Solid Development with Future Production Growth 

Peace River:  Ownership in highly economic play with Bluesky and Clearwater upside

Peace River is a high-quality stable, cold-flow heavy oil resource within the heart of the Peace River Oilsands region. We have full ownership in a large, contiguous ~700 section area of land at Peace River, providing substantial opportunity for future development with supportive commodity prices and recent well results. Some of the key attributes of our plays include:

• Cold-flow heavy oil resource developed with multi-leg horizontal wells
• Competitive royalty structure with low royalty rates 
• Industry activity continues over emerging Clearwater formation play

OUR PEACE RIVER ASSETS

• Ownership:  Large, contiguous, long-term land base of ~700 sections with Bluesky and Clearwater heavy oil rights
• Production:  Established Bluesky and Clearwater development fields provide stable production from ~94 of ~700 sections
• Exploration/Appraisal Upside: 
  • Discovery and establishment of new development fields offers significant production growth potential:  Dawson (Clearwater) and Walrus (Bluesky) fields
  • Exploration/appraisal programs further delineate land base for new development, well inventory and growth upside
  • Enhanced oil recovery potential through application and testing of waterflood pilot project
• Infrastructure:  Extensive owned infrastructure and multiple sales points
  • Dominant owned road network and gas infrastructure position with ~70% of available gas facilities 
• Inventory:  Growing inventory of booked plus un-risked locations for future growth
• Synergies:  Simultaneous drilling and equipping operations reduce production cycle times

PEACE RIVER FORMATIONS

Our Bluesky Formation Assets

• ~660 metres sub-surface
• Reliable and steady Bluesky production with shallow declines
• Significant source of future growth
• Established new development field at Walrus field
• Apply new drilling designs/technology at Harmon Valley South field
• Expertise in multi-leg Bluesky heavy oil horizontal oil drilling

Our Clearwater Formation Assets

• ~450 metres sub-surface
• Established first primary development field at Dawson
• Executing EOR waterflood pilot project at Dawson to test the potential for increased reservoir oil recovery
• Substantial opportunity for future development with encouraging well results
• Encouraged by the reservoir and fluid quality results 
• Able to leverage Bluesky operational experience and infrastructure for improved efficiencies

OUR PLANS FOR 2025 H1

HISTORY

•  2025:  H1 capital program weighted towards Heavy Oil asset, designed to grow future production through the development of existing fields and further appraisal of our undeveloped land base 
  • Peace River:  Continue strategy of exploration/appraisal activities in Q1 to further delineate our vast acreage, development drilling throughout the year to support our producing fields, and testing our “waffle well” drilling design and an enhanced oil recovery pilot project to increase reservoir recovery and reduce decline rates 
• 2024:  Core data analyzed from our 2023 and 2024 OSE wells further delineated our land position in Peace River, providing detailed subsurface data for both Bluesky and Clearwater formations
  • Successfully discovered and established a new Bluesky formation development area at Walrus
  • Exploratory/appraisal drilling successfully delineated the Dawson area and established it as our first Clearwater development field  
  • Tested new drilling designs at Harmon Valley South, providing production results at the top end of our expectations
• 2023:  Further unlocked the additional substantial potential across our acreage through development and exploration/appraisal drilling, further delineating our land base
  • Successfully discovered and established a new Clearwater formation development area at Dawson
  • Gathered valuable information through the drilling of four vertical oilsands exploration wells, which was used to assess multiple formations and optimize our capital program This data was also key to the development of our multi-year Peace River development plan and to improve future well design
• 2022:  Established and expanded our Bluesky development through our development and exploration/appraisal work, showing strong reservoir and fluid quality results 
  • Drilled one well targeting the Clearwater play to further delineate our land base
• 2021:  Returned to Bluesky formation development with four wells that achieved strong production rates 
• 2000 and prior:  Development activity paused for several years due to low commodity prices