CONDENSED INTERIM BALANCE SHEET (UNAUDITED)

CONDENSED INTERIM BALANCE SHEET (UNAUDITED) As at (Canadian dollars in thousands) Notes March 31, 2015 December 31, 2014 ASSETS CURRENT ASSETS Cash and cash equivalents $49,307 $87,664 Restricted cash - 6,500 Trade and accrued receivables 19,971 28,048 Inventories 6,720 7,007 Other assets 13,743 8,906 89,741 138,125 NON-CURRENT ASSETS Property, plant, and equipment 4 1,103,600 1,114,656 1,103,600 1,114,656 $1,193,341 $1,252,781 LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES Trade and accrued payables $77,222 $76,684 Risk management contracts 5 2,798 3,666 Current portion of long-term debt 7 1,628 1,490 $81,648 $81,840 NON-CURRENT LIABILITIES Risk management contracts 5-367 Decommissioning liabilities 6 79,716 70,174 Long-term debt 7 1,160,842 1,089,520 1,240,558 1,160,061 SHAREHOLDERS EQUITY Share capital 9 622,681 622,681 Contributed surplus 40,691 40,553 Deficit (792,237) (652,354) (128,865) 10,880 $1,193,341 $1,252,781 Subsequent event (note 1) and going concern (note 2) The accompanying notes to the condensed interim financial statements are an integral part of the statements. 1

CONDENSED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) For the three months ended March 31, (Canadian dollars in thousands) Notes 2015 2014 INCOME Revenue, net of royalties $53,774 $104,952 Interest and other income 133 74 53,907 105,026 EXPENSES Blending and costs of products sold 21,896 31,676 Production and operating expenses 22,300 31,644 Transportation and handling costs 21,283 17,452 General and administrative 5,932 8,401 Share-based compensation 138 233 Depletion, depreciation, and amortization 4 25,930 21,576 Loss (gain) on risk management contracts 5 (108) 11,338 Finance charges 27,878 23,366 Foreign exchange loss 68,106 20,790 Loss on derecognition of property, plant, and equipment 4 435 1,163 193,790 167,639 LOSS BEFORE INCOME TAX (139,883) (62,613) Income tax recovery - - NET LOSS AND TOTAL COMPREHENSIVE LOSS $(139,883) $(62,613) NET (LOSS) PER SHARE (1) Basic $(0.31) $(0.14) Diluted $(0.31) $(0.14) (1) The Company is in a net loss position; any effect of stock options and share unit awards are anti-dilutive. The accompanying notes to the condensed interim financial statements are an integral part of the statements. 2

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (UNAUDITED) As at March 31, (Canadian dollars in thousands) 2015 2014 SHARE CAPITAL Balance, beginning of period $622,681 $622,125 Cash received on shares issued upon exercise of stock options - - Transfer from contributed surplus - stock options exercised - - Transfer from contributed surplus - share units issued - - Transfer from contributed surplus - share awards issued - 289 Balance, end of period $622,681 $622,414 CONTRIBUTED SURPLUS Balance, beginning of period $40,553 $40,465 Share-based compensation 138 233 Transfer to share capital - stock options exercised - - Transfer to share capital - share units issued - - Transfer to share capital - share awards issued - (289) Cash paid on settlement of share awards and share units - (113) Balance, end of period $40,691 $40,296 DEFICIT Balance, beginning of period $(652,354) $(440,568) Net loss (139,883) (62,613) Balance, end of period $(792,237) $(503,181) Total shareholders equity $(128,865) $159,529 The accompanying notes to the condensed interim financial statements are an integral part of the statements. 3

