Solid Development with Future Production Growth 

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

The Peace River area is one of the three major Canadian oil sands deposits (along with Athabasca and Cold Lake) with significant resource in place. Commercial oil sands operations have been ongoing and progressing in the area since the mid-1980’s; utilizing recovery technologies ranging from multi-lateral, open hole drilling for cold-flow heavy oil production, in-situ thermal projects, and enhanced oil recovery utilizing waterflood or polymer flood.

Our ownership is in 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 sections 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
• Enhanced oil recovery (EOR) upside

OUR PEACE RIVER ASSETS

• Ownership:  Large, contiguous, long-term land base of >700 sections with Bluesky and Clearwater heavy oil rights
• Exploration/Appraisal Upside: 
  • Discovery and establishment of new development fields offer significant production growth potential:  Dawson (Clearwater), Nampa (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 projects
• 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 production with shallow declines
• Significant source of future growth
• Established new development at Walrus 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 projects at Dawson, West Dawson and Nampa to test the potential for increased reservoir oil recovery
• Substantial opportunity for future development with encouraging well results