1. This is Western Oil Sands Corporate Presentation October 2006
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6. Long Life Reserves (million bbls) Reserves Discovered P & P Resources Western Muskeg River Mine 1,551 - 310 Lease 13 (remainder) & 90 - 5,281 1,056 Lease 88 & 89 - 2,038 407 Lease 9 & 17 - 899 180 Total 1,551 8,218 1,953
7. Athabasca Land Position Existing AOSP (pre-2005): 110,522 Chevron Leases: 75,000 (unevaluated) Shell Leases Acquired in 2005: 90,144 (unevaluated) Western Lease: 8,225 (unevaluated) Total: 283,891 acres or 60,067 acres net to Western Mining Mining In-situ In-situ (Acres)
8. Athabasca Oil Sands Region Athabasca Oil Sands Project Leases acquired in 2005 – to be evaluated In-situ Lease – Western-operated Ells River Project
10. Production vs. Unit Cash Operating Costs (thousands of bbls/d, net to Western) $25.44 $20.58 $19.38 $26.12 $22.06 $20.71 $21.17 $23.44 26.5 33.0 32.8 25.9 32.0 23.6 27.1 35.6 (operating costs: Cdn$/processed bbl) For sensitivities on 2006 guidance see supplementary information 15.5
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13. Production Ramp-up - Western’s share MRM Current Operations + Production Optimization Initiatives MRM Expansion 1 MRM Expansion 2 MRM Expansion 3 (thousands of bbls/d) Western Potential Share > 100,000
14. Production Growth – Mining and In-situ Base > 100,000 bbls/d 150,000 to 200,000 bbls/d Expansions 1 to 3 Western’s share of production Expansions 4 to 6 and in-situ Today +5 +10 +15
16. Modeling Assumptions – Expansions WTI $55 $65 Strip Production (mbbls/d) 100 100 100 Capital Expenditures* Expansion #1 (Cdn$/annual bbl) 200 250 300 Operating Costs (Cdn$/bbl) $18 - $20 $19 - $21 $19 - $23 FX (US/Cdn) $0.84 $0.88 $0.88 Production Enhancements 3% compounded increase in expansion volumes for first 10 years * $Cdn/annual barrel of production. Estimates currently under review by AOSP Project team in light of current market conditions.
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20. Natural Gas (Cdn $/mcf) -$0.10 +$0.10 Sensitivity Analysis: NAV per share Steady State, Strip WTI (July 5*) WTI (US $/bbl) FX (Cdn/US) Variable Opex per barrel (Cdn $) -$1.00 +$1.00 +10% -10% -$0.10 +$0.10 -$0.01 +$0.01 Expansion Capex (Cdn $) * See supplementary information for strip pricing detail
33. Offering investors a combination of assets and management capable of delivering exceptional shareholder value and sustainable growth. www.westernoilsands.com
39. Operating and Financial Results Three Months Ended June 30 2006 2005 - 34,899 Turnaround Costs 810,214 661,499 Long-term Financial Liabilities (12,900) 55,828 Net Capital Expenditures 0.18 (0.14) Net Earnings (Loss) per share (basic) ($/share) 28,650 (22,787) Net Earnings (Loss) 0.42 (0.13) Cash Flow per share (basic) ($/share) 68,019 (20,833) Cash Flow 84,063 (8,199) EBITDAX 148,167 95,633 Net Revenue Financial ($thousands, except as indicated) 44,503 22,614 Synthetic Crude Sales 32,757 15,540 Bitumen Production Operating (bbls/d)
40. Balance Sheet ($ thousands) As at June 30, 2006 As at Dec. 31, 2005 Current Assets 78,087 123,426 Capital Assets 1,428,355 1,352,605 Deferred Charges and Other 14,783 16,063 1,521,225 1,590,520 Current Liabilities 143,965 104,699 Long-term Liabilities Debt 532,750 565,655 Other 171,309 206,764 Shareholders’ Equity Share Capital 551,742 548,747 Contributed Surplus 4,640 3,474 Retained Earnings (Deficit) 116,819 161,181 1,521,225 1,590,520