A Growth-Oriented Oil and Gas Company

in the Alberta and BC Foothills

Certain information with respect to Ikkuma Resources (Ikkuma or the Corporation) included in this presentation constitutes forward-looking
information under applicable securities legislation. Forward-looking information typically contains 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 information in this presentation may include, but is not limited to, potential flow rates from recently completed wells, the number of de-
risked, low risk drilling locations, the number of offset locations, the timing of future drilling operations, the potential future OPEX in the $4.25 - $4.50
range, expected future well flow rates, the type and timing of capital expenditures, the estimated economic outcome of new gas and oil wells and
recompletions, Ikkumas commitment to spend within cash flow and Ikkumas future growth resulting from its emerging light oil play.
Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove
to be incorrect. Although management believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should
not be placed on forward-looking information because there can be 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 and are implicit in, among other things,
expectations and assumptions concerning the performance of existing wells and success obtained in drilling new wells, anticipated expenses, cash flow
and capital expenditures and the application of regulatory and royalty regimes. Readers are cautioned that the foregoing list is not exhaustive of all
factors and assumptions which have been used.
Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with
the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating
to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties
resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
Forward-looking information is 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 the proposed management and described in the forward-looking information. The
forward-looking information contained in this presentation is made as of the date hereof and management undertakes no obligation to update publicly
or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities
laws. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement.
This presentation contains the term netbacks which is not a term recognized under IFRS. This measure is used by management to help evaluate
corporate performance as well as to evaluate acquisitions. Management considers netbacks as a key measure as it demonstrates its profitability relative
to current commodity prices. Operating net backs are calculated by taking total revenues (net of realized hedging gains or losses) and subtracting
royalties, operating expenses and transportations costs on a per BOE basis.

BOE Disclosure
The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel
(6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. All BOE conversions in the report are derived from converting gas to oil in the ratio mix of six
thousand cubic feet of gas to one barrel of oil, which may be misleading as an indicator of value given that the values are based on the current price of
crude oil and natural gas is significantly different from the energy equivalency of 6:1.
In this presentation: (i) mcf means thousand cubic feet; (ii) mcf/d means thousand cubic feet per day (iii) mmcf means million cubic feet; (iv) mmcf/d
means million cubic feet per day; (v) bbls means barrels; (vi) mbbls means thousand barrels; (vii) mmbbls means million barrels; (viii) bbls/d means
barrels per day; (ix) bcf means billion cubic feet; (x) mboe means thousand barrels of oil equivalent; (xi) mmboe means million barrels of oil equivalent
and (xii) boe/d means barrels of oil equivalent per day.

2
Future Drilling Locations
Unless otherwise specified, the information in this Corporate Presentation pertaining to future drilling locations or drilling inventories is based solely on
internal estimates made by management and such locations have not been reflected in any independent reserve or resource evaluations prepared
pursuant to NI 51-101. Similarly, unless otherwise specified, the information in this Corporation Presentation pertaining to targeted reserve volumes from
future drilling is intended to indicate that in making its internal drilling decisions, the Corporation seeks to target drilling locations that, based on
previous drilling results and its own internal assessments, it believes will on average ultimately generate the indicated volumes. This Corporate
Presentation discloses drilling locations which are unbooked locations and are internal estimates based on the Corporations prospective acreage and an
assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have
attributed reserves or resources and have been identified by management as an estimation of multi-year drilling activities based on evaluation of
applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Ikkuma will drill all unbooked drilling locations
and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which
the Corporation actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, oil and natural gas prices, costs, actual
drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by
drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells
where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in
such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production. Of the 52
development locations shown on p.15, six are proved plus probable locations identified in the 2015YE Sproule Report.

Well Test Results

Certain well test results disclosed in this Corporate Presentation represent short-term results, which may not necessarily be indicative of long-term well
performance or ultimate hydrocarbon recovery therefrom. Full pressure transient and well test interpretation analyses have not been completed and as
such the flow test results contained in this Corporate Presentation should be considered preliminary until such analyses have been completed.

