Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Peyto Energy Trust — Investor Presentation (August 2006)
82 slides from Peyto Exploration & Development's investor presentation, Aug 24, 2006
Slide 1: August 24, 2006
August 24, 2006
Slide 2: Oil & Gas Trust
Oil & Gas Trust Assets + Business - Distributions • Assets • Oil and gas reserves • Business • Investing capital to find and develop more oil and gas reserves • Distributions • Cashflow from operations that are taken out of the Trust and given to the unitholders 2 8/24/2006
Slide 3: Peyto Energy Trust
Peyto Energy Trust Assets + Business - Distributions • Assets • Approximately 100% natural gas and natural gas liquids • Long reserve life • Low operating costs • High Operatorship • Business • Peyto’s business is to design, drill and build its own assets • Low finding and development costs • High r
Slide 4: Assets
Assets Made Made by By Peyto Peyto Made by Peyto 4 8/24/2006
Slide 5: Peyto is a Tight Gas Company
Peyto is a Tight Gas Company North American Tight Gas Deep Basins Peyto’s Assets are located in Canada’s Alberta Deep Basin Alberta Deep Basin 5 Map Courtesy of GTI 8/24/2006
Slide 6: General Area of Operations Map
General Area of Operations Map Over the past eight years, Peyto has focused it’s efforts on a design, drill and build strategy exclusively Alberta in the Deep Basin. The Deep Basin is considered Alberta’s premier exploration area for high quality long life gas reserves. Peyto’s Sundance Area Alberta
Slide 7: Peyto Operations Map
Peyto Operations Map Gas Plants & Land By fall of 2006 Peyto will own Smoky/Kakwa and operate 195 mmcf/d of gas processing capacity in 35 mmcf/d the Deep Basin. Cutbank Nosehill 10 mmcf/d Sundance 20 mmcf/d 110 mmcf/d Leland Peyto owns over Wildhay 202,000 net acres (315 20 mmcf/d net sections) of l
Slide 8: Gas Plant & Gathering System
Gas Plant & Gathering System Greater Sundance Greater Sundance Area Gas Plants z Oldman - 110 mmcf/d Compression, 110 mmcf/d Refrigeration, constructed & installed April 2000 z expanded four times over two years z Wildhay (New) - 20 mmcf/d Compression, 20 mmcf/d Refrigeration, constructed & installe
Slide 9: Deep Basin Tight Gas
Deep Basin Tight Gas Multiple Vertical Targets Sundance Area Reservoirs Peyto’s design, drill and build strategy targets over 7 different tight gas reservoirs in the Deep Basin 9 8/24/2006
Slide 10: Cardium Resource Play
Cardium Resource Play Greater Edson Area Trend Cardium Resource Play 9Low Risk Development Drilling 9High Heating Value, Liquid Rich Gas 9Predictable Production Profile 9Long Life Reserves 1 Cardium Gas Producers On production before 1991 z 32 wells on production before 1991 z 32 wells still produci
Slide 11: Cardium Resource Play
Cardium Resource Play Analogue Producers, on production before 1991 RLI Reserve Life Based on Index based on Current Gas First first Year Rate 2005 Ultimate Rate and Produced Year Avg and Cum Gas Current Time On Exponential Remaining Ultimate Reserve Remainin On Prod Last Prod To Date Gas Rate Produ
Slide 12: Low Operating Costs
Low Operating Costs Field Processing Operating “One of the reasons our assets are so valuable is our Expenses Transportation Income Costs industry leading operating costs. Our operating costs Year ($/boe) ($boe) ($/boe) ($/boe) are so low for a number of reasons. First, we produce from reservoirs th
Slide 13: Operating Costs Five Year Trend
Operating Costs Five Year Trend $12 Operating Costs Trend Q4 2000 to Q4 2005 Fourth Quarter Operating Costs ($/boee) •Peyto + 4% $10 •BNP + 309% •Baytex + 134% $8 •ARC + 37% $6 $4 $2 $- 1999 2000 2001 2002 2003 2004 2005 2006 Year Peyto Bonavista Baytex ARC 13 BOE factor - 6 mcf = 1 bbl of oil equiv
