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					CORPORATE PRESENTATION
        NOVEMBER, 2011
Reader's Advisory
Forward-looking Statements:                                                                                                             References to "contingent resources" or "resources" in this presentation do not constitute, and should be distinguished
All statements other than statements of historical fact may be forward-looking statements. These statements relate to                   from, references to "reserves". "Reserves" are those remaining quantities of oil and gas anticipated to be economically
future events or Southern Pacific Resource Corp.’s (the “Company”) future performance. Forward-looking statements                       recoverable from these known accumulations from a given date forward. "Resources" are oil and gas volumes that are
are often, but not always, identified by the use of words such as                                                                       estimated to have originally existed in the earth's crust as natural accumulations but are not capable of being classified
"seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "inten   as "reserves", and "contingent resources" are a sub-category of resources that means those quantities of oil and gas
d", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown                           estimated to be potentially recoverable from known accumulations but which cannot be classified as "reserves" for a
risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in           variety of reasons, including that they may not be currently economic. There is no certainty that any portion of the
such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking                      resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any
statements are reasonable but no assurance can be given that these expectations will prove to be correct and such                       portion of the resources.
forward-looking statements included in this presentation should not be unduly relied upon by investors. These
                                                                                                                                         “Contingent Resources” means those quantities of petroleum estimated, as of a given date, to be potentially
statements speak only as of the date of this presentation and are expressly qualified, in their entirety, by this cautionary
                                                                                                                                        recoverable from known accumulations using established technology or technology under development, but which are
statement.                                                                                                                              not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include
In particular, this presentation contains forward-looking statements, pertaining to the following:                                      factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also
                –        supply and demand for oil and natural gas;                                                                     appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project
                –        the quantity of reserves;                                                                                      in the early evaluation stage.
                –        the quantity and economic viability of resources;
                –        the value of reserves;                                                                                         “Low (P90)” means a conservative estimate of the quantity that will actually be recovered. It is likely that the actual
                                                                                                                                        remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a
                –        the flow rates of wells;
                                                                                                                                        90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
                –        capital expenditure programs;
                –        development of reserves;                                                                                        “Best (P50)” means the best estimate of the quantity that will actually be recovered. It is equally likely that the actual
                –        potential acquisitions; and                                                                                    remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there
                –        expectations regarding the Corporation's ability to raise capital.                                             should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best
With respect to forward-looking statements contained in this presentation, the Corporation has made assumptions                         estimate.
regarding, among other things:                                                                                                           “High (P10)” means an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual
                –        the legislative and regulatory environment;                                                                    remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least
                –        information regarding reserve and resource potential;                                                          a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
                –        the Corporation's ability to obtain additional financing on satisfactory terms;
                                                                                                                                         “Probable reserves” means those additional reserves that are less certain to be recovered than proved reserves. It is
                –        ability to develop reserves and resources and costs regarding such development;                                equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved
                –        availability and costs of infrastructure;                                                                      plus Probable reserves.
The Corporation's actual results could differ materially from those anticipated in these forward-looking statements as a
result of the risk factors set forth below and elsewhere in this presentation:                                                          “Possible reserves” means those additional reserves that are less certain to be recovered than probable reserves. It is
                                                                                                                                        unlikely that the actual remaining quantities recovered will exceed the sum of the estimated Proved plus Probable plus
                –        volatility in the market prices for oil and natural gas;
                                                                                                                                        Possible reserves.
                –        uncertainties associated with estimating reserves and resources;
                –        geological, technical, drilling and processing problems;                                                       “Proved reserves” means those reserves that can be estimated with a high degree of certainty to be recoverable. It is
                –        liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas          likely that the actual remaining quantities recovered will exceed the estimated Proved reserves.
                         operations;                                                                                                    Future net revenues associated with reserves and resources do not necessarily represent fair market value.
                –        incorrect assessments of the value of acquisitions;
                                                                                                                                        The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as
                –        incorrect estimates of costs;
                                                                                                                                        estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
                –        competition for, among other things, capital, acquisitions of reserves, undeveloped lands and
                         skilled personnel; and                                                                                         Barrel of Oil Equivalent:
                –        weather conditions.                                                                                            Where amounts are expressed on a barrel of oil equivalent (“boe”) basis, natural gas volumes have been converted to
The forward-looking statements or information contained in this presentation are made as of the date hereof and the                     boe at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent. This conversion ratio is based upon an
Corporation undertakes no obligation to update or revise any forward-looking statements, whether as a result of new                     energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at
information, future events or otherwise, unless required by applicable securities laws. Certain of the forward-looking                  the wellhead. Boe figures may be misleading, particularly if used in isolation.
statements regarding the Corporation’s financial outlook, anticipated revenue, future expenditures and cash flow
forecasts may constitute future-orientated financial information (“FOFI”). Management of the Corporation approved the
inclusion of the FOFI in the presentation based on the assumptions listed above on May 1, 2009 . The FOFI included in
this presentation has been provided only for the periods listed and for the sole purpose of providing an estimated
guideline for the Corporation’s possible future financial position and the FOFI may not be appropriate for other purposes.




