FOCUSED - EFFICIENT - SUSTAINABLE

Transcription

1 TSX: PRQ FOCUSED - EFFICIENT - SUSTAINABLE November 14,

2 INVESTING: WHY PETRUS? Competitive and Sustainable Value Creation Increasing Oil Weighting 1,2,3 Targeting 25% oil in Q an 80% increase from Q1 2018, 74 Cardium Light Oil Locations with payouts 10 months Debt Repayment Reduced net debt by $16.5 Million in first 3 quarters of 2018, targeting D/CF of less than 2.0x 1 by Q Low Cost Operator Total cash costs of $10.18/BOE is consistently one of the lowest in peer group 4 Fully Funded Free funds flow using strip prices for 2018 Value Opportunity Q EV/DACF 5 of 4.4x is low compared to peer group 4 CJ YGR CR JOY MQX TVE SGY SRX DEE PRQ PMT PONY 4.4X 1) Estimates based on internal data and projections. 2) Locations include a combination of booked locations as identified by Sproule Associates Limited ( Sproule ) and unbooked locations which are internal estimates based on Petrus internal evaluations 3) Assumptions: Oct 29, 2018 CIBC strip, Fx 1.25, WTI Diff Oct 30, 2018 ClearPort strip, Feb 2019 on stream, Crown w/ 5% avg. GOR. Economics provided for Tier 1 Oil and Tier 1 Condensate locations represent average locations for each category and have average Petrus working interests of 37% and 64% respectively. 4) Peer group, as defined by Petrus, comprised of the following companies listed in alphabetical order: Cardinal Energy Ltd., Crew Energy Inc., Delphi Energy Corp., Journey Energy Inc., Marquee Energy Ltd., Painted Pony Energy Ltd., Perpetual Energy Inc., Pine Cliff Energy Ltd., Storm Resources Ltd., Surge Energy Inc., Tamarack Valley Energy Ltd. and Yangarra Resources Ltd. 5) EV/DACF calculated internally by Petrus using publically available data from quarterly financial reports. Any calculation requiring share price uses June29, 2018 closing price. 2

3 PETRUS: A SNAPSHOT Corporate Profile Production & Funds Flow Q Average Production 8,338 boe/d Production Temporarily Shut-In Due To Low Gas Prices 850 boe/d (Dry Gas) Base Decline Rate ~29% Commodity Weighting 67% Gas, 33% Oil & Liquids Q Funds Flow (Annualized) 1 $30.8 mm ($0.64/share 2 ) Market Summary & Capital Structure Shares Outstanding & Market Capitalization mm (40% Insiders), $46 mm Net Debt 4 $131.6 mm Revolving Credit Facility 5 $110 mm ($97 mm drawn) Second Lien Term Loan 5 $35 mm (matures October 2020) 3 1) Funds flow represents annualized Q funds flow. 2) Per share figure uses annualized Funds Flow for Q and common shares (basic) outstanding as at September 30, ) 49.5 million basic shares outstanding, 16.1% insiders. Calculation of Market Capitalization uses September 28, 2018 closing price. 4) Net debt includes working capital (deficiency) and is estimated as at September 30, ) Revolving credit facility requires first and second lien lender approval for borrowing above $105 mm. Amounts outstanding on revolving credit facility and second lien term loan are as at September 30, 2018.

4 THE CARDIUM: INCREASING OIL PRODUCTION Cardium Light Oil Development in Ferrier 80%1 Targeted Increase In Oil Weighting Q to Q % 33% 34% 28% 29% 25% 22% 14% 16% 18% Q Q Q Target YE 2018 Target YE Oil Total Liquids 2 1) Estimates based on internal data and projections. 2) Total Liquids includes oil and NGL production. 4

5 Millions BALANCE SHEET: IMPROVING FINANCIAL FLEXIBILITY Proven Commitment to Debt Reduction $16.5mm(11%) <2.0x1 Q1-Q Debt Repayment Targeted Q Debt/Funds Flow $ x 2.9x <2.0x $0 YE 2017 Target YE 2018 Target YE 2019 Net Debt 2 Net Debt/Funds Flow 3 1) Targeted Debt/Funds Flow ratio represents estimated Q debt/funds flow using internal data and projections. 2) 2017 net debt uses actual net debt outstanding as at December 31, and 2019 net debt represents estimated year-end net debt using internal data and projections. 3) 2017 net debt/funds flow uses actual net debt outstanding as at December 31, 2017 and annualized Q funds flow and 2019 net debt/funds flow based on estimated year-end net debt and Q and Q annualized funds flow using internal data and projections. 5

