November 18, 2015 • Volume 24, No. 16 CanadianAcquirer Serving the marketplace with news, analysis and business opportunities

PrairieSky gets CNRL royalty asset package for $1.8 billion Private E&P firm Nordegg After starting life with the royalty assets of Encana, PrairieSky Royalty is getting puts itself up for sale another of the premier royalty asset packages available in Western Canada by acquiring Private Canadian E&P Nordegg substantially all of the royalty interests of CNRL for $1.8 billion. PrairieSky will pay $680 Resources is launching a strategic million in cash and issue 44.4 million common shares at a deemed price of $25.20 per alternatives review and has retained share to unify ownership of a large portion of the available fee title mineral interest land. Peters & Co. to run The royalty asset package covers 5.4 million acres with 2.2 million the process. The acres of fee title land and company is focused Deal unifies ownership of two premier 3.2 million acres of GORRs. There are more on liquids-rich Glauconite development royalty asset packages. than 10,000 producing wells contributing to at Northville in west-central Alberta. the total output of 6,700 boe/d. The land is geographically diverse, stretching from the Outside of Northville, it has operations Doig/Montney fairway in northeast British Columbia across Alberta and down to southeast at the Dawson and Caribou areas of Saskatchewan and southwest Manitoba. The royalty interest averages 5%. The transaction boosts PrairieSky’s fee title land by 39% and its GORR properties Assets produce a total of 2,000 boe/d by 85%. Pro forma, its combined position will consist of 7.7 million acres of fee title from three operating areas. and 7.0 million acres of GORR acreage. Continues On Pg 4 northern Alberta. August production Pine Cliff buys central Alberta assets for $185 million averaged 2,000 boe/d (40% oil and Continuing its run as a buyer of gas-weighted Canadian assets, Pine Cliff Energy NGLs) with an estimated annual decline has picked up properties in central Alberta for $185 million. PLS believes the seller rate of 19%. Reserves total 10.1 MMboe to be ConocoPhillips, which was marketing assets in the area with the same profile proved and 13.8 MMboe for 2P reserves. as those acquired by Pine Cliff. Pine Cliff broke the acquired assets out into There is significant unbooked potential two packages: Ghost Pine and Viking. Those were two of the seven asset in the Rock Creek, Ellerslie, Slave Point packages Conoco placed on and other formations across its land the market in June with assistance from Gets total gas-weighted production base, which amounts to 57,280 net acres of 70.4 MMcfe/d. Continues On Pg 7 Scotia Waterous. The reported acreage (65,280 gross). and production acquired by Pine Cliff also matches what was being marketed by Conoco. Along with CNRL, Pine Cliff was rumored to be one of the acquirers of FEATURED DEALS the Conoco assets when sources told Bloomberg in September that deals were being worked out. These were two of the largest packages available. WEST ALBERTA PROPERTIES 1-Gas Unit & Non-Unit Properties. Total production from the two asset packages is 70.4 MMcfe/d (89% gas, 7% oil & DUNVEGAN AREA. 4% NGLs). Combined proved reserves amount to 285 Bcfe with 2P reserves of 471.6 Bcfe. Upside in Infill Development Wells, PP The assets have a long-life profile and a low decline rate of 12%. Continues On Pg 6 -- and Optimization of Existing Wells. ~13% NonOperated WI For Sale in Unit. Net Production: 1,363 BOED 1,363 Suncor closes $310 million oil sands deal with Total Long Producing Reserve Life. BOED While its effort to acquire Canadian Oil Sands has yet to succeed, Suncor Energy 2014 Net Income: ~C$692,000/Month has still managed to boost its oil sands exposure by closing an acquisition of 10% WI Gas Plant & Infrastructure Included. in the Fort Hills oil sands project from Total. Pro forma to the deal, Suncor has a ORIGINAL OFFERS DUE JUNE 17, 2015 CONTACT AGENT FOR MORE INFO 50.8% operated interest in the project, Total holds a 29.2% stake and the third partner, PP 13609DV Teck Resources, owns the remaining 20% WI. Teck elected not to exercise its right to proportionally increase NORTHEAST ALBERTA LEASES ownership of Fort Hills. Boosts ownership of Fort Hills oil sands ~132,000-Net Acres of Oil Sands Leases. project to 50.8%. The Fort Hills oil ATHABASCA OIL SANDS Silvertip, Birchwood, West Ells, Dover -- DV sands project is in the Athabasca region of Alberta 90 km north of Fort McMurray. Ells North, Ells S & C, Asphalt Creek With engineering 90% completed and construction more than 40% finished, Fort Hills 69 Grizzly Core Hole & >47 Legacy Wells. is on track for first oil in 4Q17. The project is expected to have a peak gross production 54.5 km of 2D Seismic Data Available ATHA- rate of 180,000 bbl/d of bitumen, and the mine has best-estimate contingent resources 40%-100% OPERATED WI AVAILABLE BASCA of 3.3 Bbbl of bitumen, sufficient for 50 years of activity. Potential For 165,000 BOPD Est Recoverable Reserves: 1,345 MMBO The development scheme calls for an open-pit truck and shovel mine with two Net Bitumen in Place: 10.6 BBbls main pits. The mine will deliver oil sands feed to two ore-crushing plants, where oil DV 11554L sand material will be crushed and processed. Continues On Pg 11 All Standard Disclaimers & Seller Rights Apply. CanadianAcquirer 2 November 18, 2015 A&D Trilogy sells Dunvegan Quattro buys stacked pay assets in northeast BC rights at Kaybob area Adding on to its northeast British Columbia operating area, Quattro Exploration Trilogy Energy has completed the sale & Production is purchasing assets in northeast British Columbia from a private seller of its Dunvegan assets in the Kaybob area for $1.9 million. Quattro is getting long-life current production of 612 Mcfe/d and of Alberta for $45 million. Located within 2P reserves of 2.7 Bcfe. Leasehold totals 13,064 acres (10,552 acres undeveloped). west-central Alberta’s Deep Facilities are in place, with excess capacity available to support future production growth. Basin, the Kaybob assets Quattro expects have stacked pay potential upside from well Long-life production of 612 Mcf/d with and are the key operating area for Trilogy 2P reserves of 2.7 Bcfe. optimization and workovers, along with 95% of all 2014 capex directed to with the potential in the undeveloped acreage. The acreage contains a number of there. The stacked pay nature of the assets conventional development options, including the Halfway, Doig, Bluesky, Dunlevy, has allowed Trilogy to raise development Charlie Lake, Slave Point and Keg River. capital by selling off rights to different Reports paying $12,300 per daily boe There are also competitive unconventional depths while retaining its acreage position. & $2.80 for 2P reserves. drilling options in the Montney, Muskwa Trilogy is also contemplating either and Otter Park formations. Quattro assigns the majority of the deal value to current selling or striking a JV for its Duvernay production, while valuing the undeveloped land at less than $100/acre. assets at Kaybob. Trilogy has 48,000 acres “The acquisition of this production at a discount to current oil and natural gas in the gas/condensate area of the play and pricing and the additional prospective lands is another incremental step in our business 80,000 acres in the volatile oil window. plan of being regional focused while The company last reported having spent continually improving on Quattro’s Over 10,000 undeveloped acres with $340 million on Duvernay projects and stacked pay potential. economies scale in its core regions,” said participating in 51 horizontal wells. CEO Leonard Van Betuw. “Upon closing, this acquisition represents a production and Selling off the Duvernay would leave reserves increase of more of 5% YOY at a cost of $12,300 per boe/d and $2.80 per boe the Montney as the prime drilling target of reserves on a 2P basis. Clearly this is an accretive addition to reaching our near- for Trilogy at Kaybob. The company has term goals in northeast British Columbia.” drilled 110 Montney wells to date with average well EURs of 292,000 boe. There Acquisitions Key Part of Quattro’s Growth Plans are 400 remaining Montney locations.

Western Accelerated growth and diversification, increasing book value and operating ABOUT PLS Canada income 300% in 2015 PLS CanadianAcquirer covers the active Phase One First phase of acquisitions are complimentary to Quattro’s Canadian asset marketplace with analysis of current operations mergers, divestitures, transactions, analyst comments, deals in play and deal metrics. 24 low risk development locations for re-entry, drilling, & completion, Low-Risk to incrementally grow and optimize existing properties, utilizing In addition, the CanadianAcquirer carries established infrastructure & cash-flow broker offerings and property listings that Reserves and development locations to 200, & 10 exploration wells targeting are coded alpha-numerically. Increased 3 independent regions of Canada, seismically quantified within known low To obtain additional PLS product details, cost producing regions, funding material growth in 2016 in Guatemala drill www.plsx.com/publications.

Guatemala Business development continues PLS Inc. 3300, 205-5th Avenue SW An expanding team of professionals with over 300 aggregate years of oil Calgary AB T2P 2V7 Team & natural gas experience, from grass roots exploration through to 403-294-1906 (Canada) development and marketing 713-650-1212 (US)

2015 Exit Low risk Dec 31st potential to exit 2015 producing > 3,000 boe/d (40% liquids) To obtain additional listing info, contact us at 403-294-1906 or [email protected] with the listing code. Only clients are able to The balance sheet and cash-flow, giving Quattro the capacity to grow internally Strengthening to an annualized free cash flow rate of $40 m, supported by 30 mmboe receive additional information. To become a of reserves, with a book value of less than $4/boe by year-end 2016 client call 403-294-1906.

For further consolidation with a strong Capital Structure through the © Copyright 2015 by PLS, Inc. Poised issuance of dividend yielding Convertible Preferred Class C shares, having the option to convert into highly valued and tightly held Class A Common shares Any means of unauthorized reproduction is prohibited by federal law and imposes fines Source: Quattro September 21 Presentation via PLS docFinder www.plsx.com/finder up to $100,000 for violations.

