Valeura Energy Inc. · TSX:VLE
Valeura Energy — Investor Day (May 2018)
83 slides from Valeura Energy's investor day presentation, May 29, 2018
Slide 1: Investor Day 2018: Introduction
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION INVESTOR DAY 2018 Generating value from a world-class Basin-Centered Gas-Condensate Play Introduction May 29, 2018
Slide 2: General Advisory and Forward-looking Information
General Advisory The information contained in this presentation does not purport to be all-inclusive or contain all information that readers may require. Prospective investors are encouraged to conduct their own analysis and review of Valeura Energy Inc. (“Valeura”, “VLE”, the “Corporation”, “us”, “
Slide 3: Forward-looking Information (continued)
Forward-looking Information (continued) Forward-looking information is based on management’s current expectations and assumptions regarding, among other things: political stability of the areas in which the Corporation is operating and completing transactions, and in particular the aftermath of the
Slide 4: Agenda
Agenda Positioned to unlock shareholder value in 2018 Item Subject Time 1 Introduction / Corporate History 9:00 – 9:20 2 Turkey – Market, Macro-economics and infrastructure 9:20 – 9:50 3 Geological / Volumes Technical story 9:50 – 10:20 Break 10:20 – 10:35 4 Development and Value story 10:35 – 11:15
Slide 5: Share Price Performance
Share Price Performance Top Performing Canadian-listed Oil & Gas Company (“VLE”) - >350% return in 2017 Nov 27, 2017: VALEURA ANNOUNCES POSITIVE INTERIM PRODUCTION TEST RESULTS AND CONFIRMS NATURAL GAS AND CONDENSATE DISCOVERY AT THE YAMALIK-1 WELL VWAP: $0.64/share VWAP: $4.53/share Volume: 9.0 mil
Slide 6: Value of the gas discovery is not reflected in share price
Value of the gas discovery is not reflected in share price Compelling Investment § Top-performing TSX oil & gas stock in 2017 – Validated world class BCGA by discovering high-pressure gas over ~1,300m vertical section and well TD’d still in gas pay – Fraced and flowed gas from 4 production tests ove
Slide 7: Investor Day Objectives
Investor Day Objectives § Provide context on Turkey – Explain why we like doing business there § Technical deep dive – Share what we know about the BCGA – Describe learning objectives for the the appraisal program – Development timing and considerations § Draw a link between volumes and value based
Slide 8: Discovery - Value S-Curve
Discovery - Value S-Curve Typical value-add timeline Production • Production Development • Growing volumes • Steady-state activity Appraisal • High capital raise required • Focus on • Engineering, planning • Proof of efficiency focus concept • Large-scale execution Share Value à • Commercial de-risk
Slide 9: Capital Structure
Capital Structure Keeping it simple Yamalik-1 well, production test #1 Debt Nil Common shares only 85.7 million o/s basic Fully Diluted 91.0 million o/s Share Price(1) $4.23/share Market Cap(1) $363 million High Liquidity(2) 30-day average Relative trading volume / shares o/s volume 0.80% 0.60% VET
Slide 10: Financial Statement Extract
Financial Statement Extract Strong Balance Sheet (1) Cash $57 MM Working Capital $58 MM Assets $131 MM Conventional production 859 Boe/d Gas price $7.37/Mcf Netback $25.34/Boe Balance sheet is very strong, well-positioned to execute through 2019 KCA Deutag T-207 Drilling at Yamalik-1 – July 2017 (1)
Slide 11: Internationally Experienced Executive and Board
Internationally Experienced Executive and Board Sean Guest Steve Bjornson Lyle Martinson Rob Sadownyk Barry Wihak President, CEO, Director CFO COO VP, Exploration VP, Business Development Tim Marchant Russel Hiscock Jim McFarland Ron Royal Stephanie Stimpson Chairman Director Director, Director Corp
Slide 12: Asset Base Built in Pursuit of Conventional Gas
