AGM2014 Corridor Resources

8/12/2019 AGM2014 Corridor Resources

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AGM

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Highlights - Introduction Eastern Canadian E&P Company

with significant upside potential& sustainability

Three high-impact prospects atvarious stages of maturity, totalof ~ 800,000 net acres

McCully production generatespositive cash flow & premiumnetbacks

Focused on de-risking plays,acquiring partners for high-impact prospects & prudentfinancial management as wedemonstrate upside

Corridor is well-positioned:- No debt- Working capital (May 2014 ~ $39 M)- Catalysts for significant upside

Anticost i330,000 Net Acres

Old Harry250,000 Net Acres

Southern NewBrunswick225,000 Net Acres

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Three High Impact Prospects Anticosti Macasty shale prospect

has 34 Bboe gross undiscoveredresources of petroleum (bestestimate ); Corridor has 21.67%interest in Anticosti joint venture

Corridors Old Harry offshoreprospect is one of the largest

identified geological structuresoffshore NFLD

New Brunswick Frederick Brookshale

- 67 TCF gross discoveredunrecoverable resources of shale gas

2014 Capital program at McCullyexpected to increase productionand further demonstrate FB shalepotential

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Corridor N.B. Assets Corridors N.B. assets connected to

Boston markets and LNG facility inN.B.

Premium Netbacks- Q1 2013 av $7.35- Q1 2014 av $12.46

50% of base production forward sold@ US$11.74 for November 2014 to

March 2015 Premiums in Maritimes & Boston to

remain strong through 2018 Potential for East Coast LNG Export

terminal

- Repsols Canaport facility in N.B.- Pieridaes proposed LNG facility inGoldboro, N.S.

Ability to source additionalopportunities in the region- CNG, LNG, Storage, etc.

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North East Gas Prices

Anticipate elevated premium to Henry Hub for next several years Anticipate supply short fall for market in Maritimes served by MNP CNG & demand growth in Maritimes & NE pushing up supply shortfall Forward Prices based in Platts Gas Daily, May 13, 2014

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Approximately 225,000 netacres in N.B.

Frederick Brook shale gas:- 67 TCF gross discoveredunrecoverable r esources

Producing ~10 mmcf/d grossfrom McCully area- Hiram Brook gas McCully Field

98.3 BCF 2P gross reserves- ~25 year reserve life index

(GLJ estimate)- $1.60 NPV @ 10/SH on 2P

Advancing F.B. Shale potentialthrough 2014 program

N.B. Government supportive :- Oil/Gas Env Protection Plan- New, competitive Royalty Regime- N.B. Industrial Base

requires supply

McCully/F.B. Shale Exploration &Development Area

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2014 New BrunswickCompletion Program

Goal is to increase production from ourNB operations and prove up Frederick Brook shale

Re-enter and frac 4 existing wells,including 6 to 7 shale intervals & 3 Hiram Sand intervals

Tie in wells to the production

gathering system and produce for thewinter season Also fracture Green Road B-41 well

at Elgin Program runs from Jun to Nov Seeking to provide additional Frederick

Brook production curves Total cost of 2014 program $24.5 MM

(includes Green Road, additional workovers& miscellaneous McCully field work)

Annual decline = 1.8%Produced (01/14) = 364 mmscf EUR = 1.2 Bscf Single 11 tonne water fracIP = 400 mscf/d

F-58 Monthly Production and Forecast

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Frederick Brook Shale

Highlights Proven producibility

- G-41 well IP@ 12 mmcf/d- F-58 well producing for 5 yrs

@ low decline from small frac

Up to 1100 m in grossthickness

Upside in overlying sands

O-59 Elgin vertical well hasmin 8 frac candidates

Connected to M&NP &LNG Terminal

J.V. Opportunity for Pilot plantat Elgin @ $100 to $150 M tocommercialize F.B. play

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AnticostiMacasty Liquids-Rich Shale Highlights

Over 1.5 million gross acreslicensed (~ 0.3 million net acres)

Thickness of Macasty Shaleranges from 31 to 92 metres

Large areas within liquidswindow

> 4% average TOC 34 billion bboe gross

undiscovered resources (bestestimate)

Similar to Ohio Utica shale Quebec Govt supports the

responsible development ofhydrocarbons and the

Anticosti J.V. programunderway this summer

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Anticost i330,000 Net Acres

Old Harry250,000 Net Acres

Southern NewBrunswick225,000 Net Acres


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Anticosti Strategic Partnership$100M Program

58.6 % 41.4%LimitedPartnership

29.3 %20.7%

LimitedPartnership

28.3 % 21.7%

LimitedPartnership

21.7 % 21.7 %

21.7 %35.0 %

$1.9M

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Anticosti Exploration Program

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Go / No-Go Decision From Board of Directors Commercial Discovery?