Slide 14: Operating Costs Industry Comparison
Operating Costs Industry Comparison Q1 2006 Operating Costs $14 $12 $10 $8 $/boe $6 $4 $2 $- FE U N TE N Z A UN CN UN A V UN P W UN E R UN F E UN HT U N DA UN BN U N E E UN P M UN P W UN PT N AE U N SH U N CP UN V E UN P G UN UN B T UN P G TO U U X_ T_ F_ T_ R_ E_ N_ E_ _ P_ T_ Y_ F_ L_ _ T_ T_ I_ E
Slide 15: Tight Gas: Understanding the Value (1)
Tight Gas Understanding the Value (1) Op Costs + Royalty “Royalty rate drops as the productivity declines. The operating costs increase $15 because of the lower productivity relative to the component of fixed operating costs.” Royalty $10 Costs ($/boe) Operating Costs $5 $- 0 5 10 15 20 25 30 Years
Slide 16: Tight Gas: Understanding the Value (2)
Tight Gas Understanding the Value (2) 60 $180 NPV 8% per boe/d 50 “Typical Peyto deep basin tight gas $150 Value of Production, NPV 8% / boe/d production actually becomes more valuable over time as netbacks continue to improve (2%/yr to year 24). Even Production Rate (boe/d) 40 Production though pro
Slide 17: Reserves, Volume Summary
Reserves, Volume Summary Natural Gas Sales Gas Liquids & Oil Category (BCF) (Mstb) BOE's(Mstb) Proven Producing 428 16,569 87,881 Proven Non-Producing 28 773 5,460 Proven Undeveloped 90 2,409 17,461 Total Proven 546 19,751 110,802 Probable Additional 215 6,786 42,645 Proved + Probable 761 26,537 153
Slide 18: Reserve Life Industry Comparison
Years - 5 10 15 PE YT H O TE _U AE N T_ U ER N Long F_ U PT N F_ U VE N T_ Reserve Life PW U N T_ U PW N I_ U AV N N _U EE N E_ U PG N F_ U FE N T_ U BN N P_ U PG N X_ Average U ZA N R _ SH UN N_ U C N PG 2005 Year End Proven Producing Reserve Life _U C N NE _U D N AY Industry Comparison, Proven Pro
Slide 19: Reserves, Net Present Value
Reserves, Net Present Value Variable Price Economics NPV (millions of CDN dollars) Category 0% 5% 8% 10% Proven Developed 3,762 2,232 1,816 1,627 Proven Undeveloped 610 307 222 182 Total Proven 4,372 2,539 2,038 1,809 Probable Additional 1,634 680 465 375 Proven + Probable 6,006 3,219 2,503 2,184 Pa
Slide 20: Industry Comparison, Results
Assets Industry Comparison, Results Results Q1 2006 Year End 2005 Res erve Life (yrs ) Revenue 2005 Average Before Operating Bas ic Cas h Well Average Hedging Netback Cos ts Cos ts Proven Proven + Productivity Weighted Com pany Nam e ($/boe) ($/boe) ($/boe) ($/boe) Producing Total Proven Probable (b
Slide 21: Industry Comparison, Weighted Ranking
Assets Industry Comparison, Weighted Ranking Results Q1 2006 Year End 2005 Res erve Life (yrs ) Revenue 2005 Average Before Operating Bas ic Cas h Well Average Hedging Netback Cos ts Cos ts Proven Proven + Productivity Weighted Com pany Nam e ($/boe) ($/boe) ($/boe) ($/boe) Producing Total Proven Pr
Slide 22: Business
ag : PEYTO."as Business _ Bhd —— —S } | Lo ZA NWS y le — = III V4 — | | — as ess Ee | l) 22 8/24/2006
Slide 23: Strategy, We Build it Ourselves
Strategy, We Build it Ourselves Acquire Build 23 8/24/2006
Slide 24: The Team
The Team • Don Gray CEO & Director • Kathy Turgeon Finance, Vice President • Darren Gee President • Cheree Stephenson Finance • Scott Robinson Executive VP and COO • Lydia Hamaliuk Finance • Jennifer Perrot Administrative Assistant • Catherine MacPhee Finance • Tara Antosh Administrative Assistant •
Slide 25: Corporate Governance
Corporate Governance • “We will be candid in our reporting, emphasizing the pluses and minuses important in appraising business value. Our guideline is to tell you the business facts that we would want to know if our positions were reversed.” • “Our policies and communications will be designed to en
Slide 26: Quarterly Track Record
