Spartan Energy Corp. Q4/16 Operating and Financial Results Fundamentals Support Activity into 2017

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1 SPE (T) Stock Rating: Cdn$2.54 Outperform (Unchanged) Target: $4.25 (Unchanged) Risk Rating: Above Average (Unchanged) Est. Total Return 67% Stock Data - Q1/17E 52-week High-Low (Cdn$) $ $3.65 Shares Outstanding f.d. (mln) Free Float Pct 84% Net Debt (mln) $197 Market Cap. (mln) $1,401 Enterprise Value (mln) $1,598 Production 2016e 2017e 2018e Oil & NGL's (bbls/d) 10,792 19,425 22,268 Nat. Gas (mcf/d) 5,738 9,930 11,383 Boe/d (6:1) 11,748 21,080 24,165 % Nat. Gas 8% 8% 8% Pricing* 2016e 2017e 2018e WTI (US$/bbl) $43.25 $57.50 $60.00 AECO (Cdn$/mcf) $2.05 $2.70 $3.10 Corp. Oil & NGL's ($/bbl) $46.58 $63.84 $65.31 Corp. Nat. Gas ($/mcf) $2.24 $2.52 $2.87 Corp. Wellhead ($/boe) $43.88 $60.01 $61.53 Estimates 2016e 2017e 2018e Cash Flow (mln) $76.7 $239.3 $293.6 CFPS - diluted $0.22 $0.43 $0.53 CF Netback ($/boe) $17.85 $31.10 $33.28 Capex (mln) $854.7 $145.0 $182.5 Net Debt (mln) $214.6 $120.3 $9.2 Valuation 2016e 2017e 2018e P/CF 14.1 x 5.9 x 4.8 x EV/DACF 14.1 x 6.1 x 4.8 x Net Debt / CF 2.8 x 0.5 x 0.0 x EV/BOE/D $96,391 $72,175 $58,364 P/NAVPS 1.0x EV/boe P+P $14.64 Source: Company Reports, NBF Estimates Industry Rating (Oil & Gas Exploration and Production): Underweight (NBF Economics & Strategy Group) Company Profile: Spartan Energy is a light oil-focused producer with a strategy hinged on sustainable growth through a combination of accretive acquisitions and organic additions via the drill-bit. The company s asset base is primarily located in Saskatchewan targeting the Mississippian and Viking. Dan Payne, CFA - (403) dan.payne@nbc.ca Associate: Chris Haughn - (403) christopher.haughn@nbc.ca March 16, 2017 Spartan Energy Corp. The NBF Daily Bulletin Oil & Gas Exploration and Production Q4/16 Operating and Financial Results Fundamentals Support Activity into 2017 HIGHLIGHTS Q4/16 Results Ahead of Expectations The company reported Q4 operating and financial results ahead of expectations, including average production of 15,750 boe/d (90% liquids) and associated CFPS of $0.08 (vs. consensus at $0.07; in line with NBF forecast). During the quarter, SPE realized liquids pricing continued to trend higher (90% EDM vs. 87% prior quarter), while its cash cost structure remained relatively static at $28/boe (flat Q/Q), to result in a cash netback of $22.74/boe (up 37% Q/Q) Capital Program Remains on Track 2016 activity exemplified the strength of its underlying assets, with wells outperforming forecast IP90 rates by ~30% (Conventional & Frac Midale), while costs continued to trend lower (down 10%-15% Y/Y; $650k/well single & dual-leg average), and with this momentum carried through to the 2017 program across 39 net wells drilled to-date (one-third of 2017 budget). In step, the company s 2017 capital program remains intact at $145 mln to provide for the drilling of net wells and deliver average production of 21,080 boe/d (92% liquids) with an associated exit rate of 23,000 boe/d (10% Y/Y growth). In association with this program, the company will drill 3 H2 Torquay wells to delineate and de-risk a 22 net section land position in the play with potential for material inventory confirmation (i.e., +80 wells at four wells/section). We continue to suggest that its 2017 program remains risked (partially a function of risked capital activity like the Torquay), by 15%-30% (based on realized type-curves and costs), which will continue to expose incremental value growth and upside through Capitalization Remains In-Check Capitalization at the end of the year remained in-check, with net debt outstanding of $214.6 mln (ex-finance lease obligation), or 1.6x annualized Q4 D/CF, against a $350 mln bank line. Recall, the defensibility of its business is underpinned by high netbacks, low decline (<24%) and solid capital efficiencies, which sees the company generate +$40 mln in free cash flow at $50/bbl WTI, and the ordinal ranking of priorities for FCF standing as waterflood, balance sheet, and acquisitions. Maintaining Outperform Rating and Target Price of $4.25 A solid conclusion to 2016, with results slightly ahead of expectations as a reflection of the strength of its fundamentals, while operating momentum remains in to The company presents 28% 2017e DAPPS (vs. peers at 11%), while the stock trades at 6.1x 2017e EV/DACF (vs. peers at 6.4x) on leverage of 0.5x D/CF (vs. peers at 1.2x), and remains at the top of our light oil pecking order. Stock Performance (Source: Bloomberg) Price ($/sh) $4 $3 $2 $1 $0 0 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 18,000 15,000 12,000 9,000 6,000 3,000 Volume (000's)