Find more A&D news at www.plsx.ca To learn more about PLS, call 403-294-1906 Volume 24, No. 16 3 A&D A&D Buffett boosts stake in Suncor Energy by $280 million Journey consolidates with The beat-up oil sands industry has at least one investor willing to look on the series of small deals bright side, with legendary value stock guru Warren Buffett picking up another 7.64 million shares of Suncor Energy through his Berkshire Hathaway In its Q3 report, Journey Energy holding company. The shares are valued at $283 million. The Oracle revealed a number of deals completed of Omaha first bought into Suncor in 2013 by picking up 17.8 million during the quarter to build out its holdings shares in a deal valued at more than $500 million. Berkshire’s total current position of in core Alberta operating 30 million shares of Suncor make it the ninth-largest shareholder in the company. areas. In the Countess/Brooks Buffett is best known for taking positions in companies he believes the market area, Journey completed two is undervaluing, and his well-known preferred holding time is “forever.” An transactions. First, it acquired leases endorsement from Buffett is a welcome sign for oil sands champions who have covering 7,520 net acres of Mannville been touting the long-term viability of the industry even in the face of current Acquired additional Mannville rights troubles from low oil prices. Suncor leadership appears to be bullish on oil sands & 35 boe/d for $2.2 million. itself, recently completing a $300 million deal with Total to increase ownership at one project and launching a hostile takeover for Canadian Oil Sands, which is its rights directly adjacent to its core partner in another project. development area from Heritage Royalty Partnership. That deal significantly Forent nabs additional interest in core operating area expanded its available acreage in the area, Forent Energy has acquired additional assets in its core operating area of Twining and Journey anticipates drilling a well on near Three Hills, Alberta, for $4 million plus a 10% royalty on production subject to a the new leasehold before the end of 2015. put/call arrangement. The assets produce 250 boe/d (68% oil and NGLs) of high-netback Journey also picked up 35 boe/d (70%) crude from the Pekisko formation. Proved reserves total 616,200 boe with 2P reserves at from assets in the area through a deal with 1.77 MMboe. Forent also will get 12,800 net acres (44,800 gross). The company reported a major producer. The total cost for both paying $16,000/daily boe and $2.29 boe transactions was $2.2 million. for 2P reserves. Assets subject to 10% royalty with innovative put/call structure. The deal immediately Consolidated unit interests in central boosts Forent’s current production level by 100% and provides even Alberta for $1.85 million. more long-term upside from 34 development drilling locations. For less development In the company’s central Alberta unit, capital, production could be increased through the stimulation of existing wells. Journey acquired 35 boe/d (70% liquids) “The innovative structure of this transaction demonstrates Forentʼs ability to make for $1.85 million and consolidated its an acquisition attractive for both the vendor and Forent in the current low-price ownership of several unit interests. Most environment,” said CEO Robyn Lore. “Production enhancements and low-risk recently, the company wrapped up a development opportunities will grow the company and position Forent to benefit deal at its Skiff property that added 640 significantly from an oil price recovery.” acres containing two horizontal wells producing 30 boe/d (100% light oil). The Ironhorse Oil & Gas gets unsolicited takeover offer new acreage is in the center of one of its Ironhorse Oil & Gas has received an unsolicited takeover offer from 1927297 waterflood projects. In the capital markets, Alberta Ltd. of $0.17 in cash per share. The offer valued the Calgary-based junior Journey purchased and subsequently E&P at a total of $2.7 million net of cash and is a 45% premium to the volume- canceled 1.3 million shares at an average weighted average trading price of Ironhorse shares for the 90-day period cost of $1.68 per share. ended Nov. 2. Ironhorse is focused on its Pembina and Dawson/Balsam Overall, Journey reported Q3 operating areas. Production during Q2 was 254 boe/d, up 213% from the average production of 9,786 (54% prior quarter. The company reported liquids). The company has kicked off YE14 proved reserves of 624,000 boe and Ironhorse Oil & Gas receives cash offer of $0.17 per share. its latest eight-well drilling program 2P reserves of 799,000 boe. targeting development of large oil pools The initial date for accepting the bid is Dec. 18. To give its shareholders more in central Alberta acquired in what the time to consider the offer, the Ironhorse board has put in place a shareholder's company called a “transformative” deal rights plan that will allow current shareholders to purchase new shares at a price during summer 2014. During Q3, Journey well below market. A permitted bid under the plan would have to stay open for a drilled five of those wells. minimum of 120 days. However, the acquirer called the scheme a “stalling tactic” by the board, which it claims is unlikely to come up with a better plan in 120 days given Subscribe today! turmoil in the industry. While the dollar values involved are significantly lower, Call 403-294-1906 the fight mirrors the current showdown between Suncor Energy and the board of www.plsx.ca/subscribe Canadian Oil Sands.

For general inquiries, e-mail [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 4 November 18, 2015 A&D Keyera looks at acquisition PrairieSky gets CNRL royalty asset package Continued From Pg 1 opportunities in Montney More than 75% of combined revenue from the royalty assets will come from fee Keyera Corp. is considering title land. Pro forma, PrairieSky’s total production will be 23,000 boe/d with an annual acquisitions to build up its midstream decline rate of 24%. It will pay a dividend of $1.30 per share and have a working network in the most promising Western capital surplus with no debt. Further, the company will hold $1.7 billion in tax pools. Canadian plays, including the PrairieSky will have a particularly strong position in the Viking Montney. Its near-term focus light oil play, with 800,000 fee title acres, making it the single- is on the liquids-rich areas of largest Viking royalty collector in Alberta. It will also have leading positions in the the play such as Wapiti, Elmworth and Spirit River, Montney, Cardium and Simonette. The company was active in Charlie Lake plays among others. New interests will contribute current the Western Canadian midstream asset production of 6,700 boe/d. A development agreement with market during 2014, completing deals CNRL whereby it is retaining rights to drill particularly promising Viking acreage calls that added net processing capacity of 332 for the company to shoot seismic and drill 10 wells on the leasehold it operates. Other MMcf/d. Existing gas-processing plants top payors on the acquired assets will include Caltex Resources, Cardinal Energy that the company bought into include and Crescent Point Energy. Overall, the top 10 payors will account for 58% of Cynthia and Ricinus. revenue while the top 25 payors will provide 80% of total revenue on the CNRL lands. Keyera sees ample midstream growth “With this transaction, CNRL and opportunities in Western Canada. Adds 2.2 million acres of fee title mineral PrairieSky have cooperated to form a true interest land. Canadian champion with a royalty land The Montney was specifically singled position that cannot be duplicated,” said PrairieSky CEO Andrew Phillips. PrairieSky out as a potential growth area for Keyera will fund the cash portion of the deal with a non-brokered private placement of 27 because of ongoing interest in the play million subscription receipts at $25.20 per receipt. Following the private placement by upstream producers even in the face and the issuance of shares to CNRL for of lower oil prices. Other areas where the acquisition, PrairieSky will have 228 Encana first to unload royalties, then Keyera sees key growth opportunities Cenovus & CNRL followed suit. million shares outstanding. include the need for additional pipes to CNRL said several times that it planned to divest the royalty interests either via a move gas to the coast of British Columbia spinout like Encana or an outright sale. “This transaction preserves upside exposure to meet demand from the proposed for CNRL to a combined asset class with proven potential for long-term production LNG projects. There is also a need for and free cash flow growth, an unmatched royalty position in Western Canada’s leading additional pipelines to move oil sands resource plays, and the perpetual optionality that exists within the combined fee simple production out. mineral title land position,” CEO Steve Laut said in a statement. Continues On Pg 5 For over 20 years, PLS has PrairieSky Sees Significant Shareholder Upside in CNRL Deal been the central access point for buyers & sellers. • Increases Fee title position by 39% and GORR by 85% Unparalleled Royalty • Combined acreage position of 14.7MM acres (7.7MM acres of Fee, 7.0MM acres of GORR(1)) PLS manages the oil & gas industry’s Land Position • >75% of revenue would come from Fee lands largest multiple listing service, • Approximately 800,000 acres of Fee lands prospective for the Viking currently offering over 1,300 active Dominant Viking Light • Adds to PSK’s existing 500,000 acres of southwest Saskatchewan Viking lands Oil Exposure • PSK currently the largest Viking royalty collector in Alberta(2) listings for sale including prospects, properties, farmouts, shale acreage, Expanded Deep Basin • Leading position for Spirit River, Montney, Cardium, Charlie Lake and others royalties, overrides, nonproducing Footprint minerals and midstream assets. Accretive for All • Provides near term per share accretion as well as medium and long-term Clients can run noncommissioned Shareholders value accretion listings in any of PLS’ U.S. core or • Agreement includes seismic shoot and a 10 well drilling commitment with two regional reports. To submit a listing(s) Multi-Year Drilling 10 well options today, email [email protected]. Commitment with CNRL • Commitment lands directly osetting a recent heavy oil discovery • 17.5% lessor royalty To obtain additional info on a listing, • Provides near-term accretion to shareholders call 713-600-0154 and provide listing $1.2Bn of COGPE Tax • Reduces 2015 current tax position to Nil code or email [email protected]. Pools • Reduces taxability for next decade Only PLS clients are able to receive Strong Roster of • Adds high quality, capital ecient and well capitalized operators as future payors additional information. To become a Royalty Payors • Further diversifies geographical and geological nature of royalty payors client, call 403-294-1906. (1) Fee Lands refer to lands with Petroleum and/or Natural Gas rights and exclude 1.1 million acres of Coal Only Visit www.plsx.ca/listings rights. GORR lands include GRT and Crown Interest Lands (2) Excluding the Crown for more opportunities. Source: PrairieSky November 2 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 24, No. 16 5 A&D What’s on the Market A&D Birchcliff shops two Alberta PrairieSky gets CNRL royalty asset package Continued From Pg 4 asset packages “It also places the assets with a proven management team that will focus on capturing Birchcliff Energy is launching a the value of the royalty assets.” The deal is expected to close in early December. CNRL sales process for assets in the Gold Creek will use the cash to reduce its debt to book capitalization from 38% to 36%. It will and Progress areas of western Alberta distribute the shares it received from PrairieSky to its own shareholders by May 2016. and has retained Scotia Royalty assets have been particularly attractive to investors Waterous to help run the because they provide steady cash flow without the requirement CNRL will use cash to pay down debt sales process. The Progress & distribute shares in May. properties situated northwest of Grande for capital investment. Ownership of the Prairie have light oil production that mineral interests privately rather than by the crown dates back to the early days of averaged 790 boe/d during October and Canadian industrialization and specifically land grants to railroad companies. Private are on track to generate annualized 2015 owners of mineral title land receive a bonus for leasing it out to producers plus a share income of $6.6 million. Leasehold covers of production in the form of a royalty, High investor demand drives up sales which would go to the government if 5,120 net acres (11,200 gross) with an multiples on royalty production. existing inventory of Halfway oil drilling the property was crown land. Instead of targets. The lands with development receiving a royalty, the province takes its share in the form of a mineral tax. Three of the most significant royalty packages were held by Encana, CNRL and Progress assets averaged 790 boe/d Cenovus. Encana struck first to monetize its assets when it spun out PrairieSky in from Halfway during October. 2014. Cenovus sold off its royalty assets over the summer to the Ontario Teachers’ potential have an average working Pension Plan for $3.3 billion. interest of 66%. Outside of the Halfway, Based on desirability, royalty assets and, in particular, fee title land sell at producing zones include the Bluesky, considerably higher multiples than working interest oil and gas properties. Cenovus Doe Creek Boundary Lake and Doig. IP reported selling its royalty assets for $223,000 per boe/d. The headline number for rates on new wells range from 200-900 CNRL’s sale implies a multiple of $201,911 per boe/d. Other companies raise capital through bbl/d. Included in the asset package selling GORRs if no fee title land. is ownership in area infrastructure to Outside of CNRL, Encana and support future development. Cenovus, the supply of fee title mineral land is more limited. Other companies have The Gold Creek assets lie directly taken advantage of the appetite for royalties by manufacturing GORRs and selling within the liquids-rich gas window of them to firms such as Freehold Royalties. Unlike fee title land, however, GORRs the Montney and cover 9,920 acres with expire and don’t generate leasing bonuses, meaning they are typically sold for lower 100% WI. While not currently producing, multiples than fee title interests. the leasehold is surrounded by several wells with positive test results and offsets Acquisition Boosts Ownership of Extremely Attractive Asset Class NuVista’s Elmworth producing area. • Government owns mineral rights (~90% of Alberta) Non-binding proposals for both asset • Revenue received from E&P companies with producing wells located on Crown lands packages are due by Dec. 5. To learn Crown • Corporations/individuals own the mineral rights (~9% and ~1% respectively more about this opportunity, check out Fee Simple in Alberta) in perpetuity Mineral Title • Revenue from third party E&P companies with producing wells PLS Listing No. PP 11626DV. located on Fee Lands (PrairieSky) • No royalties payable to the Crown • Finite life (term of lease / life of well bore) Gross Overriding • Royalty rate obtained usually lower than other royalties (+/-%). Contractual agreement creates financial obligation for the producer Royalty Register Your Criteria • Typically an upfront cash payment for the right to a proportion of future production Streams • Purchaser obtains a percentage of an asset’s total production of a specific commodity • Ongoing cash payments required by stream holder Are you • Payments are made based on profitability of a defined area Net Profit Interest • Potential for large fluctuation in payments with the royalty collector exposed to the operating costs in the field but has no exposure to environmental liability a buyer? • Structured investment that relates to a specific volume of production For over 25 years, PLS has been Volumetric Production Payment • Deal expires after a pre-determined amount of time • Asset is non-operated and typically carries no environmental liability the central access point for buyers & sellers, managing the industry’s • Acreage is leased from either the Crown or Fee title holders Working Interest • Exposure to capital costs, operating costs, abandonment and environmental largest multiple listing database liabilities generally in proportion to ownership interest with prospects, properties, overrides and many other opportunities for sale. As you move down the royalty hierarchy, costs increase and lease terms decrease For details, email [email protected] Source: PrairieSky November 2 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, e-mail [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 6 November 18, 2015 A&D What’s on the Market Pine Cliff buys central Alberta assets Continued From Pg 1 Producing properties plus Pine Cliff is getting a total of 828,471 net acres with an average working interest GORR offered by Magnum of 78%. There are also 99,930 acres of fee title mineral land. The leasehold contains Magnum Energy has hired NRG more than 550 drilling locations (420 net). Pine Cliff is paying $15,772/daily boe and Divestitures to market its producing $2.35 per boe for 2P reserves. assets in Alberta. The company has Production is fairly evenly Likely seller is ConocoPhillips, which was marketing similar assets. three core operating areas currently split between the asset packages. producing 105 boe/d Pine Cliff reported that the Ghost Pine assets are producing 32.4 MMcfe/d (92% that are cash-flow gas) with an annual decline rate of 9%. There are 244,699 net acres at Ghost Pine, positive at an annual rate of $412,000. including 10,699 acres of fee title land. The acquisition includes ownership in two The Provost property in east-central conventional gas plants with combined capacity of 52 MMcf/d. The plants generated Alberta contributes output of 33 bo/d third-party revenue of $3.6 million in 2014. There is upside on the assets from both coalbed methane infill drilling and further Provost oil output expected to improve Viking & Ghost Pine packages cover development of conventional gas. to 61 bo/d after work program. combined 828,471 net acres. With the Viking assets, Pine Cliff is from five oil wells. The introduction of getting a predictable production profile, high working interest, long reserve life and a tank heaters, which are currently being geographically focused asset base that is 85% weighted toward natural gas. The assets installed, is anticipated to nearly double produce 38 MMcfe/d with an annual decline rate of 14%. The package comes with 583,722 production to 61 boe/d. Cost savings in net acres and includes the majority of the fee title land at 89,231 acres. Pine Cliff is getting operating the assets can be achieved via another two gas plants with combined capacity of 75 MMcf/d. Upside on the Viking assets the reactivation of a disposal well. In comes from shallow conventional drilling opportunities with favorable royalty rates. addition, there are a number of step-out Grabbing the new assets is a significant drilling opportunities. move for Pine Cliff. The deal will boost Pine Cliff is paying $15,772/daily boe & $2.35 boe for 2P reserves. At Sedalia to the south of Provost, corporate production by 90% while adding Magnum produces 350 Mcf/d. Plans two new core operating areas. It will also substantially increase the company’s well- are in place to boost that number to recompletion inventory and drilling opportunities, focused largely on the Horseshoe Canyon on the Ghost Pine assets and GORR assets at Oyen generate free Will increase 2P reserves by 140% on the emerging Colorado shale play on the cash flow of $1,400 per month. a per-share basis. Viking assets. Pine Cliff anticipates a 60% 560 Mcf/d through the reactivation of boost to funds flow from operations and a 140% increase in 2P reserves on a per-share wells that is expected increase cash flow basis, taking into account new shares issued to raise cash for the acquisition. $10,000 - $120,000 per year. The third A portion of the acquisition price is being funded via a bought-deal private revenue stream comes from a GORR placement co-led by Haywood Securities and Clarus Securities. Pine Cliff will issue on assets at Oyen that generate $1,400 55.6 million subscription receipts at $1.08 per receipt for total gross proceeds of $60 per month. Bids for the assets are due million. The remainder of the acquisition will be funded by drawdowns on Pine Cliff’s by Dec. 9. To learn more these available credit facility and the use of working capital surplus. assets from Magnum, check out PLS Listing No. PP11743DV. Pine Cliff has Used Accretive Deals to Build Production Base www.plsx.ca 100 BOE/D TO ~13,000 BOE/D IN THREE AND A HALF YEARS

