Investor Presentation October 2016 TSX : HWO 2 DISCLAIMER - PowerPoint PPT Presentation

1 Investor Presentation October 2016 TSX : HWO

2 DISCLAIMER Certain information contained within this These statements are derived from certain this presentation and statements made in presentation and statements made in assumptions and analyses made by the conjunction with this presentation are conjunction with this presentation, including Corporation based on its experience and qualified by these cautionary statements and information and statements that contain words perception of historical trends, current there can be no assurance that actual results such as “seek”, “anticipate,” “plan”, “continue”, conditions, expected future developments and or developments anticipated by the Company “estimate”, “expect”, “may”, “will”, “project”, other factors that it believes are appropriate in will be realized or that they will have the “predict”, “potential”, “targeting”, “intend”, the circumstances. These statements or expected consequences or effects on the “could”, “might”, “should”, “believe”, “forecast”, predictions are subject to a number of known Corporation or its business or operations. “can” and similar expressions, are forward- and unknown risks and uncertainties that could Other than as required by applicable securities looking statements. In particular, forward- cause actual results to differ materially from laws, the Corporation assumes no obligation to looking statements in this presentation include, the Corporation’s expectations. These risks and update publicly any such forward-looking but are not limited to, statements with respect uncertainties include the items discussed under information or statements, whether as a result to future capital expenditures, future financial the heading “Risk Factors” in the Corporations' of new information, future events or otherwise. resources, anticipated equipment utilization most recently filed Annual Information Form as levels, future oil and gas well activity, well as the Corporation’s other public projections of market prices and costs, disclosure documents located on SEDAR outcomes of specific events and trends in the (www.sedar.com). Consequently, all of the oil and gas industry. forward-looking information contained within 2

3 3 Recent Developments Tervita Corporation's Production Services Division Tervita Tervita Tervita Corporation's Production Services Division – Corporation's Production Services Division Corporation's Production Services Division – 6 Weeks In – – 6 Weeks In 6 Weeks In 6 Weeks In • Acquisition of the third largest well servicing fleet in Canada which includes 85 high quality service rigs (59 currently marketed) and a substantial inventory of rental equipment • Key management and majority of employees from Tervita Production Services have joined High Arctic, resulting in approximately 400 employees in Canada • Expanded geographical coverage in Western Canadian with seven new geographical locations in Cold Lake, Drayton Valley, Lloydminster, Blackfalds, Acheson and Whitecourt • Larger client base that includes top tier exploration and production companies • Rebranded the acquired service rig division to Concord Well Servicing • Facing tight markets with utilization at historic lows and pricing continuing to be pressured Executive Leadership Change Executive Leadership Change Executive Leadership Change Executive Leadership Change • Combined with the timing of the acquisition and the retirement of Tim Braun, Thomas Alford was appointed the interim President & CEO by the Board of Directors • Mr. Alford has over 35 years of experience in well servicing Western Canada, having held the title of President and CEO at IROC Energy Services and Bonus Resource Services Corporation

4 PNG PNG PNG PNG Business • Dominant market position for contract drilling, well Overview completion and rental services in PNG • Provides services in PNG to super majors and regional energy companies under long-term contracts • Strong track record of 9 years of operations in PNG. High Arctic Energy Services is • PNG’s developing LNG industry reduces the impact of a market leader with short-term oil & gas price volatility diversified operations in Papua New Guinea (PNG) and Canada Canada Canada Canada Canada • Owns and operates Canada’s largest fleet of stand alone snubbing units • Recently acquired 85 high quality service rigs 2016 TTM Revenue • Flexibility to expand organically or through acquisition PNG $187.1 mm • Solid platform established for growth Canada $27.6 mm

5 Shares outstanding 52.6 million CORPORATE (Oct 11, 2016): $4.50 Share Price (Oct 11, 2016): SNAPSHOT $236.8 million Market Cap (Oct 11, 2016): Net Cash & Marketable Securities $50.5 million (June 30, 2016): 96,188 30 Day Average Trading Volume Trailing 12 Month Adjusted EBITDA $76.4 Million (June 30, 2016): $0.198 Annual Dividend Cyrus Capital Insiders Public 4.40% Dividend Yield 42% 9% 49%