2 Page 2 Q Results Summary The company reported Q4 operating and financial results ahead of expectations, including average production of 15,750 boe/d (90% liquids) and associated CFPS of $0.08 (vs. consensus at $0.07; in line with NBF forecast). During the quarter, SPE realized liquids pricing continued to trend higher (90% EDM vs. 87% prior quarter), while its cash cost structure remained relatively static at $28/boe (flat Q/Q), to result in a cash netback of $22.74/boe (up 37% Q/Q) activity exemplified the strength of its underlying assets, with wells outperforming forecast IP90 rates by ~30% (Conventional & Frac Midale), while costs continued to trend lower (down 10%-15% Y/Y; $650k/well single & dual-leg average), and with this momentum carried through to the 2017 program across 39 net wells drilled to-date (one-third of 2017 budget). In step, the company s 2017 capital program remains intact at $145 mln to provide for the drilling of net wells and deliver average production of 21,080 boe/d (92% liquids) with an associated exit rate of 23,000 boe/d (10% Y/Y growth). In association with this program, the company will drill three H2 Torquay wells to delineate and de-risk a 22 net section land position in the play with potential for material inventory confirmation (i.e., +80 wells at four wells/section). We continue to suggest that its 2017 program remains risked (partially a function of risked capital activity like the Torquay), by 15%-30% (based on realized type-curves and costs), which will continue to expose incremental value growth and upside through Exhibit 1: Actuals vs. NBF Estimates SPARTAN ENERGY - ACTUALS & NBF ESTIMATES Q Actuals NBF Production Oil & NGLs (bbl/d) 14,263 14,650 Gas (mmcf/d) Total (boe/d) 15,750 15,794 Cash Flow (mln) $33.0 $33.3 CFPS (diluted) $0.08 $0.08 Capital Expenditures (mln)* $25.6 $9.4 Net Debt (mln) $214.6 $182.8 Source: Company Reports, NBF Exhibit 2: Quarterly Summary SPARTAN ENERGY - QUARTERLY SUMMARY Q Q % Change Q % Change Financial Cash Flow ($mln) $33.0 $ % $ % CFPS (diluted) $0.08 $ % $ % CAPEX ($mln)* $25.6 $ % $ % Net Debt ($mln) $214.6 $ % $ % Operating Production Oil & NGLs (bbl/d) 14,263 11, % 8, % Gas (mmcf/d) % % Total (boe/d) 15,750 12, % 9, % Realized Prices** Oil & NGLs ($/bbl) $54.44 $ % $ % Gas ($/mcf) $3.02 $ % $ % Source: Company Reports, NBF

3 Page 3 Well Economics Overview The below chart highlights industry oil well payouts since 2014, accounting for massive variability of commodity prices ($26 - $108/bbl), and indicating average payouts of ~11 months over that period. Exhibit 3: Well Payout Overview Not Paid 40Out Payout vs. WTI Price Overview Payout (months) Average RRX SPE SGY Other Average 5 0 $30 $40 $50 $60 $70 $80 $90 $100 $110 Avg WTI Oil Price During Payout (US$/bbl) Note: Includes wells spud between Jan and Feb. 2016; Operators: BNE, CJ, RRX, SGY SPE, TOG, and WCP. Source: NBF, Company Reports, geoscout Given recent volatility and weakness in pricing, we use this analysis as one factor in determining those operators best positioned to maintain defensible businesses throughout the commodity price cycle, and which is partially a function of cost deflation. Spartan maintains one of the most defensible well payout profiles with ~60% of its wells paying out in a sub-us$60/bbl environment, and largely indicative of defensible play characteristics including low risked capital ($650K well cost) and high proportional oil (>90% light oil), in addition to selectively high rates, and directs towards low service intensity SK-based operations. We note that the analysis of payout relative to operator defensibility is only one input into a broader landscape of sustainability (i.e., declines) Changes to Our Estimates We have made the below changes to our estimates to reflect the quarter.

