EAGLE ENERGY INC. Investor Presentation | June 2016 Advisories - - PowerPoint PPT Presentation

EAGLE ENERGY INC.

Investor Presentation | June 2016 TSX: EGL

EXPERTISE • QUALITY • INCOME

Advisory Regarding Forward Looking Statements:

This presentation includes statements that contain forward looking information (“forward-looking statements”) in respect of Eagle Energy Inc.’s (“Eagle”) expectations regarding its future operations, including Eagle’s business strategy, and forecast estimates for Eagle’s capital budget, production, drilling plans, operating costs, funds flow from operations, commodity split, debt to trailing cashflow, corporate payout ratios, dividends, tax pools, estimated field netback, hedging, and reserves and resources. These forward looking statements involve estimates and assumptions including those relating to timing to drill and bring wells on production, production rates, operating and capital costs, marketability of crude

• il, natural gas and natural gas liquids, future commodity prices, future currency exchange rates, anticipated cash flow based on estimated production, size of

reserves and reservoir performance, among other things. These estimates and assumptions necessarily involve known and unknown risks, delays, challenges and other uncertainties inherent in the oil and gas industry including those relating to geology, production, drilling, technology, operations, human error, mechanical failures, transportation, processing problems and poor reservoir performance, among others things, as well as the business risks discussed in Eagle Energy Trust’s (the predecessor reporting issuer to Eagle Energy Inc.) annual information form (“AIF”) dated March 17, 2016 under the headings “Risk Factors” and “Advisory-Forward- Looking Statements and Risk Factors”. The forward-looking statements included in this presentation should not be unduly relied upon. Actual results may differ from the forward-looking information in this presentation, and the difference may be material and adverse to Eagle and its shareholders. No assurance is given that Eagle’s expectations or assumptions will prove to be correct. Accordingly, all such statements are qualified in their entirety by reference to, and are accompanied by, the information and factors discussed throughout this presentation. These statements speak only as of the date of this presentation and may not be appropriate for other purposes. Eagle does not undertake any obligation, except as required by applicable securities legislation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or

• therwise. Eagle’s AIF contains important detailed information about Eagle. Copies of the AIF may be viewed at www.sedar.com and on Eagle’s website at www.eagleenergy.com.

Advisory Regarding Non-IFRS Financial Measures:

Statements throughout this presentation make reference to the terms “funds flow from operations,” “field netbacks”, ”basic payout ratio” and “corporate payout ratio”, which are non-IFRS financial measures that do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Investors should be cautioned that these measures should not be construed as an alternative to earnings (loss) calculated in accordance with IFRS. Management believes that these measures provide useful information to investors and management since they reflect the quality of production, the level of profitability, the ability to drive growth through the funding of future capital expenditures and the level of dividends to shareholders. “Funds flow from operations” is calculated before changes in non-cash working capital and abandonment expenditures. Management considers funds flow from operations to be a key measure as it demonstrates Eagle’s ability to generate the cash necessary to pay dividends, repay debt, fund decommissioning liabilities and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow from operations provides a useful measure of Eagle’s ability to generate cash that is not subject to short-term movements in non-cash working capital. “Field netback” is calculated by subtracting royalties and operating expenses from revenue. “Basic payout ratio” is calculated by dividing shareholder dividends by funds flow from operations. “Corporate payout ratio” is calculated by dividing capital expenditures plus shareholder dividends by funds flow from operations. See the “Non-IFRS financial measures” section of Eagle’s management discussion and analysis relating to its financial statements for a reconciliation of funds flow from operations and field netback to earnings (loss) for the period, the most directly comparable measures in Eagle’s financial statements.

Advisory Regarding Oil and Gas Measures and Estimates

This presentation contains disclosure expressed as barrel of oil equivalency (“boe”) or boe per day (“boe/d”). All oil and natural gas equivalency volumes have been derived using the conversion ratio of 6:1 Mcf of natural gas: 1 bbl of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf: 1 bbl would be misleading as an indication of value. The estimated values of the future net revenues of the reserves disclosed in this presentation do not represent the market value of such reserves. There is no assurance that such price and cost assumptions will be attained and variances could be material. The recovery and estimates of reserves provided in this presentation are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided.

Advisories

2

“Eagle is created to provide investors with a sustainable business while delivering stable production and overall growth through accretive investments and acquisitions.”