CONDENSED INTERIM STATEMENTS OF CASH FLOW (UNAUDITED) For the three months ended March 31, (Canadian dollars in thousands) Notes 2015 2014 OPERATING Loss from operations $(139,883) $(62,613) Adjustments for: Depletion, depreciation, and amortization 4 25,930 21,576 Share-based compensation 138 233 Finance charges - non-cash portion 2,697 2,015 Interest expense on long-term debt 24,936 20,553 Unrealized (gain) loss on risk management contracts 5 (1,235) 6,507 Unrealized foreign exchange loss 69,774 20,934 Loss on derecognition of property, plant, and equipment 4 435 1,163 Decommissioning liabilities settled 6 (14) (2) Changes in non-cash working capital (16,429) (8,092) Cash flow from (used in) operating activities (33,651) 2,274 INVESTING Expenditures on property, plant, and equipment 4 (6,101) (18,085) Changes in non-cash working capital (4,435) 9,798 Cash flow used in investing activities (10,536) (8,287) FINANCING Cash paid on settlement of share awards and share units - (113) Net proceeds on borrowing under credit facility - 10,000 Repayment on borrowings under the first lien term loan facility (407) - Interest paid on long-term debt (2,774) (39,934) Cash flow used in financing activities (3,181) (30,047) (47,368) (36,060) Foreign exchange gain on cash balances held in foreign currency 2,511 81 Cash and cash equivalents, beginning of period 94,164 55,610 Cash and cash equivalents, end of period $49,307 $19,631 The accompanying notes to the condensed interim financial statements are an integral part of the statements. 4

NOTES TO THE FINANCIAL STATEMENTS 1. NATURE OF OPERATIONS AND THE CLOSING OF THE PROPOSED RECAPITALIZATION (THE RECAPITALIZATION ) Connacher Oil and Gas Limited ( Connacher or the Company ) is a public company listed on the Toronto Stock Exchange under the symbol CLL and headquartered in Calgary, Alberta, Canada. The address of the Company s principal office is Suite 900, 322-6th Avenue S.W., Calgary, Alberta. Connacher is an in situ oil sands developer, producer, and marketer of bitumen. On January 30, 2015, the Company announced a proposed recapitalization transaction (the Recapitalization ) aimed at significantly reducing the Company s debt burden and providing additional liquidity to fund ongoing operations. On April 23, 2015, the Court of Queen s Bench of Alberta approved the plan of arrangement, as amended. The Recapitalization included, amongst other things: The exchange of approximately CA$1.0 billion of Connacher s debt for common shares of Connacher The issuance by Connacher of US$35 million aggregate principal amount of new second lien convertible notes due August 1, 2018 (the New Convertible Notes ) The Company will have the option to accrue and compound interest payments due on the New Convertible Notes Reduction of annual interest expense in the range of CA$80 million Amendments to the existing first lien term loan credit agreement (the Term Loan Facility ) dated May 23, 2014 to increase the total commitments to provide for loans in the aggregate principal amount of US$24.8 million (equivalent of CA$30 million) to replace the existing revolving credit facility as outlined in financial statement note 7.2 The consolidation of the Company s common shares on the basis of 1 new common share for 800 existing common shares The Recapitalization closed on May 8, 2015. As part of the closing of the Recapitalization, the Company received net proceeds of $49.3 million, which included gross proceeds of $72.3 million, less estimated transaction costs of $23.0 million. Trading in the Company's common shares on a post-consolidation basis will occur on May 14, 2015 and the common shares will trade under a new trading symbol: TSX-CLC. Following the consolidation and the Recapitalization, the total issued and outstanding common shares of the Company will be approximately 28,309,315. 2. GOING CONCERN The condensed interim financial statements have been prepared on a going concern basis, which asserts the Company has the ability to realize its assets and discharge its liabilities and commitments in the normal course of business. Conversely, if the going concern assumption is not appropriate, adjustments to the carrying amounts of the Company s assets, liabilities, revenues, expenses, and balance sheet classifications may be necessary. Future operations are dependent on the generation of sustainable positive cash flow from operations; the maintenance of existing reserve and production bases; access to capital; and the ability to discharge obligations as they come due. Subsequent to March 31, 2015, the Company closed the Recapitalization; however, the current economic outlook on global crude oil prices may cast significant doubt about the Company s ability to continue as a going concern and additional funding may be necessary. 3. BASIS OF PREPARATION The condensed interim financial statements are unaudited and have been prepared in accordance with International Accounting Standard ( IAS ) 34 - Interim Financial Reporting and follow the same accounting policies and methods of computation as the most recent annual financial statements. Certain information and disclosures normally required to be included in notes to the annual financial statements have been condensed or omitted. Accordingly, the condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2014, which were prepared in accordance with International Financial Reporting Standards ( IFRS ). 5