6 4 T R A C K R E C O R D O F Stable Growth REVENUE ADJUSTED EBITDA (as at June 30, 2016) (as at June 30, 2016) 36% 250 80 35% 76.4 70 30% 200 29% 30% 27% 27% 60 64 150 27% 25% 26% 50 49 100 20% 40 42 40 50 15% 30 33 32 0 20 10% 2010 2011 2012 2013 2014 2015 TTM 2010 2011 2012 2013 2014 2015 TTM Canadian Revenue PNG Revenue Adjusted EBITDA Adjusted EBITDA (%)

7 7 Papua New Guinea Overview – Stable and Growing • Independent, established democracy and a stable business jurisdiction • Part of the British Commonwealth with a parliamentary government • Government working with industry to develop nation’s natural resources (even in the current environment) Oil and Gas Activities – Long History, with New Growth • Oil exploration activities since 1920’s with OSL being established in PNG since 1929 • Long-term LNG development commenced in 2008 • Exxon’s pending purchase of InterOil confirms its position in PNG Macro Drivers for Growth • Large un-explored resource base • Low cost source of LNG to Asian markets • High quality operators with financial strength • High quality gas (i.e. high heating content) • Domestic natural gas electricity development to support economic growth

8 Cost of LNG to Japan LNG Development 10% return (US$/mmbtu) THE PNG ADVANTAGE Overview – Stable and Growing • PNG’s LNG projects are advantageously situated to supply Asian buyers • Large natural gas reserves – current estimates PNG LNG: 9 tcf, Papua LNG: 8.6 tcf, encourages long-term drilling US Gulf Coast PNG • Globally contracted LNG supply is expected to be short of total $10.76 $7.59 anticipated demand by 2020 West • Largest growth in demand for LNG is expected to come from West Africa Australia Asia resulting from changes in: $8.76 $8.73 • Government policy East Africa East $8.76 • Environmental strategy to replace coal Australia $14.49 Source: Wood Mackenzie Proximity to growing Asian market’s provides incentive to develop LNG projects despite industry downturn

9 9 PNG Outlook & Development NATURAL GAS + OIL PRODUCTION PNG LNG: Elk / Antelope (Papua LNG): • Exxon is the operator • Ownership: TOTAL, InterOil / Exxon • Total forecast production includes 9.0 and OSL tcf of natural gas and 200+ million bbls Triceratops • Reserve confirmation test underway of associated liquids over 30 years InterOil New Discovery P’nyang to size LNG facility Hides and • Shipments began Q2 2014 Juha Angore • Development wells required to feed • Exploration to support expansion Kutubu LNG facility Elk / (e.g. P’nyang) Gobe Papua LNG Antelope Kopi Proposed Kumul OSL: Exxon: PNG LNG • Targeting 4 to 6 exploration wells/yr • Pending acquisition of InterOil Operating • Focusing investment in PNG to • Significant unexplored acreage support 10 year growth platform • Declared interest in expanding Port Moresby LNG capacity in PNG Valve and pigging station Oil export platform Oil/gas fields Oil / gas refinery Customer Base LNG Facility Pipeline Proposed pipeline

10 P A P U A N E W G U I N E A Drilling Landscape Rig Type Owner / Operator Details Classification OSL / High Arctic 2 Rigs (103 /104) Tier 1 High Arctic 2 Rigs (115 /116) Tier 1 Heli Portable Contractor A 1 Rig circa mid 1970's Tier 2 Contractor B 1 Rig modified for limited heli use Tier 2 Heli Portable Work Over Rig High Arctic 1 Rig 102 Tier 1 Contractor C 1 Land based rig Land Rigs Operator 1 Land based rig High Arctic is the dominant Tier 1 drilling provider in PNG

11 PNG Drilling and Work Over Services Rig 103 / 104 (leased from OSL) • Drilling services and support contracts with OSL extended to Oct 31, 2016. Discussions ongoing for longer extensions • Strong relationship with OSL with a history of two 3-year contract renewals Rig 115 / 116 (High Arctic owned) • AC self-erecting 1500 HP heli-portable triple • Annualized operating revenue per rig of approximately $30M USD • Rig 115: contracted to June 17 • Rig 116: 2 year drilling services contract with commencing with spud of first well Rig 102 (High Artic owned) • Only hydraulic work over rig in PNG