Quarterly Track Record 2006 2005 2004 2003 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Operations Production Oil & NGLs (bbl/d) 4,145 4,143 4,436 4,185 4,569 4,653 4,337 3,882 4,360 3,967 3,918 3,315 2,904 3,104 2,948 Natural gas (mcf/d) 112,484 110,878 106,701 108,356 108,460 106,866 103,
Slide 27: Capital Expenditures Track Record
Capital Expenditures Track Record $358 million CAPEX $400 400% CAPEX / Funds from Operations (%) Funds from Operations & CAPEX $300 300% (Millions of Dollars) $200 200% $100 100% $- 0% 1999 2000 2001 2002 2003 2004 2005 Year Funds from Operations CAPEX CAPEX / Funds from Operations 27 Management use
Slide 28: 2005 Business: Capital Expenditures & Well Activity
2005 Business Capital Expenditures & Well Activity z Capital Expenditures z Total $358 MM z Drill & Complete $274 MM z Tie ins & Facilities $60 MM z Land $12 MM z Seismic $12 z Well Activity z Wells Drilled, 120 gross, 99 net z Wells Completed, 126 gross, 104 net z Wells Brought on Production, 115 g
Slide 29: 2005 Business: Performance Ratios
2005 Business Performance Ratios Proved Total Proved + Performance Ratios Developed Proved Probable FD&A, $/boe $ 14.45 $ 13.33 $ 11.18 before change in future development capital FD&A, $/boe $ 13.88 $ 15.32 $ 15.17 including change in future development capital Reserve Replacement Ratio 3.1 3.3 4.0
Slide 30: Proven Reserve Growth Per Unit
AE -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% T_ U N PE YT VE O T_ U D N AY _U N AE _U BN N P _U FE N Industry Comparison L_ U ZA N R _U PG N X _U PG N F_ U PW N T_ U FE N T_ U PT N F_ U H N TE _U ER N F_ U BT N E_ 2005 Proven Reserve Growth Per Unit U SH N N _U PW N I_ Proven Reserve Growth Per Unit
Slide 31: Effective Recycle Ratio
-1 0 1 2 3 PE YT O AE T_ U D N AY _U PG N X _U VE N T_ U N AE _U BN N P _U H N TE _U PG N F_ U BT N E_ U ZA N R _U AV N N Effective Recycle Ratio _U PW N T_ U SH N N _U FE N Industry Comparison, Effective Recycle Ratio L_ U FE N T_ U ER N F_ U 2005 Effective Recycle Ratio, Proven Producing N PW I_ U
Slide 32: Reserve Replacement Ratio
-1 0 1 2 3 PE YT O AE T_ U N VE T_ U N D AY _U N BN P _U N ZA R Industry Comparison _U N PG X _U N PG F_ U N BT E_ U N FE T_ U N H TE _U PW N T_ U N PT F_ U N Reserve Replacement Ratio PM T_ U N SH N _U ER N F_ U N C PG _U 2005 Proven Producing Reserve Replacement Ratio Per Unit N PW I_ U N AV N _U
Slide 33: Achievement of Growth: Building Our Own Production
Achievement of Growth Building Our Own Production 0 Gross Declines 2000 2001 2002 2003 2004 14 1st Year Decline -26% -36% -36% -41% -43% 2nd Year Decline -19% -23% -16% -25% 3rd Year Decline -18% -15% -14% 0 12 4th Year Decline -12% -10% 2006 Drills Net Sales (mmcf of gas equivalent) 5th Year Declin
Slide 34: Achievement of Growth: Absolute Production Growth
Achievement of Growth Absolute Production Growth 25,000 “All of our production growth has come from internally generated ideas. At Peyto we believe the best assets are the ones you can design, drill and build yourself. This build it ourselves approach is part of what makes Peyto unique.” 20,000 Conv
Slide 35: Per Unit Production, Reserves and Income Growth
Achievement of Growth Per Unit Production, Reserves and Income Growth 250 1.0 Funds from Operations ($/unit) Daily Production (boe/d/million 200 0.8 Growth Per Reserves (boe/unit) & Trust Unit 150 0.6 units) 100 0.4 50 Converted 0.2 to a Trust - - Q4 99 Q4 00 Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Quarter Fu
Slide 36: Debt Adjusted Reserve NPV Growth per unit
Achievement of Value Growth Debt Adjusted Reserve NPV Growth per unit DA Proved Producing NPV 0% $35 Debt Adjusted Net Present Value Per Unit per unit, $31.83 $30 DA Proved Plus $25 Probable NPV 10% per unit $20 ($/unit) DA Proved Producing NPV 10% per unit $15 $10 $5 $0 Q4 00 Q4 01 Q4 02 Q4 03 Q4 0
