23 slides from Paramount Resources Ltd. Class A's investor presentation, May 2017
Slide 1: Corporate Presentation May 2017
Corporate Presentation May 2017
Slide 2: Future Oriented Information
Future Oriented Information (See additional advisories at the end of this document) • In the interest of providing information regarding Paramount Resources Ltd. ("Paramount" or the "Company") and its future plans and operations, this presentation contains certain forward-looking information and for
Slide 3: Corporate Profile
Corporate Profile Corporate Profile Strategic Investments/Emerging Plays • Founded in 1976; IPO in 1978; TSX: POU • Emerging Montney play at Birch • Q1 2017 production: 16,163 Boe/d (~47% Liquids) • Emerging Duvernay play at Willesden Green • Q1 2017 capital expenditures: $149.2 Million • Oil Sands
Slide 4: Summary of Musreau/Kakwa Sale Transaction
Summary of Musreau/Kakwa Sale Transaction (August 2016) $2.1 Billion •~$0.5 Billion Cash •Purchaser assumed US$450 MM 2023 Notes •33.5 MM shares of Seven Generations: ~$1.0 Billion (monetized 29.7MM shares for ~$860 MM net proceeds, 3.8 MM shares dividended to POU shareholders) Sold •~30,000 Boe/d S
Slide 5: Karr/Gold Creek
Karr/Gold Creek Cretaceous and Montney targets Sections Formation Gross Net Cardium 31 22.0 Dunvegan 32 23.1 Wilrich 46 37.4 Falher 48 38.0 Gething 51 42.0 Montney 92 77.0 • Q1 2017 Sales: ~ 10.000 Boe/d • 40 MMcf/d plant capacity expanded to 80 MMcf/d in April 2017 • Three-rig drilling program curr
Slide 6: Karr Wells - Completion Design and Performance
Karr Wells - Completion Design and Performance 15-02 PAD 4-19 PAD 15-27 PAD Wells 15-14 4-7 02/4-7 1-12 02/1-12 3-22 Completion Details Horizontal Length (m) 3,018 3,047 3,049 3,054 3,036 2,870 Completion Stages (#) 50 70 75 73 58 66 Proppant (t) 5,000 7,000 7,500 7,300 5,800 6,600 Proppant Intensit
Slide 7: Karr Drilling Progression
™~ WE .«. SE ryt Karr Drilling Progression Paramount resources Itd. Total Depth (m) Drill Cost ($/meter of Total Depth Wells in Order of Rig Release Date HE 15-02 Pac (16-36 Pad (o4-19Pad [| 13-07 Pad [S99 15-27 Pad
Slide 8: Karr Cumulative Wellhead Separator Performance
Karr Cumulative Wellhead Separator Performance Daily Separator Volumes (Excluding Zero Days)(1) (1) Natural gas and liquids volumes production measured at the wellhead separator. Natural gas sales volumes are approximately 10 percent lower and stabilized condensate sales volumes are approximately 15
Slide 9: Karr Economics: Montney
Karr Economics: Montney(1) Economics @ US$3.00/MMBTU Assumptions: US$/Bbl WTI $40 $45 $50 $55 $60 Capital: $10.2 MM d/c/e/t NPV 10% $MM 5.3 7.2 9.0 10.7 12.4 IP30 (raw): 7.1 MMcf/d IRR (%) 35 48 61 76 93 Raw Natural Gas EUR: 7.0 Bcf Payout (Years) 2.4 2.0 1.7 1.5 1.4 Stabilized Condensate EUR: 490 M
Slide 10: Smoky/Resthaven
Smoky/Resthaven Cretaceous and Montney targets Sections Formation Gross Net Cardium 81 45.6 Dunvegan 116 79.5 Wilrich 118 84.4 Falher 118 84.4 Gething 109 80.7 Montney 80 78.2 • Paramount owns 54 MMcf/d (~18%) of the Smoky Deep Cut facility and 10 MMcf/d (50%) of the Resthaven facility • Q1 2017 Sal
Slide 11: Valhalla
Valhalla • Sold for cash consideration of ~$150 million • 94 (74 net) sections • Q1 2017 sales: ~1,400 Boe/d (12% Liquids) • Transaction expected to close May 2017 pending approval of transaction by AER (1) Based on results from Paramount's wells and publicly disclosed results of competitor wells. 1
Slide 12: Birch: Montney
Birch: Montney • Montney shale play (50% WI) • ~60 sections (~30 net) Montney rights • Q1 2017 Sales: ~560 Boe/d • NGL + Free Condensate yields average 54 Bbl/MMcf over productive life • Facility expansion to 40 MMcf/d (gross) underway, anticipated onstream Q4/2017 • Six wells of the ten-well drilli
Slide 13: Willesden Green
Willesden Green Duvernay Shale Play • 57,892 acres of land (100% WI) • Drilled and completed 4 Hz Duvernay wells to date: Cumulative production to April 30, 2017(1) Natural Gas Oil and NGLs Well MMcf MBbl 03/16-13-39-5W5 231.0 124 7-19-39-5W5 160.2 41 3-28-39-5W5 107.8 50 Total 484.0 209 • Completed
Slide 14: Paramount Investments
Paramount Investments
Slide 15: Paramount Investments and Cash
Paramount Investments and Cash (1) Cash and cash equivalents and investment values as at March 31, 2017 15 15
Slide 16: Paramount 100% Subsidiary Investments
Paramount 100% Subsidiary Investments (1) As publicly disclosed by a large U.S. public E&P company with significant landholdings in the Liard Basin. The resource evaluation disclosed by such E&P company was not noted as having been prepared independently or by a qualified reserves evaluator or audit
Slide 17: Quarterly Operating Results
Quarterly Operating Results 17
Slide 18: Reserves
Reserves(1) 1) Principal properties reserves, exclude bitumen reserves related to the Hoole oilsands development. Reserves evaluated by McDaniel &Associates Consultants Ltd. in accordance with National Instrument 51-101 definitions, standards and procedures. Columns may not add due to rounding. 18
Slide 19: Near-Term Development
Summary Exposure to significant reserve opportunities Near - Term Development • Deep Basin • Drilling significant Montney wells at Karr testing longer laterals and increasing frac intensity; expanded existing facility to 80 MMcf/d • New Cretaceous well completed at Smoky/Resthaven • Northeast Britis
Slide 20: Advisories Appendix
ADVISORIES APPENDIX
Slide 21: 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 22: 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 and int
Slide 23: Paramount Resources Ltd. contact details
: 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