Asset Base Built in Pursuit of Conventional Gas Valeura Acreage Facts Gas Pipeline 2P Reserves(1) 7.8 MM boe TANAP-TAP Valeura Lands Production(2) 859 boe/d Reserves Life 21 years Land (conv)(3) 432,297 ac. Infrastructure Valeura owns and operates the local network of gas processing and sales lines
Slide 13: Built a Controlling Land Position for the Unconventional
Built a Controlling Land Position for the Unconventional W.T. Banarli Licenses Leases BCGA Outline(2) West Thrace Licenses Valeura acreage (278,354 net acres deep rights) Tekirdag Leases (1) Under the Statoil Banarli Farm-in, to earn their 50% working interest, Statoil must fully fund i) the drillin
Slide 14: News Flow
News Flow Key events over the next 12-18 months 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 TAPL Acquisition Acquisition Closed Tie-in and testing Yamalik-1 Resource Rpt, Financing Res. Rpt $ Financing closed Inanli-1 Deep Well (West Thrace) Deep Well (Banarli) Hayrabolu-10 (contingent)(1) Drill
Slide 15: A Global Energy Company Focused on Exceptional Value Creation
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION
Slide 16: Turkey Oil and Gas Business Climate
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION INVESTOR DAY 2018 Generating value from a world-class Basin-Centered Gas-Condensate Play Turkey Oil and Gas Business Climate May 29, 2018
Slide 17: Agenda
Agenda Positioned to unlock shareholder value in 2018 Item Subject Time 1 Introduction / Corporate History 9:00 – 9:20 2 Turkey – Market, Macro-economics and infrastructure 9:20 – 9:50 3 Geological / Volumes Technical story 9:50 – 10:20 Break 10:20 – 10:35 4 Development and Value story 10:35 – 11:15
Slide 18: Turkey - Excellent Country for Oil and Gas Business
Turkey - Excellent Country for Oil and Gas Business Favorable Macro Environment • Growing Economy • Strong market for more gas • Government and regulators encouraging foreign investment • Government Strategy to be an Energy Hub Excellent Oil and Gas Investment Climate • Premium gas prices ~$7.50/mcf
Slide 19: Strong Market Fundamentals
Strong Market Fundamentals Turkey’s economy is growing Gas demand mirrors GDP growth Real 2011 US$ Gas consumption Million tonnes oil equivalent % $27,500 .4% 45 8.6 R6 G R $23,500 CA G 40 CA 35 $19,500 30 25 $15,500 20 $11,500 15 $7,500 10 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 00 01 02
Slide 20: Turkey Primary Energy Flows
Turkey Primary Energy Flows Turkey Production and Millions of tonnes of oil equivalent BALANCE (2015) imports Total final (143.84 Mtoe) consumption (93.52 Mtoe) Oil production Oil imports Refinery Transport Oil product imports Non-energy use Coal production Coal imports Power Station Gas production
Slide 21: Strong Natural Gas Pricing in Turkey
Strong Natural Gas Pricing in Turkey Turkish Lira vs Canadian Dollar § BOTAS1 Gas Sales Price is set by the government and in Turkish Lira (TL) § Price changes at times of large differentials between EU and BOTAS § BOTAS import contracts are confidential, but data suggests import price may be simila
Slide 22: Globally Competitive Fiscal Terms
Globally Competitive Fiscal Terms Comparative Fiscal Take A fiscal “sweet spot” Gas terms for countries with unconventional potential § Simple and transparent system Percent – Royalties and taxes only 0 20 40 60 80 100 (12.5% and 22%, respectively) Ukraine – No sliding scales, rate-of-return factors
Slide 23: Fiscal Term & Gas Price Comparison
Fiscal Term & Gas Price Comparison1 § Assumes an identical horizontal well – Capital cost of US$9 million – Generic unconventional production profile with a recovery of 7.7 Bcfe § Fiscal terms & prices varied for each region § Higher value in Turkey driven by gas prices which are more than double pr