3
Strategy High growth, low decline , gas-weighted, oil upside,
in conventional bypassed reservoirs

Focus Alberta & BC Foothills

Symbol TSX-V: IKM

Basic / F.D. Shares Outstanding 94.2 MM / 98.4 MM

Market Capitalization: diluted/undiluted (1) $85 MM / $89 MM

Forecast 2016 Exit Net Debt $31 MM

Current Production (2) 6,500-7,500 boe/d (98% gas-weighted)

Reserves (1P/ 2P) (3) 20.0 MMboe / 27.5 MMboe

Infrastructure 560 km pipelines; 9 processing facilities; and

ownership in 3 gas plants

Current Net Undeveloped / Net Developed Land 159,917 / 63,947 acres

Tax Pools $205 MM

Insider Ownership: undiluted/diluted (4) 16% / 20%

(1) Based on $0.90/sh.

(2) Present variance is due to curtailments, shut-in production (in some cases for economic reasons). Approximately 500 boe/d, sour gas, remains shut in for economic reasons.
(3) Reserves evaluation from the 2015YE Sproule Report.
(4) Includes Royal Capital Management Corp.

4
 Proven Team
Technical team with 150+ years of combined foothills operational experience.
Successfully mitigated low commodity prices in 2016 with hedging; 3,800 boe/d of 2017 gas production is
hedged at $2.86/Mcf (AECO).
Top quartile cost efficiencies amongst a select list of Canadian producers.

Low Decline Core Asset

10-15% annual decline.
YTD OPEX is $8-$9/boe and future reductions are anticipated.
Sweet gas redirect potential within existing infrastructure will further decrease OPEX.

Growth Potential
88% WI in an emerging foothills Cardium light oil play with a potential drilling inventory of 150+ locations.
Over 50 gas drilling locations planned when gas prices support drilling.
Underutilized extensive midstream assets poised for future growth.

5
 Low decline, stacked reservoirs (Wilrich, Falher, Cadomin, Cadotte, Dunvegan, Cardium), containing oil and gas.

Identified multiyear drilling inventory for gas and potentially large (bypassed) oil pools.

Team was involved previously in building the asset; 9 facilities, including 3 gas plants, ~560 km pipelines.

Highly focused with numerous undeveloped stacked conventional structured reservoirs.

12%
N.E. limit of Foothills Play
32%

7%

11%
2%

Area production, as a percent of total (1) 20%

IKM Trunk Pipeline

(1) Approximately 16% of total production is in southern Alberta Foothills.

6
 > 4,500 producing Cardium HZ
Cardium Oil and Gas Pools wells in western Canada.
Many juniors exploiting Cardium
pools in the deep basin,
including:
Torc (Kaybob, Rosevear, Carrot);
Narraway Vermillion, Bellatrix, Bonterra,
Arc in Pembina;
Bonavista, Yangarra, Taqa
(Williston Green);
Petrus, Bellatrix, Bonavista
(Ferrier);
Pengrowth, Whitecap, Exxon
(Harme);
Orlen (Lochend).

Cardium is the largest

conventional onshore oil pool in
western Canada.

7
 Average 88% WI in 40 sections
Approximate Oil of land.
Discovery Well #1,
Pool Outline 1999 (vertical well), Regional hydrocarbon charge
IP 220 bbl/d, 31Mbbl and extensive, well developed
fracture network in a
conventional reservoir with
porosities up to 12%.
150+ locations have been
identified so far.
Q1, Q2 Drilling Operations
Based on regional analysis and
other Cardium foothills
analogues, initial rates could
be as high as 2001,300 boe/d.
Two New Oil Pool Discoveries:
8-31-63-11W6 and 2-1-64-12W6 Reservoir quality and
occurrence of condensate
appears comparable to other
foothills oil reservoirs.
Condensate can trade at a $3-
$10/Bbl premium to Edmonton
Light.

8
 Large pool with two play types: deep basin resource play and foothills fractured conventional play.
Reservoir quality as good, or better than, many deep basin Cardium plays.
Cardium is characterized by 15-18m of clean sandstone with porosities up to 12%. Reservoir is above bubble point.

Deep Basin Resource Play Foothills Fractured Conventional Play

Scalable, repeatable oil program with focus on D&C
optimization for improving economics.
Apply deep-basin operator learnings to optimize stimulation
and lateral lengths to maximize IP30.
Deep basin locations characterized by longer laterals and
multi-stage fracture stimulations. Natural fractures are
anticipated in deep basin areas, but less common than in
faulted areas.
High permeability sweet spots anticipated in many of the
150+ locations identified to date.
Geosteering to remain in porous, fractured intervals is
fundamental for increased production.
Highly fractured foothills locations may or may not require
fracture stimulations.
Economics anticipated to be better in fractured fairways.