Slide 37: Market Return
Market Return Annual Return and Total Return Cumulative 250% Market Return 25000% Annual “Peyto’s business Market Return strategy has lead to significant profitable growth and an outstanding total return 200% 20000% for its unitholders. When we started in October 1998 we had no track record, making
Slide 38: Business Performance: Industry Comparison, Results
Business Performance Industry Comparison, Results Results 2005 Effective Recycle Ratio 2005 Res erve Growth Per Unit “Effective Recycle Ratio – With Performance we are trying Average to compare the business side of oil and gas. The effect that Proven Proven + Proven Proven + Weighted the capital inv
Slide 39: Business Performance: Weighted Ranking
Business Performance Industry Comparison, Weighted Ranking Weighted Ranking 2005 Effective Recycle Ratio 2005 Reserve Growth Per Unit Average Proven Proven + Proven Proven + Weighted Company Name Producing Proven Probable Producing Proven Probable Ranking Peyto 1 1 1 1 1 2 1 ARC 2 3 4 1 2 2 3 Vermil
Slide 40: Sustainability
Sustainability 40 8/24/2006
Slide 41: Sustainability
Sustainability • Sustainability in an energy trust is the condition achieved when the company’s business allows it to distribute regular cash disbursements and simultaneously reinvest to grow and perpetuate on a per unit basis. • Most energy trusts were not designed to be sustainable. Most were foun
Slide 42: Keys to Sustainability
Keys to Sustainability • Suitable Assets • Strong Business • Balanced Distribution Model 42 8/24/2006
Slide 43: Keys to Sustainability: A Suitable Asset
Keys to Sustainability A Suitable Asset, Deep Basin Tight Gas • Geographically Extensive Tight Gas • Low Geological Risk • Multiple Vertical Targets • Long Reserve Life • High Revenue, Low Operating Cost, High Netback 43 8/24/2006
Slide 44: Keys to Sustainability: Strong Business
Keys to Sustainability Strong Business • Unique Design, Drill and Build Approach • Long Track Record of High Return on Capital • Consistent Industry Leading FD&A Costs • Consistent Industry Leading Recycle Ratio • Consistent Growth in Future Resource Opportunities 44 8/24/2006
Slide 45: Keys to Sustainability: Balanced Distribution, Payout Ratio
Keys to Sustainability Balanced Distribution Historical Payout Ratio “Since we converted to a trust over Maximumtwo years ago, we have increased our 57%distribution five times. Our model was designed to grow our reserves per 100% “Our plan was to payout roughly 50% unit, thus, allowing us to grow ou
Slide 46: Keys to Sustainability: Distribution Growth
Keys to Sustainability Distribution Growth Monthly Distribution “Since we converted to a trust over two years ago, we have increased our $0.15 distribution five times. Our model was designed to grow our reserves per Anualized Distribution/Unit Price (%) unit, thus, allowing us to grow our distributi
Slide 47: Positive Reserve Replacement Cycle
Keys to Sustainability Positive Reserve Replacement Cycle Peyto Q2 2006 Example Funds From Operations ($/boe) $ 37.21 Distribution at 57% ($/boe) $ (21.08) Cash Available After Distribution ($/boe) $ 16.13 Cost to replace Proved Developed Reserves (2005 FDA $/boe) $ (14.34) Cash Available to Increas
Slide 48: Industry Comparison, Reserve Replacement Cycle
Keys to Sustainability Industry Comparison, Reserve Replacement Cycle Q1 2006 Proven Producing Reserve Replacement Cycle $10 $5 $- PG N AE N BT N B N UN P M UN PT N FE N AV N CP UN UN TE N CN UN ZA N HT N PG N P W UN DA N FE N ER N PW N SH N E E UN VE O U U U U U U U U U _U U _U U U U YT X_ T_ F_ T_
Slide 49: Industry Comparison, Distribution Life
