FROG LAKE FIRST NATIONS. Economic and Lands Development A Brief Overview

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1 FROG LAKE FIRST NATIONS Economic and Lands Development A Brief Overview

2 FROG LAKE FIRST NATION - OVERVIEW First Nation 60 miles NW of Lloydminster ~3000 members; ~1200 on reserve 55,000 acres Rich oil and gas resource base Established heavy oil production exceeding 6kbpd Opportunity for further growth 2

3 FROG LAKE - MCLAREN BELT DEPOSIT 3

4 FLFN OIL AND GAS LAYER 4

5 FLFN HOUSING 350 HOMES 5

6 PRIORITY FOR ECONOMIC DEVELOPMENT PROGRAMMING Primary Objective Draft E.D. policy/mandate Commission Long term Community Plan Goals Target demographic which are under skilled and underemployed Educate secondary students of future opportunities Strategy Develop E.D. program revenues Create Land & Resource program Tactics Initiate Work Skills Projects Creation of new jobs Wage subsidies for youth 6

7 COMMUNITY BASED ECONOMIC & GOVERNANCE DEVELOPMENT DIRECTOR ADVISORY COMMITTEE ECONOMIC DEVELOPMENT LANDS AND RESOURCES INTERTRIBAL ECONOMIC RELATIONS COMMUNITY BASED ECONOMY OIL & GAS SECTOR NATIONAL AND INTERNATIONAL ECONOMIC RELATIONS 7

8 FLERC CORPORATE STRATEGY A heavy oil producer with strong community relationships experienced in growing through the drill bit and acquisitions Enviable Asset Base Strong production growth history FY14 production of 2427 boepd (98% oil) Dec 13 Proved + Probable Reserves of 10.3mmboe with PV10 of $168.6 million FY14 Cashflow of $22.0 million; Free cashflow (after capex) of $16.2 million Growth Opportunity Remaining oil in place are >1.5 billion bbls; significant EOR potential Undeveloped land of 41,000 acres Balance Sheet Strength No debt; $25 million of cash Access to further funds through shareholder (Frog Lake First Nation) $76 million of available tax pools 8

9 FROG LAKE ENERGY RESOURCES CORP. Historically, First Nations received only land bonus & production royalties from oil companies operating on First Nation lands Terms negotiated by Indian Oil & Gas Canada for First Nation Minimal voice in development plans, activity levels, employment Frog Lake First Nation wanted to participate in a more active way FLERC (corporation) created to fill this role 100% owned by Frog Lake First Nation Participate directly in exploration & development joint venture opportunities Company has evolved into a partnership with existing operators on Nation lands Capture upside of direct interest in production while minimizing risks Assembled a strong corporate leadership and technical team Actively seeking opportunity to further growth 9

10 FLERC MILESTONES 2000 Incorporation 2003 Initiated Joint Ventures w/ Industry Partners with Capital & Expertise FLERC acquired mineral leases from the Nation 2005 Acquisition of Husky Oil Ltd. assets on Reserve. Joint venture with Industry Partner (50% FLERC interest) 2008 Production Exceeds 1,000 barrels per day Acquired lands under developed, numerous drilling/rework opportunities 2009 Start of Aggressive Drilling Program on Frog Lake Lands FLERC drilling funded by internal cash flow 2010 Farmout & Joint Venture Windtalker Energy Corp. Foreign E&D capital accessed under favourable terms to FLERC 2012 Property Acquisition / Joint Venture Perpetual Energy Inc. 33% interest in under developed Sparky oil pool. First project off FLFN lands 2013 Corporate production of 3,000+ Boepd, Free Cash flow $30MM, Debt Free 10

11 FLFN ECONOMIC & LANDS DEPARTMENT 11

12 FLFN ECONOMIC & LANDS DEPARTMENT 12

13 FLFN ECONOMIC & LANDS DEPARTMENT 13

14 FLFN ECONOMIC & LANDS DEPARTMENT 14

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17 FLFN ECONOMIC DEVELOPMENT & LANDS TRAINING PLAN Banff Governance Training May Three (3) Economic Development Staff completed Aboriginal Leadership Certification over a 8 months timeline BEARH Environmental Monitoring Spring 2012, partnership with Tribal Chief Ventures BEARH Land Use Planning Coordinator (LUPC) June 2013 ECO Canada, Eleven (11) FLFN community members and staff passed course. Fully funded by FLFN Nation TSAG University of Alberta GIS credit course initiated; 6 FLFN staff completion

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19 FLFN - ONGOING AANDC, ongoing workshops for updates on new policies TSAG, ongoing workshops for environment( water, air and soil) and technical training , All Lands completed 3 levels GIS training, University of Alberta FLFN began National Lands Manager Training, Indigenous Resource Management Program (IPRM), University of Sask. All Lands Staff will finish the 2 years training in 3 years. 19

20 FLFN - ONGOING 20

21 ECONOMIC DEVELOPMENT & LANDS STAFF Elaine Carter, Director, Allarice Quinney, Executive Assistant, William Quinney, Business Development Officer, Len Quinney, Lands Officer, Dean Harper, Lands Officer, Kendra Saddleback-Quinney, GIS Clerk, 21

22 FINAL WORDS LANDS IS OUR ECONOMIC BASE Our ultimate goal is to have everyone have the same vision, the same strategic direction. The main focus is for us to work together to redevelop and revise our strategic plan. We re looking at fiveyear, 10, 25, and 100 years planning. Land management is the greatest theme in governance and economics. If we are to advance, we need infrastructure, we need revenue creation to come back onto the reserves seven times, I don t know if we will see that in my generation, but maybe in our children or grandchildren. The reason we keep going back to strategic planning is to think about how we want our Nations to prosper. 22