9
Operations to date
Recompleted bypass Cardium and free flowed 75 bbls/d 50 API oil unstimulated (confirmed fracture network,
expanded oil fairway).
Drilled and fracked horizontal footwall Cardium well with 670m lateral. Currently pumping back frack water, light
oil, and sweet gas. After 3.5 months, currently producing about 70-120 bbl/d fluid (10-30% water), with 20-30
boe/d gas.
Drilled offset hanging-wall exploration well that confirmed new pool and oil charge over multiple thrust sheets.
Well is currently pumping between 150 and 350 bbl/d fluid (5-30% water), with 60-80 boe/d of associated gas.
IKM Cardium horizontals in the 60-90 percentile in the basin, despite being the initial 2 wells in the program.

Future Operations
Q1 2017
Drill 2 HZ well locations offsetting discovery
Approximate Initial vertical well that produced over 200 bbl/d,
Production Rates of
Wells #1 and #2 IP30, light oil.
1 development well and 1 exploratory well.
Q2-Q4 2017
Complete and bring wells on production,
install facilities.
2-3 gas recompletions.

1
0
 EUR vs PhiH Deep basin pools
consistently display lesser
300,000
Deep Basin Oil Pools reservoir PhiH.
Foothills Oil Pools Cordel
Foothills Pools (Cordel and
250,000
Stolberg Stolberg) have the added
benefit of natural fractures,
200,000 Lochend resulting in increased
reservoir capability.
EUR (BBL)

E Pembina Narraway PhiH

N Pembina
NW Pembina
150,000 Narraway (PhiH) reservoir
Ferrier Kaybob
Rosevear quality is excellent
Wapiti compared to most
100,000
Wilson Ck producing fields.
Med River Berland
50,000 Harme
Pine Creek Fir
Will Grn Kakwa
Notin-Carrot Edson
-
- 0.2 0.4 0.6 0.8 1.0 1.2 1.4
PhiH

(1) Pools are heterogeneous. Representative logs were selected in order to determine porosity and reservoir thickness. Cardium reservoir variability is assumed ubiquitous.
(2) Cardium gas wells are excluded from the analysis.

11
 More than 3,500 HZ wells have OIL PD RATE (ALL CARDIUM DEEP BASIN HZ WELLS, IP30)
140 6000
tested various Cardium deep basin

Prod. Rate (bbl/d)

120 5000

GOR (scf/bbl)
oil pools (see appendix). 100 Oil CD Rate 4000
80
GOR 3000
Only two large foothills Cardium oil 60
Well Count =3,600 2000
pools produced to date in the WCSB 40
20 1000
(Cordel and Stolberg).(2) 0 0

1
7
13
19
25
31
37
43
49
55
61
67
73
79
85
91
97
103
109
115
121
127
Foothills oil pools yield the highest
Months
returns due to enhanced
permeability.
Expected oil recovery typically much
higher in fractured foothills
reservoirs, as indicated in graph to
right.
Based on regional analysis, oil
recovery for the foothills Cardium at
Narraway is expected to be higher
than the deep basin reservoirs with
comparable porosities.

(1) EUR for new wells cannot be estimated at present.

(2) WCSB Western Canada Sedimentary Basin; also see Appendix.

12
 Feb 2017 (Strip)
150+ locations.(1) C$/bbl $/mcf
Jan-17 $ 71.25 $ 2.80
Estimated 30 well, 3 year program with a projected $127 MM CAPEX requirement. Jan-18 $ 72.75 $ 2.70
Jan-19 $ 72.40 $ 2.50
Generates peak annualized cash flow of $82MM/yr (Feb 2017 Strip pricing). Jan-20 $ 72.30 $ 2.50
Jan-21 $ 71.55 $ 2.50
Peak production 6,508 boe/d, with less than of 25% locations drilled. Jan-22 $ 71.25 $ 2.70
Jan-23 $ 72.00 $ 2.78
Risked IRR 85%, on strip pricing.(2) Jan-24
Jan-25
$
$
74.00
76.00
$
$
2.86
2.94
Jan-26 $ 78.00 $ 3.02
Jan-27 $ 80.00 $ 3.10
Jan-28 $ 82.00 $ 3.18