6 COST MANAGEMENT: OPERATING COSTS Creating Sustainability & Resilience Through Low Cost Operations 48% 1 Operating Costs $8.90 $6.48 $5.08 $ Q1-Q Avg. Op Ex ($/boe) 1) Operating costs decreased 48% from year end 2015 compared to the average operating cost for Q1, Q2 and Q

7 ASSETS: CORPORATE OVERVIEW Ferrier Focused FOOTHILLS Cardium Oil, Low decline Gas 582 boe/d Locations CENTRAL ALBERTA Low decline, Glauc Oil 1,684 boe/d Locations EDMONTON FERRIER Predictable, Liquids Rich Cardium 6,072 boe/d Cardium Locations 71+ Other 3 Locations RED DEER LMR: Drilling locations 67% Gas, 33% Liquids 1) Production represents average Q production. 2) Alberta Energy Regulator Liability Management Ratio as at November 3, ) Other locations refer to Glauconitic and other Mannville formations including the Notikewin, Falher and Ellerslie. 7

8 ASSETS: FERRIER Cardium Oil 6,072 Current boe/d 1 70 bbls/mmcf 50% Oil & 50% Liquids 282+ Locations Repeatable, predictable, low risk, manufacturing style resource play Cardium oil and condensate rich gas Infrastructure control TCPL Sales Line Potential for Glauconitic, Notikewin, Falher, Ellerslie Petrus 2-25 Plant 1) Production represents average Q production. 8

9 FERRIER: CARDIUM OIL Recent Step Changes In HZ Oil Development bbl/d Oil Avg. IP Rates Based on Recent Cardium Oil Results 100 mbbl Oil Forecasted Cumulative Production in First Year 4-26 IP Oil: 610 bopd Cum Oil: 43 mbbl Prod Months: 3 2/1-34 IP Oil: 459 bopd Cum Oil: 56 mbbl Prod Months: IP Oil: 543 bopd Cum Oil: 160 mbbl Prod Months: IP Oil: 432 bopd Cum Oil: 127 mbbl Prod Months: IP Oil: 718 bopd Cum Oil: 115 mbbl Prod Months: IP Oil: 445 bopd Cum Oil: 99 mbbl Prod Months: IP Oil: 632 bopd Cum Oil: 54 mbbl Prod Months: IP Oil: 489 bopd Cum Oil: 83 mbbl Prod Months: IP Oil: 287 bopd Cum Oil: 50 mbbl Prod Months: Q3/Q4 Drills IP Oil: 517 bopd Cum Oil: 88 mbbl Prod Months: 60 Currently Targeting Exclusively Tier 1 Cardium Oil Locations 1) Individual well production data sourced from publically available data in GeoScout as at August 30,

10 FERRIER: CARDIUM DRILLING Economic Overview Petrus Avg. WI (%) Gross Capital 1 (mm$) Gross Sales IP 30 (BOE/d) Gross Sales EUR (MBOE) IRR 2 (%) Payout 2 (years) NPV10 2 (mm$) F&D 2 ($/boe) Half Cycle Economics Tier 1 Oil Tier 1 Condensate Full Cycle Economics Tier 1 Oil Tier 1 Condensate ) Includes $350,000 of full cycle capital additions. 2) Assumptions: Oct 29, 2018 CIBC strip, Fx 1.25, WTI Diff Oct 30, 2018 ClearPort strip, Feb 2019 on stream, Crown w/ 5% avg. GOR. Economics provided for Tier 1 Oil and Tier 1 Condensate locations represent average locations for each category and have average Petrus working interests of 37% and 64% respectively. 10