Reserves Definitions




                                                                                                                                                                                                                                                             2
The Southern Pacific Strategy

 FOCUSED: We develop and produce bitumen and heavy oil using
  horizontal wells and steam.

 INDEPENDENT: We control and operate 90% of our
  lands, allowing us to develop at a pace that fits our objectives.

 DEMONSTRATED EXECUTION: Solid operations & construction
  expertise, plus proven financing capacity.

 FOCUS ON CAPITAL EFFICIENCY: Scalable projects can be
  managed cost effectively, avoid unproven technologies, improve
  existing technologies by reducing cost or increasing throughput




                                                                      3
 STP Overview
                           Trading symbol                                                                                                                TSX:STP
                           Shares outstanding - basic                                                                                                  340 million
                           Shares outstanding - fully diluted                                                                                          364 million
                           Average daily trading volume (last 6 mo avg.)                                                                                1.2 million
                           Market Capitalization (Oct. 31, 2011)                                                                                     $498 million
                           Working Capital Estimate (Sept. 30 2011)                                                                                   $185million
                           Total Corporate Debt (Sept. 30, 2011)                                                                                     $401 million
                           Insider Ownership - fully diluted                                                                                                    5%
                           Number of Employees                                                                                                  80 (office & field)
                 Contingent Resources (MMbbl)
                                                                                                                                 Corporate Reserves (MMbbl)
1,400.0                                                                                                                                2P = 181.0 & 3P = 208.6 mmbbl
1,200.0
                                                                                                                                                                          60.2
1,000.0

 800.0
                                                                                         1,314.9
                                                                                                                                                                                       27.6
 600.0
                                                                                                                                   120.8
 400.0                                                     665.5

 200.0                   244.0

    0.0                                                                                                                                Proved              Probable                Possible
            Low Estimate (P90)                Best Estimate (P50)              High Estimate (P10)

     Refer to slide 2 for definitions of reserves and contingent resources categories.
     Estimates prepared by GLJ Petroleum Consultants effective June 30, 2011, except for the Red Earth contingent resource estimate , which was completed by Sproule and Associates.          4
Strategic Land Position
• Alberta: 436 sections (242,176 net acres) of oil sands leases with
  87% average working interest
• Saskatchewan: 12 month average of ~4,300 barrels per day (bbl/d)
  of 100% working interest heavy oil




                                                                       5
STP-Senlac Thermal Project


            (drilling)




                         •   4,000 - 5,000 bbl/d for the next 10 -15 years
                         •   Best in class SOR of 2.0 – 2.2
                         •   Experienced operations personnel
                         •   ~ $65 million/year net operating income
                         •   ~ $20 million/year of capital for next two years



                                                                                                               6
                                         Refer to slide 2 for cautionary statements about forward-looking information.
                                            STP-Senlac: Historical Production
                                            7,000
                                                                                                                                                                           STP Operates Senlac
Quarterly Average Production Rate (bbl/d)




                                            6,000


                                            5,000
                                                            Optimal plant
                                                            throughput range
                                            4,000