IRR vs IP (MRF) FORWARD MODEL (1)

Strip Pricing 8,000 $200.00
600
7,000
500
$150.00
6,000
400 NOI ($/mo); BOE/d

CAPEX ($MM/mo)
IP BBL/d

5,000
300 $100.00

4,000
200
$50.00
3,000
100
2,000
0 $-
0% 100% 200% 300% 400% 500%
1,000
IRR (%)
- $(50.00)
IP (bbl/d)
Aug-16 Mar-17 Sep-17 Apr-18 Oct-18 May-19 Dec-19 Jun-20 Jan-21 Jul-21

BOE/d NOI ($M/mo) Cummulative CAPEX ($MM) NOI Minus CAPEX (cummulative $MM)

(1) Based on Management estimates.

(2) IP 300 boe/d, $3.5 4.5 MM/well, 60% initial decline rates. Model contains 30 wells.

13
 In the southern part of IKMs asset base, there is at least 120 MMcf/d gas processing and transporting
capability that could bring OPEX to $4.25-$4.50/boe, thus becoming one of the lowest cost producers in
the basin.
Potentially lower OPEX and low decline conventional reservoirs provides long term value in a volatile
commodity environment. 560 km of operated pipelines gives Ikkuma several options to deliver gas to
multiple processing points.
Ownership in 3 gas plants and optionality in at least 3 additional, underutilized gas processing facilities.
With increasing production, trunk line volumes may be managed more effectively.

Elmworth
Narraway (7% WI)
Unused capacity ~100 MMcf/d

Edson
Horse
Copton (70% WI)
Leland (39% WI)
Unused capacity ~120 MMcf/d

IKM Pipeline

14
 Exceptionally low corporate decline drives best-in-class growth capital efficiencies.
Late-life production and strong conventional reserve bookings.
New wells add to strong PDP bookings.

CORPORATE PRODUCTION BASE DECLINE

45
40
35
IKM
30
% Base Decline

25
20
15
10
5
-
SGY

TVL
SGL

VET

TVE
AAV
RE

PEY
ECA

RMP
CJ

PSK

CNQ

LXE

POU
VII
PNE

SPE

KEL
IKM

PGF

LTS

PMT
SKX

GXE

TET

NVA

LEG
ZAR

TOG
GXO

MPG

PWT
HSE
JOY

WCP

BXO
CPG

CR

TOU
BXE
CVE

EGL

ERF

ATH

MQL
AET

PXX

CKE

MEI

LRE
TBE

KCK

BTE
YGR

PPY

RRX

CQE
NBZ

BNE
BNP
YO
FRU

OIL

ARX

BIR

DEE
Source: Averaged interpreted base declines of First Energy (July 2015), TD (Aug 2015), and Scotia (May 2015)

15
 IKM
$/boe

Source: Beacon Securities, September, 2016.

16
 IKM

IKM

Source: Data from Acumen, September, 2016.

17
Opportunities Identified to Date
52 gas development locations (>45 Mboe/d net potential).(1)
10-12 recompletions (>5 Mboe/d net potential).(1)

29 Locations : North
(5 Dunvegan, 2 Cadotte, 14 Falher, 8 Nik)

13 Locations : Central
(4 Dunvegan, 1 Cadotte, 6 Falher, 2 Nik)

10-12 Recompletions within Core Asset Base

(incl. Cardium, Dunvegan, Cadotte, Falher, Gething, Nik)

10 Locations : South
(5 Dunvegan, 3 Falher, 2 Nik)

(1) Of the 52 gas locations identified, 6 locations are booked as proven + probable.

