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Grizzly Oil Sands
Canadian Oil Sands SummitFebruary 2014
Grizzly Oil Sands
Forward-Looking Statements
Certain statements, estimates and financial information contained in this presentation ("Estimates") constitute forward-
looking statements or information. Such forward-looking statements or information involve known and unknown risks
and uncertainties that could cause actual events or results to differ materially from the Estimates or results implied or
expressed in such forward-looking statements. While presented with numerical specificity, the Estimates are based (i)
on certain assumptions that are inherently subject to significant business, economic, regulatory, environmental,
seasonal, and competitive uncertainties, contingencies and risks including, without limitation, assumptions of resource,
ability to obtain debt and equity financing, capital costs, construction costs, well production performances, operating
costs, commodity pricing, differentials, royalty structures, regulatory approvals, and other known and unknown risks, all
of which are difficult to predict and many of which are beyond the control of Grizzly Oil Sands ULC ("Grizzly"); and (ii)
upon assumptions with respect to future business decisions that are subject to change.
There can be no assurance that the Estimates or the underlying assumptions will be realized and that actual results of
operations or future events will not be materially different from the Estimates. Under no circumstances should the
inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by Grizzly, or any other
person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that Grizzly will achieve
or is likely to achieve any particular results. The Estimates are made as of the date of this presentation and Grizzly
disclaims any intent or obligation to update publicly or to revise any of the Estimates, whether as a result of new
information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not
guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on
forward-looking statements or information due to the inherent uncertainty therein.
There are significant differences in the criteria associated with the classification of reserves, prospective resources and
contingent resources. Contingent resources and prospective resources estimates involve additional risks, specifically
the risk of not achieving commerciality and exploration risk, respectively, not applicable to reserves estimates. No
adjustments for these risks have been made in the groupings of reserves and recoverable resources.
All reference to dollars in this presentation should be assumed to refer to Canadian dollars, unless otherwise noted. All
references to reserves and or resources represent Grizzly’s interest in reserves and resources prior to the deduction of
Crown royalties, unless otherwise noted.
2
Grizzly Oil Sands
Investment Highlights
• > 800,000 net acres in the Athabasca and Peace River oil sands regions (100%
operated, nearly 100% WI) focused on SAGD development
• ~ 3.4 billion bbls of 2P+Contingent Resources(1) across more than 30 project areas
• Significant exploration and exploitation technology upside potential
• Privately owned by Wexford Capital and Gulfport Energy Corporation
• Plan to have > 20 projects ready for development in the next 5 years, with bitumen
production potential of ~170,000 bbbls/d
• Grizzly’s “ARMS” development model enables repeatable and scalable project
development, reducing execution and financing risk
• Steam injection at Algar Lake Phase 1 has commenced
• Windell truck-to-rail terminal at Conklin, Alberta will be ready to ship Algar Lake
and 3rd party oil and receive diluent
• Rail car fleet has been leased to handle Algar Lake production
• Paulina rail-to-barge terminal project design and permitting on the lower
Mississippi River in Louisiana is advanced
3
One of the Largest
Oil Sands Land
Positions in Alberta
Repeatable &
Scalable
Development Model
Using Rail to
Consistently
Access Premium
Markets
1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013
Grizzly Oil Sands
2013 Accomplishments
• Phase 1 construction is complete. Reservoir steam injection commenced in January 2014
• Completed a 29 well delineation drilling program last winter• Filed a 12,000 bbl/d development application in Q4 2013
• Evaluated results of preliminary delineation work and acquired land on this 345 mmbbl Contingent Resource(1) Peace River play
• Advanced the 12,000 bbl/d development application filed in Q4 2012
• Constructed Windell truck to rail terminal near May River• Completed design engineering and filed permits for Paulina rail-to-barge
terminal• Contracted 10 year rail rates with CN and leased rail cars• Began discussions for 3rd party business for both terminals
4
Algar Lake
May River
Thickwood
Rail Strategy
Cadotte
1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013
Grizzly Oil Sands 5
800,000+ Net Acres of Alberta
Oil Sands Leases
Grizzly Oil Sands Lease
Other Oil Sands Lease
Alberta Oil Sands Areas
Producing Thermal Project
Under Construction Thermal Project
City of
Peace River
City of
Fort McMurray
Grizzly Oil Sands
Grizzly Assets
� Grizzly has a high quality resource based on Steam Assisted Gravity Drainage (“SAGD”) with
additional upside using other reservoir recovery processes
• 3.4 billion bbls of 2P + Contingent Resources(1)
• Resources primarily located in low risk clastic reservoirs, with some exposure to the carbonates
� Two thirds of current lease position remains unexplored, which provides upside potential
6
1. Source: GLJ Petroleum Consultants Ltd. as at December 31, 2013; All Contingent Resources herein refer to “Best Estimate”.
