November 28, 2016 • Volume 25, No. 16 CanadianAcquirer Serving the marketplace with news, analysis and business opportunities

Spartan buys Arc’s Saskatchewan assets for $700 million Conoco asset sales to include Arc Resources signed a $700 million cash deal to sell its entire Saskatchewan Western Canadian gas business to Spartan Energy, whose operations are concentrated in that province. The A $5-8 billion ConocoPhillips assets have a low-decline production of 7,500 boe/d (98% oil and NGLs), which is just divestment plan for 2017-2018 focused on 7% of Arc’s total output but enough to increase Spartan’s 2016 exit guidance North American gas will include parts of the 54% to 20,800 boe/d while company’s Western Assets raise Spartan's output by 54%, boosting its liquids weighting Canadian business, making it a leading province producer. from 89% to 93%. They also a spokesman in Calgary told multiple provide an operated 98,000 net acres (132,000 gross) close to Spartan’s existing media outlets after the company’s analyst southeast Saskatchewan position, which will increase 35% to 376,000 net acres. day event Nov. 10. The asset sales are part The producing properties have a low base decline of 12% and PDP reserves of a sweeping effort to shore up Conoco’s of 22.5 MMboe, representing a 91% increase for Spartan. The company says these balance sheet in the wake of sustained low assets can deliver 10-15% growth within cash flow at WTI prices of US$40/bbl. prices and accelerate the company’s typical Spartan is also acquiring infrastructure supporting current and future volumes, $1-2 billion annual target. including interests in 30 light oil batteries, 99% WI in the Lougheed sour gas plant and an extensive gathering network. Continues On Pg 9 Conoco's plans focus on Falher/Wilrich and Montney plays as well as oil sands. Tamarack boosts Viking profile in $408MM Spur combo Adding a sizeable Viking component to its Cardium-focused portfolio, Tamarack “These are high-quality assets that Valley Energy signed a $407.5 million agreement to acquire privately held Spur no longer align with our future growth Resources. The deal provides low-cost production of 6,250 boe/d (52% light oil and strategy and we will only consider offers NGLs) primarily from that recognize their value,” said Director Viking properties in 17,040 boe/d pro forma output is 43% of Communications Rob Evans. “We Cardium, 34% Viking, 8% Coleville gas. southwest Saskatchewan are anchoring our Western Canada and southeast Alberta. Besides the Viking, Spur produces 8.4 MMcfe/d (23% liquids) portfolio on unconventional key from its Coleville gas unit in southwest Saskatchewan. strategic plays in northeastern BC and Continues On Pg 13 Tamarack already has Viking assets in the Redwater area of west-central Alberta, northwestern Alberta.” which it expanded considerably as part of an $85 million acquisition this summer. It produced 958 boe/d (93% liquids) in Q3 from the Redwater Viking, representing 9% DEALS FOR SALE of total output. The Spur deal will boost Tamarack’s overall production 58% to 17,040 boe/d and its Viking production more than 500% to 5,808 boe/d (66% liquids)—34% ALBERTA PROPERTY 2-Producing Wells. 1-Water Injection Well. of total output—making it one of the play’s leading operators. Continues On Pg 11 PEMBINA.Nisku Oil Pool. 1-Water Potential Injector Wells And --- PP RMP sells older Montney assets at Ante Creek for $114MM ---Associated Pad Facilities. ~1,500 46.875% OPERATED WI FOR SALE BOED Acting on a strategic review initiated this summer, RMP Energy sold its mature Ante Gross Production: ~1,500 BOED Creek properties in west-central Alberta for $114.3 million. Upon closing the divestment Original Oil-In-Place: 8.2 MMBBLS Nov. 15, RMP used the net proceeds to eliminate its $103.3 million bank debt. Combined BIDS ARE DUE DECEMBER 8 2016 with positive working capital and an undrawn $40 million credit facility, this debt-free PP 11179DV balance sheet gives the company financial flexibility to pursue low-risk development of the Waskahigan Montney and delineation of the Gold Creek Montney. CANADA OPPORTUNITY Multiple Producing Properties. RMP began Montney Sheds 53% of company production to VARIOUS AREAS OF ALBERTA exploration at Ante Creek in Glauconitic Sandstone, Edmonton Sand- eliminate bank debt, focus operations. PP 2011 and has had considerable success -Belly River, Horseshoe Canyon And in the area, but the properties entered the initial stages of waterflood production and WI FOR SALE OR FOR FARMOUT 1,885 Production: 1,885 BOED BOED were no longer considered growth assets. Ante Creek has cumulatively produced 8.8 Total PV10 Value: $53,148,000 MMboe (55% oil and NGLs), generated a 50% IRR and returned a $120 million profit Total Proved Reserves: 11,025 MBOE equating to 7% CAGR for RMP since coming onstream. During Q3 the area produced ACCEPTING CASH OFFERS 25.8 MMcfe/d (45% oil and NGLs), representing 53% of RMP’s total. The sale also PP 11119FO included 40.7 Bcfe of proved reserves and 60.0 Bcfe of 2P reserves. PLS tracks thousands of deals for Ante Creek has 22,528 net acres targeting the Montney and 49,280 net acres sale at www.plsx.com/listings prospective for Duvernay oil along with pipelines and facilities. Continues On Pg 12 All Standard Disclaimers & Seller Rights Apply. CanadianAcquirer 2 November 28, 2016 Closings Penn West closes $75MM in Manitok closes $13.5MM Cardium purchase from Craft Oil non-core divestments Privately held Craft Oil, formerly known as Tournament Exploration, In its Q3 earnings statement, Penn completed its $13.5 million Cardium asset sale to Manitok Energy. Manitok paid West Petroleum announced the closing $9.0 million cash and $4.5 million in tradeable debentures to close the acquisition, of multiple non-core asset sales totaling which it announced in early October. The assets have projected November $75 million, with the proceeds used to production of 10.5 MMcfe/d (34% light oil and NGLs), which is expected reduce long-term debt. The deals were to boost Manitok’s total output to a record 39.0 MMcfe/d (38% light oil and struck in July and included 6,000 boe/d NGLs). They consist primarily of mature Cardium assets in the Willisden of production. The company remains Green area of west-central Alberta. Manitok’s operations focus on the Cardium as confident in its 2H16 divestment goal of well as the Mannville in southeast Alberta. $100-200 million. The closing was announced Oct. 31 by both Manitok and Chinook Energy, which The Q3 asset sales add to $1.3 billion acquired a 70% stake in Tournament/Craft valued at $7.5 million in June in exchange in non-core Alberta and Saskatchewan for Montney assets in the Gold Creek area of west- divestments completed during 1H16. January 15, 2015 • Volume 06, No. 01 These sales help bring Penn West into central Alberta. Craft executed the deal with Manitok CanadianCapital Serving the marketplace with news, analysis and business opportunities compliance with all of its senior debt to reduce its non-core footprint and tighten its focus Canadian Natural Resources cuts capex by $2.4 billion Eagle Energy Trust becomes Oil sands player Canadian Natural Resources is the latest producer to revisit its a Canadian asset holder capital spending plan for 2015, cutting it back by $2.4 billion to $6.2 billion. That’s Eagle Energy Trust unitholders down 30% from the $8.6 billion budget it laid out in November 2014 and about half have approved a special resolution to the $12 billion it expected to spend in 2014. The bulk of the reductions amend the investment restrictions in covenants within just a few months on the Grande Prairie area. The sale leaves Craft with will come via reduced drilling and related facility capital for its North Eagle's trust indenture, enabling America and International conventional CanadianCapitalWill defer $470 million in spending it Nov.to invest in energy 3assets operations. The company will also defer at Kirby North Phase 1 project. in Canada. Eagle had been $470 million in spending at its Kirby previously been limited to investing North Phase 1 in situ oil sands project, cutting spending by 82% to $105 million from on non-Canadian assets—the company of warning of a possible default by 14.4 MMcfe/d, of which 83% is located at Grande its previous forecast of $575 million. The reduced budget wasn’t a complete surprise; currently has production of 1,900 boepd when it released the original budget the company warned that it was prepared to cut from properties in Texas and Oklahoma. $2.0 billion from that if conditions warranted. CNRL said the reduced spending would The changes won’t have any impact allow it to continue its dividend unchanged. Chinook to distributeTo beits taxed at rateCraft other E&P firms CFO Corey Bieber told the Globe and Mail he did not know when spending at pay, not at prior 34% on distributions. Prairie, and less than $6.0 million in net debt excluding Kirby North might be restored. Continues On Pg 6 the end of June. Crescent Point banking on service cost & efficiency savings on its US operations or the taxes on stakeHalf of oil hedged toat US$90/bbl shareholders. for 2015 distributions from those operations; the Although Crescent Point Energy is setting its capital budget for 2015 about 28% company’s Canadian investments will be lower than 2014, the company expects the slimmed down budget to deliver 9% YOY structured so that its Canadian operations Over the past three years, Penn West the tradeable debentures acquired from Manitok. production growth to 152,500 boepd. The company set its budget for the year at $1.45 will be taxed in the same manner as other million, down 28% from the $2.0 billion Canadian energy companies. forecast for 2014. Viewfield Bakken & Shaunavon plays Eagle wasted no time taking advantage to get nearly half of spending. The budget assumes an of the change, signing a deal with Spyglass initial 10% reduction in service costs. Crescent Point expects to see even Resources Corp. to buy a 50% non-op interest in producing properties under has slashed debt while mostly reducing greater cost reductions if low prices persist. The company is looking at ways to improve its operational efficiency and is working on a number of drilling and completion waterflood in the Dixonville Montney C oil technologies that could cut costs even further. pool in north central Alberta, paying $100 “When prices fell dramatically in 2008 to 2009, we were able to realize a 30% million. The acquisition adds 1,250 boepd reduction in our Bakken drilling and completions costs,” said CEO Scott Saxberg. of low-decline production. Cont’s On Pg 10 its operational footprint to three core “We'll be working hard with our service providers and fully expect to see rates come FEATURED DEALS InPlay closes Anderson merger, Cardiumdown even morebuy than they already have.” fromContinues On PgBellatrix 8 ALBERTA PROPERTIES SALE Producers banking on service company savings 5-Non-Core Properties As producers scale back their capital spending plans in the wake of falling oil CENTRAL & WESTERN ALBERTA PP Alberta plays: the Cardium, Viking and prices, many are looking to the service sector to help them prop up their bottom lines. Abee, Highvale, Kakut, Majeau & Morinville Pembina-focused InPlay Oil has gone public and expandedCrescent Point Energy is already factoringits a 10% reductionAlberta in service costs into its Up to 100%asset OPERATED WI FOR SALE base5.7 Net Production: ~400 BOED (82% Gas) MMCFED 2015 budget and will be pushing for more if prices remain low. Others are expected Avg Net Operating Income: ~$189,166/Mo to approach their capital Half of producers expect drilling CALL AGENT FOR MORE INFO budgets with the same mindset. PP 14403DV & completion costs to fall 10% in 2015. Peace River. The company intends to According to a survey con- with the closing of its $36 million reverse takeover of Willesdenducted by Barclays, capital Green spending in the US and Canada driller is expected to fall by as CANADIAN Anderson JOINT VENTURE much as 30% from last year to $138.1 billion. In turn, about half of producers expect 1-Prospect. 43,000-Acres. 67-Sq Miles. MAGDALEN BASIN. GULF OF ST LAWRENCE DV drilling and completion costs to fall 10% in 2015, including in areas such as pressure 80-km West of SW Tip of Newfoundland. pumping, drilling fluids and directional drilling. And while producers may see the Water Depth 470 m. Drill Depth 2,500 m. continue disposing of assets outside these service savings as a slight respite from the decline in oil prices, the news is doubly >1,000 km 2D Defines FourWay Closure. MAGDALEN Energy. The combined company began trading on the TSXdisheartening for thoseexchange service providers. Not only are they seeing declinesNov. in their 100% OPERATED 10 WI; JOINT VENTURE under Total Resource Potential: 5.0 BBO or -- own businesses, they’re being asked to take less for the services they do provide. - 7.0 TCF Carboniferous Clastic Targets. Service companies are already feeling the impact. Continues On Pg 13 CALL AGENT FOR UPDATE the symbol IPO. InPlay also closed its $47 million acquisition of additionalDV 15009 Pembina areas, which will lower its cost structure Cardium assets, producing 930 boe/d (74% liquids) from Bellatrix Exploration. by reducing operating expenses and The enlarged company, which produces 3,580 boe/d (65% liquids) with a projected abandonment liabilities. 22% decline rate for 2017, has 15.6 Combo produces 3,580 boe/d and has ABOUT PLS MMboe of proved reserves, a $125 million $125MM market cap & $31.5MM debt. market cap and a $31.5 million net debt. CanadianAcquirer is published every three Two-thirds of InPlay’s production comes from the Cardium at Willisden Green and weeks by PLS Inc. Pembina; additional volumes flow from the Belly River at Pembina as well as Mannville PLS CanadianAcquirer covers the active and Nisku properties. Canadian asset marketplace with analysis of The merger received approval by shareholders of both companies and a green mergers, divestitures, transactions, analyst light from the Court of Queen’s Bench of Alberta. Consideration consisted of one comments, deals in play and deal metrics. InPlay share for each Anderson share, with Anderson shareholders owning 28.5% To obtain additional PLS product details, of the combined company. Bellatrix also took a stake in the newly public company, contact Steve Henrich at shenrich@plsx. receiving $42 million cash and 2.2 million InPlay shares (3.5%) for the Pembina com or drill www.plsx.com/publications. Cardium assets. PLS Inc. 3300, 205-5th Avenue SW Corporate Snapshot of Post-Merger InPlay Oil Calgary AB T2P 2V7 403-294-1906 (Canada) Operating Summary Market Summary 713-650-1212 (US) Current prod. (% liquids) 3,580 boe/d (65%) Basic shares outstanding 62.4MM To obtain additional listing info, contact us Decline rate (current/2017) 24%/22% Market cap (@ $2.00/share) $125MM at 403-294-1906 or [email protected] with the listing code. Only clients are able to Proved reserves 15.576 MMboe EV (@$2.00/share) $157MM receive additional information. To become a client call 403-294-1906. 2P reserves 24.050 MMboe Employee/director ownership 1.5% © Copyright 2016 by PLS, Inc. 2P NPV10 $318.1MM Net debt at closing $31.5MM Any means of unauthorized reproduction is LMR >2.5x Credit facility $60.0MM prohibited by federal law and imposes fines up to $100,000 for violations. Source: InPlay Oil Nov. 14 Presentation via PLS docFinder www.plsx.com/finder