18
 1800
IKM 13-26-58-7W6
1600

1400
Current Rate (boe/d)

1200

1000

800

600

400

200

0
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000
Cumulative BOE to date

Operator Well Date Boe Boed/d

Best-in-class recompletion results as compared to NBF Crescent Point 08-32-029-21W3/0 2015-07-08 8,612 41

top wells for January 2016. Crescent Point

Crescent Point
10-28-008-05W2/0
08-32-029-21W3/0
2015-07-11
2015-05-27
8,856
9,885
43
40
Tourmaline 14-11-056-27W5/0 2015-04-02 23,861 78

Proven offsets to drill. Shell 06-16-063-20W5/0 2015-11-18 25,660 342

ConocoPhillips 13-18-052-14W5/0 2015-07-31 35,895 194

About 6 offsetting locations that are 100% owned by IKM.

Cdn Nat 09-16-075-11W6/0 2015-03-20 51,961 163
Shell 08-25-040-08W5/0 2015-06-01 72,974 298
Encana 02-31-063-21W5/0 2015-06-21 84,987 378

Excellent returns, even at low commodity prices. Seven Generations

Encana
10-10-064-05W6/0
07-16-063-21W5/0
2015-04-06
2015-06-22
101,919
118,920
339
531
Seven Generations 04-35-063-05W6/0 2015-05-31 160,698 653
IKM 13-26-58-7W6 2015-09-01 183,000 1666
Peyto 16-33-043-12W5/0 2015-03-20 200,020 629

Source: National Bank Financial March 9, 2016 Industry Comment. Westbrick 15-19-045-11W5/0 2015-03-24 289,506 922

Public (GeoScout) data added for 13-26-58-7W6. Cdn Nat 15-28-053-25W5/0 2015-04-01 323,726 1,058

19
 In Q1 2015, completed one of the most prolific unstimulated wells in western Canada in recent years.
Recompletion and tie in capital of $1,200 k.
Tested at 20 MMcf/d (3,435 boed/d) and potential to flow at more than 30 MMcf/d (5,167 boe/d) at pipeline pressure
(gross, 50% net APO). Flow rates during test were constrained by surface equipment. Details of the flow test were
disclosed separately by the Corporation on April 6, 2016.
Each recompletion identified/de-risked ~6 additional drilling locations (12 wells de-risked total). Feb 2017 (Strip)
C$/bbl $/mcf
Jan-17 $ 71.25 $ 2.80
Presently flowing inline at approximately 4-6 MMcf/d. Jan-18 $ 72.75 $ 2.70
Jan-19 $ 72.40 $ 2.50
Jan-20 $ 72.30 $ 2.50
Jan-21 $ 71.55 $ 2.50
Jan-22 $ 71.25 $ 2.70
BREAKEVEN ANALYSIS Jan-23
Jan-24
$
$
72.00
74.00
$
$
2.78
2.86
$14,000 Jan-25 $ 76.00 $ 2.94
P70 Jan-26 $ 78.00 $ 3.02
$12,000
Jan-27 $ 80.00 $ 3.10
$10,000 Jan-28 $ 82.00 $ 3.18

$8,000 P90
RECOMPLETION INPUTS
$6,000
$4,000 P70 P90

$2,000 IP (MMcf/d) 12 6

$- Production (Bcf) 11 8

-$2,000 Recomplete/equip CAPEX ($MM)* $1.20 $1.20

-$4,000 Payout (years) 0.2 0.3

$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50
NPV10% ($M) at $3.00 flat price $12,067 $7,560.00

*2014 CAPEX estimate (costs could be 30% less than listed based on present industry discounts).

20
Why own IKM stock?
1. Unique business model matched with the right team
Experienced technical team with highly specialized engineering and geoscience skills.
Underexploited part of the basin: prolific conventional reservoirs proven to exist in bypass
zones, based on Ikkumas recompletion results to date.
Asset and land acquisitions have little competition, thus generating robust full-cycle
economics; acquired 14,354 acres of crown land at ~$4.50/acre in 2016.
2. Solid base production
Low cost producer.
Low corporate decline, generates exceptional production growth capital efficiency.
Natural gas production well hedged through 2017.
Leading G&A efficiencies.
3. Clear Path to Growth
Exceptional results to date: some of the best gas wells in Western Canada.
Transformational light oil pool discovery.
Multiyear drilling inventory (oil and gas) that has been de-risked with current recompletion
operations.
Gas recompletions extremely economic at very low gas prices; 10 well recompletion inventory
to be executed over the next 12 to 18 months.

