Athabasca Oil Corporation · TSX:ATH
Athabasca Oil — BMO Capital Markets 11th Annual Unconventional Resource Conference (January 2014)
24 slides from Athabasca Oil's conference presentation, Jan 14, 2014
Slide 1: BMO Capital Markets 11th Annual Unconventional Resource Conference
> , \ | ‘4 | | ATHABASCA Wd A OIL CORPORATION ——J BMO Capital Markets 11th Annual Unconventional Resource Conference January 14, 2014
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forward-looking information. The use of any of the words “anticipate,” “plan,” “continue,” “estim
Slide 3: A Unique Opportunity in Alberta
A Unique Opportunity in Alberta A growth strategy built on material thermal oil sands and light oil developments Assets • Extensive positions in Alberta’s prolific thermal oil sands and light oil resource plays • Located in a stable fiscal jurisdiction People • Experienced teams Funding • Early cash
Slide 4: Pillars of Growth, Complementary Assets
Pillars of Growth, Complementary Assets Light Oil Light Oil barrels of oil Caribou Q3 2013 ~5,800 equivalent per day production (boe/d)(1) Thermal Oil million (MM) acres Land base > 2.7 (net) Proved plus ~ 22.0 MMboe probable reserves Hangingstone Thermal Oil Land base > 1.5 MM acres (net) Proved pl
Slide 5: Delivering Results
Delivering Results Thermal Oil Contingent Resource Growth Thermal Oil Project Approvals 14 Divested contingent 12 resources 10 • 2 approvals: MacKay, Hangingstone Project 1 (HS1) AOC contingent (Bboe) 8 resources (best estimate) • 3 pending: Dover, Dover West Sands Project 1 6 4 (DWS1), Leduc pilot
Slide 6: Financial Overview
Financial Overview TSX : ATH ($ millions Cdn, unless otherwise stated) 2014 Capital Budget(4) Market Capitalization(1) $2,597 ($ millions) Shares Outstanding 400.8 million $6 Fully diluted 426.1 million Officer & Director Holdings 8.2 % $106 Liquidity Cash, cash equivalents & short-term investments(
Slide 7: 2014: A Focused Portfolio
2014: A Focused Portfolio Thermal Oil • 2014 capital budget: $348 MM Fort McMurray • Complete Hangingstone Project 1, first steam Q4 Hangingstone • Construction of Hangingstone regional infrastructure Light Oil • 2014 capital budget: $106 MM • Montney production Kaybob ALBERTA • Duvernay land retent
Slide 8: 2014 Development Focus
Boiler feed water tank 2014 Development Focus
Slide 9: Hangingstone Development
Hangingstone Development Hangingstone Regional Development Map Development • 117 MMbbl reserves(1) • 912 MMbbl contingent resource(2) Fort McMurray • Asset planned to be developed in three phases: • Project 1 - 12,000 bbl/d • Project 2 - 40,000 bbl/d • Project 3 - 30,000 bbl/d CPF Infrastructure • 2
Slide 10: Efficient Delivery of First Thermal Project
Efficient Delivery of First Thermal Project $563 MM Cost Performance Incurred Committed On Budget Hangingstone Project 1(1) $309 MM $132 MM Progress 0% 100% Engineering Procurement Pad AC (foreground), Pad AD and Pad AE – Nov. 25, 2013 Construction D&C Overall First Steam Actual CPF looking west – N
Slide 11: Hangingstone Pad Results
Hangingstone 1 Pad Results • Drilled 15 producers and 10 injectors in 2013 • Average effective wellbore length > 90% design target • Wellbore pairs drilled precisely as planned for optimal steam chamber conformance Effective wellbore length average above design target > 90% Precision drilling slant
Slide 12: The Duvernay is a World-Class Resource
The Duvernay is a World-Class Resource Select Unconventional Plays In North America World • Large in place resource Class • High liquid content: 100-350 bbl/mmcf free condensate Resource • Initial results compare favorably to the Eagleford • Acreage in heart of liquids-rich Kaybob sub-basin AOC • >