Find more A&D news at www.plsx.ca To learn more about PLS, call 403-294-1906 Volume 25, No. 16 3 A&D Portfolio management takes A&D center stage as M&A surges Delphi gets $50MM Bigstone Montney injection from partner Canadian deal activity is experiencing In a move to accelerate Bigstone Montney development in Alberta’s Deep Basin, a significant increase heading toward Delphi Energy signed a non-binding LOI with an existing partner to complete a $40 year’s end. Of the top five new deals million joint drilling program by next July. The partner will pay $30 million up front reported in this issue (see table), four are to increase its varying interests to a uniform 35% WI and will pay most of also among the top 10 of Delphi’s drilling costs to the tune of $20 million. IN THIS 2H15, based on the PLS ISSUE The partner will immediately gain 19,200 net acres, 450 boe/d, 2.8 MMboe Global M&A Database. of proved reserves and 7.3 MMboe of 2P reserves, plus 35% WI in Delphi’s 65 MMcf/d A common theme though most of these sour gas processing infrastructure. Delphi will retain an operated 65% WI in all assets. deals is a sharp operational focus on core For the drilling program, Delphi will pay $6 million while the partner contributes plays, as reflected in all of our front- $34 million, including $14 million to cover its own 35% share of expenses. In effect, the partner will cover 50% out of Delphi’s 65% portion of the program, which will drill five Four upstream deals featured in this issue are among the top 10 of 2H16. or six wells. A definitive agreement is expected by Nov. 30, with closing around Dec. 22. Over the last four years, Delphi has spent $325 million to capture 74,880 net acres page deals. Arc Resources is exiting its (88,320 gross) in the Bigstone Montney and de-risk the play by drilling 28 successful conventional Saskatchewan business to wells. After this deal it will continue to be the area’s top acreage holder. focus on Montney resources, and those Saskatchewan assets will make Spartan Athabasca upsizes contingent royalty sale for $128.5MM Energy one of the province’s top oil Doubling down on a deal struck in June, Athabasca Oil Corp. sold an additional producers. Tamarack Valley’s acquisition contingent bitumen royalty on its thermal oil sands assets to Burgess Energy Holdings of Spur Resources will elevate the for $128.5 million cash. It has now raised $257 million through the upsized royalty, Viking to a second core play which supports the long-term value of its Hangingstone SAGD project and additional alongside the Cardium. And oil sands leases in the Dover West, RMP Energy is shedding Supports long-term oil sands value, Birch and Grosmont areas. leaves unencumbered at low prices. mature Montney properties, now entering The upsized deal, which waterflood, to focus on greenfield parts closed Nov. 10, increases the size of Burgess’ sliding-scale royalty range for 0-6% of the play. Likewise, ConocoPhillips’ to 0-12% of Athabasca’s realized bitumen price net of diluent, transport and storage planned Western Canadian divestments costs. The deal remains structured to leave the assets unencumbered at lower prices. will focus its portfolio on top-tier Montney For example, at Hangingstone the first 2% royalty will only be triggered when WTI and Falher/Wilrich operations. reaches US$75/bbl at Phase 1 nameplate capacity of 12,000 bo/d. Hangingstone came These companies are following online in July 2015 and is still ramping up with Q3 volumes of 8,830 bo/d. the playbook of Penn West, which Athabasca plans to direct the proceeds toward debt repayment to set it up for the Sellers shedding non-core to focus ops, refinancing of its balance sheet, which it expects to complete by year’s end. Using buyers consolidate hold on core plays. proceeds from the initial royalty deal and a $337.7 million Kaybob JV with Murphy Oil, Athabasca has reduced its outstanding term debt by $250 million YTD. The has completed $1.4 billion in non-core company exited Q3 with $545.1 million in long-term debt. divestments YTD as it zeroes in on the Cardium, Viking and Peace River (page 4). This intense portfolio management Sliding Scale Calculation for Upsized Burgess Royalty helped the recently struggling company Hangingstone Other Thermal Assets slash debt, bring down operating expenses Realized Implied WTI Realized Implied WTI and boost its share price. Stabilizing oil bitumen Royalty (US$bbl) bitumen Royalty (US$bbl) prices will likely take further pressure off price ($C/bbl) price ($C/bbl) sellers like Penn West. Below $50 0% - Below $60 0% - Particularly interesting for deal $50-$69.99 2% $75-$91 $60-$79.99 2% $78-$94 watchers is the proposed merger of $70-$89.99 4% $91-$108 $80-$99.99 4% $94-$110 Alberta Oilsands, which has cash but no $90-$109.99 6% $108-$124 $100-$119.99 6% $110-$126 assets, with Marquee Energy, which has $110-$129.99 8% $124-$141 $120-$139.99 8% $126-$142 high-quality assets but no cash to drill them $130-$149.99 10% $141-$157 $140-$159.99 10% $142-$159 (page 5). Their court battle with activist $150+ 12% >$157 $160+ 12% >$159 investor Smoothwater may determine the * Implied WTI based on a 0.8 US$/C$FX assumption and US$15/bbl heavy differential. future of the “plan of arrangement” merger NOTE: Royalties calculated and payable on a monthly basis. structure in Canada. Source: Athabasca Oil Corp. Nov. 3 press release For general inquiries, email [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 4 November 28, 2016 A&D Baytex doubles Peace River Tourmaline acquires Dawson & Obed properties for $38MM oil sands position for $65MM In its Q3 earnings statement, Tourmaline Oil announced two acquisitions in the After a long hiatus from Canadian Obed area of Alberta’s Deep Basin and the Dawson area of northeast British Columbia acquisitions to focus on its Eagle for $37.6 million. Completed during Q3, the deals contributed production of 7.5 Ford assets in the US, Baytex Energy MMcfe/d, estimated 2P reserves of 45 Bcfe and 112 drilling locations. Production announced a deal to from both areas will be tied into Tourmaline infrastructure. more than double its The Obed property is jointly owned with Shell, whose stake will be included acreage position in northern Alberta’s in the $1.37 billion Deep Basin and northeast British Columbia Montney sale to Peace River area for $65 million cash. Tourmaline, announced Oct. 20. That transaction, scheduled to close at the end of The acquired assets are 100% operated November, includes 206,000 net acres (309,000 gross), 149.1 MMcfe/d, 2.84 Tcfe 2P, and include 265,600 net acres of long- three operated gas plants and 719 km of pipelines. tenure oil sands leases producing 3,000 boe/d (85% heavy oil). They lie adjacent Suncor sees no more acquisitions on horizon to Baytex’s existing 216,320 net acres in Having completed nearly $8 billion in acquisitions in a little more than a year, the Peace River area, offering operational Suncor Energy does not have plans to buy any more assets. Additionally, CEO synergies to optimize development. Steve Williams quashed rumors that it is looking for larger North Sea assets after 153 net drilling locations supported buying into the Rosebank oil development for $66 million (US$50 by viscosity data boost inventory 75%. million) in August. “We are not out to build an empire or grow for the sake of growing,” Baytex has identified 153 net drilling Williams said. “Our goal is always to add long-term value for our shareholders. We will locations on the acquired acreage, continue to evaluate every opportunity that comes along.” supported by viscosity data from more Suncor had announced a $2.5 billion equity financing in June to reduce debt and than 200 test wells. With these additions, pursue “opportunistic growth transactions.” Shortly afterward, it was rumored that the company’s Peace River inventory will Suncor was on the hunt for North Sea grow 75% to more than 350 net locations. and Eastern Canada acquisitions. These CEO: Window closing for opportunistic Additional upside includes waterflood buyers with prices around $50/bbl. stories preceded the Rosebank deal and and enhanced oil recovery opportunities. followed a series of oil sands acquisitions in Alberta: an incremental 10% WI in the The acquisition will increase Baytex’s Fort Hills project from Total for $310 million, the $6.6 billion takeover of Canadian Peace River production by ~20%. It also Oil Sands Ltd. and an incremental stake in the Syncrude project from Murphy Oil includes 3,000 boe/d that is shut-in due to for $937 million. regulatory requirements and economics, Williams also denied reports that Suncor was marketing its retail assets or one of which Baytex estimates can be brought its four refineries in Alberta, Ontario, Quebec and Colorado. He highlighted other sell- back online with a capital investment of side moves, including the $497 million sale of a 49% stake in Suncor’s East Tank Farm $30 million. Assuming favorable oil price midstream project being built in Alberta’s Wood Buffalo region to two First Nations in 3,000 boe/d flowing plus 3,000 boe/d September and October and the divestment process for its lubricants business—which that can be brought online for $30MM. four days later yielded a $1.125 billion deal with HollyFrontier (see Oct. 31 issue). Also, CFO Alister Cowan said the company plans to divest some of its non-core wind conditions, the company expects to invest assets valued at 275 million within the next year. most of these funds within the next few years. The assets also include a substantial infrastructure network that processes most Top Five New Canadian Upstream Deals in this Issue of the production, including an integrated Date Buyer Seller C$MM Type Location oil pipeline, centralized oil processing facilities, a blended oil sales pipeline and 11/17/16 Spartan Energy Arc Resources $700 Property SE Sask. a gas gathering and conservation system. 11/02/16 Tamarack Valley Spur Resources $408 Corporate Multiple The Peace River has been a core area 11/03/16 Burgess Energy Holdings Athabasca Oil $129 Royalty Oil sands since Baytex commenced operations there in 2004. The company touts its Peace 10/31/16 Undisclosed RMP Energy $114 Property Montney River operations as having some of the 11/08/16 Baytex Energy Undisclosed $65 Property Peace River industry’s strongest capital efficiencies thanks to its multi-lateral drilling and Total $1,415 production techniques. Baytex expects to Note: Based on deals with disclosed values. close the acquisition by year’s end, funded Source: PLS Global M&A Database www.plsx.com/ma by a $100 million bought-deal financing. Find more A&D news at www.plsx.ca To learn more about PLS, call 403-294-1906 Volume 25, No. 16 5 A&D Legal & Regulatory What’s on the Market Marquee & Alberta Oilsands Husky shops development assets in Banff light oil play win latest merger round Husky Energy plans to sell its operated light oil development assets in the Alberta Oilsands will not be required Michichi area of southern Alberta. The company has engaged AltaCorp Capital, to hold a shareholders’ meeting to approve CIBC and Scotia Waterous to jointly market the assets, which cover 37,459 net acres its planned merger with Marquee Energy, (~38,600 gross) with Q3 production of 820 boe/d (57% oil and NGLs). Alberta’s Court of Appeal ruled. More than 40% of the Michichi position (16,092 net acres) targets the The deal is organized as a plan of proven Banff light oil play at 4,265-4,445 ft with 71 locations high-graded arrangement, with each Marquee through 3D seismic and extensive geotechnical analysis. Husky has doubled Banff share being exchanged for 1.67 Alberta production in the past two years to 755 boe/d and believes its development plan can Oilsands shares and Marquee becoming a further increase output to 3,500 boe/d. The company’s Banff type wells have EURs of wholly owned subsidiary before merging 167,00 boe and D&C costs of $1.7 million. into Alberta Oilsands. Although the Development economics are supported by gathering infrastructure that is also combined firm will have Marquee’s name included in the sale effort (100% WI) with licensed capacity exceeding 2,200 bbl/d of and management, the court found that liquids and 6.0 MMcf/d of raw gas. Current utilization of these facilities is less than Alberta Oilsands shareholders do not have 20%. To learn more, request PLS Listing No. PP 13621DV. a say in the deal since they will not need LGX southern Alberta assets offered in receivership sale to trade in their shares. Under a court-supervised receivership process run by Ernst & Young, southern Appeals court OKs terms that avoid Alberta-focused LGX Oil + Gas will divest assets producing 1.35 MMcfe/d (19% oil), Alberta Oilsands shareholders vote. primarily consisting of Big Valley/Banff oil and Bow Island gas in the operated Blood area. Sayer Energy Advisors has been engaged to assist in the sale, which The appellate decision reverses a also includes working interests in minor producing properties at Aden/Black ruling by the Court of Queen’s Bench Butte, Enchant/Vauxhall, Retlaw, Badger and Long Coulee in southern Alberta, Ukalta of Alberta in September that the vote in central Alberta and Balsam on the Peace River Arch. LGX’s strategic Manyberry was necessary because the companies assets are not included in the sale process. had chosen the arrangement structure LGX is currently producing 37 bo/d Overpressured Big Valley & Banff form part of Alberta Bakken petroleum system. to avoid a battle with Alberta Oilsands’ from the Big Valley and Banff formations, largest shareholder, Toronto-based which form part of the Alberta Bakken petroleum system. These zones are generally Smoothwater Capital. Smoothwater, overpressured and have proven productive at several locations on the company’s which owns a 17.08% equity stake in 60,480 acres at Blood. In addition, a Lower Banff perforation in the build section of Alberta Oilsands, wants the company one Big Valley well flowed 300 bo/d—similar to rates achieved byTorc Oil & Gas at to distribute its ~$32 million cash on Monarch. Current D&C costs run $5.2 million. hand to shareholders rather than pursue Bids are due Dec. 15. To learn more, check out PLS Listing No. PP 11261CO. the merger, which PLS values at $76.8 million including Marquee’s $50 million Canamax seeks to shed non-core Retlaw & Hardy assets debt. The investment firm is considering Private Montney driller Canamax Energy is working with Sayer Energy an appeal to Canada’s Supreme Court. Advisors to sell non-core assets in the Hardy area of southern Saskatchewan and Alberta Oilsands received its Retlaw area of southeast Alberta. The properties are both cash flow positive cash reserves as compensation for the and have combined net production of 236 boe/d (39% oil and NGLs), proved cancellation of its key leases near Fort reserves of 482,000 boe (67% oil and NGLs, 85% PDP) and 757,000 of 2P McMurray. The merger with Marquee reserves (73% oil and NGLs). Bids are due Dec. 15 for these assets, which can be will provide it with a new, consolidated viewed at PLS Listing No. PP 13620DV. asset base in the Michichi area of At Hardy, Canamax owns 27,744 net Cash flow-positive 236 boe/d output is southern Alberta, focused on light oil mostly gas, but reserves mostly liquids. acres (28,096 gross) with two Bakken and gas instead of oil sands. On its own, wells producing 40°API oil at a combined rate of 48 bo/d. The leases are all on Crown Marquee can’t afford to develop the assets, land less than 1 km north of the US border and mostly expire after 2017. Canamax which include Q1 production of 4,430 has identified 13 horizontal Bakken locations on the acreage, which also targets the boe/d (46% oil and NGLs), 2P reserves Torquay, Ratcliffe, Birdbear, Winnipegosis and Red River. of 19.66 MMboe and 300 oil-focused At Retlaw, Canamax has various stakes in 32,640 gross acres with net production horizontal locations. Management of 188 boe/d (23% oil, 1% NGLs), which it prefers to sell in one transaction. Canamax from both companies believe that their has identified six distinct upside areas at Relaw with drilling and recompletion upside complementary circumstances make in multiple zones including the Glauconitic, Ostracod, Lower Mannville, Sunburst, them a perfect match. Belly River, Second White Specks and Ellerslie.

