Tamarack Valley Energy Ltd. · TSX:TVE
Tamarack Valley Energy — Investor Presentation (September 2011)
37 slides from Tamarack Valley Energy's investor presentation, September 2011
Slide 1: Corporate Presentation
TVE: TSX-V September 2011 Corporate Presentation 1
Slide 2: Disclaimers & Advisories
Disclaimers & Advisories This presentation may contain forward looking information. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of
Slide 3: Introducing Tamarack Valley Energy
Introducing Tamarack Valley Energy We are junior oil and gas company focused on increasing liquids production and reserves through the identification and operation of properties throughout Western Canada. ... We have a strong balance sheet, a good acreage position and a committed management team wit
Slide 4: The Team
The Team Personnel Position Vaquero Apache Spearpoint Brian Schmidt President & CEO Ron Hozjan VP Finance & CFO Niels Gundesen VP Engineering Ken Cruikshank VP Land Dave Washenfelder Exploitation Manager Scott Reimond Exploration Manager Kevin Screen VP Production & Operations …Members of this team
Slide 5: Board of Directors
Board of Directors Elected Tamarack Chairman; Retired Executive VP, Apache Floyd Price Houston; Chairman Gastar Exploration; Director Source Energy Anthony Lambert President & CEO, Daylight Energy Ltd. Dean Setoguchi VP Finance & CFO, Keyera Facilities Income Fund CEO and a director of private co.,
Slide 6: TVE Capital Structure
TVE Capital Structure August 31st share price $0.39 Market cap $72.6 million Q3 2011 production estimate (Q2 – 869 boe/d) 1,030-1,080 boe/d Working capital at June 30/11 $1.3 million Available bank lines $8.5 million P+P reserves, PLA Dec 31, 2010 (51% PV10 from liquids) 3.0 mmboe (30% liquids) Unde
Slide 7: Strategic Play Criteria
Strategic Play Criteria Resource plays have high: Apache • OGIP/OOIP – > 4 mmbbls/section OOIP or Non - 25 bcf/section GIP Resource Play – Either with stacked pay sections or thick single zones Conventional • Long life reserves – Production profiles demonstrate Tight Sands Tamarack harmonic decline
Slide 8: Understanding Resource Plays
Understanding Resource Plays Conventional Unconventional Well Results likely Most Mean Well quality Well costs Well costs Time # of wells Well quality Optimal Time entry period Land Drilling Time Time First month IP • With unconventional plays: – Costs decrease over time and better wells are drilled
Slide 9: Netbacks: Transformation to Oil Weighting
Netbacks: Transformation to Oil Weighting Progress To Date Positioning for the Future Liquids Production 500 400 Gas 13% Undeveloped & Farm-in Land Lands 300 bbls/d Cardium Oil 33% 200 Viking Oil 100 19% Heavy Oil 0 Legacy Gas Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 E Operating Netbacks Oil
Slide 10: Four Play Strategy
Four Play Strategy ALBERTA Resource Play #1 Resource Play #3 Lochend / Garrington SK Shallow Viking Oil Cardium Oil Identified; acquired & Identified; de-risked, preparing to de-risk adding production Edmonton Lloydminster Resource Play #2 BUCK LAKE Resource Play #4 Buck Lake (Duvernay rights) HEAVY
Slide 11: Lochend / Garrington 2011 Multi-Well Program
Lochend / Garrington 2011 Multi-Well Program Lochend / Garrington Wells vs. Type Curve 500 450 Risked TC 30 day IP = 443 boe/d Lochend 16-32 400 30 day IP = 432 boe/d Lochend 15-32 350 30 day IP = 369 boe/d Lochend 8-29 Garrington 1-20 300 Prod - boe/d 250 200 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 Mo
Slide 12: Lochend
Lochend Lochend wells vs Type Curve BNP 8-33 400 TVE land 350 Risked TC PBN 13-17 TVE 16-32 EQU 1-22 TVE locations 300 EQU 2-22 PBN 14-25 Industry well licenses NAL 3-26 TRI 2-36 BNP 6-22 Frac’d with oil Prod - boe/d NAL 1-36 NAL 13-3 250 EQU 16-4 NAL 3-17 NAL 14-15 Frac’d with water PBN 14-28 EQU 1
