Embed Size (px)
Citation preview
KEY HIGHLIGHTS• Current production of 656 boe/d (269 b/d medium gravity oil and NGLs and 2,321 Mcf/d of gas)• Working interests range from 4.2% to 100% with an average of approximately 58%, generally
from the base of the Viking to base of Pekisko, in a multi-season area, ~1500m depths• There are extensive facilities in this offering including two gas plants, fi eld compression
and fi ve oil batteries• EOG has actively managed environmental liabilities• This is a unique opportunity to capture an excellent position in the best of the Twining Pekisko oil trend,
potentially setting up further consolidation• A number of Pekisko infi ll locations have been identifi ed supported by good reservoir pressures• Oil and liquids-rich gas potential identifi ed in the Mannville• A seismic workstation will be available
MARCH 2013
EOG RESOURCES INC. - TWINING OIL ASSET DISPOSITION ALTACORP CAPITAL SITUATION MAP MARCH 2013
WWW.ALTACORPCAPITAL.COM
The vendor may not be contacted regarding this offering without prior consent from AltaCorp Capital.
gas)s))))erallyy
Lee GirardoManaging DirectorInvestment [email protected]
Leslie Kende, P.Eng. Managing DirectorAcquisitions & [email protected]
For further information contact:
Gurdeep GillManaging DirectorInvestment [email protected]
Jim Lee, P.Geol.DirectorAcquisitions & [email protected]
TWINING PEKISKO
AltaCorp Capital Inc. has been engaged by EOG Resources Canada Inc. as exclusive advisor in the divestiture of its Twining Assets in Central Alberta
PROCESS DESCRIPTIONReview of Documents March 27 to April 29, 2013Bid Deadline Noon Calgary Time April 30, 2013
Questions may be directed to [email protected]
ASSET OVERVIEWTWINING LIGHT OIL
TWINING PEKISKO TREND MAP
TWINING MANNVILLE
TWINING MANNVILLE TREND MAP TWINING MANNVILLE COMPOSITE LOG
TWINING PEKISKO HORIZONTAL WELLS
TWINING PEKISKO DEPOSITIONAL MODEL SCHEMATIC
Legend
WellsProject WellsWells drilled to Miss' & deeper
Pekisko EvaluationEOG LandPekisko 25m Gross IsopachPekisko Enclosed Thin (<25m)Pekisko Erosional EdgeLine of Section
INCR
EASING
WATER
SATURATIO
N
BANFF
OSTRACOD MEMBER
ELLERSLIE
GLAUCONITIC QUARTZOSE CHANNEL
GLAUCONITIC LITHIC CHANNEL
MEDICINE RIVER COAL
Twining Pekisko Horizontal Wells(Wells with cum' oil > 10,000 Bbls)
91 94 97 00 03 06 09 12 13Date (Month/Years)
110
100
1000
PRD Cal-Day Avg OIL (Bbl/Day)
• ERCB estimates OOIP of 921 MMbbls; recovery to date is <5%; ERCB OGIP of 552 Bcf
• Abundant core control has documented the inter-fi ngering nature of the reservoir resulting in compartmentalization
Offshore Wind
Proximal Tempestites &Bryozoan/Pelmatozoan
Shoal/Mud Mosaic
PelmatozoanShoal
Oolitic & Mixed-Skeletal
Shoals Back BarrierPlatform
Tidal Flat& Sabkha
Reservoir Non-Reservoir
PEKISKO FORMATION - TWINING FIELDModifi ed from Figure 3.2, Reid 1998
• EOG last drilled in this area in 2006, a horizontal Mannville CBM gas well
• Thick, complex, overlapping Mannville sands host excellent original-in-place volumes of medium gravity crude and liquids rich gas
• The Mannville sands have coalesced and concentrated along the Ghost Pine incised valley
• Horizontal multi-fraced wells will access additional oil and liquids-rich gas, especially in lithic sands at <1,500m depths
HORIZONTAL PEKISKO WELLS
Legend
WellsProject WellsHzntl Pekisko WellsCoda Hzntl Pekisko WellCdn Abraxas Hzntl Pekisko WellsArrow Point Hzntl Pekisko WellsPengrowth Hzntl Pekisko WellsEOG Hzntl Pekisko Wells
Pekisko EvaluationEOG LandPekisko 25m Gross IsopachPekisko Enclosed Thin (<25m)Pekisko Erosional Edge
Pengrowth 1-10-33-25W4Dec 2012 Dly Rate =75 BOPD
EOG
CODARIG RELEASE
DATE: DEC 19, 2012
CHARGERLOCATION
Cumulative Oil ProductionGreater Than 100,000 bbls per Well
ARROW POINT(AKA CONNACHER)
CANADIANABRAXAS
Early Results When Reservoir Pressure Still Suffi cient Pengrowth 1-10-33-25W4
• This offering represents a unique opportunity to capture a signifi cant position in the highest quality trend of the Pekisko
• There have been a number of horizontal wells drilled targeting Pekisko oil, the most successful have contacted the best reservoir with good remaining reservoir pressure
• The upside to be presented in the Data Room will focus strictly on areas where there is evidence of favorable reservoir pressure including where there may be evidence of partial water drive
• The most recent Pekisko horizontal well 01-10-33-25W4 has produced >60Mbbl of oil in 23 months
TWINING PEKISKO - COMPARTMENTALIZATION SCHEMATIC AND CORE CROSS SECTION