Slide 24: Gas Infrastructure Supports Growth
Gas Infrastructure Supports Growth Leverage infrastructure for early cash flow and long-term testing of the BCGA Tier 1 – Production while Exploring and Appraising § 50 mmcf/d § Utilize Valeura’s extensive gathering system Tier 2 – Increased Production during early project development § Incremental
Slide 25: Valeura's Existing Gas Infrastructure
Valeura’s Existing Gas Infrastructure Leverage infrastructure for early cash flow and long-term testing of the BCGA § Extensive gathering system BOTAS 2x36" Russian Gas § Gas plant & compression facilities § Integrated midstream/ downstream business GAZDAS –Direct Gas Sales Agreements in 12”Distribu
Slide 26: Immediate Condensate Sales
Immediate Condensate Sales § Condensate generally tracks Brent Pricing Yamalik-1 Opet Tank Storage Tupras Refinery § Valeura produced only 3,185 barrels of condensate last year § Valeura currently handles condensate separation and storage at each wellsite § Condensate Transportation: 1. Condensate i
Slide 27: Infrastructure to Support Major Gas Project
Infrastructure to Support Major Gas Project § Turkey’s Strategy is to be an “Energy Hub” between Gas Supply to the East and Gas Demand to the west (Europe) § Currently building import pipelines and capacity that will exceed domestic demand projections Gas Pipeline TANAP-TAP Valeura Tie-in to major i
Slide 28: Turkey Building a Regional Energy Hub
Turkey Building a Regional Energy Hub Turkey's Metcap, Qatar's Fusion Dynamics to invest $5.2 bln in Turkey (April 9th, 2018)1 Petrochemicals Complex – $4 billion natural gas-based chemical facility in the Thrace region – Production of polypropylene and polyethylene corresponding to 30 percent of Tu
Slide 29: Turkey - Investment Stability
Turkey - Investment Stability Fiscal Stability § Strong domestic economic growth § Turkey is significant manufacturer with strong external trading relationships § Economy heavily reliant on capital inflows - Government seeking foreign investment § Oil and Gas fiscal terms have remained constant – ev
Slide 30: Significant Mining Investment Continues in Turkey
Significant Mining Investment Continues in Turkey TSX & TSXV Listed Mining Companies Operating in Turkey Primary 1-Year Company Market Cap ($MM) Mine Commodity Stage Return $729 Cevizlideere Copper Exploration 21% Copler Gold Operating Gediktepe Gold Feasibility $2,622 Agi Dagi Gold Feasibility 0% C
Slide 31: Western Turkey is the Perfect Locale for a Large Gas Resource
Western Turkey is the Perfect Local for a Large Gas Resource! Canada Western Europe Frontier • Upside prospectivity • Access to markets • Prohibitive costs • No export options • High gas prices • Long time lines (pipeline opposition, no • Limited prospectivity LNG) • Environmental opposition • Some
Slide 32: A Global Energy Company Focused on Exceptional Value Creation
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION
Slide 33: BCGA Geology
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION INVESTOR DAY 2018 Generating value from a world-class Basin-Centered Gas-Condensate Play BCGA Geology May 29, 2018
Slide 34: Agenda
Agenda Positioned to unlock shareholder value in 2018 Item Subject Time 1 Introduction / Corporate History 9:00 – 9:20 2 Turkey – Market, Macro-economics and infrastructure 9:20 – 9:50 3 Geological / Volumes Technical story 9:50 – 10:20 Break 10:20 – 10:35 4 Development and Value story 10:35 – 11:15
Slide 35: Thrace Basin Summary
Thrace Basin Summary § More than 900 wells have been drilled in the basin § More than 40 fields have been discovered § Total production to date is ~ 900 Bcf § Conventional gas fields generally small (<100 Bcf) § Production of gas and oil from basin for past 50 years 50 km Istanbul BCGA Outline • Col
Slide 36: Unconventional Play - What is a BCGA?
