Tamarack Valley Energy Ltd. · TSX:TVE
Tamarack Valley Energy — Investor Presentation (June 2021)
26 slides from Tamarack Valley Energy's investor presentation, June 2021
Slide 1: Creating Sustainable Value
TVE : TSX Creating Sustainable Value June 2021 See Disclaimers and Forward-Looking Statements attached
Slide 2: Disclaimers
Disclaimers Forward Looking Statements: Certain information included in this presentation constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”,
Slide 3: Disclaimers (Oil and Gas Advisories)
Disclaimers (Oil and Gas Advisories) Reserves Disclosure: All reserve references in this presentation are to gross reserves as at the effective date of the applicable evaluation. Gross reserves are Tamarack’s total working interest reserves before the deduction of any royalties and including any roy
Slide 4: Corporate Snapshot (TSX: TVE)
Corporate Snapshot (TSX: TVE) Pro Forma Corporate/Market Summary Tamarack Acquisition Tamarack Market Capitalization(1) ($mm) $802 $247* $1,082* Net Debt(1) ($mm) $262 $248 $510 Charlie Lake Enterprise Value(1) ($mm) $1,062 $494* $1,592* Light Oil Bank Line Capacity ($mm) $325 $600 Clearwater Tax Po
Slide 5: Tamarack – Returns Focused Growth
Tamarack – Returns Focused Growth STABLE BASE PRODUCTION AND ADJUSTED FUNDS FLOW(1) • Estimated H2 2021 average production of approximately 39,000 boe/d(2) (70-72% oil and NGL) • Attractive corporate decline rate supported by key waterfloods and highly sustainable Charlie Lake and Clearwater oil pro
Slide 6: Capital Allocation Across Long-Life Oil Assets
Capital Allocation Across Long-Life Oil Assets Portfolio that can deliver near-term and long-term free adjusted funds flow(1) Sustaining Capital(1) Waterflood Management Economic Growth Modest Growth Highly Economic Inventory that Sustains Low Decline, Meaningful Production While Generating Highly E
Slide 7: Leading WCSB Play Benchmarking
7 IRR (%) PV-10 Breakeven WTI @ 20:1 Source: Enverus HH:WTI ($/bbl) 200% 600% 0% 400% $0 $20 $60 $80 $40 Clearwater - Marten Hills TVE Lwr Charlie 571% $30 Lake TVE Lower Charlie Lake Midland 459% $33 Montney - Progress- Gordondale Delaware $35 TVE Nipisi Clearwater TVE Nipisi $36 376% 353% Clearwat
Slide 8: Successfully Executing on Acquisition Strategy
Successfully Executing on Acquisition Strategy Improving sustainability and resiliency, while enhancing free adjusted funds flow(1) profile West Central Alberta Clearwater Sparky / Clearwater Charlie Lake Light Oil July 2020 December 2020 March 2021 April 2021 Acquisition Overview Purchase Price $4
Slide 9: Charlie Lake Light Oil Acquisition – Anegada Oil Corp.
Charlie Lake Light Oil Acquisition – Anegada Oil Corp. The acquisition provides Tamarack with a material contiguous position in the Charlie Lake, one of the leading plays in North America Material, Top Tier • ~12,500 boe/d of production(1) (~71% oil and natural gas liquids) Asset Base with annualize
Slide 10: Lower Charlie Lake Light Oil Play
Lower Charlie Lake Light Oil Play High quality reservoir with rapid production growth in recent years Total Charlie Lake Production: ~40,000 boe/d Lower Charlie Lake Light Oil Play Highlights • Unique and prolific, stacked light oil play (~40o API) • High quality reservoir with porosities of 3-15% a
Slide 11: Highly Economic Lower Charlie Lake Light Oil Locations
Highly Economic Lower Charlie Lake Light Oil Locations Industry leading well performance and payouts 102/04-10 100/05-10 103/16-02 102/09-02 Peak Rate(2): 550 bbl/d Peak Rate(2): 550 bbl/d Peak Rate(2): 516 bbl/d Peak Rate(2): 800 bbl/d 2 Mile Lateral Length Normalized Well Performance(1) 102/12-25
Slide 12: Tamarack’s Clearwater Assets
Tamarack’s Clearwater Assets 400+ identified locations in the Greater Nipisi area and 100+ identified locations in the Jarvie area Greater Nipisi 15-20 West 14-26 West • 103,110 gross (102,710 net) acres of Clearwater lands Stepout Stepout ~300b/d ~240b/d • >380 identified drilling locations(1) for
Slide 13: Large Inventory of Economic Clearwater Locations
Large Inventory of Economic Clearwater Locations Initial production results and capital costs outperforming type curve expectations Nipisi Type Curves(1) Nipisi Type Curve Returns Sensitivity Oil (bbl/d) Tamarack Wells Since Acquisitions Tamarack Average Since Dec 2020 Acquisitions % IRR Commodity P