                                            3,000


                                            2,000


                                            1,000


                                                 0
                                                     1996     1997    1998     1999   2000   2001   2002       2003   2004   2005   2006       2007   2008   2009   2010      2011   2012       2013
                                            PHASE                 A                   B                    C                 D             E             F          G            H          J       K - AA


                                             •        STP plan is to accelerate drilling frequency, and keep the plant filled
                                                      between 4,000 – 5,000 bbl/d on average
                                             •        Allows more consistent operation and reduces peak individual well rate
                                                      demands which may enhance recovery

                                                                                                                                                                                                7
             Commodity Hedging
                       $120.00                                                                                                                                                                                                                                        2,600
                       $115.00                                                                                                                                                                                                                                        2,300




                                                                                                                                                                                                                                                                              Hedge Volume (bbl/d)
                       $110.00                                                                                                                                                                                                                                        2,000
                       $105.00
                                                                                                                                                                                                                                                                      1,700
        ($US/bbl)




                       $100.00
                                                                                                                                                                                                                                                                      1,400
                           $95.00
                                                                                                                                                                                                                                                                      1,100
                           $90.00
                                                                                                                                                                                                                                                                      800
WTI                        $85.00
                           $80.00                                                                                                                                                                                                                                     500
                           $75.00                                                                                                                                                                                                                                     200
                           $70.00                                                                                                                                                                                                                                     -100
                                                                        May-11




                                                                                                                                  Nov-11




                                                                                                                                                                                              May-12




                                                                                                                                                                                                                                                    Nov-12
                                                      Mar-11




                                                                                                                                                                            Mar-12
                                                                                 Jun-11

                                                                                          Jul-11




                                                                                                                       Oct-11




                                                                                                                                           Dec-11




                                                                                                                                                                                                       Jun-12

                                                                                                                                                                                                                Jul-12




                                                                                                                                                                                                                                           Oct-12




                                                                                                                                                                                                                                                             Dec-12
                                    Jan-11

                                             Feb-11




                                                               Apr-11




                                                                                                              Sep-11




                                                                                                                                                    Jan-12

                                                                                                                                                                 Feb-12




                                                                                                                                                                                     Apr-12




                                                                                                                                                                                                                                  Sep-12
                                                                                                     Aug-11




                                                                                                                                                                                                                         Aug-12
                                                                                                   Series1                 Settled Price                         Volume Hedged to Date

                            $5.00                                                                                                                                                                                                                                     5,000

                            $4.50                                                                                                                                                                                                                                     4,500

                            $4.00                                                                                                                                                                                                                                     4,000




                                                                                                                                                                                                                                                                              Hedge Volume (GJ/d)
                            $3.50                                                                                                                                                                                                                                     3,500
               ($Cdn/GJ)




                            $3.00                                                                                                                                                                                                                                     3,000
Natural Gas




                            $2.50
                                                                                                                                                             •            Conservative hedging strategy to                                                            2,500

                            $2.00                                                                                                                                                                                                                                     2,000
Purchase




                                                                                                                                                                          protect existing cash flow which is
                            $1.50                                                                                                                                                                                                                                     1,500
                                                                                                                                                                          then used for growth projects
                            $1.00                                                                                                                                                                                                                                     1,000

                            $0.50                                                                                                                                                                                                                                     500

                            $0.00                                                                                                                                                                                                                                     0
                                                                        May-11




                                                                                                                                  Nov-11




                                                                                                                                                                                              May-12




                                                                                                                                                                                                                                                    Nov-12
                                                      Mar-11




                                                                                                                                                                            Mar-12
                                                                                 Jun-11

                                                                                          Jul-11




                                                                                                                       Oct-11




                                                                                                                                                                                                       Jun-12

                                                                                                                                                                                                                Jul-12




                                                                                                                                                                                                                                           Oct-12
                                    Jan-11

                                             Feb-11




                                                               Apr-11




                                                                                                              Sep-11




                                                                                                                                           Dec-11

                                                                                                                                                    Jan-12

                                                                                                                                                                 Feb-12




                                                                                                                                                                                     Apr-12




                                                                                                                                                                                                                                  Sep-12




                                                                                                                                                                                                                                                             Dec-12
                                                                                                     Aug-11




