ATHABASCA OIL CORPORATION FOCUSED | EXECUTING | DELIVERING JANUARY - PowerPoint PPT Presentation

ATHABASCA OIL CORPORATION FOCUSED | EXECUTING | DELIVERING JANUARY 2020 CORPORATE UPDATE

ATHABASCA – PREMIER RESOURCE EXPOSURE LIGHT OIL 37,500 boe/d THERMAL OIL MONTNEY 88% liquids $600MM EV $335MM Liquidity HANGINGSTONE 90 year 2P RLI 450 MMboe Proved 1,280 MMboe 2P LIGHT OIL CORNER DUVERNAY LEISMER 1 ATHABASCA OIL (TSX:ATH) Footnotes and additional information included in the back as endnotes

ATHABASCA – THE TRANSFORMATION $400MM 2019 Capital Light Oil Contingent Program Funded surpasses Bitumen Disciplined within Funds Flow 10,000 boe/d Royalty Operations Resource Appraisal Strong Balance 2016 2017 2018 2019 2020 2020 Sheet Funding not Secured Future Growth Projects $560MM $486MM $265MM Balance Sheet Leismer Light Oil JV Refinancing Infrastructure with Acquisition Sale with 5 year term Murphy Oil from Equinor OPERATING NETBACKS PRODUCTION Thermal Oil 40 Light Oil $25/boe 30 mboe/d $21/bbl $19/bbl 20 $14/boe 10 0 2016 2017 2018 2019 ‐$17/bbl ‐$5/bbl 2 ATHABASCA OIL (TSX:ATH) *Corporate netback excludes hedging

ATHABASCA – DRIVE TO FREE CASH FLOW 60 PRODUCTION SUSTAINABLE PRODUCTION 50 Thermal Oil Light Oil 40 o Low corporate sustaining capital mboe/d 30 • 2020: $125MM (~$10/boe) 20 o Flexible Light Oil development 10 0 o Operated liquids rich Montney 2018 2019 2020 C CAPITAL o Duvernay funded through joint venture 300 200 $MM COMPELLING FREE CASH FLOW OPPORTUNITY 100 Capital offset by: o Competitive netbacks (Q3/19) $265MM infrastructure sale 0 o $23.50/boe Light Oil 2018 2019 2020 o $25.25/bbl Leismer FUNDS FLOW (US$17.50 WCS DIFF) 300 US$57.50 o Free cash flow optionality in the future US$60 US$65 200 US$70 $MM Annual unhedged funds flow sensitivity 100 ~C$70MM for US$5 WTI 0 2018 2019 2020 3 ATHABASCA OIL (TSX:ATH) Footnotes and additional information included in the back as endnotes

ATHABASCA – 2020 BUDGET CORPORATE FUNDS FLOW OUTLOOK o Production: 36,000 – 37,500 boe/d (88% liquids) WTI (US$) o Funds flow: $125MM at US$57.50 WTI $55 $60 $65 $70 o Capital: $125MM* $15.00 $130 $185 $230 $275 WCS Diff (US$) $17.50 $95 $155 $200 $245 THERMAL OIL o Production: 26,000 – 27,000 bbl/d $20.00 $65 $120 $170 $210 o Capital: $65MM o Major projects: long lead initiatives for Pad L8, water disposal NET DEBT / EBITDA well, Hangingstone turnaround, routine pump changes $55 $60 $65 $70 LIGHT OIL $15.00 2.0x 1.3x 1.0x 0.7x WCS Diff (US$) o Production: 10,000 – 10,500 boe/d (55% liquids) $17.50 2.7x 1.7x 1.2x 0.9x o Capital: $60MM net $20.00 3.6x 2.1x 1.5x 1.1x o Montney: complete and tie‐in two pads (10 wells) o Duvernay: 7 drills, 13 completions, 16 tie‐ins • ~$185MM gross (~$30MM net); exposure protected by JV carry *Capital excludes ~$9MM of capitalized G&A 4 ATHABASCA OIL (TSX:ATH) Footnotes and additional information included in the back as endnotes