Proved
Reserves
(mmbbls)
2P Reserves
(mmbbls)
Contingent
Resources
(mmbbls)
2P Reserves
+ Contingent
Resources
(mmbbls)
Potential(1)
Plateau
Production
(bbls/d)
Clastics (Existing Technologies) (1)
Operating
Algar Lake Phase 1 67 114 35 149 21,000
Near-Term Development Projects
May River 0 157 662 819 120,000
Cadotte 0 0 345 345 34,000
Thickwood 0 0 114 114 18,000
Other Projects
Additional Growth Properties 0 0 1,769 1,769 230,000
Total Existing Technologies 67 271 2,925 3,196 423,000
Carbonates (Technology under Development) (1)
Additional Growth Properties 0 0 187 187 17,000
TOTAL 67 271 3,112 3,383 440,000
Grizzly Oil Sands
Grizzly’s ARMS Development Model
• Grizzly’s innovative Advanced, Relocatable, Modular, Standardized (ARMS) Development Model uses
proven technologies in a more flexible, compact form to generate 20,000 bbls/d of steam
• ARMS will allow Grizzly to exploit smaller bitumen pools and accelerate production from larger pools by
scaling steam capacity to match reservoir development requirements
• Repeatable and manageable project size allows Grizzly to drive down costs and reduce financing risk
• Reduced cost
• Shop focused construction vs. field
• 50% smaller footprint vs. typical SAGD facility
• Fewer pipe racks – less steel
• Advanced communications
• Re-use plants to reduce average cost over time
7
GRIZZLY’S ARMS PLANT CORE
• Reduced downtime
• Production trains can operate independently
• Self-generated power
• Advanced centralized process controls
• Reduced risk
• Portability allows Grizzly to manage production
levels over the life of a reservoir
Assembly in 3 months
Grizzly Oil Sands
Grizzly Project Development Portfolio
8
Property # ARMS
Plants
Production
Potential
(bbls/d)(1)
2P Reserves +
Contingent
Resources(2)
(mmbbls)
Status
Algar Lake 1 1 6,000 50 Producing
Algar Lake 2 1 6,000 50 Regulatory Approval Received
May River Phase 1 2 12,000 157 Regulatory Application filed December 2013
May River Full Field 12 90,000 662Plan to file Regulatory Application by
December 2016
Cadotte 7 50,000 345Plan to file Development Application by
December 2016
Thickwood 1 5,000 50 Regulatory Application filed December 2012
Total 24 170,000 1,314
1. Management Estimates; 2. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013
Attractive Project Portfolio ready for scalable development
Grizzly Oil Sands
Algar Lake Property ~ 12,000 bbls/d
• 100% W.I. in 56,960 contiguous acres of oil sands
leases in the southern Athabasca region
• GLJ has assigned 114 mmbbls of 2P Reserves and 35
mmbbls of Contingent Resources
• The Algar development area has been extensively
explored
• 65 cored delineation wells and an additional 16
appraisal exploration core holes outside of the initial
development area
• Reservoir characteristics
• Up to 22 metres thick bitumen pay
• No bottom water or top gas
• Continuous caprock over 40 metres thick
• Expansion potential:
• 18+ metre thick bitumen pay outside of the initial
development area
• Reservoir steam injection commenced in January 2014
• Ramp to full production by mid 2015
• Phase 2 regulatory approval is in hand
9
T88
T87
T86
T85
T84
T83
T82
T81
R8W4R10R11R12R13R14
Grizzly Oil Sands
Algar Lake Reference Well
AB-16-10-85-12W4
McMurray
Wabiskaw-D
DevonianDevonian
5m
Wabiska
10
Grizzly Oil Sands
Algar Lake Reservoir Quality
Gamma Ray Logs Over Horizontal Production Well Trajectories
Excellent Reservoir Quality over Entire Well LengthExcellent Reservoir Quality over Entire Well Length 11
Grizzly Oil Sands
Algar Lake Construction Pictures
12
Evaporator Tower & Construction Office / Phase 2 Site Tank Farm
Central Processing Facility Well Pad
Grizzly Oil Sands
May River Property ~ 100,000 bbls/d
13
• 46,720 acres of of 100% working interest oil
leases located in one of the most attractive
areas of the Athabasca oil sands
• GLJ has assigned 157 mmbbls of 2P reserves
and 662 mmbbls of Contingent Resources
• Adjacent to industry leading SAGD projects
including Statoil KKD project and close to
Jackfish, Christina Lake and CNRL Kirby
projects
• Located ~130 km southeast of the city of Fort
McMurray and 14 km from the town of Conklin.