Transaction Metrics PNE Price at Transaction P+P Flowing P+P P+P Announcement Announcement Value Production Reserves Barrel Reserves Reserves Date Transaction Date ($million) (boe/d) (mmboe) ($/boe/d) ($/boe) ($/mcfe) ($/share) Carrot Creek/Edson and 20-Apr-15$14.11,030 4.8 $13,699 $2.93 $0.49 $1.53 Southern AB Asset Carrot Creek/Edson 29-Jul-14$33.3 970 4.0 $34,278 $8.31 $1.39 $1.86 Asset Acquisition Southern AB & SK Asset 17-Jul-14$100.05,300 15.5 $18,868 $6.45 $1.08 $1.38 Acquisition ($/share) Southern AB & SK Asset 17-Jul-13$13.3 850 2.4 $15,588 $5.62 $0.94 $1.00 Magnum Energy GO Acquisition Monogram Unit WI 27-May-13 $33.71,600 7.7 $21,063 $4.39 $0.73 $0.81 Acquisition PLS provides clients with research, Skope Energy Inc. 20-Nov-12 $28.03,500 9.4 $8,000 $2.98 $0.50 $0.69 insight & transaction opportunities… Acquisition Carrot Creek Asset 10-Feb-12$23.5 950 3.1 $24,737 $7.58 $1.26 $0.40 Acquisition $17,311 $5.25 $0.87 24|7|365 Pine Cliff is an entirely unhedged, natural gas-focused, cash flow growth company predominately driven by M&A activity. Source information at www.plsx.ca Source: Pine Cliff October 6 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 24, No. 16 7 A&D What’s on the Market CENTRAL ALBERTA Connaught looks to exit Canada with Alberta asset sale BRAZEAU PROJECT. T47-48. Connaught Oil & Gas has engaged Sayer Energy Advisors to market its high 14-Wells. 3.5-Sections. (~2,200-Acres.) working interest properties in the Del Bonita and Carmangay areas of Alberta. Total LOW COST CAPITAL PROJECTS production for the two areas is 57 bo/d and reserves amount to 146,000 bbl proved (100% 5-Drilling Locations (All Oil Zones) PP >12 Shallow Behind Pipe Recompletion PDP) with 2P reserves at 267,000 bbl. Connaught operates five horizontal oil wells in -- 75% are Light Oil Opportunities the Del Bonita Rundle oil pool in southern Alberta with working interest production of All Wells Tied Are Tied In. 54 bo/d. The property is characterized by low operating expenses and a favorable royalty 7-35% NonOperated WI For Sale ~20 scheme. There is potential to add up to 14 more horizontal wells, along with upside from Avg 2015 Volumes: ~20 BOED BOED stimulation of the existing wellbores. Conoco-Phillips is Operator. Plans to raise capital to pursue At Carmangay in central Alberta, Low Operating Costs. development of UK properties. 2015 Net Cash Flow: ~$12,000/Mn Connaught produces 3 bo/d from 100% Excellent Existing Infrastructure WI in one Barons Sand well. There is room to add up to four more wells at Carmangay. CONTACT SELLER FOR MORE INFO PP 14241RE The Del Bonita and Carmangay assets are Connaught’s only operations in Canada, and the company is selling to focus on development of its assets in the UK. The company CENTRAL ALBERTA PROPERTY would prefer to sell the assets in one transaction. Bids are due by December 3. To learn 5-HZ Producers. 6-InActive. 25,000+ Acres. more about this opportunity, check out PLS Listing No. PP 11412. HUSSAR/ROSEBUD AREA Pekisko Formation. PP Mosaic markets oil and gas properties in western Alberta Propietary 3D Seismic Data Mosaic Energy is unloading three Alberta property packages with assistance from 100% OPERATED WI AVAILABLE Sayer Energy Advisors. Total production is 190 boe/d (53% oil and NGLs) and 2P reserves Net Production: ~87 BOED total 471,000 boe. The lion’s share of production and all the oil comes from the Wapiti area Net Operating Income: ~$47,500/Month 87 Total Prov+Prob Reserves: 114 MBOE BOED in northwest Alberta just south of Grande Prairie, which produce a total of 170 Net Prov+Prob PV10 Value: $1,800,000 boe/d. The company has 1,280 net acres with 100% WI targeting the Cardium. OFFERS WERE DUE OCT 23 2014 To the east of Wapiti, Mosaic has non-operated interests in three wells in the CONTACT AGENT FOR STATUS Windfall/Kaybob/Whitecourt area with production of 70 Mcf/d and minor volumes of NGLs. PP 11727DV It additionally has interests in 7,360 acres in the Two Creek area that produces 45 Mcf/d. CENTRAL ALBERTA PROPERTY 33-Active Gas Wells. Nordegg Resources puts itself up for sale Continued From Pg 1 ENCHANT. T12-15 Due to its high working interest and operatorship, Nordegg is able to control the pace NON-CORE ASSETS PP and style of development in its core areas. It also does not face any significant acreage Second White Speck Reservoirs. Additional Upside in Mannville Zone. expiries in core areas. Mostly 100% OPERATED WI AVAILABLE 425 Northville accounts for just over 80% of total corporate production or 1,620 boe/d. Company Prod: 75 BOED (95% Gas) MCFD There are 42 drilling locations, including 19 unbooked, in the Glauconite. There is Total Proved Reserves: 69 MBOE additional upside on 21,279 net acres Proved PV10 Value: $219,000,000 of largely contiguous Peters & Co. hired to run marketing AVAILABLE POST BID DATE process for Nordegg. CONTACT AGENT FOR STATUS land from the Ellersie, PP 13258DV which has nine drilling locations at Northville. Other operators in the region have successfully drilled the Ellerslie. Northville drilling targets are rounded out by 27 Rock CENTRAL ALBERTA SALE PACKAGE Creek drilling locations. The Rock Creek on Nordegg’s acreage is within the Deep 27,838-Gross Acres. 8,186-Net Acres. STURGEON LAKE & MOONEY AREAS Basin window with the reservoirs fully saturated with liquids-rich gas and light oil. GORR in 9-Producing Wells in PP Nordegg has established infrastructure and takeaway capacity in the area sufficient to -- the Mooney Bluesky A Pool. support future development schemes. Recent Successful ASP Flood. Upside on the assets from horizontal The Dawson area represents 166 bo/d drilling & possible water flood project. Extensive Seismic Coverage. (100% oil) from legacy Slave Point oil 40% NonOperated WI & GORR 1,567 Avg 2014 Q4 Production: 1,567 BOED BOED pools. The pools were developed vertically and offer upside from horizontal drilling. Established, Low-Decline. There are 17 drilling locations currently assigned to the Slave Point. The asset package 2014 Net Operating Income: $21.0 MM/YR is rounded out by properties in the Caribou area. This operating area accounts for 204 Seller May Entertain Group or Single Offers boe/d (81% liquids) primarily from an Ellerslie A light oil pool. The Ellerslie pool has SELLER PREFERS TOTAL PKG SALE CONTACT AGENT FOR MORE STATUS a large remaining oil in place resource that provides potential upside via waterflood PP 13647DV development. There are 12 drilling locations targeting the Ellerslie. As of October, Nordegg reported a liability ratio of 3.38x. Non-binding transaction More listings at plsx.com/listings proposals are due in January 2016. To learn more about this acquisition opportunity, check out PLS Listing No. PP11625DV.