CANADIAN HEAVY OIL OUTLOOK WCSB BASIN EGRESS CURRENT LANDSCAPE o Government mandated curtailments and crude by rail remain a necessary bridge to pipelines MID‐TERM EGRESS +800MBBL/D o Pipeline optimizations (Mainline, Keystone etc.) o Incremental crude by rail o New capacity (370,000 bbl/d ENB L3R) LONG‐TERM (2022+) Source: Peters & Co. Research – North American Crude Oil Outlook (01‐06‐2020) WCSB CRUDE BY RAIL o 590,000 bbl/d Trans Mountain Expansion 400 o 830,000 bbl/d on Keystone XL 350 300 mbbl/d 250 200 Strong Global Heavy Demand 150 100 ATH WCS differential expectation: 50 Mid‐term: <US$20 Long‐term (2022+) <$US15 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2018 2019 2020 Source: Canadian Energy Regulator & RBN Energy Inc. *Other includes Express, Rangeland and Trans Mountain pipelines. 5 ATHABASCA OIL (TSX:ATH) **WCSB oil volumes net of domestic refinery demand.

THERMAL OIL MARKET ACCESS & RISK MGMT THERMAL OIL EGRESS DIVERSIFYING SALES TO THE US GULF COAST Current Egress DILBIT SALES LT Egress EXPOSURE* o Capacity secured on Keystone open season AOC Thermal o 7,200 bbl/d commencing in 2020 at pipeline economics Leases US Gulf Hedged Coast WCS Diff o Provides access to heavy oil refineries in PADD III ~20% ~20% HEDGING Alberta WCS o Synthetic rail = apportionment protection + financial hedge ~60% Enbridge South o 2020 9,400 bbl/d** at ~US$19.50 WCS diff Cheecham Terminal o WTI Enbridge Storage o 2020 13,500 bbl/d with a ~US$56.50 WTI floor Waupisoo 130,000 bbl for apportionment o Upside retained to US$60 – $65 WTI (~50% collars) management Edmonton o Internal hedge = Light Oil production offsets Thermal Oil costs Hardisty o ~7,250 bbl/d short condensate Enbridge Mainline Mid‐west (PADD II) o ~16 mmcf/d short gas (common carrier line) TC Energy Keystone Trans Mountain Expansion LONG TERM EGRESS SECURED FOR DILBIT USGC (PADD III) 20,000 bbl/d 2022+ 7,200 bbl/d International markets o 20,000 bbl/d on TMX Expansion TC Energy Keystone XL 25,000 bbl/d 2022+ o 25,000 bbl/d on Keystone XL *Q4/20 dilbit sales exposure 6 ATHABASCA OIL (TSX:ATH) ** 8,000 bbl/d protected from apportionment through direct sales to refineries

ATHABASCA – DIFFERENTIATED OIL EXPOSURE PEER LEADING LIGHT OIL NETBACKS (Q3/19) COMPLEMENTARY ASSETS o Diversified operating income (45% LO & 55% TO) o Top decile Light Oil netbacks ($23.50/boe Q3/19) o Competitive Leismer netbacks ($25.25/bbl Q3/19) o Minimal gas exposure (~16 mmcf/d net short) UNIQUE POSITIONING AMONGST PEERS CASH FLOW SENSITIVITY (2020E) o Compelling valuation o 1.5x 2020e EV/DACF vs. peers at 3.0x* o Low net debt with strong liquidity o 1.1x 2020e D/CF vs. peers at 1.4x* o $335MM liquidity (Q3/19) Footnotes and additional information included in the back as endnotes Peters & Co. Research – Oil Price Sensitivities (12‐20‐2019). Upside US$65 WTI, Base US$58 WTI, US$18 WCS diffs 7 ATHABASCA OIL (TSX:ATH) * 2020 valuation and debt metrics based on upside pricing scenario. ATH share price $0.51.

