CORPORATE PRESENTATION June 2018
Overview & Corporate Profile • Currently developing, as operator, Share Information 3 14,560 acres of heavy oil rights with high working interests (50-100%) in Shares issued (MM) 149.6 Cold Lake & Wabasca areas Options (MM) 13.9 • Cold Lake is a de-risked, heavy oil play Insider ownership (%) 63.8 currently covering 18 sections with estimated Original Oil In Place Market capitalization ($MM) 15.0 (“OOIP”) 1 of over 650 mmbbls in 5 Production and Reserves different zones within the Mannville Average production 4 (bopd) • Wabasca is a single-zone Mannville 339 heavy oil play covering 3,040 acres On-stream costs ($M/bopd) 6 - 12 with est. OOIP 1 of approx. 150 mmbbls 1P Reserves 2 (MMbbl) 3.9 located between the prolific CNRL Brintnell field & Husky’s proposed 2P Reserves 2 (MMbbl) 8.8 McMullen Willow Creek project 1) See Advisory and Notice to Readers below regarding OOIP 2) Boury Global Energy Consultants Ltd. (“BGE”) reserves report effective December 31, 2017 (“Reserves Report”) 3) As at June 1, 2018 4) For the 3 months ended March 31, 2018 TSXV: PFC l www.petrofrontier.com 1
Cold Lake & Wabasca Core Areas • Cold Lake is located approx. 300 km northeast of Edmonton • Wabasca is located approx. 300 km due north of Edmonton • Both developments are conventional cold-flow heavy oil plays targeting the Wabasca shallow Mannville group (300 - 450 m Cold Lake TVD) with low associated capital costs • Horizontal well technology being used successfully in both areas to increase production rates and recovery factors in pools originally defined using vertical wells • Significant enhanced recovery potential TSXV: PFC l www.petrofrontier.com 2
Cold Lake • Tightly held resource play: CNRL, Imperial, Devon, Baytex English Bay Cold • PetroFrontier’s joint venture Lake interests obtained through strong, long-term relationship with the Cold Lake First Nations • Joint venture has steadily increased from initial 2.5 LeGoff sections to current 18 sections Cold Lake First Nations • 81.5 sections ( ~ 52,000 acres) • English Bay - 16 sections (currently, 4.5 JV sections) • LeGoff - 56 sections Cold Lake First Nations JV interests Other producers (currently, 13.5 JV sections) TSXV: PFC l www.petrofrontier.com 3
English Bay: De-Risked, Multi-Zone Play • English Bay: 16 sections (currently, 4.5 JV ● Drilled wells sections) A’ • Vertical wells drilled to delineate and de- risk lands and establish initial reserves base Recently added JV lands • 5 zones produced in the Mannville (Colony, (not in reserves evaluation) Sparky, Rex, Lloydminster & Cummings) A A A’ 11-30 10-30 03-31 12-31 04-05 Colony Sparky Rex Lloydminster Cummings TSXV: PFC l www.petrofrontier.com 4
LeGoff: De-Risked, Multi-Zone Play A • LeGoff: 56 sections (currently, 13.5 JV sections) 16-09 • Proven multi-zone Mannville play (Colony, 12-31 McLaren, Sparky, Rex & Cummings) 09-28 • Horizontal program initiated to develop and 06-22 grow vertically defined reserves base 08-15 • Drilled and completed 2 horizontal wells in Q1 12-10 A’ 2017 (04-22 Sparky & 14-15 Rex) A A’ 16-09 12-31 09-28 06-22 08-15 12-10 Colony Colony McLaren Sparky Sparky Sparky Rex Rex Rex Rex Cummings Cummings TSXV: PFC l www.petrofrontier.com 5
Reserves Summary (Cold Lake only) Working Interest NPV Before Income Tax Reserves Reserves 1 Discounted 1 Categories @10% @ 10% (Mbbl) ($MM) (per share) Total Proved 3,853 40.1 $0.27 Probable 4,910 60.1 $0.40 Total Proved + 8,763 100.1 $0.67 Probable 2 1) Reserves Report effective December 31, 2017 (based on 40 acre spacing) 2) Numbers may not be exact due to rounding TSXV: PFC l www.petrofrontier.com 6
Cold Lake Type Production Curves 70 90 Low Mid High Low Mid High 80 60 Est. Daily Production (bopd) Est. Daily Production (bopd) 70 50 60 40 50 40 30 30 20 20 10 10 800m Sparky HZ Vertical Well (single zone) 0 0 0 12 24 36 48 60 72 0 12 24 36 48 60 72 Months Months 120 120 Low Mid High Low Mid High 100 100 Est. Daily Production (bopd) Est. Daily Production (bopd) 80 80 60 60 40 40 20 20 800m Rex HZ 800m Cummings HZ 0 0 0 12 24 36 48 60 72 0 12 24 36 48 60 72 Months Months TSXV: PFC l www.petrofrontier.com 7