                                                                                                                                                                                                                         Aug-12
                                                                                           Price ($/GJ)                         Settled Price                             Volume Hedged to Date


                                                                                                                                                                                                                                                                          8
            Netback Comparison: Senlac and McKay
      $100.00
                        Forecast2013 Netbacks at ~ 90% Design Capacity               Actual Netbacks from Senlac
           $90.00

                            $15.00                                   $15.00                      $15.96
           $80.00

                                                                      $3.10
                                                                                                  $2.79
           $70.00           $11.08                                    $6.50
                                                                                                 $10.38
                                                                      $6.22                                              WCS Differential ($CDN/bbl)
           $60.00           $8.77
                                                                      $5.23                       $4.71                  Transportation
($C/bbl)




                                                                                                  $5.19                  Diluent Cost & Quality Adj.
           $50.00           $10.84                                   $10.86
                                                                                                                         Opex - Non-fuel
                                                                                                  $9.87
           $40.00           $6.16                                                                                        Opex - Fuel & Power
                            $3.29                                                                                        Royalties
           $30.00                                                                                                        Operating Netback

                                                                     $43.09
           $20.00                                                                                $40.29
                            $34.86

           $10.00


            $0.00
                           McKay                                     Senlac         Senlac 12 mo. Actual (Fiscal 2011)
                      Assumptions: WTI = $US 90/bbl; FX = $US 1.00/$C;
                                management estimates of future
                    costs, differentials, tariffs, royalties and transportation .

                                                                                                                                            9
     STP-McKay Thermal Project

•   45 km NW Ft. McMurray
•   10.5 section project area
•   100% STP working interest
•   Regulatory approvals in place
•   Phase 1 construction fully
    underway
•   Phase 1 Design:                                      Suncor MacKay
                                             STP Lands
      • 12,000 bbl/d oil                                  SAGD Project
                                                            (Analog)
      • 33,600 bbl/d steam




                            STP-McKay
                          Thermal Project




                                            STP Lands


                                                                         10
STP-McKay Phase 1: Project Overview



                         Future Phase 1 Well
                                pads


 12 SAGD well pairs:
  successfully drilled
 through high quality
      reservoir
                                                                         Phase 2- Future
                                                                        Central Plant Facility
                                                                              location




                                                 29 km all season
                                               access road & 14 km
                         Phase 1 - Central
                                               natural gas pipeline -
                           Plant Facility
                                                     complete




                                                                                                 11
       STP-McKay Phase 1: Construction Update
                          Central Process Facility




    Steam Generators – on site and being assembled
•      Over 4,100 of 5,300 piles have been set
                                                                                     Cogen – major components placed, assembly underway
•      Electrical work has commenced
•      Largest pieces are now on site




    Tank Farm: 6 of 7 tanks erected, facility and piperack modules arriving on site and being placed on piles
                                                                                                                                  12
     STP-McKay Phase 1: Construction Update
                        Well Pads
                                                                         Service rig completing slant SAGD wells

•   12 SAGD well pairs + 1 HZ CSS well successfully
    drilled, completions underway
•   Piling at pads nearly complete
•   Surface facilities on 1st pad will commence
    construction in November




                                                                                          SAGD Wellheads ready from installation




                             Surface steam and effluent pipelines from CPF to well
                             pads under construction

                                                                                                                           13
     STP-McKay Phase 1: Construction Update
                        Camps and Infrastructure
                                                                        Service rig completing slant SAGD wells
                                                                       300 person operations camp – to be removed after start -up
•   29 km all season access road complete
•   14 km 8” natural gas fuel pipeline
    complete
•   Over 57% of permanent operations
    staff positions filled, including 90% of
    management/senior personnel
•   Water source wells drilled, equipped
    and pipeline connected to plant



                                                                                         SAGD Wellheads ready from installation
                              84 person operations camp - complete by December


                                                                                          McKay River single span bridge




                                                                                                                           14
STP-McKay Phase 1: SAGD Well Completions:
                   Leading Edge in Wellbore Design
  •   Wellbores have been completed to allow optimal flexibility for steam distribution
      and production gathering points along wellbores
  •   Distributed temperature and pressure monitoring along wellbores
  •   Will provide operational flexibility to ensure wellbore conformance