LIGHT OIL MONTNEY & DUVERNAY

PLACID MONTNEY PLACID ACTIVITY 16‐30 Pad HIGHLIGHTS – OPERATED 70%WI 6 wells 2‐5 Pad o 80,000 gross prospective acres 4 wells • 200 well development inventory 1 • ~$23/boe operating netback (2020e) • 200 – 300 bbl/mmcf initial free liquids Wells ATH Montney Licensed Montney ACTIVITY OVERVIEW PLACID PRODUCTION (NET) o 2016 – 2019: 32 wells (7 pads) on‐stream o 2020 Budget: o Complete and tie‐in two pads (10 wells) Footnotes and additional information included in the back as endnotes 9 ATHABASCA OIL (TSX:ATH)

PLACID MONTNEY – STRONG ECONOMICS PRODUCTION PLOT INTERNAL TYPE WELL PARAMETERS Rate Sales Gas C5+ liquids boe/d mmcf/d bbl/d % IP30 1,000 2.6 501 57% IP90 875 2.4 421 55% IP365 600 1.8 262 49% mboe bcf mbbl % EUR 675 2.2 246 45% ~25 bbl/mmcf plant recovered NGLs included in IPs & EURs CUMULATIVE CONDENSATE PRODUCTION INTERNAL TYPE WELL ECONOMICS Gen 1 US$WTI $55 $60 $65 140 200 – 300 bbl/mmcf Gen 2 initial free liquids cuts Gen 3 (facility restricted wells) Condensate Production (Mbbl) 120 Well Cost $MM ~$8MM drill & completed (2,750m hz) Gen 3 (unrestricted wells) (~60% liquids) Internal Type Curve 100 Payback 26 21 18 months 80 IRR BT 35% 49% 64% % 60 NPV10 BT $2.6 $3.8 $4.9 $MM 40 Netback $25.25 $28.25 $31.25 $/boe 20 PDP F&D 11.8 $11.75 $11.75 $/boe 0 Recycle Ratio 2.1 2.4 2.7 x 0 30 60 90 120 150 180 210 240 270 300 330 360 Days Cap Effcy (IP365) 12985.5 $12,985 $12,985 $/boed Footnotes and additional information included in the back as endnotes Flat long term pricing assumed in internal type well economics 10 ATHABASCA OIL (TSX:ATH) US$7.50 MSW diff, C$1.50 AECO, 0.75 FX

KAYBOB DUVERNAY DUVERNAY HIGHLIGHTS JOINT VENTURE HIGHLIGHTS (30% WI) o Significant resource exposure (~210,000 acres) o Cash/carry structure minimizes financial exposure o Strong condensate yields (200 – 1,000 bbl/mmcf) o $ 1B gross 4 yr program; $75MM net to retain 30%WI o Royalty advantage (5% vs. ~25% US shale plays) o 2020 budget: ~$185MM ($30MM net) o Majors are active (Shell & Chevron) o 7 drills, 13 completions, 16 tie‐ins KAYBOB DUVERNAY ‐ INDUSTRY AND JV ACTIVITY 2 well pad (16‐29)* – IP avg per well IP30 ~775 boe/d (93% liquids) 16‐25 well* KAYBOB NORTH IP120 ~625 boe/d (93% liquids) 1 IP30 ~750 boe/d (91% liquids) IP120 ~650 boe/d (90% liquids) 2 well pad (5‐19)* – IP avg per well 1 IP30 ~675 boe/d (95% liquids) IP90 ~500 boe/d (94% liquids) 3 well pad (8‐3) – IP avg per well IP30 ~1,600 boe/d (89% liquids) IP60 ~1,300 boe/d (88% liquids) 2 2 SIMONETTE 2 2 KAYBOB EAST KAYBOB WEST 1 1 2 TWO CREEKS Legend Volatile Oil Window (>400 bbl/mmcf initial CGR) Gas Condensate Window SAXON (<400 bbl/mmcf initial CGR) Industry Duvernay Hz Wells ATH Duvernay Hz Wells # Upcoming wells & next phase of activity (# of wells per pad) *IPs rounded to the nearest 25 boe/d with volumes adjusted for shrinkage. 11 ATHABASCA OIL (TSX:ATH) Two Creeks and Kaybob West wells not tied into permanent infrastructure with liquids currently trucked. Footnotes and additional information included in the back as endnotes