utah board of oil, gas, and mining earth day awards march 2015 leland bench paleo/archaeological...

UTAH BOARD OF OIL, GAS, AND MINING EARTH DAY AWARDS

MARCH 2015

Leland Bench Paleo/Archaeological Project

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CPG SNAPSHOT

TSX & NYSE: CPG Key Metrics

2014 Exit Production (E) 149,000 (>90% oil weighted)(2)

2014 Funds Flow (E) $6.04/share(3)(4)

Annual Dividend $2.76/share

Yield 6.2%(5)

Payout Ratio (Q2) 45%(6)

Corporate Netback (Q2) $60.55(2)(7)

Debt to Cash Flow ratio 1.1x(8)

P+P Reserves728.9 million boe (RLI >14 years)(8)(9)

Drilling Inventory~7,650 locations (12 years of inventory)(10)(11)

CRESCENT POINT ENERGY | UDOGM EARTH DAY AWARDS

Develop and exploit• Increase recovery factors through infill drilling, waterflood optimization and

improved technology

Acquire• Focus on high-quality, large resource-in-place pools with production and

reserves upside

Manage risk• Maintain strong balance sheet, significant unutilized bank line capacity and

3 ½-year hedging program

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BUSINESS STRATEGY


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GROWTH ON ALL FRONTS

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800P+P Reserves (MMboe)

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160,000Production Growth (boe/d)

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Funds Flow (billions)

Demonstrated year over year growth in:• Reserves• Production• Cash Flow


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DUAL-TRACK GROWTH

Large Oil Reserves in Place

• Over 18 billion bbls OOIP(1)

• Low recovery to date of ~2.8%

Horizontal Cemented Liner Technology

• Creating economic value through greater recovery rates per well

• Lower decline rates across asset base

Waterflood with Scale

• Reducing decline rates generates significant free cash flow over the long-term

• Implementing waterflood across asset base increases recovery factors over time, with minimal capital invested

• Initiation of first waterflood pilot planned in Uinta early 2016

Uinta



• >1,000 net locations identified on Crescent Point lands (1)

• Current production of ~12,000 boe/d(2)

• 5.2 billion bbls of OOIP with only 0.4% recovered to date (3)

• Upside reserves potential of >75 million bbls on primary recovery(4)

• Plan to spud first operated horizontal well in basin in early September

UINTA BASIN OIL RESOURCE PLAY

Crescent Point Lands

Type Well EUR

Production(bbl/d)

1st Month Avg

Production (bbl/d)1st Year Avg.

NPV @ 10%

Rate of Return

Payout (Months)

100 mbbls 130 74 $878 38% 25

170 mbbls215 117 $2,612 175% 10

Randlett Vertical Type Well Economics(5):

Uinta Basin future drilling locations

6CRESCENT POINT ENERGY |

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RANDLETT – JUST GETTING STARTED

• First horizontal drill late 2014• First waterflood pilot planned for early 2016• Significant amount of acreage is undeveloped to date


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ACTIVE IN THE COMMUNITY

• Employ 54 workers in the Roosevelt area• 32% of CPE Utah Employees are

classified as Ute Tribe, American Indian, Alaskan Native and Native Hawaiian

• 2014 capital budget for Uinta Basin ~$205 million

• Through Donations and Fees, CPE contributed $110,000 to tribal events, training and scholarships. A donation of $250,000 to the Roosevelt City Recreation and Aquatic Center.

• Crescent Point Energy Scholarship for Ute Tribe students at the University of Utah.

• Crescent Point Energy has created scholarships for students from the basin and the Ute Tribe to the Utah State University, and Uintah Basin Applied Technology College, Petroleum Technology Program.


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ENVIRONMENTAL AND SAFETY LEADERS

• Minimizing Environmental Impact• Asset Retirement Obligation Fund (ARO) restores

environmental condition of all sites to equal (or better) levels than pre-development

• Environmental Emissions Reduction Fund (EERF) targets minimized flaring and venting of natural gas and tracking of emissions; targeted reductions year-over-year

• Responsible fresh water use, regular tracking and reporting of water use; technology improvements to reduce overall usage

• Maximizing Health and Safety• ‘Right to Refuse Unsafe Work’ Policy minimizes unsafe

work practices• Cell Phone-Free Driving Policy• Contractor management ensures contractors are

qualified and equipped to work legally and safely


• In 2014, Crescent Point Energy commenced work to build an access road into N. Monument Butte (Sections 26 & 35, T4S, R2E) across private surface owned by Deep Creek Investment, LLC (Mr. Allen Smith).

• Significant archaeological and paleontological discoveries were made prior to and during site construction.

• No federal nexus associated with access roads/well locations, thus no required mitigation or avoidance for sensitive resources

• As a good-faith effort, CPE took action to protect and preserve both the archaeological site and the paleontological specimen for future generations

LELAND BENCH PALEO/ARCH PROJECT

10CRESCENT POINT ENERGY | UDOGM EARTH DAY AWARDS

LELAND BENCH ROCK ART


• Site contains eleven rock art panels with Archaic, Fremont, Numic and Ute style elements

• Rock art covers a long, continuous stretch of time, possible from the Archaic period (600 B.C. – A.D. 500) to present day

LELAND BENCH ROCK ART


LELAND BENCH ROCK ART: CPE Mitigation


• Although not required, CPE implemented the following mitigation/preservation measures to minimize adverse impacts to the 11 identified rock art sites:

• Dust minimization through implementation of BMPs• Dust suppression; although widely used to minimize fugitive dust,

magnesium chloride may accelerate erosion of rock art when airborne, as such, CPE has committed to use alternative dust suppressants (i.e., untreated water, Pennz Suppress D, TerraLOC, or LignoSulfonate)

• On-site cultural resource monitor during active construction of the well pads and access road

• On-going monitoring• Establish and record baseline conditions of rock art locality including detailed site mapping, large-format photography of

rock art, and 3D laser scanner mapping of the rock art panels• Site revisits and assessments to compare rock art’s condition with baseline data; should significant changes be noted

during site assessment revisits, additional mitigation would be implemented

• Installation of remote security cameras to prevent vandalism

LELAND BENCH PALEONTOLOGICAL SPECIMEN


• A specimen of an early carnivore, Miacis uintensis, was discovered during construction; dirt work was discontinued until a qualified paleontologist could properly excavate the fossils

• Specimen was excavated, cleaned, labeled and preserved by Uinta Paleontological Associates and delivered to Mr. Allen Smith

• One other Miacis uintensis specimen was discovered in the Uinta Basin in 1894; this newly discovered, rare specimen is scientifically very important due to the preservation of parts of the skeleton not present in the previous discovery.

• Specimen is thought to date back 40 million years to the Eocene epoch on the edge of Lake Uinta

• Because of the significance of this find, CPE has committed to performing paleontological clearance surveys for proposed roads and well pads in the area, although not required


LELAND BENCH PALEONTOLOGICAL SPECIMEN

CRESCENT POINT ENERGY | UDOGM EARTH DAY AWARDS 16

PRESENTATION TO MR. SMITH

CRESCENT POINT ENERGY | UDOGM EARTH DAY AWARDS 17

• Crescent Point is committed to responsible development of mineral resources while preserving and enhancing the environment around us for future generations.

• Crescent Point does not wait for Agency direction but proactively works with all identified stakeholders to ensure awareness of resources.

• Crescent Point employees are empowered to take notice and make a call when field observations are made and deserve additional research.

• We pride ourselves on being a good neighbor.

Summary of Resource Commitment

utah board of oil, gas, and mining earth day awards march 2015 leland bench paleo/archaeological...

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