21
MANAGEMENT BOARD OF DIRECTORS ANALYST COVERAGE
Tim de Freitas Robert Dales (Chairman) Acumen Capital Trevor Reynolds
President & CEO
Dave Anderson Beacon Securities Kirk Wilson
Dorothy Else
Executive VP Tim de Freitas Clarus Securities Rob Pare
Carrie Yuill
Charle Gamba Desjardins Jamie Kubik
VP Finance & CFO
Greg Feltham William Guinan (Corporate Secretary) First Energy Cody Kwong
VP Exploration Mike Kohut Haywood Securities Darrell Bishop
Kavanagh Mannas
BANKS PI Financial Brian Purdy
VP Operations
Yvonne McLeod The Toronto-Dominion Bank TD Securities Juan Jarrah
Senior VP Engineering ATB
CORPORATE OFFICE
Rich Rowe AUDITOR
VP Land Suite 2700, 605 5th Avenue SW
KPMG LLP
Calgary, AB T2P 3H5
LEGAL COUNSEL
T: (403) 261-5900
Borden Ladner Gervais LLP
www.ikkumarescorp.com
TRANSFER AGENT
Alliance Trust Company
RESERVE EVALUATORS
Sproule and Associates Ltd.

22
23
 Foothills delivers highest 450
CARDIUM PLAY BOOK(1) 50%
rate oil wells and leading 400
IP90 (boe/d) EUR (mboe) IRR Wells >50% Gas 45%
IRR Wells >50% Oil
economics in the basin. 350 40%
35%
300
Payout in 0.6 2 years at

IP (bbl/d); EUR (MBoe)

30%
250
C$40 C$80/bbl. 25%

IRR (%)
200
20%
Emerging oil play at IKM has 150
15%
the potential to deliver similar 100 10%
returns. 50 5%
0 0%

STOLBERG(1,2) IP WELL POPULATION

CARDIUM DATA BY AREA(1)

East Cent
Lochend Garrington Ferrier (38% Willesden Wilson Crk W Pembina Edson (44% Kaybob (78% Wapiti (45% Stolberg
Pembina Pembina
(78% liq) (85% liq) liq) Grn (45% liq) (71% liq) 82% liq) liq) liq) liq) (87% liq)
(82% liq) (85% liq)
IP90 (boe/d) 174 143 291 229 152 128 127 141 191 112 206 305
IP 90% Liquids 78% 85% 38% 45% 71% 82% 85% 82% 44% 78% 45% 87%
EUR (mboe) 199 173 381 323 159 174 194 178 213 250 312 424
EUR % Liquids 44% 60% 23% 30% 46% 68% 74% 67% 33% 55% 27% 51%
Cost ($mm) $2.9 $2.5 $2.9 $2.7 $2.2 $2.2 $2.4 $2.5 $2.5 $2.5 $2.9 $3.6
Sample Wells 138 436 163 487 180 537 137 801 80 61 91 35
NPV10* ($mm) $(0.1) $0.2 $1.5 $0.8 $0.0 $0.7 $0.9 $0.7 $0.0 $1.4 $0.3 $2.3
IRR 9% 12% 25% 16% 10% 18% 19% 19% 10% 24% 13% 43%
Breakeven WTI** $49 $45 $24 $36 $49 $40 $39 $40 $48 $34 $44 $31
Top Operators by Hz. Prod'n:
Pengrowth Pengrowth Orlen Bellatrix Tamarack Bonterra ARC Lightstream Long Run TORC Long Run Manitok
Lightstream Whitecap CNRL Penn West OMERS ARC Penn West Vermilion TORC Conoco Modern Petrus
Orlen Exxon Petrus Lightstream Regent Whitecap Bellatrix Whitecap Successor Repsol Husky Direct Enrg.

(1) TD Industry Note, June 2016.

(2) Sample population includes wells that penetrated Cordel oil pool in 2012-2013, which lowers Stolberg average EUR and IP.