Expertise Quality Income

Eagle’s trusted management team brings an average of 25 years of experience in the oil and gas sector. Eagle owns stable petroleum producing assets in Canada and the U.S. Eagle strives to deliver a sustainable business to its shareholders.

Strategy

3

Highlights

Notes: 1) For more information, see Eagle’s news releases issued on May 31, 2016, May 5, 2016 and March 17, 2016. 2) The reserve replacement ratios are calculated by dividing total reserve additions by total working interest production for the year. Reserve replacement ratio does not have a standardized meaning and should not be used to make comparisons.

4

 Appointed as Operator of Dixonville Properties effective June 1, 2016.  To date, have successfully drilled both wells of its two well drilling program in Salt Flat, with costs coming in considerably under budget. Both wells are expected to be on-stream late in the second quarter.  Reduced first quarter 2016 operating costs by 27% on a per-boe basis when compared to a year ago.  First quarter 2016 average sales volumes of 3,854 barrels of oil equivalent per day (“boe/d”).  2015 year-end reserves highlights:  Achieved a total proved reserve replacement ratio of 234% and a total proved plus probable reserve replacement ratio of 307%(2).  10% increase in year-over-year proved developed producing (“PDP”) reserves.  14% increase in year-over-year total proved reserves.  16% increase in year-over-year total proved plus probable (“2P”) reserves.  Closed the acquisition of Maple Leaf Royalties Corp. on January 27, 2016, acquiring additional oil and gas interests in Alberta and simplifying Eagle’s asset structure by converting to a corporate entity:  Added an additional 0.94 million boe of proved reserves and 1.09 million boe of proved plus probable reserves (as of January 1, 2016, calculated by Eagle’s internal qualified reserves evaluator).

“Eagle is dedicated to monitoring key performance metrics, exercising capital discipline, improving cost efficiency and conducting the business within cashflow; all

• f which will better position Eagle as oil prices improve.”

Semi-Annual Borrowing Base Redetermination & Credit Agreement Amendments

5

 Sustained weakness in global commodity prices has resulted in downward pressure on the price decks used by lenders to determine borrowing base levels. Results of the semi-annual redetermination finalized on May 31, 2016 set the borrowing base level at $CA 70 million.  At the end of the first quarter of 2016, Eagle’s bank debt, net of positive working capital was $CA 66.7

• million. Eagle accelerated a portion of its capital program into the first quarter.

 For subsequent quarters of 2016, it is expected that funds flow from operations will exceed capital expenditures.  Eagle’s 2016 capital budget, production and operating cost guidance remains the same as previously disclosed in Eagle’s May 5, 2016 news release, in which Eagle had revised its initial guidance to include royalty interest barrels thereby increasing its production guidance and reduced its expected monthly

• perating costs.

 Pursuant to the new term in its credit agreement that restricts Eagle from paying dividends exceeding half a cent per share per month, Eagle has reduced its monthly dividend to half a cent per share per month beginning with the June 2016 dividend.

“Eagle posted solid results in our year-end 2015 report on oil and gas reserves. We increased year-over-year proved developed producing reserves by 10%, and total proved reserves by 14%. However, our borrowing capacity is being adversely impacted by the drop in oil prices. Although current and forward crude prices have recovered from their previous lows, the price forecasts used by the banks remain

• conservative. ”

Notes: 1) For more information, see Eagle’s news releases issued on June 6, 2016 and May 31, 2016.

Current Estimated Production 3,800 boe/d(1) 2016 Full Year Production Guidance 3,400 to 3,800 boe/d(1) Production Split 87% oil, 3% NGLs, 10% gas 2016 Ending Debt to Trailing Cashflow 5.7x(2) 2016 Corporate Payout Ratio 80%(2) Dividend $0.06 per share (annualized) US Tax Pools $US 173 million CDN Tax Pools $CA 198 million

Corporate Profile

6

Notes: 1) 2016 production guidance and current estimated production include both working interest and royalty interest production. 2) Based on forecast pricing of $US 50.00 per barrel WTI oil, $CA 1.75 per Mcf AECO gas and $US 17.50 per barrel of natural gas liquids (NGL price is calculated as 35% of the WTI price), a monthly dividend of $0.005 per share ($0.06 annualized), a foreign exchange rate of $US 1.00 equal to $CA 1.31, a 2016 capital budget of $CA 5.0 million, average production of 3,600 boe/d (the mid-point of the guidance range) and average operating costs of $CA 2.2 million per month (the mid-point of guidance range).