Slide 13: AOC in the Heart of the Duvernay Fairway
AOC in the Heart of the Duvernay Fairway Duvernay Kaybob Land Positions Athabasca Encana/PetroChina Husky Shell Talisman 08-18-64-17W5 Chevron ConocoPhillips Trilogy Cenovus Exxon > 20m Isopach excluding carbonate 02/02-34-62-20W5 Licensed Duvernay Wells Drilled Duv Hz Completed Duv Hz 06-10-62-23W5
Slide 14: Focused on Liquids-Rich Gas
Focused on Liquids-Rich Gas Pressure (1000 psi) 0 0 5 10 15 Duvernay Maturity Map(1) AOC Industry 5 Depth (1000ft) Oil Window 08-18 10 02-34 Liquids Rich Gas V 06-10 V Under-pressured Over-pressured V 8-18 0.44 0.6 0.7 0.8 0.9 15 Over pressuring similar to Eagle Ford Liquid Rich Acreage 08-18-64-17W
Slide 15: Initial Duvernay Results are Very Encouraging
Initial Duvernay Results are Very Encouraging Target Well Parameters (Condensate Gas Window) Type Curve vs Results • Well cost: $10 - $15 MM (D&C) (cumulative production) • IP30: 600 – 1,000 boe/d 400,000 • EUR: 600 – 1,000 Mboe Type Curve (No Deep Cut) 350,000 • Free liquid yields: 100 – 350 bbl/MM
Slide 16: Duvernay Development Summary
Duvernay Development Summary 140 Gas Potential for production to exceed 120 NGL Daily Production (boe/d) 100,000 boe/d for >10 years 100 Condensate Oil • Inventory of > 1,000 wells 80 • 50/50 split between gas and liquids 60 • Timeline can be accelerated with more 40 aggressive rig ramp up 20 0 Worl
Slide 17: Strategic Ownership of Infrastructure
Strategic Ownership of Infrastructure(2) Total Battery Capacity Oil Capacity 36,000 bbl/d 48 mmcf/d, Kaybob East Gas Capacity expandable to >130 mmcf/d Kaybob West Keyera Saxon Simonette(1) AOC 63 km Pipeline Placid 63 km Gas Pipeline Up to Gas Capacity 180 mmcf/d Gas pipelines (TCPL/Alliance) • Ope
Slide 18: Future Growth
ATHABASCA ==! OIL CORPORATION Future Growth
Slide 19: Development and Exploration Opportunities
Development and Exploration Opportunities Slave Point Slave Point Birch • > 675,000 acre land position • 2.1 billion bbls • Validated oil production with Birch • Potential of >150,000 bbls/d Grosmont 2013 pilot program Dover West Sands Grosmont Dover West • 2.9 billion bbls • 400 MMbbl Contingent Re
Slide 20: Organic Growth and Growth Opportunities With Sufficient Funding
Growth Opportunities With Sufficient Funding Thermal Oil • Hangingstone 1 and expansion Daily Production 250 • Dover West • Sands – SAGD • Carbonate – TAGD 200 Thermal Oil JV Light Oil Gross Mboe/d 150 • Duvernay development • Montney development 100 Organic Growth and Funding Light Oil JV • Project
Slide 21: Corporate Office
Corporate Office 2000, 250 – 6 Ave SW, Calgary, Alberta, T2P, 3H7 Telephone: 403.532.7446 • Fax 403.264.4640 www.atha.com
Slide 22: Dover West Carbonate: The Next Big Resource Play
Dover West Carbonate: The Next Big Resource Play Dover West Opportunity TAGD Facility Dover West • 16,800 MMbbl of bitumen in place(1) in the Leduc Road carbonate reef (> 100 m net pay) • 3,000 MMbbl contingent resource(2) based on SAGD Fort McMurray • Asset to be developed in multiple phases to a c
Slide 23: Dover West Sands, Poised for Development
Dover West Sands, Poised for Development Development • 87 MMbbl reserves(1) • 2,930 MMbbl contingent resource(2) • Asset to be developed in multiple projects Dover West Road to a capacity > 275,000 bbl/d • Processing plants planned to be a duplication of Hangingstone design Dover West CPF Fort McMur
Slide 24: Montney Appraisal, Leading to Development
Montney Appraisal, Leading to Development Appraisal Identifies > 400 High-Graded Locations(1) Early Learnings • 3 distinctly different areas Kaybob West > 130 Locations • Artificial lift is required – timing and method varies • Infrastructure is key to validate production Kaybob East > 110 Locations