24
 Reservoir Quality and Production Initial Production (IP) and Total Oil and Associated Gas Produced
Avg. Cal.
Peak Prod. Peak Cal. Peak Prod. Peak Cal. Rate
Rate (IP30, Rate (IP90, Rate (IP30, Rate (IP90, (IP30,
bbl/d) BOE/d) EUR (Oil) vs EUR (BOE) %Oil Count Phi*h bbl/d) BOE/d) bbl/d) EUR (Oil) vs EUR (BOE) %Oil Count
NARRAWAY 0.8 Cordel -Stol 151 63.3 61.5 269,282 301,479 89% 12.0
Berland 98.2 121 48,153 118,215 41% 19.0 0.8 Stol berg (Oi l ) 338 302.1 65.6 237,368 322,721 74% 23.0
E Pembina 148.8 91 69,252 96,838 72% 577.0 0.5 Berl a nd 98 121.0 84.7 48,153 118,215 41% 19.0
Edson 247.4 288 22,278 116,529 19% 50.0 0.4 Brown Ck 20 10.5 12.2 21,406 21,475 100% 2.0
Ferrier 184.7 317 59,577 224,236 27% 119.0 0.4 E Pembi na 149 91.1 81.1 69,252 96,838 72% 577.0
Fir 48.0 96 42,865 88,858 48% 14.0 0.4 Eds on (oi l ) 247 287.8 113.2 22,278 116,529 19% 50.0
Harme 185.0 190 65,367 102,254 64% 517.0 0.5 Ferri er (oi l ) 185 317.1 138.9 59,577 224,236 27% 119.0
Kaybob 91.8 145 106,455 139,951 76% 38.0 0.6 Fi r (Oi l ) 48 96.0 35.1 42,865 88,858 48% 14.0
Lochend 292.2 240 72,076 126,923 57% 153.0 0.5 Ha rme (Oi l ) 185 190.3 74.2 65,367 102,254 64% 517.0
Med River 208.9 362 62,073 124,519 50% 73.0 0.2 Ka kwa (Oi l ) 68 70.8 42.2 37,804 289,387 13% 11.0
N Pembina 105.0 184 94,027 97,003 97% 248.0 0.5 Ka ybob (Oi l ) 92 145.3 53.3 106,455 139,951 76% 38.0
Lochend (Oi l ) 292 240.4 116.3 72,076 126,923 57% 153.0
Notin-Carrot 62.5 112 47,727 75,473 63% 32.0 0.3
Med Ri ver (Oi l ) 209 362.0 60.3 62,073 124,519 50% 73.0
NW Pembina 213.9 184 69,965 97,003 72% 847.0 0.3
N Pembi na (Oi l ) 105 184.2 56.5 94,027 97,003 97% 248.0
Pine Creek 21.9 92 24,701 85,455 29% 13.0 0.1
N Smoky (Oi l ) 26 121.9 26.5 27,546 63,088 44% 5.0
Rosevear 67.6 140 89,657 135,637 66% 35.0 0.2 Notin-Ca rrot (Oi l ) 63 111.7 42.6 47,727 75,473 63% 32.0
Will Grn 224.5 274 57,521 155,105 37% 407.0 0.5 NW Pembi na (Oi l ) 214 184.2 55.5 69,965 97,003 72% 847.0
Wilson Ck 171.3 234 53,724 91,258 59% 157.0 0.2 Pi ne Creek (Oi l ) 22 91.6 27.6 24,701 85,455 29% 13.0
Wapiti 52.0 146 79,701 130,149 61% 53.0 0.6 Ros evea r (Oi l ) 68 140.4 40.2 89,657 135,637 66% 35.0
Kakwa 68.1 71 37,804 289,387 13% 11.0 0.8 Wi l l Grn (Oi l ) 224 273.9 91.6 57,521 155,105 37% 407.0
Cordel-Stol 150.6 63 269,282 301,479 89% 12.0 0.9 Wi l s on Ck (Oi l ) 171 234.2 90.8 53,724 91,258 59% 157.0
Stolberg 338.4 302 237,368 322,721 74% 23.0 1.2 Wa pi ti (Oi l ) 52 145.5 60.2 79,701 130,149 61% 53.0

25
26
 Discovered more than 20 years ago.
Peak production of 5,100 Bbls/d; individual wells with production potentially surpassing 1 MMBoe.
Early wells offset vertical wells with approximately similar initial rates and cumulative production to
Ikkumas Cardium of the Northern Alberta Foothills.
Comparable reservoir quality to Ikkumas Northern Alberta Foothills Cardium, though not as complexly
deformed.