For general inquiries, e-mail [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 8 November 18, 2015 What’s on the Market CENTRAL ALBERTA Caledonian offers asset package spread across Alberta Looking to unload assets acquired in 2012 via the takeout of Lario Oil & Gas, GENESEE. T50. Caledonian Royalty Corp. has retained Sayer Energy Advisors to market assets >24-Potential HZ Wells. >23,040-Acres. MANNVILLE FORMATION spread across Alberta. Combined production from the interests is 285 boe/d with Glauconitic. 5,000 Ft. DV total 2P reserves of 1.2 Upper & Lower Mannville. 5,000 Ft. Majority of production is from Niton MMboe. The reserve life 2D Seismic & Subsurface Geology Data. and Medicine River assets. index amounts to 12.4 years because of 100% OPERATED WI AVAILABLE low decline rates for the assets consisting of interests in pools. Most of the production Expected IP(Glauconitic): 200 BOPD MANNVILLE Expected IP(Mannville): 200 BOPD and value is in west-central Alberta, where the company holds interests in properties Well Reserves: >200 MBO/Well focused on the Niton and Medicine River areas. DHC: $1,000,000; Compl: $1,100,000 At Niton, Caledonian holds an average 20% WI in a number of wells, including a 7% CONTACT VP OF LAND interest in the Niton unit. Recent working interest production from the Niton property DV 11832L has averaged 161 boe/d, with the majority MULTIZONE POTENTIAL Upside on the properties from infill coming from the Rock Creek formation. drilling & waterflood implementation. >130,000 Acres. >200 Sections. There is upside from the development CONVENTIONAL OPPORTUNITIES DV of additional productive zones from existing wellbores along with step-out and infill Cretaceous Re-Entry/Re-Drill, Devonian drilling. The Medicine River assets consist of stakes in Pekisko and Viking units with Nisku/Zeta, Jurassic to Miss Play Levels, & One of the Largest Duvernay Footprints CARDIUM combined production of 55 boe/d. There are three identified infill drilling opportunities SEEKING JV PARTNERS in the Pekisko unit and five in the Viking unit. The properties may also be suitable for CONTACT PERMIT OWNER FOR INFO waterflood implementation. DV 13398L Outside of these core areas, Offering additional interests in batch of smaller properties including Penhold. Caledonian has interests at Mitsue, Gilby, PARKLAND. T52. Ferrybank, Markerville, Penhold, Fenn Big Valley, Crossfield and Herronton. Penhold 7-Oil Wells. 1-SWD. 2-Shut In. PEMBINA AREA - 5.5 Sections is the largest contributor to total production out of these interests, with output of 32 Mannville Formation. 1,800 Meters. PP boe/d primarily from the Edmonton sand and Mannville. Bids for the assets are due by Wells Completed In Ostracod Formation. December 10. For more details, check out PLS Listing No. PP 11251. 100% OPERATED WI FOR SALE MANNVILLE Net Production: ~30 BOPD & 200 MCFD Net Cash Flow: ~$80,000/Month Husky Energy weighs asset sales following rough quarter CONTACT SELLER FOR DETAILS After reporting a $4.1 billion loss for Q3 largely due to asset value write downs PP 12899DV on a bearish outlook for commodities, Husky Energy is looking at steps to weather the downturn in crude prices. “It’s become increasingly evident that there is inherent ROSEVEAR WELLBORES. T52-T54. instability in OPEC, and going Wellbores for Recompletion. DV Various Rights. ROSEVEAR forward its ability to manage Sales will focus on royalty assets & gas-weighted production. WORKING INTEREST AVAILABLE. prices is not something one DV 11583RE should build a business plan on,” CEO Asim Ghosh said in a conference call with industry analysts. In response, the company is looking to make its balance sheet UTIKUMA. T80. “bulletproof” and its operations profitable even at low prices. 1,280 Acres. 8-Potential Wells. The assets targeted for divestment will largely be non-core, gas-weighted ALL PNG RIGHTS Target: Slave Point Oil. 5,450 Ft. DV properties in Western Canada on which the company took a large impairment. It does Horizontal Well Development Project. not plan to sell any of the company’s oil 2D Seismic & Subsurface Geology. SLAVE Posts big Q3 loss on asset value write sands or heavy oil operations. Another 100% NonOperated WI Available. POINT downs of almost $4 billion. option for raising capital is selling Expected IP: 200 BOPD/Well Well Reserves: 160-250 MBO/Well royalty interests, and the company is assessing the feasibility of selling third-party DHC: 3,000,000; Completion: $4,000,000 royalty interests representing 2,000 boe/d of production in British Columbia, Alberta DV 11732 and Saskatchewan. Husky is also cutting 1,400 jobs to scale back costs. In a further effort to preserve WESTEROSE. T42-43. cash, the company announced it was switching from paying its dividend in cash to 6,500-Gross Acres. 6,000-Net Acres. SIGNIFICANT UPSIDE PP paying in shares starting in January. Glauconitic Production. Potential Pekisko Formation. ~350 ~92% OPERATED WI AVAILABLE BOED Increase deal flow & business opportunities. Net Production: ~350 BOED CALL SELLER FOR MORE INFO Subscribe to PLS! For available options, e-mail [email protected] PP 13528DV

Find more A&D news at www.plsx.ca To learn more about PLS, call 403-294-1906 Volume 24, No. 16 9 A&D

