Pure-Play Pipestone. Condensate, Growth, Achievement. Aug 2017 TSX-V:BBI

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1 Pure-Play Pipestone Condensate, Growth, Achievement Aug 2017 TSX-V:BBI

2 A Confluence of Positive Factors BLACKBIRD LIFE CYCLE MARKET CONDITIONS BLACKBIRD VALUE PROPOSITION Social License LARGE, CONTIGUOUS LAND BLOCK 125 GROSS SECTIONS Alberta Jurisdicti on CASH ON HAND $71.8 MM DELINEATED DRILLING SUCCESS Area Activity EGRESS AND MARKET ACCESS Operating History = Primary value drivers = Secondary value drivers 2

3 Blackbird Mitigates the Macro Issues Industry continues to face increasing challenges making it more difficult for domestic companies to attract capital and sustain material capital appreciation Cons Oil prices lack visibility and direction Canada, BC Government has moved to the left Carbon tax cost burdens, regulatory red tape Uncertainty over major energy infrastructure BC s NDP-Green Alliance scrutinizes energy & water use Unique NAV based valuation Social license (>100K ) ) Superior economics (>80% IRR) combat cost creep Negotiating egress and takeaway Grande Prairie THE fastest growing in Alberta Uniquely positioned as an Alberta pure-play AB s new United Conservative Party merges Alberta has never looked so (relatively) appealing! Pros Financial Post, July 20,

4 Montney Land is Scarce; Activity is Rich PETRONAS Progess $5,500 MM INDOIL Petronas $1,000 MM Black Swan Carmel Bay $200 MM BC CNRL Barrick $173 MM Birchcliff Encana $625 MM Sanling Paramount $150 MM Painted Pony UGR $277 MM Tourmaline Shell $1,369 MM Sasol Talisman $1,050 MM Pengrowth Monterey $375 MM Progress Talisman $1,500 MM Tourmaline Huron $258 MM ARC Storm $680 MM Mitsubishi Encana $2,900 MM Kogas Encana $565 MM AB Kelt Capio $165 MM Paramount Apache (1) $1,238 MM 7 Gen Paramount $1,900 MM Tourmaline Cabot $102 MM Enerplus RMP $114 MM Paramount Trilogy $1,070 MM ExxonMobil Celtic $3,071 MM ORLEN Kicking Horse $356 MM Contact Donnycreek $180 MM Notes: (1) Calculated as the combination of cash acquisition price and estimated assumed liabilities based on industry research detailed on page 8 of the Blackbird corporate presentation 4

5 All Eyes on the Pipestone Corridor The Highest Value Montney A&D Directly Offsets Blackbird Seven Generations acquisition of Paramount Kakwa Sets a new high for undeveloped Montney land at $6.1 MM per section Paramount acquisition of Apache Montney Pipestone Montney upside outweighs spending $460 MM and assuming >$775 MM in liabilities ORLEN acquisition of Kicking Horse The ultra liquids-rich Montney continues to lure new international capital investment at a premium Contact acquisition of Donnycreek Juniors merged to achieve the scale required to lure a larger buyer to better finance efficient development Industry Activity is Exploding in the Pipestone Corridor Industry plans a major infrastructure investment at Pipestone through 2020 Five sour processing facilities & various condensate pipelines already sanctioned or in FEED stages E&P s require scale to strike a long term take-or-pay with midstreamers consolidation is upcoming NuVista plans >120 wells on 11 sections three miles west of Blackbird stacked pay boosts full-cycle economics Encana s Cube development reduces costs and improves economic recovery factors The Cube will become the industry standard for stacked pay development, Doug Suttles, Encana, Pres. & CEO Blackbird Pipestone One of the Most Actively Drilled Corridors in Canada New Blackbird drill to the north will validate the northern Wapiti lands Pipestone has been actively licensing and spudding wells Three non-operated Blackbird wells extend the fairway to the east Velvet s eastern-most well confirms the volatile oil window is prospective, validating all of Blackbird s lands Paramount s acquisition of Apache Montney for $460 MM and $775 MM in liabilities 5

6 No Quality Montney Assets For Sale Sydco 1,223 boe/d Corporate BIR Worsley Assets 3,600 boe/day Charlie Lake CVE Pelican Lake Assets 20,100boe/d Heavy Oil Canadian Spirit 166 boe/day Dry Montney Gas Cequence Assets 1,715 boe/day Dry Gas Rife Kakwa Assets 2,000 boe/day Montney Gas CVE Suffield Assets 26,400 boe/d Dry Gas Insignia 2,403 boe/d Montney Gas NAL Assets 2,442 boe/d Dry Gas Imaginea 5,500 boe/day Conventional Medium Oll Tangle Creek 5,800 boe/d Dunvegan BNP Assets 5,417boe/d Dry Gas Spry2 628 boe/d Viking CPG Sounding Lake Assets 1,500 boe/d Conventional Medium Oll CR Assets 2,063boe/d Heavy Oil Avalon 268 boe/d Heavy Oil Federated Co-op Assets 5,279 boe/d Conventional Oll CVE Palliser Assets 53,000 boe/day Conventional Medium Oll CVE Weyburn Assets 1,500 boe/day Conventional Oil Note: Only corporate deals / assets with > 1,000 boe/d are shown 6