For general inquiries, email [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 6 November 28, 2016 What’s on the Market CENTRAL ALBERTA Questfire seeks farmouts & sales of multiple Alberta assets Following a strategic review launched in March, Alberta producer Questfire ALBERTA NON-CORE PROPERTY Energy has hired Sayer Energy Advisors to arrange the sale or farmout of assets in 2-Producing Properties. BRAZEAU, PEMBINA, WOLF LAKE--- multiple areas across its portfolio. The assets are generating net production of 11.3 - HINTON & WASKAHIGAN AREAS PP MMcfe/d (22% oil and NGLs), representing 43% of the company’s total Cardium, Rock Creek, Ostracod, Shunda- output. They have 2P reserves of 66.2 Bcfe, of which 77% is at Medicine --Mannville And Other Formations. Hat, Carstairs, Chigwell and Brazeau River. Seismic Data Available. ~500 Questfire plans to divest its assets in the Medicine Hat, Carstairs, Garrington, WORKING INTEREST FOR SALE BOEPD Comb. Operating Income: $1,400,000 Oberlin/Delburne, Gadsby, Willesden Green, Chigwell, Ferrybank, Westerose, Brazeau Total Proved Reserves: 2,966 MMBOE River, Lloydminster, Mannville, Cache, Fir, Niton-Leaman, Kakwa and Girouxville Total Proved Plus Probable: 4,127 MMBOE areas. The farm-in opportunities are in the Morningside, Open Lake, Westerose, CONTACT AGENT FOR UPDATE BUYERS! NO Viking-Kinsella, Mannville, Fir and Berland River areas, where Questfire is seeking PP 11425 COMMISSIONS partners to develop upside potential. ALBERTA PROPERTY SALE Cash offers are being accepted until Nov. 29. Request PLS Listing No. PP 2-Producing Properties. 11119FO for additional information about these opportunities. BIGSTONE & WILSON CREEK 3-Horizontal Montney Producing Wells. PP Grizzly markets 703 boe/d Pembina Nisku light oil property 2-Belly River Oil Producing Wells. Privately held Grizzly Resources has hired CB Securities to market its Nisku oil OPERATED & NonOp WI FOR SALE 49 property in the Pembina area of south-central Alberta. The company has an operated Comb Est. Net Production: 49 BOED BOED 46.9% WI in two producing wells, one water injector, one potential water injector and PV10 Value: $11,600,000 Total Proved Reserves: 983 MBOE associated pad facilities with recent net production of 703 boe/d (83% light oil, 3% Total Proved Plus Probable: 3,510 MBOE NGLs). Upside opportunities include waterflood optimization and implementation of CONTACT AGENT FOR STATUS a tertiary miscible flood. PP 11101 The property lies within a Nisku pool that has been well delineated by drilling and 3D seismic, with OOIP of 8.2 MMbo plus a significant gas cap. The formation has ALBERTA ROYALTIES more than 10% porosity and permeability of 800 mD with expected recovery factors of 537-Wells. 221,400-Acres. ~345 Sections. CENTRAL & SOUTHERN ALBERTA 35-55%. See PLS Listing No. PP 11179DV for details on the property, bids for which 255 Potential Well Locations. RR are due Dec. 8. North Fee Lands Rights: Surface To -- -- Base Cretaceaous & Any Zone Below South Fee Lands Rights: Surface - Base Canadian Spirit eyes options to boost Montney acreage value 5% NET ROYALTY INTEREST ~270 Montney explorer Canadian Spirit Resources announced a strategic alternatives Current Production: ~267 BOED BOED process to maximize the value of its resource base in the Farrell Creek and Altares Cum Production: 1,600 MMBO & 2.4 TCF areas of northeast British Columbia. The company believes its ~$20 million market cap Est 2016 Net Revenue: $3,392,000 CALL undervalues this acreage in light of its strategically advantaged position for delivery PV10: $23,300,000 PLS FOR CONTACT AGENT - POST BID STATUS INFO of Montney gas to West Coast LNG projects. Peters & Co. has been hired to run the RR 13397 review, which will consider a sale of the company or a portion of its assets, merger, farm-in or JV, among other options. Seen as undervalued given advantages ALBERTA STRATEGIC ALTERNATIVES 79-Sections. Canadian Spirit owns two contiguous for gas delivery to LNG projects. blocks covering 26,044 net acres (48,178 GREATER RED EARTH Light Oil Opporuntity. PP gross) at Farrell Creek and Altares. Nearly two-thirds of the acreage is owned with Primary Target: Slave Point 100% WI; Canadian Spirit has 31% WI in the remaining acreage, which is held in a JV 115 Risked & Waterflood Locations with Canbriam Energy. Five vertical and eight horizontal wells have been drilled on Avg 79% WI AVAILABLE the acreage, delineating net YE15 2P reserves of 10.6 Bcf. The partners shut in their Q2 2016 Production: 1,293 BOED ~1,300 JV wells March 31 due to low gas prices but resumed output of 4.4 MMcf/d on Oct. 4 Acreage Is 97% Liquids. BOED Est 2016 Net Op. Income: $783,333/Mn (1.5 MMcf/d net to Canadian Spirit). Proved Reserves: 5.3 MMBOE The acreage has direct access to the Spectra mainline and proposed TransCanada P+P Reserves: 7.9 MMBOE pipeline that will deliver gas to Chevron-operated Kitimat LNG and Shell-operated CONTACT AGENT FOR UPDATE Prince Rupert LNG. It is also one of only four companies with a pipeline-connected PP 13274DV fresh water source from the Williston Lake Reservoir to support Montney fracking. BRAZEAU RIVER AREA. T45 & 46. Canadian Spirit owns 25% WI and Canbriam owns 75% WI in the 25-km pipeline, 1-Gas Unit. 10,400-Gross Acres. PP which is expected to reduce completion costs by $500,000 per well in full development 0.92% Unitized WI AVAILABLE GAS mode. Canadian Spirit has $1.1 million of cash on hand, no debt and $100 million of CONTACT SELLER FOR MORE INFO UNIT tax pools available. PP 13362

Find more A&D news at www.plsx.ca To learn more about PLS, call 403-294-1906 Volume 25, No. 16 7 A&D What’s on the Market Midstream & Downstream PLS markets Alberta oil deals Tidewater buys Brazeau River gathering & storage for $15MM for two private firms Responding to increasing drilling in the Brazeau River area of Alberta’s Deep PLS Energy Advisory Group Basin, Tidewater Midstream & Infrastructure signed a $15 million cash deal to is marketing a frontier exploration acquire 50% WI in a 150-km gas gathering system connected to its deep-cut processing opportunity on largely HBP acreage plant and pipelines in the area. The acquisition also includes three proven gas in the Greater Pine Creek area of west- storage reservoirs directly connected to the Brazeau River complex as well as central Alberta for Riverstone Holdings pipelines and infrastructure in the Kaybob/Windfall area. portfolio company Kerogen Exploration. Several new and existing customers Enhances value of Brazeau complex have expressed interest in accessing the Kerogen, which operates in Canada as and planned fractionation facility. Black Shale Resources, is seeking a Brazeau River complex via the acquired non-operating JV partner to develop pipelines. Tidewater is also in talks with multiple companies to contract the storage assets, more than 700 horizontal locations in which will offer customers an egress option and improved gas pricing—particularly the Second White Specks oil play. It is when Phase 1 of its infrastructure project dual-connected to Enbridge and Veresen’s offering 50% WI in its 112,000-net-acre Alliance pipeline system and to TransCanada comes online in 1Q17. Tidewater expects position (153,000 gross), which is 75% annualized EBITDA of $3.5 million from the assets including operational synergies, HBP from legacy vertical wells. implying a valuation of less than 4.5x EBITDA. The upstream portion of the acquisition was January 7, 2015 • Volume 08, No. 01 MidstreaMNews Kerogen offers 50% WI in more than Serving the marketplace with news, analysis and business opportunities a requirement by the seller. The assets generate Cheniere’s Corpus Christi LNG plans coming together Midstream sector a pipeline Cheniere Energy received word that FERC had approved plans for its Corpus for stability & growth Christi LNG liquefaction facility and related infrastructure. The project will have three While oil prices plunged unabashedly 700 Second White Specks locations. 4.5 mtpa LNG trains, giving it aggregate production capacity of 13.5 mtpa. The site throughout the second half of 2014, will also include three LNG storage tanks with capacity of about 10.1 and continue their fall as the new year minimal cash flow but contain significant mineral Bcfe and two LNG carrier docks. Cheniere believes LNG exports gets underway, midstream MLPs that from the facility couldNext begin in 2018. Right MidstreamNews now, the plant is awaiting US Department operate under long-term fee-based of Energy approval to ship to markets not covered by US free trade agreements. contracts are a continued bright In the meantime, Cheniere and FERC approval obtained, awaiting spot for investors seeking both the Kinder Morgan Texas Pipeline, DOE nod to ship to non-FTA markets. stability that fixed, incremental rights around the Brazeau River complex that Kinder Morgan Tejas Pipeline and the income brings and the growth that needs The 200-250-ft-thick overpressured Tennessee Gas Pipeline Co. have entered a multi-year storage and 15-year transport to occur due to booming US production. agreement to ship gas to the proposed Corpus Christi LNG plant. Under the terms Imperviousness to price swings as Tidewaterof the agreement, Kinder Morgan will provide breaks 563 MMcfd of transportation ground service well as high demand onfor services kept and 3.0 Bcf of storage capacity to serve the 1.8-Bcfd facility. The deal could also be At least nine IPOs queued up for increased to include up to 820 MMcfd of capacity if warranted. Continues On Pg 12 formation offers long-life production of Tidewater hopes to divest within the next two years midstream investors so far this year. Veresen & KKR will spend billions in Montney buildout fractionationVeresen Inc. and legendary investment firm Kohlberg facility. Kravis Roberts & Co. midstream investment flowing freely last formed 50:50 JV Veresen Midstream into which the partners will invest more than year, particularly in IPOs. The sector $4.2 billion (C$5.0 billion) to support production in the liquids-rich Montney gas play is expected to be on pace to perform in exchange for volume commitments. on the Alberta-British Columbia border. Veresen Midstream’s keystone investment similarly this year, staying buoyant due 42°API oil amid favorable stress regimes to volumes that will flow under fee-based will be pipeline and processing assets acquired from Encana and its Cutbank contracts, in many cases, with the MLP's Expects 1.2 Bcfd processing capacity Continues On Pg 14 Ridge Partnership JV for about $509 sponsor firm itself. & 800 miles of gathering pipes by 2018. million (C$600 million). Then, Veresen and brittle rock conducive to fracking. Midstream will provide compression and transportation services to the sellers for 30 FEATURED DEALS years. For Encana, the transaction unlocks $412 million in value from non-core assets it could apply to drilling. For Veresen and KKR, the deal illustrates the edge non- TUSCALOOSA DRILLING PROJECT drilling companies have in picking up solid assets while financing options for cash- ~20,000-Contiguous Gross Acres. MAJORITY IN PIKE CO., MISSISSIPPI strapped upstreamers in the era of cheap oil becoming tighter. TUSCALOOSA MARINE SHALE DV The 6,500-ft formation depth offers cost- The assets are in the Dawson, BC area operated by Encana both independently and Also Tangipahoa & St. Helena Ph., LA CST shareholders approve $6MM purchase by Couche-TardContinues On Pg 8 via its Cutbank Ridge Partnership JV with Mitsubishi Corp. 169-Drilling Locations. 80-Acre Spacing. TMS SEEKING JV PARTNERSHIP; 75% NRI PLAY DOT railcar regulations may need more time, study says Area EURs: 600-800 MBO/Well Area Also Contains High BTU Gas. A railcar industry trade group says one-third of the oil transported out of the DV 3395L effective drilling, contributing to D&C Shareholders of Texas-based fuel and convenience Bakken retailer by railcars could be forced onto trucksCST in the next four years. TheBrands Railway voted Supply Institute claims that there simply aren’t enough resources to retrofit all the OKLAHOMA MINERAL PACKAGE railcars that need to comply with new US Department of Transportation 28-Active; 5-Compl; 1-Permit; 1-WOC standards within two years, resulting in the idling of tens of thousands 985-NET MINERAL ACRES of cars. The DOT is expected to complete standards and compliance MISSISSIPPIAN & WOODFORD M deadlines for tank cars early this year 71 Active Permits Offsetting Position costs of $5.9 million. overwhelmingly in favor of the $5.7 billion (US$4.4 billion) sale DOTof says over 16,000the cars a year can companyCURRENT & ONGOING DEVELOPMENT to after initial proposals made last July. be retrofitted, reality says 6,400-6,600. 