AB & BC Montney Technical Session Thursday, February 20th, 2020 801 Seventh +15 – 667 7 Street SW THANK YOU TO OUR SPONSORS! AB & BC Montney Day An Update on AB and BC’s Montney Resource Play February 20th, 2020 AB & BC Montney Technical Session Thursday, February 20th, 2020 801 Seventh +15 – 667 7 Street SW QUESTIONS & ANSWERS FORMAT For this workshop, we will use CSUR`s website to make it easy for everyone to share their ideas, opinions and most importantly, questions! How it works: 1) Go to our website through the respective link: Montney Overview Session visit: https://www.csur.com/question/mo Technical Session #1 Session visit: https://www.csur.com/question/1 Technical Session #2 Session visit: https://www.csur.com/question/2 Technical Session #3 Session visit: https://www.csur.com/question/3 2) Submit your question and it will be displayed on the screen 3) Please note that “write your answer” is where you should write your question and submit your answer will complete and post your question to the speaker(s). 4) Please, make sure you are in the right link and session. 1 Page Sponsored by: AB & BC Montney Technical Session Thursday, February 20th, 2020 801 Seventh +15 – 667 7 Street SW AGENDA 08:00 – 08:25 Registration, Networking and Breakfast 08:25 – 08:30 Welcome: Al Kassam and Dan Allan Montney Play Update Moderator: Karen Spencer, University of Calgary Moderator Bio: Ms. Spencer is an experienced oil and gas Professional Engineer with a Master’s Degree in Public Policy. Her unique background includes business and financial knowledge, strong technical experience, and a policy and regulatory focus. She has significant A&D experience throughout Western Canada, with substantial time spent on economic and technical modelling, type curve analysis, agreements drafting, corporate tasks, and reserves work. Her engineering background includes technical and management roles at Amoco Canada, Canadian Hunter, and Burlington Resources, followed by additional positions at a number of small private and public companies. This includes seven years at her own startup, Ki Exploration. Her transition into public policy was driven by the recognition that it is a new day for Alberta’s and Canada’s energy resource development. Ms. Spencer’s public policy work includes studies focused on current major issues including pipelines, induced seismicity, carbon tax, climate change, greenhouse gas emissions, and other issues. Her primary work revolves around energy, the economy, and the environment, both regionally and globally. 08:30 – 08:55 Montney and the importance of liquids in the 2020’s Presented by Nathan Nemeth, Wood Mackenzie Group The Montney is a prolific unconventional play and gas production from the play continues to grow despite depressed AECO prices. The Montney’s competitive economics are driven largely by strong liquids yields, specifically condensate. Liquids production data and yields are vital to understanding the play’s economics, as liquids yields vary considerably across the play. Where is all the condensate production coming from and who is producing it? Premium Edmonton condensate pricing driven by Oil Sands diluent demand and U.S. condensate imports has supported the Montney growth to date. But the diluent market is likely to undergo some significant changes in the 2020’s. A potential Southern Lights pipeline reversal, diluent recovery units and partial heavy oil upgrading could all shake up the market. 2 Page Sponsored by: AB & BC Montney Technical Session Thursday, February 20th, 2020 801 Seventh +15 – 667 7 Street SW Speaker Bio: Nathan joined the Wood Mackenzie upstream research team in 2015 based in the Calgary office. Since joining the company, he has been responsible for providing financial asset valuation and objective commercial analysis on company and play activity throughout Canada. In April 2019, Nathan expanded his coverage to include unconventional play development across Canada and the United States. Prior to joining Wood Mackenzie, Nathan worked in the accounting department as a co-op student for Freehold Royalties and Rife Resources. Nathan earned a Bachelor of Commerce degree from the University of Victoria, Peter B. Gustavson School of Business. He is a Chartered Financial Analyst® (CFA) charter holder. 