7 The Pipestone Corridor Intense Activity Encana 2-15, Upper, Cum. TD: 2.1 Bcf, 32 Prod. Mths* Encana 14-1 Pad, I.P. 2,000 Boe/d, (56% Condensate) ** Oct 5, 2016 Encana 12-25, Upper, Cum 3.3 Bcf in 24 Prod. mths* Encana, Upper, 02/5-26, cum 1.8 Bcf in 9.2 Prod. mths* Drilled Encana 1-19, 02/1-19, 1-3 & 8-3, Upper Pipestone Upper, 72 hr Test 3.6 MMcf/d & 1000 Bbls condensate/day* CNRL 13-7, Middle 299 Bbls/MMcf, (3) Drilled & 14-4 Montney Hz Licenced NuVista Key Wells 4 Middle Montney Hz with Max 1,635 Boe/d 2 Upper Montney, Max 146 Bbls/MMcf of C5+ 1 Lower Montney Strat Test with CGR of 133 ** Jan 2017 CNRL Bbls/MMcf (10 mths production) Encana Sinopec NV A NuVista Pipestone Bbls/MMcf (3) Kelt Hz Lic. Sinopec Drld 4-32 BBI CNRL Drld 4-28 BBI Pipestone 5 drilled Kelt Shell Paramount Shell Kelt Lands, Jan 18, 2017 CIOC Velvet RMP BBI 2-20 Middle: 1,768 Boe/d (6.8 MMcf/d, 641 Bbls/d liquids), Last 24 hrs of Prod. Test BBI 5-26 Upper, 0.9 Mmcf/d, 341 Bbls/MMcf liquids (48 hr Prod. Test) BBI 6-26 Middle, 900 1,050 Boe/d Calculated Test Rate (133 Bbls/MMcf liquids) **Mar 4, 2015 BBI W6, 379 bbls/d Oil, See Slide 11 for Test Data BBI Non-Operated Wells POU (2) 02/1-16, Middle CGR: 178 (60 hr Prod Test*) POU 9-23 Test, (CGR 187*) 10.6 mmcf/d, 2,000 bbls/d,**nov 3, 2016 Shell 61 Montney Hz Licenced (60% increase from 2016), 43 Drilled (39% increase from 2016) Mid Montney W6 IP 180: CGR Avg MMcf/d Notes: *Public data within Montney Resource Play as of Aug 8, 2017, Prod. Mths is actual producing hours / 720 hours per month ** Corporate Presentations; Represents analogous information. See Analogous Information in Advisories. (2) Paramount announced the acquisition of these assets on July 6, 2017 and the transaction is expected to close in August, (3) unknown number of hours, condensate and gas volumes only in first month reported production Note: CNRL 12-2 well has 10 months reported production, but no breakdown of hours per month 7 TSX-V: BBI

8 The Pipestone Liquids-Rich Corridor BBI Mapping of Upper Montney Condensate Corridor (2) Encana s Mapping of Liquids-Rich Corridor (1) BBI Mapping of Middle Montney Condensate Corridor (2) ~63 Gross (~57.8 net) sections in Encana s Super Condensate Corridor (2) Source: (1) Encana May 17, 2016 Montney Investor Event Presentation (slide 49); (2) Internal mapping by Blackbird; Represents analogous information. See Analogous Information in Advisories. 8

9 The Pipestone Liquids-Rich Corridor Four distinct intervals A A m F t Doig/Upper Montney Upper Montney Middle Montney Lower Montney A W W6 02/ W W6 7W6 BBI 2-20 BBI 6-26 ECA 4-9 CNOR BBI 02/2- BBI 2-20 BBI 5-20 East 26 A Gamma Ray (Green), Bulk Density (Gray) Note: Sourced from Accumap. Potential Turbidites in Lower Montney 9

10 Blackbird s Pipestone Resource Blackbird s Lands with Proved Reserves Booked Blackbird s Lands with Proved + Probable Reserves Booked Blackbird s Lands with Contingent Resources 8 sections booked (7.3% of land booked) 1P Reserves: 30,525 mboe 1P NPV10: $204 million 12 sections booked (11.0% of land booked) 2P Reserves: 59,169 mboe 2P NPV10: $455 million ~21.5 sections booked 19.7% of land booked 2C Resources: 53,818 mboe 2C NPV10: $437 million 3C Resources: 64,675 mboe Reserves and Resources Booked in Only Two of Four Highly Prospective Intervals Note: (1) From Blackbird s March 1, 2017 reserve report prepared by Blackbird s independent reserves evaluator, McDaniel and Associates Consultants Ltd. 3C NPV10: $547 million 10

