April 6, 2017 • Volume 26, No. 05 CanadianAcquirer Serving the marketplace with news, analysis and business opportunities

Cenovus scores Conoco oil sands, Deep Basin assets for $18B Painted Pony's Montney Cenovus Energy will double its size through the acquisition of ConocoPhillips’ buy ‘fits like a glove’ non-operated 50% WI in the Foster Creek Christina Lake (FCCL) partnership and Deep Painted Pony Petroleum’s Montney Basin conventional assets in Alberta and British Columbia, with combined forecast position in northeast British Columbia has 2017 production of ~298,000 boe/d. The $17.7 billion deal, expected to close in Q2, widened through its $229.6 million acquisition consists of $14.1 billion in cash and 208 million Cenovus shares. of Unconventional Resources Canada—a Conoco maintains its Canadian presence through its operated 50% subsidiary of ARC Financial WI in the Surmont oil sands JV and its Corp. and EnCap Investments operated 100% WI Blueberry-Montney Divested assets had a net book value of ~US$10.9 billion at YE16. portfolio company UGR Blair unconventional acreage position. Creek. The deal increases Painted Pony’s The move marks the 14th multinational exit or major scale back from the oil sands Montney acreage by ~52% to 314 net sections since 2014 and the largest global upstream deal since Shell announced its US$82.7 billion (201,009 net acres) and expected 2017 acquisition of BG in 2015. It also further concentrates Canadian oil sands ownership after Canadian Natural Resources Ltd. gained Shell and Marathon Oil assets earlier Painted Pony 220.2 MMcfe/d Q4 this year. With ~440,000 bbl/d of capacity post-deal, Cenovus will be the third-largest oil production up 144% from 4Q15. sands producer by 2020, behind Suncor Energy and CNRL. Continues On Pg 4 annual average daily production by 12% to Pengrowth sheds Montney assets in 2 deals for $272MM 290 MMcfe/d with exit production of Pengrowth Energy divested more Montney assets last month in two separate ~447 MMcfe/d. UGR’s current production is deals worth a total of $272 million. In the first divestiture, announced March 20, over 51 MMcfe/d. Pengrowth said it will sell some of its Swan Hills assets in north-central Alberta to UGR’s assets “fit like a glove” with a private company for $180 million. Painted Pony’s existing asset base, the In the second deal, announced three days later, Pengrowth will company said. Several of the natural gas sell its non-producing Montney lands at Bernadet in northeast British producer’s most prolific Montney wells Columbia for $92 million. were drilled on the Daiber area lands that Pengrowth sold 4.0% royalty in Both moves support the company’s are contiguous with UGR acreage or held Lindbergh to PrairieSky in January. focus on its remaining core assets, jointly with UGR. Continues On Pg 6 principally the Lindbergh SAGD thermal project in east-central Alberta. The sales come after CEO Derek Evans said in February that all of the company’s assets DEALS FOR SALE are available for sale as it continues to pursue its divestment strategy. The Swan Hills assets generated 4,920 boe/d (82% liquids) in 4Q16 and had 2P reserves of CENTRAL ALBERTA SALE PACKAGES 10 Separate Packages. 31 MMboe as of Dec. 31. Continues On Pg 13 OPERATED & NonOperated Assets PP Net Production: 414 BOED (261 BOPD) Trican buys Canyon Services Group for $676 million Net Cash Flow: $338,660 per Month AGENT WANTS OFFERS APRIL 27, 2017 Trican Well Service Ltd. will acquire Canyon Services Group, creating PP 13960PKG a combined company with 675,000 hhp of fracking capacity and a market capitalization of $1.4 billion. The deal combines each company’s cementing, coiled SOUTHERN ALBERTA ASSET SALE tubing, nitrogen, industrial and fluid management services provided to operators in 116,406-Gross Acres. Western Canada. JOFFRE, DELBURNE & PP Trican will acquire all Canyon shares on a 1.70 common MAPLE GLEN AREAS 30% NONOP WI AVAILABLE FOR SALE shares basis for a total price of $676 million, including the assumption of $40 Oct 2016 Net Production: 582 BOPD NONOP million in debt. Trican and Canyon 2016 Net Operating Income: $158,333/Mn 40% of Trican’s fracking capacity was shareholders will respectively own 56% Proved Reserves: 2,748 MBOE parked at the beginning of March. and 44% of the combined company after AGENT WANTS OFFER APRIL 13, 2017 PP 13043 the expected close of the deal in 2H17. Trican CEO Dale Dusterhoft said, “This combination with Canyon will create a Western Canadian-based leading energy NORTH DAKOTA DEVELOPMENT services firm that has the asset base, efficient cost structure and financial capacity