Adjacent to Windell rail terminal and other
infrastructure
• 122 stratigraphic wells have been drilled and
logged down to the McMurray Formation
• Initial 12,000 bbls/d regulatory development
application was filed in Q4 2013
• 80 km 2D full field seismic program is
underway in Q1 2014
Grizzly Oil Sands 14
GLJ Best Estimate Net Continuous
Bitumen Pay
819 MM Barrels of High Quality
Recoverable Bitumen
08-18-077-08 40 metres Net
Continuous Pay
• Multiple stacked
channel system
• Analogous to nearby
Cenovus, Devon, MEG
and Statoil projects
• Up to 40 metres thick
bitumen pay with
continuous cap rock
• High permeability
sands should deliver
bitumen at steam-oil
ratios in the 2.2 to 2.8
range
Grizzly Oil Sands
Cadotte Property ~ 50,000 bbls/d
15
• 100% W.I. in 48,960 acres
• GLJ has assigned 345 mmbbls of Contingent
Resources
• Up to 18 meters metres net continuous pay in
lower formation
• Delineation program planned in 2015
Grizzly Oil Sands
Thickwood Hills ~ 12,000 bbls/d
• 100% W.I. interest in 38,400 acres
• 59 cored delineation wells drilled
• GLJ has assigned 114 mmbbls of Contingent
Resources
• Reservoir characteristics (Wabiskaw D):
• Bitumen sand covers entire land block
• Clean, blocky sand up to 20 metres thick
• No bottom water or top gas
• Technology upside in Wabiskaw A:
• Thinner, laterally extensive resource with
excellent properties and less viscous bitumen
• 1.1 billion barrels of bitumen initially-in-place
(13 mmbbls included in contingent resources)
• Area competitors plan to pilot CSS and
conductive heating
• 12,000 bbls/d regulatory development
application filed in Q4 2012
16
R13W4R14R15R16
T88
T89
T90
T91
T92
Grizzly Oil Sands
Rail Transportation Strategy
• Rail provides consistent and flexible access to U.S.Gulf Coast and other markets offering Brent pricing
• Rail diluent requirements are 50% lower than pipeline requirements
• U.S.Gulf Coast refiners want minimum diluent, as shale gas condensate supply has saturated the market
• Condensate back-haul opportunities from the U.S.Gulf Coast are available to resource diluent requirements at lower cost
17
Potential markets for bitumen transport via rail
Potential Rail Transportation Routes
Grizzly Oil Sands
Grizzly’s Rail Transportation Strategy
18
Windell Terminal Site – Conklin, AB
Paulina Terminal Site - Louisiana
• Windell Terminal – 18,000 bbls/d capacity
• located adjacent to our May River site. 160,000 bbls/d of
existing and 1.5 MMbbls/d of planned industry bitumen
production in Windell’s service area
• Will be operational to handle Algar Lake oil production
• Capacity is expandable
• Paulina Terminal – 40,000 bbls/d capacity
• located in proximity to 8 complex refineries in the
Mississippi River with refining capacity of 2.4 MMbbls/d
• permitting is underway and expected to be completed in 6
months
• Grizzly has initiated discussions to handle 3rd party
volumes at both facilities
• Developing a rail loadout facility in Conklin, AB
(Windell Terminal) and a rail to barge off-load facility
on the lower Mississippi River (Paulina Terminal)
• Both terminals are located on CN main line. Grizzly
has a 10-year rate contract with CN.
Grizzly Oil Sands
2014 Business Plan Highlights
• Demonstrate Algar Lake reservoir and ARMS plant performance by executing a
successful production ramp
• Achieve positive cash flow by year end
• Advance the 12,000 bbls/d May River development application
• Conduct 2D seismic program to direct future core hole drilling to support the filing of a
“full field” development application
• Prepare ARMS design and execution plan based on Algar project experience
• Conduct detailed reservoir physical and simulation studies
• Delineation and regulatory work plans for 2015 execution
• Advance Thickwood regulatory development application
• Establish rail transportation capability, efficient blending metrics and access to
markets that transact based on world oil prices
• Receive development permits, sanction and construct Paulina
19
Algar Lake
May River
Thickwood
Rail
Strategy
Cadotte
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