Unconventional Play – What is a BCGA? Western Canada Deep Basin § Pervasive, basin-centered gas accumulations trapped in low Greater Green River Denver permeability rock Piceance/Uinta § "Potentially, one of the more San Juan Anadarko economically important unconventional gas systems in the world”1
Slide 37: Significant Evidence Supporting the Thrace Basin BCGA
Significant Evidence Supporting the Thrace Basin BCGA What do we need for commercial success? 1. Reservoir - Significant volume of reservoir to hold the gas 2. Gas - Pervasive over-pressured gas 3. Flow - Ability of the reservoirs to flow at commercial rates 5
Slide 38: Extensive 3D Seismic Coverage
Extensive 3D Seismic Coverage Kepirtepe 3D Vakiflar 3D BCGA Boundary Alacaoglu 3D Hayrabolu 3D 204 km2 Karaca 3D 504 km2 Banarli 3D Corlu 3D 152 km2 Osmanli-Tekirdag Merged 3D 404 km2 § 3D Coverage: > 1,900 km2 § 2D Coverage: > 6,000 km 6
Slide 39: Yamalik-1 Drilled ~1300m of Overpressured Gas
Yamlik-1 Drilled ~1300m of Overpressured Gas Yayli-1 Yamalik-1 Ergene-1 Osmancik Mezardere Teslimkoy Kesan 2,500m 3,000m 4,000m Depth Axis not exact as squeezed to fit seismic data 5,000m Overpressured Tight Gas 7
Slide 40: Thick Kesan Formation Reservoir
Thick Kesan Formation Reservoir Kesan Outcrop A A’ Mezardere § Average thickness of Teslimkoy/Kesan section Teslimkoy/ 2,000 m to 3,000 m thick Kesan § Stacked turbidite channels and lobes with interbedded source rock 1,144 m N/G: 0.44 ɸave: 5.0% § Yamalik-1 net/gross: 0.44 and porosity ave: 5.0% ac
Slide 41: All Wells within BCGA have Overpressured Gas
All Wells within BCGA have Overpressured Gas Key Wells Significantly Overpressured Gas Deep, near hydrostatic pressure Inanli-1 Appraisal Well 9
Slide 42: All Wells within BCGA Outline have Overpressured Gas
All Wells within BCGA Outline have Overpressured Gas Pancarkoy-1 Depth: 4,770,m Karakavak-1 Alacaoglu-1 (1993) Alacaoglu-2 (1994) Depth: 4,243 m Depth: 3760m Depth: 3,162 m Pressure Gradient: 0.83 psi/ft Pressure Gradient: 0.65 psi/ft Pressure data from Mudweight Pressure data from mudweight Perf: F
Slide 43: Data Supporting Sustained Commercial Flow
Data Supporting Sustained Commercial Flow § Need to understand the flow potential of 1. the “Matrix”, 2. Natural Fractures, and 3. Induced Fractures (Fracing) § Current Status Fracture – Demonstrated that gas and condensate will flow Matrix to surface after fracing – Only 2 wells have been Frac’d –
Slide 44: Commercial Flow - Natural Fractures
Commercial Flow – Natural Fractures Yamalik-1 Well Data Core § In many BCGA, natural fractures important Image Log Interpretation – Range in scale from large scale faults to micro-fractures § Fracture Mapping– Micro à Macro Open – Thin section images from cores – Interpretation of core and borehole
Slide 45: Seismic coherency interpreted to be related to Natural Fracturing
Seismic coherency interpreted to be related to Natural Fracturing Inanli-1 Yamalik- 1 Mezardere Teslimkoy Kesan 13
Slide 46: Yamalik-1 Completion and Production Testing
Yamalik-1 Completion and Production Testing 3,100 3,200 Flowback Frac Treatment Pressure & Perm 3,300 Flowback 4: Frac Stage 8: 6T 100 mesh + 58T 30/50 Pore Pressure: 0.72 psi/ft Completed 66m pay 423m3 slickwater Matrix Perm: <0.001 md Recovered 27% of total fluid 3,400 Final 24hr ave rate: Frac St
Slide 47: Production Growth per well - exploration to development
Production Growth per well – exploration to development • Jonah and Pinedale are vertical development well analogues of Thrace Basin BCGA • Production rates from first exploration wells <5% of average rate achieved during development drilling • Infill appraisal wells still only 20-40% of maximum ach