11 RMP BBI PONY DEE BIR CKE LXE CR SRX VII AAV TOU NVA POU KEL ARX P / RENAV RENAV Comparables Blackbird is valued at one of the greatest discounts to its RENAV within the Montney peer group RENAV Comparables Company RMP BBI PONY DEE BIR CKE LXE CR SRX VII AAV TOU NVA POU KEL ARX Price ($/sh.) $0.58 $0.33 $3.88 $1.09 $5.64 $0.31 $1.86 $3.74 $3.92 $17.73 $8.42 $25.38 $6.48 $21.02 $6.05 $16.44 PDP NPV10 (1) $77 $33 $830 $128 $1,877 $27 $10 $459 $317 $1,991 $721 $3,962 $388 $1,224 $423 $2,585 Net Debt (2) $25 ($74) $240 $74 $664 ($24) ($49) $260 $98 $1,592 $159 $1,695 $138 $439 $147 $445 PDP NAV ($MM) $52 $107 $590 $54 $1,213 $51 $59 $199 $219 $399 $562 $2,267 $250 $785 $276 $2,140 Current EV ($MM) $113 $168 $865 $275 $2,167 $43 $324 $810 $571 $7,829 $1,717 $8,527 $1,257 $2,671 $1,210 $6,255 Value Ascribed to Land ($MM) $36 $135 $34 $147 $290 $16 $314 $351 $254 $5,838 $996 $4,565 $869 $1,447 $787 $3,670 Implied Value ($MM/section) $0.2 $1.2 $0.1 $1.3 $0.7 $0.3 $1.7 $0.8 $1.6 $7.3 $5.6 $12.0 $4.7 $2.0 $1.2 $3.1 Montney Sections ,200 Undeveloped Locations 500 1,301 2, , ,600 1,100 14, , ,602 NPV/Well ($MM/well) $5.9 $6.7 $6.7 $8.9 $4.8 $3.1 $6.7 $4.0 $4.8 $7.0 $6.4 $7.5 $6.6 $5.3 $4.5 $4.3 Risked Exploration NAV (RENAV) ($MM) $576 $1,343 $3,156 $854 $5,354 $235 $949 $1,269 $902 $11,000 $2,564 $11,232 $1,499 $2,985 $1,358 $5,519 Shares Outstanding (MM) (3) Per Share ($/sh.) (3) $3.82 $1.80 $19.60 $4.63 $20.09 $1.09 $4.73 $8.63 $7.47 $31.27 $13.85 $41.73 $8.67 $28.11 $7.73 $15.62 Price / RENAV (x) 0.2x 0.2x 0.2x 0.2x 0.3x 0.3x 0.4x 0.4x 0.5x 0.6x 0.6x 0.6x 0.7x 0.7x 0.8x 1.1x 1.2x 1.0x 0.8x 0.6x 0.4x 0.2x 0.0x (1) As per 2016 year end reserve reports (2) Net debt as per most recent disclosures adjusted for Cormark corporate finance estimates (3) Assumes basic shares outstanding 11

12 EUR (Mboe) Gas Rate (Mcf/d) Condensate Rate (Bbls/d) Blackbird Expected Type Curves (1) 3,000 2,500 2,000 1,500 1, , Raw Gas Type Curve Raw Gas Type Curve Production Month Raw Expected Ultimate Recovery Raw Expected Ultimate Recovery Blackbird EUR: 884 mboe Expected Btax IRR: ~60% Expected 2P NPV10%: $7.1 million Wellhead Condensate Type Curve Wellhead Condensate Curve Production Month Encana s Pipestone Type-Curve (2) (3) Type Well Metrics Encana Net (2) (3) Atax IRR (%) 120 Production Month Note: (1) All Blackbird type curve, EUR, IRR reserves and NPV10% data from Blackbird s March 1, 2017 reserve report prepared by Blackbird s independent reserves evaluator McDaniel and Associates Consultants Ltd., see Advisories. (2) From slide 21 of Encana April 2017 Montney update. (3) Represents analogous information. See Analogous Information in Advisories. 12

13 IP 30, IP60, IP90 IP30 RESULTS (1) IP60 RESULTS (1) IP90 RESULTS (1) Well Montney Interval Raw Gas (2) Sales Gas (3) Condensate (3) NGLs (3) Total Liquids (3) Total Sales (3) CGR C5+/Raw (mmcf/d) (mmcf/d) (bbls/d) (bbls/d) (bbls/d) (boe/d) (bbls/mmcf) W6 Upper W6 Middle / W6 (4) Upper W6 Middle Notes:(1) First 720 hours of production excluding third party gas processing plant shut-downs of approximately 33 days and other periods where the wells were shut-in. (2) Based on field-estimated production data. (3) Based on actual sales data. (4) Based on camera run performed, management estimates that this well was producing through a limited number of stages due to mechanical issues experienced in the wellbore during completion operations. Management is unable to determine the number of producing stages. Management believes that these results may not be indicative of the well s production potential. Well Montney Interval Raw Gas (2) Sales Gas (3) Condensate (3) NGLs (3) Total Liquids (3) Total Sales (3) CGR C5+/Raw (mmcf/d) (mmcf/d) (bbls/d) (bbls/d) (bbls/d) (boe/d) (bbls/mmcf) W6 Upper W6 Middle W6 Middle Notes:(1) First 1,440 hours of production excluding third party gas processing plant shut-downs of approximately 33 days and other periods where the wells were shut-in. (2) Based on field-estimated production data. (3) Based on actual sales data. Well Montney Interval Raw Gas (2) Sales Gas (3) Condensate (3) NGLs (3) Total Liquids (3) Total Sales (3) CGR C5+/Raw (mmcf/d) (mmcf/d) (bbls/d) (bbls/d) (bbls/d) (boe/d) (bbls/mmcf) W6 Upper W6 Middle Notes:(1) First 2,160 hours of production excluding third party gas processing plant shut-downs of approximately 33 days and other periods where the wells were shut-in. (2) Based on field-estimated production data. (3) Based on actual sales data. 13