Ticker Shares Outstanding (basic) 42.5 million 52 Week Range $0.40 - $3.40 Recent price $0.86(1) Average daily trading volume (30 day) 153,435 shares Market Cap $37 million Equity Research Acumen Capital Partners Paradigm Capital Scotiabank Global

TSX: EGL

Market Data

Notes: 1) TSX closing price on May 31, 2016.

7

2016 Guidance

Notes:

(1)

The 2016 capital budget of $CA 5.0 million consists of $US 3.0 million for Eagle’s operations in the United States and $0.8 million for Eagle’s operations in Canada. At an assumed $US 50.00 per barrel WTI oil price, Eagle’s 2016 capital budget of $5.0 million and dividend of $0.005 per common share of Eagle per month ($0.06 per share annualized) results in a corporate payout ratio of 80%.

(2)

2016 production is expected to consist of 87% oil, 10% natural gas and 3% NGLs. The revised guidance includes both working interest production and royalty interest production.

8

Eagle’s 2016 capital budget, production and operating cost guidance remains unchanged from previously announced guidance on May 5, 2016 as follows:

Revised Guidance Notes Capital Budget $5.0 million (1) Production 3,400 to 3,800 boe/d (2) Operating Costs per month $2.0 to $2.4 million

• Eagle’s 2016 capital budget is $5.0 million:

Texas and Oklahoma ($US 3.0 MM)

• Salt Flat Property
• 2 (2.0 net) horizontal oil wells
• Seismic processing, facilities, pump changes
• Hardeman Property
• Seismic processing, pump installs

Alberta ($0.8 MM)

• Dixonville Property (Non-operated)
• Pipeline and facilities capital
• Twining Property
• Facility Capital

2016 Capital Budget

Note: 1) The capital budget excludes future corporate and property acquisitions, which are evaluated separately on their own merit.

“Eagle intends to remain disciplined by managing capital expenditures and maintaining target project economics based on current realized commodity prices.”

9

2016 Expected Funds Flow from Operations and Corporate Payout Ratio

Notes: (1) 2016 funds flow from operations is expected to be approximately $CA 11.1 million based on the following assumptions: (a) average production of 3,600 boe/d (the mid-point of the guidance range); (b) pricing at $US 50.00 (previously $US 45.00) per barrel WTI oil, $CA 1.75 per Mcf AECO and $US 17.50 per barrel of NGL (NGL price is calculated as 35% of the WTI price); (c) differential to WTI is $US 3.10 discount per barrel in Salt Flat, $US 3.50 discount per barrel in Hardeman, $CA 16.17 discount per barrel in Dixonville and $CA 12.67 discount per barrel in Twining; (d) average operating costs of $CA 2.2 million per month ($US 0.8 million per month for Eagle’s operations in the United States and $CA 1.1 million per month for Eagle’s operations in Canada), the mid-point of the guidance range; (e) foreign exchange rate of $US 1.00 equal to $CA 1.31 (previously $CA 1.26); and (f) field netback (excluding hedges) of $16.59 per boe. (2) Eagle calculates its Basic Payout Ratio as follows: (3) Eagle calculates its Corporate Payout Ratio as follows: (4) Funds flow from operations, field netback, basic payout ratio and corporate payout ratio are non-IFRS measures. See the “Advisory regarding Non-IFRS Financial Measures” at the beginning of this presentation.

10

Amount Funds Flow from Operations $11.1 million (1) Basic Payout Ratio 35% (2) Plus: Capital Expenditures 45% Equals: Corporate Payout Ratio 80% (3)

Eagle’s expected funds flow from operations and corporate payout ratio are calculated as follows:

Shareholder Dividends = Basic Payout Ratio Funds Flow from Operations Capital Expenditures + Shareholder Dividends = Corporate Payout Ratio Funds Flow from Operations

2016 Sensitivities

2016 Average WTI (Production = 3,600 boe/d) $US 45 (F/X 1.34) $US 50 (F/X 1.31) $US 55 (F/X 1.28)

Funds Flow from Operations

$10.6 million $11.1 million $11.5 million

Corporate Payout Ratio

83% 80% 76%

Debt to Trailing Cash Flow

6.0x 5.7x 5.4x 2016 Average Production (boe/d) (WTI = $US 50 / F/X 1.31) 3,400 3,600 3,800

Funds Flow from Operations

$10.0 million $11.1 million $12.3 million

Corporate Payout Ratio

89% 80% 72%

Debt to Trailing Cash Flow

6.3x 5.7x 5.1x

Assumptions:

1)

Annualized dividends are assumed to be $0.06 per share per year.