4 Page 4 Exhibit 4: Estimate Summary SPARTAN ENERGY - NBF ESTIMATES 2017e 2018e New Change New Change Production Oil & NGLs (bbl/d) 19,425 19,425 0% 22,268 22,268 0% Natural Gas (mmcf/d) % % Total 21,080 21,080 24,165 24,165 % Oil 92% 92% 92% 92% Financial Cash Flow (mln) $240.9 $239.3 (1%) $295.2 $293.6 (1%) CFPS diluted $0.44 $0.43 (2%) $0.54 $0.53 (1%) DACF (mln) $247.9 $ % $296.9 $ % per share diluted $0.45 $0.45 (1%) $0.54 $0.54 (1%) Capital Expenditures (mln)* $145.0 $ % $182.5 $ % Net Debt (mln) $86.9 $ % ($25.8) $9.2 nm Debt/CF 0.4x 0.5x 39% -0.1x 0.0x nm NBF COMMODITY FORECAST WTI (US$/bbl) $57.50 $ % $60.00 $ % AECO (C$/mcf) $2.70 $2.70 0% $3.10 $3.10 0% Source: NBF, Company Reports Maintaining Outperform Rating and Target Price of $4.25 A solid conclusion to 2016, with results slightly ahead of expectations as a reflection of the strength of its fundamentals, while operating momentum remains in to The company presents 28% 2017e DAPPS (vs. peers at 11%), while the stock trades at 6.1x 2017e EV/DACF (vs. peers at 6.4x) on leverage of 0.5x D/CF (vs. peers at 1.2x), and remains at the top of our light oil pecking order. Exhibit 5: Credit Analysis CREDIT ANALYSIS ($mm) Q1/16 Q2/16 Q3/ Q1/17 Q2/17 Q3/ EBITDA (1) Debt/EBITDA (1) 0.0x 1.7x 0.8x 2.7x 1.6x 1.0x 0.7x 0.5x 0.0x Net Debt/EBITDA (1) 0.0x 1.7x 0.8x 2.7x 1.5x 1.0x 0.7x 0.5x 0.0x Debt/Capital 0% 12% 6% 14% 13% 12% 10% 9% 1% EBITDA/Interest (2) 21.4x 24.2x 23.6x 21.1x 22.5x 22.2x 24.5x 28.8x 90.1x FFO (3) /Debt nm 55% 124% 35% 61% 93% 136% 193% 2333% (1) EBITDA trailing 12 months (2) Interest trailing 12 months (3) FFO trailing 12 months Source: NBF, Company Reports

5 Page 5 Exhibit 6: Peer Comparables Ticker Price Market Cap (mln) Yield EV/DACF Production (mboe/d) % Gas DAPPS Growth Cash Flow Netback Cash Flow Margin D/CF % Drawn Total Net Payout 2017E 2017E 2018E 2017E 2018E 2017E 17/16 18/ E 2018E 2017E 2018E 2017E 2018E 2017E 2017E 2018E BNE $21.63 $ % 6.3x 5.7x % 14% 10% $29.98 $ % 59% 2.1x 1.7x 75% 76% 73% CJ $7.17 $ % 7.4x 4.7x % 5% 10% $14.14 $ % 43% 1.4x 0.8x 26% 101% 89% CPG $14.84 $8, % 5.7x 5.0x % 0% 9% $30.35 $ % 54% 1.9x 1.5x 39% 86% 89% RRX $9.02 $2, % 6.5x 5.6x % 25% 15% $41.36 $ % 67% 0.5x 0.2x 35% 92% 75% SGY $2.48 $ % 4.9x 3.9x % 9% 12% $26.16 $ % 57% 1.0x 0.5x 52% 77% 70% TOG $6.85 $1, % 6.1x 5.3x % 5% 10% $32.26 $ % 56% 0.8x 0.4x 35% 67% 70% TVE $2.91 $ % 4.0x 3.2x % 4% 15% $25.98 $ % 60% 0.6x 0.3x 47% 87% 82% VET $49.68 $5, % 9.7x 8.5x % 14% 10% $27.28 $ % 56% 1.8x 1.3x 39% 74% 70% WCP $10.37 $3, % 7.3x 5.8x % 23% 13% $28.00 $ % 60% 1.1x 0.6x 36% 69% 73% Avg 3.2% 6.4x 5.3x 23% 11% 12% $28.39 $ % 57% 1.2x 0.8x 43% 81% 77% SPE $1, % 6.1x 4.8x % 28% 22% $31.10 $ % 54% 0.5x 0.0x 35% 61% Source: NBF, Company Reports 62% We are maintaining our Outperform rating and $4.25 per share target price. Our target price is predicated on a valuation methodology that solely reflects a cash flow multiple and is correlated to an asset value perspective. For SPE, our target price