14 2-20 (Surface 11-9) Eastern Step-Out Test Reserves (1) Contingent Resources (1) Montney Interval Average Flowing Casing Pressure Raw Gas Oil Total Combined Production Well (kpa) (2) (mmcf/d) (3) (bbls/d) (3) (boe/d) (3) W6 (1) (4) Middle 2, Notes:(1) Based on camera run performed, management estimates that this well was producing through a limited number of stages due to mechanical issues experienced in the wellbore during completion operations. Management is unable to determine the number of producing stages. Management believes that these results may not be indicative of the well s production potential. The 2-20 (surface 11-9) well flowed on clean-up for a total of 111 hours. (2) The 2-20 (surface 11-9) well produced through a 14.3 millimeter choke at the beginning of the final 24 hour test period and a 25.4 millimeter choke at the end of the final 24 hour test period. At the end of the 24 hour test period, the flowing casing pressure was 2,205 kpa. (3) The 2-20 (surface 11-9) well average rates over the final 24 hours of the test. (4) The 2-20 (surface 11-9) well produced an average of approximately 1,399 bbls of water per day over the final 24 hours of the 111 hour production test. Note: (1) From Blackbird s March 1, 2017 reserve report prepared by Blackbird s independent reserves evaluator, McDaniel and Associates Consultants Ltd. 14

15 Development and Delineation Program Northern Multi- Interval Delineation Block (Tie-In ~2019) Drilled/Awaiting Completion W6 (100% WI) Spudded Aug 6, 1-20 (100% WI) Drilled and Tested Non- Operated #1, (17.9% WI) Western Development Block (Tied-In) Drilled/Awaiting Completion 102/6-26 (100% WI) Drilled &Completed, Non-Operated Well #2, (37.5% WI) Eastern Multi- Interval Delineation Block (Tie-In ~Q1 2018) Drilled & Completed, Non-Operated Well #4, 9-20 (20% WI) Drilled & Completed Non-Operated Well #3, 3-17 (20% WI) Completed Well Location U. Montney M. Montney 15

16 Current Well Summary Well Operated or Non- Operated Working Interest (%) Montney Interval Measured Depth (meters) Lateral Length (meters) W6 Operated 100 Middle 4,734 2,052 Producing W6 Operated 100 Upper 4,621 1,951 Producing W6 Operated 100 Middle 4,660 2,008 Producing 102/ W6 Operated 100 Upper 4,598 2,049 Producing Status W6 Operated 100 Upper 4,120 1,500 To be Recompleted in Aug/Sept W6 Operated 100 Middle 4,885 2,256 To be Recompleted Mid Sept W6 Non-Operated 17.9 Upper 5,350 2,861 Drilled, Completed and Tested W6 Non-Operated 37.5 Middle 5,615 3, W6 Non-Operated 20 Middle 5,320 2, W6 Non-Operated 20 Middle 5,600 3,000 Drilled & Completed, to be Tested Near-Term Drilled & Completed, to be Tested Near-Term Drilled & Completed, to be Tested Near-Term 02/ W6 Operated 100 Upper Drilled/Awaiting Completion in August, 2017 (14-14 Pad) W6 Operated 100 Upper Drilled/Awaiting Completion in August, 2017 (11-15 Pad) W6 Operated 100 Upper Spudded Aug 6, 2017 (10-8 Pad) 16

17 2017 Moving Forward with a Clear Path Continued roll-out of Stage to garner international attention Development Reinforces the team as value creators Recompletion 02/6-26 Completion and On-Stream Completion and On-Stream New/enhanced GHA(s) Blackbird positioned to commit to multiple non-binding GHAs in 2H Recompletion 02/2-20 On-Stream Spud, Completion and On-Stream Spud, Completion and On-Stream Validate the strategic appeal of Stage and the integrity of the reservoir rock JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER INCREASING CORRIDOR MOMENTUM Significant industry well activity Five additional sour gas processing facilities and/or expansions planned 17

18 Meters Consistent Decrease in Drill times BlackBird Days vs. Depth 46.3 to 21.4 days BlackBird HZ Elm W6 BlackBird HZ Elm W6 Blackbird HZ Elm W6 Blackbird 102 HZ Elm W6 Blackbird HZ Elm W6 Blackbird HZ Elm W6 Blackbird HZ Elm 102/ W6 Blackbird HZ Elm W in 25.3 Days, D $2.6 mm 5-26 in 36.6 Days, D $4.4 mm 2-20 in 24.9 Days, D $3.3 mm 6-26 in 46.3 Days, D $5.6 mm /2-20 in 21.4 Days, D $2.6 mm W6 in 31.3 Days, D $3.3 mm 2-28 in 23.0 Days, D $2.5 mm 102/6-26 in 28.3 Days, D $2.6 mm Days 18