16-18-031-24W4 06-20-031-24W4
01-20-031-24W4 06-21-031-24W4
14-15-031-24W4
16-15-031-24W4 07-14-031-24W4
BA
NFF
PEK
ISK
OS
HU
ND
AM
AN
NVI
LLE
k kk
k k k k k
Modifi ed from Figure 2.11, Reid 1998
16-16-31-24W4
DISCLAIMER: Except with respect to the estimated reserves information herein as more fully discussed below, this Situation Map is based on information provided by EOG Resources Canada Inc. and its affi liates (“Company”) and is delivered on behalf of the Company by AltaCorp Capital Inc. (“AltaCorp”), which operates its acquisitions and divestitures business under the name AltaCorp Capital. Th is Situation Map is delivered to interested parties (“Interested Parties”) for the sole purpose of providing an overview of the Company‘s proposed asset divestiture (“Transaction”).Th e Company and AltaCorp have the right to qualify Interested Parties. Interested Parties who are not known to AltaCorp or the Company may be requested to supply references and/or information as to fi nancial capability prior to, or concurrent with, delivery of an executed Confi dentiality Agreement. Confi dentiality Agreements will not be accepted from agents acting for undisclosed parties. Th e off ering procedure and other conditions of the Transaction are available in the Data Room or from AltaCorp. Th e Company or AltaCorp may modify the off ering procedure or withdraw from the process at any time without notice to, or liability to, any Interested Party.Th e information contained in this Situation Map and in any data room (“Data Room”) coordinated by AltaCorp in connection with this Transaction (“Information”) is for informational purposes only, and does not under any circumstances constitute (a) an off ering or solicitation for the sale of securities; (b) a recommendation to purchase, sell, or hold any securities; (c) an off ering memorandum as contemplated by applicable securities laws; or (d) an obligation by the Company to enter into any proposed transaction; or (e) investment, legal, fi nancial, tax, accounting or other advice of any kind. Th e Information should not be relied upon by an Interested Party in considering the merits of any particular transaction. Each Interested Party should consider its own fi nancial situation, objectives and needs, and conduct its own independent investigation and assessment of the Information, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate.Except with respect to the Information herein regarding estimated reserves as more fully discussed below, the Information has been prepared on the basis of publicly available information and information made available to AltaCorp by the Company. AltaCorp has relied upon and assumed, without independent verifi cation, the accuracy or completeness of all such Information. It contains selected information and does not purport to be all-inclusive or to contain all of the information that may be relevant to the Transaction. Th e Interested Party acknowledges that circumstances may change and that the Information may become outdated as a result. AltaCorp and the Company are under no obligation to update or correct the Information. Th e Company and AltaCorp are under no obligation to provide any Interested Party with access to any additional information.AltaCorp, its related bodies corporate and other affi liates, and their respective directors, employees, consultants and agents (“AltaCorp Group”) and the Company make no representation or warranty as to the accuracy, completeness, timeliness or reliability of the contents of this Situation Map or any Information contained in any Data Room. To the maximum extent permitted by law, no member of the AltaCorp Group accepts, nor does the Company accept, any liability (including, without limitation, any liability arising from fault or negligence on the part of any of them) for any loss whatsoever arising from the use of this Situation Map or its contents or otherwise arising in connection with it or from the use of any Information contained in any Data Room. Th e Company and the AltaCorp Group shall have no liability for any representations (expressed or implied) or for any written or oral communications with any Interested Parties in the course of their review of the Transaction, or for any implied terms or obligations arising from operation of law or otherwise, other than, in the case of the Company, those representations and warranties given by the Company in any defi nitive purchase and sale agreement.Th e estimated reserves (proved, probable or