G L O B A L C A P I TA L M A R K E T S • G L O B A L C O R P O R AT E C R E D I T P R O D U C T S • G L O B A L I N V E S T M E N T B A N K I N G
Virtual Data Room open week of: March 4, 2013 Technical Presentations begin week of: March 11, 2013 Proposals due: April 18, 2013
CIBC CONTACTS Mark Horsfall Managing Director, Head of Global Energy 403-260-0501
[email protected] Chris Rutherford Executive Director 403-260-0507
[email protected] Bryan Berg Director 403-216-6621
[email protected] Denise Poley Head Acquisitions & Divestitures 403-260-0502
[email protected]
SASKATCHEWAN OIL OPPORTUNITIES
TABLE OF CONTENTS Cenovus Advisory..................................................................page 2 Executive Summary Highlights.................................................................................page 3 Properties Production and Land Summary.................................page 3 Shaunavon Overview Shaunavon Highlights...............................................................page 4 Shaunavon Production and Land Summary...............................page 4 Shaunavon Property Overview...................................................page 5 Estevan Bakken Overview Estevan Bakken Highlights........................................................page 8 Estevan Bakken Production and Land Summary.........................page 8 Estevan Bakken Property Overview............................................page 9 Sale Procedure......................................................................page 12 Abbreviations.......................................................................page 13
CENOVUS ADVISORY The sole purpose of this document is to provide to prospective purchasers an introduction to the Company’s oil producing assets in the Shaunavon and Estevan Bakken areas of Saskatchewan (the “Assets”). Forward-looking Information. This document contains forward-looking information and other internal data prepared by Cenovus for the sole purpose of facilitating an evaluation of the Assets in furtherance of submitting a proposal. The forwardlooking statements may be identified by words such as “expect”, “potential”, “scheduled”, “promising”, “believes” or similar expressions suggesting future outcomes including statements about expected production, planned phases, drilling expectations, potential for increased recovery, location of production, success of waterflood techniques and tertiary recovery, and transportation and sale of production associated with the Assets. The forward-looking statements involve assumptions, risks and uncertainties that are not discussed in this document. As a result, this document is not to be relied upon for the purpose of purchasing the Assets or making an investment in Cenovus. Readers are cautioned not to place undue reliance on forward-looking information as the actual results or estimates associated with the Assets could differ materially from the information disclosed herein. The forward-looking information contained in this document, including the underlying assumptions, risks and uncertainties, are made as of the date of this document. Developing forward-looking information involves reliance on assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. These factors and assumptions are described in our most recent Annual Information Form (AIF) and our most recent Management’s Discussion and Analysis, all of which are available on our website at www.cenovus.com.
Barrels of Oil Equivalent. Certain natural gas volumes have been converted to barrels of oil equivalent (boe) on the basis of one barrel (bbl) to six thousand cubic feet (Mcf). Boe may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the well head.
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Cenovus Energy Inc. (“Cenovus” or the “Company”) has engaged CIBC Griffis & Small (“CIBC”) to assist with the sale of its oil producing assets in the Shaunavon and Estevan Bakken areas of Saskatchewan (the “Assets”). Cenovus will consider all proposals for either of the individual properties or the total package. However, the Company reserves the right to evaluate offers according to select criteria, at its sole discretion.
B.C. 94-O
SASKATCHEWAN T120
94-J
94-I
94-G
Opportunity Highlights u Large ‘resource play’ oil assets in the Lower Shaunavon and Bakken u High working interest (WI) and operated production (Avg. WI 97%) u Large land base u Current production of 5,766 boe/d (98% oil) u Upper Shaunavon play extension upside u Significant horizontal infill drilling opportunities u Secondary and tertiary development potential u Additional prospective zones include the Midale and Torquay
ALBERTA
94-P
T110
94-H
T100
94-B
93-O
93-J
T90
Ft. McMurray
T80
93-P
Grande Prairie
T70
93-I
T60
Edmonton
T50
Lloydminster
T40
T30
Calgary
Current Net Production Summary*
T10
W2M
R10
R20
Estevan Bakken W3M
R10
R20
W4M
R10
R20
W5M
R10
R20
Shaunavon W6M
Oil Gas Boe Oil (bbl/d) (Mcf/d) (boe/d) (%) 5,017 - 5,017 100 644 632 749 86 5,661 632 5,766 98
R10
Area Shaunavon Estevan Bakken Total
T20
Regina
* Monthly average January 2013 - Lease Operating Statements
Land Summary Developed (Hectares) Gross Net Shaunavon 8,299 8,169 Estevan Bakken 1,618 1,507 Total 9,917 9,676
Undeveloped Total Land Gross Net Gross Net Avg. WI 5,872 5,745 14,171 13,914 98% 3,970 3,726 5,588 5,233 94% 9,842 9,471 19,759 19,147 97%
CIBC Griffis & Small - 3
SHAUNAVON OVERVIEW
SHAUNAVON OVERVIEW
Opportunity Highlights u High quality, large Original Oil In Place (OOIP) resource play asset with production and reserves upside - Large, focused land base consisting of 14,171 gross hectares - 5,017 bbl/d net (~23° API) from 138 producing Hz wells - Current production exclusively from the Lower Shaunavon - 100% operated with high WI (averaging ~98%) - Low-risk, predictable production and reserve base u New exploration area in Upper Shaunavon - Significant uphole horizontal development opportunity u Significant growth opportunities and upside through optimization, infill drilling, waterflood development - Early stage development with