Corporate Presentation April 2019 Forward-Looking Statement This - PowerPoint PPT Presentation

Corporate Presentation April 2019

Forward-Looking Statement This presentation contains forward-looking statements. More particularly, this presentation contains statements concerning anticipated: business strategies, plans and objectives; potential development opportunities and drilling locations, expectations and assumptions concerning the success of future drilling and development activities, the performance of existing wells, the performance of new wells, decline rates, recovery factors, the successful application of technology and the geological characteristics of our properties; cash flow; oil & natural gas production growth and mix; reserves; debt and bank facilities; amounts and timing of capital expenditures; hedging results; primary and secondary recovery potentials and implementation thereof; and drilling, completion and operating costs. Statements relating to "reserves" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserve values may be greater than or less than the estimates provided in this presentation. The forward-looking statements are based on certain key expectations and assumptions made by Tangle Creek, including 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. Although Tangle Creek believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Tangle Creek can give no assurance that they will prove to be correct. 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. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Furthermore, new risk factors emerge from time to time, and it is not possible for Tangle Creek to predict all of such factors and to assess in advance the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The above summary of assumptions and risks related to forward-looking statements in this presentation has been provided in order to provide potential investors with a more complete perspective of our current and future operations and as such information may be not appropriate for other purposes. The forward-looking statements contained in this presentation are made as of the date hereof and Tangle Creek undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. 2

Tangle Creek Overview Private growth-oriented oil producer with concentrated land position in West Central Alberta  Private company founded in 2010  Owners include ARC Financial, Wells Fargo and Camcor Hwy 32  Focused on light-tight oil; demonstrated experience with tight, unconventional reservoirs Hwy 43 Tangle Creek  Concentrated assets – strategically positioned in Field Office Waskahigan West Central Alberta  Two high margin light oil properties: Kaybob Montney at Waskahigan  Windfall Dunvegan at Kaybob  Carrot Creek  Strong organic growth profile Hwy 16  Light oil drilling inventory of over 300 locations  Significant infrastructure in place: Owned and operated facilities with low operating  30 miles costs Production (boe/d) 2018 Production 7,869 % Liquids 53% Reserves (mmboe) 1 PDP 13.5 Proved 27.2 Proved + Probable 51.1 1. From December 31, 2018 Sproule year-end reserves evaluation. 3

Management and Governance Strong leadership from highly experienced management team and board of directors Management Team  Technical Management Team with extensive oil & gas experience CEO CFO Vice President, Vice President, Vice President, Vice President, Director, Business Engineering Production Exploration Land Development Glenn Gradeen J.P. Buyze Ben Makar Greg Kondro Alison Essery Jim Junker Robyn Lore Berkana, Rosetta, Ocelot Rosetta, Ocelot Nordegg, Burmis, Wascana, Berkana, Rosetta, Kallisto Trident, UBS Securities Cenovus, Encana Conoco-Burlington, Shell Shell Board of Directors  Experienced Board of Directors provides corporate governance and strategic guidance Lauchlan Currie Larry Jones Jim Pasieka Jeff Prentice Dan Botterill Ian Fergusson Glenn Gradeen Chairman Independent Director McCarthy Tetrault. ARC Financial Corp. ARC Financial Corp. Independent Director Camcor Partners Inc.. Tangle Creek Energy Ltd. 4

The Vision – Create a High-Quality, High-Growth Business Focused on high-margin, high-growth business with significant running room  Focus on top-tier, high margin, light-tight oil plays  Deliver 10-20% per year production and CFPS growth  Sustainable Growth – 10+ years of light oil drilling inventory  Demonstrable well design efficiency gains using modern drilling and completion techniques  High working interest ownership in infrastructure enables low operating costs, control of pace and development strategies  Maintain low financial leverage • Capital program scalable depending on market conditions (pricing and differentials) • Capital and growth is funded by internally generated cash flow  Maintain high Environmental, Social and Governance standards  Liquidity for investors within 24 to 36 months 5

Key Strengths 1. Large Inventory of Highly Economic Drilling Locations  More than 300 oil-weighted locations (10+ years)  Potential to double production by 2022 at current strip prices  Light oil wells have demonstrated to be amongst the best returns in Canada  Shallower well depths of less than 2,500 m provide lower drilling capital costs 2. Strong Technical Expertise Developing and Operating Unconventional Reservoirs  Track record of driving down drilling and completion costs while improving well performance  Successful application of new technologies to optimize drilling and completion techniques 3. High working interest ownership in infrastructure  Existing infrastructure ready to accommodate growth in production  Provides low operating costs and accommodates future development 4. Egress  Oil – 100% firm service on Pembina  Natural gas – 55% of gas to Chicago via Alliance, 25% of gas to ATP and 20% to AECO via TCPL 5. Active Hedging Program  Significant hedging to protect cash flows, capital programs and balance sheet  Target up to 65% of gross “blowdown” production hedged over next 12 months, up to 40% hedged over 12-24 months 6. Maintain Strong Financial Position  Crucial in volatile commodity pricing environment  Syndicated credit facility of $130.0 million 6

Tangle Creek Operating Areas Production Profile 1 Legend 9,000 8,000 7,000 Kaybob 6,000 Production (boe/d) 5,000 Waskahigan 4,000 Other 3,000 2,000 1,000 - 2012 2013 2014 2015 2016 2017 2018 Reserve Split by Area Production Split by Area 7% 22% 23% 22% 27% 34% 23% 44% PDP P+P 2018E 2023E 2 13.8 mmboe 51.4 mmboe 7,869 boe/d 70% 33% 44% 51% 1. Production for ‘Other’ has been adjusted for the Pembina property disposition closed August 2018. 2. Based on management forecast assuming strip pricing and capital expenditures equal to cash flow. 7

Core Operating Area – Kaybob Dunvegan Low risk, free cash flow generating light oil asset which funds corporate growth Key Statistics  2017 drilling program (9 wells) 2018 drilling program (4 wells) 2018 Production 3,450 boe/d  2018YE Reserves  PPDP 9.6 mmboe PPUD 7.5 mmboe (44 wells)   2018 NOI % ~60% of Total  2018 Netback ~$33/boe Maintaining  106.5 (66.5 net) sections with Dunvegan rights production  Total Inventory of ~120 net locations ~ 3,000 boe/d  Light oil – API Gravity 36 ° Key Characteristics  Shallow depth wells (1,600 m / 5,250 ft); high chance of success  Low operating costs, high netbacks  Established infrastructure – new drilling off existing pads  Drilling inventory in place to maintain flat production for ~7 years while generating significant free cash flow  Demonstrated improvement in type curves from evolving completion techniques  Waterflood proving effective in increasing recovery and value  OOIP = 460 mmbbl. 99 net horizontal wells drilled since 2011  PPDP Ultimate Recovery Factor only 4% 8