08:55 – 09:20 Rockies LNG Partners – Connecting the Montney to International Markets Presented by Greg Kist, Rockies LNG Partners Rockies LNG Partners is a consortium of western Canadian based natural gas producers working cooperatively to advance LNG export opportunities for natural gas on the west coast of Canada. The producers hold vast acreage in the Montney and Duvernay plays in northwest Alberta and northeast B.C. and seek to create new outlets for natural gas into growing Asian markets. Canadian sourced LNG is well positioned to have a positive impact on reducing CO2 emissions in Asian markets and Canadian producers are leaders in applying new and innovative practices and technologies to reduce full life-cycle emissions to the benefit of the environment and the economy. Speaker Bio: Greg is the President and CEO of Rockies LNG Partners, a consortium of western Canadian natural gas producers advancing LNG opportunities on the west coast of Canada. Greg was formerly the President of Pacific Northwest LNG which achieved full approval for an LNG development in the Port of Prince Rupert. Prior to that, he was Vice President, Natural Gas Marketing, Corporate and Investor Relations with Progress Energy Resources. 09:20 – 09:45 Canadian LNG: Much Less than Hoped For? Presented by Aaron Engen, Vice Chair, BMO Capital Markets Over the past decade, Canada has seen over 30 LNG projects proposed for its west and east coasts. Despite much early press and energy industry excitement about the then pending LNG boom and an expected “rising tide raises all boats” phenomenon for natural gas producers, only one project, LNG Canada, has reached a positive final investment decision. And currently, only a handful of Canadian LNG projects remain in the news stream. Meanwhile, over roughly the same period, eight US LNG projects reached positive final investment decisions with six are now in production. As energy sector stakeholders consider the WCSB natural gas environment, it is increasingly important to understand the LNG dynamics affecting Canada’s LNG sector prospects. 3 Page Sponsored by: AB & BC Montney Technical Session Thursday, February 20th, 2020 801 Seventh +15 – 667 7 Street SW Speaker Bio: Aaron is a Vice Chair, Investment & Corporate Banking at BMO Capital Markets. Over his two decades of investment banking experience with BMO Capital Markets, his work has focused on advising and financing energy infrastructure companies engaged in developing, constructing and operating major energy infrastructure assets including oil and gas pipelines, midstream facilities, power generation and transmission facilities and regulated local distribution utility assets. Aaron’s investment banking experience includes advising clients on merger and acquisition transactions and opportunities and working with clients in conjunction with debt, preferred share, hybrid and equity financings. Aaron has also prepared evidence and appeared as an expert witness on behalf of regulated utilities before several Canadian regulators in connection with cost of capital, capital structure and other regulatory matters. Prior to joining BMO Capital Markets, Aaron was a partner at a major Canadian law firm, McCarthy Tétrault, where he practiced corporate and securities law, principally in the power and utilities sector. Aaron has an MBA and an LLB from the University of Alberta and a BA from the University of Lethbridge. 09:45 – 10:00 Panel Q&A 10:00 – 10:15 Networking and Coffee Break TECHNOLOGY SESSION # 1 Moderator Karen Spencer, University of Calgary Moderator Bio: Ms. Spencer is an experienced oil and gas Professional Engineer with a Master’s Degree in Public Policy. Her unique background includes business and financial knowledge, strong technical experience, and a policy and regulatory focus. She has significant A&D experience throughout Western Canada, with substantial time spent on economic and technical modelling, type curve analysis, agreements drafting, corporate tasks, and reserves work. Her engineering background includes technical and management roles at Amoco Canada, Canadian Hunter, and Burlington Resources, followed by additional positions at a number of small private and public companies. This includes seven years at her own startup, Ki Exploration. Her transition into public policy was driven by the recognition that it is a new day for Alberta’s and Canada’s energy resource development. Ms. Spencer’s public policy work includes studies focused on current major issues including pipelines, induced seismicity, carbon tax, climate change, greenhouse gas emissions, and other issues. Her primary work revolves around energy, the economy, and the environment, both regionally and globally. 4 Page Sponsored by: AB & BC Montney Technical Session Thursday, February 20th, 2020 801 Seventh +15 – 667 7 Street SW 10:15 – 10:35 Managing non-technical risk in the Montney Presented by Dione McGuinness, Britt Land & Engagement While companies have mastered most technical project risks, non-technical risks from stakeholders continues to prove challenging to many producers in the Montney. Left unmanaged, these risks can continue to grow, making it difficult to gain access to Land in a timely, cost-effective and efficient manner. By staying abreast