Armstrong for Alaska: Nanushuk Ed Kerr Director Armstrong Energy, - PowerPoint PPT Presentation

Armstrong for Alaska: Nanushuk Ed Kerr Director Armstrong Energy, LLC Resource Development Council 37th Annual Alaska Resources Conference November 17, 2016 1

Armstrong for Alaska Ø Armstrong in Alaska Ø Nanushuk Development q Lands q Infrastructure q Oil PROJECT AREA q Schedule 2

Armstrong in Alaska Ø Armstrong Ø Leasing Ø Exploration Opportunities, Partnerships and Strategy NIKAITCHUQ OOOGURUK (Operator – ENI) (Operator – Caelus) BEAUFORT SEA DEADHORSE NUIQSUT 3

Armstrong in Alaska Ø Commitment to Infrastructure Development and Operations OOOGURUK NIKAITCHUQ North Slope q Oooguruk q Nikaitchuq Cook Inlet q North Fork NORTH FORK 4

Nanushuk Development Ø Acquired area leases beginning in 2008 Ø Aggressive exploration program DEADHORSE NUIQSUT 2011-2015 Drilled Wells 5

Nanushuk Development Ø Pikka Unit q 63,304 acre unit approved by State of Alaska and Arctic Slope Regional Corporation (ASRC) effective June 01, 2015 q SE of the east channel of the Colville River within the North Slope Borough q 7 miles northeast of Nuiqsut 6

Nanushuk Development: Lands Ø Kuukpik Ø State Ø Arctic Slope Corporation, Majority of lands Regional Nuiqsut crossed by Nanushuk Corporation / State pipeline and road Working closely to Subsurface mineral develop an equitable resources plan for surface use DS1 DS2 NPRA DS3 NUIQSUT Federal land State land 7

Nanushuk Development: Infrastructure 8

Nanushuk Development: Oil Ø Nanushuk and Alpine C targets Ø 120,000 bbl/pd production and new oil into TAPS at crucial time Ø Approximately 3.25 BB barrels in place Ø 25% to 50% of barrels recoverable Ø Predominant percentage of Oil at 30 degree° API gravity with some oil at 38 degree gravity. Ø 750MMBO of recoverable reserves from these 3 pads and this may be repeatable. 9

Proposed Nanushuk Development: Schedule Year(s) AcEvity 2015-2018 § Environmental Impact Statement www.nanushukeis.com § IniHate regional and local permiIng processes § SelecHon of the engineering company to design the CPF 2017-2018 § ConstrucHon of camp to accommodate 600 people § ConstrucHon of SealiO and truckable modules for CPF § Civil works/gravel operaHons 2019-2021 § Pipeline work § Drilling 2020-2021 § SealiO Delivery 2022 § First ProducHon Subject to change • CPF modules construc8on; • Seali> delivery; • Civil/Gravel opera8ons; • Permi.ng; • Pipeline work; • CPF engineering company selected; • First produc8on; • Camp construc8on; 2015 2016 2017 2018 2019 2020 2021 2022 EIS Drilling 10

Armstrong Benefits Alaska COMMUNITY JOBS TAXES, REVENUES, FEES q Sports, arts, q Construction, drilling q Corporate, income, traditional and and operations property regional cultural activities taxes q Local hire / contracts and celebrations q Royalties, rents and q STEM activities and interest programs q Fees 11

What stops Alaska’s future? Ø Taxes Ø Regulatory uncertainty 12

Quotes John Quiton, Royal Air Force Aviator and George Cross Medal recipient. “Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel.” 13

Quotes Lyndon Baines Johnson, 36 th President “Light at the end of the tunnel? We don't even have a tunnel; we don't even know where the tunnel is.” 14

THANK YOU 15