Keys to Sustainability Industry Comparison, Distribution Life Distritbution Life, Proved Developed Producing NPV 25 20 15 Years 10 5 - CN UN CP UN PW N AE N PW U N DA N PG N UN BT N FE N EE N TE N PM N ER N ZA N HT N VE O AV N BN N PG N SH N FE N PT N U U U U U U U U U U _U U U U U _U U YT U X_ T_ F
Slide 50: Industry Comparison, Payout Ratio
Keys to Sustainability Industry Comparison, Payout Ratio Q1 2006 Payout Ratio 120% 100% 80% Years 60% 40% 20% 0% AV N PE N HT N TE N FE N CP UN UN ER N PG N E E UN BN N AE N ZA N P W UN PT N PM N PW N SH N CN N FE N DA N PG N BT O U U U U U U U U _U U U U U _U U U U U YT X_ T_ T_ F_ E_ R_ N_ T_ P_ Y
Slide 51: Sustainability Industry Comparison, Results
Sustainability Industry Comparison, Results Results 2005 Proven Q1 2006 Payout Adjus ted Res erve Life Q1 2006 Producing (yrs ) Q1 2006 Operating Res erve Res erve Dis tribution Average Dis tribution Cos ts Growth Per Proven Proven + Replacem ent Res erve Life Weighted Com pany Nam e Payout Ratio ($
Slide 52: Sustainability Industry Comparison, Weighted Ranking
Sustainability Industry Comparison, Weighted Ranking Weighted Ranking 2005 Proven Q1 2006 Payout Adjus ted Res erve Life Q1 2006 Producing (yrs ) Q1 2006 Operating Res erve Res erve Dis tribution Average Dis tribution Cos ts Growth Per Proven Proven + Replacem ent Res erve Weighted Com pany Nam e Pa
Slide 53: Valuation
Valuation + = Assets Business Valuation 53 8/24/2006
Slide 54: Industry Comparison, Proved Producing Undiscounted NPV
Valuation Industry Comparison, Proved Producing Undiscounted NPV 2005 Proved Producing Undiscounted NPV $8,000 $7,000 $6,000 NPV, millions of dollars $5,000 $4,000 $3,000 $2,000 $1,000 $- SH U N N AV UN EE UN FE UN VE UN PG UN DA UN ZA N FE N PG UN HT UN PM UN AE N PW U N PE N PT N TE N BT N CP UN B
Slide 55: Market Value vs. Engineering Value
Valuation Industry Comparison, Market Value vs. Engineering Value Market Valuation Premium to Proved Producing Undiscounted NPV 140% “As of April 9, 2006, Peyto traded at a discount to it’s 120% proved producing NPV. Given Peyto’s track record of profitable growth, one would expect it to trade at a
Slide 56: A "Short" Sighted Market
Valuation A “Short” Sighted Market Reserve Life versus Premium to Proved Producing NPV @ 0% “Investors are paying premiums for short life trusts, or those 140% that are setup to deplete the fastest. This phenomena is a result of rising commodity prices that have created the illusion 120% of sustaina
Slide 57: 2006 Outlook
2006 Outlook • Capital Expenditures ($300 - $360 million) • Drill & Re-Enter New Gas Locations • Expand Gas Gathering & Processing Capacity • Expand Undeveloped Land Base • Expand 3-D & 2-D Seismic Database • Acquire Partner Working Interests 57 8/24/2006
Slide 58: Peyto Energy Trust
Peyto Energy Trust Assets + Business - Distributions • Assets • Approximately 100% natural gas and natural gas liquids • Long reserve life • Low operating costs • High Operatorship • Business • Peyto’s business is to design, drill and build its own assets • Low finding and development costs • High r
Slide 59: Notes: Table of Contents
Notes Table of Contents • Gas & Liquids Marketing • Corporate Insurance • Performance Based Compensation • Distribution History • Major Share Placements • Reasons for Trust Reorganization • Financing (2006 - 1997) • Employees • Directors 59 8/24/2006
Slide 60: Product Marketing: Philosophy
Product Marketing Philosophy Peyto’s marketing strategy is designed to smooth out short term fluctuations in the price of both natural gas and natural gas liquids through future sales. It is meant to be methodical and consistent and to avoid speculation. This forward price averaging gives stability
Slide 61: Product Marketing: Gas