3.1 Accounting pronouncements issued but not adopted The standards and interpretations that are issued but not yet effective up to the date of the issuance of the Company s financial statements are discussed below. The Company intends to adopt the following standards and interpretations, if applicable, when they become effective. IFRS 9 - Financial Instruments ( IFRS 9 ) IFRS 9 is intended to replace IAS 39 - Financial Instruments: Recognition and Measurement. IFRS 9 will address: the classification and measurement requirements for financial assets and liabilities; a new hedge accounting model; and the impairment of financial instruments. IFRS 9 will be effective for annual periods beginning on or after January 1, 2018; however, early adoption is available. The extent and impact of the adoption of IFRS 9 has not yet been determined. IFRS 15 - Revenue from Contract with Customers ( IFRS 15 ) IFRS 15 will replace IAS 18 - Revenue, IAS 11 - Construction Contracts, and related interpretations. IFRS 15 is required to be adopted either retrospectively or using a modified transition approach for fiscal years beginning on or after January 1, 2017. The extent and impact of the adoption of IFRS 15 has not been determined. 4. PROPERTY, PLANT, AND EQUIPMENT ( PP&E ) As at (Canadian dollars in thousands) Cost Petroleum and natural gas properties Corporate Balance, December 31, 2014 $1,492,626 $18,809 $1,511,435 Additions 6,101-6,101 Derecognition and dispositions (1,537) - (1,537) Change in decommissioning liabilities (note 6) 9,176-9,176 Balance, March 31, 2015 $1,506,366 $18,809 $1,525,175 Total Accumulated depletion, depreciation, and impairment Petroleum and natural gas properties Corporate Balance, December 31, 2014 $382,110 $14,669 $396,779 Depletion and depreciation 25,568 330 25,898 Derecognition and dispositions (1,102) - (1,102) Balance, March 31, 2015 $406,576 $14,999 $421,575 Total Carrying amount of PP&E As at December 31, 2014 $1,110,516 $4,140 $1,114,656 As at March 31, 2015 $1,099,790 $3,810 $1,103,600 Property, plant, and equipment with a carrying cost of $1,104 million (December 31, 2014: $1,115 million) is collateralized to secure long-term debt. 6

5. RISK MANAGEMENT CONTRACTS The following tables summarize the details of the risk management contract positions: As at (Canadian dollars in thousands) March 31, 2015 December 31, 2014 Current liabilities Natural gas contracts (1) $2,798 $3,666 Current liabilities $2,798 $3,666 Non-current liabilities Crude oil contracts $- $367 Non-current liabilities $- $367 (1) Subsequent to March 31, 2015, the contract was terminated for a loss of $2.9 million. Crude oil contracts Term WTI swaptions (1) : Notional Volume (bbl/d) Weighted Average Price ($/bbl) Liability (Asset) (Canadian dollars in thousands) Min Price Max Price March 31, 2015 December 31, 2014 Jan - Dec 2016 (2) 1,175 US$95.00 US$95.00 $- $367 Total liability $- $367 Less: current portion - (liability) - - Non-current liability $- $367 (1) This is an option granting the counterparty the right but not the obligation to enter into an underlying swap on the last business day prior to the contract start date. (2) In Q1 2015, the contract was terminated for a loss of $192 thousand. Natural gas contracts Term AECO swaps: Volume (GJ/d) Position Price ($/GJ) Liability (Asset) (Canadian dollars in thousands) March 31, 2015 December 31, 2014 Jan - Dec 2015 (1) 7,500 Fixed - buy CA$3.99 $2,798 $3,666 Current liability $2,798 $3,666 (1) Subsequent to March 31, 2015, the contract was terminated for a loss of $2.9 million. The following table summarizes the risk management amounts recorded in the statements of operations: For the three months ended March 31, (Canadian dollars in thousands) 2015 2014 Unrealized loss (gain) $(1,235) $6,507 Realized loss 935 4,831 Realized loss on unwinding of risk management contracts 192 - (Gain) loss on risk management contracts $(108) $11,338 7