                                                   3 steam distribution points




                                                           800 – 1100 m length
         Gas Lift: coiled
         tubing strings



                                                    3 production entry points

                                                                                     15
 STP McKay Phase 1: Spending Update
• Capital forecast reduced $10
  million to $440 million
• This includes ~ $15 million of                          Spend breakdown as of Sept. 30th, 2011

  unbudgeted scope changes
                                                                                              Incurred -
  including                               Committed -                                     Reimbursable, $103
                                          Fixed, $216.9                                           .0
    – Additional 40,000 bbl dilbit
      storage tank
    – Increased water recycle on                                                                             Uncommitted -
                                                                                                              Fixed , $10.9
      evaporators
    – Expanded truck loading facilities
• 72% of costs are now                                                                                      Remaining -
  considered firm                                                                                        Reimbursable, $79.
                                                                                                                 2

• $30 million contingency within
                                                                                  Contingency, $30.0
  this forecast




                                               Fixed costs represent items bid out or flat rate                      16
                                               Reimbursable costs represent hourly or rate based variable costs
 STP-McKay Phase 1: Timeline to Production

 Road Construction

       ERCB Project
         Approval

    Plant & Pad Site


       SAGD Drilling


Facility Construction

            Mechanical
            Completion

     Commissioning


  Steam Circulation
                                                                                                       Current
                 First Oil

                                          Q3                 Q4                 Q1   Q2          Q3   Q4         Q1   Q2          Q3   Q4
                                                  2010                                    2011                             2012




     Refer to slide 2 for cautionary statements about forward-looking information.                                                          17
            Senlac and McKay Phase 1: Production Profile

  18,000

  16,000

  14,000

  12,000

  10,000
bbl/d




        8,000

        6,000

        4,000

        2,000

           0
            2011               2013                 2015          2017        2019              2021   2023       2025      2027   2029   2031
                                                             Bitumen Project #4                               Bitumen Project #3




                Refer to slide 2 for cautionary statements about forward-looking information.
                                                                                                                                            18
               Corporate Cash Flow - Base Case Model
               (STP-Senlac and STP-McKay Phase 1 Only)
            $500                                                                                                                                                              5


            $400

            $300                                                                                                                                                              3


            $200

            $100                                                                                                                                                              1




                                                                                                                                                                                   Debt/EBITDA
$ million




             $0
                   2011                                             2016                                 2021                        2026                             2031
      -$100                                                                                                                                                                   -1


      -$200

      -$300                                                                                                                                                                   -3
                                                           Simple model assumes cash sweep to pay down debt is first priority
      -$400

      -$500                                                                                                                                                                   -5

                                               CAPITAL                     EBITDA                  TOTAL CORPORATE DEBT            REVENUE              Debt/EBITDA Ratio


                                                                                                                Assumptions:
                                                                                                                WTI = $US 90/bbl flat
                                                                                                                FX - 0.9500 $US/$CDN
                                                                                                                Heavy Differential = $US 13.50/bbl, NYMEX = $US 6.43mcf

                   Refer to slide 2 for cautionary statements about forward-looking information.                                                                             19
                 STP-McKay Phase 1: Solid Reserve Value
               14,000                                                                                                            4.2



               12,000                                                                                                            3.6                   •   Even conservative
                                                                                                                                                           GLJ 1P forecast with
               10,000                                                                                                            3.0                       SOR average of 3.2
                                                                                                                                                           delivers strong cash
                                                                                                                                                           flow and value




                                                                                                                                       SOR (bbl/bbl)
Rate (bbl/d)




                8,000                                                                                                            2.4
                                                                                                                                                       •   All of the current
                6,000                  By definition: 1P forecast must have a high                                               1.8                       reserves forecasts
                                        degree of certainty on being recovered.                                                                            are capped by
                4,000                                                                                                            1.2
                                                                                                                                                           current design
                                                                                                                                                           capacity of 12,000
                                                                                                                                                           bbl/d
                2,000                                                                                                            0.6



                    0                                                                                                            0.0
                        2011     2016        2021       2026       2031     2036         2041    2046     2051     2056   2061