19 Driving Innovation with Stage Completions Blackbird owns a 10% indirect interest in Stage Completions Inc. ( Stage ) Stage Completions Inc. is a downhole technology company focused on providing innovative completion solutions SC Bowhead II: Collet-activated fracturing sleeve system designed for cased hole and open hole applications Enhanced Gen 4. XS System Benefits to BBI Through Investment System at cost plus an admin fee Preferential access Participant in disruptive and leading edge technology Stage s Bowhead II Technology is designed to achieve the following benefits: Pinpoint Fracturing Pinpoint fracturing Higher Rates and Tonnages Reduced Risk Longer Laterals and Increased Stages Longer Laterals and Increased Stages Asset in the Wellbore Asset in the Wellbore Reduced Cost (Drilling and Completions) Blackbird will use Generation 4 XS System on 102/6-26 well, to be completed in August, 2017 Reduced Cost 19

20 Completion Optimization 20 Days 20 Days Completion Program #1 (5-26 and 6-26) Plug & perf cluster Slickwater ~2,700 tonnes of proppant 1.4 tonnes / meter of proppant 40 meter cluster spacing Completion Program #2 (2-20) Sliding Sleeve CO2 (largest in N.A.) ~2,223 tonnes of proppant 1.1 tonnes/ meter proppant 28.5 meter spacing Stage Completions Sliding Sleeve Sub 5 Day Programs BBI 2017 Version Stage Slickwater ~2.0 tonnes / meter proppant >4,000 tonnes Higher Tonnage + Reduced Pump Time = Increased EUR and NPV 20

21 Value Delineation Curve / Acceleration Value $260 mm $2 mm BBI: net sections wells in corridor CGR s > 300 Bbls/MMcf (1) D&C $10mm $5.5mm Innovation: Stage NPV EUR 3 years 2 years <1 year Near - Term High Risk Notes: (1) Based on regional test data. Time Initial Production Ramp Up BBI Pilot Plant 10 mmcf/d Non-Binding GHA $84.8 mm Raised Reserve Build The Next Steps High Impact Development and Delineation Program Increased Processing / Takeaway Production Growth Through Expanded Egress Continued Land Aggregation Lower Risk 21

22 Transformation 2016 to Aug 2017 What are we going to accomplish? D&C an Upper Montney well in Q (sub 24 day drill) + further delineation by Blackbird and peers Add additional acreage in the Elmworth Super Condensate corridor Develop Infrastructure: Battery, and gathering system commencement Q Utilize Stage completions to become a leader in innovative completions Maintain balance sheet strength Move to Cash Flow in Q What did we accomplish? Drilled Upper Montney BBI 102/ W6 in 21.4 days, 80 wells drilled in the Pipestone Corridor since Jan 1, 2017, 10 of which Blackbird drilled (6) or participated in (4) Increased Elmworth land to 125 Gross (108.9 Net) sections (80,000 acres) low cost approach continued (added gross, net sections) 30% increase in net sections January 11, 2017 Blackbird announced that it completed the construction of its 100% owned and operated Pipestone / Elmworth Facility and Gathering System Moved to Generation 4 Bowhead system Working capital of $71.8 million at April 30, 2017 $3.3 million during the three months 22 ended April 30, 2017;

23 Corporate Social Responsibility Corporate Social Responsibility is critical to gain social license to operate in any community Tree Planting Program: focused on reclaiming boreal forest and replacing trees we take down; Planted 101,579 trees to date! Thank you Cormark, Pareto, TD, BMO, Scotia, Laurentian, & Jett Capital Goal: 200,000 trees Movement to reduce flare volumes Reduction in water usage through technology Boring vs. cutlines Mitigation of traffic impact Extensive community consultation Noise mitigation Our plan gives us a significant competitive advantage as we develop our resource this is also the right way to do business 23

24 Corporate Snapshot Common Share Trading Symbol Warrant Trading Symbol TSX-V: Share Price (06/30/2017) BBI.WT $0.36 Shares Basic Fully Diluted Insider Holdings (1) Market Capitalization Cash (2) 52 Week Range (06/30/2017) Gross Acreage Net Acreage Notes: (1) Includes shares owned in third party portfolio that is managed by board member. (2) At April 30, 2017, unaudited. ~745 mm ~963 mm ~18% ~$268 mm ~$71.8 mm $ $ sections (80,000 acres) sections (69,696 acres) 24

25 Appendix: The Team Leadership Garth Braun Chairman, CEO & President Finance Operations Geology Ron Schmitz Interim CFO and Director Travis Belak, CA Senior Financial Accountant Jeanette Vanderveen Operational Accountant Laura Shandro Production Accountant Don Noakes, P.Eng VP Operations Paul Goodman Manager, Completions & Production David Mills, P.Eng Manager, Facilities Engineering Brad Peterson Marketing Robert Szumilas Supervisor, Drilling & Completions Craig Wiebe, P.Geo VP Exploration Ralph Allen, P.Geo VP Geosciences Land Josh Wylie VP Land John Boone Landman Arlene Furjanic Senior Land Analyst 25