6. DECOMMISSIONING LIABILITIES The following table summarizes the details of decommissioning liabilities: As at (Canadian dollars in thousands) March 31, 2015 December 31, 2014 Balance, beginning of period $70,174 $53,087 Liabilities incurred Liabilities settled Liabilities disposed - 3,508 (14) (121) - - Change in estimates 9,176 12,109 Unwinding of discount 380 1,591 Balance, end of period $79,716 $70,174 7. LONG-TERM DEBT Face Value Maturity Interest Interest Payment Principal Payment (Canadian dollars in thousands) of Principal Date rate per Terms Terms March 31, December 31, (in millions) annum 2015 2014 Credit Facility One payment on (Secured) (1)(2) CA$30 Dec 31, 2016 6.75% Monthly maturity $- $- Quarterly - US$321 thousand - First Lien Term Loan (Secured) (3) US$128.4 May 23, 2018 7% Mar 31, June 30, Mar 31, June 30, Sept 30, Dec 31 Sept 30, Dec 31 161,628 148,212 Second Lien Senior Notes (Secured) (4) CA$350 Aug 1, 2018 8.75% Second Lien Senior Notes (Secured) (4) US$550 Aug 1, 2019 8.50% Semi-annually on Feb 1 and Aug 1 Semi-annually on Feb 1 and Aug 1 One payment on maturity One payment on maturity 350,000 350,000 697,565 638,055 Total $1,209,193 $1,136,267 Unamortized transaction costs Current portion of long-term debt (46,723) (45,257) (1,628) (1,490) Long-term debt $1,160,842 $1,089,520 (1) On January 30, 2015, the Company entered into an amendment and waiver agreement with the lender of the Credit Facility to reduce the borrowing base to the amount of outstanding letters of credit, which totaled $20.1 million. The borrowing base was further reduced as the outstanding letters of credit terminated. Under the amended terms, the Company was unable to borrow additional funds, including extending new letters of credit. At March 31, 2015, $5.3 million of letters of credit remained outstanding. (2) As part of the closing of the Recapitalization, the Credit Facility was terminated. (3) As part of the closing of the Recapitalization, the first lien term loan facility was amended. Refer to financial statement note 7.2. (4) As part of the closing of the Recapitalization, the Notes were converted into or exchanged for common shares. 8

