 011)
Regulatory Field Inspections
Regulatory Training
Steam-assisted Gravity Drainage (SAGD)
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