2)

Operating costs are assumed to be $2.2 million per month (mid-point of guidance range).

3)

Differential to WTI is held constant.

4)

Foreign exchange rate is assumed to be $US 1.00 equal to $CA 1.31 unless otherwise indicated in the table.

11 Sensitivity to Commodity Price Sensitivity to Production

Strong Balance Sheet Stable Production Capital Discipline Sustainable Business with Growth Potential

Exercising Fiscal Prudence and Discipline in a Low Commodity Price Market

“We intend to continue to monitor and realign our business to operate near or within our cash flow.”

12

• Eagle owns stable, oil producing properties with development

and exploitation potential located in Canada (Alberta) and in the US (Texas and Oklahoma).

• Twining Field Properties, AB:
• Located in the Pekisko oil pool formation at the Twining field in East-Central Alberta
• 57 gross (33 net) producing oil wells, 9 gross (2 net) producing gas wells
• Approximately 41,500 gross (32,650 net) acres
• Dixonville Properties, AB:
• Appointed operator effective June 1, 2016
• Located 50 kms northwest of Peace River
• 78 gross (39 net) producing oil wells
• 81 gross (41 net) water injectors
• 19,520 gross (7,900 net) acres
• Maple Properties (WCSB), AB
• Salt Flat Properties, TX:
• Located in Salt Flat field in Caldwell County, TX
• 54 gross (41 net) producing oil wells
• 3,200 (2,600 net) acres
• Hardeman Properties, TX & OK:
• Located in Hardeman Basin in Hardeman County, TX, and Greer, Harmon and

Jackson Counties, OK

• 44 gross (34 net) producing oil wells
• 28,000 acres (18,000 held by production plus 10,000 undeveloped)

Our Properties

13

CDN Properties – Twining Field (Alberta)

• 70% average working interest production to Eagle from the largest Pekisko oil pool in the Western

Canadian Sedimentary Basin

• 70% light oil and natural gas liquids
• 57 gross (33 net) producing oil wells, 9 gross (2 net) producing gas wells
• 30° API medium/light oil, 4 mD permeability and 7-8% average porosity
• 41,500 gross (32,650 net) acres
• Approx. 70 km from

Three Hills, AB

• R

• R

• R

• R

• R

• R

• R

• R

• R

• R

• R

100/02-07-032-24W4/00

• 0.05

• 0.05

Lower MNVL Upper Pekisko Middle Pekisko Lower Pekisko Banff

Layer 1 Layer 2 Layer 3 Layer 2C Layer 2B Layer 4

Pekisko Type Log

14

CDN Properties – Twining Field (Alberta)

Source: IHS public data

Interests in the largest Pekisko oil pool in the WCSB Significant upside potential

• 10 horizontal wells drilled to date with
• ver 30 additional drilling locations
• Waterflood in certain areas of the field

has the potential to double recovery factors in the area

Ongoing production improvements

• Including well workovers, pipeline and

facilities and G&G software

Low declines

• Decline rate below 5%

15

Twining Pekisko Pool Production History

• Appointed operator effective June 1, 2016
• 50% working interest in a horizontal oil waterflood in the Montney “C” Formation
• Primary development started in 2004 with full scale waterflood by 2012
• 78 gross (39 net) producing oil wells, 81 (41 net) water injectors
• 30◦API Oil, 18 mD permeability and 16-26% average porosity
• Approximately 19,520 gross (7,900 net) acres

50 km from Peace River

CDN Properties – Dixonville (Alberta)

16

A premier waterflood in Western Canada

• Low decline property
• Low abandonment liabilities due to long life

asset

Long-term potential

• Decline rate below 10%

Refurbished, optimized gathering system

• Pipeline remediation program, including poly

liner installation in emulsion gathering system

Low maintenance and capital costs

• Maintenance capital below $1 million per year

to Eagle

CDN Properties – Dixonville (Alberta)