WEST ALBERTA NORTHERN ALBERTA SOUTHERN ALBERTA ALBERTA SALE PACKAGE FAIRVIEW / WORSLEY AREA. T80-87. HARMATTAN / CAROLINE. T29-37. 15,920-Gross Acres. 7,099-Net Acres. ~177,900-Undeveloped Acres. 59,000-Gross Acres. 54,000-Net Acres. TOMAHAWK, CARROT CREEK -- PP PEACE RIVER ARCH DV LARGE UNDEVELOPED LAND BASE PP -- AND GADSBY AREAS Charlie Lake, Kiskatinaw & Wabamun. Mannville Production. Wilrich, Ostracod, Viking, Banff -- 70 Trade and Proprietary 2-D Seismic Data CHARLIE Potential Cardium, Viking, Elkton, -- And Nordegg Formations. BOED 100% OPERATED WI AVAILABLE LAKE -- Shunda, Pekisko & Banff Formations. ~300 OPERATED WI AVAILABLE FOR SALE Primary Term Expires July 2017 ~91% OPERATED WI AVAILABLE BOED Average Production: 70 BOED OFFERS DUE BY DECEMBER 31, 2015 Net Production: 300 BOED CONTACT AGENT FOR MORE INFO DV 13393L CALL SELLER FOR MORE INFO PP 13489DV PP 13529DV RAINBOW / ZAMA AREA. T106-111 FARMINGTON. T80. 51,872-Undeveloped Acres (82-Sections) HUNTER VALLEY WELLBORES. T28. 3,200 Acres. 16-Potential Wells. Muskwa Oil (Duvernay Equivalent) DV Wellbores for Recompletion. DV Target: Boundary Lake Oil. 5,350 Ft. Trade and Proprietary 2-D Seimic Data Various Rights. HUNTER Vertical Well Exploration Prospect. DV 100% OPERATED WI AVAILABLE MUSKWA WORKING INTEREST AVAILABLE. VALLEY Bypass Oil Pay Identified on Acreage. Primary Term Expires March 2016 DV 11342RE Subsurface Geology. OFFERS DUE BY DECEMBER 31, 2015 100% NonOperated WI Available. BOUNDARY DV 13394L PROVOST AREA-VIKING PRODUCTION Expected IP: 60 BOPD/Well LAKE 11-Wells. 17,440-Gross/Net Acres. Stratified-Includes All Charlie Lake PNG SOUTHERN ALBERTA Hamilton Lake & Coronation Areas PP Well Reserves: 110-220 MBO/Well Viking Formation. 2,900 Ft. Project Reserves: 1.78-3.56 MMBO ALBERTA STRATEGIC ALTERNATIVES 24 Section Contiguous Land Block. 100 DHC: $800,000; Completion: 1,000,000 >22,000 Net Acres. 35+ Net Sections. 100% OPERATED WI AVAILABLE BOPD DV 11567 HARMATTAN & CROSSFIELD AREAS APPROXIMATELY $23MM TAX POOLS SIGNIFICANT UPSIDE POTENTIAL PP CONTACT SELLER FOR MORE INFO WEST ALBERTA SALE PACKAGE Viking Light Oil Production in Harmattan. PP 11972DV ~40-Producers. 34,197-Net Acres. Viking C, D & E Production in Crossfield. NARRAWAY AREA. T62-66. Numerous HZ Viking Locations Identified. SOUTH ALBERTA PROPERTY NIKANASSIN ZONE PRODUCTION PP OPTIMIZATION POTENTIAL 21-Producers. 10,000+ Acres. Majority Produciton is Commingled. ~63% OPERATED WI AVAILABLE 273 LONE PINE CREEK. T30-32 Remaining Upside Locations Total Production: 273 BOED BOED Viking & Shallow Gas Zones. PP Extensive Seismic Coverage. 1,723 LOW DECLINE BASE PRODUCTION 100% OPERATED WI AVAILABLE 41% OPERATED WI Available BOED Net Operating Income: ~$260,000/Month Gross Production: 80 BOED 80 Avg 2014 Q4 Production: 1,723 BOED Total Proved Reserves: 1.4 MMBOE Net Cash Flow: ~$16,500/Month BOED Established, Low-Decline. Net Proved PV10 Value: $27,461,000 Total Proved Reserves: 191 MBOE 2014 Net Operating Income: $12.1 MM/YR Total 2P Reserves: 2.0 MMBOE Net Proved PV10 Value: $418,000 CONTACT AGENT FOR MORE STATUS 2P PV10 Value: $37,056,000 CONTACT AGENT FOR MORE INFO PP 13646DV ORIGINAL OFFERS WANTED OCT 6 PP 13546DV CONTACT AGENT FOR UPDATE NORTHERN ALBERTA PP 13478CO SOUTHERN ALBERTA FARMOUT 85,000+ Net Acres of Undeveloped Land. SLAVE POINT PLAY. T87. CANADA SALE PACKAGE TWINING & EYREMORE/ENCHANT 960-Gross Acres. FO Multiple Producing Wells. DUVERNAY SHALE DEVELOPMENT DV Slave Point Horizontals. SLAVE ALBERTA & SASKATCHEWAN Duvernay, Pekisko & Big Valley (Twining) 100% OPERATED WI AVAILABLE POINT JENNER, WAINWRIGHT, LEADER -- PP Rights Below Mannville - Big Valley & Nisku SALE OR FOR SALE OR FARMOUT -- EYREMORE AREAS. 50-100% OPERATED WI AVAILABLE FARMOUT FO 15081DV Milk River, Viking, Sparky. 136 OOIP per Section: 4.8 MMBO/ Section OPERATED WI AVAILABLE FOR SALE BOED Total HZ Well Cost: $3,500,000/Well TROUT LAKE AREA. Total Production: 136 BOED AGENT WANTS OFFERS DEC 31, 2015 7-Wells. 1,920-Gross/Net Acres. PP Positive Cash Flow. DV 13428FO Keg River. 4,950 Ft. CONTACT BROKER FOR MORE INFO 100% OPERATED WI AVAILABLE KEG PP 13799DV SOUTHERN ALBERTA SALE PKG Marginal Production. RIVER 1,202,841-Gross & 628,769-Net Acres. CONTACT SELLER FOR MORE INFO CAROLINE AREA. T35. MANNVILLE FORMATION PP 13122DV 640-Acres. 1-Section. DV Infill Drill Opportunities & Recompletions -- PP PNG From Base Viking to Base Nordegg. in Cardium, Glauconitic, Sunburst & Swift SALESKI (OIL SANDS) WELLBORES. Lower Mannville Drilling Prospect. LOWER Extensive Seismic Coverage. 6,603 Wellbores for Recompletion. 100% OPERATED WI FOR FARMOUT MANNVILLE 20% OPERATED WI Available BOED T87-T91. DV Expires July 27, 2016 Avg 2014 Q4 Production: 6,603 BOED Various Rights. WELLBORES CONTACT SELLER FOR DETAILS 2014 Net Operating Income: $47.8 MM/YR WORKING INTEREST AVAILABLE. DV 14266 CONTACT AGENT FOR MORE STATUS DV 11742RE PP 13643DV

For listing inquiries, e-mail [email protected] Access PLS’ Engagements for featured deals for sale CanadianAcquirer 10 November 18, 2015

SOUTHERN ALBERTA MULTIPLE ALBERTA SASKATCHEWAN ALBERTA SALE PACKAGE ALBERTA SALE PACKAGE SEAGRAM LAKES. T42-23. 3-Producing Properties. 6-Producing Properties. 1-Pipeline. 4-ShutIn. 11,560-Gross & 6,420-Net Acres. FERRYBANK, NELSON & CHIP LAKE ALDERSON, BERGEN, HILLSDOWN- HEAVY OIL POOL PP Belly River, Viking, Ellerslie, Mannville- PP -HUXLEY,KIDNEY & WORKMAN PP Duperow (Leduc). 2,300 Ft. Sparky, Cardium, Rock Creek, Rundle- Lower Mannville, Cardium, Ellerslie-- 100% OPERATED WI FOR SALE 11 -Ostracod & Rock Creek Formations. -Edmonton, Belly River, Viking, And- Estimated OOIP: 150 MMBO BOPD WORKING INTEREST FOR SALE 238 --Keg River Formations. CONTACT SENIOR GEOLOGIST Property Comb Production: 238 BOED BOED WORKING INTEREST FOR SALE FOR PP 14244DV Estimated PV10 Value: $14,800,000 Property Comb. Production: 36 BOPED SALE Proved Probable Reserves: 2.2 MMBOE Annual Fee Reveune: $1,200,000 WORKMAN AREA CA Required To View Data Room. Pipeline Operating Income: $100,000/M 1-Potential Well. 160-Acres. AGENT WANTS OFFERS NOV 19 2015 ORIGINAL OFFERS WANTED OCT 15 SURFACE TO BASEMENT RIGHTS PP 11429 CONTACT AGENT FOR UPDATE Midale. 4,200 Ft. DV PP 13376G Frobisher. 4,000 Ft. DEL BONITA AREA. T1-4. Further Potential For Radcliff. ~61,700-Acres. 2-Standing. 3-Susp. 2-Abd. PRA MONTNEY, EDSON, REWATER -- Subsurface & Geochemistry Data. MIDALE UNDEVELOPED LAND DV 4-Properties. ~380,000-Net Acres. 100% OPERATED WI AVAILABLE Second White Specks, Banff, Exshaw, -- & WAPITI Expected IP: 75 BOPD -- Bakken and Big Valley Horizons. Obj 1: Viking, Cardium & Montoney Plays PP Well Reserves: 75 MBO/Well Trade and Proprietary 2-D Seismic Data ALBERTA Obj 2: Cardium, Bluesky & Spirit River DHC: $752,000; Compl: $800,000 100% OPERATED WI AVAILABLE BAKKEN Avgerage 86% Working Interest 380,000 DV 14246 Lease Terms Expiring 2015, 2017 & 2020 Current Prod: 23,289 BOED (46% Liquids) ACREA FOR PURCHASE OR FARMIN Est. Reserves: 118 MMBOE ALBERTA LONG LAKE/SENLAC. T42 OFFERS DUE BY DECEMBER 31, 2015 NPV10: ~$859,000,000 >24-Potential HZ Wells. >15,360-Acres. DV 13391FO CONTACT AGENT FOR MORE INFO MANNVILLE FORMATION PP 15075DV Obj 1: McLaren/Waseca. 2,300 Ft. DV JENNER AREA. T19-T21. T44 Obj 2: Dina. 2,300 Ft. 3,680-Gross Acres. 1-Producing Well. SASKATCHEWAN 2D Seismic & Subsurface Geology Data. Primarily shallow: Mannville, PP 100% OPERATED WI AVAILABLE Second Whites Specks Production SASKATCHEWAN PROPERTIES Expected IP(Waseca): 110 BOPD MANNVILLE OPERATED & NonOperated WI Available. JENNER 9-Oil Producers; 1-SWD; >10-PUD Expected IP(Dina): 75 BOPD Production: 20-23 BOED MANOR AREA Well Reserves: >100 MBO/Well CONTACT SELLER FOR MORE INFO IMMEDIATE UPSIDE PP Project Reserves: >2,500,000 MBO PP 11821FO Manor Tilston Oil Pool. DHC: $225,000; Completion: $110,000 Frobisher & Midale Oil Wells. CONTACT VP OF LAND PINCHER CREEK AREA. T4-9. 100% OPERATED WI FOR SALE DV 11455L ~57,250-Undeveloped Acres (~89-Sect.) Total Production: ~502 BOPD ~502 SECOND WHITE SPECKS & CARDIUM DV Expected Future Production: 600 BOPD BOPD BRITISH COLUMBIA Al Rights Surface to Basement. Manor Proved Reserves: 445 MBOE Trade and Proprietary 2-D Seismic Data Manor Net Proved PV10: $23,443,000 AKUE CREEK AREA 100% OPERATED WI AVAILABLE ALL ORIGINAL OFFERS DUE JUNE 26, 2015 ~40,000 Net Acres. 76-Natural Gas DSUs DV Primary Term Expires July 2016 RIGHTS CONTACT AGETN FOR STATUS All Rights Surface to Basement. FOR PURCHASE OR FARMIN PP 13109DV Trade and Proprietary 2-D Seismic Data ALL OFFERS DUE BY DECEMBER 31, 2015 50-100% OPERATED WI AVAILABLE RIGHTS DV 13392FO SASKATCHEWAN RE-DRILL PROJECT Primary Terms Expires June 2019 3-HZ Viking Wells. 43-Swab Wells. OFFERS DUE BY DECEMBER 31, 2015 MULTIPLE ALBERTA DODSLAND. T30-32. DV 13396L 8-LSDs for Potential Horizontal Drilling. PP ALBERTA NON-CORE SALE PACKAGE 2-Swabbing Rigs Also Available. NORTHEAST BRITISH COLUMBIA PKG 3-Separate Areas. 50% OPERATED WI FOR SALE 523,399-Gross Acres. 353,672-Net Acres. JOARCAM, LELAND & CHERHILL Total Production: 11 BOPD SWAB DAHL, RING & GUTAH AREA Banff/Nordegg & Shallower Production. PP 2014 Net Income: ~$35,232/Month RE-WORKS LONG PRODUCTION LIFE PP Legacy Viking, Cardium & Montney Upside. Swab Work Generates Additional $150k/Yr Montney & Slave Point Potential. HIGH OPERATED WI AVAILABLE ORIGINAL OFFERS DUE JUL 30, 2015 Infill Opportunities Remain. Avg December 2014 Prod: 1,056 BOED CONTACT AGENT FOR MORE INFO Extensive Seismic Coverage. 5,164 Proved Reserves: 1,857 MBOE 1,056 PP 13506RE 64% OPERATED WI Available BOED Net Proved PV10 Value: $9,388,000 BOED Avg 2014 Q4 Production: 5,164 BOED Prov+Prob Reserves: 2,539 MBOE Established, Low-Decline. Total Prov+Prob PV10: $16,826,000 NO COMMISSION. 2014 Net Operating Income: $36.9 MM/YR OFFERS WERE DUE MARCH 17, 2015 Seller May Entertain Group or Single Offers CONTACT CALGARY AGENT FOR INFO LIST TODAY! CONTACT AGENT FOR MORE STATUS PP 13218DV To get started, email [email protected] PP 13645DV