11 FERRIER: ECONOMIC COMPARISON Half Cycle Payout Estimates Median Payout: 2.7 Years 3 Petrus Tier 1 (Condensate): 1.3 Year Payout 2 Petrus Tier 1 (Oil): 0.8 Year Payout 1 0 1) Non-Petrus payout estimates provided by Peters & Co. Limited. All payout estimates based on flat US$60/bbl WTI and US$3.00/Mcf NYMEX (C$2.25/Mcf AECO) prices. FX Rate USD/CAD.80 Economics provided for Tier 1 Oil and Tier 1 Condensate locations represent average locations for each category and have average Petrus working interests of 37% and 64% respectively. Petrus economics include 5% average GOR. 2) In some cases actual payout period exceeds bounds of chart area. 11

12 FERRIER: GROWTH Land Position and Drilling Locations 1 Initial Acquisition (Q3 2014) YE 2014 YE 2015 YE 2016 YE 2017 Current 3 Net Undeveloped Acres 7,435 22,735 24,494 27,177 35,648 32,567 Tier 1 Cardium Locations Tier 2 Cardium Locations Other Locations Total Locations GROWTH Q Current 4.4X 3.5X 3X 24X 4X ,567 17YR DRILLING INVENTORY ,435 Net Undeveloped Acres Total Locations Initial Acquisition (Q3 2014) YE 2014 YE 2015 YE 2016 YE 2017 Current 1) Locations include a combination of booked locations as identified by Sproule Associates Limited ( Sproule ) and unbooked locations which are internal estimates based on Petrus internal evaluations. 2) Other locations refer to Glauconitic and other Mannville formations including the Notikewin, Falher and Ellerslie. 3) Current is as at September 30, ) 17 year drilling inventory estimate based on total current locations and a continued drilling pace of 16 gross wells per year. 12

13 FERRIER: OPERATING EXPENSE Ferrier Operating Expense Timeline $8 $7 PETRUS 2-25 GAS PLANT ON STREAM $6 74% 2 Operating Expense Ferrier Opex ($/boe) 1 $5 $4 $3 $2 $1 $0 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 ' ) Operating expense data based on Petrus actual financial data. 2) Ferrier operating expense decreased by 74% from Q to Q

14 FERRIER: IMPROVING CAPITAL EFFICIENCY Reducing the Cost of Adding Production $12,039/boed Total Capital 1 $ Invested per BOE of Production Added 52% 2 $5,837/boed Increased Frac Density Pad Drilling Wellbore Design Improvements Faster Drilling Times Efficient Water Management $/IP60 OPTIMIZATION & ADVANCING TECHNOLOGY 1) Total Capital cost represents cost associated with drilling, completion, equipping and tie-in. 2) Based on IP60, capital $/BOED of added production decreased 52% from 2015 using ball drop technology to 2017 using cemented sleeve technology. 14

15 2018: CAPITAL BUDGET Focus on High Return Oil Assets and Balance Sheet Strength 84% Cardium Oil Development 2018 $25-$30mm Budget 6% Regulatory & Environmental 5% Central AB 5% Other 9 wells (4.4 net) Cardium Oil Development $10-15mm $16.4mm/11% 2% 2018 Free Cash Flow 2 Q1-Q Debt Repayment YoY Prod. Growth 3 1) Gross and net wells are estimated based on estimated 2018 capital budget and expected 2018 drilling program. 2) Estimated Free Cash Flow is based on current forecast for commodity futures pricing, anticipated service costs and current activity levels. 3) Forecasted 2018 production growth reflects the estimated change in production between 2017 and 2018 based on Petrus current capital budget range, drilling program and production estimates. 15

16 2 3 HEDGING: MITIGATING PRICE RISK Oil & Gas Financial Hedges % 2018 Oil Hedged 1 55% 2019 Oil Hedged 1 72% 2018 Gas Hedged 1 43% 2019 Gas Hedged $/BBL 68.79$/BBL 2.53$/mcf 2018 Avg. Price 4,5 2.02$/mcf 2019 Avg. Price Avg. Price Avg. Price 4 1) Percentages hedged based on actual production for January 2018-September 2018; October 2018 forward based on average Q production. Data uses hedging contracts in place as at November 1, ) Oil price represents WTI CAD$/bbl. 3) Gas price represents AECO 7A CAD$/GJ. 4) Average price represents the average price of all 2018 hedging contracts in place as at November 1,, ) Price per mcf based on conversion factors of GJ per MMBTU and 1000 BTU per SCF. 16

