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

ATHABASCA OIL CORPORATION FOCUSED | EXECUTING | DELIVERING JULY 2020

ATHABASCA - PREMIER RESOURCE EXPOSURE LIGHT OIL ~40,000 boe/d* THERMAL OIL MONTNEY ~90% liquids ~$500MM EV $170MM Liquidity HANGINGSTONE 95 year 2P RLI 1,300 MMboe 2P 455 MMboe Proved LIGHT OIL CORNER DUVERNAY LEISMER * Productive capacity: ~20,000 bbl/d Leismer, ~10,000 bbl/d Hangingstone, ~10,000 boe/d Light Oil 1 ATHABASCA OIL (TSX:ATH) Footnotes and additional information included in the back as endnotes

Q2 2020 HIGHLIGHTS 27,067 boe/d $6.2MM Operating Income 87% liquids (impacted by COVID19 related price declines) (voluntarily curtailments in response to low prices) June Netbacks $6MM Capex $170MM Liquidity $17/boe Light Oil 90% Thermal / 10% Light Oil $167MM unrestricted cash $22/bbl Leismer 2 ATHABASCA OIL (TSX:ATH) Footnotes and additional information included in the back as endnotes

THE TRANSFORMATION $486MM $400MM $265MM Light Oil JV Contingent Infrastructure FCF Generation COVID19 with Bitumen Sale Murphy Oil Royalty Disciplined Manage Resource Operations Business Appraisal 2020 2020 2016 2017 2018 2019 Momentum Strong Balance Funding Sheet Maintain not Secured Strong Future Growth $560MM $70MM Liquidity Projects Leismer Contingent Acquisition Bitumen Royalty from Equinor OPERATING NETBACKS PRODUCTION $26/boe $21/bbl $20/bbl $14/boe ‐$17/bbl ‐$5/bbl 3 ATHABASCA OIL (TSX:ATH) *Corporate netback excludes hedging

BUSINESS ENVIRONMENT & COVID-19 IMPACT SUPPLY/DEMAND BALANCE (MBBL/D) COVID‐19 IMPACT o WHO declared COVID‐19 a pandemic in March o Resulted in a material disruption to global economy OIL PRICE IMPACT AND RECOVERY* o Estimated peak oil demand impact of 20 mmbbl/d in April* o Supply/demand deficit of ~4 mmbbl/d in July* o Inventories starting to drawdown from elevated levels Source: Goldman Sachs Global Investment Research • ~25mmbbl Alberta storage ‐35% from peaks in January** 12 MONTH TRAILING PRICES (WTI & WCS) • Global storage ‐15% from peaks in mid‐May* $60 LONG TERM EGRESS & PIPELINES UNDER CONSTRUCTION $50 o Keystone – in service $40 $/bbl • AOC capacity of 7,200 bbl/d $30 o Trans Mountain Expansion – Government of Canada owned $20 • AOC capacity of 20,000 bbl/d $10 WCS (C$/bbl) o Keystone XL – Government of Alberta backed WTI (US$/bbl) $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun • AOC capacity of 10,000 bbl/d Source: Bloomberg * Goldman Sachs Global Investment Research 4 ATHABASCA OIL (TSX:ATH) ** NBC Commodities / Genscape

RESPONSE TO COVID-19 ACTIONS TAKEN Ensured the Safety of Staff Maintained Strong Maximized and Contractors Funds Flow Corporate Liquidity • Halted capital program • Hangingstone shut‐in/restart • Enacted Business Continuity Plan ($40MM reduction) • Voluntary curtailments at • Developed site specific plans with • Upsized Contingent Bitumen Leismer and Placid Alberta Health guidelines Royalty ($70MM cash) • Reduced 2020 opex ($15MM) • Successful transitioned back to • Reduced future KXL service the office with site specific pre‐ • G&A optimization ($6MM) • Proactive hedge program cautionary measures in place RESULTS TO DATE MANAGED BUSINESS SOLIDIFIED SAFETY AND MOMENTUM BALANCE SHEET SECURITY OF SITES Defer PDP for stronger prices $170MM liquidity AOC continues to advance liquidity enhancing opportunities and cost savings initiatives 5 ATHABASCA OIL (TSX:ATH) Footnotes and additional information included in the back as endnotes

OUTLOOK, CAPITAL STRUCTURE & RISK MANAGEMENT CAPITALIZATION OVERVIEW (ATH‐TSX) 2020 OUTLOOK Basic Shares Outstanding 531 MM Market Capitalization ($0.18/sh) $96 MM o $85MM capital program ($25MM H2 2020) Q2/20 Net Debt $420 MM o Q4 production forecast 32,000 – 34,000 boe/d Total Enterprise Value $516 MM o Ramp‐up in volumes following curtailments Term Debt (9.875% due Feb 2022) US$450 MM and the Hangingstone suspension Cash (Unrestricted / Restricted) $167 / $152 MM Liquidity $170 MM Tax Pools (total / NCL & CEE) $3.2 / $2.1 Billion HEDGING SUMMARY 2020 2021 . Q3 Q4 Q1 Q2‐Q4 Instrument Volume Price C$ Price US$ Volume Price C$ Price US$ Volume Price C$ Price US$ Volume Price C$ Price US$ WTI 3‐ Way Collars 6,000 69.27 ‐ 78.00 ‐ 84.98 49.58 ‐ 55.83 ‐ 60.83 6,000 69.27 ‐ 78.00 ‐ 84.98 49.58 ‐ 55.83 ‐ 60.83 WTI Collars 8,900 54.18 ‐ 62.05 39.82 ‐ 45.61 11,000 49.92 ‐ 61.99 39.69 ‐ 45.46 WTI Swaps 3,000 74.87 55.03 3,000 74.87 55.03 WTI Calls Sold 8,900 74.83 55.00 WCS/WTI Diff Swaps 16,000 (24.19) (17.78) 16,000 (23.38) (17.19) 11,000 20.09 14.77 Diluent (C5) Swap 1,000 55.78 41.00 Canadian price is based on an FX rate of 1.36 Q1/20 Net debt = FV term debt + Working Capital Deficit (adj. for risk management contracts and restricted cash) 6 ATHABASCA OIL (TSX:ATH) Q1/20 Liquidity = cash & equivalents + available credit facilities