7.1 Credit Facility On January 30, 2015, the Company entered into an amendment and waiver agreement with the lender of the Credit Facility to reduce the borrowing base to the amount of outstanding letters of credit, which totaled $20.1 million. The borrowing base was further reduced as the outstanding letters of credit terminated. Under the amended terms, the Company was unable to borrow additional funds, including extending new letters of credit. The lenders agreed to waive various events of default clauses, including: non-payment of interest due to second lien note holders and a going concern qualification included in year-end financial statements. At March 31, 2015, the amended Credit Facility included the following terms: The amended Credit Facility was due and payable in full on December 31, 2016. Under the terms of the Credit Facility, the Company adhered to the following covenants: The Company s most recent year-end 1P reserve value discounted at PV-10 to aggregate borrowings outstanding at the end of each fiscal quarter under the Credit Facility (including all principal amounts converted to Canadian dollars on the date the borrowings under the Credit Facility were incurred) and the Term Loan Facility (including all principal amounts converted to Canadian dollars on the date the Term Loan Facility was incurred) must exceed two and one-half times. Borrowings under the Credit Facility cannot exceed one-half times trailing four quarter EBITDA ( Facility EBITDA ) as defined in the Credit Facility. Facility EBITDA is defined as the net income (or loss) of the Company, plus: finance charges; income tax expense; depreciation, depletion, and amortization; losses from extraordinary, unusual or non-recurring items; losses on disposition and derecognition of property, plant, and equipment; net losses in respect of investments accounted for on an equity basis; exploration and evaluation expense; and any other non-cash expense deducted in determining net income; less: income tax credit or deferred tax recoveries; interest income; gains from extraordinary, unusual or non-recurring items; gains on disposition of property, plant, and equipment; net profits in respect of investments accounted for on an equity basis, any other non-cash gain that me be added in determining net income. At March 31, 2015, the Company had borrowed $nil (December 31, 2014 - $nil) under the Credit Facility and $5.3 million (December 31, 2014 - $20.1 million) had been utilized to back stop various letters of credit. As part of the closing of the Recapitalization, the outstanding letters of credit were cancelled and the Credit Facility was terminated. 7.2 First Lien Term Loan Facility At March 31, 2015, the Term Loan Facility included: An aggregate principal amount of US$128.4 million, which included interest on a floating basis at either an alternative base rate ( ABR and ABR loans ) or LIBOR ( Eurodollar loans ), as selected at the Company s option, plus an applicable margin of 500 or 600 basis points, respectively. For loans advanced as ABR loans, interest payments occurred quarterly. For loans advanced as Eurodollar loans, the Company had the option to select an interest period of 1, 2, 3, or 6-months, which included a LIBOR floor of 100 basis points. The Term Loan Facility matured at the earlier of May 23, 2018 or 180 days prior to the payment of the Notes (August 1, 2018). In addition, the Term Loan Facility required quarterly principal payments of US$321 thousand and was secured on a first priority basis by liens on all of the Company s existing and future property. Initially, the Term Loan Facility was recognized at fair value, net of transaction costs, and subsequently carried at amortized cost. The Term Loan Facility included various non-financial covenants which included limitations on: additional indebtedness, liens, guarantees, mergers and acquisitions, asset sales, restricted payments, and transactions with affiliates and investments. The Term Loan Facility was subject to the following covenant: The Company s most recent year-end 1P reserve value discounted at 10 percent ( PV-10 ) to aggregate borrowings outstanding at the end of each fiscal quarter under the Credit Facility (including all principal amounts converted to Canadian dollars on the date the borrowings under the Credit Facility were incurred) and the Term Loan Facility (including all principal amounts converted to Canadian dollars on the date the Term Loan Facility was incurred) must exceed two and one-half times. The Company retained the option to repay the loans, in whole or in part, with accrued interest on the amount being prepaid without premium or penalty, unless prepayments were made prior to May 23, 2016. The premium would be as follows: 9