17 PETRUS: PEER COMPARISON 1 Q Competitive on Performance Metrics 2 Key performance metrics are competitive with peer group 1 $0 $0.68 Cash Flow/Share 3 $4.33 $9.86 $0 PDP Reserves Value ($/share) 4 $0 Total Cash Costs($/boe) 5 1) Peer group, as defined by Petrus, comprised of the following companies listed in alphabetical order: Cardinal Energy Ltd., Crew Energy Inc., Delphi Energy Corp., Journey Energy Inc., Marquee Energy Ltd., Painted Pony Energy Ltd., Perpetual Energy Inc., Pine Cliff Energy Ltd., Storm Resources Ltd., Surge Energy Inc., Tamarack Valley Energy Ltd. and Yangarra Resources Ltd. 2) All metrics calculated internally by Petrus using publically available data from quarterly financial reports. Any calculation requiring share price uses June 29, 2018 closing price. 3) Cash Flow per Share calculation based on annualized Q cash flow. 4) PDP reserves values per share based on NPV 10 before tax as reported for 2017 and Q weighted average shares outstanding. 5) Cash costs per boe based on Q cash costs and Q production. 17

18 VALUE PROPOSITION: CONTROLLED GROWTH Positioned for Sustainable Value Creation Quality Assets Low risk, strong economics, consistent reserves growth Cardium Oil Targeting profitable and prolific Cardium Oil play in Ferrier Low Cost Operations Ongoing cost reductions, owning key infrastructure significantly reduces op costs Financial Discipline Quality Assets Strong Hedge Book Proven commitment to reducing leverage, Increasing liquidity Commodity price risk mitigated through financial hedges 18

19 READER ADVISORY Petrus Resources Ltd. Corporate Update November 14, 2018 Certain information regarding Petrus Resources Ltd. ("Petrus", "our" or "we" or the "Company") set forth in this document may constitute forward-looking statements under applicable securities laws, including, but not limited to, the following: Petrus' business model, including planned activities by core area, anticipated consolidation opportunities, potential drilling locations and plans, potential waterflood plans and the expected benefits therefrom, the anticipated economics of certain plays based on various assumptions, the potential upside in certain assets, potential hedging gains, 2016 year end reserves, future operating expenses and well costs and other statements herein with respect to intended operational, business and other expected activities. In addition, information relating to reserves is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that the reserves described can be economically produced in the future. The forward-looking statements and information (collectively, forward-looking information ) is based on certain key expectations and assumptions made by Petrus, including expectations and assumptions concerning: prevailing commodity prices and exchange rates (including those prevailing in Alberta); applicable royalty rates and tax laws; future well production rates and resource and reserve volumes; the timing of receipt of regulatory approvals; the performance of existing wells; the success obtained in drilling new wells (including exploration wells); the sufficiency of budgeted capital expenditures in carrying out planned activities; assumptions of costs associated with drilling and development plans; consistency of laws and regulation relating to the oil and gas industry; expectation that current pricing and incentive programs will continue to be in force as expected; the costs and availability of labour and services; the general stability of the economic and political environment in which Petrus operates; and the ability of Petrus to obtain financing on acceptable terms when and if needed. In addition, this document may contain forward-looking information attributed to third party industry sources. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These risks include, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, risks that future drilling will result in unsuccessful wells despite initial expectations being positive, risks that although exploration drilling may result in successful wells, any production from such wells is uneconomic, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, changes in Petrus' credit facilities, including its borrowing base, risk of defaults and other re-determinations, delays resulting from Petrus' inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations and royalty rates) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this document are made as at the date of this document and Petrus does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Although Petrus believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Petrus can give no assurances that they will prove to be correct. Petrus' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Petrus will derive therefrom. The information contained in this presentation does not purport to be all-inclusive or to contain all information that a reader may require. Readers are encouraged to conduct their own analysis and reviews of the Company and of the information contained in this presentation. Without limitation, readers should consider the advice of their financial, legal, accounting, tax and other advisors and such other factors they consider appropriate in investigating and analyzing the Company. Barrels of Oil Equivalent - Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 thousand cubic feet ( mcf"): 1 barrel ("bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to the current price of natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. Analogous Information - Certain information contained herein is considered "analogous information" as defined in National Instrument Standards of Disclosure for Oil and Gas Activities ("NI "). Such analogous information has not been prepared in accordance with NI and the Canadian Oil and Gas Evaluation Handbook and Petrus is unable to confirm whether such estimates have been prepared by a qualified reserves evaluator. In particular, this presentation describes increased recovery factors in a pool analogous to Petrus' Glauconite "A" Pool with respect to waterflood activities. Such information is not intended to be an estimate of Petrus' resources or projections of future results. In addition, such positive analogous information may not be applicable to Petrus or its properties. Such information has been presented to show the potential for enhanced recovery in certain of Petrus' areas of interest or areas analogous to Petrus' areas of interest. Such information is based on independent public data and public information received from other producers and Petrus has no way of verifying the accuracy of such information. Such information has been presented to help demonstrate the basis for Petrus' business plans and strategies. There is no certainty that such results will be achieved by Petrus and such information should not be construed as an estimate of future recovery rates or reserves or resources or future production levels. Well Economics - Certain information contained herein sets forth the well economics utilized by management of Petrus in analyzing various opportunities of Petrus. The presentation of such well economics does not represent an estimate of reserves or the net present value of such reserves. Such economics were prepared on the assumptions set forth herein and also make certain other assumptions with respect to initial production levels, the type of commodity that may be produced, commodity prices, well depths, capital expenditures that may be incurred in drilling, completing and in the tie-in of wells, operating costs related to the wells and royalties. The well economics are partially based on certain historic results received by Petrus and other producers in the area to date and certain production profiles based on area production and other assumptions as set forth, which may prove to be inaccurate. 19

