cardium nuvista november 2010 presentation

8/3/2019 Cardium NuVista November 2010 Presentation

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May 13, 2010 Nuvista Energy Ltd.

November 2010


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November 2010 Corporate Presentation

Conventional ResourceValuation Valuation

In transition (conventional resource)

Accumulate Resource TEST CONCEPTS Multi-Year Development

More resource exposure per share than many of our peers

- Only 88.6 MM shares outstanding

- Opportunity inventory is 3x market capitalization

- More than half of future value driven by oil and natural gas liquids

- Development plans for 2011 and beyond beginning to take shape


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November 2010

Production of 28,244 boe/d (Q3 2010); 73% natural gas

Approximate enterprise value of $45,500/boed

Dividend implemented in 2010; 2.2% yield

$510 million bank facility; Q3 exit net debt $447 million

9% management and director owned

Building per share value for 7 years

Corporate Profile

Corporate Presentation


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Production Growth Per Share

Average production per million shares outstanding (boe/d)



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2009 Proved + Probable Reserves Summary

Dec. 31 Dec. 31 July 12009 2008_ _2003_

Reserves (MMboe) 97.8 77.7 6.8

RLI (years) 9.5 8.3 5.1

NPV @ 10% ($ millions) 1,586.0 1,350.7 88.3

Reserves minus Debt ($/share) $13.81 $12.75 $1.86

FDC* Booked ($/P+P boe) $1.67 $1.55 $0.57

Potential FDC* ($/P+P boe) >$30

* Future Development Capital


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Reserves Growth Per Share

Reserves per share outstanding (boe)



7/30November 2010 Corporate Presentation

Current

Core Regions Production

(Boe/d)

1. Deep Basin 15,500

2. W3/W4 8,000

3. NWAB/NEBC 4,800

Core Regions



NuVista Plays


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Repeatable Oil Resource Exposure


Area FormationTotal

Net SectionsPotential No.of HZ Wells

Q4/09 - 2010Test Wells

Pembina/Ferrier CARDIUM 125 > 70 7

Wapiti CARDIUM 90 >130 4

WC Sask. Birdbear 15 > 30 10 - 12

>230


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Oil Resource

Area FormationD & C

Cost/WellTarget Reserves/Successful Well

($MM)

Pembina/Ferrier CARDIUM 3.5 150 Mbbls

Wapiti CARDIUM 2.8 150 Mbbls

WC Sask. Birdbear 1.0 100 Mbbls



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Repeatable Gas Resource Exposure

Area FormationTotal

Net SectionsPotential No.of HZ Wells

Q4/09 - 2010Test Wells

Kaybob Montney 6.5 > 20 6 - 10

Pembina/Ferrier NOTIKEWIN 180 > 80 2 - 3

Wapiti Dunvegan 100 > 40 1 - 2

Wapiti NIKANASSIN 160 > 75 1 - 2

Wapiti MONTNEY 155 >250 2 - 3

>465



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Gas Resource


Area FormationD & C

Cost/WellTarget Reserves/Successful Well

NVAEstimated

Liquid Yield

($MM) (Bbls/MMcf)

Kaybob Montney 4 2.5 Bcf 25

Pembina/Ferrier NOTIKEWIN 4.5 2 - 4 Bcf 25

Wapiti Dunvegan 4 2.5 Bcf 90*

Wapiti NIKANASSIN 6 3 - 5 Bcf 50*

Wapiti MONTNEY 6.5 3 - 5 Bcf 100*

* Includes deep cut liquid yields



Potential Capital ($3.4 Billion)

1.65

0.63

0.48

0.36

0.150.10 0.03

Wapiti Montney

Cardium

Wapiti Nikanassin

Pembina Notikewin

Wapiti Dunvegan

Kaybob Montney

WC Sask Birdbear


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Wapiti Montney

Land Holdings Gross Sections WISections 167 94%

NuVista Activity Gross Wells WIPre 2010 3 95% Vertical 3 95% Horizontal - -

2010 Planned Wells Vertical - - Horizontal 2-3 87.5%

New Discovery well at 9-22-68-8W6 onnorth block. NVA Farm-in at Bilbo Q3drill on south block.