Product Marketing Gas Look Forward Average Average Energy Volume Volume Price Price Volume Price Year Season Month (GJ/d) (E3m3/d) (MMscfd) ($/GJ) ($/mcf) (MMscfd) ($/mcf) Current natural gas Apr 55,000 1,324 47 $ 8.32 $ 9.73 31 $ 10.32 hedges represent May 55,000 1,324 47 $ 8.32 $ 9.73 30 $ 10.36 r
Slide 62: Product Marketing: Liquids
Product Marketing Liquids Oil Hedges Hedge Price Year Month Volume (bbl/d) Volume (m3/d) ($CDN/bbl) Jul 1,100 175 75.55 Aug 1,200 191 76.40 Sep 1,200 191 76.40 Oct 1,200 191 79.14 Nov 1,200 191 79.14 Dec 1,200 191 79.14 Jan 600 95 86.06 Feb 600 95 86.06 Mar 600 95 86.06 Apr 600 95 85.85 2007 May 600
Slide 63: Corporate Insurance
Corporate Insurance • General Liability (including pollution) $10 Million • Property (gas plants, wellsites, office) $40 Million • Operator’s Extra Expense (well control) $10 Million • Directors and Officers $20 Million Note: Peyto does not carry any Business Interruption insurance to cover the loss
Slide 64: Performance Based Compensation
Performance Based Compensation • Market Based Compensation “The principle behind our performance compensation is to compensate performance • compensates employees based on unit price which benefits the unitholder. We are confident that our plan is fully aligned to the performance unitholders. In ver
Slide 65: Performance Based Compensation: Reserve Value Component
Performance Based Compensation Reserve Value Component • Rules • At the time of payout, a share of the performance based compensation is allocated, based on performance, to employees and key consultants. • Each year an independent engineering firm calculates the incremental value of the trust’s prov
Slide 66: Performance Based Compensation: Market Component
Performance Based Compensation Market Component • Rules • At time of grant, a share of the performance based compensation is allocated to employees and key consultants. • Rights vest equally over a three year period. • The size is not to exceed 7% of total units outstanding. • In December of each ye
Slide 67: Performance Based Compensation: Market Component (1)
Performance Based Compensation Market Component (1) (as of August 10th 2006) Average Grant Number of Vesting Date Price Rights 31-Dec-06 $ 18.80 1,491,100 31-Dec-07 $ 24.24 1,344,100 31-Dec-08 $ 25.29 1,504,000 Total Unvested Rights O/S $ 22.73 4,339,200 Total Units O/S (as of June 30th 2006) 104,64
Slide 68: Performance Based Compensation: Market Component (2)
Performance Based Compensation Market Component (2) “Before we converted to a trust the market based compensation maximum was set at 10%. As a trust the $25 10.0% maximum level was set by the board at 7%. Since Converted to conversion to a trust, the percentage of the market a Trust performance that
Slide 69: Distribution History
Distribution History Distribution Distribution Number of Distribution Distribution Number of Month per Unit Units O/S Total Distribution Month per Unit Units O/S Total Distribution Jul-03 $ 0.075 90,790,244 $ 6,809,268 Jul-05 $ 0.120 96,923,916 $ 11,630,870 Aug-03 $ 0.075 90,790,244 $ 6,809,268 Aug-
Slide 70: Major Share Placements
Major Share Placements Issue Shares Price Description Year (000's) ($/share) Initial Capitalization, Founders and Public 1998 26,200 $ 0.08 Rights Offering 1999 13,100 $ 0.16 Private Placement to Outside Party 1999 8,720 $ 0.28 Private Placement to Outside Party 1999 1,000 $ 0.43 Private Placement t
Slide 71: Reasons for the 2003 Trust Reorganization
Reasons for the 2003 Trust Reorganization 9 Creates a more tax efficient capital structure. 9 Maintains our unique entrepreneurial environment. 9 Allows for the continued growth of our capital investments without compromising the quality. 9 Gives all shareholders the ability to allocate the distribu