26 Appendix: Management Name & Title Garth Braun Chairman, CEO and President Don Noakes, P.Eng. Vice President Operations Craig Wiebe, P.Geol. Vice President Exploration Ron Schmitz Interim Chief Financial Officer and Director Ralph Allen, P.Geo. Vice President Geoscience Paul Goodman Manager, Completions David Mills Manager, Facilities Engineering Joshua Wylie Vice President, Land Experience Garth Braun is a seasoned oil and gas executive with over 13 years of oil and gas experience combined with 30 years of diversified business experience in finance and real estate. Over the past several years, Mr. Braun has led Blackbird Energy Inc. through the successful acquisitions of two E&P companies, the divestiture of non-core Montney assets, the accumulation of its Montney land at Elmworth and the drilling of Blackbird's Elmworth Montney wells. Mr. Braun was instrumental in raising approximately $165 million of capital for Blackbird Energy Inc. Mr. Braun was previously the Chairman and Chief Executive Officer of an international oil and gas company, an investment banker and a principal of a private real estate development company that completed over $1 billion in real estate development. Mr. Braun is also a founder and director of Stage Completions Inc., an innovative downhole completions company. Don has over 30 years of experience in drilling, completions and exploitation focused on unconventional resource plays. Don was previously responsible for multi-rig drilling and completion programs targeting unconventional reservoirs in the Alberta Montney. Don has been part of teams at Murphy Oil, Mosaic Energy, APL Oil and Gas, Bow Valley Energy and Culane Energy. Craig has over 20 years of experience in both exploration and development, the majority targeting unconventional resources plays. Craig was previously involved with establishing a dominant position in a multi-tcf gas play for a major oil and gas E&P company. Craig has been part of teams at Encana, Amber, Grad and Walker, Standard Energy, Capio Exploration and Saguaro Resources. Mr. Schmitz is the Principal and President of ASI Accounting Services Inc., which has provided administrative, accounting and office services to public and private companies since July Mr. Schmitz has served as a Director and/or Chief Financial Officer of various public companies since 1997, and currently holds these positions with various public and private companies. Ralph is a Professional Geologist with over 35 years of experience in the Western Canadian Sedimentary Basin. Ralph was previously an educator on shale for companies such as Chevron, Shell, Marathon and Statoil globally and has worked for numerous E&P companies in Calgary. Paul has over 28 years of experience in stimulation and completions focused on unconventional resource plays. Paul was previously responsible for multipad completions programs and the business line aspect of fracturing operations targeting unconventional reservoirs in the Alberta Montney. Paul has been part of teams at Encana, Sanjel and Halliburton. David is a Professional Engineer with over thirty years of varied oil and gas experience. Prior to joining Blackbird, David was responsible for the design, construction and start-up of Mosaic Energy s Kakwa / Jayar 50 mmscfd sour and liquid stabilization gas plant, gathering system, and wellhead facilities. Prior to Mosaic Energy, David was responsible for the design, construction, start-up and expansion of Crew Energy s Septimus 60 mmscfd sweet gas plant, gas gathering system and wellhead facilities. Prior to these companies, David held senior positions with Canetic Resources, ConocoPhillips, Imperial Oil and Qatar Liquefied Gas Company. Joshua is a Petroleum Landman with over seven years of experience working with junior exploration and production companies. Joshua has been instrumental in assembling Blackbird s core Elmworth land position and was a key team member in the acquisition of a processing agreement for Blackbird s Elmworth Montney gas and a firm gas take away agreement in the Alliance pipeline to Chicago. Joshua is a member of the Canadian Association of Petroleum Landmen. 26

27 Appendix: Reserves Natural Gas Natural Gas Liquids (1) Total Oil Equivalent NPV 10% NPV 10% Reserves Category Mmcf Mbbls MBOE $000s $/BOE Proved Developed Producing 5, ,717 33, Proved Non Producing 2, , Proved Undeveloped (2) (3) 92,539 12,773 28, , Total Proved 99,766 13,898 30, , Probable Developed Producing 1, , Probable Non Producing , Probable Undeveloped (3) 89,834 12,892 27, , Total Probable 92,213 13,274 28, , Total Proved Plus Probable (4) (5) (6) (7) 191,979 27,172 59, , Contingent Resources Development Pending (Risked) (4) (6) (7) (8) (9) (10) (11) (12) 1C 135,188 18,659 41, , C 175,079 24,638 53, , C 212,160 29,315 64, , (1) Includes field condensate. (2) The Reserve Report contemplates 46 undeveloped 1P drilling locations. (3) The Reserve Report contemplates 70 undeveloped 2P drilling locations. (4) Drilling and completions cost per location contemplated in the Evaluations is $6 million. (5) Total undiscounted 2P capital expenditures contemplated in the reserve report amount to $515 million. (6) The Evaluations contemplate an expected ultimate recovery of 801,000 boe per undeveloped location (46% NGLs). (7) Blackbird has a 100% working interest in the lands associated with the reserves and contingent resources. (8) Blackbird expects to recover natural gas and NGLs. (9) See Forward-Looking Statements or Information and Additional Advisories on Slide 2 for a discussion regarding the risks and the level and uncertainty associated with contingent resources. (10) All of the contingent resources discussed above are located at the Company s Pipestone / Elmworth Montney project where ongoing development drilling is already occurring. (11) Project maturity subclass development pending is defined as contingent resources where resolution of the final conditions for development is being actively pursued (high chance of development). (12) Contingent resources for Pipestone have been estimated based on the continued drilling in Blackbird s active core asset and the associated pre-development study using established recovery technologies. The estimated cost to bring these contingent resources on commercial production is $562MM and the expected timeline is between 1 and 6 years. The specific contingencies for these resources are corporate commitment, development timing and uncertainty on additional required gas processing and takeaway capacity. 27