3/16ths Royalty On Most Current Leases. “They can’t all be modified by the Net Prod: 8 BOPD, 27 MCFD, 4 BNGLD MISSISSI- deadline, and the only alternative would be to yank them out of service,” said Kevin Total Monthly Revenue: ~$58,000/Mn PPIAN Neels of the Brattle Group, which the Railway Supply Institute commissioned Woodford EUR’s: ~350 MBOE/Well for the study. Woodford EUR/Unit: 772 MBO & 4.8 BCF Interested parties should check Alimentation Couche-Tard announced in August. The deal won 99.7% approvalMississippian EUR’s: ~350 MBOE/Well at About 75,000 older tank cars, known as DOT-111s, fall into the category requiring the upgrades as they have been determined to have the least crash-resistant components. Miss Lime EUR/Unit: 1.4 MMBO & 5.6 BCF Offers Due: January 15, 2015 It was DOT-111s that crashed and exploded in Lac Megantic, Quebec in July 2013, M 2098RR killing 47 people, prompting continent-wide safety concerns. Continues On Pg 10 out PLS Listing No. DV 12009 for a special shareholders’ meeting Nov. 16, setting it up for a closingAll Standard Disclaimers in & Seller Rightsearly Apply. additional information or contact David 2017 pending US and Canadian regulatory approval. CST employs more than 14,000 people at more than 2,000 retail locations in the US Southwest Interested parties are in talks to buy with additional positions in Texas, New York, the US Southeast and Eastern Canada. It Taku’s Vermilion heavy oil property. also controls retail MLP CrossAmerica Kessler (713-650-1212, dkessler@plsx. Partners, which distributes fuel to more Couche-Tard to sell majority of CST’s Canadian assets to Parkland for $965MM. com) to arrange an in-person prospect than 1,100 US locations. presentation. Also ask about Kerogen’s Upon closing the acquisition, Couche-Tard will sell most of CST’s Canadian US exploration opportunities in a business to Red Deer, Alberta-based Parkland Fuel for $965 million (US$750 million). southern Florida conventional liquids These assets include CST’s dealer and commissioned agents retail business, commercial play (DV 5779L) and in the Permian, cardlock business, commercial and home heat businesses, and several of its company- southeast of Apache’s recently unveiled operated stores. The deal also allows Parkland to add the Ultramar retail fuel brand and Alpine High play (DV 5694). give it CST’s corporate presence in Montreal. It is expected to add annual fuel volumes In east-central Alberta, PLS is in talks exceeding 3 billion liters, taking Parkland’s overall run rate to more than 13.3 billion liters. with multiple interested parties for the Parkland acquires propane exchange firm PNE Corp. for $17MM— Vermilion heavy oil property marketed In a separate deal, Parkland will buy the assets of PNE Corp. for $17 million or 5.7x for privately held Taku Gas. The assets adjusted EBITDA. PNE is a national provider of propane cylinder exchange services, include oil-weighted net production of with annual volumes of 17 million liters. The deal expands Parkland’s propane business 50 boe/d and six saltwater injection wells to include 20-lb cylinder exchange nationwide in addition to its current 33-lb and 100- with considerable additional capacity lb offerings in Ontario. Parkland CEO Bob Espey said the acquisition “will allow us connected to a single battery. The facility to grow our commercial capabilities by introducing and leveraging PNE’s expertise in has potential for revenue from third-party cylinder refilling and distribution from British Columbia through to Quebec.” water disposal. Check out PLS Listing Parkland also signed a separate deal to acquire two truck stops and a retail station in No. PP 11120DV or contact Steve and around Cheyenne, Wyoming, from 7-Eleven. The sites are expected to have annual Henrich in PLS’ Calgary office (403-294- fuel sales exceeding 55 million liters. Both deals are expected to close by year’s end. 1906, [email protected]). For general inquiries, email [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 8 November 28, 2016

CENTRAL ALBERTA EAST ALBERTA SOUTHERN ALBERTA CANADA PROPERTY PACKAGE 5 DONALDA AREA. T41-42. ALDERSON WEST AREA. T15. 24,000-Gross Hectares. 7-Wells. 2-Wells. 4,640-Gross Acres. 1-Gas Unit. 1,280-Gross Acres. BIRCH HILLS EAST AREA. T75-81. PP Production From Belly River Production From Glauconitic Sands PP Peace River Arch & Wabamun Formations. Targets: Viking & Belly River PP ~9.4% NonOperated WI AVAILABLE 2D & 3D Seismic Data Available. 3.729746% WI In One Unit BELLY Producing Unit. GLAUCONITIC Varying OPERARED & NonOp WI SUB 16.6-33.33% WI In One Unit RIVER Operated By: Cenovus Energy Total Net Production: 45 BOED PACKAGE Significant 3rd Party Revenue From Unit. CONTACT SELLER FOR MORE INFO Proved Plus Reserves: 81 MBOE CONTACT SELLER FOR MORE INFO PP 13606 CONTACT AGENT - POST BID STATUS PP 13375 PP 12205 WESTERN CANADA SALE SUB PKG 3 VERMILION AREA. T50. 2-Producing Areas. CANADA PROPERTY PACKAGE 6 33-Active Wells. 6-SWD. 1-Suspended. TABER AND HUSSAR ALBERTA 21,000-Gross Hectares. 10-Wells. Sparky Formation. Majority Of Lands Are HBP PP BIRCH HILLS WEST. T75-81. PP Additional Upside P&NG TBO Mannville. Large Contiguous Land Position. Peace River Arch & Wabamun Formations. Production To Date >95% Oil. PP Banff And Mannville Oil Objectives. 2D & 3D Seismic Data Available. 66.66% OPERATED WI AVAILABLE 50 Shallow Decline Prod Depths: 800-1,000m OPERATED & NonOP WI FOR SALE 145 Net Production: ~50 BOED BOED WORKING INTEREST FOR SALE ~7,900 Total Net Production: 145 BOED BOED Total Cumm’d Production: ~3.46 MMBOE Taber Production: ~7,740 BOED BOED Proved Probable Reserves: 1,007 MBOE Asset Has LLR of ~0.9. Hussar Production: ~7,970 BOED CONTACT AGENT - POST BID STATUS PP 11120DV Existing Facility & Pipeline Infrastructure. PP 12206 ORIGINAL OFFERS DUE MID MARCH DEALS NORTHERN ALBERTA CONTACT AGENT - POST BID STATUS FOR CENTRAL ALBERTA ASSET SALE PP 12073 SALE 11-Units. 327-Sections. ~210,000 Acres. STRATEGIC ALTERNATIVES SWAN HILL AREA 13-Infill Wells. ~87,000-Net Acres. GADSBY. T37. BEAVERHILL LAKE FORMATION PP 2-SAGD Facilities & 41-SAGD Well Pairs. 2-ShutIn Wells. 1,280-Acres. Low Risk - Impactful Opportunites 100% OPERATED WI AVAILABLE PP Viking. ~3,700 Ft. PP OPERATED WI AVAILABLE Current Production: ~8,000 BOPD ~8,000 Mannville. 4,600 Ft. Current Production: 13,000 BOED 2015 Production: ~14,500 BOPD BOPD 100% OPERATED WI AVAILABLE VIKING 12-Mn Avg Operating Income: $4,166,666 13,000 Estimated 2P Reserves: 436 MMBO Currently ShutIn Due To Prices. Total 2P Reserves: 74.8 MMBOE (76% Oil) BOED CONTACT AGENT - POST BID STATUS PP 11461DV PLS Total 2P Reserves PV10: $951,000,000 PP 13495CO High WI & Operated Infrastructure BUYERS! NO COMMISSIONS SOUTHEAST ALBERTA ASSET SALE CONTACT AGENT FORE MORE INFO JOARCAM AREA. T47-50. 7-Total Wells. 640-Acres. PP 13542 28-Producing Wells. 8,000-Gross Acres. CRESSFORD AREA. Production From Viking & Belly River Producing From Mannville Pool PP CENTRAL ALBERTA ASSET SALE Targets: Viking, Belly River, Ellerslie, -- PP Rights From Surface To Base Of Mannville ~37,458-Net Acres. -- Sparky, Wabamun & Glauconitic EDMONTON 6 UnBooked Drilling Locations. MICHICHI & BANFF AREAS 1.95-100% WI AVAILABLE All Wells Flow-Lined To Proration Battery Proven Light Oil Opportunity PP CONTACT OWNER FOR MORE INFO 100% OPERATED WI AVAILABLE MANNVILLE 71 Potential Locations Identified. PP 13353 Current Production: 20 BOPD & 80 MCFD 3D Seismic & Geotechnical Data Available PDP Reserves: 107 MBO & 225 MMCF Avg ~97% OPERATED WI AVAILABLE NORTHWEST ALBERTA ASSETS PDP PV10: $2,814,000 Q3 2016 Production: ~820 BOED ~820 145,924-Gross Acres. 115,151-Net Acres. Access To IPL Hamilton Lake Pipeline & Production Is 57% Liquids. BOED DEEP BASIN, PEACE RIVER ARCH & Throne Truck Terminal. Total P+P Reserves: 7,606 MBOE WABASCA AREAS. PP CONTACT AGENT FOR MORE INFO Total P+P PV10: $72,200,000 83-Horizontal Development & Infill Drilling. PP 13272DV 100% Owned & Operated Gathering Facilities. Waterflood Upside Targeting Light Oil. CONTACT AGENT FOR MORE INFO Net Production: 2,618 BOED (56% Liquids) 2,490 MULTIPLE ALBERTA PP 13621DV CALL PLS FOR Total Proved Reserves: 6,412 MBOE BOED INFO Probable Reserves: 9,760 MBOE CANADA PROPERTY PACKAGE 7 CENTRAL ALBERTA PROPERTY NPV10: $58,295,000 2-Properties. 5-HZ Producers. 6-InActive. 25,000+ Acres. CONTACT AGENT - POST BID STATUS ALBERTA. HUSSAR/ROSEBUD AREA PP 13072DV DAWSON T79 & PROGRESS T78 PP Pekisko Formation. PP Bluesky & Gething Formations. Proprietary 3D Seismic Data RAINBOW AREA. T105-109. OPERATED WI FOR SALE 100% OPERATED WI AVAILABLE 2-Producing Wells. 19,040-Gross Acres. Progress Recent Net Prod: 21 BOED SUB Net Production: ~87 BOED 87 Production From Bluesky PP Proved Probable Reserves: 66 MBOE PACKAGE Net Operating Income: ~$47,500/Month BOED Targets: Slave Point, Gething & Keg River ORIGINAL OFFERS DUE JULY 7 Total Prov+Prob Reserves: 114 MBOE 1.16-100% OPERATED WI AVAILABLE BLUESKY CONTACT AGENT - POST BID STATUS CONTACT AGENT FOR STATUS CONTACT OWNER FOR MORE INFO PRODUCTION PP 12207 PP 11727DV PP 13373

Find more listings at www.plsx.com/listings No commission! List today, call 403-294-1906 Volume 25, No. 16 9 A&D A&D MULTIPLE ALBERTA Spartan buys Arc’s Saskatchewan assets Continued From Pg 1 CANADA PROPERTY SUB PACKAGE 4 The acreage spans the conventional Mississippian fairway and provides a drilling Miscellaneous Wells & Land. inventory of 404 development locations (65% on Crown acreage) along with workover, ALBERTA Pendant, Etzikom, Taber South, Enchant RR recompletion and waterflood expansion opportunities. Along with this acreage, Spartan Eagle Butte, Bow Island, Medicine Hat, will receive a large proprietary 2D and 3D seismic database. The acquisition Chauncey, Queenstown, Jenner, Cessford also includes stakes in the Cenovus Energy-operated Weyburn oil field and Heathdale, Wayne & Various Areas. SUB Apache-operated Midale oil field, two of the largest CO2-flood projects in ROYALTY INTEREST FOR SALE PACKAGE Canada. These long-life assets have a low decline rate of 4%, generating Total Recent Net Production: 42 BOED predictable free cash flow that can be CONTACT AGENT - POST BID STATUS Acquisition includes stakes in two of RR 12204PP reinvested in other Spartan assets. Canada’s largest CO2-flood projects. The acquisition will be funded CANADA PROPERTY SUB PACKAGE 9 through Spartan’s credit facility along with equity financings totaling $505 million. 