LEGEND

NVA Lands

NVA Montney Lands

NVA Vertical Wells

2010/11 Horizontal Locations

Areas of Current HorizontalMontney Development

NVA VerticalDelineation Program:3 Gas Tests inMontney




Wapiti Montney 9-22-68-8W6 (1st month IP)

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RAWG

ASRATE

(MMCF/D)

9-22-68-8W6M Production & Condensate Rate & Yield

Condensate

Raw Gas

Condensate Yield

August 6 - September 7 (Field Estimate)CumP (raw gas) = 169 MMCFCumP (raw condensate) = 6,430 BBLSCalendar Daily Average (raw gas) = 5.1 MMCF/DProducing Daily Average (raw gas) = 5.9 MMCF/D

CONDENSATE(BBLS/D,B

BLS/MMCF)



Wapiti Montney Single Well Economics

0

2

4

6

8

10

12

14

16

2 4 6

$

M

IL

L

I

O

N

S

Gas E.U.R. (Bcf)

$4/GJ $5/GJ $6.50/GJ

54% ROR

38% ROR

86% ROR

Key Assumptions

WTI Price = $75/bbl

$7.5 million/well program cost

Deep Cut Liquid Yields

IP/Reserves = 1/1000

NPV @ 10%


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Pembina / Ferrier Cardium

Land Holdings Gross Sections WI Pembina 108 64% Ferrier 94 58% Total 202 61%

Prospective (Pembina) 68 51% Prospective (Ferrier) 13 80%

NuVista Activity Gross Wells WI2010 Planned Wells Horizontal Up to 10 77%

Potential for 4-6 HZ wells per section

LEGEND

NVA Lands

NVA Cardium Lands

NVA Cardium Unit Lands

NVA 2010 Horizontal Well

NVA 2011 Horizontal Well

15-16 45%WI

On production

1-14 30%WI

IP - 130 Boe/d

16-28 100%WI

IP 183 Boe/d

Conventional Cardium

Development


16-3 100%WI

Completion

9-22 33%WI

Waiting on tie-in

1-31 100%WI

On production

1-7 30%WI

Waiting on tie-in


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Wapiti Cardium

Land Holdings Gross Sec. WI Prospective Acreage 145 65%

NuVista Activity Gross Wells WI2010 Horizontal Wells NuVista 2 100% Partner 2 21%

LEGEND

NVA Cardium Lands

Cardium Producing Wells

2010 NVA WI% HZ Wells

Cardium HZ Licenses

2010 Industry HZ Locations

Wapiti Cardium Pool

NVA 2011 Cardium HZ Locations

NVA Follow-up Cardium Locations


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PEMBINA

11-36-50-13W5 6-32-47-5W5

WAPITI

8-9-66-8W6 3/6-19-66-7W6

Log based pay characteristics in Wapiti are similar to, or better than those in Pembina.

Pembina Wapiti Cardium Comparison

Offset to 1-31-50-12W5 HZ Offset to 2/16-28-47-5W5 HZ Offset to 1-9-66-8W6 HZ Offset to 8-19-66-7W6 HZ


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Cardium Single Well Economics

0

0.5

1

1.5

2

2.5

3

3.5

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4.5

5

75 150 225

$

M

IL

L

I

O

N

S

Oil E.U.R. (Mbbls)

Single Well Capital Program Drilling Capital

38% ROR

70% ROR

NPV @ 10%

Key AssumptionsWTI Price = $75/bblIP/Reserves = 1/1000


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Land Holdings Gross Sections WISections 185 86%

NuVista Activity Gross Wells WI2010 Wells 7 63% Vertical 6 57% Horizontal 1 100%

ERCB Changes Development Entity#2 covers most of

NVA Wapiti lands; allows for 4

wells/section and comingling of allzones

LEGEND

NVA Nikanassin Rights

2010 Vertical Wells

2010 Horizontal Wells

Future Locations

Wapiti Nikanassin


Nikanassin Deep Basin Edge

Nikanassin Key Exploration Fairway


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Wapiti Nikanassin Single Well Economics

0

2

4

6

8

10

12

14

16

2 4 6

$

M

IL

L

I

O

N

S

Gas E.U.R. (Bcf)

$4/GJ $5/GJ $6.50/GJ

28% ROR

49% ROR

91% ROR

NPV @ 10%

Key Assumptions

WTI Price = $75/bbl


Deep Cut Liquid Yields



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Pembina / Ferrier Upper Mannville(Notikewin/Spirit River)

Land Holdings Gross Sections WI

Sections 271 68%

NuVista Activity Gross Wells WI2009 Wells Vertical 3 39%

2010 Planned Wells Horizontal Up to 3 67%

Multiple stacked channel sands

Potential for 2 HZ wells per section

Legend

NuVista Upper Mannville Rights

NuVista Other Rights

NuVista Future Drilling

Competitor HZ with First Mo. Flow Rate

Competitor New HZ or License



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Pembina/Notikewin Single Well Economics