Slide 13: Harmattan / Garrington
Harmattan / Garrington Harmattan wells vs Type Curve MEL 14-4 & TVE land 250 PBN 14-33 332 boe/d TVE locations 16-4 drilled IP18 Risked TC (mo. 3 prod day) Well licenses Calendar day prod - boe/d PGF 1-34-31-3 520 boe/d 200 PGF 4-34-31-3 Frac’d with oil PBN 2/16-27-32-3 TVE 16-29 working on PBN 2/16
Slide 14: Buck Lake Development Plan
Buck Lake Development Plan R6 R5W5 • Paid $5.0 million and T47 carry partner’s WI share TVE land TVE land excl. Cardium rights on first two drills (paid Drilled wells Proposed locations $4,000/Ha equivalent) Licensed wells • 26 (20 net) potential Hz locations • Includes 8.5 gross sections of Duverna
Slide 15: Buck Lake Rock Quality
Buck Lake Rock Quality • Tamarack lands are very well situated – rock quality improves west of analog wells • This was evidenced while drilling 5-24 and 3-35 TVE 3-35 drilled • Thicker conglomerate TVE 3-35 • Higher quality sands Oct/11 drill • 8m3 oil kick during drilling Phi H 1.4 0.8 0.6 0.2 TVE
Slide 16: Buck Lake
Buck Lake Buck Lake wells vs. Type Curve 300 TVE 3-35 drilled & testing 140 boe/d Risked TC 3-20-46-5 (mo. 2) 91 boe/d 250 9-25 12-29 TVE 4-34 222 boe/d (mo. 3) 5-30 5-31 Oct/11 drill 2/5-3-47-5 13-4 (mo. 3) 200 Prod - boe/d 13-9 5-20 5-17 16-17 150 223 boe/d (mo. 2) 100 225 boe/d 50 (mo. 2) PBN 0 2
Slide 17: Heavy Oil Zones of Interest
Heavy Oil Zones of Interest SW NE Colony Gas McLaren + Regional Waseca Sands Oil Lithic Channel Sparky GP, Lloyd Cummings Sand filled channel + Dina Paleozoic …Multi-zone potential exists in our areas. 17
Slide 18: Sask Heavy Oil – First Nations
Sask Heavy Oil – First Nations TVE lands Potential drilling locations Hz Well Oil Water Channel Facies Post Deposition High • Hz heavy oil drilling potential • Characteristics – analog play, mapable zone, vertical well control, known oil in place • Initial well 40% COS, up to 18 wells under full dev
Slide 19: Heavy Oil Economics
Heavy Oil Economics Initial Exploration Follow-up Vertical Follow-up HZ Vertical Development Drilling Development Drilling Pricing $/bbl WTI with $20/bbl diff $85 $85 $95 $85 $95 Capital ($m) 600 625 625 850 850 Operating costs ($/bbl) 16.94 16.94 16.94 21.41 21.41 Risk (COS) 60% 80% 80% 90% 90% Ris
Slide 20: Alberta Shallow Viking Oil Play
Alberta Shallow Viking Oil Play Viking Comparison (Sandstone / Siltstone) Redwater / Provost Tamarack Target Area Average OOIP per section (mmbbls) 5-10 6-8 Average porosity (%) 22-23 12-15 Permeability (md) 1-50 10-40 Net pay (meters) 2-5 4-5 API (degrees) 30-37 37 V well production - IP30 (bbls/d)
Slide 21: Core Area Metrics
Core Area Metrics Undeveloped & Farm-in Land (000’s acres) Net Un-risked Drilling Locations 77.4 Legacy Gas 156.0 Lochend / Garrington 33.0 27.1 44.7 3.3 Alberta Shallow Viking 20.0 6.1 14.6 6.9 Buck Lake 37.0 33.0 68.0 38.6 Sask Heavy Oil 25.5 20.0 37.0 35.0 Sept. 2010 Sept. 2011 Sept. 2010 Sept. 2
Slide 22: Building Credibility - Six Month Review
Building Credibility - Six Month Review What we said we’d do (Oct/10)… What we did (Q4/10-Q1/11) … The next 6 months (Q2-Q3/11) … Drill 5 wells, test Buck Lake, build Drilled, completed and placed 2 wells Demonstrate operational execution production – drilled all 5 wells; 4 on on production prod’n A
Slide 23: Near Term Catalysts
Near Term Catalysts Lochend / Garrington Cardium Buck Lake Cardium Viking Oil Play 4 Done Done Done Done Drilled & completed Loch Close deal with Private Co. Assembled a meaningful Assembled a meaningful 8-29, 15-32 & Gar 1-20 Drilled 2 earning wells land position heavy oil land position wells (1 we
Slide 24: Why Invest in TVE?