11-Properties. The company expects to raise $250 million in a bought-deal financing led by Peters ALBERTA Bow Island, Little Bow, Coyote/Watts- PP & Co. and TD Securities and $255 million in a private placement. Peters & Co. and -Carbon, Trochu, Fenn West/Mikwan, TD Securities are also advising Spartan on the acquisition, which is scheduled to close Ewing Lake, Evi, Pouce Coupe, Mirage- Dec. 8. RBC Capital Markets is advising Arc. -Gordondale & Fourth Areas. SUB The Arc deal will make Spartan one of the largest oil producers in Saskatchewan. NonOperated Working Interest For Sale PACKAGE It is by far the largest in a series of acquisitions made this year by the company. During Comb. Recent Net Prod: 66 BOED Comb Proved Reserves: 503 MBOE Q2 and Q3 the company completed four accretive acquisitions totaling $172.2 million CONTACT AGENT - POST BID STATUS CALL to consolidate its southeast Saskatchewan position. Those deals added 3,430 boe/d PP 12209 PLS FOR (87% oil and NGLs), 10.1 MMboe of PDP reserves, 125,262 net acres (57% Crown) INFO and 314 net drilling locations. CANADA RECEIVERSHIP SALE Arc expects to replace production from Arc, meanwhile, has been working Producing & Non-Producing Properties. Saskatchewan exit via Montney drilling. CENTRAL & SOUTHERN ALBERTA since 2009 to increase its holdings in the Oil & Natural Gas Properties Producing-- PP Montney shale while divesting non-core assets. The Saskatchewan sale will brings From Big Valley/Banff, Bow Island --- its divested production since 2009 to 21,500 boe/d. The company expects to replace Ellerslie And Other Formations. the divested production as it develops its Montney acreage in the Dawson, Parkland/ OPERATED WI FOR SALE 225 Recent Sept 2016 Production: 225 BOED BOED Tower, Sunrise, Pouce Coupe, Attachie, Septimus, Blueberry and Sundown areas of Est Net PV10 Value: $11,700,000 northeast British Columbia and northern Alberta. Total Proved Reserves: 827 MBOE “Our talented field and technical teams were instrumental in creating significant value for Total Proved Plus Probable: 2,025 MBOE DEALS our shareholders from our high-quality Saskatchewan assets over the past 20 years,”Arc CEO ACCEPTING CASH OFFERS FOR Myron Stadnyk said. BIDS ARE DUE DECEMBER 15, 2016 SALE PP 11261CO Arc Resources Transaction & Other Recent Acquisitions by Spartan MULTIPLE ALBERTA PROPERTIES Arc Resources Transaction Four Acquistions in 2Q16-3Q16 27-Total Wells. ~17,080-Gross Acres. SOUTH & SOUTHEAST ALBERTA Purchase price $700.0 million Purchase price $172.2 million PNG Rights: Base To Viking, Belly River, PP Production 7,500 boe/d Production 3,430 boe/d Edmonton, Jurassic, Mannville, Ellerslie, Medicine Hate, Colorado & Lloydminster % oil and NGLs 98% % oil and NGLs 87% Varying NonOperated Working Interest Est. 12-month cash flow $84.9 million Est. 12-month cash flow $27.8 million Avg Daily Production: 2 BOED MINOR Net Operating Income: $4,092 PROPERTIES Net acreage 98,000 Net acreage 125,262 PDP Reserves: 4.5 MBOE Net drilling locations 404 Net drilling locations 314 Net Proved PV10 Value: $41,300 CONTACT AGENT - POST BID STATUS PDP reserves 22.5 MMboe PDP reserves 10.1 MMboe PP 13500 2P reserves 39.3 MMboe 2P reserves 24.4 MMboe Acquisition metrics Acquisition metrics Increase deal Production $93,333/boe/d Production $50,204/boe/d flow & business Est. 12-month cash flow 8.2x Est. 12-month cash flow 6.2x opportunities. PDP reserves $31.11/boe PDP reserves $17.05/boe Subscribe to PLS! For available options, 2P reserves $17.81/boe 2P reserves $7.06/boe email [email protected] Source: Spartan Energy Nov. 15 presentation and Nov. 17 press release

For general inquiries, email [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 10 November 28, 2016

SASKATCHEWAN BRITISH COLUMBIA MULTIPLE AREAS SASKATCHEWAN PROPERTIES CECIL LAKE AREA. T84. CANADA COMPANY STAKE SALE 9-Oil Producers; 1-SWD; >10-PUD 1-Unit. 640-Gross Acres. 1-Producing & 4-NonProducing Properties. MANOR AREA 2 Lines Of Proprietary Data & 5 Lines -- PP SASKATCHEWAN & MANITOBA IMMEDIATE UPSIDE PP -- Of 2D Data Available For Trade 6 unbooked horizontal locations. PP Manor Tilston Oil Pool. 12.188% UNIT WORKING INTEREST WI FOR Viking, Jurassic & Mississippian Fm. Frobisher & Midale Oil Wells. Unitized Zone Operated By: Devon Canada SALE Offsetting Production From All Prospectives. FOR 100% OPERATED WI FOR SALE CONTACT SELLER FOR MORE INFO WORKING INTEREST FOR SALE SALE Total Production: ~502 BOPD ~500 PP 13354 Recoverable Reserves: 43.7 MBBls/Well. Expected Future Production: 600 BOPD BOPD CONTACT AGENT FOR MORE INFO Manor Proved Reserves: 445 MBOE SOUTH KLUA AREA. T94. PP 11227DV Manor Net Proved PV10: $23,443,000 DEALS 1-Producing Well. 2,011-Gross Acres. CONTACT AGENT - POST BID STATUS FOR Targets: Keg River & Pine Point CANADA NONCORE ASSETS SALE PP 13109DV SALE 2D Seismic Idefitify 2 Undrilled Keg -- PP 132,910-Net Acres. -- River Reef Anomalies PINE DEEP BASIN, PEACE RIVER ARCH & MOOSE MOUNTAIN AREA. T10. 9.38-100% WI AVAILABLE POINT NORTHEAST BRITISH COLUMBIA PP 1-Unit. 320-Gross Acres. CONTACT SELLER FOR MORE INFO Proven Formations: Cretaceous, Jurassic Tilston Beds Has Waterflood Potential. PP 13364 & Triassic Zones 2D & 3D Seismic Data Available PP ~208 Net Sections Of Land 1,715 2.5-7.5% WORKING INTEREST Non-Unit. MULTIPLE AREAS Avg ~46% WI AVAILABLE BOED 4.23373% WORKING INTEREST Unit. UNITIZED Current Prod: 1,715 BOED (85% Gas) CONTACT SELLER FOR MORE INFO ALBERTA & SASKATCHEWAN ASSETS Total Proved Reserves: 3.6 MMBOE PP 13313 Various Producing Properties. Total Proved PV10: $13,400,000 CALL Gathering Systems & Major Pipelines PLS FOR MULTIPLE AREAS INFO SOUTHEAST SASKATCHEWAN ASSETS Varying OPERATED, NonOp WI & ORR CO CONTACT AGENT FOR UPDATE 2,130-Gross Acres. Avg Daily Production: 656 BOED PP 13381 CLARILAW/ ARCOLA AREA. T7-T8. Coal Bed Methane, Gas & Liquids >650 Frobisher/Alida Formations. PP Capable Of Generating: $12,000-$14,000/Mn BOED CANADA NON-CORE PROPERTY Avg 42% Working Interest Available FROBISHER PV10: $15,084,000. Non-Core Properties & Pipeline. CONTACT SELLER FOR MORE INFO ORIGINAL OFFERS DUE MAY 12, 2016 ALBERTA & SASKATCHEWAN PP 13475 CONTACT AGENT - POST BID STATUS Producing & Non-Producing Properties. PP CO 13213PP CA Required To View Data Room. SOUTHEAST SASKATCHEWAN ASSETS 100% WI IN PIPELINE ALSO FOR SALE 9,752-Gross Acres. ALBERTA & SASKATCHEWAN ASSETS OPERATED & NonOperated WI FOR SALE 152 CHAPLEAU LAKE AREA. T13-T14. ~95-Total Sections. Total Avg. Production: 152 BOED BOED Red River Formation. PP HARDY & RETLAW AREAS PDP Reserves: 320 MBOE Avg 50% Working Interest Available RED BAKKEN FORMATION PP Total Proved Reserves: 543 MBOE Currently Producing. RIVER Glauconitic, Ostracod, Lower Mannville, Total Proved Plus Reserves: 659 MBOE CONTACT SELLER FOR INFO Suburt, Belly River, Second White Specks CALL AGENT FOR STATUS UPDATE PP 13476 & Ellerslie Formation Upside PP 11201G 98.5% OPERATED WI AVAILABLE ~235 SOUTHEAST SASKATCHEWAN ASSETS Net Production: 236 BOED BOED CANADA NONOP PROPERTY SALE 893-Gross Acres. Currently Cash Flow Positive. Producing & Non-Producing Properties. BIENFAIT AREA. T2-T3. PP Total Proved Resveres: 482 MBOE BUYERS! NO ALBERTA, SASKATCHEWAN AND-- Midale Formation. PDP Resveres: 409 MBOE COMMISSIONS ---BRITISH COLUMBIA PP Avg 33% Working Interest Available MIDALE Total Proved PV10: $5,323,000 Elmworth, Smoky Heights, Peoria --- Currently Producing. AGENT WANTS OFFERS DEC 15, 2016 -Progress, Belloy, Pouce Coupe, Balsam- CONTACT SELLER FOR MORE INFO PP 13620DV --Bonanza And Other NonOp Areas. NONOP PP 13527 NON-OPERATED WI FOR SALE SALE MULTIPLE AREAS Current Est. Production: 101 BOED BRITISH COLUMBIA CONTACT AGENT FOR MORE INFO ALBERTA & SASKATCHEWAN ORRI PP 11728CO STODDART. T86. 27-Total Wells. ~9,805-Gross Acres. >47,000-Acres. >60-Sections. PENDRYL, METISKOW, MAJORVILLE, Baldonnel & Montney Formations. RAPDAN, CESSFORD & SOUNDING LAKE RR No Commissions Offset Crown Land Available. PP PNG Rights: To Base Of Edmonton, Belly Water Disposal Well & Facility. River, Mannville, Cardium & Shaunavon ORRI Get Listed! Seismic & Well Log Data Available. VARYING ROYALTY INTEREST & WI 100% OPERATED WI FOR SALE ~260 Net Operating Income: $41,595 For over 25 years, PLS has been the Current Production: 141 BOED BOED ORIGINAL OFFERS DUE MAY 12, 2016 central access point for buyers & sellers. OOIP Reserves: 7-19 MMBO/ Section CONTACT AGENT - POST BID STATUS For more information on listing, email CONTACT AGENT - POST BID STATUS RR 13243 [email protected] PP 11264SWD

Find more listings at www.plsx.com/listings No commission! List today, call 403-294-1906 Volume 25, No. 16 11 A&D A&D MULTIPLE AREAS Tamarack Valley boosts Viking profile Continued From Pg 1 CANADA RECEIVERSHIP PROCESS Spur has proved reserves of 15,000 boe/d (70% PDP) and 2P reserves of 26,500 2-Key Areas. boe/d, yielding a 2P R/P ratio of 11.6 years at current production rates. Tamarack ALBERTA & SASKACHEWAN PROVOST & LLYODMINSTER AREAS PP estimates acquisition metrics of $27.16 ppboe/g proved, $15.37 ppboe/g 2P, $65,200 Medium & Heavy Oil Positions ppboe/d and 6.3x projected 2017 cash flow. It expects the deal to be 16% accretive to 750-1,000 HZ Drilling Locations Identified. 2017 cash flow per share and to increase its 2017 cash flow netback 17% to $21.85 ACQUIRE, RESTRUCTURE OR RECAP ~12,700 while allowing it to hold net debt to 0.9x 2017 cash flow with no equity Q2 2016 Avg Production: 12,728 BOED BOED financing required to Net Operating Cash Flow: ~$4,916,667/Mn develop the combined assets. $15.37 ppboe/g 2P, $65,200 Proved Reserves: 32.5 MMBOE QPi ppboe/d, 6.3x cash flow. Well Costs: $620,000 - $920,000 Spur has identified 720 low-risk AGENT WANTS OFFERS DEC 15, 2016 drilling locations across its 300,000 net acres. It owns an average 96.5% WI in this PP 13130DV drilling inventory, which includes 483 Viking locations expected to pay out within a year and a half at current strip prices. That’s more than twice Tamarack Valley’s CANADA RECEIVERSHIP SALE Multiple Producing Properties.. current quick-payout inventory, most of which targets the Cardium in the Wilson VARIOUS AREAS ACROSS ---- Creek area of central Alberta. ALBERTA & SASKATCHEWAN PP Tamarack said Spur assembled its asset base over the last five years under principles Peace River Arch Position. similar to its own, including maintaining a low cost structure through ownership of Belly River, Edmonton Sand, Lloydminster- strategic infrastructure. Spur has 750 km --Boundry Lake & Various Formations. 1,329 Spur owns strategic infrastructure of oil and gas pipelines, multiple batteries OPERATED, NonOp & ROYALTY WI BOED contributing to low cost structure. PV10 Est Value: $18,800,000 and compressors, and an operated 34.2% Total Proved Plus Reserves: 3,261 MBOE WI in the Consort gas plant, which has no projected near-term capital requirements. Royalty Total Proves Plus: 88 MBOE “This transaction is consistent with Tamarack’s strategy to continue building CONTACT AGENT FOR UPDATE DEALS PP 11122RR FOR our portfolio of high-quality, oil-focused resource assets that offer a repeatable and SALE predictable growth profile while maintaining a healthy balance sheet,” said Tamarack CANADA SALE PACKAGE Valley president and CEO Brian Schmidt. “The Spur Assets meet all of the rigorous ~174,400-Net Acres. evaluation criteria that Tamarack utilizes for acquisitions and provide an ideal fit BRITISH COLUMBIA & ALBERTA with our core operations.” PROLIFIC MONTNEY OIL TREND PP Additional Wilrich & Duvernay Upside. To complete the acquisition, Tamarack Valley will issue 90.1 million common HIGH WORKING INTEREST FOR SALE shares, pay $57.3 million cash and assume Spur’s $25.7 million net debt. Spur CEO Ian Production Capable Of ~10,400 BOED Currie is due to join Tamarack Valley’s board upon closing, expected Jan. 11 pending With ~5,700 BOED Currently Restricted approval by both companies’ shareholders. Peters & Co. is advising Tamarack Valley 2016 Monthly Cash Flow: $2,233,333/Mn and National Bank Financial is advising Spur on the transaction. Total Proved Reserves: 102 MMBOE MONTNEY Net Proved PV10 Value: $759,000,000 Prov+Prob Reserves: 162 MMBOE Combined Tamarack Valley/Spur Quick-Payout Inventory (<1.5 yrs) 2P PV10 Value: $1,273,000,000 CONTACT AGENT FOR UPDATE CALL 1400 Other (Hatton, Mannville) PP 13268 PLS FOR Total Inventory INFO Spur Viking @ $64/bbl WTI, 1200 >25% ROR 1,171 CANADA SALE PACKAGE Redwater 1,222 Locations Penny 1,046 Multiple Producers. 3-Core Areas. 1000 ALBERTA, SASKATCHEWAN & Cardium 934 BRITISH COLUMBIA Estimate of booked PUD locations 300+ Drilling Locations Identified. PP 800 Varying OPERATED & NonOp WI ~1,650 681 Avg Net Production: 1,646 BOED BOED 600 558