Slide 72: Financing (2006)
Financing (2006) • 2006 • $6,928,366 Private Placement Share Issue (312,370 shares $22.18/share) • Private placement of Trust Units to employees and consultants. Shares were priced based on the five day weighted average prior to the reserve report. The total proceeds from the private placement repre
Slide 73: Financing (2005)
Financing (2005) • 2005 • $4,500,125 Private Placement Share Issue (175,000 shares $25.72/share) • Private placement of Trust Units to employees and consultants. Shares were priced based on the ten day weighted average prior to the reserve report. The total proceeds from the private placement repres
Slide 74: Financing (2004)
Financing (2004) • 2004 • $230,000,000 Revolving Line of Credit from Bank • 2003 year end review, increased to $230,000,000 Revolving Line of Credit with the Bank of Montreal, CIBC, National Bank of Canada and the Union Bank of California • $300,000,000 Revolving Line of Credit from Bank • 2004 mid
Slide 75: Financing (2003)
Financing (2003) • 2003 • $180,000,000 Revolving Line of Credit from Bank • Increased to $180,000,000 Revolving Line of Credit with the Bank of Montreal, CIBC, National Bank of Canada and the Union Bank of California • $29,813,189 Private Placement Share Issue (3,879,400 shares $7.69/share) • Privat
Slide 76: Financing (2001-2002)
Financing (2001-2002) • 2001 • $50,000,000 Revolving Line of Credit from Bank • Moved from $25,000,000 Revolving Line of Credit with the National Bank of Canada to a $50,000,000 Revolving Line of Credit with the Royal Bank of Canada. • $60,000,000 Revolving Line of Credit from Bank • Increased from
Slide 77: Financing (2000)
Financing (2000) • 2000 • $2,700,000 Convertible Debenture issued to Paramount Resources Ltd. • Bears interest at 3% per annum; Convertible at $0.30/share over five year term. Redeemable after July 1, 2000 if trading price above $0.42/share. Issued January 2000 • $7,958,000 Takeover of Largo Resourc
Slide 78: Financing (1999)
Financing (1999) • 1999 • $267,000 Private Placement • Issued 2,970,000 shares at $0.09/share, January 1999 • $2,073,037 Shareholder Rights Offering • Issued 13,108,670 shares, November 1999 • $2,500,000 P&NG Purchase from Paramount Resources Ltd. • Originally Farmed in on two suspended Paramount we
Slide 79: Financing (1997-98)
Financing (1997-98) • 1997 (before Peyto Management) • $250,000 Private Placement to JCP Founders • Issued 5,000,000 shares at $0.05/share March 1997 • $250,000 JCP IPO • Issued 2,500,000 shares at $0.10/share December 1997 • 1998 October 23, 1998 Peyto Starts at $0.04/share • $254,000 Private Place
Slide 80: Officers
Officers Don T. Gray, CEO and Director Founder of PEYTO, Professional Engineer up to December 31, 2002, 18 years of oil & gas reservoir, evaluation & exploitation engineering experience, B.Sc. Petroleum Engineering, Texas A&M University Darren Gee, President (P.Eng.) Professional Engineer, 17 years
Slide 81: Directors
Directors Don T. Gray, Co-founder & CEO (President 1998 – 2006) “We have four independent Board members. The other two board members were founders of the company in 1998.” Rick Braund, Co-founder, Landman, since 1998 John L. Boyd, Private Investor, since 2002 Mick MacBean, Chartered Accountant, CEO
Slide 82: Reserves: National Instrument 51-101 Cautionary Statements
Reserves National Instrument 51-101 Cautionary Statements The Canadian Securities Administrators have implemented new standards of disclosure for reporting issuers engaged in upstream oil and gas activities effective December 31, 2003. The new disclosure standards referred to as National Instrument
Peyto Energy Trust — Investor Presentation (August 2006) on 6ix