20 READER ADVISORY Continued Capital costs to drill, complete and tie-in wells and operating costs in each area are also based on management's experience and not on historical data. In addition, such costs are based on management's estimates when the estimates were prepared and have not been escalated notwithstanding that certain wells are planned to be drilled in the future or that operating costs may increase in the future, including during the period that wells are projected to be drilled. Target volumes are volumes of oil and natural gas that management is targeting and in respect to which management is basing its decision to pursue the opportunity in a particular prospect. Actual reserves recovered from any prospect may be different than management's expectations utilized for planning purposes as provided herein and such difference may be material and would impact on the economics of each particular play. Initial Production Rates - Any references herein to production rates, test rates or initial production rates (including IP 30) are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for Petrus. Initial production or test rates may be estimated based on other third party estimates or limited data available at this time. Well-flow test result data should be considered to be preliminary until a pressure transient analysis and/or well-test interpretation has been carried out. In all cases herein, initial production or test results are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons. Drilling Locations - This document discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the report prepared by Sproule Associates Limited dated March 8, 2018 and effective December 31, 2017 evaluating the crude oil, natural gas liquids and natural gas and future net production revenues attributable to the properties of Petrus and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on Petrus' prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves. Of the 412 gross (252.5 net) drilling locations identified herein 158 gross (86.4 net) are proved locations, 63 gross (34.0 net) are probable locations and 191 gross (132.1 net) are unbooked locations. Unbooked locations have been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Petrus will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been derisked by drilling existing wells in relative close proximity to such unbooked drilling locations, some of other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production. Non-GAAP Measures - This document contains terms commonly used in the oil and natural gas industry, such as funds flow, debt-adjusted share, operating netback and net debt. These terms do not have a standardized meaning under International Financial Reporting Standards and may not be comparable to similar measures presented by other companies. funds flow" should not be considered an alternative to, or more meaningful than, funds from operating activities as determined in accordance with International Financial Reporting Standards as an indicator of Petrus' performance. "funds flow" represents funds from operating activities prior to changes in non-cash working capital, transaction costs and decommissioning provision expenditures incurred. "Net debt" is long term debt, capital lease obligations, bank debt, working capital deficiency and income taxes (but specifically excluding future income taxes and risk management assets and liabilities). "Operating netbacks" is a benchmark used in the oil and gas industry to measure the contribution of crude oil and natural gas sales after deducting royalties and operating costs. Definitions: boe = barrel of oil equivalent (6:1) boe/d = boe per day mmcf/d = mmcubic feet per day WI = working interest mm = million 20

