31 slides from Paramount Resources Ltd. Class A's investor presentation, November 2017
Slide 1: Corporate Presentation
Corporate Presentation November 2017
Slide 2: Future Oriented Information
Future Oriented Information • 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 forecas
Slide 3: Corporate Overview
Corporate Overview Corporate Profile • Founded in 1976; IPO in 1978; TSX: POU 2017 Results • Q3 2017 production: 49,023 Boe/d (~40% Liquids) • Q4 2017E: 95,000 Boe/d (~38% Liquids) • 2017 Capex (at Sep 30, 2017): ~$380 MM • Q4 2017E Capex: ~$130 MM • Net Debt at Sept 30, 2017 ~$564 MM(1) • Market Ca
Slide 4: Historical Performance
Historical Performance 1) As evaluated by McDaniel & Associates Consultants Ltd. as of June 1, 2017 4
Slide 5: Highlights
Highlights Transaction Highlights • April 2016 sold Musreau Plant ~$565 MM • August 2016 sold Musreau Asset ~$2.1 Bln • December 2016 sold royalty on Cavalier Oil Sands Asset ~$100 MM • December 2016 dividend declared: ~3.8 MM Seven Generations shares ~$120 MM • May 2017 closed the sale of Valhalla
Slide 6: Liquids Focused Assets
Liquids Focused Assets Montney Assets Duvernay Assets Wellhead Asset Description Liquids(1) Bbl/MMcf MONTNEY Birch 25 Wapiti 90 Karr 120 Smoky/Resthaven 85 Ante Creek 120 Kaybob 220 Presley/Fir 12 DUVERNAY Kaybob North 360 Kaybob Smoky 220 Kaybob South 100 Kaybob Bigstone 60 Kaybob Pine Creek 30 Wil
Slide 7: Diversified Assets
Diversified Assets Location Breakeven Breakeven Wellhead Production Stage of Asset Description Inventory WTI Oil NYMEX Gas Potential (Gross) Development P+P | Total(1) US$/Bbl(2) US$/MMbtu(2) Liquids Bbl/d | Total Boe/d(3) 2017 – 2021 Focus Assets Karr Montney Development 76 | 227 31.92 0.92 18,000
Slide 8: Permian | Karr Comparison
Permian | Karr Comparison Note: Permian Operators based on data provided in Corporate Presentations for CDEV, CPE, CXO, EGN, FANG, OXY, PDCE, PE, RSPP, SM, WPX and XEC. ) Paramount Karr wells IP30 volumes are produced volumes of oil, condensate and natural gas measured at the wellhead. Sales volumes
Slide 9: 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 10: Midstream & Marketing Strategy
Midstream & Marketing Strategy Karr 06-18 Midstream Portfolio Positioned for Growth • Focus assets in Montney and Duvernay have takeaway capacity to manage growth plan through 2021 Keyera Wapiti • Owned and operated infrastructure coupled with 3rd party midstream provide balanced opex structure • Op
Slide 11: Grande Prairie Snapshot
Grande Prairie Snapshot Operational Highlights • 21 new wells on production at Karr • 6 wells in progress at Karr • Evaluating new Montney zone at Wapiti • Evaluating new Montney well at Resthaven/Jayar Asset Summary • Three Montney assets in Alberta Deep Basin trend - Wapiti, Karr, and Resthaven/Ja
Slide 12: Kaybob Snapshot
Kaybob Snapshot Operational Highlights • New 6-well Duvernay pad onstream September 2017 • Testing up to 3,000 lb/ft proppant in Duvernay • Evaluating gas re-routing projects to reduce operating costs Asset Summary • Three Montney assets and five Duvernay assets • Montney assets includes oil at Ante
Slide 13: Central Alberta & Other Snapshot
Central Alberta & Other Snapshot Operational Highlights • Continue to monitor the restricted performance of the 02/13-05 Duvernay completion which has a peak IP30 (oil) rate of 492 Bbl/d (total producing days 148)(1) Asset Summary • Contiguous Willesden Green Duvernay position with 2x over-pressure
Slide 14: Karr Montney Asset Detail
Karr Montney Asset Detail Operational Highlights • Rig released all 27 wells within 10% of budget • 21 net wells on production and 6 wells in- progress • Average peak 30-day wellhead rate of 2,011 Boe/d (~60% condensate) from 21 wells with between 30 and 307 (average 134) days of production(1) Asset
Slide 15: Karr Montney P+P Type-Well
Karr Montney P+P Type-Well Karr West Unit McDaniel(1) Wellhead IP30 Boe/d 2,187 Lateral Length = 2,900m Proppant Loading = 1,600 lbs/ft Wellhead IP30 Condensate % 67 Stages = 73 Total Sales Gas Bcf 4.4 Bcf Total Sales Condensate MBbl 590 Total Sales Volume MBoe 1,394 DCET (multi-well pad) MM$ 12.3 B