Find more listings at www.plsx.com/listings No commission! List today, call 403-294-1906 Volume 24, No. 16 11 A&D Closings Delphi wraps up divestment of Greater Hythe assets COS board sticks to its guns Working its way down to being a Montney pure-play, Delphi Energy has completed opposing Suncor buyout the sale its Greater Hythe assets for $12 million. Located in northwestern Alberta in the Deep Basin, the assets produced an average of 6.3 MMcfe/d (94% gas) for the seven months Despite further downward movement ended July. Proved reserves total in oil prices and continual pressure from 27 Bcfe with 2P at 41.4 Bcfe. The Has sold off non-core assets to focus would-be buyer Suncor Energy, the board efforts on Montney development. assets total 103,680 net acres of Canadian Oil Sands is sticking to its (163,840 gross) including 78,508 undeveloped net acres with multiple development guns in opposing the takeover horizons including the Dunvegan, Notikewin, Bluesky, Gething and Nikanassin. of the company. In response The land base has a reasonable expiry profile, with only 2% of the net leasehold to a letter recently released to set to expire prior to the end of 2016. The sale included Delphi’s working interest shareholders by Suncor urging acceptance in three gas-processing facilities with combined gross capacity of 300 MMcf/d. The of the bid, the board reiterated its reasons acquisition is expected to close in November, with proceeds used to reduce Delphi’s for opposition. Like earlier communication debt load. Peters & Co. handled marketing of the assets. from the board, the press release pulled no punches in calling the bid “opportunistic” and accusing Suncor of wanting to Suncor closes $310 million oil sands deal Continued From Pg 1 take value out of the pockets of current Ore from the crushing plants will be mixed with warm water and conditioned to create shareholders and put it in their own. slurry, which will be transported to primary extraction via three hydrotransport lines. Suncor is still gunning for Canadian Oil Sands despite opposition from the Reiterates position that Suncor bid Canadian Oil Sands board. It has taken its offer directly to Canadian Oil Sands is opportunistic & undervalues firm. shareholders, most recently by sending a letter touting the Production expected to commence “Fearmongering will not breathe life during late 2017. into a dead offer,ˮ said CEO Ryan Kubik. benefits of the merger. “While Suncor uses fear and intimidation In particular, Suncor highlighted that the offer is a 57% premium to pressure our shareholders, COSʼs board over the pre-bid price of Canadian Oil Sands and that shareholders would see a 45% is working for shareholders by giving them dividend increase on a per-share basis. It additionally noted that the value of its offer more time through the shareholder rights’ of one Suncor share for every four outstanding shares of Canadian Oil Sands has plan and conducting a thorough evaluation now appreciated in value by $1.00 since the bid was announced Oct. 5 given the of alternatives to surface better value,” subsequent increase in its stock price. added board chairman Donal Lowry. While continuing low crude prices and recent declines in WTI back toward US$40/bbl The shareholder rights plan referred help Suncor’s case, the company still has substantial obstacles to overcome in successfully to by Lowry was put in place soon after buying out Canadian Oil Sands. In particular, Canadian Oil Sands’ board put in place the the bid from Suncor was received and poison pill two days after the offer was made, allowing each shareholder to purchase allows each shareholder to purchase an an additional share at a price significantly Sends letter to COS shareholders urging below market once a would-be acquirer additional share at a price significantly support of bid. below market once a would-be acquirer crosses the 20% ownership threshold. crosses the 20% ownership threshold. Canadian Oil Sands’ only asset is a 37% interest in Syncrude Canada, which At the time, the board said it was still operates the Syncrude project near Fort McMurray in Alberta. The interest contributed production of 98,300 bbl/d during the first eight months 2015. With proved reserves of Hearing on shareholder rights’ plan 700 MMbbl and 2P reserves of 1.6 Bbbl, Syncrude has a 2P reserve life index of 46 years. will take place in late November. In rejecting Suncor’s bid, the board noted that Canadian Oil Sands was the only weighing the offer but needed more time pure-play public investment vehicle for Syncrude, one of the highest-quality Highlights premium to pre-bid price to consider whether it was in shareholders’ & increased dividend. best interest. Suncor is challenging the oil-mining operations in the Athabasca provision, and a hearing in front of the region. It further noted that if the takeover were successful, total reserves and Alberta Securities Commission is set for production attributable to Canadian Oil Sands shareholders would fall by 55% and Nov. 26. Suncor is asking for the provision 46%, respectively. In a presentation, the board listed 11 reasons why shareholders to be removed so that shareholders are free should reject the bid, with a specific focus on the board’s view that the bid was to decide whether to accept the offer. The opportunistic to take advantage of low oil prices. board says it is attempting to defend its Both sides have taken shots at one another in the media, with Canadian Oil Sands shareholders from a bidder that has private CEO Don Lowry calling Suncor’s bid “opportunistic” and accusing Suncor of trying information about the Syncrude oil sands to buy the company at “fire sale prices.” Suncor CEO Steve Williams countered that project, which Canadian Oil Sands has a the offer “reflects the new business reality.” 37% stake in, via its own 12% WI. For general inquiries, e-mail [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 12 November 18, 2015

MANITOBA MULTIPLE AREAS MULTIPLE AREAS MANITOBA LAND POSITION ALBERTA & BRITISH COLUMBIA CANADA NON-CORE PROPERTIES >16,200 Undeveloped Acres. 352,640-Acres. 37-NonOp Gas Drill Units 6-Main Areas. 2-Provinces. Multiple Wells. OAK LAKE AREA. T5-7. DV IMMEDIATE UPSIDE POTENTIAL DV SOUTHERN ALBERTA, CENTRAL POTENTIAL BAKKEN FORMATION Montney, Charlie Lake, Kiskatinaw, -- -- ALBERTA & BRITISH COLUMBIA PP Mission Canyon & Lodgepole Formations Wabamum, Muskwa Oil Development, -- UNDEVE- Pincher Creek, Fincastle, Bow Island, Offsets Several Mississippian Oil Pools BAKKEN Second White Specks & Cardium Potential. LOPED Drumheller, Hanna/Richdale, Chain, Mikwan, Trade Seismic Over Portion of Land 30-100% NonOp & OPERATED WI Huxley, Hairy Hill, W4 Minors, Whitecourt 100% OPERATED WI AVAILABLE OFFERS DUE BY DECEMBER 31, 2015 -- East, Whitecourt & Kaybob FOR FARMOUT OR OUTRIGHT SALE DV 13390PKG NonOperated & OPERATED WI Available ~1,404 CONTACT AGENT FOR STATUS Total Production: 1,404 BOED BOED DV 13498FO ALBERTA & BRITISH COLUMBIA Prov+Prob PV10 Value: $36,563,000 4-Key Areas. ~470,000-Net Acres. CA Required for Data Room Access EASTERN CANADA Package Includes >1,000 Wells. OFFERS WERE DUE MARCH 19 2015 Horseshoe Canyon, Horn River,-- PP CONTACT AGENT FOR STATUS PROVINCE OF QUEBEC --Campbell River, & Exploratory NW AB. PP 13299DV >10,000 Sq Km. ~2.5MM-Acres. 11-Blocks Signifcant Upside & Exploration Potential. MULTIPLE ONSHORE PLAYS DV 81%-100% OPERATED WI AVAILABLE CANADA SALE PACKAGE Potential Carbonates, Sandstones, Shale Total Net Production: ~46 MMCFD CHAPTER 9-Producing Properties. Gas, Shale Oil, Tight Gas & Tight Light Oil. SEEKING Total Est 1P Reserves: >280 BCF 11 ALBERTA - 100% EQUITY IN ALL LICENSES PARTNERS Est PV10 Value: $139,000,000 -- & SASKATCHEWAN SEEKING EXPLORATION PARTNERS CONTACT AGENT FOR MORE INFO Midale, Viking, Lloydminister, Ellerslie, PP Established Partnership Strategy PP 12479DV Glauconitic, Mannville, Colony, Sparky, CONTACT EXPLORATION MANAGER Gething, Peace River & Other Formations. DV 13248FO CANADA NON-CORE ASSET SALE Non-Producing Properties Available. 1-Producing Property. WORKING INTEREST FOR SALE FOR OFFSHORE CANADA ALBERTA & BRITISH COLUMBIA Property Comb. Production: 570 BOED SALE PEACE RIVER ARCH PP Estimated PV10 Value: $14,301,000 BEAUFORT SEA Doig, Triassic, Gething, Boundary Lake, Proved Probable Reserves: 1.9 MMBOE 6-Leases. Charlie Lake, Bluesky & Other Formations. CA Required To View Data Room. Contains 3 Amauligak-Style Prospects -- DV WORKING INTEREST FOR SALE FOR AGENT WANTS OFFERS NOV 19, 2015 -And 2 Adlartok/Paktoa Play Structures. Property Production: 296 BOED SALE PP 11464DV Existing 2-D Seismic Data Available. Estimated PV10 Value: $9,700,000 SEEKING JV PARTNER FOR SEISMIC- BEAUFORT Proved Probable Reserves: 1.1 MMBOE CANADA STRATEGIC ALTERNATIVES Prospective Resources: 3,600 MMBO AGENT WANTS OFFERS NOV 12, 2015 ~164,000-Gross & ~104,000-Net Acres. CONTACT AGENT FOR MORE INFO PP 11854 ALBERTA & BRITISH COLUMBIA DV 11211FO SIGNIFICANT UPSIDE CO CANADA NON-CORE ASSETS PKG Zones: Doe Creek/Dunvegan, Spirit River, CANADIAN JOINT VENTURE 30+ Total Wells. ~13 Producers. Bluesky/Gething, Nikanassin & Triassic 1-Prospect. 43,000-Acres. 67-Sq Miles. PARADISE, OSBORN, BC AND-- MULTIZONE POTENTIAL MAGDALEN BASIN -- BOUNDARY LAKE AREAS, AB PP Established Pipeline Network. GULF OF ST LAWRENCE DV Halfway, Belloy, Boundary Lake, Charlie ~63% OPERATED WI AVAILABLE 80-km West of SW Tip of Newfoundland. -- Lake and Gething Producing Zones. Total Production: 1,070 BOED >1,000 Water Depth 470 m. Drill Depth 2,500 m. OPERATED & NonOperated WI Available 684 Low Decline Base Production. BOED 1000 Km Modern 2-D Seismic. Total Prov+Prob Reserves: 478 MBOE MCFED Total Proved Reserves: 4.5 MMBOE Defines Four-Way Closure. Prov+Prob PV10 Value: $4,000,000 Net Proved PV10 Value: $23,384,000 100% OPERATED WI; JOINT VENTURE CONTACT AGENT FOR STATUS Prov+Prob Reserves: 6.9 MMBOE SEEKING PARTNERS TO DRILL MAGDALEN PP 13561DV Total Prov+Prob PV10: $35,708,000 Possible Plan To Drill 1-3 Years ORIGINAL OFFERS DUE JUNE 2015 Total Resource Potential: 5.0 BBO or -- CANADA NON-CORE ASSETS SALE CONTACT AGENT FOR MORE INFO - 7.0 TCF Carboniferous Clastic Targets. 16-Oil. 20-Gas. 5-Abdn. 13-Standing Wells. CO 13378PP Newfoundland & Labrador License -- ALBERTA, SASKATCHEWAN, -- -- & Quebec Permits. MANITOBA & BRITISH COLUMBIA PP WESTERN CANADA PROJECT CONTACT AGENT FOR MORE INFO Belly River, Medicine Hat, Bow Island, >150-Prospects. DV 15009L Ellerslie, Glauconitic, Lower Mannville, BRITISH COLUMBIA & ALBERTA DV Spearfish, Sunburst & Viking Zones. DEEP BASIN / PEACE RIVER ARCH 2D & 3D Coverage Over Portion of Lands 286 Cretaceous to Mississippian (BC) No Commissions 35-100% OPERATED WI AVAILABLE BOED Belly River, Lower Mannville, Second JV Total Net Prod: 286 BOED (76% Oil) White Specks & Other Formations (AB) PARTNER Get Listed! Total Proved Reserves: 504 MBOE Dunvegan, Codotte & More (Deep Basin) Net Proved PV10 Value: $11,298,000 SEEKING JOINT VENTURE PARTNER For more information on listing, e-mail CONTACT AGENT FOR STATUS IMMEDIATE UPSIDE [email protected] PP 13198DV DV 14674L