0

1

2

3

4

5

6

7

8

9

10

1 2 3 4

$

M

I

L

L

I

O

N

S

Gas E.U.R. (Bcf)

$4/GJ $5/GJ $6.50/GJ

31% ROR

54% ROR

108% ROR

NPV @ 10%

Key Assumptions

WTI Price = $75/bbl


Shallow Cut Liquid Yields



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Business Plan

2009

Actual

2008

Actual

2010

Guidance

Capital expenditures ($ millions)

Wells drilled (total (HZ))

Production (boe/d)

Funds from operations ($ millions)

$/share, basic

Operating costs ($/boe)

Price assumptions:

Natural gas (US$/mmbtu - NYMEX)

Natural gas (Cdn$/mcf - AECO)

Oil and liquids (US$ - WTI)

F/X US$/CDN$

225

70 (40)

28,300

170

1.90

8.75

4.40

4.00

79.00

0.97

310

60 (10)

26,958

190

2.29

8.49

3.99

4.04

61.80

0.88

796

115 (6)

24,320

281

3.77

8.37

8.99

8.11

99.65

0.94



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Commodity Price Risk Management


Natural Gas Volume(GJ's/d) AverageFloor AverageCeiling AveragePremium Differential Start End

Put Option - AECO (C$/GJ) 20,000 $5.97 $0.53 07/01/10 10/31/10

Fixed Price - AECO (C$/GJ) 5,000 $4.21 $4.21 07/01/10 10/31/10

Nymex Differential - US$/Mmbtu 20,000 ($0.34) 07/01/10 10/31/10

Nymex Differential US$/Mmbtu 25,000 ($0.34) 11/01/10 03/31/11



Crude OilVolume(bbls/d)

AverageFloor

AverageCeiling

AveragePremium Start End

Put Option - WTI (C$/bbl) 4,000 $87.60 $9.22 10/01/10 12/31/10




Put Option WTI (C$/bbl) 3,000 $88.03 $9.29 10/01/11 12/31/11

Put Option WTI (C$/bbl) 2,000 $88.55 $9.43 01/01/11 03/01/12


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NuVista Share Price

Th H N B A B tt Ti


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There Has Never Been A Better TimeTo Own NuVista

Talented, empowered and accountable work force

Well respected management and leadership

Seven year track record of adding per share value

Concentrated conventional assets with stableproduction and unbooked prospect inventory

Emerging scalable high resource-in-place

development prospects


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Forward-Looking Statement

This presentation contains forward-looking statements and forward-looking information within the meaning of applicable

securities laws. The use of any of the words will, expects, believe, plans, potential and similar expressions areintended to identify forward-looking statements or information. More particularly and without limitation, this presentationcontains forward-looking statements and information concerning: NuVistas planned exploration and developmentprogram, NuVistas drilling, testing and completion plans, the timing thereof and the results therefrom, anticipated drillingand development locations and type of wells, target reserves per successful well, estimated drilling and completioncosts, estimated liquid yield, expected future development capital, 2010 capital expenditure program and allocationthereof; estimated 2010 exit production and product mix, estimated number of shares outstanding at the end of 2010,funds from operations and operating costs and NuVistas ongoing strategy and growth plans. In addition, statements

relating to reserves or resources are deemed to be forward-looking statements, as they involve the impliedassessment, based on certain estimates and assumptions, that the resources and reserves described can be profitablyproduced in the future.

The forward-looking statements and information in this presentation are based on certain key expectations andassumptions made by NuVista, including prevailing commodity prices and exchange rates; applicable royalty rates andtax laws; future well production rates; reserve and resource volumes; the performance of existing wells; the successobtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; theavailability and cost of labour and services; debt service requirements and operating costs and the receipt, in a timely

manner, of regulatory and other required approvals. Although NuVista believes that the expectations and assumptionson which such forward-looking statements and information are based are reasonable, undue reliance should not beplaced on the forward-looking statements and information because NuVista can give no assurance that they will prove tobe correct. There is no certainty that NuVista will achieve commercially viable production from its undeveloped landsand prospects. In addition, this presentation contains test results for various NuVista wells. Actual production fromthese wells could differ materially from these test results.



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cardium nuvista november 2010 presentation

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