Feb 2014-Jan 2015 Net Income: $428,458/Mn Payout 1.5 Years or Less 476 Total Proven Reserves: 6.6 MMBOE 400 CONTACT AGENT FOR UPDATE Quick Payback Drilling Inventory 351 PP 13283DV 198 239 200 213 59 105 Call today! 403-294-1906 0 66 30 40 50 60 70 80 90 Edmonton Par Oil Price (CDN $/bbl) The Regionals– WTI USD/bbl $26.50 $34.00 $41.50 $49.00 $56.50 $64.00 $71.50 Visit www.plsx.ca to learn more! Source: Tamarack Valley Nov. 7 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 12 November 28, 2016 A&D MULTIPLE AREAS RMP sells older Montney properties Continued From Pg 1 During 1H16 RMP achieved Montney D&C costs of $2.5 million at Ante Creek, CANADA STRATEGIC ALTERNATIVES its lowest to date. The company has drilled 32 horizontal wells and identified 45 72-Producing Wells. 267,441-Net Acres. ALBERTA & BRITISH COLOMBIA PP remaining locations in the area. This summer, it began a waterflood pilot after Primary Target: Montney models indicated significant additional oil recovery. Also, in Q1 RMP began stepout 426 Gross Unbooked Locations In Montney delineation drilling south of Varying OPERATED WI AVAILABLE ~2,890 its main producing area. 32 Montney horizontals completed at Current Production: ~2,890 BOED BOED Ante Creek; waterflood initiated in Q1. The sale emerged from a Total Proved Reserves: 21.3 MMBOE PV10: $45,487,000 CALL strategic alternatives process launched Aug. 4 to maximize the value of RMP’s large CONTACT AGENT FOR UPDATE PLS FOR Montney asset base. The company hired FirstEnergy Capital—now a subsidiary of PP 13556DV INFO GMP Capital named GMP FirstEnergy—to run the process, which considered options including asset sales, sale or merger of the company, farmouts, JVs and capital raises. WESTERN CANADA ASSET SALE Scotia Waterous also advised RMP. 2-Key Units. 3-Key Areas. CARDIUM, SASKATCHEWAN, ALBERTA Ante Creek asset sale emerged from The strategic review coincided with strategic review launched in August. & BRITISH COLOMBIA PP the closing of a $10 million bolt-on Bakken, Cardium & Swan Hills. acquisition at Gold Creek. The acquisition included 12,800 net acres (100% WI), a 486-Booked Drilling Locations. multi-well battery facility and compressor station as well as gathering lines (87.4% 1,036-Unbooked Drilling Locations. 26,000 Avg 79% OPERATED WI; ~BOED WI) and two legacy vertical Montney wells producing 40 boe/d. Total Production: 25,921 BOED The sale leaves RMP with net production of 22.9 MMcfe/d (35% oil and NGLs) Net Operating Income: $4,191,667/Month from Waskahigan and other areas. Future operations will focus on the company’s 65,920 2P Reserves: 142.4 MMBOE net acres (100% WI) at Waskahigan, where it has a low-risk, high-return development CONTACT AGENT FOR UPDATE BUYERS! NO COMMISSIONS inventory of 200 Montney locations, and 49,600 net acres (49,920 gross) at Gold Creek PP 13514 with potential for more than 100 Montney locations. In addition, RMP retains non-core WESTERN CANADA ASSETS west-central Alberta gas assets targeting the Montney at Kaybob, the Mannville at ~253,683-Net Acres. Gilby and the Wilrich at Pine Creek. N. ALBERTA & BRITISH COLUMBIA Debt-free balance sheet expedites With the completion of its Ante Targets: Beaverhill Lake & Granite Wash core Waskahigan & Gold Creek drilling. PP Creek exit, RMP plans to move forward 16 Development Locations 100% Working Interest Avaialble ~1,750 with a $45 million capital budget for 2017, including a modest drilling program of Current Production: ~1,750 BOED BOED four Montney horizontals at Waskahigan to offset declines and three at Gold Creek 2P Reserves: 6.7 MMBOE to de-risk acreage. The company will also install a gathering line and production NPV10: $49,500,000 equipment at Gold Creek, which will provide preliminary data to help it assess full- CONTACT AGENT - POST BID STATUS field development potential. PP 13147DV WESTERN CANADA SALE PACKAGE Rationale for RMP’s Ante Creek Divestment 3,000+ Locations W/ Well Economics. BRITISH COLUMBIA, ALBERTA AND- Ø Ante Creek has produced approximately 4.8 MMBBLS of oil and 24 BCF of gas since --SASKATCHWAN coming on-stream in 2011. The asset has generated an IRR of 50% and has returned PP a profit of $120MM equating to 7% CAGR. Long Life, Low Decline Oil & Natural Gas. ~60,000 Strategic Regional Infrastructure. BOED 2013 2014 2015 2016 Decline Total / Avg. OPERTED & NONOP WI FOR SALE Commodity Price Changes Combined Production: ~59,530 BOED DEALS WTI Price(US$/bbl) 97.99 93.01 48.80 39.6658% CONTACT AGENT - POST BID STATUS FOR SALE AECO Gas Price($/Mc f) 3.18 4.52 2.70 1.62 55% PP 12070 Ante Creek Returns WESTERN CANADA SALE SUB PKG 2 Field Net Operating Income 42,106.0 136,728.0 68,470.020,688.0 279,129.00 ($000s) 4-Producing Areas. SW & SE SASKATCHEWAN Total Capital Investment 90,815.3 89,868.2 55,689.710,368.0 273,127.20 ($000s) DODSLAND & PROVOST ALBERTA PP Bakken, Torquay, Frobisher, Midale, --- Total Free Cash Flow ($000s) 6,001.8 --Viking Oil and Mannville Positions. Sale Proceeds ($000s) 114,300.0 HIGH WORKING INTEREST FOR SALE WI FOR Asset Profit ($000s) 120,301.8 SE Saskatchwhan Prod: ~2,340 BOED SALE Total IRR (%) 49.8% SW Saskatchwan Prod: ~13,320 BOED CAGR (%) 7% Dodsland Production: ~2,020 BOED Ø The property is under the initial stages of waterflood and is no longer a growth asset. Provost Production: ~5,190 BOED CONTACT AGENT - POST BID STATUS Source: RMP Energy Nov. 9 Presentation via PLS docFinder www.plsx.com/finder PP 12072

Find more A&D news at www.plsx.ca To learn more about PLS, call 403-294-1906 Volume 25, No. 16 13 A&D A&D What’s on the Market ■■ Calgary-based Antrim Energy is Conoco sales to include Canadian gas Continued From Pg 1 selling its Irish business for $337,000 Conoco’s presentation highlighted the Montney and Falher/Wilrich as top-tier cash (US$250,000) to Azeire Petroleum, unconventional plays it is actively appraising in Western Canada. That leaves a number part of the Seacrest-backed of potential divestment targets in the business unit, which the company keeps separate Azimuth Group. Antrim from its growing oil sands operations. Conoco is one of Canada’s owns 1,562 sq km of modern 3D seismic top gas producers, with 2015 net production of 942 MMcfe/d (76% data and analysis in the northern Porcupine gas), but the country will take the brunt of a US$200 million capex reduction next year. Basin offshore Ireland, including partial The Montney and Falher/Wilrich represent just a small part of Conoco’s Deep Basin coverage of Azeire’s existing license leasehold, which covered 1.4 million net acres and had net production of 288 MMcfe/d portfolio. The sale is part of Antrim’s in 2015. Conoco’s Elmworth plant is the Deep Basin’s primary processing facility, and plan to wind down and dissolve the the company owns significant stakes in five other major processing plants in the region. company, which was approved by South of the Deep Basin in the Kaybob-Edson area, Conoco reported 800,000 net shareholders Aug. 30. acres and 270 MMcfe/d. Its Clearwater ■■ Elmworth Montney-focused assets further south included 900,000 net Swapped central Alberta gas wells for Blueberry Montney in Bonavista deal. Blackbird Energy closed its $3.0 million acres and 240 MMcfe/d. Outside these acquisition of an indirect 10% stake areas, Conoco reported a 700,000-net-acre Western Canadian exploration leasehold in fracking specialist Stage with Montney, Muskwa, Duvernay and Canol potential in Alberta, northeast British Completions. The deal was Columbia and the Northwest Territories. announced in July pending Reducing North American gas to 10% High-grading has already begun; in of total implies 720-740 MMcf/d sold. certain conditions including the successful a regulatory filing for Q3, Conoco came deployment of Stage’s proprietary forward as the counterparty in an asset swap announced by Bonavista Energy in early Bowhead II fracturing system in two wells, September. The deal closed Oct. 13, with Conoco shedding 143,000 developed net which has now been completed. As part acres in central Alberta for 40,000 mostly undeveloped net acres targeting the Montney of the deal, Blackbird can use Stage’s in the Blueberry area of northeast British Columbia—roughly doubling its leasehold systems for cost plus an administrative fee. there. According to Bonavista the Alberta properties targeted the Wilrich, Notikewin, ■■ Drakkar Energy and Blacksteel Glauconite, Bluesky, Ellerslie and Cardium and Energy are jointly acquiring light oil December 31, 2014 • Volume 25, No. 18 were producing 43.2 MMcfe/d (69% gas), while the Transactions assets with shut-in production in the Serving the marketplace with news, analysis and business opportunities Blueberry assets produced 3.0 MMcfe/d (79% gas). Repsol strikes, snapping up Talisman for $13 billion Whiting seals buyout of Capitalizing on falling oil prices to gain a substantial upstream foothold in North Bakken peer Kodiak America, Repsol has struck a deal to acquire Talisman Energy for $13 billion. The There is one less publicly listed purchase price consists of $8.00/share (C$9.33/share) in cash plus the Calgary company’s Bakken producer following the closing Girouxville area of northwest Alberta $4.7 billion debt. Unanimously approved by both companies’ boards, the deal will of Whiting Petroleum’s acquisition boost Repsol’s pro forma 2014 production by 76% to over 4.08 Bcfed immediately and of rival Kodiak Oil & Gas. During the analyst day, EVP Alan Hirshberg said significantly expand its exploration portfolio. The combined company will have a presence The deal created a combined in moreNext than 50 countries withA&D Transactioncompany with a market cap Bids $8.00/share after Talisman 27,000 employees. tagged a low of $3.46/share. north of $6.0 billion based on the stock through a receivership sale. The assets Cash-rich Repsol had price the day before closing. Whiting been gearing up for a strategic upstream acquisition, building up a $12 billion-plus war now has the highest Bakken/Three Forks Conoco reduced its exposure to North American gas chest this spring through the divestment of its equity in Argentine explorer YPF, a $5.0 billion settlement with Argentina over the 2012 seizure of a 51% stake in YPF, and the Creates largest producer in Bakken with Q3 output of 125,000 boepd. sale to Shell of its Latin America-focused LNG business. At the time, Repsol said it consist of 11,520 acres with six horizontal Conoco'swas shopping for companies or assets San within the OECD Juan with development potential, Basin production at a proon forma 125,000 boepd from 28% of 2012 production to 18% and said the scale, extra growth capacity and above 8% return on capital. Continues On Pg 12 for Q3, squeaking by long-time leader Oxy in talks to buy private Permian driller Three Rivers Continental Resource's 121,600 boepd. Cash-rich after receiving $6.0 billion in the spin-off of its California business, The deal also increased Whiting’s the chopping block. Bakken/Three Forks inventory by Occidental Petroleum is looking to supercharge its core Permian growth engine wells, of which one was completed but by pursuing privately held Three Rivers Operating Co. II LLC. Industry sources 158% to 3,460 net drilling locations asset sales will further reduce that number to 10%. contacted by PLS have estimated values in the $1.20-1.35 billion for the deal. A across 855,000 net acres. YE14 proved Bloomberg story citing an unnamed source said the companies are discussing a price reserves for the combined company total below $20,000/acre—implying a value below $1.75 billion based on Three Rivers’ 780 MMboe (83% crude, 7% NGLs), 82,000 net acres at YE13 plus 5,400 net up 29% compared to Whiting and PLS sources value deal for Riverstone- has not been equipped and five were acres picked up this summer. Kodiak’s YE13 sum. Cont'd On Pg 17 backed company at $1.20-1.35 billion. Austin, Texas-based Three FEATURED DEALS Rivers II launched in August 2012 with the acquisition of 15,000 net acres and 1,900 boepd in the Midland Basin from Meritage Energy. Backed by Riverstone EAST TEXAS SALE PACKAGE Holdings, the company at YE13 touted 25,000 net acres in the Midland Basin, 22,000 12-Active Wells. 3-SWD. ~3,700 Acres. previously on production but were shut in in the southern Delaware Basin and 5,000 in the Central Basin Platform representing a BUNA WEST & SILSBEE FIELDS drilling inventory exceeding 1,800 locations (average 90% WI) targeting the Wolfcamp, HARDIN & JASPER COUNTIES PP ConocoPhillips Highlights Large Western CanadaCline and Wolfberry combo play. ResourceContinues On Pg 11 Wilcox SandsBase 10,000 Ft.-15,000 Ft. Additional Drilling Locations Identified 58-100% Operated WI; ~73 Lease NRI 191 Southwestern buys more Marcellus/Utica for $394 million Gross Production: 77 BOPD & 888 MCFD BOED when the seller was placed in receivership Also closes $5.4 billion initial acquisition from Chesapeake Net Production: 44 BOPD & 530 MCFD June 2014 Cash Flow: ~$156,600/Mn Statoil is selling a 5.8% stake in its Marcellus and Utica JV assets in northern PDP PV10: $4,826,000 1 BBOE Today, But Watch This ResoWestu Virginiarc ande southern G Pennsylvaniaro tow new partner Southwestern Energy for BIDS DUE BY JANUARY 15, 2015 Western Canada: $394 million and retaining ~23% WI. Having also closed its $5.4 billion purchase of PP 2351DV Chesapeake’s 67.5% WI, Southwestern’s newly acquired interests will rise to 73.3% in January. Blacksteel will take 30% WI WI, representing 443,000 net acres. KERN CO., CA PROPERTY Gets additional 30,000 net acres & The Statoil deal adds ~18,000-Contiguous Net Acres. 