April 2015 - Canada Energy Partners Inc.

Corporate Presentation
April 2015
Forward Looking Statements
This presentation contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such forward
looking information can include without limitation statements based on current
expectations involving a number of risks and uncertainties and are not
guarantees of future performance of the Corporation. These risks and
uncertainties could cause actual results and the Corporation’s plans and
objectives to differ materially from those expressed in the forward-looking
information. Actual results and future events could differ materially from those
anticipated in such information. These and all subsequent written and oral
forward-looking statements are based on estimates and opinions of
management on the dates they are made and expressly qualified in their
entirety by this notice. The Corporation assumes no obligation to update
forward-looking information should circumstances or management’s estimates
or opinions change.
2
Company Overview
• 
CE was formed in 2006
• 
IPO Completed in November 2006; TSX-V:CE
• 
Aggregated 91 gross sections of oil and gas tenures in NEBC
• 
Consolidated 100% ownership of the CBM Project in 2012
• 
CBM Project has 497 BCF of total resource potential
• 
Sold the Company’s Montney holdings in July 2014
• 
Own water disposal rights to the deeper formations under 50,000 acres (78 sections)
• 
90.4 million shares (basic), 94.5 million shares fully diluted
• 
Management and Directors own 19.6% on a fully diluted basis
• 
No debt, positive working capital, and $2.1 million on deposit with Oil & Gas Commission
3
Investment Highlights
• 
The Company holds a large land base covering a large, confirmed gas-in-place coalbed methane
project.
• 
The Company has significant water disposal rights under 50,000 acres in a very active oil & gas
province that is short of water disposal capacity.
• 
The Company owns a gas plant, pipeline, gathering system, and water disposal well.
• 
The Company has internally developed a technology* that it believes has the potential to
dramatically improve the productive and economic metrics of the Peace River coalbed methane
project via cavity completions.
• 
The Company also believes this technology can be applied to the unconventional mining of
coal, diamonds, and potash and intends to pursue opportunities in these additional minerals.
* This technology has not been tested in the field. Patent pending.
4
Leadership:
Management
Management
Title
Experience
John Proust
Chairman
President, J. Proust & Associates Inc: 28 years advising public and private companies on debt and equity financing,
mergers and acquisitions and corporate restructuring.
Benjamin M. Jones
President & CEO
Founder of Peace River Project; 38 years in oil and gas exploration and production, including last 12 years focused on
unconventional gas in northeast British Columbia. BS Mechanical Engineering.
Danny Lee
Chief Financial Officer
A Chartered Accountant with more then 20 years of experience including financial reporting for Canadian and US listed
companies, strategic planning, tax planning, corporate governance, due diligence.
Eileen Au
Corporate Secretary
Extensive senior management experience in a variety of public companies in the areas of finance and compliance.
Directors
Directors
Title
Experience
John Proust
Chairman
President, J. Proust & Associates Inc.; 28 years advising public and private companies on debt and equity financing,
mergers and acquisitions and corporate restructuring; Director of New Zealand Energy Corp. and Director of Outrider
Energy Corp.
Benjamin M. Jones
Director, CEO, Pres.
Founder of Peace River Project; 35 years in oil and gas exploration and production, including last 15 years focused on
unconventional gas in northeast British Columbia. BS Mechanical Engineering.
Kyle Burnett
Director
Chairman, CEO/President of Burnett Petroleum Company, Magnolia Petroleum Company and Arcadia Operating, LLC. as
well as a board member for Arcadia Exploration and Production Company; 34 years in exploration and production of oil
and gas.
Jonathan Bahnuik
Director
Mr. Bahnuik has approximately 10 years’ experience in oil and gas law. Mr. Bahnuik has represented the Company since
2006 and has an intimate knowledge of the Company’s assets and history.
Win Purifoy
Director
Co-founder and co-manager of Cibolo Capital Partners. Cibolo founded Senderra RX Partners in 2010, a Texas-based
Specialty Pharmacy with current annual revenues of $350 million. Founder of Value Added Communications. Mr. Purifoy
has over 30 years of experience in sourcing, structuring and managing equity investments in energy, agriculture, medical,
technology, printing, real estate, financial services, and telecom. In addition, Mr. Purifoy was a co-founder of Canada
Energy Partners in 2006, served as a director from 2006-2009.