Cold Lake Type Well Economics • 509 locations identified based on 20 acre spacing • 126 booked locations in P+P+P based on 40 acre spacing • Economics based on constant US$64.50 WTI 1 (CND$45.44 realized price) • Break-even price (US$/bbl WTI): 32 - 48 • On-stream cost (CND$/bopd): 5,900 - 12,000 Low Range Mid Range High Range Management Booked potential DC&E WI EUR Payout PV10 BT IRR WI EUR Payout PV10 BT IRR WI EUR Payout PV10 BT IRR Locations unbooked ($M) (Mbbl) (yrs) ($M) (%) (Mbbl) (yrs) ($M) (%) (Mbbl) (yrs) ($M) (%) (p+p+p) (2) locations Single Zone 41 116 450 56.3 1.7 667 57 74.5 1.4 900 93 93.7 1.2 1,036 120 (vertical well) 37 101 650 87 1.4 1,285 85 132 1.3 1,543 108 176 1.3 1,760 119 Cummings HZ 27 81 650 79 1.6 1,096 69 106 1.4 1,316 91 133 1.3 1,503 107 Sparky HZ 21 85 650 162 1.4 1,573 100 195 1.3 1,812 118 228 1.3 2,035 128 Rex HZ 126 383 Totals 1) Based on US$64.50 flat WTI with a heavy oil differential of 30%; 0.80 CAD/US foreign exchange; and heavy oil gravity discount of CAD$11.00 2) Reserves Report effective December 31, 2017 (based on 40 acre spacing) TSXV: PFC l www.petrofrontier.com 8
Wabasca • Initial 3040 acre development with estimated OOIP 1 of 150 MMbbls • Prolific Brintnell field is PFC’s Wabiskaw zone analog in the Mannville • Husky’s proposed 10,000 bopd project one mile south of core area 01-32-80-22W4 6.0m CNRL Brintnell Field 07-33-79-25W4 10.0m 02-17-79-25W4 Initial project (3,040 acres) 11.0m Bigstone Cree Nation Lands Husky’s Proposed McMullen (52,672 acres) Willow Creek Project 1) See Advisory and Notice to Readers below regarding OOIP TSXV: PFC l www.petrofrontier.com 9
Brintnell Field Production Analysis Cumulative production to date: 428.2 mmbbls Current production rate: 63,600 bopd • The Brintnell field was initially exploited Vertical well Horizontal well Enhanced recovery phase development using vertical wells development phase Enhanced RF: 15 to 38% phase Primary RF: 5 to 10% with little success • In 1988, horizontal drilling was initiated with very favorable results and now over 3750 HZ wells have been drilled to date • In 2000, enhanced oil recovery was initiated with outstanding results TSXV: PFC l www.petrofrontier.com 10
Vertical vs Horizontal Development • 07-33 (10m pay) vs 01-32 (6m pay) vertical wells • 4,526 bbls vs 43,216 bbls total production A’ A • 10-29 horizontal (offset to 01-32 vertical well) has produced 592,669 Mbbls to date 07-33-79-25W4 01-32-80-22W4 A 10.0m 6.0m A’ 01-32 10-29-80-22W4 Enhanced vertical horizontal recovery production production production (43,216 bbl) (240,000 bbl) (352,669 bbl) TSXV: PFC l www.petrofrontier.com 11
Wabiskaw Horizontal Type Well • Type curves were Horizontal Comp. Low Mid High generated based on DC&E ($M) 650 650 650 Brintnell field primary WI EUR (Mbbl) 77 113 153 horizontal production Payout (yrs) 1.3 0.6 0.4 • Economics based on PV10 ($M) 1018 1434 1800 constant US$64.50 WTI 1 BT IRR (%) 85 289 >500 250 Low Mid High 200 Est. Daily Production (bopd) 150 100 50 0 0 12 24 36 48 60 72 Months 1) Based on US$64.50 flat WTI with a heavy oil differential of 30%; 0.80 CAD/US foreign exchange; and heavy oil gravity discount of CAD$11.00 TSXV: PFC l www.petrofrontier.com 12
Summary • Operated working interests in highly contiguous Mannville plays predominately held by large oil companies • PFC’s core interests are within tightly -held areas secured through strong, long-term relationships with two First Nations • Previously undeveloped or underdeveloped lands with excellent well control and production history in both areas • Significant reserves established 1 at Cold Lake and large estimated OOIP 2 at both Cold Lake and Wabasca • Horizontal development planned based on success in analog fields • Low on-stream costs • Well positioned for growth 1) Reserves Report effective December 31, 2017 2) See Advisory and Notice to Readers below regarding OOIP TSXV: PFC l www.petrofrontier.com 13
Management Team & Board of Directors Officers Kelly Kimbley Ulrich Wirth President & CEO VP Exploration Robert Gillies David Orr VP Finance & CFO VP Business Development Omar El-Hajjar VP Operations Directors Robert Iverach (Chairman) Kelly Kimbley Paul Cheung Al Kroontje Michael Hibberd TSXV: PFC l www.petrofrontier.com 14
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