otherwise) included herein were prepared by Sproule Associates Limited, are subjective and are provided as a convenience to potential purchasers without any representation or warranty by the Company or the AltaCorp Group as to their accuracy or completeness. Such reserve estimates have been determined by Sproule Associates Limited in accordance with the methodologies and defi nitions of National Instrument 51-101 (“NI 51-101”). Interested Parties should note that the Company has been granted an exemption from certain aspects of NI 51-101 permitting it, via its parent company, EOG Resources, Inc. (“EOG”), to determine and report its reserves in accordance with the United States Securities and Exchange Commission (“SEC”) rules and regulations to which EOG is subject and pursuant to which EOG (along with its independent petroleum consultants), using reserve engineering methodologies, assumptions and procedures which diff er from those employed by Sproule Associates Limited, prepares and publicly reports the estimated reserves of EOG and its consolidated subsidiaries, including the Company. Accordingly, the reserve estimates herein are diff erent than those included in the reserve estimates publicly reported by EOG in its fi lings with the SEC, due to (i) the diff ering requirements of NI 51-101 and the SEC rules and regulations and (ii) the diff ering reserve engineering methodologies, assumptions and procedures of Sproule Associates Limited and of EOG and its independent petroleum consultants. Th e reserve information contained herein is provided on a confi dential basis as a convenience and is not intended to be public disclosure of EOG or any of its subsidiaries (including the Company), nor is the reserve information contained herein intended to supplement or modify, or correspond to or be consistent with, the reserve information publicly reported by EOG in its fi lings with the SEC.Certain statements contained herein may constitute forward-looking statements which involve risks and uncertainties that could cause actual events or results to diff er materially from the estimated or anticipated events or results implied or expressed in such forward-looking statements. In particular, statements concerning oil and gas reserves may involve the implied assessment that the resources described can be profi tably produced in the future, based on certain estimates and assumptions. No independent third party has reviewed the reasonableness of any such statements, estimates or assumptions. No member of the AltaCorp Group or the Company represents or warrants that such forward-looking statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the forward-looking statements. Similarly, no representation or warranty is made that the assumptions on which the forward-looking statements are based may be reasonable. No audit, review or verifi cation has been undertaken by the AltaCorp Group, the Company or an independent third party of the assumptions, data, results, calculations and forecasts presented or referred to herein.
Th e Interested Party acknowledges that neither it nor AltaCorp intends that AltaCorp act or be responsible as a fi duciary to the Interested Party, its management, stockholders, creditors or any other person. Each of the Interested Party and AltaCorp, by accepting and providing this Situation Map respectively, expressly disclaims any fi duciary relationship and agrees that the recipient is responsible for making its own independent judgments with respect to any transaction and any other matters regarding this Situation Map.
RESERVES DISCLAIMER: Reserves are from the Sproule Associates Limited Reserve Report eff ective March 31, 2013, and were prepared by Sproule Associates Limited in accordance with National Instrument 51-101 (“NI 51-101”). Conversely, EOG is subject to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and, accordingly, prepares and publicly reports the estimated reserves of its consolidated group of companies in accordance with such rules and regulations. Moreover, the reserve engineering methodologies, assumptions and procedures employed by Sproule Associates Limited diff er from those employed by EOG and its independent petroleum consultants. As a result, the reserve estimates refl ected in the above table are diff erent than those included in the reserve estimates publicly reported by EOG in its fi lings with the SEC. Please refer to the Disclaimer at the conclusion of this Situation Map for further discussion.
