Paramount Resources Ltd. Class A · TSX:POU
Paramount Resources Ltd. Class A — Investor Presentation (January 2019)
24 slides from Paramount Resources Ltd. Class A's investor presentation, January 2019
Slide 1: Corporate Presentation
Corporate Presentation January 2019
Slide 2: Advisories
Advisories • In the interest of providing information regarding Paramount Resources Ltd. ("Paramount", "PRL" or the "Company") and its future plans and operations, this presentation contains certain forward-looking information and statements. • The projections, estimates and forecasts contained in s
Slide 3: Corporate Overview
Corporate Overview • Founded in 1976; IPO in 1978; TSX: POU • Market Cap: ~$1.0 Bln (130.9 MM shares @$8.00/sh) • Insider ownership: ~46% • Net Debt: $797 MM (1) • Total land position ~3.0 million net acres including: • ~330,000 net Montney acres • ~230,000 net Duvernay acres • 376 MMBoe Proved Rese
Slide 4: Highlights
Highlights Transaction Highlights • May 2017 closed the sale of Valhalla assets for ~$150 MM • August 2017 closed Apache Canada acquisition for ~$487 MM • September 2017 merged with Trilogy for 1 POU share for every 3.75 TET shares • July 2018 closed the sale of Resthaven/Jayar assets for ~$340 MM O
Slide 5: Grande Prairie Snapshot
Grande Prairie Snapshot Operational Highlights 2018 Program • Karr: drill two five-well pads; complete 1 pad • Wapiti: drill 23 wells; complete 11 wells • YTD Sept 30/18 Sales: 25,750 Boe/d (50% liquids) Asset Summary • Resthaven/Jayar sold to Strath Resources Ltd. for ~$340 MM July 2018 • Focused o
Slide 6: Karr Montney Asset Detail
Karr Montney Asset Detail (1) Operational Highlights • Wells on the 1-2 pad are completed and on production • Wells on the 4-24 pad are rig released and will be completed and brought on production in 2019 • Avg peak 30-day wellhead rate of 1,971 Boe/d (~60% condensate) from 27 wells drilled in 2016/
Slide 7: Wapiti Montney Asset Detail
Wapiti Montney Asset Detail (1) Operational Highlights • 9-3 pad wells drilled and completed: the completions set several new records due to advances in well design and program execution • Additional 12 wells commenced drilling on the 5-3 pad • Third party gas plant and infrastructure under construc
Slide 8: Kaybob Snapshot
Kaybob Snapshot (1) Operational Highlights • 11 of 13 planned Montney oil wells have been drilled and put on production • 9 of 14 planned Duvernay wells are completed and on production; drilling operations commenced on the 2-28 pad • Smoky plant expanded to 12 MMcf/d • YTD Sept 30, 2018 Sales: 39,59
Slide 9: Kaybob Duvernay Asset Details
Kaybob Duvernay Asset Details (1) Operational Highlights • Kaybob Smoky 10-35 pad: 4 wells drilled, completed and flowing through permanent facilities • Kaybob South 7-22 pad: 5 wells drilled, completed and on production with an average 30-day peak CGR of 199 Bbl/MMcf • Special projects include fibr
Slide 10: Kaybob Montney Oil Development
Kaybob Montney Oil Development (1) Operational Highlights • 2018 activity: 11 of 13 Montney horizontal wells are completed and on production • Two remaining wells were drilled in Q4 2018 Asset Potential • Discovered 2011 with ~150 wells drilled to date • ~32,000 net acres • P+P inventory of 100 loca
Slide 11: Central Alberta & Other Snapshot
Central Alberta & Other Snapshot (1) Operational Highlights 2018 Program: •5-29-39-4W5 hz Duvernay well at Willesden Green on production: peak 30-day rate of 944 Boe/d (total producing days 95) • Three Glauconite wells at Leafland have been completed and are on production • YTD Sept 30, 2018 Sales:
Slide 12: Willesden Green
(1) Willesden Green Operational Highlights • Horizontal well at 5-29 completed and on production Asset Potential • Duvernay Shale Play • 59,686 acres of land (100% WI) • Drilled and completed 5 Hz Duvernay wells to date • 00/05-29 Cum Production to January 2, 2019 • 72.1 MMcf Gas • 82,456 Bbl Oil 1)
Slide 13: 2018 Capital Program
2018 Capital Program • 2018 Capex ~$600 million (excluding acquisitions & divestitures) • Plan included drilling ~68 development wells and completing ~47 of those wells 47 well completions represent ~11% of PRL’s P+P undeveloped locations (1) • Drilling services provided by Paramount's wholly-owne
Slide 14: Midstream & Marketing Strategy
Midstream & Marketing Strategy Midstream Portfolio Positioned for Growth Karr 06-18 • Takeaway capacity secured to manage Montney and Duvernay growth plan through 2021 • Owned and operated infrastructure coupled with 3rd party midstream provides balanced opex structure • Opportunities to increase 3r
Slide 15: Strategic and Long-Term Investments
Strategic and Long-Term Investments 1) Please refer to the heading “Reserves and Other Information” in the Advisories Appendix. 2) Publicly disclosed by competitor. 15
Slide 16: The New Paramount
The New Paramount Intermediate E&P company with an extensive portfolio of liquids-rich unconventional plays and the financial strength to exploit those opportunities Significantly Expanded Reserves: 149 MMBoe PDP, 376 MMBoe Proved, 593 MMBoe P+P (1) Scale with Financial Flexibility Strong Liqu
Slide 17: Appendix: Additional Information
Appendix: Additional Information
Slide 18: Performance
Performance 1) Represents midpoint of 2018 production guidance 2) As evaluated by McDaniel & Associates Consultants Ltd. as of December 31, 2017. 18
Slide 19: Paramount Completion Evolution
Paramount Completion Evolution • Technology and Fluid: Open Hole Packers and Energized Oil • Lateral Length and Stage Spacing: Up to 1,600m and 100m (~16 stages) • Proppant Loading and Proppant Type: Up to 0.6 t/m (400 lbs/ft) and uniform sand size Gen 1 • Cluster Spacing and Pump Rate: Single point
Slide 20: Advisories Appendix
Pararmrmourt resources Itd.
Slide 21: Advisories
Advisories Forward-Looking Information Certain statements in this presentation constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "will", "expect", "plan", "
Slide 22: Advisories (con't)
Advisories (con't) The foregoing list of risks is not exhaustive. The forward-looking information contained in this presentation is made as of the date hereof and, except as required by applicable securities law, Paramount undertakes no obligation to update publicly or revise any forward-looking sta
Slide 23: Advisories (con't)
Advisories (con't) Type well information is based on internal management estimates. Type well information is subject to a number of assumptions and actual results achieved may be materially different than that projected. “Peak 30-day rate” is the highest daily average production rate over a 30-day c
Slide 24: Contact details
2800 - 421 7 Avenue S.W. Calgary, Alberta Canada, T2P 4K9 Telephone: 403.290.3600 Facsimile: 403.262.7994 www.paramountres.com Pararmrmourt resources Itd.
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