Southern Alberta Basin Multi-zone Oil Prospects

Transcription

1 Southern Alberta Basin Multi-zone Oil Prospects May 28, 2012

2 Advisory Disclaimer Statements in this presentation may contain forward-looking information. Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: general economic and business conditions; the risk of instability affecting the jurisdictions in which the Company operates; the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; risks and uncertainties involving geology of oil ad natural gas deposits; the uncertainty of reserves estimates and reserves life; the ability of the Company to add production and reserves through acquisition, development and exploration activities; the Company s ability to enter into or renew leases; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production (including decline in rates), costs and expenses; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in the Company s marketing operations, including credit risk; health, safety and environmental risks; and uncertainties as to the availability and cost of financing. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. Additional information on these and other factors that could affect the Company s operations and financial results is included in reports filed with Canadian securities regulatory authorities and is available at and on the Company s website at The reader is cautioned not to place undue reliance on this forward-looking information. The forward looking statements or information contained in this presentation are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this presentation are expressly qualified y this cautionary statement. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion rate of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 2

3 North American Resource Plays PRIMARY 3

4 Bakken Formation Distribution Map British Columbia Alberta Rocky Mountain Thrust Belt Saskatchewan Manitoba North Battleford Arch Washington Bakken Formation Sweetgrass Arch Pondera-Teton Montana North Dakota Idaho Wyoming Modified from Smith and Bustin

5 Activity, Positioning & Growth 2008 Pondera Teton - 110k acre, 26 sq.mi. 3D Seismic, 4-well Sunburst & Madison Evaluation Program 2009 December NFX acquires 156k acres from Blackfeet for $12mm [$85/ac] 2010 February ROSE updates 2009 drilling program 13MM 15MM OOIP/section 2011 February Primary completes $17.25mm equity raise. CAPEX of $13.5mm ROSE-300k acres, NFX-340k acres, FXEN-70k acres JV; ongoing drilling and completion program 2011 October Primary completes Sale & JV Farmout with U.S. Major - $48.5MM 2011 NFX reports IP rate of 225 boe/d; ROSE reports stabilized rates of 104 boe/d and 154 boe/d 2011 November Primary commence 12 well JV drilling program 2012 March - ROSE reports stabilized rate on 3 rd HZ well at 403 boe/d 2012 April JV drilling program current status Increased Lease exposure in the area to 361,000 gross and 304,000 net acres Completed ~95 sq. mi. 3D Seismic and drilled, logged and cored 6 vertical Bakken System strat test wells Secondary vertical production testing drill program on up to four wells on Nisku, Sawtooth & Sunburst 5

6 Current South Alberta Basin Facts Southern Alberta Basin Over $240 mm on Land Sales in Southern Alberta from April 2010 Average price - $2000/ha ($812/ac.) Maximum price - over $8200/ha ($3300/ac.) To-date over 75 wells are in the process of been tested, completed and/or drilled. Currently 45 Industry participants in the region whereby 34 CDN and 11 U.S. Fairway estimated at 175 mi, north-south and mi. east-west Implied potential resource in place in the multiples of billions of barrels Approx. $500 mm spent to date on land, JV s, exploration and drilling Western Montana Southern Alberta Rosetta Resources (ROSE-Q) Crescent Point Energy (CPG-T) Newfield Exploration (NFX-Z) / Stone Energy (SGY-Z) Royal Dutch Shell (RDS-Z) Anschutz Exploration Murphy Oil Corp (MUR-Z) Quicksilver Resources (KWK-Z) Nexen (NXY-T) Torc Oil & Gas Fairways Offshore Exploration DeeThree Exploration (DTX-T) Arkanova Energy (AKVA-Q) Bowood Energy (BWD-V) / Legacy (LEG-T) FX Energy (FXEN-Q) / American Eagle Energy (AMZG-Q) Argosy Energy (GSY-T) Williston Basin Over 4000 Bakken/Three Forks wells drilled to date: USGS estimates up to 4.3 Bbbls of recoverable reserves Producing in excess of 400,000 bbls/day in the U.S. and 70,000 bbls/day in Canada 6

7 Bakken System Production Rates R27 TORC 280 bbl/d IP90 R13 Bowood 100 boe/d IP90 Bowood 357 boe/d ~14 days DeeThree 415 boe/d IP30 Argosy 140bbl/d DeeThree 940 boe/d 10 days DeeThree 800 boe/d ~3 days Lethbridge Murphy 216 bbl/d IP30 Murphy 400 boe/d ~42 days T1 R16W R2W Modified from Smith & Bustin,2000 ROSE 7 day stabilized production rates NFX Initial production rate ROSE 403 boe/d ROSE 151 boe/d ROSE 104 boe/d NFX 225 boe/d T36N LEGEND Rosetta Newfield Shell Murphy Argosy Deethree Crescent Pt Bowood/Legacy Torc Primary Well Locations First Nations Reserves Primary Leased Lands T22N 7

8 Blackfeet Reservation SAB Activity 403 boe/d 151 boe/d 104 boe/d 225 boe/d ROSE 7 day stabilized production rates NFX Initial production rate 8

9 2011/12 Vertical Drilling Activity #3 Dupuyer Ridge #6 Dupuyer Ridge Fairways #1 Rockport #2 Springhill #5 Ralston Gap 4-2 #4 Watson Flats

10 1.5 NW Montana Bakken Depth Structure 1.0 ROSE 403 boe/d ROSE 150 boe/d Kevin-Sunburst Dome 84MMbo & 500Bcf Blackfeet Indian Reservation ROSE 104 boe/d Cut Bank 172MMbo & 210Bcf NFX 225 boe/d Cored Bakken Well Fairways Bakken System Test Well Pondera Oil Field 29MMbo Shell Evilsizer Well PIE vertical test wells Primary s Area of Interest Ro #s From Dolson et al. (1993) 10

11 NW Thrust Front SAB Bakken Stratigraphic & Reservoir Model: Position of Primary Petroleum Leasehold Rosetta Riverbend 12-13H Newfield Sheriff 1-11H Sweetgrass Arch Axis SE Top of Bakken Oil Window Top of Bakken Gas Window Note: Vertical Exaggeration of Stratigraphic Zone Thickness ~20X Depth Scale 11

12 South Alberta Basin Williston Basin Similarities Differences Hydrocarbon-saturated, continuous petroleum system with low water saturation Stratigraphically equivalent source rock and reservoir zones Unconventional clastic and carbonate reservoirs Exploitation requires horizontal drilling and hydraulic fracturing Greater structural complexity in South Alberta Basin Large-scale stratigraphic trapping potential along western flank of Sweetgrass Arch Relatively shallower drilling depths and lower completed well costs in South Alberta Basin Greater overpressure developed in Williston Basin 12

13 THANK YOU! Suite 480, th Avenue SW, Calgary, AB T2P 3J4 T F