Canadian Oil Sands February 2015 Summit Forward-Looking Statements - PDF document

Canadian Oil Sands February 2015 Summit

Forward-Looking Statements Certain statements, estimates and financial information contained in this presentation ("Estimates") constitute forward- looking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the Estimates or results implied or expressed in such forward-looking statements. While presented with numerical specificity, the Estimates are based (i) on certain assumptions that are inherently subject to significant business, economic, regulatory, environmental, seasonal, and competitive uncertainties, contingencies and risks including, without limitation, assumptions of resource, ability to obtain debt and equity financing, capital costs, construction costs, well production performances, operating costs, commodity pricing, differentials, royalty structures, regulatory approvals, and other known and unknown risks, all of which are difficult to predict and many of which are beyond the control of Grizzly Oil Sands ULC ("Grizzly"); and (ii) upon assumptions with respect to future business decisions that are subject to change. There can be no assurance that the Estimates or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the Estimates. Under no circumstances should the inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by Grizzly, or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that Grizzly will achieve or is likely to achieve any particular results. The Estimates are made as of the date of this presentation and Grizzly disclaims any intent or obligation to update publicly or to revise any of the Estimates, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forward-looking statements or information due to the inherent uncertainty therein. There are significant differences in the criteria associated with the classification of reserves, prospective resources and contingent resources. Contingent resources and prospective resources estimates involve additional risks, specifically the risk of not achieving commerciality and exploration risk, respectively, not applicable to reserves estimates. No adjustments for these risks have been made in the groupings of reserves and recoverable resources. All reference to dollars in this presentation should be assumed to refer to Canadian dollars, unless otherwise noted. All references to reserves and or resources represent Grizzly’s interest in reserves and resources prior to the deduction of Crown royalties, unless otherwise noted. Grizzly Oil Sands 2

Investment Highlights • > 800,000 net acres in the Athabasca and Peace River oil sands regions (100% One of the Largest operated, nearly 100% WI) focused on SAGD development Oil Sands Land ~ 3.1 billion bbls of 2P+Contingent Resources (1) across more than 30 project areas • Positions in Alberta • Privately owned by Wexford Capital and Gulfport Energy Corporation • Steam injection at Algar Lake Phase 1 commenced in February, 2014 Algar Lake • Current production is ~1,000bbls/d Current Operations • First crude oil shipped from Windell to the U.S. Gulf Coast in June, 2014 Using Rail to • Windell truck-to-rail terminal at Conklin, Alberta is operational to ship Algar Lake Consistently and 3rd party oil and receive diluent Access Premium • 350 rail car fleet leased to handle Algar production Markets Repeatable & • Potential to have > 20 projects ready for SAGD development in the next 5 years, Scalable with bitumen production capability of ~170,000 bbls/d Development • Grizzly’s “ARMS” development model enables repeatable and scalable project Model development, reducing execution and financing risk 1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2014 Grizzly Oil Sands 3

Accomplishments Since Last Conference • “First Oil” was achieved in May 2014 • Current bitumen production is ~1,000 bbls/d Algar Lake • Anticipate peak production of ~6,000 bbls/d by late 2015 • Filed a 12,000 bbl/d regulatory development application in Q4 2013. First round of Supplemental Information Requests (SIRs) have been received and responded to May River • Completed an 83 km 2D seismic program in Q1 2014 to support a future full field delineation drilling program • Developed delineation drilling and seismic programs and regulatory work plans on this Cadotte 345 mmbl Contingent Resource (1) Peace River play • Completed construction and commenced operations at the Windell truck-to-rail Rail terminal Strategy • Shipped >500 rail cars of crude oil to the U.S. Gulf Coast • Exited Louisiana rail to barge terminal project 1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2014 Grizzly Oil Sands 4

800,000+ Net Acres of Alberta Oil Sands Leases Grizzly Oil Sands Lease Other Oil Sands Lease Alberta Oil Sands Areas Producing Project Under Construction Thermal Project City of Fort McMurray City of Peace River Exposure to All Play Types in Athabasca & Peace River 5