28 Advisories Forward Looking Statements or Information and Additional Advisories Certain statements included in this presentation constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information concerning Blackbird Energy Inc. ( Blackbird or the Company ) in this presentation may include, but are not limited to, statements or information with respect to: guidance, forecasts, and related assumptions; the potential value of Blackbird's assets in the context of the current Paramount/Appache transaction; present and future industry activity in the Pipestone Corridor; the attributes and potential of the Montney; the number of prospective Montney intervals on Blackbird s lands; Blackbird's valuation at one of the greatest discounts to its RENAV within the Montney peer group; expected type curves; capital spending and availability of cash; the cost reduction, and drilling and completion optimization derived from use of the Stage Completions Inc. Bowhead II technology and the other benefits of the Stage Completions investment including priority access to the technology and growth potential of the minority interest investment; proposed processing options, commodity pricing; costs associated with operating in the oil and natural gas business; Blackbird's plans for a high impact delineation and development program, continued land aggregation, production growth through egress and increased processing and take-away; and the ability of Blackbird's corporate social responsibility initiatives to provide a significant competitive advantage. In addition, references to reserves and resources are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Blackbird believes that the expectations reflected in such forward-looking statements or information are reasonable; however, undue reliance should not be placed on forward-looking statements because Blackbird can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this presentation, assumptions have been made regarding, among other things: the impact of increasing competition; the timely receipt of any required regulatory approvals; the ability of Blackbird to retain and obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of Blackbird to operate in a safe, efficient and effective manner; the ability of Blackbird to obtain financing on acceptable terms; the timing and costs of operating Blackbird's business; the ability of Blackbird to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters; and the ability of Blackbird to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Blackbird and described in the forward looking statements or information. These risks and uncertainties may cause actual results to differ materially from the forward looking statements or information. The material risk factors affecting Blackbird and its business are contained in Blackbird's Annual Information Form which is available at SEDAR at The forward looking statements or information contained in this presentation are made as of the date hereof and Blackbird undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this presentation are expressly qualified by this cautionary statement. Additional Advisories This presentation contains statistical data, market research and industry forecasts that were obtained from government or other industry publications and reports or based on estimates derived from such publications and reports and management s knowledge of, and experience in, the markets in which Blackbird operates. Government and industry publications and reports generally indicate that they have obtained their information from sources believed to be reliable, but do not guarantee the accuracy and completeness of their information. Often, such information is provided subject to specific terms and conditions limiting the liability of the provider, disclaiming any responsibility for such information, and/or limiting a third party s ability to rely on such information. None of the authors of such publications and reports has provided any form of consultation, advice or counsel regarding any aspect of, or is in any way whatsoever associated with, Blackbird. Further, certain of these organizations are advisors to participants in the Canadian oil and gas industry, and they may present information in a manner that is more favourable to that industry than would be presented by an independent source. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. While management believes this data to be reliable, market and industry data is subject to variations and cannot be verified due to limits on the availability and reliability of data inputs, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any market or other survey. None of Blackbird nor its affiliates has independently verified any of the data from third party sources referred to in this presentation or ascertained the underlying assumptions relied upon by such sources. The outlook and guidance in this presentation has been provided to assist investors in analyzing Blackbird's anticipated development strategies and prospects and it may not be appropriate for other purposes and actual results could differ from the guidance provided herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the information contained in this presentation. 28