Slide 16: Wapiti Montney Asset Detail
Wapiti Montney Asset Detail Operational Highlights • Executing land retention and delineation program • Testing new Montney zone in East Block • Third party gas plant and infrastructure under construction with scheduled Q2 2019 in-service • Paramount completion design on new wells Asset Potential •
Slide 17: Wapiti Montney P+P Type-Well
Wapiti Montney P+P Type-Well Wapiti East Unit McDaniel(1) Wellhead IP30 Boe/d 1,847 Lateral Length = 3,000m Proppant Loading = 1,600 lbs/ft Wellhead IP30 Condensate % 59 Stages = 75 Total Sales Gas Bcf 5.7 Bcf Total Sales Condensate MBbl 540 Total Sales Volume Mboe 1,629 DCET (multi-well pad) MM$ 11
Slide 18: Kaybob Duvernay Asset Details
Kaybob Duvernay Asset Details Operational Highlights • New 6-well pad onstream September 2017 • Testing up to 3,000 lbs/ft proppant loading intensity • Near-term data acquisition projects include micro- seismic and fiber for optimizing well placement, well spacing and cluster design Asset Potential
Slide 19: Kaybob Duvernay P+P Type-Well
Kaybob Duvernay P+P Type-Well Kaybob Smoky Unit McDaniel(1) Internal(1) Wellhead IP30 Boe/d 1,505 2,104 McDaniel P+P Lateral Length = 2,600m Wellhead IP30 Condensate % 67 67 Proppant Loading = 1,500 lbs/ft Stages = 33 Total Sales Gas Bcf 2.1 2.9 Total Sales Condensate MBbl 439 615 Total Sales Volume
Slide 20: Kaybob Montney Oil Development
Kaybob Montney Oil Development Operational Highlights • 17 of 22 2017 gross wells have been drilled and 13 have been completed • New completion design has 45% more stages and 290% higher proppant loading intensity Asset Potential • Discovered 2011 with 132 wells drilled to date • ~32,000 net-acres •
Slide 21: Kaybob Montney P+P Type Well
Kaybob Montney P+P Type Well Kaybob Montney Unit McDaniel(1) Internal(1) McDaniel P+P Wellhead IP30 Boe/d 545 658 Lateral Length = 2,000m Wellhead IP30 Oil % 80 80 Proppant Loading = 167 lbs/ft Stages = 40 Total Sales Gas Bcf 0.6 0.6 Total Sales Oil/Condensate MBbl 152 152 Total Sales Volume MBoe 25
Slide 22: Gross Inventory Estimate
Gross Inventory Estimate(1) Gross Description Inventory McDaniel P+P Focus Assets 353 Internal High Grade Focus Assets 836 Total Focus Assets 1,189 McDaniel P+P Other Properties 72 Internal High Grade Other Properties 788 Total Focus Assets and Other Properties 2,049 Remaining Internal 1,705 Grand T
Slide 23: Focus Assets – Btax Breakeven @ 10%
Focus Assets – Btax Breakeven @ 10%(1) 1) Breakeven analysis discounted at 10 percent before tax, based on McDaniel P+P type well assumptions using constant costs, FX rate of $0.775 $US/$C and AECO basis of US$0.95/MMbtu. Breakeven oil prices based on a constant NYMEX gas price of US$3.00/MMbtu. Bre
Slide 24: Focus Assets – Btax Return and NPV10
Focus Assets – Btax Return and NPV10(1) 1) McDaniel P+P unless (Internal), US$50/Bbl WTI & US$3.00/MMbtu NYMEX, US$0.95/MMbtu AECO Basis & FX US$/C$ 0.775. Refer to the heading “Reserves and Other Information” in the Advisories Appendix 24
Slide 25: 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 25
Slide 26: Paramount in a Nutshell
Paramount in a Nutshell Well-established base production and cash flow Diversified portfolio of liquids rich assets Firm takeaway in place to deliver profitable growth Strong balance sheet and financial flexibility Talented team with a proven ability to deliver top tier results Demonstrating a cultu
Slide 27: Advisories Appendix
ADVISORIES APPENDIX
Slide 28: 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 29: Advisories (con't)
Advisories (con't) The foregoing list of risks is not exhaustive. Additional information concerning these and other factors which could impact Paramount are included in Paramount’s Annual Information Form. The forward-looking information contained in this presentation is made as of the date hereof a
Slide 30: 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, intern
Slide 31: Paramount Resources Ltd. contact
: q Pararmournet a, \ Foe ( resources Itd. eh VY 3 ae os os ee « 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