is based on an equally weighted 2017/2018E cash flow multiple of 8.8x (unchanged). In the table below we highlight a breakdown of our target valuation. Exhibit 7: Valuation Summary VALUATION OVERVIEW Multiple $/sh Blended '17/'18e EV/DACF Target 8.8x $4.25 Unrisked Value Implied Risk Factor Risked Value Resource Upside $mln $/sh % $mln $/sh SK Viking $77.4 $ % $128.6 $0.23 SESK Mississippian $482.6 $ % $801.6 $1.45 Total Resource Upside $560.1 $ % $930.2 $1.69 Base 2P NAV (year-end 2016) $2.56 Target Price $4.25 Current Share Price $2.54 Return 67% $6.00 $5.00 Unrisked Upside Risked Upside 2P Blowdown NAV $6.00 $5.00 $4.00 $4.00 $3.00 $1.69 $3.00 $2.00 $4.25 $2.00 $1.00 $2.54 $2.56 $1.00 $0.00 Current Price Target Price NAV + Upside $0.00 Source: NBF, Company Reports

6 Page 6 Financial & Operating Summary - Spartan Energy (SPE) Stock / Risk Rating OP / AA Current Share Price $2.54 Target Price $ Wk. High / Low $3.65 / $2.40 Yield 0.0% Market Cap ($mln) $1,398 Total Return 67% Enterprise Value ($mln) $1,613 Production Mix E 2017E 2018E Core Assets Oil & NGLs bbls/d 5,527 8,391 10,792 19,425 22,268 Heavy bbls/d Natural Gas mmcf/d Total BOE/d (6:1) boe/d 5,899 8,866 11,748 21,080 24,165 % Natural Gas % 6% 5% 8% 8% 8% Growth Absolute % 50% 33% 79% 15% PPS % 24% 8% 14% 15% DAPPS % 24% 0% 28% 22% Production Growth BC AB SK 30 Production Absolute Growth PPS Growth DAPPS Growth SPE Properties mboe/d Western Sask Viking E 2017E 2018E 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Netbacks E 2017E 2018E Comparative Metrics 2017E 2018E Revenue $/boe $80.74 $47.80 $43.88 $60.01 $61.53 SPE Peer Avg. SPE Peer Avg. Hedging -$4.06 $0.00 -$0.05 $0.00 $0.00 EVDACF 6.1x 6.4x 4.8x 5.3x Royalties -$ $7.39 -$6.59 -$9.30 -$9.54 EV/BOE/d $72,175 $70,208 $58,364 $62,514 Op. Costs -$ $ $ $ $16.00 EV/2P $36.27 $14.66 $33.62 $12.83 Transportation $0.00 $0.00 $0.00 -$1.20 -$1.20 NAV $2.56 Operating Netback $/boe $43.79 $23.18 $20.43 $33.51 $34.79 P / NAV 1.0x 0.9x G&A -$2.59 -$1.72 -$1.69 -$1.30 -$1.13 Interest -$1.36 -$0.98 -$0.89 -$1.12 -$0.37 Dividend Yield 0.0% 3.2% 0.0% 3.2% Tax $0.00 $0.00 $0.00 $0.00 $0.00 D/CF 0.5x 1.2x 0.0x 0.8x Other $0.00 $0.00 $0.00 $0.00 $0.00 Total Net Payout 61% 81% 62% 77% Cash Flow Netback $/boe $39.85 $20.48 $17.85 $31.10 $33.28 DAPPS Growth 28% 11% 22% 12% Cash Costs -$ $ $ $23.36 Cash Flow Margin 52% 55% 54% 57% Cash Costs (Ex. Hedging) $/boe -$ $ $ $ $28.24 CF Margin (Ex. Hedging) % 54% 43% 41% 52% 54% Decline Rate 24% 24% 24% 24% Capital Efficiency $20,250 $21,378 $23,250 $23,139 Financial Summary E 2017E 2018E FCF Profile Revenue $mln $174 $155 $189 $462 $543 Cash Flow $mln $86 $66 $77 $239 $294 $ x CFPS (diluted) $0.36 $0.23 $0.22 $0.43 $0.53 DPS (basic) $0.00 $0.00 $0.00 $0.00 $0.00 $300 Capital Expenditures $mln -$97 -$67 -$76 -$145 -$ x (Acquisitions) / Dispositions -$155 -$2 -$779 $0 $0 Total -$252 -$68 -$855 -$145 -$183 $200 Dividends $mln $0 $0 $0 $0 $0 2.0x DRIP $mln $0 $0 $0 $0 $0 FREE CASH FLOW $mln -$11 $0 $1 $94 $111 $ x DRIP Participation % 0% 0% 0% 0% 0% $0 Dividend Payout 0% 0% 0% 0% 0% 1.0x Capex Payout 113% 100% 99% 61% 62% -$100 Total Payout 113% 100% 99% 61% 62% Total Net Payout 113% 100% 99% 61% 62% -$ x Net Debt $mln $86 $86 $215 $120 $9 D/CF 1.0x 1.3x 2.8x 0.5x 0.0x Cash Flow Capex Dividend DRIP FCF D/CF -$ x Credit Facility $mln $250 $150 $350 $350 $ % Drawn 30% 57% 62% 35% 4% Quarterly CFPS (diluted) E 2017E 2018E Reserves E Q1 $0.03 $0.05 $0.03 $0.10 $0.13 Q2 $0.10 $0.08 $0.05 $0.11 $0.13 Volume % mmboe % mmboe % mmboe % mmboe Q3 $0.10 $0.05 $0.05 $0.11 $0.13 PDP 660% 10 40% 16 35% 15 41% 44 Q4 $0.10 $0.06 $0.08 $0.12 $0.14 Proved 996% 15 65% 26 58% 24 63% 69 Annual $0.36 $0.23 $0.22 $0.43 $0.53 2P 100% 2 100% % % 109 Quarterly Production (boe/d) E 2017E 2018E Growth Q ,402 9,683 21,080 24,165 PDP nm 54% -7% Q2 6,396 8,710 9,080 21,080 24,165 Proved nm 66% -5% Q3 7,399 8,042 12,429 21,080 24,165 2P nm 2461% 6% Q4 8,844 9,319 15,750 21,080 24,165 RPS (2P) nm 96% -13% Annual 5,899 8,866 11,748 21,080 24,165 DARPS (2P) -15% -13% Commodity Price Assumptions E 2017E 2018E Replacement Costs WTI Crude oil (US$/bbl) $93.01 $48.74 $43.22 $57.50 $60.00 FD&A Ex. FDC (PDP) nm $81.27 $32.41 WCS(C$/bbl) $73.49 $35.70 $39.07 $55.10 $56.00 FD&A Ex. FDC (Proven) nm $23.58 $33.55 Canadian Par (C$/bbl) $94.43 $57.35 $52.71 $71.70 $73.40 FD&A Ex. FDC (P+P) nm $15.66 $12.20 NYMEX gas (US$/mcf) $4.42 $2.63 $2.55 $3.00 $3.25 AECO Basis (US$/mcf) $-0.44 $-0.62 $-1.01 $-1.00 $-0.90 Recycle Ratio Ex. FDC (PDP) nm 0.5x 0.6x AECO gas (C$/mcf) $4.38 $2.56 $2.05 $2.70 $3.10 Recycle Ratio Ex. FDC (Proven) 1.8x 1.7x 0.6x Exchange Rate (US$/C$) $0.91 $0.78 $0.76 $0.76 $0.77 Recycle Ratio Ex. FDC (P+P) 0.1x 2.5x 1.7x Source: Company reports, Bloomberg, NBF estimates (Cdn$ mlns) 15.0x 12.5x 10.0x 7.5x 5.0x 2.5x 0.0x +/- 1 Std. Dev. LT Avg NBF 2017e SPE Peer Avg. D/CF

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8 Page 8 NBF quarterly ratings summary and the total ratings by month can be found on our website under Research and Analysis/Equities/About NBF Research/Quarterly Ratings Summary (link attached) The NBF Research Dissemination Policy is available on our website under Legal/Research Policy (link attached) Click on the following link to see the company specific disclosures Click on the following link to see National Bank Financial Markets Statement of Policies If a company specific disclosure is not found herein for a listed company, NBF at this time does not provide research coverage or stock rating for the company in question. ADDITIONAL COMPANY RELATED DISCLOSURES Disclosures for Dan Payne s Company Coverage Disclosures for Brian Milne s Company Coverage Disclosures for Travis Wood s Company Coverage AAV 6,7,10 BTE 2,3,4,5,6,7 ARX 6,7 BIR 2,3,4,5,6,7 GXE 2,3,4,5,6,7 BNP 2,3,4,5,6,7 BNE 6,7 GXO CPG 2,3,4,5,6,7 BXE 2,3,4,5,6,7 NBZ 6,7 ERF 2,3,4,5,6,7 CJ 2,3,4,5,6,7 * PGF 6,7 FRU 2,3,4,5,7 CKE 6,7,10 POU 6,7 PEY CR 6,7 RMP 2,3,4,5,6,7 PSK 2,3,4,5,6,7 KEL 2,3,4,5,6,7 TET VET 6,7,10 LXE 6,7 VII 2,3,4,5,6,7 MQX 6,7 ** WCP 2,3,4,5,6,7 NVA 6,7 PNE 2,3,4,5,6,7,10 PPY RRX 6,7 SGY 2,3,4,5,6,7 SPE 2,3,4,5,6,7 SRX 6 TOG 2,3,4,5,6,7 TOU 2,3,4,5,6,7 TVE 2,3,4,5,6,7,12 LEGEND FOR COMPANY RELATED DISCLOSURES: 2 National Bank Financial Inc. has acted as an underwriter with respect to this issuer within the past 12 months. 