SLIDE 1
DIVERSIFIED OIL & GAS PRODUCTION, DEVELOPMENT AND EXPLORATION
Corporate Presentation | 2019
In the interest of providing Fortem shareholders and potential investors with information regarding Fortem, including management's assessment of Fortems’ future plans and
- perations, certain statements made by the presenter and contained in these presentation materials (collectively, this "presentation") are "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). The forwardlooking statements contained in this presentation speak only as of the date of this presentation and are expressly qualified by this cautionary statement. The information contained in this presentation does not purport to be all-inclusive or to contain all information that potential investors may require. Specifically, this presentation contains forward-looking statements relating to, but not limited to: our business strategies, plans and objectives; our target to fund our capital program and cash dividends from internally generated funds from operations; our dividend policy; our ability to mitigate the volatility in Western Canadian Select price differentials by transporting our crude oil to market using railways; our three key resource plays (Canada- Godin & Compeer, United States (Utah)- Moenkopi, Mancos), our operational plans for 2019, including oil and natural gas production and capital expenditures, the allocation of our capital budget by area and the number of wells to be drilled by area; our oil and natural gas production for 2019 and production growth rates; our production mix for 2019; our production by region for 2019; reserves and reserves life index; single well economics at Godin, Compeer, Moenkopi, Mancos, including drilling and completion costs, initial production rates, liquids weighting, capital efficiency ratio and the oil price at which the projects break-even;
- ur liquidity and financial capacity; the sufficiency of our financial resources to fund our operations; the sensitivity of our 2019 funds from operations to changes in West Texas
Intermediate oil prices, heavy oil differentials, natural gas prices and Canada-United States foreign exchange rates; the existence, operation and strategy of our risk management program, including the portion of future exposures that have been hedged; the pricing benchmarks used for our liquids production; operating netbacks for our Canadian and American assets. Cash dividends on our common shares are paid at the discretion of our Board of Directors and can fluctuate. In establishing the level of cash dividends, the Board of Directors considers all factors that it deems relevant, including, without limitation, the outlook for commodity prices, our operational execution, the amount of funds from operations and capital expenditures and our prevailing financial circumstances at the time. Although Fortem believes that the expectations and assumptions upon which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Fortem can give no assurance that they will prove to be correct. These forward-looking statements are based on certain key assumptions regarding, among other things: petroleum and natural gas prices and pricing differentials between light, medium and heavy gravity crude oil; well production rates and reserve volumes; our ability to add production and reserves through our exploration and development activities; capital expenditure levels; the receipt, in a timely manner, of regulatory and other required approvals for our operating activities; the availability and cost of labour and other industry services; the amount of future cash dividends that we intend to pay; interest and foreign exchange rates; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; our ability to develop our crude oil and natural gas properties in the manner currently contemplated; and current industry conditions, laws and regulations continuing in effect (or, where changes are proposed, such changes being adopted as anticipated). Readers are cautioned that such assumptions, although considered reasonable by Fortem at the time of preparation, may prove to be incorrect.
FORWARD LOOKING STATEMENTS