Grizzly Assets • Grizzly has a high quality resource based on Steam Assisted Gravity Drainage (“SAGD”) with additional upside using other reservoir recovery processes • 3.1 billion bbls of 2P + Contingent Resources (1) • Resources primarily located in low risk clastic reservoirs, with some exposure to the carbonates • Two thirds of current lease position remains unexplored, which provides upside potential Potential (1) 2P Reserves Proved Contingent 2P Reserves + Contingent Plateau Clastics (Existing Technologies) (1) Reserves Resources (mmbbls) Resources Production (mmbbls) (mmbbls) (mmbbls) (bbls/d) Operating Algar Lake 67 103 46 149 21,000 Near-Term Development Projects May River 0 157 681 838 122,000 Cadotte 0 0 345 345 34,000 Thickwood 0 0 109 109 18,000 Other Projects Additional Growth Properties 0 0 1,608 1,608 205,000 Total 67 260 2,789 3,049 400,000 1. Source: GLJ Petroleum Consultants Ltd. as at December 31, 2014; All Contingent Resources herein refer to “Best Estimate”. Grizzly Oil Sands 6

Grizzly Development Portfolio Windell Algar Rail Lake Terminal Phase 1 Algar Lake Phase 2 May River Phase 1 Value Thickwood $ / BOE Cadotte 2 billion May River barrels of Full Field resources on ~30+ properties 1 ST OIL DEVELOPMENT PROJECT CONSTRUCTION PROJECT HARVEST LAND RESOURCE APPLICATION DEVELOPMENT PERFORMANCE CAPTURE DELINEATION FILED APPLICATION RECEIVED DEMONSTRATED TIME TO PRODUCTION DE ‐ RISKING OF ASSETS Creating Value by Advancing Project Development 7

Grizzly Project Development Portfolio 2P Reserves + Production Contingent Potential Resources (2) # ARMS (bbls/d) (1) Property Plants (mmbbls) Status Algar Lake Phase 1 1 6,000 50 Producing Algar Lake Phase 2 1 6,000 50 Regulatory Approval Received Regulatory Application (filed Dec 2013) and 1 st round May River Phase 1 2 12,000 157 of SIRs have been received and responded to May River Full Field 12 90,000 681 Delineation program planned Cadotte 7 50,000 345 Delineation program planned Thickwood 1 5,000 109 Regulatory Application filed December 2012 Total 24 170,000 1,392 1. Management Estimates; 2. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2014 Attractive Scalable Development Portfolio 8

Grizzly’s ARMS Development Model • Built and commissioned Grizzly’s 1 st ARMS Plant at Algar Lake • Demonstrated that ARMS plant works • Benefits of the ARMS development model include: • Scalable and manageable growth to match reservoir development requirements • Improved redundancy and operability • Lower cost • Lower project execution and financing risk • Documented learnings from the first plant to apply to the next project Grizzly Oil Sands 9

Algar Lake Property ~ 12,000 bbls/d • Commenced reservoir steam injection at T88 Algar Lake Phase 1 in February, 2014 • Converted all 10 well pairs to “SAGD” T87 production mode by September 2014 • Experiencing higher fine sand production than anticipated T86 • Current production is ~1,000 bbls/d T85 • Full production ramp up expected by Q4/2015 T84 • GLJ has assigned 103 mmbbls of 2P Reserves and 46 mmbbls of Contingent Resources T83 • Algar Lake Phase 2 regulatory approval is in hand T82 T81 R14 R13 R12 R11 R10 R8W4 Grizzly Oil Sands 10

Algar Lake Reference Well AB-16-10-85-12W4 • Up to 22 metres thick bitumen pay • No bottom water or top gas Wabiska • 18+ metre thick bitumen pay outside of the initial development area Wabiskaw ‐ D McMurray 18m Devonian Devonian Single Clean Channel Sand 11

Algar Lake Reservoir Quality Gamma Ray Logs Over Horizontal Production Well Trajectories Excellent Reservoir Quality over Entire Well Length 12