to MIDALE PLAY (HZ Application) create value for all of our combined stakeholders.” NonOperated WI For Sale L Canyon’s core business is providing fracking services, which comprise more Operated Acreage Also Available than 80% of its operations. This fits well with Trican, which generated 58% of its CONTACT PLS ENERGY ADVISORS L 9010PP 2016 revenue from the same segment. Continues On Pg 9 All Standard Disclaimers & Seller Rights Apply. CanadianAcquirer 2 April 6, 2017 A&D ■■ Perisson Petroleum served notice of termination to Forent Energy Ltd. Blackbird secures more Montney rights from Knowledge regarding the March 4, 2016, agreement Blackbird Energy has made its third acquisition in two months in the Montney that would have seen Perisson acquire near its Elmworth/Pipeline core assets. In the latest deal, the company acquired two the company for sections of Montney rights from Knowledge Energy for ~1.9 Blackbird shares. These $11.6 million in an all- lands are contiguous with Blackbird’s existing assets and increase its Montney rights stock deal. Perisson at Elmworth/Pipestone to 116 gross sections (100.9 net). also served Forent with notice of collapse That deal followed two acquisitions from Paramount Resources of the April 27 trust agreement under earlier this year. The first saw Blackbird gain 5.8 net (12 gross) of which Forent had been acting as operator Montney rights for $2.9 million. In the second

April 15, 2016 of Perisson's oil and gas properties in the deal, it acquired 3.1 net sections (13 gross) for $3.4 Canadian SCout Twining area of Alberta. Perisson has Serving the Canadian upstream industry with information, analysis & prospects for sale Volume 25, No. 05 million, adding 25-74 net (104-132 gross) drilling Painted Pony Petroleum keeps up drilling pace Regional Activity Painted Pony Petroleum is one of the and down 2% YOY. The company also has April 2016 Top 10 Alberta few companies with a stepped-up drilling 3 MMcfe/d of production shut in on low Operators by License Count accordingly demanded that the registered program this year, with the 13 wells (100% commodity prices. Painted Pony expects Devon NEC Corp 51 WI) drilled YTD more than twice the six Q2 volumes to average 93-99 MMcfe/d. CNRL 18 wells it drilled in 1Q15. Nine locations south of the Wapiti River. The 13 wells drilled YTD more than Cenovus FCCL Ltd 5 wells have been completed this Canadian Scout Mar.twice the six wells drilled13 in 1Q15. Jupiter Resources Inc 2 year compared with five at this Vesta Energy Ltd 1 interest in the properties be transferred to point last year. It plans 14 completions in Painted Pony is trimming its Camfield Groundwater Services Ltd 1 H1 and 30 completions for the year. capital program to $179 million, down The new assets will support Blackbird's Total 78 Painted Pony’s volumes in Q1 9% from the $197 million budget it Devon causes spike in permitting activity, averaged 96 MMcfe/d, up 3% sequentially released in January. Continues On Pg 4 gaining 51 permits at the beginning of April. Blackbird rampsTamarack Valley Elmworth/Pipehits production records in 4Q15 - Perisson as beneficial owner. Permits by Formation Tamarack Valley Energy hit record drilling and completion design changes, production of 9,968 boe/d (61% oil and lower services costs and better well processing and takeaway commitments once an Licenses by Zone Apr Mar Feb NGLs) in 4Q15, up 14% sequentially performance in the Wilson Creek and McMurray Fm 56 8 38 and 30% YOY thanks Alder Flats areas of Alberta. stoneDina Mbr assets16 11 2 past 1,500 boe/d. to a successful drilling ■■ Saturn Oil + Gas closed the Spirit River Fm 2 2 7 program in the second half of the year. Increased efficiencies on permanent Quaternary System 2 - 4 drilling and completion-design changes. eastern pipeline gathering system is constructed. Duvernay Fm 1 34 7 Volumes for the year averaged 8,448 Milk River Fm 1 1 1 boe/d, up 48% from 2014 volumes. The During the first part of 2015, Grand Rapids Fm - 11 2 company also surpassed its exit rate Tamarack Valley halted drilling and Wilrich Mbr - 10 9 target of 9,500-9,700 boe/d on capital instead focused on D&C well redesigns, acquisition of 640 acres of Viking oil Montney Fm - 8 12 spending of $107.4 million, down which resulted in permanent cost Other - 40 55 15% lower at midpoint than guidance reductions that enabled the company Total 78 125 137 of $125-130 million. It saw increased to sustain its operations despite Source: PLS Research capital efficiencies thanks to permanent lower oil prices. Continues On Pg 6 land in the greater Kindersley area of Painted Pony Charges Toward Growth Despite Low Prices DEALS FOR SALE 50,000 500 Annual Average Daily Producon per 1 Million Weighted-Average Shares 475 WESTERN ALBERTA ASSETS Leucrotta expands Montney core in $36 millionOil & NGLs deal ~65-Net Wells. 