29 MMcfed from Statoil interest. BEER NOSE FIELD incremental October Bloemer Tight Sandstone Objective. PP net production of 29 MMcfed and 30,000 net acres targeting the Marcellus, Utica Estimated Depth: 10,000-15,000 Ft. and Upper Devonian for Southwestern. Statoil had a preferential right to buy Also Monterey, Belridge, Gibson, Oceanic, for $600,000 and provide a $400,000 loan Chesapeake’s stake when that company’s deal with Southwestern was announced Santos, Tumey & Kreyenhagen Potential. 100% OPERATED WI; ~77% NRI in October, but chose not to exercise it. Including these properties and others in the TIGHT Gross Production: 36 BOPD & 57 MCFD SAND play, Statoil retains a strong Marcellus position covering ~570,000 net acres with Net Production:27 BOPD & 44 MCFD pro forma Q3 net production of 759 MMcfed. 6-Mn Avg. Net Cash Flow: ~$28,800/Mn • 1 BBOE uncon Theve Statoiln dealtion is expecteda lto closere insou 1Q15 andrce will be financed <$50 from P/P 5217DVBBL to Drakkar, which can be converted to up Southwestern’s revolver. Continues On Pg 15 cost of supply All Standard Disclaimers & Seller Rights Apply. to an additional 20% stake. 3.1 MILLION Blueberry NET ACRES ■■ Petrocapita Income Trust acquired Montney • ~100 MBOED production expected in 2017 Albright Smartworks Oilfield Maintenance by Montney • Reduced production and operating expense per BOE by ~30% since 2014 issuing a $176,500 convertible seven- Calgary Falher/ Wilrich year debenture with a 6% interest rate. Notikewin/ Midstream infrastructure with >1 BCFD net Spirit River • Smartworks operates oilfield service 82 M capacity in proximity to key plays ACRES trucks to maintain compression, pumping Edmonton • Expanding position in liquids-rich plays through and hydraulic equipment, drilling and non-cash land swaps service rigs, and other equipment. It Appraising Montney potential in 2016 and 2017 will become a subsidiary of the trust’s • midstream and water handling affiliate Calgary Unconventional Acreage POTENTIAL TO DOUBLE Petrocapita Processing LP. Petrocapita Conventional Acreage RESOURCE <$50/BBL CoS THROUGH ONGOING APPRAISAL Dec. 31, 2015 Income Trust owns heavy oil properties Acquired 2016 and infrastructure in the Lloydminster area on the Alberta/Saskatchewan border. Source: ConocoPhillips Nov. 10 Presentation via PLS docFinder www.plsx.com/finder For general inquiries, email [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 14 November 28, 2016 Oilfield Services GrowMax exits Argentine oil Disposal firm Ceiba mulls options to pursue future growth & gas to focus on phosphate Publicly traded Calgary water and waste disposal firm Ceiba Energy Services has In line with its new strategy focused initiated a strategic alternatives process led by Peters & Co. The company has identified on Peruvian phosphate and potash mining, a number of organic growth and acquisition opportunities that will require alternative Calgary-based GrowMax Resources sources of capital to pursue. It is considering financings, mergers, JVs and other options (formerly Americas Petrogas) agreed to support this planned expansion. to sell its remaining oil and gas assets in Serves operators in the Deep Basin, Ceiba owns and operates nine Argentina to a private US company called Montney, Viking, CBM & oil sands. Alberta facilities with a 10th slated to be Energy Operations Argentina for $6.7 commissioned by year’s end, providing more than 36,000 bbl/d of injection capacity. Four million cash (US$5.0 million). The price of its facilities serve Montney and Deep Basin producers. Others serve Viking, coalbed may be reduced to $2.7 million (US$2.0 methane and oil sands operators. The company’s treatment, disposal and blending/ million) if an exploitation concession is terminaling business are supported by growing waste-stream volumes due to increased not issued within six months of closing horizontal drilling, longer laterals and higher completion intensity in oil and gas plays for the Vaca Mahuida block, where across the province. Heightened regulatory and environmental scrutiny surrounding GrowMax submitted a revised plan of oilfield waste treatment and disposal contribute to a development to the Rio Negro provincial concentrated market with high barriers to entry. January 2, 2015 • Volume 04, No. 16 government in September. OilfieldServiceS Ceiba recorded 1H16 revenue of $4.04 million Serving the marketplace with news, analysis and business opportunities Assessing the service sector damage Technip spies other deals Prognosticators parse impact of crude plunge on services after withdrawing CGG offer Sold most assets including producing With crude now down about 50% from its summer highs and E&Ps slashing capex Technip has formally withdrawn left and right, some sense of the impact on the service sector is starting to come to light. efforts to take out fellow French seismic and adjusted EBITDA of $906,000. It has a current Fortunately, with ongoing projects unlikely to have their plugs pulled, there is still leader CGG following the rebuffing of probably a month or two of “full steam ahead, ” but some time next quarter activity an unsolicited $1.83 billion cash bid Medanito Sur for $78MM in 2015. decreases should beginNext to be more heavily OilfieldServices felt, and it is worthwhile to examine who for the company by is best and worst positioned, how large the damage is likely to be, and how long a Technip. The offshore trough could last. E&C leader said that PacWest sees frac demand & pricing As for fracking, market cap of ~$22 million, net debt of $6.5 million down 8% next year. following CGG’s refusal, Technip PacWest Consulting recently did a deep proposed a number of alternate options dive conference call on its expectations, and the firm anticipates an 8% demand (as to a tender offer, but said these efforts Getmeasured by hp)more and price cut next yearservice in US land. The drop represents sector a 12% were similarly unfruitful.deals, In a separate decline in the number of horizontal wells fracked, offset somewhat by the continued CGG deal dead in water; company GrowMax has an operated 50% WI and YE15 tax pools totaling $34.7 million. For more shift toward more sand, stage-count and HP-intensive fracs. That said, frac stages are cited opportunism by Technip. still expected to decrease 6%. Continues On Pg 8 GE guides down for oilpatch efforts in pivotal 2015 statement, CGG said that none of the contracts & trends. proposed options created value for the General Electric is positioning to weather the downcycle with stoicism while company, and The Financial Times picking up new business, and businesses, along the way. GE is calling 2015 a “pivot” in the 232,800-acre Vaca Mahuida block, reported that board members viewed the information, view PLS Listing No. CO 13151SV. year, as it digests the massive ~$15 billion acquisition of Alstom’s power assets offer as opportunistic in light of lower oil (closure in Q2), raises proceeds from non-industrial, non-core asset sales and cuts prices. Regardless, CGG asserted it was costs to mitigate the impact of cheaper oil. GE anticipates industrial profits in position to weather current difficult up 10% or more next year, but Oil & Gas segment sales & profits market conditions. Continues On Pg 12 as for oil and gas specifically, projected down 0-5% next year. which contains three conventional gas while the division saw $4.9 billion in orders in Q3, it is already seeing headwinds. GE cut its growth outlook from high FEATURED DEALS single- to low double-digit growth down to mid-single digit expectations. CEO Jeff International TUSCALOOSA DRILLING PROJECT Immelt called crude pricing issues a short term industry challenge. The company now ~20,000-Contiguous Gross Acres. hopes to keep oil and gas profits and revenues fairly flat through cost controls, although MAJORITY IN PIKE CO., MISSISSIPPI finds. It also has interests in three other acknowledging that they very well may slide as much as 5%, particularly under capex TUSCALOOSA MARINE SHALE freeze scenarios. Its exposure to the space is more geared toward production and less Also Tangipahoa & St. Helena Ph., LA DV than peers on more volatile onshore unconventionals. Continues On Pg 6 169-Drilling Locations. 80-Acre Spacing. SEEKING JV PARTNERSHIP; 75% NRI TMS 2-D Seismic Available PLAY Canadian service firms give signs of things to come Area EURs: 600-800 MBO/Well blocks in Argentina’s Neuquen Basin. In an early indicator of where service capex budgets are headed in the Lower 48 as Leases Expiring in 2018-2019 Samarium farms into Colombian acreage with GulfsandsDV 3395L they are announced in coming months, Canadian service firms have been announcing drastically reduced 2015 spending plans and newbuild construction halts in anticipation ALASKA ROYALTY ACREAGE of lower producer cash flows. Many of these firms also have US operations, for 15,930-Gross/Net Acres. even better visibility on things to come. Number one Canadian driller Precision UPPER COOK INLET BASIN It operates the 200,900-acre Totoral Drilling cut next year’s budget KITCHEN LIGHTS UNIT (N. BLOCK) Vancouver-based investment group Samarium TennessinePrecision cut its 2015signed budget 44% to a $6.3RR Miocene Tyonek & Oligocene Hemlock 44% to C$493 million from 2014’s C$885 C$493 million from 2014’s C$885 million. million and idled its new rig construction Deep Sands: 11,000-16,500 Ft. Multi Pay Intervals Present program “until we see an improved commodity price environment and rising customer ~4.45% ORRI In Leases. newbuild demand,” said CEO Kevin Neveu. The 2014 plan is also being cut slightly Offset Well Tested Over 5,000 BOPD ORRI block (90% WI), where it targets the million (US$4.8 million) deal to farm into London-listedfrom a prior C$908 Gulfsandsmillion. Precision will complete 16 currently under construction Petroleum’s rigs, -- From Tyonek Deep Channel Sands. 15 headed for the US and one for Kuwait, but is planning no further deliveries next year. Estimated Project Reserves: 89 MMBO 3rd Party Reserve Report Available. Precision is trimming excess fat for leaner times as well, announcing it has sold Continued Development by Furie. its US coiled tubing assets for C$44 million cash to an undisclosed buyer. As of YE13, CALL SELLER FOR DETAILS Precision’s C/T fleet consisted of eight units in the Marcellus and Bakken shales, and RR 5100 Vaca Muerta Shale. It also has 25% WI exploration acreage in Colombia’s onshore Putumayo Basin.Peters & Co. believes the price Itstag represented replacementenergy cost. Continues On Pg 10 and mining All Standard Disclaimers & Seller Rights Apply. subsidiary Samarium Energy & Resources will earn 70% WI in the 115,000-acre in the 33,300-acre, Tecpetrol-operated PUT-14 block by covering Gulfsands’ pro forma 30% share of up to $21.1 million Loma Ranqueles block and 19.5% in the (US$16.1 million) in required exploration work up. 249,900-acre, YPF-operated Huacalera Gulfsands also granted Samarium an option to acquire its remaining 30% WI. block, which have both conventional and Gulfsands owns one other Colombian contract area, the 127,000-acre LLA-50 block unconventional potential. in the Llanos Basin. Its other assets are in Morocco, Tunisia and Syria. GrowMax announced plans in August Subsequent to the Putumayo Basin farm-in deal, Samarium announced it applied to sell its Argentina asset, concurrent with to the Colombian government for two oil blocks in the prospective Catatumbo Basin. the change in its name and business focus. It plans to undertake a Catatumbo development program on its own. The previous summer it sold a large portion of its Argentine assets including its sole Valeura buys out TransAtlantic in JV onshore Turkey producing field, Medanito Sur, to Tecpetrol TransAtlantic Petroleum is