                                        3P           2P            1P           1P SOR           2P SOR          3P SOR
                                                                                    1P           2P        3P
                                             20 yr. avg. Bitumen Rate (bbl/d)      8,700        10,400    11,000
                                             20 yr. avg. SOR (bbl/bbl)              3.1           2.8       2.6
                                             Reserves (MMbbl)                       112           168       185
                                             bt NPV10% ($ million)                 $503          $834      $980


                Forecasts as per GLJ & Associates effective June 30, 2011                                                                                               20
STP-McKay Phase 2: High Quality Resource
                   Base
•   Total of 43 coreholes (31 drilled this past winter) on Phase 2 project area
•   High quality bitumen pay encountered on all wells:
     • No lean zones
     • No shale barriers
     • Continuous and exploitable McMurray and Wabiskaw oil sands deposits




                                     17-22 m exploitable
                                             pay
                                      thickness, average
                                           of 19 m




                                                                             21
     STP-McKay: Phases 1 and 2 Layout (circa 2014)

                                                                                       Well pads




                           Phase 1




                                                                                                   Phase 2
      Continuous pay fairway



•   STP-McKay Phase 2 is being designed to add
    24,000 bbl/d of bitumen processing
    capacity, bringing the total to 36,000 bbl/d
       Refer to slide 2 for cautionary statements about forward-looking information.
                                                                                                        22
STP-McKay Phase 2: Construction Strategy
                                               • Southern Pacific plans
                                                 to stagger the
                                                 construction of Phase 2
                                                 in two integrated 12,000
                                                 bbl/d pieces
                                               • Provides maximum
   Phase 2B                                      flexibility both
Highlighted in red
                                                 operationally and
                                                 financially
                                               • Expect Phase 2
                                                 application to be
                                                 submitted by mid-
                                                 November 2011
                           Phase 2A
                     +Pre-build for Phase 2B




                                                                     23
 STP-McKay Phase 2: Post Application Value
                    Change
  •              Upon successful application submission for Phase 2 expansion, management
                 expects a significant revision to the 2P reserve category
  •              2P reserves production profile will be accelerated and is estimated to increase
                 before tax NPV10% by more than $450 million including expansion capital
  •              STP believes 20-25 years is the optimal project life to maximize value of the
                 facility capital investment

                                 STP-McKay - Existing 10.5 section Project Area Only
               40,000
                                                                                                                                                  Phase 1 & 2
               35,000                                                                                                                            design capacity
                                                                                                                           2P forecast will be
                                                                                                                           capped at 36,000
               30,000                                                                                                          bbl/d upon
                                                                         Reserves accelerated and                            submission of
               25,000                                                      additional contingent                               expansion
Rate (bbl/d)




                                                                      resources can be reclassified to                         application
               20,000                                                             reserves

                                                               25 years                                         50 years
               15,000
                                                                                                                                                 Phase 1 design
               10,000                                                                                                                               capacity
                                                                                                                           2P forecast is
                                                                                                                        currently capped by
                5,000                                                                                                   approved design of
                                                                                                                           12,000 bbl/d
                   0
                        2011   2016   2021   2026    2031      2036       2041      2046      2051       2056    2061
                                             2P Post Expansion Appl'n       2P Current

                                                                                                                                                        24
    Wabiskaw Bitumen: Additional Resource at
                      McKay
•   Wabiskaw zone lies directly above McMurray over                                   Clearwater
    most of McKay Phase 1 and 2                                                         Shale
                                                                                      (Caprock)
•   Approximately 200 mmbbl of OBIP (management est.)
•   Recovery mechanism planned:
     •       Combination of cyclic steam stimulation (CSS)                              Wabiskaw
             and conductive heating from SAGD in McMurray                            Bitumen (CSS)
     •       Modeling has demonstrated up to 50% recovery
             (budgeting 25% until tested)
•   Benefits:                                                                          Wabiskaw
                                                                                        Shale
     •       Additional recovery
     •       Steam source available from SAGD operations
     •       Low incremental cost
•   Timing
                                                                                       McMurray
     •       CSS well drilled; will be an observation well until                       Bitumen
             further Wabiskaw technical work is completed                               (SAGD)
     •       Production could start 2-3 years after SAGD start up