Why Invest in TVE? • Proven, rigorous process to identify, evaluate and operate in multiple resource plays • Portfolio approach managing risk and enables us flexibility to achieve targets; discipline to pick the right time to buy land and drill wells • Key initial assets • Technical and corporate ex
Slide 25: TVE Contact Information
TVE Contact Information Tamarack Valley Energy 1800, 407 – 2nd Street SW Calgary AB T2P 2Y3 Tel: 403.263.4440 www.tamarackvalley.ca info@tamarackvalley.ca 25
Slide 26: Appendices
yyy \\ tamarack valley ENERGY Appendices
Slide 27: Proven Management Team
Proven Management Team Former President & CEO Spearpoint Energy sold in Aug/09; 7 years with Apache Canada, Brian Schmidt last 3 as President. Production grew from 18,500 to 110,000 boe/d in 7 years; invested President & CEO $4.5 billion earning 28% ROR; CAPP Board Governor & IOGC Board member Ron H
Slide 28: Brian Schmidt, President & CEO
Brian Schmidt, President & CEO • Spearpoint Energy – President & CEO (Jun 08 - Jun 09) – Assembled $200 mm deal with a major – over 1,000 sections of farm-in land – Completed 1st year drilling commitments; sold for $16.2 mm; $12.7 mm (including G&A) was invested in 9 months of operating; 28% ROR • A
Slide 29: Brian Schmidt, President & CEO (continued)
Brian Schmidt, President & CEO (continued) Current Directorships: • Director of Indian Oil & Gas Co-Management Board, 2008 to present • Board of Governors – Canadian Association of Petroleum Producers & Alberta Executive Policy Group Chairman • Past director of Tusk Energy and Avant Garde Energy 29
Slide 30: Ron Hozjan, VP Finance & CFO
Ron Hozjan, VP Finance & CFO • Vaquero Resources – VP Finance & CFO (Sep 05 - Sep 08) – Junior private co. recapitalized by former senior management team from Rider Resources – renamed RMP Energy (Sep 08 - Aug 09) • Vaquero Energy – VP Finance & CFO (Sep 01 - May 05) – Share price growth from $0.57/
Slide 31: Kevin Screen, VP Production & Operations
Kevin Screen, VP Production & Operations • Apache Canada Ltd. (Sept 02 – Sept 11) – Manager Horn River Business Unit – last 3 years • Responsible for initial commercialization of Horn River Shale gas assets • Production growth from less than 20 mmcf/d gross to over 250 mmcf/d • Accountable for capit
Slide 32: Niels Gundesen, VP Engineering
Niels Gundesen, VP Engineering • Spearpoint Energy – VP Engineering (Jun 08 - Jun 09) – Evaluated drilling programs and BP drilling deal – Reported and booked reserves • Longford Corporation (May 06 – Jun 07) – VP and COO of a small start-up operating in Alberta and Alabama • Apache Canada – Senior
Slide 33: Ken Cruikshank, VP Land
Ken Cruikshank, VP Land • Vaquero Resources Ltd. – VP Land (Sep 05 – Sep 08) – Private company recapitalized by RMP Energy • Vaquero Energy Ltd. – VP Land (Sep 01 – May 05) – Responsible for accumulating lands in the competitive Pembina Nisku bank edge play from initial discovery to sale to HighPine
Slide 34: Dave Washenfelder, Exploitation Manager
Dave Washenfelder, Exploitation Manager • Spearpoint Energy – Senior Geologist (Jun 08 - Jun 09) – Geological evaluation of 1,000+ sections of BP farm-in lands; 500 section farm-in opportunity with Montney and Cadomin potential • C3 Resources – Exploration Manager (Jun 06 - Jun 08) – Drilled success
Slide 35: Scott Reimond, Exploration Manager
Scott Reimond, Exploration Manager • Spearpoint Energy – Senior Geologist (Oct 08 - Jun 09) – Geological evaluation of 1,000+ sections of BP farm-in lands focusing on the Cardium HZ opportunity in Garrington • Rock Energy – Senior Geologist (Oct 03 - Oct 08) – Drilled 91 CEE/CDE (2003-07) wells (pri
Slide 36: Quaich / Todd Creek
Quaich / Todd Creek 100/3-3-10-3W5 TVE land 2D Seismic Possible location Existing Cadomin producers Cadomin • Existing Cadomin wells are performing very well • 5.4 (3.3 net) mmcf/d raw production • Recent pressure test results have been obtained and this caused an increase to proved reserves • Sever
Slide 37: Corporate Presentation
TVE: TSX-V September 2011 Corporate Presentation 37
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