Find more listings at www.plsx.com/listings No commission! List today, call 403-294-1906 Volume 24, No. 16 13 A&D International Closings • Ineos announced it is acquiring Encana completes $850 million Haynesville exit an additional 25% WI in the Clipper Closing down its operations in northern Louisiana, Encana has wrapped up a South gas field from Fairfield US$850 million cash deal announced in August to sell its Haynesville gas assets in Energy Holdings. Combined with northern Louisiana to a JV of privately held GeoSouthern Energy and funds managed the acquisition from by Blackstone credit platform GSO Capital Partners. Called GEP LetterOne, Ineos will Haynesville LLC, the partnership acquired 112,000 net acres and 300 have a 75% interest in Clipper South, operated wells with YE14 proved reserves of 720 Bcfe in DeSoto and Red River parishes. with the remaining 25% WI owned GSO owns a pro forma 10% common equity stake plus preferred equity interests in the JV. by Bayerngas. Clipper South came Encana’s Haynesville wells produced 217 MMcf/d in 1H15, contributing 9% of online in 2013 with an initial rate of 42 companywide production and less than 2.5% of operating cash flow excluding hedges. MMcf/d. The gas is in a tight Permian- Production has fallen substantially since the company discontinued Haynesville aged Rotliegend reservoir that contains drilling after 2013, switching to cheaper refrac operations. an estimated 473 Bcf in place. • Santos has kicked off its asset sales Penn West closes $205 million Weyburn unit divestment program in a small way by selling Stag Pushing its total 2015 sales proceeds up to $810 million, Penn West has completed the field, which it co-owns withQuadrant sale of its non-operated 9.5% interest in the Weyburn Unit in southeast Saskatchewan for Energy, to Malaysian company Sona $205 million. The interest was bringing in 2,500 bo/d. The sale works out to $82,000/daily Petroleum. Sona is paying US$50 bbl, according to Penn West, and 13x implied normalized operating million to the partners for Stag, which income. Cenovus has is 60 km offshore Western Australia in the largest ownership stake in Weyburn at Closes Weyburn & Mitsui asset sales within weeks of one another. water 50 m deep. The field is producing 62%. The Ontario Teachers’ Pension Plan 4,600 bo/d from 10 active wells and has picked up an interest in the unit from Pengrowth Energy Corp. in 2012 and then added an proved reserves of 13 MMbo with 2P overriding royalty interest as part of its $3.3 billion purchase of royalty assets from Cenovus. reserves at 16.2 MMbo. Penn West further closed the divestment of properties in the Greater Mitsui area of • Total is selling 15% WI in the Gina central Alberta to Cardinal Energy and a private partner for $192.5 million. The fall sales Krog unit to Sequa Petroleum subsidiary effort moved Penn West over its goal of unloading $650 million in non-core assets during Tellus Petroleum for US$172.7 million 2015. “We will continue to pursue additional non-core asset divestitures in order to further (NOK1.4 billion). Gina Krog is on the reduce our leverage and we will continue to focus on our core operations,” said CFO Norwegian Continental Shelf David Dyck. Proceeds of the sales are being used to work back the company’s debt load. in water depths of 100-120 m. Since 2Q13, Penn West has made $1.9 Sequa is getting 2P reserves Has made $1.9 billion of non-core billion of non-core divestments, selling divestments since 2Q13. of 33 MMboe, according to its internal more than 35,000 boe/d. The totals imply estimates. Production is expected to a production metric of more than $50,000 boe/d. During the same period, net debt has commence in mid-2017 and reach a been cut from $3.4 billion to $2.0 billion. Penn West has also been floated as a potential plateau of 10,000 boe/d net to Sequa. takeover target for a larger firm. It finished Q3 with corporate production of 53,000 boe/d There is access to existing infrastructure (76% liquids) from core assets and 26,000 boe/d (48% liquids) from non-core assets. developed by Total and Statoil, which YE14 proved reserves totaled 368 MMboe. operates Gina Krog with 58.7% WI. Total is retaining a 15% stake, with the rest of the project owned by PGNiG (8% WI) Penn West Sheds Non-Core Assets to Pay Down Debt and Det norske (3.3% WI). ~$1.9B of dispositions • Trinity Exploration & Production ~$3.4B since Q2 2013 ~$2.0B Q2 2013 Net Debt Q3 2015 Net Debt Pro Forma is selling producing assets in Trinidad & Mitsue & Weyburn Sales $3,402 ($493) Tobago to Touchstone Exploration for Total production sold of >35,000 boe/d implies aggregate transaction metric ($212) of >$50,000/boe/d US$20.8 million. Onshore in the Southern ($348) M) ($398) Basin, the assets have current production ($411) $442 $34 $2,414 of 1,490 bo/d and cover 4,141 net acres. $2,016 Touchstone is getting 100% WI in Fyzabad-2, WD-2, WD- 5/6, WD-13 and Net Debt (C$M WD-14, all of which are adjacent to its Q2 2013 H2 H1 H2 Q3 YTD FX Loss Other Q3 2015 Mitsue & Pro Forma existing operations. The deal immediately Net Debt 2013 2014 2014 2015 Net Debt Weyburn Net Debt Dispositions Dispositions Dispositions Dispositions Dispositions adds three years of development drilling opportunities to Touchstone’s inventory. Source: Penn West November 5 Presentation via PLS docFinder www.plsx.com/finder For general inquiries, e-mail [email protected] Access PLS’ CanadianAcquirer archive for previous A&D news CanadianAcquirer 14 November 18, 2015 International Beach Energy tying itself LetterOne buys E.ON Norwegian assets for $1.6 billion up with Drillsearch While forced to sell the UK North Sea assets acquired via its Dea buy, LetterOne Cooper Basin explorers Beach moved quickly to maintain its asset base by investing in the Norway. Through its Energy and Drillsearch are joining forces, Dea operating subsidiary, LetterOne announced the acquisition of E.ON’s Norwegian with Beach set to acquire its competitor assets for US$1.6 billion. The deal came almost immediately after for US$285.1 million (A$394.7 the sale of the UK million). Beach will issue 1.25 assets to Ineos. Through the acquisition, Deal follows closely on the heels of shares for each share of Drillsearch LetterOne's sale of UK assets. LetterOne is getting an equity interest in outstanding for total equity consideration 43 licenses with three in production. The assets are on the Norwegian Continental $252.9 million and assume the company’s Shelf and have current production of 45,000 boe/d, according to LetterOne. net debt. The acquisition is a 30% premium LetterOne will buy E.ON’s 30% interest in Njord field in the Norwegian Sea. The for Drillsearch shareholders based on the Statoil-operated license has a floating steel platform with integrated deck with drilling three-month volume-weighted average and processing facilities and produces oil price of Drillseach and a 27% premium Gets stakes in Skarv, Njord & Hyme to the Njord Bravo storage vessel. At Skarv on the prior-day closing price. Current fields along with development assets. field, LetterOne will have a 28% stake in Drillsearch shareholders will have a 30% the gas condensate and oil project. Skarv consists of five subsea templates tied back to an ownership stake in the combined company. FPSO. The field, which has been online since December 2012, is operated by BP. The two Australian independents have The third producing asset is Hyme field, where LetterOne is getting 17.5% WI. adjacent acreage and existing joint ventures Located 17 km southwest of Njord field, Hyme was developed using a subsea tie-back on the western flank of the Cooper Basin. to the Njord A platform. Like Njord, Hyme is operated by Statoil and has been online More than 90% of Drillsearch’s production since February 2013. “This acquisition is the first step in Dea’s new growth strategy,” comes from JV assets with Beach. The said Dea chairman John Browne. “Dea has access to substantial financial resources, company has averaged 8,219 boe/d (89% and I expect the company to make further investments in the Norwegian Continental oil) so far through its fiscal year 2015. Shelf as well as in its other core areas.” Proved reserves as of the end of June totaled 13.1 MMboe with 2P reserves 25.7 MMboe Santos turns down takeover offer from Scepter Partners and 3P reserves of 45.5 MMboe. Despite being beaten up by low prices, Santos Energy is not interested in a US takeover offer from sovereign wealth-backed Scepter Partners. Scepter recently lobbed in an offer of A$6.88 per share, valuing Santos at US$5.2 billion (A$7.2 EnerVest buys Range’s Nora billion). The offer is a 26% premium to the prior-day closing price of Santos and a 38% field CBM for $876 million premium to the one-month volume-weighted average trading price In a bid to slash its debt, Range of the company; however, the board still labeled it as opportunistic Resources has agreed to sell its Nora field and recommended that shareholders vote against the deal. Given the private nature of coalbed methane property in southwest Scepter, details of the proposed buyout were not released beyond the offered price. The Virginia and other nearby assets to board in its response noted that the offer was “subject to numerous conditions, some EnerVest and its institutional partnerships of which would be adverse to Santos’ continued evaluation of other alternatives in its for $876 million. According to EnerVest, current strategic review process.” the acquisition includes 3,908 operated and Headquartered in Australia, Santos Scepter is backed by royal families non-op wells with projected November net in Asia & the Middle East. has operations at home as well as in production of 105 MMcf/d (100% gas) and a Papua New Guinea, Vietnam and exploration assets in Malaysia and India. The drilling inventory of 9,000 locations. Range company produced 161,000 boe/d during 3Q15, up 4% from 3Q14. In Australia said the assets include 3,500 operated wells it has wet gas assets in the Cooper Basin, where it is partnered with Drillsearch and had Q3 net production of 109 MMcf/d, and offshore assets in Victoria and Western Australia. The company is also heavily representing 7.5% of the company’s output. invested in LNG operations in the Asia-Pacific region, including the very promising At Nora field in Virginia, EnerVest PNG LNG project in Papua New Guinea, where it has a 13.5% stake and is is getting 365,000 net acres including partnered with ExxonMobil and Oil Search. In September, it also started shipping 220,000 with all mineral rights. As part LNG from its $18.5 billion Gladstone LNG project on Curtis Island, Queensland. of the deal, it will also acquire 100,000 So far, Santos and its JV partners have net acres in central West Virginia, most of contracts covering 90% of GLNG’s January 14, 2015 • Volume 07, No. 01 which includes all mineral rights, and a InternatIonalDeals planned 7.8 mtpa capacity. Gladstone Serving the marketplace with news, analysis and business opportunities 1,500-mile gathering system. While most BP in talks with Rosneft to buy 20% in Siberian field International M&A falls 21% is owned by Santos (30% WI, operator), Russian companies blocked by sanctions on other oil & gas deals to $60 billion in 2014 of the wells target shallow CBM, the Rosneft is reportedlyInternationalDeals in talks to sell BP a direct 20% WI in subsidiary Vol. Taas- 07Global No. upstream 16 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. Petronas (27.5%), Total (27.5%) BP, which is the Russian company’s largest private shareholder with 19.75% However, this upswing was due entirely acquisition also includes production and equity. According to unnamed sources cited by Russian daily Kommersant, to skyrocketing acquisition Get morethe negotiations coverage could result in of attempted activitySantos in the US (up takeover. 