21 APPENDIX Supplemental Information 21

22 PETRUS: LEADERSHIP Diverse, Experienced & Effective DON T. GRAY Chairman, Board of Directors Peyto Exploration & Development Corp. Gear Energy Ltd. STEPHEN WHITE Director Veresen Inc. Fort Chicago Energy Management Ltd. DONALD CORMACK Director Former PWC Audit Partner Walton Group YYC Calgary Airport PATRICK ARNELL Director Rangeland Industrial Services Ltd. ORIX Investments Inc. NEIL KORCHINSKI President & CEO, Director Peyto Exploration & Development Corp. Renaissance Energy Crescent Point Energy Husky Energy CHEREE STEPHENSON VP Finance & CFO Peyto Exploration & Development Corp. Gear Energy Ltd. Ernst & Young LLP MARCUS SCHLEGEL VP Engineering CanEra Energy Corp. Canadian Natural Resources Limited Anadarko Canada BRETT BOOTH VP Land Bonavista Energy ROSS KEILLY VP Exploration Bonavista Energy Husky Energy Anadarko Canada 22

23 APPENDIX: OIL AND GAS PRODUCTION RATES Recent Well Production Data 1 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Cumulative Production Lateral Length (miles) On Prod Date Gas Liquids Total (mcf/d) (bbl/d) (boe/d) Gas Liquids (mcf/d) (bbl/d) Total (boe/d) Gas Liquids (mcf/d) (bbl/d) Total (boe/d) Gas (mcf/d) Liquids (bbl/d) Total (boe/d) Gas Liquids Total (mcf/d) (bbl/d) (boe/d) Gas Liquids (mcf/d) (bbl/d) W5 2 1/12/17 2, , , , , , ,610 41,074 44, ,289 24% W5 1 4/23/ , , , , , ,979 16, ,860 41% W5 1 4/23/ , , , , , ,980 17, ,032 40% W5 1 5/5/17 3, , , , , , ,039 29, ,395 25% W5 1 5/5/17 2, , , , , , ,171 45,446 33, ,502 29% W5 2 11/27/17 1, , , , , , ,626 23, ,705 35% W /12/ , , , , , ,060 16, ,264 50% W5 2 12/20/17 1, , , , , , ,581 22, ,938 31% W5 1 3/6/ ,277 5, ,097 79% W5 1 7/4/ , ,887 68% Average 1, , , , , , Total (boe/d) Total Days on Prod Gas (mmcf) Oil (bbl) NGL (bbl) Total (boe) % Liquids 23 1) Production data represents field estimates; gas production and totals are based on raw production.

24 Oil (bopd) FERRIER: TYPE CURVE COMPARISON Tier 1 Oil Type Curve versus Actual Performance 600 Tier 1 Oil Economics 500 DCET Capital (mm$) IP30 (bopd/boed) 340 / 605 IP365 (bopd/boed) 162 / EUR (mmbl/mboe) 157 / 457 NGL Yield (bbl per mmcf) Actual Tier 1 Oil-Average Tier 1 Oil-Type Curve ) Actual Tier 1 Oil-Average production data sourced from GeoScout (6 wells). 2) Petrus internal type curve. 3) Assumes 80 frac stages. Months on Production 24

25 Production (boe/d) Oil & Condensate (bbl/d) FERRIER: TYPE CURVE COMPARISON Tier 1 Condensate Type Curve versus Actual Performance Tier 1 Economics DCET Capital (mm$) IP30 (mcfd/boed) 2,210 / 531 IP365 (mcfd/boed) 1,348 / 313 EUR (mmcf/mboe) 2,300 / NGL Yield (bbl per mmcf) Actual Tier 1 Condensate-Average 20 1 Tier 1 Condensate-Type Curve2 Tier 1 Condensate Type Curve-Associated Oil/Condensate Months on Production 25 1) Actual Tier 1 Condensate-Average production data sourced from GeoScout (41 wells). 2) Petrus internal type curve. 3) Assumes 35 frac stages

26 Suite 2400, 240 4th Avenue SW Calgary, Alberta T2P 4H4 FOR MORE INFORMATION PLEASE CONTACT: Neil Korchinski, President & CEO Cheree Stephenson, VP Finance & CFO