3 National Bank Financial Inc. has provided investment banking services for this issuer within the past 12 months. 4 National Bank Financial Inc. or an affiliate has managed or co-managed a public offering of securities with respect to this issuer within the past 12 months. 5 National Bank Financial Inc. or an affiliate has received compensation for investment banking services from this issuer within the past 12 months. 6 National Bank Financial Inc. or an affiliate has a non-investment banking services related relationship during the past 12 months. 7 The issuer is a client, or was a client, of National Bank Financial Inc. or an affiliate within the past 12 months. 8 National Bank Financial Inc. or its affiliates expects to receive or intends to seek compensation for investment banking services from this issuer in the next 3 months. 9 As of the end of the month immediately preceding the date of publication of this research report (or the end of the second most recent month if the publication date is less than 10 calendar days after the end of the most recent month), National Bank Financial Inc. or an affiliate beneficially own 1% or more of any class of common equity securities of this issuer. 10 National Bank Financial Inc. makes a market in the securities of this issuer, at the time of this report publication. 11 A partner, director, officer or research analyst involved in the preparation of this report has, during the preceding 12 months provided services to this issuer for remuneration other than normal course investment advisory or trade execution services. 12 A research analyst, associate or any other person (or a member of their household) directly involved in preparing this report has a financial interest in the securities of this issuer. 13 A partner, director, officer, employee or agent of National Bank Financial Inc., is an officer, director, employee of, or serves in any advisory capacity to the issuer. 14 A member of the Board of Directors of National Bank Financial Inc. is also a member of the Board of Directors or is an officer of this issuer. 15 A redacted draft version of this report has been shown to the issuer for fact checking purposes and changes may have been made to the report before publication. * National Bank Financial Inc. acted as financial advisor to Craft with respect to the Cardinal Disposition. Where Craft Oil Ltd. has entered into a definitive agreement with Cardinal Energy Ltd. to sell assets for $41 million, consisting of approximately $4.0 million in cash and approximately 4.0 million common shares of Cardinal at a deemed price of $ per Cardinal Share.