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. inventory in deeper tight gas reservoirs. and Kogas (15%). expected in early 2015. 132% to $26.6 billion). Looking just at 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 shortly after reaching first oil. At that time the company projected 2014 production billion and 30% in terms of deal count Find more A&D news at www.plsx.ca of 1.0 million tonnes (~20,000 bopd), increasing to 5.0 mtpa (~100,000 bopd) by (including transactions without disclosed To learn more about PLS, call 403-294-1906 2017. It also assigned the field C1+C2 reserves of 134 million tonnes of liquids (~1.0 values) to 399. 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. Continuing 2014’s trend 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 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), 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 system. Seventeen wells have been drilled at Galaz since 2008 and Northwest Konys FEATURED DEALS pilot production began in January 2012. Five wells are on extended test producing an 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 24, No. 16 15 A&D US SandRidge enters North Park Niobrara in $190 million deal • Bill Barrett executed agreements In a bid to diversify into a new play where it can continue to apply expertise subsequent to the end of Q3 to sell DJ gained from its core Mississippi Lime operations, SandRidge Energy agreed to Basin assets outside that area for after- acquire the assets of privately held EE3 Acreage in Jackson County has high tax cash proceeds of $31 million. The LLC for $190 million working interest & low royalty burden. sale is expected to close by cash. The deal gives Nov. 30, around the same SandRidge a largely contiguous 136,000 net acres targeting the Niobrara shale in time as Barrett’s $27 million north-central Colorado’s North Park Basin, situated between the heavily developed non-core Uinta Basin sale announced in DJ Basin and exploratory Sand Wash Basin. late September. The latest deal brings Located in Jackson County, the acreage is 100% operated with high working Barrett’s YTD non-core DJ divestments interest and a low average royalty burden of 17%. It is 47% held by production and to $43 million. The assets weren't within two federal units. SandRidge considers Land largely derisked by 16 existing the northeast Wattenberg focus area or much of the acreage to be de-risked by horizontal wells in Niobrara. expected to compete for drilling capital 16 existing horizontal wells, which are in the near or midterm. producing 1,000 boe/d mostly from the Niobrara D bench. Also included in the • Three tactical acquisitions during acquisition are 54 sq mi of 3D seismic coverage and estimated proved reserves of Q3 increased EOG Resources’ Delaware 27 MMboe (82% oil, 7% PDP) at projected year-end 2015 SEC prices. EE3 is a Basin footprint by 26,000 net acres successor company to Boulder-based Ellora Energy, which was founded in 1995. for $368 million. Most of the acquired acreage in Loving County, Texas, and Anadarko’s Apache takeout offer rebuffed Lea County, New Mexico, is adjacent Apache has rejected an initial takeover proposal from rival Anadarko Petroleum to existing operations. The deals also that would have been the largest deal for a US producer YTD. On Nov. 6, the last included net production of 750 boe/d trading day before the media broke the news about an offer, Apache had a closing and PDP reserves of 2.5 MMboe. Along stock price of $47.67/ with Wolfcamp downspacing and initial share and a market cap Apache is a leading leaseholder in prolific Permian Basin. estimates for the Second Bone Spring, of $18 billion, but the stock shot up 11% they boost EOG’s Delaware Basin in early trading Nov. 9 and has stayed above $52/ share since then. According to the inventory by 2,200 locations to 4,900 and reports, Apache is now working with Goldman Sachs on a defense strategy. Anadarko, resource potential by 1 Bboe to 2.35 Bboe. which has a current market cap of ~$34 billion, reportedly made its offer in a letter sent • Marathon Oil announced a within the past few weeks. deal to sell most of its Gulf of Mexico Apache is one of the biggest leaseholders in the Permian Basin, which remains producing properties, consisting of an the most attractive US play in the current oil price down cycle (see story on page operated 65% WI in the 2). On a gross operated basis, it is the No. 3 producer in the basin at ~200,000 boe/d, shallow-water Lobster, behind Occidental (~307,000 boe/d) and Oyster and Arnold fields and associated Reportedly working with Goldman Concho Resources (~225,000 boe/d), Sachs on takeover defense strategy. platform in the greater Ewing Bank area, according to PLS research using TGS. 50% WI in Chevron-operated Petronius The company has been quite active in cleaning up its portfolio over the past two years, field and 30% WI in BHP Billiton- shedding its Argentine shale acreage, LNG projects in Australia and Canada and operated Neptune field. The buyer will certain mature North Sea interests to focus on US shale drilling. pay $205 million and assume Marathon’s News of the Anadarko bid comes days after Apache reported its Q3 results, abandonment liabilities for the aging which included a smaller-than-expected assets. Closing is expected by year’s end. adjusted net loss of $21 million or $0.05/ December 31, 2014 • Volume 25, No. 18 Transactions • Five months after returning its share and increases to both US and Serving the marketplace with news, analysis and business opportunities Repsol strikes, snapping up Talisman for $13 billion Whiting seals buyout of upstream division Fidelity E&P to the Capitalizing on falling oil prices to gain a substantial upstream foothold in North Bakken peer Kodiak international production guidance (now America, Repsol hasA&D struck a deal Transactionsto acquire Talisman Energy for $13 billion.Vol. The 26There No. is one 15 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 $4.7 billion debt. Unanimously approved by both companies’ boards, the deal will of Whiting Petroleum’s acquisition market, North Dakota gas and power 307,000-309,000 boe/d and 172,000- boost Repsol’s pro forma 2014 production by 76% to over 4.08 Bcfed immediately and of rival Kodiak Oil & Gas. significantly expand its exploration portfolio. The combined company will have a presence The deal created a combined in more than 50 countries with Read more about Anadarko’sBids $8.00/share after Talisman proposed company with Apache a market cap buy. 27,000 employees. tagged a low of $3.46/share. north of $6.0 billion based on the stock distributor MDU Resources announced 174,000 boe/d, respectively). 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 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 five deals to sell the majority of Fidelity’s with Q3 output of 125,000 boepd. sale to Shell of its Latin America-focused LNG business. At the time, Repsol said it was shopping for companies or assets within the OECD with development potential, production at a pro forma 125,000 boepd scale, extra growth capacity and above 8% return on capital. Continues On Pg 12 for Q3, squeaking by long-time leader assets to private buyers for aggregate 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 Occidental Petroleum is looking to supercharge its core Permian growth engine Bakken/Three Forks inventory by by pursuing privately held Three Rivers Operating Co. II LLC. Industry sources 158% to 3,460 net drilling locations sale proceeds and tax benefits of $450 across 855,000 net acres. YE14 proved Information. Transactions. Advisory.contacted by PLS have estimated values in the $1.20-1.35 billion for the deal. A 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), million. One of the sales was completed 82,000 net acres at YE13 plus 5,400 net up 29% compared to Whiting and PLS sources value deal for Riverstone- Kodiak’s YE13 sum. Cont'd On Pg 17 acres picked up this summer. backed company at $1.20-1.35 billion. PLS provides clients with the research, marketing & consultingAustin, Texas-based Three services they needFEATURED to better DEALS Rivers II launched in August 2012 with the acquisition of 15,000 net acres in October, and the other four are and 1,900 boepd in the Midland Basin from Meritage Energy. Backed by Riverstone EAST TEXAS SALE PACKAGE manage their portfolio & facilitate profitable transactions.Holdings, the company at YE13Clients touted 25,000 net acrescan in the Midlandaccess Basin, 22,000 an12-Active Wells.archive 3-SWD. ~3,700 Acres. of in the southern Delaware Basin and 5,000 in the Central Basin Platform representing a BUNA WEST & SILSBEE FIELDS slated to close by year’s end. Proceeds drilling inventory exceeding 1,800 locations (average 90% WI) targeting the Wolfcamp, HARDIN & JASPER COUNTIES PP Cline and Wolfberry combo play. Continues On Pg 11 Wilcox Sands 10,000 Ft.-15,000 Ft. news & reports, plus the PLS multiple listing database at any time. 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 will go primarily to reduce MDU’s $2 Also closes $5.4 billion initial acquisition from Chesapeake Net Production: 44 BOPD & 530 MCFD Statoil is selling a 5.8% stake in its Marcellus and Utica JV assets in northern June 2014 Cash Flow: ~$156,600/Mn For more information on PLS services, please call 403-294-1906PDP PV10: $4,826,000 West Virginia and southern Pennsylvania to new partner Southwestern Energy for BIDS DUE BY JANUARY 15, 2015 billion debt load. $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% 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. For general inquiries, e-mail [email protected] Access PLS’ CanadianAcquirerand Upper Devonian for Southwestern. archiveStatoil had a preferential for right toprevious buy Also Monterey, Belridge, A&DGibson, Oceanic, news 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 The Statoil deal is expected to close in 1Q15 and will be financed from PP 5217DV Southwestern’s revolver. Continues On Pg 15 All Standard Disclaimers & Seller Rights Apply. “Opportunity is a reflection of information.”

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Information. Transactions. Advisory.