exiting a five-year-old JV in northwest Turkey’s Thrace for $77.6 million (US$63 million). Basin, selling its operated 41.5% WI in 293,670 gross acres to partner Valeura Energy for $29 million (US$22 million). The deal doubles Calgary-based Valeura’s stake to 81.5%; Pinnacle Turkey Inc. retains 18.5%. Concurrently, Valeura will sell 50% WI in deep rights on the western part of the acreage to Statoil for $20 million (US$15 million). plus TransAtlantic is producing 2.27 MMcfe/d (99% gas) from shallow wells on the JV licenses. Valeura says the acquisition will boost its production 59% and 2P reserves 85%. The transfer of 87,023 net acres of deep rights to Statoil expands joint exploration Save time efforts with the Norwegian producer, which signed sourcing a farm-in deal in August for half the deep rights on January 14, 2015 • Volume 07, No. 01 InternatIonalDeals Serving the marketplace with news, analysis and business opportunities critical data Valeura’s adjacent Banarli licenses. Valeura expects to BP in talks with Rosneft to buy 20% in Siberian field International M&A falls 21% Russian companies blocked by sanctions on other oil & gas deals to $60 billion in 2014 Rosneft is reportedly in talks to sell BP a direct 20% WI in subsidiary Taas- Global upstream deal activity saw an Yuriakh Neftegazodobycha, the license holder of its Srednebotuobinsk oil and gas impressive 30% rise in terms of total deal field in Eastern Siberia. The deal would result in an effective 35.8% stake in the field for value to US$185.0 billion during 2014. close the acquisition from TransAtlantic, the Banarli BP, which is the Russian company’s largest private shareholder with 19.75% However, this upswing was due entirely InternationalDealsequity. According to unnamed sources cited by Russian daily Kommersant, November to skyrocketing acquisition 9 Over 1.5 million slides at the negotiations could result in activity in the US (up 79% to Current ~20,000 bopd projected up a US$700-800 million deal with closing $98.3 billion) and Canada (up 400% to ~100,000 bopd by 2017. expected in early 2015. 132% to $26.6 billion). Looking just at farmout and a $16 million (US$12 million) portion Rosneft acquired an initial 35.3% WI in Taas-Yuriakh for $444 million during the the international picture, activity was development phase in March 2012 and increased its stake to 100% WI in October 2013, down 21% in terms of deal value to $60.0 your fingertips in seconds. shortly after reaching first oil. At that time the company projected 2014 production billion and 30% in terms of deal count Digof 1.0 million deeper tonnes (~20,000 bopd), increasing into to 5.0 mtpa (~100,000 this bopd) by &(including other transactions without disclosed 2017. It also assigned the field C1+C2 reserves of 134 million tonnes of liquids (~1.0 values) to 399. of the Thrace Basin deep rights sale by year’s end. Bbbl) plus 5.47 Tcf. Continues On Pg 8 Out of the top 30 international deals, Chinese group offers $100 million for Kazakh oil project not one buyer was a US producer. globalContinuing 2014’s trend deals. of non-traditional Chinese oil and gas buyers entering the Major increases in deal value were E&P space into the new year, a consortium led by publicly listed Xinjiang Zhundong www.plsx.com/docFinder seen in Asia (69% to $8.0 billion), the Petroleum Technology Co. plans to acquire the Galaz contract area in central Kazakhstan South Pacific (442% to $11.3 billion), Cormark Securities advised Valeura on the deal. for US$100 million in cash and debt. The oil development is operated by South Korea’s and the North Sea/Europe (118% to LG International (40% WI) partnered with London-listed Roxi Petroleum (34.22%) $12.7 billion). However, these increases and Baverstock (23.78%), a company controlled by Roxi board member and top were overwhelmed by a combined $35.0 shareholder Kuat Oraziman. Consortium led by publicly listed billion decrease in activity in Africa The 44,200-acre block in oilfield service firm Xinjiang Zhundong. (54% to $9.6 billion) and the FSU (72% Kyzylorda province contains to $9.0 billion). Continues On Pg 15 the Northwest Konys project plus exploration upside on the east side of the Karatau fault www.plsx.ca system. Seventeen wells have been drilled at Galaz since 2008 and Northwest Konys FEATURED DEALS Find more A&D news at pilot production began in January 2012. Five wells are on extended test producing an To learn more about PLS, call 403-294-1906 aggregate 1,000 bopd and four more are being prepped to begin production testing. THAILAND CONCESSION FOR SALE Under the non-binding heads of terms, the Chinese consortium will acquire JV firm 1-Onshore Concession. Galaz & Co. for $50.4 million cash plus $49.6 million in debt. Continues On Pg 11 PHETCHABUN BASIN 2-Onshore Exploration Assets. PP 8-Production Licenses. Seplat’s Afren takeover bid threatened by Kurdish writedown Contains 12 Individual Oil Fields. Just days after Nigerian oil firm Seplat Petroleum Development confirmed 20% WORKING INTEREST FOR SALE 4,000 making a preliminary approach to acquire Afren, the target company’s takeover Gross Production: ~4,000 BOPD BOPD prospects took a hit when it released a drastically reduced resource estimate for its 2P Net Reserves: 30 MMBOE Barda Rash oil development (60% WI) in the Kurdistan region of Iraq. CONTACT AGENT FOR MORE INFO PP 6089 Based on reprocessed 3D seismic and its drilling campaign, the report eliminates 190 MMbbl of previously estimated proved plus probable oil SURINAME OFFSHORE BID ROUND reserves and reduces the 2C resource 3-Blocks. ~6,420,000-Acres.(26,000 km2) estimate by 80% to 250 MMbbl New Barda Rash estimate eliminates SURINAME-GUYANA BASIN 2P reserves, cuts 2C by 80% to 250 MMbbl. from 1,243 MMbbl. Huge Prospective Blocks B Water Depths:~50-7,380 Ft. The previous estimate reported in 2012 had been the basis from the London- --- (15-2,250m) based company’s approved development plan. It is now considering strategic WORK PROGRAM BIDDING ROUND BID options for the project in light of the update. Afren’s stock fell 30% on the London Proven Petroleum System ROUND Stock Exchange to close at 27.31 pence on January 12, the day the update was Production: 16,000 BOPD released—eliminating the bump experienced when rumors of the takeover bid broke Bid Round is Closing January 30, 2015 CONTACT PETROLEUM MANAGER in mid-December. The news comes one week ahead of the January 19 deadline for BR 5103PP Seplat to make a formal offer for Afren. Continues On Pg 6 All Standard Disclaimers & Seller Rights Apply. Volume 25, No. 16 15 A&D People & Companies What the Analysts are Saying About A&D ■■ Arc Resources appointed David Athabasca Oil Corp. (ATH:TSX; C$1.21–Nov. 3; Equal Weight; PT: C$1.50) Collyer to its board. Collyer has more Improves financial picture with increased Bitumen royalty sale. As with the than 40 years of prior agreement, a royalty is payable above US$75/bbl for Hangingstone (US$78/ experience in the oil bbl for other thermal) but now commences at 2% and grows linearly to 12% at WTI and gas industry and prices of US$157-$159/bbl. This compares to the prior agreement, which was president of CAPP from 2008-2014. ranged from 1% to 6% (at the same pricing thresholds). Our DCF model sees ■■ Bellatrix Exploration President royalties initially payable in 2019, and reduces the value of Hangingstone and CEO Raymond G. Smith by $0.15/share, tempering the benefit of the sold royalty. Financial picture improves has taken a temporary leave of further: Over the past 18 months, we had been concerned about Athabasca’s need to absence to focus on his health. recapitalize its balance sheet in advance of looming 2017 debt maturities. The Murphy EVP and COO Brent Eshleman has been JV and the initial royalty sale largely bridged the gap, although we were mindful of appointed interim President and CEO. the company’s negative cash flow outlook. With this new capital injection, Athabasca ■■ Vancouver-based Romania and New expects to have ~$700MM of available cash; more than adequate to handle the remaining Zealand explorer East West Petroleum $550MM maturity, with no refinancing risk. —Barclays appointed Ross McElroy to its board. HollyFrontier (HFC:NYSE; US$27.46–Nov. 18); Suncor (SU:NYSE, US$31.01) McElroy is a professional geologist with nearly 30 years of experience. The Recent developments. On October 31, HFC agreed to acquire Suncor Energy’s company also announced the resignation Petro-Canada Lubricants for ~$845MM, including working capital valued at of Marc Bustin from the board. ~$257MM, to be funded with debt and cash. The acquisition makes HFC the fourth ■■ Wapiti Montney-focused NuVista largest lubricants producer in North America, with 28 MMbbl/d capacity Energy announced Peter or ~10% of North American production. The business generated Comber’s retirement from ~$150MM EBITDA over the 12 months ended June 2016, compared with $100MM its board after 12 years from the Tulsa lube facility. Management believes the acquisition will diversify HFC of service. He will be replaced as chair earnings with the addition of a differentiated high margin business with more stable of NuVista’s audit committee by retired cash flows, while the acquired assets combined with the existing Tulsa Lubricants AltaGas CFO Debbie Stein, who joined business creates a strong platform for growth. —Oppenheimer the board in August. Royal Dutch Shell (RDSA:LN; £21.70–Oct. 20; Buy) ■■ Pacific Exploration and Shell Canadian shale asset sale: Positive as highlights value of unconventional Production completed its portfolio. Shell has sold ~206k net acres of a mix of non-core developed/undeveloped restructuring and Blackhill assets and infrastructure in Western Canada to Tourmaline Oil (TOU.CN –NR) for Partners Managing Director ~$1.04B with an associated production of ~25,000 boe/d (85% dry gas). RDS will Jim Latimer will serve as the receive $758MM in cash and $279MM in Tourmaline shares; deal expected to close company's interim CEO. in Q4’16. We value Shell’s remaining Western Canada assets at ~$2B at ■■ Penn West Petroleum hired David $70/bbl WTI and 3.25/Mcf HH and ~$28B for its NAM unconventional French as president and CEO to replace portfolio (Permian up to $15B). Assets are located in the Gundy area of NE Dave Roberts, who has led the company British Columbia (61,000 net acres) and in the Deep Basin (145,000 net acres). Shell since June 2013. French was president retains 218,000 net acres in the Montney and 430,000 in the Duvernay. Shell’s current and CEO of Bankers Petroleum. French Americas shale production stands at 250,000 boe/d. —Tudor, Pickering, Holt & Co. will also join Penn West’s board. Penn West Petroleum (PWT:TSX; C$2.04–Nov. 2; Equal Weight; PT: C$2.50) ■■ Petrus Resources Ltd. President and CEO Kevin Adair has resigned. VP Non-core asset sale update. Penn West reiterated targeted proceeds of $100- Engineering and COO Neil Korchinski 200MM from total non-core divestitures of ~20,000 boe/d ... With half of the targeted has been promoted to fill the vacancy. proceeds already achieved, the company would need to sell the remaining ~14,000 ■■ Seven Generations Energy boe/d for just $75MM in order to achieve the mid-point of announced co-founder, lead geologist targeted proceeds, representing a valuation of just ~$5,400 per and SVP Steve Haysom's retirement boe/d. This implied valuation highlights the higher cost nature of these assets; based on ■■ Suncor Energy named former our conversations with management, the remaining assets have a neutral to modestly Enterprise Product Partners CEO negative impact on net operating income at current strip pricing. This low hurdle should Michael Creel to its ease the financial pressure on the remaining volumes slated for sale, however we board effective Jan. 1. believe this still remains a critical factor for the company going forward. —Barclays Creel joined Enterprise in 1999 took the top spot at the company Information. Transactions. Advisory. Call 403-294-1906 in 2010. He retired at the end of last year. For general inquiries, email [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news Bringing transparency and clarity to an opaque marketplace.

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