If the prepayment was made prior to May 23, 2015, a cash amount equal to the greater of (i) 1% of the principal amount of the loans prepaid and (ii) the present value at such repayment date of (A) the amount payable with respect to the principal amount of the loans prepaid in connection with a prepayment of such loans on May 23, 2015 (as specified in (B) below) plus (B) all required interest payments due on such loans (assuming that the Adjusted LIBOR prevailing at the time of the notice of prepayment applies throughout such period) to but excluded May 23, 2015, computed using a discount rate equal to the Treasury Rate as of such prepayment date plus 50 basis points discounted to the redemption date on a quarterly basis. If made on or after May 23, 2015 and before May 23, 2016, a cash amount equal to 1% of the principal amount of the loans prepaid. If made on or after May 23, 2016, US$nil. At the closing date, the Term Loan Facility was translated into Canadian dollars at an exchange rate of US$1 = CA$1.0899. On April 22, 2015, a consent, support, and waiver agreement was reached with the lenders under the Term Loan Facility, which included, among other things: The waiver of any and all alleged or actual defaults existing prior to May 8, 2015 that are specified in the acceleration and demand notice dated February 3, 2015 ( Demand Notice ) and/or in connection with or as a result of any element of the Plan or arrangements, as revised The withdrawal of the Demand Notice The withdrawal and rescission of the complaint filed with the Supreme Court of the State of New York by the term loan agent The support of the first lien lenders for the Recapitalization The amendment of certain terms and conditions of the Term Loan Facility, which are reflected in an amended and restated Term Loan Facility ( Amended Term Loan Facility ) In consideration for each of the first lien lenders granting the consent and waiver and for agreeing to the amendments to the Term Loan Facility, the Company: Paid each of the first lien lenders, a fee payable in cash, in an amount equal to 2% of the principal amount of the loans owing to such lender on May 8, 2015 Paid default interest to each of the first lien lenders for the period from February 2, 2015 to May 8, 2015, without any acknowledgement in either case that there had been any default under the Term Loan Facility As part of the closing of the Recapitalization, the Amended Term Loan Facility included: The principal amount of the Term Loan Facility increased by US$24.8 million (equivalent of CA$30 million) on May 8, 2015 The interest rate increased by 2% cash and 2% payment-in-kind ( PIK ) per annum until December 31, 2016 and by 3% cash and 3.5% PIK commencing January 1, 2017 to maturity The call protection provisions were amended to be the following: May 8, 2015 to May 23, 2015: none May 24, 2015 to May 23, 2016: none May 24, 2016 to May 23, 2017: 102% May 24, 2017 to maturity: 105% The Amended Term Loan Facility will allow the Company to incur additional debt and grant additional security, on terms fully subordinated to the Amended Term Loan Facility ( Additional Subordinate Financing ), provided that no such Additional Subordinate Financing shall contain: Any amortization payments Interest rates higher than those under the New Convertible Notes A maturity date on or prior to the maturity date under the Amended Term Loan Facility 10

8. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table shows the comparison of the carrying and fair values of the Company s financial instruments by classification: As at March 31, 2015 December 31, 2014 (Canadian dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Loans and receivables Cash (1) $49,307 $49,307 $87,664 $87,664 Restricted cash (1) - - 6,500 6,500 Trade and accrued receivables (1) 19,971 19,971 28,048 28,048 Fair value through profit and loss ( FVTPL ) Risk management contracts - current liabilities (2) 2,798 2,798 3,666 3,666 Risk management contracts - non-current liabilities (2) - - 367 367 Other liabilities Trade and accrued payables (1) 77,222 77,222 76,684 76,684 Current portion of long-term debt (3) 1,628 1,318 1,490 1,344 First lien term loan facility (3) 155,523 129,520 142,285 132,417 Second lien senior notes (3) 1,005,319 62,841 947,235 342,319 (1) The fair values of cash, trade and accrued receivables, and trade and accrued payables approximate the carrying amounts due to the short-term maturity of the instruments. (2) The fair values of the risk management contracts were derived from observable market prices or indices, a Level 2 measurement. (3) The fair values of long-term debt are based on market information, a Level 2 measurement. 9. SHARE CAPITAL Authorized: unlimited number of common voting shares with no par value Authorized: unlimited number of first preferred shares with no par value of which none are outstanding Authorized: unlimited number of second preferred shares with no par value of which none are outstanding 9.1 Issued and outstanding common share capital March 31, 2015 December 31, 2014 Canadian dollars Canadian dollars Number Number in thousands in thousands Balance, beginning of period 452,950,676 $622,681 450,301,836 $622,125 Shares issued upon exercise of stock options - - 287,407 47 Transfer from contributed surplus - stock options - - - 24 Transfer from contributed surplus - share units - - 543,293 158 Transfer from contributed surplus - share awards - - 1,818,140 327 Balance, end of period 452,950,676 $622,681 452,950,676 $622,681 Weighted average common shares outstanding basic and diluted 452,950,676 452,395,406 As part of the closing of the Recapitalization, the common shares were consolidated on an 800-to-one basis, which resulted in approximately 28,309,315 common shares outstanding. 11

