Compeer Area Viking Resource Play

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Compeer Area Viking Resource Play
Data as of September 30, 2019 unless otherwise noted
Presentation transcript:

Compeer Area Viking Resource Play Focus on Viking light oil resource plays with new technology

Key Considerations Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Strongbow Resources Inc.(“Strongbow” or “the Company”), or developments in Strongbow’s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. In particular, statements concerning oil and gas reserves may involve the implied assessment that the resources described can be profitably 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 Strongbow 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 verification has been undertaken by Strongbow or an independent third party of the assumptions, data, results, calculations and forecasts presented or referred to herein. The recipient acknowledges that neither it nor Strongbow intends that Strongbow act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person. Each of the recipient, by accepting and providing this Overview Memorandum respectively, expressly disclaims any fiduciary 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 Overview Memorandum. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include any statement relating to future events, conditions or circumstances. Strongbow cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, changes in the resource market; the market focus of Strongbow’s revenue mix and margin targets; operations priorities; and strategy for its products and solutions. The risks and uncertainties that may affect forward-looking statements include, among others, the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of Strongbow’s customers, demand for Strongbow’s assets and other risks detailed from time to time in Strongbow’s filings with the Securities and Exchange Commission and Canadian provincial securities regulators. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Jan 25, 2013 NASDAQ BB:STBR

Strongbow Energy Inc. 108,886,705 MM shares currently 80 % held by insiders. Largest shareholder Holloman Corp: 30 MM Strong management team: Robert Martin CEO and President Doug MacLellan COO Herbert Schmidt Jr. CFO Jan 25, 2013 NASDAQ BB:STBR

Development Plan Phase 1 completed Drilled 5-29-33-2W4Hz Compeer Area of Alberta. Earned 8 sections of land. Phase 2 Test 5-29-33-2W4 Hz drill 4 wells per section Development of Compeer up to 30 wells Jan 25, 2013 NASDAQ BB:STBR

Metrics COMPEER: Wells IP at 50 BOPD Capital of $940,000 per well Jan 25, 2013 NASDAQ BB:STBR

First Year Projections Jan 25, 2013 NASDAQ BB:STBR

Annual Projected Cash Flow and Capital Summary Jan 25, 2013 NASDAQ BB:STBR

Viking Light Oil Dodsland Compeer Jan 25, 2013 NASDAQ BB:STBR

Viking Light Oil 1. Large OOIP/potential to expand play. Estimated of 6.0 billion barrels of original oil in place places the Viking play second only to the Cardium in terms of magnitude among emerging tight oil plays. There is potential for significant expansion of the play. 2. Attractive per-well economics,. Estimated IRRs of 57% and breakeven of US$34.00/bbl, Viking Drilling and completion cost much lower than Cardium or Bakken 3. Well delineated/low geological risk. Initially discovered in the 1950s, Viking oil pools in southwest Saskatchewan and SE Alberta have been well delineated with vertical drilling, and hence there is little geological risk associated with the play. 4. Upside to technology/cost reductions. As with most tight oil and tight gas plays that are exploitable using horizontal multi-stage fraccing, continued technological innovations to completion techniques have the potential to increase recovery factors and improve economics. In the case of Viking, the impact of expected cost reductions on per-well economics is magnified, because drilling costs for these relatively shallow wells are already significantly lower." Jan 25, 2013 NASDAQ BB:STBR

Compeer Area Dodsland Penn-West Esther Area – Viking Hz Production Jan 25, 2013 NASDAQ BB:STBR

Regional Viking Trends VIKING OIL Compeer Local High Provost Esther Regional Viking Trends Dodsland Jan 25, 2013 NASDAQ BB:STBR

Compeer Area Viking Oil – Development Plan Viking HZ MSF Type Well Curve Assumptions Oil recovery per well = 2.9 million Bbls/section divided by ultimately up to 4 wells/section * 10% Rf = 72,625 Bbls/HZ Gas recovery per well = 2.9 Bcf/section divided by ultimately up to 4 wells/section * 20% Rf = 141 MMcf/HZ Average (risked) IP of 8 HZ MSF Viking wells is equal to 46 bbl/d oil & 145 Mcf/d (average over life GOR of 4,000 Scf/bbl) Locations Jan 25, 2013 NASDAQ BB:STBR

Compeer Area Viking Oil 100/5-29-33-2W4 Well 5 m of net pay 20 % porosity Sw = 30% So= 20% Bo = 1.1 34 o API 2.9 Million Bbls per Section 2.9 Bcf per Section TYPE LOG 100/5-29-33-2W4 Jan 25, 2013 NASDAQ BB:STBR

Compeer Area Alberta Crown Royalty: 7.5% on each new Horizontal oil well for 18 months or 50,000 Bbls (HONWRR). 0% to 40% based on flow rate and price thereafter. Farmin on Harvest Petroleum: subject to a sliding scale overriding royalty of 5 to 15%. Earned 8 sections after first well drilled. Development Well costs are estimated to be $450,000 and $400,000 for completion and multistage frac. Jan 25, 2013 NASDAQ BB:STBR

STRONGBOW RESOURCES INC. Suite 700, 815 8th Ave SW. Calgary, Alberta T2P 3P2 Tel: (403) 269-9550 Jan 25, 2013 NASDAQ BB:STBR