5
CE Land Base & Pipeline Access
Gross
Acres
58,613
Shallow:
Net
Acres
57,341
Proposed TCPL Pipeline
2 BCF/d Est. Op. Q2 2016
Pipeline
6
Peace River CBM Project Summary
• 
78 Gross Sections of CBM Rights;
• 
24 wells drilled to date on Project
• 
Gas Plant & Pipeline Constructed in 2008
• 
Water disposal capacity established
• 
8 wells put on production at end of 2008
• 
Netherland Sewell Resource Assessment ascribed 497 BCF net to CE of Proved, Probable, and
Possible Reserves and Contingent Resources
•  Field currently shut-in pending better gas prices and application of proprietary completion
technique
7
Regional Gething Structure Map
All CE lands strategically situated on a major positive structural feature
on the Peace River Arch. Gething coals were buried deep creating high
coal rank &high gas contents, then were uplifted into the depth range
conducive permeability development.
8
Peace River CBM Project Area
9
Net Coal Isopach
Net Coal Thickening Southwesterly
10
Total Gas & Water Production
Total Gas & Water Production, US units
Gas Volumes, Mcf
900
2000
Normalized Average
Production per well=
71 mcf/d & 168 bw/d
1800
800
1600
700
1400
600
1200
500
1000
400
800
300
600
200
400
100
200
0
Production
Normalized
52%/Yr Incline
Water Volume, bbls
1000
Field Shut in
April 16, 2010
Pump
Replacement/
Workover
0
Gross Gas Produced
Net Gas Sales
Total Produced Water
Linear (Gross Gas Produced)
11
Strategic Acquisition – Hudson’s Hope Gas Ltd. (“HHG”)
•  CE acquired all the outstanding shares of HHG in June 2012 for 2 million shares of
CE stock.
•  This acquisition was strategic for the following reasons:
1.  Consolidated ownership and operations of the CBM project in CE.
2.  Consolidated ownership and control of the Peace River CBM Gas Plant which
has an $8 million (100%) replacement cost. This gas plant is a key asset in
both the CBM and Montney developments.
3.  Consolidated ownership and control of the only water disposal wells within 35
miles of the Peace River Project. These disposal wells are critical to the
commercial development of both the CBM and the Montney Shale.
4.  Doubled CE’s CBM net proved, probable, possible, and contingent resources
to 497 BCF
12
CE Deep Water Disposal Rights
Deep Water Disposal Rights:
Gross
Acres
50,069
Net
Acres
25,035
13
Salt Water Disposal Well Locations
54 Miles
ACTIVE
SUSP
70 Miles
14
Go Forward
• 
CE has four primary assets:
•  1. CBM Project with 497 BCF of resource potential
•  2. High capacity water disposal in a province short of disposal capacity
•  3. Gas plant
•  4. A technology that we intend to implement in the CBM project to enhance the
economics; and to apply this technology in the unconventional mining of coal,
diamonds, and potash.
CE will attempt to secure a water disposal contract to generate near-term cash flow and to
monetize/develop its undeveloped water disposal rights.
CE will, by natural expirations, reduce its CBM lands to +25% of present holdings in the
core of thickest coal deposits and in proximity to its production facilities. This core
acreage contains a disproportionate share of the gas resource potential under Company
lands.
CE will attempt to implement its technology in the Peace River CBM Project and to exploit
15
opportunities in additional CBM plays and in coal, diamond, and potash prospects.
Summary
• 
91 gross sections strategically located major structural feature with CBM potential
• 
Approximately $56 million historical capex into the CBM Project
• 
23.6 BCF 2P Reserves
• 
79 BCF Possible Reserves
• 
394.1 BCF CBM Contingent Resources
• 
497 BCF Total CBM Resource Potential
• 
Pipeline connected
• 
Gas Plant in place
• 
Water disposal established
• 
50,000 ac (77 gross sections) of undeveloped disposal potential
16