33,236-Net Acres. 45,000 Natural Gas 450 ) SPIRIT RIVER GROUP Q4 2016 Exit Producon west-central Saskatchewan from a private 40,000 400 Targets: Cardium, Dunvegan, Falher, -- PP -- Codotte, Wilrich, Notikewin, Bluesky, -- 35,000 Q4 2016 350 -- Gething & Cadomin 40,000 Boe/d 48,000 3D & 2D Seismic Data Available. ~8,000 Leucrotta Exploration will acquire 18.5 net sections30,000 of Montney300 land in its Forecast Exit 2015 Avg Production: ~7,900 BOED BOED 2015 Avg Royalty Production: ~100 BOED company. Saturn described the assets as 25,000 230 250 2P 2015 Reserves: 28 MMBOE AGENT WANTS OFFERS APRIL 2016 20,000 200 PP 13493DV

23,000 Boe per Day 1 Million Shares 157 145 Doe/Mica Core area in Northeast British Columbia for $3615,000 million.15,604 The150 assets are ALBERTA & SASKATCHEWAN ASSETS 93 98 13,192 19-SWD Wells. 10,000 100 highly prospective for increased Viking 61 71 LLOYDMINSTER, EDAM & MANITOU

Annual Average Daily Producon (Boe / day 8,693 44 LAKE AREAS

5,000 6,589 50 Annual Average PP 23 4,220 ~150 Prospective Drilling Locations. 761 1,553 2,849 0 0 OPERATED & NonOperated WI 280 directly adjacent to its Lower Montney Turbidite Resource2008 2009 2010 play2011 2012 2013 2014 2015within2016F 2017F 2013 Proved/Probableits Rsrvs: 9.4higher MMBOE BOED • 156% Compound Annual Growth in producon, 2007 – 2015 PV10: $153,000,000 • 32% Compound Annual Growth in producon per share, 2007 - 2015 light oil production through horizontal Well Costs: $625,000 Source: Painted Pony April 6 Presentation via PLS docFinder www.plsx.com/finder PP 13271DV confidence mapping area, which encompasses 116 gross (105 Allnet) Standard Disclaimers sections & Seller Rights Apply. drilling. The company has already of the play. Leucrotta gets 18 identified at least two half-mile horizontal sections of 100% WI Crown Leucrotta's YE16 2P reserves were 22.7 MMboe, up 32% from YE15. drilling locations and two full-mile lands and assumes 100% WI in a section horizontal drill locations on the property. where it already held 50% WI. Leucrotta’s gross acreage land base within its higher confidence mapping area will increase by 18% as a result of the acquisition, which will be funded with proceeds of a $50 million bought deal equity financing. ABOUT PLS Leucrotta has already drilled wells directly adjacent to some of the acreage and CanadianAcquirer is published every three believes the company could book additional reserves on a portion of the lands. weeks by PLS Inc. The acquired lands are offsetting or in immediate vicinity of several significant PLS CanadianAcquirer covers the active Lower and Upper Montney wells, including Leucrotta's recently announced 8-22 Canadian asset marketplace with analysis of Lower Montney Turbidite light oil well and its original Doe development block. The mergers, divestitures, transactions, analyst acquisition will increase Leucrotta's total Lower Montney oil drilling locations by 20% comments, deals in play and deal metrics. to 768 and Lower Montney liquids-rich gas locations to by 10% to 110. The company In addition, the CanadianAcquirer carries had accumulated 144 net sections of Montney land as of YE16. broker offerings and property listings that are coded alpha-numerically. Clients interested in listing details can contact PLS 10 Most Recent Canadian Upstream Deals with provided listing code(s). To obtain additional PLS product details, Value drill www.plsx.com/publications. Date Buyer Sellera (US$MM) Type Location 03/29/17 Cenovus Energy ConocoPhillips $13,300 Property Oilsands PLS Inc. 03/23/17 Undisclosed Pengrowth Energy $68.92 Acreage Conventional 3300, 205-5th Avenue SW Calgary AB T2P 2V7 03/21/17 Journey Energy Undisclosed $26.63 Property Conventional 03/21/17 Saturn Oil + Gas Undisclosed - Acreage Viking 403-294-1906 (Canada) 713-650-1212 (US) 03/20/17 Undisclosed Pengrowth Energy $134.63 Property Conventional 03/16/17 Blackbird Energy Knowledge Energy $0.75 Acreage Montney To obtain additional listing info, contact us Painted Pony Unconventional at 403-294-1906 or [email protected] 03/15/17 Petroleum Resources Canada $205.20 Property Montney with the listing code. Only clients are able to receive additional information. To become a Canadian Natural client call 403-294-1906. 03/09/17 Resources Shell $8,500 Property Oilsands © Copyright 2017 by PLS, Inc. 03/09/17 Canadian Natural Marathon Oil $2,500 Property Oilsands Resources; Shell Any means of unauthorized reproduction is 03/09/17 Undisclosed Enerplus Corp. $49.93 Property Conventional prohibited by federal law and imposes fines Source: PLS Global M&A Database www.plsx.ca/ma up to $100,000 for violations.