10. STOCK OPTION PLAN, SHARE AWARD INCENTIVE PLAN, AND SHARE UNIT PLAN 10.1 Stock option plan The following table shows the changes in stock options and the related weighted average exercise prices: For the three months ended March 31, 2015 2014 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Outstanding, beginning of period 17,583,256 $0.49 20,470,686 $0.61 Granted - - 541,316 0.21 Exercised - - - - Forfeited (350,912) 0.27 (609,208) 0.49 Expired (1,760,218) 1.33 (864,133) 0.71 Outstanding, end of period 15,472,126 $0.40 19,538,661 $0.60 Exercisable, end of period 7,899,981 $0.59 8,916,560 $1.02 For the three months ended March 31, 2015, no additional stock options were granted. The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: For the three months ended March 31, 2015 2014 Weighted average share and exercise price ($ per share) - 0.21 Risk free interest rate (percent) Expected option life (year) Expected volatility (percent) Dividend yield (percent) Forfeiture rate (percent) - 1.16-3.0-100 - - - 10.9 The expected volatility measured at the standard deviation of continuously compounded share returns was based on statistical analysis of the daily share prices over the last three years (2014: two years). As part of the closing of the Recapitalization, all existing stock options were extinguished and cancelled for no consideration. 10.2 Share award incentive plan The following table summarizes the changes in share awards: For the three months ended March 31, 2015 2014 Outstanding, beginning of period Granted - 2,725,000 - - Vested and settled by issuing common shares - (1,452,140) Vested and settled in cash Outstanding, end of period - (672,860) - 600,000 12

10.3 Share unit plan The following table summarizes the changes in share units: For the three months ended March 31, 2015 2014 Outstanding, beginning of period 1,245,796 1,237,520 Granted - - Vested and settled by issuing common shares - - Forfeited (13,632) (8,680) Outstanding, end of period 1,232,164 1,228,840 As part of the closing of the Recapitalization, all existing share units were extinguished and cancelled for no consideration. 11. CAPITAL MANAGEMENT In managing capital, the Company seeks to safeguard its ability to operate as a going concern while continuing to pursue the development of its in situ oil sands properties. The Company will continue to monitor its working capital balances and commitments as changing economic and risk conditions emerge. The closing of the Recapitalization was aimed at reducing the Company s debt and annual interest expense, and to provide additional liquidity to fund ongoing operations. Refer to financial statement note 2 for going concern discussion and note 12 for summary of commitments. 12. CONTRACTUAL OBLIGATIONS AND COMMITMENTS At March 31, 2015, the Company was subject to the following commitments: As at (Canadian dollars in thousands) Less than 1 Year 2-5 Years Greater than 5 Years Total Operating (1) $9,373 $16,562 $- $25,935 Capital (2) 1,504 - - 1,504 Service and Maintenance (3) 2,739 9,600 9,400 21,739 Long-term debt - interest payments (4)(5) 101,318 356,596-457,914 Total commitments $114,934 $382,758 $9,400 $507,092 (1) Operating commitments relate to rail, vehicle, IT, and office leasing (net of subleases) arrangements. (2) Capital commitments pertain to the potential cancellation fee related to long-lead capital items. (3) Service and maintenance commitments pertain to the Company s facilities and equipment. The balance is primarily comprised of costs related to power infrastructure which total $21.4 million. (4) Interest payments on US dollar-denominated debt are translated at US$1 = CA$1.2683. At March 31, 2015, $59.9 million of accrued interest was recorded in the Company s accounts payable balance and was settled and extinguished for no consideration. (5) As part of the closing of the Recapitalization, the Notes were converted into or exchanged for common shares and the accrued interest was settled and extinguished for no consideration, which resulted in the reduction of approximately CA$1 billion of long-term debt and CA$80 million in annual interest payments. 13