Slide 48: Gas Volumes and Upside Potential
Gas Volumes and Upside Potential Reservoir Cross Section D&M 2017 Prospective Resource Report Yamalik-1 10km Recoverable Unconventional Natural Gas (Bcf) Unrisked (Valeura Working Interest Lands) Osmancik Low Best High Mean Mezardere Estimate Estimate Estimate Estimate Teslimkoy 3,229 7,652 20,077 1
Slide 49: 2018/2019 Appraisal Objectives
2018/2019 Appraisal Objectives Prove up Gas Inplace volumes § Demonstrate that the over-pressured gas is pervasive across the basin § Test for the Reservoir floor by drilling and evaluating to ~5,000 m § Test the shallower Mezardere formation for upside volumes § Demonstrate the condensate potential
Slide 50: Inanli-1 Appraisal Well
Inanli-1 Appraisal Well § ~ 6 km NE of Yamalik-1 § Planned TD 5,000 m § Basinward and stratigraphically deeper than Yamalik-1 § Expect ~1,600 m of high net/gross Teslimkoy/Kesan reservoir will be penetrated § Located on a prominent basement high with seismic indications of A Yayli-1 Yamalik-1 Inanli
Slide 51: A Global Energy Company Focused on Exceptional Value Creation
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION
Slide 52: Development Scenarios and Timing
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION INVESTOR DAY 2018 Generating value from a world-class Basin-Centered Gas-Condensate Play Development Scenarios and Timing May 29, 2018
Slide 53: Agenda
Agenda Positioned to unlock shareholder value in 2018 Item Subject Time 1 Introduction / Corporate History 9:00 – 9:20 2 Turkey – Market, Macro-economics and infrastructure 9:20 – 9:50 3 Geological / Volumes Technical story 9:50 – 10:20 Break 10:20 – 10:35 4 Development and Value story 10:35 – 11:15
Slide 54: Thrace BCGA Development Phases
Thrace BCGA Development Phases Building value and de-risking over time § 2018/2019 Appraisal Program to provides additional reservoir data to prove extent of reservoir, information by zone, longer term production testing § Early Production Scheme in 2020 and beyond to provide additional production t
Slide 55: Thrace BCGA North American Analogs
Thrace BCGA North American Analogs § Currently there is limited information to extrapolate to development value § Basin analogs assist in shaping the future Thrace BCGA scale and value range until the Appraisal Program and Early Production Scheme can better define the play § Analog fields are those
Slide 56: Granite Wash Play in North America
Granite Wash Play in North America § The Granite Wash Play is in Anadarko Basin straddling the Texas – Oklahoma border Overlay of § Multi-stacked resource play the Thrace BCGA area with potential of 40 Hz wells/section (16 surface acres/well) due to stacked laterals(1) § Wells drilled up to 2010(1)
Slide 57: Granite Wash Comparison to the Thrace BCGA
Granite Wash Comparison to the Thrace BCGA § The Granite Wash Play in the Anadarko Basin is a close analog to the Thrace BCGA with respect to: § Geological deposition § Depth § Reservoir quality § Stacked pay § Mineralogy § Overpressure Comparison Table Yamalik-1 Anadarko Basin – Granite Wash(3) Ana
Slide 58: Granite Wash Productivity
Granite Wash Productivity (2) § Operators in the Granite Wash: § Shifted from vertical to horizontal drilling from 2007 to maximize returns using the new technology § Shifted to the higher liquid layers of the upper Granite Wash formation as gas prices fell off in the US § Targeted the proximal area
Slide 59: Option to Develop with Horizontals or Verticals