Initial Exploration Program Confirmatory Exploration Program Development Program

P r o g r a m

C o s t s

F u n d i n g

2014: 15-18 core holes- Objectives: Confirm Macasty shale

characteristics; select drill &frac locations

Additional multi-frac wells &feasibility studies To be determined by the OperatingCommittee

2015: 3 multi-frac horizontal wells- Objectives: Delineate oil/condensate

potential; test 3 wells

Budgeted at $55M, but not toexceed $60M

A .. Stratigraphic program limitedat $25M

To be determined by OperatingCommittee

To be determined by OperatingCommittee

$55 - $60 M to be entirely fundedby RQ and M&P

Initial $40-$45M to be funded byRQ & M&P

Pro rata basis thereafter

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Old Harry Highlights (contd) NFLD well currently targeted for

2015/2016, pending approvals

Corridor submitted its Old Harry ExploratoryDrilling Project Description andEnvironmental Assessment (E.A.) to theC-NLOPB in Feb 2011

C-NLOPB updated SEA completed Apr 14; &it concludes exploration & developmentactivities can be undertaken

C-NLOPB indicates additional consultation isrequired before EA can be completed

Quebec Govt supports exploration of OldHarry prospect pending completion ofimpact studies and negotiations withFederal Govt in 2015

Exploration programs on the Quebec sidewill not proceed until post 2015

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Q1 2014 YTD Netback Q1 2014 Q1 2013

Netback ($/mscf)

Average gas price $ 16.80 $10.19

Transportation expense $ 1.43 $ 1.23

Royalty expense $ 1.69 $ 0.65

Production expense $ 1.22 $ 0.96

Netback $ 12.46 $ 7.35

Production (mmscfpd) 7.6 8.5 Forward Sale Agreements:

- Nov 14 to Mar 15 average of 4,000 mmbtupd at a price of US$11.74/mmbtu

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Q1 2014 YTD Financial Results

$ in thousands Q1 2014 Q1 2013

Sales $ 11,713 $ 8,114

Cash flow from operations 1 8,073 5,311

Net working capital (cash $21.3M) 24,571 15,075

Net income 4,009 2,529

Net income per share

- Basic and diluted 0.045 0.029

Note: 1 Cash flow from operations is a non-IFRS measure. For a reconciliation to IFRS, see Non-IFRS Financial Measures in Corridors Q1 2014 MD&A

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2014 Outlook

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$ in thousands 2014Production (mmscfpd) - net 8.0

Revenues $28.0

($/mscf)

Average gas price $9.25

Transportation expense $1.42

Royalty expense $0.50

Production expense $1.45

Netback $5.88

Net G&A $ 3.5

Cash flow from operations (1) $ 15.0

Capital expenditures $ 27.2

Net working capital $ 18.6

Note : 1 Cash flow from operations is a non-IFRS measure. For a reconciliation to IFRS, see Non-IFRS FinancialMeasures in Corridors Q1 2014 MD&A


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CDH 2-Yr Performance

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Shares outstanding ~ 88 mm Options outstanding ~ 3.5 mm Cash position (May 31) $ 37 M Market Cap (Jun 14) $192 M


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Social Responsibility Corridor is engaged in building trust-

based relationships in the communities

where it operates, including:Building Partnerships : Active member of business

and community groups to further understandingof the industry

Community Outreach : Liaison Committee,

Ongoing Stakeholder ConsultationsEnvironmental Partnerships : Ducks Unlimited,

Nature Conservancy of Canada, NS NatureTrust, Kennebecasis Watershed RestorationCommittee

Charitable Donations : over 40 organizations in thecommunities where we operate, awards of 30education scholarships

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Environmental Partnerships

CommunitySponsorship

Community Outreach


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Strategic Priorities / CatalystsCorridor has sustainability combined with excellent upside potential :

Implement 2014 N.B. Program to increase production & further

demonstrate deliverability from F.B. Shale Maximize cash flow & optimize value of McCully assets including continued

recognition of strong pricing for Corridor production in Boston market Potential LNG export facilities located in N.B. (Repsol) and N.S. (Pieridae)

emphasize Corridors strategic location advantage and promotecommercialization of Frederick Brook Shale

Progress on Anticosti J.V. 2-year program; undertake extensive coringprogram in Summer/Fall 2014 and 3 well drill and frac programplanned for 2015

Focus on advancing Corridors high impact prospects by sourcing J.V.arrangements & using CDH working capital Maintain licenses for Corridors high impact prospects Continue to advance government and stakeholder relations, social

responsibility and regulatory agendas in various jurisdictions

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Documents

AGM2014 Corridor Resources