STOLBERG CARDIUM
7,000 5,100 Bbl/d
Stolberg 7,520 boe/d peak prod.
6,000
Cardium
5,000

4,000

3,000

2,000

1,000

Sep-12

Sep-13

Sep-14

Sep-15
Jan-12

Jan-13

Jan-14

Jan-15

Jan-16
May-12

May-13

May-14

May-15

May-16
Oil (bbl/d) GOR (scf/bbl)

27
An example of a large resource captured through IP: 24-30 bbl/d
horizontal drilling in shallow bypass reservoirs:

Discovery vertical well (1997), 8-31-42-15w5.

IP 24-30 Bbls/d.
Produced 30 Mbbls.

Source: Geoscout

Source: Geoscout
IP: ~1,000 bbl/d
30 X multiple of vertical vs. horizontal.
Produced >200 Mbbls 52 API oil and 1 Bcf in 20 600 bbl/d

months.
This well was not stimulated, and free-flowed to 400 bbl/d
surface for all of its production history.

200 bbl/d

Source: Geoscout

Source: Geoscout

28
 Summary (HZ Multiplier)
IP-X EUR-X Vertical - HZ Well Multiplier:
Elm/Wapiti South-OIL (all wells outside Wapiti Pool) 6.2 5.5 the Cardium Formation in Elmworth /
Elm/Wapiti (near offsets) 9.3 6.8
Stolberg 15.4 6.2 Wapiti has the most similar reservoir
Harme-Oil (32-3) 12.4 1.9 characteristics, based on logs. On
Kaybob (60-20-22) 6.3 17.1
Pembina (45-11,12) gasy 5.7 0.7 average, horizontal wells in Wapiti
IKM Alberta Foothills benefit from a 9.3x increase on IP,
Vertcal Well #1 222 31,000
Vertcal Well #2 75 n/a 6.8x increase on EUR when compared
Use Elm/Wapiti near offset multlier
149
1,378
31,000
212,215
to near offset vertical wells.

The average of the two Cardium wells

Elm/Wapiti-Oil (near offset to vertical well
Vert (one well), offset pool is conv. Wapiti HZ
Elm/Wapiti South-OIL (all wells outside Wapiti Pool)
Vert (one well), offset pool is conv. Wapiti HZ
within the foothills trend was used
Peak
Prod. EUR
Peak Prod.
Rate EUR
Peak
Prod. EUR
Peak Prod.
Rate EUR
for an expected vertical IP of 149
bbl/d bbl bbl/d bbl bbl/d bbl bbl/d bbl Bopd. Applying the Wapiti HWM to
Mean 1 well 36 17,000 324.22 109,072 Mean 1 well 36 17,000 224.91 81,597
S-Mean 333.96 116,376 S-Mean 221.88 94,221 this number yields an expected
Median 284.01 95,706 Median 191.74 65,378
Count 25.00 25 Count 55.00 55 horizontal IP of 1378 Bopd and
Std. Dev. 228.99 69,304 Std. Dev. 190.55 58,055
r 0.90 0.94 r 0.93 0.93 212,215 Bbls EUR.
Peak (bbl/d) EUR (Mbb)
Dist 31.74 4,909 Dist Peak (bbl/d) EUR (Mbb)
Min 47.4 14,597 Min 31.7 1,931 HEAVILY RISKED well IP of 250-400
P99 101.8 32,742 P99 29.8 5,435
P90 140.5 46,009 P90 65.2 15,862 Bopd were used for modelling.
P80 158.8 52,356 P80 90.8 24,901

P75 177.2 58,798 P75 102.9 29,555

P70 216.1 72,508 P70 115.2 34,471
P60 260.1 88,198 P60 141.1 45,512 Note: Stolberg average well multiplier is higher
P50 313.1 107,284 P50 170.7 59,009
P40 381.8 132,299 P40 206.5 76,510 due to the natural fracture system in place
P30
P25
426.2
481.6
148,579
169,075.1
P30
P25
253.1
283.2
101,017
117,819.6
(unstimulated vs stimulated).
P20 664.6 237,580.3 P20 321.1 139,838.9
P10 1,427.9 532,914.9 P10 446.8 219,529.8
P1 1,200.7 299,411.9 P1 978.8 640,703.5
Max 1,200.7 299,411.9 Max 1,200.7 299,411.9

29