Note to Reader: Please see our website at: www.altacorpcapital.com for the EOG Resources Inc. disclosure documentation
Liquids Gas Total Liquids Gas Total Liquids Gas Total Proved P+P Gross Net P+P RLI(bbls/d) (mcf/d) (boe/d) (mbbls) (mmcf) (mboe) (mbbls) (mmcf) (mboe) ($M) ($M) (acres) (acres) (yrs)
Working Interest 265 2,314 651 956 6,799 2,089 1,706 9,603 3,307 23,909 32,306 101,089 61,643 13.9Royalty Interest 4 7 5 10 71 21 12 89 27 707 825 10,735 3,485 14.8
Total 269 2,321 656 966 6,870 2,111 1,719 9,692 3,334 24,615 33,131 111,823 65,129 13.9(1) Current production based on January 2013 working interest volumes(2) Reserves are from the Sproule Associates Limited reserve report effective March 31, 2013
Current Sales Volumes (1)Volumes (2) Net Present Value (2)
Total Proved P+P BT PV12% Land
2011 2012 2013 2013 2014 2015FY FY Jan Mar Apr Dec FY FY
Actual Actual Estimated Forecast Forecast Forecast
Sales VolumesOil (bbls/d) 247 229 226 239 415 508Gas (mcf/d) 2,738 2,383 2,414 2,145 2,355 2,318NGL's (bbls/d) 76 70 83 51 56 55
Total (boe/d) 780 695 711 647 863 949
Income (in thousands unless otherwise noted)
RevenueOil 7,739 6,429 1,556 5,470 12,937 15,127Gas 4,124 2,248 729 2,130 3,559 3,721NGL's 2,224 1,768 517 1,051 1,565 1,472Royalty Income 181 115 29 144 176 142Other (6) 35 9 0 0 0
Total Revenue 14,261 10,595 2,841 8,795 18,238 20,462
less Royalties (1,214) (978) (256) (838) (2,022) (2,091)less Operating Costs (7,212) (5,710) (1,408) (3,576) (5,647) (6,112)
Net Operating Income 5,835 3,907 1,177 4,381 10,569 12,258
Forecast Capex 303 23,127 0
Per Unit PricesOil Price ($/bbl) 85.72 76.79 76.52 83.39 85.51 81.61Gas Price ($/mcf) 4.13 2.58 3.36 3.61 4.14 4.40NGL Price ($/bbl) 79.65 69.48 69.25 74.46 76.31 73.05
Average Price ($/boe) 50.08 41.63 44.37 49.41 57.88 59.06
Royalty Rate 8.5% 9.2% 9.0% 9.5% 11.1% 10.2%Operating Costs ($/boe) 25.33 22.44 22.00 20.09 17.92 17.64
Netback ($/boe) 20.49 15.35 18.38 24.61 33.54 35.38
Actuals are from lease operating statements and estimates are from company management
Gross Net WI
Total 111,823 65,129 58%
Oil NGLs Gas Total Oil NGLs Gas Total NPV 10% NPV 12% NPV 15%(mbbls) (mbbls) (mmcf) (mboe) (mbbls) (mbbls) (mmcf) (mboe) ($M) ($M) ($M)
Proved Developed Producing 643 149 6,235 1,831 603 101 5,821 1,673 26,189 24,322 21,997Proved Developed Non Producing 23 11 459 110 21 7 431 100 1,188 1,066 919Proved Undeveloped 137 4 177 170 122 3 167 153 517 774 1,092
Total Proved 802 164 6,870 2,111 745 111 6,419 1,926 26,861 24,615 21,824Total Probable 685 68 2,822 1,223 585 47 2,583 1,062 10,391 8,516 6,299
Proved Plus Probable 1,487 232 9,692 3,334 1,330 158 9,002 2,988 37,252 33,131 28,123
Reserves are from the Sproule Associates Limited report effective March 31, 2013(1) Company working interest including gross overriding receivable royalty volumes(2) Company net volumes after royalties
Gross Volumes (1) Net Volumes (2) BT Net Present Value
PDP46%
PDNP2%
PUD8%
Prob44%
Gross Liquids Volumes(mbbls)
PDP64%PDNP
5%PUD2%
Prob29%
Gross Gas Volumes(mmcf)
PDP72%
PDNP3%
PUD
Prob25%
Net Present ValueNPV 12%
Situation Map, Confi dentiality Agreement and electronic land layer are available on our website at: www.altacorpcapital.com
Please contact Kelly Wylie at 403.539.8589 for access to the virtual data room, scheduling for a presentation and access to the seismic workstation.
W E
0
500
1,000
1,500
2,000
2,500
3,000
2011
2012
Jan
- Mar
201
3
Apr
- D
ec 2
013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
mcf
/d
Daily Gas Productionmcf/d
PDP PDNP PUD Prob
0
100
200
300
400
500
600
2011
2012
Jan
- Mar
201
3
Apr
- D
ec 2
013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
bbls
/d
Daily Oil and NGL Productionbbls/d
PDP PDNP PUD Prob
Forecast
Forecast
(as at March 19, 2013)