     Refer to slide 2 for cautionary statements about forward-looking information.
                                                                                                     25
STP-McKay: Full Bitumen Exploitation Plan




                                          Conduction and cyclic steam




          SAGD injector   SAGD producer                          Infill horizontal well


                                                                                          26
            Southern Pacific’s Existing Project Growth Plan

            •       Forecast represents real projects that are on production, being constructed
                    or in the application process
            •       Timing of STP-McKay Phase 2 represents two stages of growth, designed
                    for optimal operating and financing flexibility
        40,000

        35,000

        30,000

        25,000
bbl/d




        20,000

        15,000

        10,000

         5,000

            0
             2011                 2013                 2015                 2017                 2019     2021          2023   2025      2027   2029   2031
                                              Bitumen Project #4                                   Bitumen Project #3          Heavy Oil #2


                 Refer to slide 2 for cautionary statements about forward-looking information.
                                                                                                                                                         27
             Corporate Cash Flow - Base Case Model
             (STP-Senlac and STP-McKay Phase 1 and 2)


    $1,000                                                                                                                                                                     5

            $800
            $600                                                                                                                                                               3

            $400




                                                                                                                                                                                    Debt/EBITDA
            $200                                                                                                                                                               1
$ million




              $0
            -$200 2011                                              2016                             2021                          2026                            2031        -1

            -$400
            -$600                                                                                                                                                              -3

            -$800                                                         Simple model assumes cash sweep to pay down debt is first priority
-$1,000                                                                                                                                                                        -5
                                              CAPITAL                    EBITDA                TOTAL CORPORATE DEBT             REVENUE             Debt/EBITDA Ratio



                                                                                                          Assumptions:
                                                                                                          • WTI = $US 90/bbl flat
                                                                                                          • FX - 0.9500 $US/$CDN
                                                                                                          • Heavy Differential = $US 13.50/bbl, NYMEX = $US 6.43mcf
                                                                                                          • Assumes Phase 2 constructed at $38,000 per design bbl/d
                                                                                                          • Assumes future phases funded with cash flow and debt, no
                                                                                                            additional equity issued

               Refer to slide 2 for cautionary statements about forward-looking information.
                                                                                                                                                                          28
STP-McKay: Future Upside
      STP-McKay
       Thermal
                                       Potential Phase 3
                                        Expansion area
                                                           •   100% working interest in
        Project
       boundary
                                         (environmental
                                        background work
                                                               59 sections
                                           underway)
                                                           •   Will have full-time
 Phase 1                                                       operations in this area in
                                                               2012
                                                           •   Other operators in area
                                                               currently in application
                  Phase 2
                                                               preparation or waiting for
                                                               project approval
                         Under-
                     explored, needs                       •   STP’s Phase 2
                      more work to
                       determine
                                                               expansion application
                        potential                              will add 6.5 sections to
                                                               existing project area to
                                                               prepare for a possible
                  South McKay
                   (contingent
                                                               Phase 3
                    resources
                     already
                    assigned)




                                                                                   29
    STP-Red Earth Thermal Project: Pilot Testing
                                   Underway



                                                                                                            Pilot Project




                                                                                                  6 miles

•   135 sections (100% WI)
                                                                   1,000 bbl/d thermal facility
•   Existing 1,000 bbl/d thermal project
•   105 MMbbl of P50 contingent
    resource
•   Pilot project started up in June 2011
•   3 wells currently being steamed and
    tested
•   Evaluate through summer and make
    recommendations in fall
      Refer to slide 2 for a definition of contingent resources.
                                                                                                                            30
STP’s Upside: Additional Oil Sands Leases
                                                                                               Hangingstone
                                                                                                29 coreholes
                                                                                                 2D seismic
                                                                                                66 Sections




    Anzac
 14 coreholes                                                           These exploration blocks
2D seismic, ERT                                                        represent significant upside
  75 Sections
                                                                       potential for future in-situ oil
                                                                             sands projects                        Ells
                                                                                                               15 coreholes
                                                                                                                2D seismic
                                             Leismer & Kirby                                                   50 Sections
                                               29 coreholes
                                             2D & 3D seismic
                                               51 Sections