Source: IHS public data

17

18

CDN Properties – Western Canadian Sedimentary Basin – Maple

Acquired interests in attractive Alberta plays located in the WCSB effective January 27,2016

• 230 boe/d of royalty interest

production (30% oil and natural gas liquids)

• 200 boe/d of non-operated working

interest production (30% oil and natural gas liquids)

No incremental debt, capital expenditures or overhead needed to manage production Estimated total net proved reserves of 0.94 million boe(1) Estimated total net proved plus probable reserves of 1.09 million boe(1)

• Over 50

producing non-operated royalty interest wells

• 10 non-
• perated

working interest wells

17

(1)

As of January 1, 2016, calculated by Eagle’s internal qualified reserves evaluator.

US Properties – Salt Flat (Texas)

Light oil producing

• 35
• API oil from the Edwards limestone

formation, located in the Salt Flat field in Caldwell County, South Central Texas

• Acquired an 80% working interest in 2010

Low cost development technology

• Eagle is redeveloping the pool using low cost

horizontal well drilling technology to capture additional oil:

• Eagle has drilled over 55 horizontal

wells

• Completed numerous successful

production enhancement and operating cost reduction projects

• Shot a comprehensive 3D seismic

program in 2014

Additional location opportunity

• Eagle continues to identify additional locations

and optimizations to capture additional recovery

19

Light oil producing

• 45
• API oil from the Chappel and Atoka

Conglomerate formations located in Hardeman County, Texas and Greer, Harmon and Jackson Counties, Oklahoma

28,000 gross acres of land

• 18,000 acres held by production
• 44 gross (34 net) producing oil wells,

gathering systems and associated assets

Low risk, low cost, high opportunity

• Eagle will drill low risk development

wells and deploy capital to reduce

• perating costs, while processing newly

acquired seismic data to define future drilling opportunities

US Properties – Hardeman (Texas & Oklahoma)

20

2015 Year-End Reserves Highlights

+10% Increase in year-over-year proved developed producing (PDP) reserves +14% Increase in year-over-year total proved reserves +16% Increase in year-over-year total proved plus probable reserves volumes 234%(1) Stability reflected in total proved reserves replacement ratio 307%(1) Strong total proved plus probable reserves replacement ratio

21

Note: 1) The reserves replacement ratios are calculated by dividing total reserve additions by total working interest production for the year.

• Total proved plus probable reserves of approximately 18.6 million boe (70% proved, 58% proved producing)
• PV10 value on total proved plus probable reserves of approximately $229 million
• Proved plus probable reserve life index of 14 years(2)

McDaniel & Associates Price forecast (as of Jan 1, 2016)

2015 Year-End Reserves(1)

Excellent year-over-year reserve performance

Notes: 1) Per McDaniel & Associates Consultants Ltd., and Netherland, Sewell & Associates, Inc., Eagle’s independent reserves evaluators, with an effective date of December 31, 2015. Note that reserves associated with the January 27, 2016 acquisition of Maple Leaf are not in these figures. 2) The reserve life index calculation is based on average daily production of 3,400 boe/d.

22

Year WTI Crude Oil $/bbl 2016 45.00 2017 53.60 2018 62.40 2019 69.00 2020 73.10

$141 $8 $24 $56

PV10 Value ($MM)

PDP PDNP PUD Probable

58% 2% 10% 29%

Reserves by Category

PDP PDNP PUD Probable

• Eagle’s approximate 51% coverage through its 2016 hedging program is well above the 25% weighted average

hedge position of its junior peers(1)

• For the remainder of 2016, Eagle has an average 1,605 bbls/d hedged at WTI $US 51.44
• 1,429 Mcf/d (240 boe/d) of natural gas hedged at $CA 2.97/Mcf
• A differential hedge between the Edmonton Light Sweet oil price and the WTI oil price at $US 3.65 per barrel
• n 1,000 bbl/d
• For 2017, hedges are in place covering 750 barrels of oil per day at $US 45.00/bbl

Hedging Program

Note: 1) Source: Company Reports; National Bank of Canada, “Canadian Producer Hedge Positions – Q1 2016” issued on June 6, 2016.