THERMAL OIL – LEISMER LEISMER DEVELOPMENT LEISMER – TOP TIER OIL SANDS PROJECT o Current production ~18,500 bbl/d (3.4x SOR) PAD 8N PAD 8N PAD 8S PAD 8S o 695 mmbbl 2P reserves; 95 year 2P RLI PAD 6 PAD 6 CPF CPF o US$23 WCS operating break‐even (US$12.50 WCS diff) PAD 6 PAD 6 PAD 4PAD 3 PAD 4 PAD 3 PAD 1 PAD 1 PAD 2 PAD 2 2020 ACTIVITY PAD 7 PAD 7 o Water disposal project in‐service to reduce opex Existing Surface Pads High : 40 Existing Drainage Areas o NCG co‐injection supporting lower SORs (‐15% Y/Y) Pad L7 Pad L8N Low : 10 Pad L8S LEISMER PRODUCTION HISTORY 25,000 4.4x DEVELOPMENT POST PRICING RECOVERY 4.2x 20,000 o L6 infills and L7 edge well pairs 4.0x 15,000 o L8 sustaining pad 3.8x bbl/d SOR 3.6x o 40,000 bbl/d AER approval 10,000 3.4x 5,000 NCG and Pad L7 has 3.2x improved SORs 0 3.0x Jan‐18 Mar‐18 May‐18 Jul‐18 Sep‐18 Nov‐18 Jan‐19 Mar‐19 May‐19 Jul‐19 Sep‐19 Nov‐19 Jan‐20 Mar‐20 May‐20 7 ATHABASCA OIL (TSX:ATH)

THERMAL OIL – HANGINGSTONE HANGINGSTONE DEVELOPMENT HANGINGSTONE PROJECT o ~9,500 bbl/d productive capacity (~4.5x SOR) o 177 mmbbl 2P reserves; 55 year 2P RLI o US$31 WCS operating break‐even (US$12.50 WCS diff) RESUMING OPERATIONS o Suspended operations in April due to pricing o Planned turnaround activities completed o Restarting field operations in September GREENFIRE HANGINGSTONE PILOT SHUT‐IN o Hedging in place to protect downside volatility o Q4/20 & Q1/20 collar at US$25 – $31 WCS pricing 10,000 30 Oil Rate Producers Online 30 25 8,000 MONTHS ANALOG RESERVOIRS 20 6,000 Well Count bbl/d o Analog reservoirs show positive results after prolonged 15 4,000 shut in periods (i.e. JACOS/Greenfire Hangingstone Pilot) 10 2,000 5 0 0 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 8 ATHABASCA OIL (TSX:ATH)

PLACID MONTNEY PLACID ACTIVITY HIGHLIGHTS – OPERATED 70%WI 16‐30 Pad 6 wells o 80,000 gross prospective acres 2‐5 Pad 4 wells o 200 well development inventory o 200 – 300 bbl/mmcf initial free liquids o Owned and operated infrastructure o $22/boe 2019 operating netback Wells ATH Montney Spud in Past Year Spud +1 Year RECENT ACTIVITY PRODUCTION HISTORY 8,000 o 10 new wells placed on production in July 7,000 o Suspended capital activity for the remainder of 2020 6,000 and until stronger commodity prices 5,000 boe/d 4,000 3,000 2,000 1,000 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 Footnotes and additional information included in the back as endnotes 9 ATHABASCA OIL (TSX:ATH)

KAYBOB DUVERNAY KAYBOB DUVERNAY DUVERNAY HIGHLIGHTS KAYBOB NORTH KAYBOB EAST o Significant resource exposure (~220,000 acres) o ~700 remaining locations across the play SIMONETTE KAYBOB WEST o Strong condensate yields (200 – 1,000 bbl/mmcf) o Owned and operated infrastructure SAXON TWO CREEKS o $30/boe 2019 operating netback Volatile Oil Window Gas Condensate Window JOINT VENTURE HIGHLIGHTS (30% WI) Industry Duvernay Hz Wells ATH Duvernay Hz Wells o $ 1B gross initial investment; $75MM net to retain 30% working interest PRODUCTION HISTORY o 2020 budget: 8 drills, 13 completions, 16 tie‐ins 6,000 o Capital activity complete for 2020; ~90% of land held 5,000 4,000 RECENT PAD RESULTS boe/d 3,000 IP30 IP60 IP90 boe/d (% liquids) boe/d (% liquids) boe/d (% liquids) 2,000 Kaybob North 525 (90%) 582 (91%) 569 (90%) (2 wells) 1,000 Kaybob East 1,000 (88%) 913 (86%) 840 (85%) 0 (9 wells) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Two Creeks 583 (100% ) 549 (100%) 500 (100%) 2018 2019 2020 (5 wells) 10 ATHABASCA OIL (TSX:ATH) Footnotes and additional information included in the back as endnotes