Option to Develop with Horizontals or Verticals Gas Inplace (OGIP) Profile with Depth from Yamalik - 1 § The massive vertical section in the 20 acre 208 acre vertical well horizontal well Thrace BCGA provides options to maximize recovery § Upper layers have higher porosity and Teslimkoy and Upper Ke
Slide 60: Vertical Configuration Horizontal Configuration
Vertical Configuration Horizontal Configuration Example pad on 20 acre Example pad on 208 acre vertical well spacing horizontal well spacing Wells will be spaced to allow 1,000 m for frac design and orientation of least stress (ie fracs likely to 3 horizontal wells 2,000 m orient E-W) per formation
Slide 61: Focusing on the Development Sweetspot
Focusing on the Development Sweetspot § Appraisal wells and the early production scheme will target: reservoir sweetspots economic sweetspots – Highest reservoir quality and resource density – Lowest drilling and completion costs – Highest # of fractures – Highest completion productivity vs cost – H
Slide 62: BCGA Risked Volume and Profile
BCGA Risked Volume and Profile § D&M has independently determined: – WI Prospective Mean Resource Estimation of 5.2 Tcf (risked)(1) or 12.5 Tcf on a gross basis § An illustrative production profile to recover D&M 12.5 tcf (risked Gross): Contract 5 yr 10 year 10 year 20 year production term – Gross
Slide 63: BCGA Drilling at Scale is Achievable
BCGA Drilling at Scale is Achievable Wells § Valeura holds a large land position over the Thrace BCGA: Play Drilled (1) Dates Barnett 20,218 To date – 250,745 gross acres held with partners over the BCGA Eagleford 17,951 To date (D&M mean prospective area) Bakken 13,165 To date Permian 12,769 Post 2
Slide 64: Thrace BCGA Drilling Scale
Thrace BCGA Drilling Scale 13
Slide 65: Thrace BCGA D&C Cost Analog
Thrace BCGA D&C Cost Analog § The cost of a tight gas development project is driven primarily by drilling and completion (D&C) capex (ie >90% of total cost) § The horizontal wells drilled in the Duvernay play are expected to be a reasonable analog to the Thrace BCGA in terms of depth and drilling co
Slide 66: Turkey's Fiscal Terms & Gas Price Can Provide Superior Returns
Turkey’s Fiscal Terms & Gas Price Can Provide Superior Returns § Turkey’s robust gas price is a major Economics Compare: economic differentiator § 3 different regions (fiscal terms, product prices) § 3 different production curves (reserve range of 3.9 Bcfe to 11.5 Bcfe) § Compared to NA, projects in
Slide 67: BCGA Conceptual Development Timeline
BCGA Conceptual Development Timeline 2018 2019 2020 2021 2022 2023 2024 Appraisal Program Includes appraisal well tie- ins and long term Early Production production testing. Scheme Note: Conceptual only - number of wells and timing still to be determined by JV Includes development well drilling (mul
Slide 68: Valuing the Thrace BCGA
Valuing the Thrace BCGA § There are no apparent showstoppers or barriers to commerciality, based on: – Geological understanding based on logs, cores and extensive 3D seismic – Evidence of a BCGA delineated by existing wells – Successful exploration well production test from Yamalik-1 – Material reso
Slide 69: Implied BCGA Value Compared to US Unconventional Deals
Implied BCGA Value Compared to US Unconventional Deals Implied VLE BCGA Land Value: Market Cap (@$5.00) C$455 million Working Capital - C$ 58 million 2P Reserves Value - C$ 65 million Implied BCGA Value =C$ 330 million Implied BCGA Value US$ 258 million Net Acres(D&M Report): 103,000 Implied BCGA Va
Slide 70: A Global Energy Company Focused on Exceptional Value Creation
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION
Slide 71: Operations