Slide 14: Clearwater Waterflood Potential
Clearwater Waterflood Potential Tamarack will develop the play with a long-term view to the application of EOR Nipisi/Marten Hills EOR Pilots Evolution of Waterflooding Criteria/Applicability Spur Deltastream Headwater Spur • Other companies have initiated EOR pilot projects (both waterflood and pol
Slide 15: Tamarack’s Waterflood Assets
Tamarack’s Waterflood Assets Improving corporate declines with increasing exposure to assets under waterflood Total Area Prod. Under Total Asset Est. Recovery Est. Ultimate Asset Current Initiatives Prod. Waterflood OOIP(1) to Date(2) Recovery(2) Veteran Viking Adding ~8 new injection patterns in Ve
Slide 16: Tamarack’s Waterflood Assets
Tamarack’s Waterflood Assets Improving corporate declines with increasing exposure to assets under waterflood Production (bopd) Net Waterflooded Oil - Includes 2021 Capital Program 7,000 Penny Barons Veteran Viking Nipisi Slave Point Eyehill Sparky 6,000 5,000 4,000 3,000 2,000 1,000 0 Jan-2020 Apr-
Slide 17: Sustainability at Tamarack
Sustainability at Tamarack Environment, Social & Governance Focus Areas • Reduce greenhouse gas emissions • Understand climate change risks • Innovate to lower energy intensity • Prudently use water where required • Recycle produced water in operations • Innovate to minimize freshwater use • Effecti
Slide 18: Sustainability at Tamarack
Sustainability at Tamarack Indigenous Partnerships Emissions & Land Management • Tamarack is committed to the principles of UNDRIP and 2019 GHG Scope 1 + 2 Intensity by Company (tCO2e/boe) participating in reconciliatory activities 0.10 • The Kainai First Nation and Tamarack actively partner to crea
Slide 19: Investment Summary
Investment Summary Track record of meeting and exceeding estimates Sustainable Returns Focused Strategy to Grow Production and Free Adjusted Funds Flow(1) per Share Management team that has demonstrated its ability to execute and capitalize on opportunities Stable Base Economic Oil Balance Sheet Lea
Slide 20: Appendix
APPENDIX 20 w w w . t a m a r a c k v a l l e y. c a 20
Slide 21: Risk Management – Current Hedges
Risk Management – Current Hedges(1) 48% Enhancing certainty with flexibility to capture upside value (2),(3) 50% Oil price protection in 2021 Target oil hedging for 2021 Oil Hedge Coverage(3) Q2 2021 Q3 2021 Q4 2021 60% WTI Put Volume (bbls/d) 2,750 3,250 50% Average Put/Premium (USD/bbl) $50.14 $1.
Slide 22: Viking Waterflood Wedge
Viking Waterflood Wedge Building sustained long-term, high-netback and low-decline oil production 2018 - 2020 Base 2021 Wedge Actuals Production (bopd) 2019 Capital Efficiency using peak rate of 800 bopd - $34,100/boe/d 4,000 2020 Capital Efficiency using peak rate of 1,700 bopd - $19,800/boe/d 2021
Slide 23: Eyehill Sparky Waterflood
Eyehill Sparky Waterflood Building sustained long-term, high-netback and low-decline oil production Gross Injection Rate (bbl/d) Gross Oil Rate (bbl/d) Water Cut 63 gross producing horizontal wells 4 new wells (Q1 2021) delivering 8000 100 + 9 horizontal injectors ~115 boe/d per well 7000 90 Oil Pro
Slide 24: Viking Waterflood 5+ Year Plan Update
Viking Waterflood 5+ Year Plan Update Building long-term free adjusted funds flow(1) growth Waterflood Production 8,000 • Waterflood associated volumes ONLY included in capital / production 7,000 (excludes existing primary base production and future primary development) 6,000 • Includes incremental
Slide 25: Notes
Notes Page 4 1. See Disclaimers – “Non-IFRS Measures” 2. As at December 31, 2020, adjusted for the previously announced March acquisitions, proforma the Anegada Acquisition 3. Tamarack Valley based on the independent reserves evaluation prepared by GLJ Ltd. dated February 8, 2021 and effective Decem
Slide 26: Notes
Notes Page 11 1. Lateral length normalized to 3,000m, based on a 1:1 ratio of lateral length to well performance 2. Peak monthly calendar day rate 3. Lateral lengths as per Geoscout; 46% of wells are greater than 2,700m 4. As per Sproule report effective December 31, 2020. Flat US$55.00/bbl WTI, US$
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