 Refer to slide 2 for cautionary statements about forward-looking information.                                                31
Summary of STP’s Recent Financing Activities

• $ 270.5 million – equity financings
       –       $108.4 million in May 2010 (STP-McKay Phase 1)
       –       $ 52 million in October 2009 (STP-Senlac)
       –       Remaining in 4 offerings during 2006-2007 (Land and Exploration)

• $ 173 million – convertible debentures
       –       6% annual interest rate
       –       Convertible to common equity at $2.15/share
       –       5.5 year term

• $US 275 million – 2nd lien term loan facility
       –       10.5% annual interest rate (LIBOR + 8.5%, LIBOR floor @ 2.0%)
       –       5 year term
       –       Payout cost: 12%-year 1, 2%-year 2, 1%-year 3, par thereafter
       –       Ability to pay back $US 50 million with no penalty after McKay Phase 1 is commercial

• $ 30 million – 1st lien secured bank facility
  (revolver)
       –       Undrawn – to be used for general corporate purposes
       –       BA discount rate + 3.75% interest rate
       –       Expandable to $80 million after McKay Phase 1 is commercial


        Demonstrated financing ability
 Refer to slide 2 for cautionary statements about forward-looking information.                        32
    Net Asset Value: Solidifying as Proven Assets
                     Grow
                                                                                       Jan. 1 20111                                  June 30 20111
                                                                                      Unrisked NAV                                   Unrisked NAV

    Total Proved Reserves2                                                                $254                                           $726
    Probable Reserves2                                                                    $660                                           $383
    Best Estimate (P50) Contingent Resources2                                             $970                                          $1,768
    Stock Option Proceeds                                                                  $30                                           $30
    Working Capital                                                                       $453                                           $260
    Sub-total                                                                         $2,367 million                                $3,167 million

    Less: Long Term Debt3                                                                  -$275                                         -$261

    Total Net Asset Value                                                             $2,092 million                                $2,906 million

    Fully Diluted Shares Outstanding                                                       359                                           359
    Convertible Debentures4                                                                 80                                            80
    Total                                                                               439 million                                   439 million
    Estimated Pre-Tax NAV per Share                                                       $4.76                                          $6.62
•   Significant reclassification of reserves from Probable to Total Proved due to 2011
    winter drilling program and increased confidence in reservoir quality and overall project
    value.

       Notes:
       1. Represents then current estimates of all data including reserves, resources, working capital, long term debt, and share balance.
       2. All reports completed by GLJ Petroleum Consultants Ltd., values reflect the ‘then relevant’ bt NPV@10%.
       3. Long Term debt incorporating the McKay financing with the $275M US$ Term Loan converted to CDN $ at an f/x rate of $0.96.
       4. Assumes the convertible debenture would all be issued for shares given NAV is > strike price.


                                                                                                                                                     33
2011-2012: What’s next for STP?
• Execution of STP-McKay Thermal Project
   – Construction on time and on budget will be primary focus of 2011
   – 2012 will be focused on bringing production on line
• Preparation of STP-McKay Phase 2
   – Expect to submit an application in the fall of 2011
• Development Plan for STP-Red Earth
   – Currently testing using existing pilot facilities
   – Development plan for growth in late fall
• Maintain STP-Senlac at high levels of production
   – Phase J (3 SAGD well pairs) currently drilling
   – Examining de-bottlenecking options
• Continued exploration and acquisition opportunities
   – Developing plays on all STP land blocks
   – Continuing to seek accretive A&D opportunities




                                                                   34
Contact Information


                           Suite 1700, 205 - 5th Ave. SW
                               Calgary, AB T2P 2V7
                               Phone: 403-269-5243
                                Fax: 403-269-5273
                            Email: info@shpacific.com

                               www.shpacific.com

                                     TSX:STP
For more information:
Byron Lutes, President & CEO    Ron Clarke, COO            Howard Bolinger, CFO
blutes@shpacific.com            rclarke@shpacific.com      hbolinger@shpacific.com




                                                                              35

				
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