Q1 2016 $US 55.86 Q2 2016 $US 51.61 Q3 2016 $US 51.42 Q4 2016 $US 51.33 2016 Avg Hedged Oil Price = $US 52.30 2016 Avg Hedged Gas Price = $CA 3.00/Mcf Average % Hedged

23

0% 10% 20% 30% 40% 50% 60% 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 3200 3400 % Hedged BOE/D

Management Experience

• Eagle’s management team has an average of 25 years of experience

Years 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Richard Clark Corporate Finance Law - Shiningbank Energy Trust General Counsel Corporate Finance Law Eagle - President & CEO Wayne Wisniewski Petroleum Engineering- Anders Energy, Occidental Petroleum Pennzoil E&P BP - Various Senior Leadership Engineering and Operations Roles Eagle - COO Kelly Tomyn Controller - Various Junior O&G Companies CFO - Various Junior O&G Companies Eagle - CFO Eric McFadden Co-head Investment Banking, Calgary - Scotia Capital Windpower Development

• CEO

EVP, Business Development - Superior Plus Eagle - VP, Capital Markets & BusDev Scott Lovett Senior Reserves Evaluator - GLJ Petroleum Consultants Business Development - Shiningbank Energy; Enerplus Business Development, COO - Native American Res. Ptnrs Eagle - VP, Corporate & BusDev Jo-Anne Bund Corporate Securities Lawyer at a Boutique Oil and Gas Law Firm Senior Legal Counsel - Alberta Securities Commission Corporate Securities Lawyer at a National Law Firm In-House Corporate Counsel Eagle - General Counsel & Corporate Secretary

24

Value Proposition Why Invest in Eagle?

• Stable production base
• Capital discipline
• Experienced management team
• Focus on improving cost efficiencies

25

26

APPENDIX

Richard Clark, B.A. (Econ), LLB, Director, President and Chief Executive Officer

• 19 years in the legal profession as a founding partner at a boutique oil and

gas law firm, then 10 years at a Canadian national law firm, specializing in corporate finance, securities, M&A and venture capital

• Extensive experience in the royalty trust sector

Wayne Wisniewski, P.E., MBA, Chief Operating Officer (Houston)

• 30 years of oil and gas engineering and operations experience
• Last 13 years of career spent in a senior operations and engineering

management role in the Houston office of a major international E&P company

Kelly Tomyn, CA, Chief Financial Officer

• Former VP Finance and CFO for numerous public & private companies

with over 25 years of financial experience with E&P companies

• Former controller for Shiningbank

Continued..

Management

27

Continued… Scott Lovett, M.Sc., MBA, P.Eng, Vice President, Corporate & Business

Development

• 20 years experience in the oil and gas industry, including reservoir

evaluations, acquisitions and divestments, business planning and strategic analysis

Eric McFadden, Vice President, Capital Markets & Business Development

• Over 25 years of experience in the corporate finance, capital

markets, management and business development industries, including eleven years in the energy industry

Jo-Anne Bund, B.A., LLB, General Counsel and Corporate Secretary

• 20 years of experience in corporate finance, securities, and M&A,

including with a national law firm, with a securities regulator and as in-house corporate counsel

Management

28

David Fitzpatrick, P.Eng., Chairman

• President and Chief Executive Officer, Veresen Midstream
• Former Chief Executive Officer of Shiningbank

Bruce Gibson, CA, Chair of Audit Committee

• Former Chief Financial Officer of Shiningbank

Warren Steckley, P.Eng., Chair of Reserves and Governance Committee and Chair of Compensation Committee

• Former President and Chief Operating Officer, Barnwell of

Canada, Former Director of Shiningbank

Richard Clark, B.A. (Econ), LLB, Director

• President and Chief Executive Officer of Eagle; Former Director
• f Shiningbank

Board of Directors

29

Production History

Notes: 1) 2016 production guidance includes both working interest and royalty interest production (the mid-point of the guidance range). 2) Q4/14 production is after the Permian asset disposition and before the Dixonville asset acquisition.

30

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 2016 Guidance Production 2,169 2,400 2,825 2,986 2,928 3,022 3,052 2,994 3,010 3,341 2,859 1,929 2,995 3,034 3,607 3,783 3,854 3,600 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Average WI Production per Quarter (boe/d)