29 Advisories Independent Reserves Evaluation Estimates of the Company's reserves and contingent resources and the net present value of future net revenue attributable to the Company's reserves and contingent resources as at March 1, 2017, are based upon the reports that were prepared by McDaniel & Associates Consultants Ltd. ( McDaniel ), dated March 24, The estimates of reserves and contingent resources provided in this document are estimates only and there is no guarantee that the estimated reserves or contingent resources will be recovered. Actual reserves and contingent resources may be greater than or less than the estimates provided in this in this document, and the differences may be material. The estimates of reserves or contingent resources and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Estimates of net present value of future net revenue attributable to the Company's reserves and contingent resources do not represent the fair market value of the Company's reserves and contingent resources and there is uncertainty that the net present value of future net revenue will be realized. There is no assurance that the forecast price and cost assumptions applied by McDaniel in evaluating Blackbird's reserves, contingent resources and prospective resources will be attained and variances could be material. There is uncertainty that it will be commercially viable to produce any portion of the contingent resources that are described herein. Note Regarding Oil and Gas Metrics Blackbird has adopted the standard of 6 Mcf:1 bbl when converting natural gas to boes. Condensate and other natural gas liquids ( NGLs ) are converted to boes at a ratio of 1 bbl:1 bbl. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based roughly on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the Company's sales point. Given the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio at 6 Mcf: 1 bbl may be misleading as an indication of value. Oil and Gas Definitions Terms that are used in this news release that are not otherwise defined herein are provided below: Low estimate contingent resources, referred to herein as 1C, is a classification of estimated resources described in the Canadian Oil and Gas Evaluation Handbook, which is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual quantities recovered will be greater or less than the best estimate. Resources in the best estimate case have a 90% probability that the actual quantities recovered will equal or exceed the estimate. Best estimate contingent resources, referred to herein as 2C, is a classification of estimated resources described in the Canadian Oil and Gas Evaluation Handbook, which is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual quantities recovered will be greater or less than the best estimate. Resources in the best estimate case have a 50% probability that the actual quantities recovered will equal or exceed the estimate. High estimate contingent resources, referred to herein as 3C, is a classification of estimated resources described in the Canadian Oil and Gas Evaluation Handbook, which is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual quantities recovered will be greater or less than the best estimate. Resources in the best estimate case have a 10% probability that the actual quantities recovered will equal or exceed the estimate. Contingent resources are the quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies are conditions that must be satisfied for a portion of contingent resources to be classified as reserves that are: (a) specific to the project being evaluated; and (b) expected to be resolved within a reasonable timeframe. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. There is no certainty that it will be commercially viable to produce any portion of the contingent resources or that Blackbird will produce any portion of the volumes currently classified as contingent resources. The estimates of contingent resources involve implied assessment, based on certain estimates and assumptions, that the resources described exists in the quantities predicted or estimated, as at a given date, and that the resources can be profitably produced in the future. The risked net present value of the future net revenue from the contingent resources does not represent the fair market value of the contingent resources. Actual contingent resources (and any volumes that may be reclassified as reserves) and future production therefrom may be greater than or less than the estimates provided herein. Developed producing reserves are those gross reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown. 29

30 Advisories Developed reserves are those gross reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non-producing. Gross means (i) in relation to the Company's interest in production or reserves, its "company gross reserves", which are the Company's working interest (operating or non-operating) share before deduction of royalties and without including any royalty interests of the Company; and (ii) in relation to wells, the total number of wells in which the Company has an interest. Net means, in relation to the Company's interest in wells or lands, the number of wells obtained by aggregating the Company's working interest in each of its gross wells. Probable reserves are those additional gross reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Proved reserves are those gross reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. In this presentation, proved plus probable reserves are also referred to as 2P reserves. Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on: (i) analysis of drilling, geological, geophysical and engineering data; (ii) the use of established technology; and (iii) specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned. Analogous Information Certain information in this document may constitute "analogous information" as defined in National Instrument Standards of Disclosure for Oil and Gas Activities ("NI "), including, but not limited to, information relating to areas, wells and/or operations that are in geographical proximity to or on-trend with prospective lands held by Blackbird and production information related to wells that are believed to be on trend with Blackbird's properties. Such information has been obtained from government sources, regulatory agencies or other industry participants, each of which is independent of Blackbird. Management of Blackbird believes the information may be relevant to help define the reservoir characteristics in which Blackbird may hold an interest and such information has been presented to help demonstrate the basis for Blackbird's business plans and strategies. However, to Blackbird s knowledge, such analogous information has not been prepared in accordance with NI and the Canadian Oil and Gas Evaluation Handbook and Blackbird is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor. Blackbird has no way of verifying the accuracy of such information. There is no certainty that the results of the analogous information or inferred thereby will be achieved by Blackbird and such information should not be construed as an estimate of future production levels. Such information is also not an estimate of the reserves or resources attributable to lands held or to be held by Blackbird and there is no certainty that the reservoir data and economics information for the lands held or to be held by Blackbird will be similar to the information presented herein. The reader is cautioned that the data relied upon by Blackbird may be in error and/or may not be analogous to such lands to be held by Blackbird. Initial Production Rates Any references in this document to test rates, flow rates, initial and/or final raw test or production rates, early production, test volumes and/or "flush" production rates are useful in confirming the presence of hydrocarbons, however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Such rates may also include recovered "load" fluids used in well completion stimulation. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for Blackbird. In addition, the Montney is an unconventional resource play which may be subject to high initial decline rates. Such rates may be estimated based on other third party estimates or limited data available at this time and are not determinative of the rates at which such wells will continue production and decline thereafter. Information Regarding Disclosure on Reserves The reserve estimates contained herein are estimates only and there is no guarantee that the estimated reserves or resources will be recovered. Volumes of reserves have been presented based on a company interest basis which includes Blackbird's royalty interests without deducting royalties payable by the Company. The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation. Where discussed herein "NPV 10%" represents the net present value (net of capex) of net income discounted at 10%, with net income reflecting the indicated oil, liquids and natural gas prices and IP rate, less internal estimates of operating costs and royalties. It should not be assumed that the future net revenues estimated by Blackbird's independent reserve evaluators represent the fair market value of the reserves, nor should it be assumed that Blackbird's internally estimated value of its undeveloped land holdings or any estimates referred to herein from third parties represent the fair market value of the lands. 30

31 Blackbird Energy Inc. Blackbird Energy Inc. 400, th Avenue SW Calgary, Alberta T2P 2T8 Garth Braun Chairman, CEO & President Tel: ext. 101 Cell: gbraun@blackbirdenergyinc.com 31