Find more A&D news at To learn more about PLS, call 403-294-1906 Volume 26, No. 05 3 A&D M&A in context: 2 deals A&D don’t make a trend Journey adds to central Alberta core in $36 million buy Eleven new upstream deals were Journey Energy will expand its core asset base in the Gilby area of central Alberta announced in the Canadian oil patch in through a $35.6 million deal with a private company. The assets hold an average 2017 March, up from 10 in February and five production of 2,000 boe/d (28% oil and NGLs), as well as an operated 75% WI in liquids- in January. YTD disclosed deal values rich gas production. Journey said the low-decline production base will provide a stable total ~US$25 billion, estimated funds flow stream of $8.0-9.0 million this year. Journey will pay IN THIS comprised primarily of ISSUE the $35.6 million purchase price with $29.6 million of cash and $6.0 million Cenovus’ US$13.3 billion in equity via 2.1 million of it shares. The company said the deal is consistent acquisition of Conoco’s 50% WI in the with its expansion strategy within its central Alberta core area by increasing its network Foster Creek Christina Lake JV and of strategic upstream and midstream infrastructure and further expanding its portfolio Deep Basin assets (PG. 1), and Shell of low-risk, multi-zone, liquids-focused and Marathon Oil’s US$11 billion horizontal drilling opportunities. Journey’s acquired assets have 16% annual decline rate of 16%. oil sands sales to Canadian Natural Journey has identified a number of Resources’ Ltd. Take away these two low-risk, low-cost near-term development opportunities on the acquired assets, including deals, and we are left with slightly over the installation of compression and a pipeline tie in that will allow Journey to maintain US$1.0 billion in deals YTD, contrasted production on the assets over the remainder of the year for ~30% of forecasted funds to US$4.1 billion in deals in 4Q16 flow. In addition, Journey expects operating cost synergies of more than $300,000 per and US$5.6 billion in 34 upstream year due to the integration of the acquired deals during the first three months of Revised production guidance post- assets with its existing properties. deal is 10,100-10,500 boe/d. 2016, according to the PLS Global The acquisition includes 161,700 M&A Database. gross (83,700 net) acres of land focused primarily in the Gilby area, and have established multi-zone production and potential focused primarily on the liquids-rich Glauconite Canada O&G sees fewer deals YOY but deal total value bigger. in the Hoadley Barrier complex. The portfolio of projects includes 19 gross (14.4 net) horizontal locations in the Glauconite. Other established targets in the immediate Therefore context is key, as the region are Cardium oil, Belly River oil and an emerging play in the liquid rich window Cenovus and CNRL deals are so far of the Duvernay shale zone. The deal also includes a seismic data set consisting of the exceptions rather than the rule more than 200 sq km of 3D seismic and amid an otherwise modest uptick in over 400 sq km of 2D seismic. Acquired assets hold 2P reserves of 13 MMboe-23% light oil and NGLs. M&A activity. However, the exodus Journey also acquires a high working or significant scaling back of foreign interest in two strategic gas plants and associated gathering systems and sales lines. The companies from the oil sands is a trend key infrastructure at Gilby includes 43.3% non-operated WI in the Tidewater gas plant that has gained traction since the oil having 75 MMcf/d of gas-processing capability (20% current utilization), superior price downturn began in 2014. The flip liquids recovery, and a network of more than 250 km of pipelines. This infrastructure side of the negative press surrounding generates annual revenue of ~$1.0 million from third-party processing fees. Journey these departures is that Canadian said it will continue growing its own and third-party volumes in the Crystal/Gilby area companies are expanding their positions to utilize its infrastructure and lower its operating costs. in a region where their expertise and Journey also acquires natural gas hedges from the seller representing ~50% of the long-term strategies support oil sands acquired gas production in 2017 and 40% in 2018. Journey is not currently anticipating development for the good of their own