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION INVESTOR DAY 2018 Generating value from a world-class Basin-Centered Gas-Condensate Play Operations May 29, 2018
Slide 72: Agenda
Agenda Positioned to unlock shareholder value in 2018 Item Subject Time 1 Introduction / Corporate History 9:00 – 9:20 2 Turkey – Market, Macro-economics and infrastructure 9:20 – 9:50 3 Geological / Volumes Technical story 9:50 – 10:20 Break 10:20 – 10:35 4 Development and Value story 10:35 – 11:15
Slide 73: Yamalik-1: Completion and Frac Program
Yamalik-1: Completion and Frac Program Completion Objectives 1. Obtain Pressure Data 2. Prove Fracability 3. Mobilize Hydrocarbons Completion Results 1. Obtained reservoir pressure data proving overpressure 2. Successfully frac’d 8 zones and placing 462 T of sand 3. Flowed gas and condensate to surf
Slide 74: Yamalik-1: Recompletion and Long Term Test
Yamalik-1: Recompletion and Long Term Test Current Wellbore Schematic Recompletion Procedure • Rig up Snubbing Unit and Flow Back Test Equipment. • Mill out plugs and clean to TD • Snub out drilling assembly • Snub in with tubing work string to TD • Flow well on cleanup from TD (48 – 96 hrs) • Re-la
Slide 75: Yamalik-1: Long Term Test
Yamalik-1: Long Term Test • Test Equipment will be used as a temporary facility until we have sufficient flow data to size and order final production equipment • Yamalik will be tied into the TBNG gathering system to avoid flaring and generate immediate revenue • 4.1 km flowline is required Yamalik-
Slide 76: 2018 Drilling Plan
2018 Drilling Plan Preparing for a three well program Wellhead: 13 5/8'' 15K - Compact Wellhead 40'' OH § TD: 5,000 m 30'' Conductor@40m MD 24'' OH § Bottom Hole Pressure: 103 MPA (15,000 psi) Max PP: 1.03sg 18 5/8'', 87.5#, K-55 Min FG: 1.74sg BTC Csg @ 300m MD § Bottom Hole Temperature: 198 Degree
Slide 77: A Global Energy Company Focused on Exceptional Value Creation
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION
Slide 78: Backup Slides
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION INVESTOR DAY 2018 Generating value from a world-class Basin-Centered Gas-Condensate Play Backup Slides May 29, 2018
Slide 79: Valeura - Positioned for Realizing Upside
Valeura – Positioned for Realizing Upside World Class Project • 12.5 Tcfe Risked Resource • 5.2 Tcfe Net Valeura Resource • High Value Gas • Proximal to major gas infrastructure • Major domestic gas market and on Europe’s “Doorstep” • 20-40 Year Project Life • Excellent partner in Equinor Production
Slide 80: 2018 1Q Results
2018 1Q Results Financial and Operating Results Summary Three Months Ended Three Months Ended Three Months Ended March 31, 2018 December 31, 2017 March 31, 2017 Financial (thousands of CDN$ except share and per share amounts) Petroleum and natural gas revenues 3,469 3,824 3,088 Adjusted funds flow (
Slide 81: 2017 Year-End Company Gross Reserves and Values
2017 Year-End Company Gross Reserves and Values(1)(2)(3)(4) Company Gross Reserves Volumes and Values RESERVES NPV10 (Mboe) ($ MILLIONS - $MM) % % 2017 2016 CHANGE 2017 2016 CHANGE Proved Developed producing 602 470 28 5.5 9.4 -41 Developed non-producing 311 405 -23 4.7 6.9 -32 Undeveloped 1,298 692
Slide 82: Conventional Gas Production
Conventional Gas Production 3) Mature portfolio on new Karaca 2) Portfolio of small but low cost in-field or 500 km2 3D Seismic near-field prospects • Focused low-cost drilling program • Improved chance of success 5 km Karanfiltepe-7 Guney Karababa-2 Yamalik-1 Bati Yayli-1 Dogu Osmanli-2 Dogu Gurgen
Slide 83: A Global Energy Company Focused on Exceptional Value Creation
A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION