24 slides from Paramount Resources Ltd. Class A's investor presentation, November 2016
Slide 1: Corporate Presentation November 2016
Corporate Presentation November 2016
Slide 2: Future Oriented Information
Future Oriented Information (See additional advisories at the end of this document) • In the interest of providing information regarding Paramount Resources Ltd. ("Paramount" or the "Company") and its future plans and operations, this presentation contains certain forward-looking information and for
Slide 3: Corporate Profile
Corporate Profile Corporate Profile Strategic Investments/Emerging Plays • Founded in 1976; IPO in 1978; TSX: POU • Emerging Montney plays at Valhalla and Birch • Q3 2016 production: 24,786 Boe/d (~40% Liquids) • Emerging Duvernay play at Willesden Green • Ongoing Operations Production: 11,148 Boe/d
Slide 4: Summary of Musreau/Kakwa Sale Transaction
Summary of Musreau/Kakwa Sale Transaction $2.1 Billion •~$0.5 Billion Cash •Assumption of US$450 MM 2023 Notes •33.5 MM shares of Seven Generations: ~$1.0 Billion (monetized 24.7MM shares for $715 MM net proceeds) Sold • ~30,000 Boe/d Sales Volumes(1) • 295 MMBoe P+P Reserves(2) • $535 Million PDP N
Slide 5: Karr/Gold Creek
Karr/Gold Creek Cretaceous and Montney targets Formation Sections(1) Gross Net Cardium 31 23.0 Dunvegan 33 24.3 Wilrich 48 39.3 Falher 50 40.0 Gething 54 45.0 Montney 96 80.6 • Q3 Sales: 5,237 Boe/d • 40 MMcf/d plant capacity currently being expanded to 80+ MMcf/d (Q2 2017 completion) • Four-rig dri
Slide 6: Karr Economics: Montney
Karr Economics: Montney Assumptions: Economics @ $2.75/GJ AECO Capital: $10.2 MM d/c/e/t US$/Bbl WTI $35 $40 $45 $50 $55 IP30 (raw): 7.1 MMcf/d NPV 10% $MM 3.3 5.3 7.1 8.9 10.6 Raw Natural Gas EUR: 7.0 Bcf Stabilized Condensate EUR: 490 MBbl IRR (%) 24 35 47 61 76 Total Sales per Well: 1.6 MMBoe Pay
Slide 7: 15-14-065-06W6M Daily Separator Volumes
15-14-065-06W6M Daily Separator Volumes (Excluding Zero Days)(1) (1) Volumes herein consist of natural gas and liquids volumes measured at the wellhead separator. Natural gas sales volumes are approximately 10 percent lower and stabilized condensate sales volumes are approximately 15 percent lower d
Slide 8: Smoky/Resthaven
Smoky/Resthaven Cretaceous and Montney targets Formation Sections (1) Gross Net Cardium 74 44.3 Dunvegan 113 80.4 Wilrich 115 84.9 Falher 115 84.9 Gething 107 81.2 Montney 80 78.2 • Paramount owns 54 MMcf/d (~18%) of the Smoky Deep Cut facility and 10 MMcf/d (50%) of the Resthaven facility • Q3 Sale
Slide 9: Smoky/Resthaven Economics: Montney
Smoky/Resthaven Economics: Montney Assumptions: Economics @ $2.75/ GJ AECO Capital: $9.0 MM d/c/e/t US$/Bbl WTI $35 $40 $45 $50 $55 IP30 (raw): 3.4 MMcf/d Raw Natural Gas EUR: 3.0 Bcf NPV 10% $MM 0.4 1.2 1.9 2.6 3.4 Stabilized Condensate EUR: 317 MBbl IRR (%) 12 16 19 23 28 Total Sales per Well: 894
Slide 10: Valhalla
Valhalla • ~64 sections (~48 net) Montney rights • ~58 sections (~44 net) Doig rights • Three development horizons: • Upper Montney/Doig • Middle Montney • Lower Montney • 16 wells currently tied in • Q3 Sales: ~842 Boe/d • Evaluating long term production/economics to determine future investment lev
Slide 11: Valhalla Economics: Montney
Valhalla Economics: Montney Assumptions: Economics @ $2.75/GJ AECO Capital: $6.4 MM d/c/e/t US$/Bbl WTI $35 $40 $45 $50 $55 IP30 (raw): 4.8 MMcf/d NPV 10% $MM 0.6 1.3 1.9 2.5 3.1 Raw Natural Gas EUR: 5.0 Bcf IRR (%) 13 17 21 26 30 Stabilized Condensate EUR: 150 MBbl Total Sales per Well: 957 MBoe Pa
Slide 12: Birch
Birch • Montney shale play (50% WI) • ~60 sections (~30 net) Montney rights • Seven Hz Montney wells drilled to date • NGL yields average 50 Bbl/MMcf • New 20 MMcf/d facility onstream December 2015 • Q3 Sales: 1,138 Boe/d 12
Slide 13: Birch Economics: Montney
Birch Economics: Montney Assumptions: Economics @ $2.75/GJ AECO Capital: $7.2 MM d/c/e/t US$/Bbl WTI $35 $40 $45 $50 $55 IP30: 5.8 MMcf/d NPV 10% $MM 0.1 1.1 2.1 3.0 4.0 Raw Natural Gas EUR: 6.0 Bcf IRR (%) 11 17 24 32 41 Stabilized Condensate EUR: 200 MBbl Total Sales per Well: 1.2 MMBoe Payout (Ye
Slide 14: Willesden Green Duvernay Shale Play
Willesden Green Duvernay Shale Play • 58,692 acres of land (100% WI) • Drilled and completed 3 Hz Duvernay wells to date: Cumulative production to September 30, 2016 Natural Gas Oil and NGLs MMcf MBbl 03/16-13-39-5W5 202.9 110 7-19-39-5W5 118.5 31 3-28-39-5W5 98.4 43 Total 419.8 184 • 11-32-038-05W5
Slide 15: Paramount Investments
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Slide 16: Paramount Investments and Cash
Paramount Investments and Cash (1) Includes cash proceeds receivable on Seven Generations share monetization due December 2016. 16 16
Slide 17: Paramount 100% Subsidiary Investments
Paramount 100% Subsidiary Investments (1) As publicly disclosed by a large U.S. public E&P company with significant landholdings in the Liard Basin. The resource evaluation disclosed by such E&P company was not noted as having been prepared independently or by a qualified reserves evaluator or audit
Slide 18: Quarterly Operating Results
Quarterly Operating Results 18 18
Slide 19: Reserves
Reserves 1) Principal properties reserves, exclude bitumen reserves related to the Hoole oilsands development. Reserves evaluated by McDaniel &Associates Consultants Ltd. in accordance with National Instrument 51-101 definitions, standards and procedures. Columns may not add due to rounding. (2) Dec
Slide 20: Summary
Summary Exposure to significant reserve opportunities • Deep Basin: Montney, Cretaceous • Valhalla: Montney, Doig • Birch: Montney • Willesden Green: Duvernay Significant asset value • Trilogy • Seven Generations • MEG Energy • Cavalier Energy • Liard Shale Gas • Northern Frontier Resources • Invest
Slide 21: Advisories Appendix
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Slide 22: 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 23: Advisories (con't)
Advisories (con't) Paramount has provided information with respect to certain of its plays and emerging opportunities which is "analogous information" as defined in NI 51-101. This analogous information includes Paramount's internally generated production type curves for certain of its wells and int
Slide 24: Paramount Resources Ltd. contact details
Pararmourmsret : resources ltd: ; Paramount Resources Ltd. 4700 Bankers Hall West 888 Third Street S.W. Calgary, Alberta Canada, T2P 5C5 Telephone: 403.290.3600 Facsimile: 403.262.7994 WWW.paramountres.com