any additional general and administrative expenses associated with the acquisition. portfolios and for Canadian oil and gas as a whole. Among the month’s other highlights was the resolution of the protracted takeover drama between Total Energy Services and Savanna Energy Services, with the former taking a victory lap around defeated Western Energy Services (PG. 7). And in a calmer deal in the OFS space, Transactions Metrics Trican Well Service Ltd. acquired and Comparables Canyon Services Group for $676 Providing critical valuation million, creating a combined company information on oil & gas deals. with 675,000 hhp of fracking capacity Call 713-600-0115 or email [email protected]. www.plsx.com/ma and a $1.4 billion market cap (PG. 1). For general inquiries, email [email protected] Access PLS’ archive for previous A&D news CanadianAcquirer 4 April 6, 2017 A&D Closings Cenovus scores oil sands, Deep Basin assets Continued From Pg 1 Clearview expands Alberta The deal includes 265,000 boe/d net after royalty production for 2016 and 3.7 core in $20 million deal Bboe net 2P reserves (70% proved). Cenovus also gets 3.3 million net acres, comprised Calgary-based and Alberta-focused of 3.0 million acres in the Deep Basin and 300,000 acres in oil sands project area. Clearview Resources Ltd. has gained Cenovus now Canada’s largest thermal producer— more assets in its core Pembina area The acquisition launches Cenovus as Canada’s largest thermal oil sands producer of Alberta in a $20.1 million deal. The eight years after spinout of Encana’s oil sands assets through the gain of 100% WI in company acquired 1,120 boe/d (33% FCCL, with existing production capacity of 390,000 bbl/d at Foster oil), 2.6 MMboe 2P reserves and an Creek and Christina undeveloped land base encompassing Lake and expected 2017 production Conoco to receive 5 years of contingent 51 gross sections (35 net) in an active payments after WCS tops $52/bbl. averaging a respective 198,000 bbl/d area for Glauconite, Rock Creek and and 158,000 bbl/d. Christina Lake phases A-F have current production capacity of Ellerslie potential. Post-acquisition, 210,000 bbl/d with regulatory approval to reach 310,000 bbl/d, while Foster Creek the company’s production is about phases A-G have current production capacity of 180,000 bbl/d with approval to reach 2,000 boe/d, consisting of 39% oil and 295,000 bbl/d. At Narrows Lake, Phase A is planned as a commercial SAGD project with liquids and 61% gas. implementation of a solvent-aided process that is expected to reduce the amount of steam PSAs for Pembina and Wilson Creek required to recover a barrel of oil by ~30%, while increasing recovery factors by up to acquisitions signed in 4Q16. 15%. Narrows Lake has approval to reach 130,000 bbl/d production capacity, including 45,000 bbl/d at Phase A. 2P reserves at YE16 were 2.8 Bbo at Christina Lake, 2.7 Bbo at This deal follows the close in February Foster Creek and 1.0 Bbo at Narrows Lake. of Clearview’s $11.4 million acquisition ~1,500 potential drilling opportunities Cenovus said it will “enjoy the full in the Wilson Creek area of Alberta, in identified on Deep Basin assets. benefit” of construction on the Phase G which it gained ~350 boe/d of operated expansion at Christina Lake, where it expects expansion can be completed with capital production, 1.07 MMboe 2P reserves and investment of $16,000-18,000 per flowing barrel. Module assembly has already resumed a large undeveloped, concentrated land for phase G, which has a design capacity of 50,000 bbl/d. Field construction is expected base totaling 28,160 acres. to ramp up to full activity by mid-2017, with first oil expected in 2H19. First tranche of Clearview's private Cenovus makes Deep Basin entrance— placement closed in early February. The new Deep Basin assets at Elmworth-Wapiti, Kaybob-Edson and Clearwater Clearview has aggressively pursued encompass ~3.0 million net acres and include 70% average WI. Cenovus is dedicating the expansion of its core Alberta area in $170 million of its $1.2-1.3 billion 2017 capex to a three-rig drilling program on recent years. The Pembina and Wilson these properties. Continues On Pg 5 Creek buys follow the 2011 purchase of two oil-producing assets at Carmangay Cenovus Gains Second Growth Platform In Deep Basin and Bantry and the 2012 acquisition of four oil-producing units at Lindale, • One of the largest Deep Basin land positions in Spirit River, Warburg and Boundary the WCSB Lake, as well as four gas-producing units • Three core operating areas: Elmworth-Wapiti, Kaybob-Edson, and Clearwater at Carstairs, Caroline and Crossfield.

n • Low decline production base coupled with To finance the Pembina and Wilson significant liquids-rich development upside Creek deals, Clearview engaged in a Basi • Deep inventory of short-cycle, high IRR potential drilling opportunities in areas that $16 million non-brokered private attract capital from offsetting operators Deep

Overview of placement, completing the second • Assets have been capital constrained in recent tranche through the issuance of years 3,187,922 common shares at $5.00 per • 1.4 BCF/d of majority owned and operated net natural gas processing capacity share, making the total amount raised in both tranches $21,139,865. Clearview • 2017F production: 120,000 BOE/d (26% liquids; 17% decline rate) has 8,437,866 common shares issued s c • Total net acres: ~3.0 million and outstanding following the offering. Basin • Proved + probable + future drilling Concurrent with the closing of the atisti

st opportunities: ~ 1,500 summary acquisition, Clearviewʼs loan facility Deep • 2P reserves: 725 MMBOE (62% proved) increased to $26.0 million, with $14 million is currently drawn. Source: Cenovus March 29 Presentation via PLS docFinder www.plsx.com/finder

Find more A&D news at To learn more about PLS, call 403-294-1906 Volume 26, No. 05 5 A&D Closings Cardinal clinches Grand Prairie assets from Craft Oil Prairie closes $41 million Craft Oil closed the sale of its Grand Prairie assets to Cardinal Energy on March 17 Red Earth buy for $4.0 million in cash and 4.0 million shares. The disposition completes the sale of all of Craft’s assets, following last month’s sale of assets in the Judy Creek and Thornbury- Prairie Provident Resources Portage areas of Alberta to Point Loma Resources for $1.6 million. closed its $41 million acquisition of The light oil assets Cardinal acquired produced ~1,625 boe/d (36% oil assets in northern Alberta’s Greater Red and NGL) in 4Q16 and are expected to produce an average of 1,000 boe/d this Earth area in a deal that year. Cardinal estimates that the assets hold 3.4 MMboe in 2P reserves and described complements its existing the deal as consistent with its strategy of increasing the overall light oil weighting of its core operations at Evi in production mix. the Peace River Arch area. Production Capex in 2017 has been set at $52.7 million—62% to be spent on drilling. Cardinal from the new assets is 1,100 boe/d (98% ended 2016 producing 15,000 boe/d (85% oil) after drilling nine wells all year. Still, oil and liquids), increasing Prairie’s Cardinal replaced 250% of 2016’s output through its low-decline, medium-oil assets at production to 6,500 boe/d (64% oil Wainwright—acquired in 2014 in two deals that totaled $406 million. Cardinal said it will and liquids) and its total 2P reserves by achieve synergies on these acquisitions in 2017 via the shut-in of an oil battery offsetting 40% to 3.8 MMboe. the acquired lands and the processing of company oil at Wainwright. Forecasts 2017 operating netbacks of ~$31.00 per boe. A&D The proximity of the Red Earth Cenovus scores oil sands, Deep Basin assets Continued From Pg 4 acreage to Prairie’s asset base at Evi Cenovus said these assets have the potential for production to grow from an estimated is also expected to help reduce area 120,000 boe/d this year to about 170,000 boe/d in 2019, a more than 40% increase. operating costs by $2.00 per boe and Cenovus will also enter into a two-year technical services agreement providing access to improve its ability to compete for Conoco’s expertise in developing and operating these assets, which include a substantial services. Prairie said the integration of portfolio of processing facilities with current net processing capacity of ~1.4 Bcf/d. the assets into its Evi operations has Cenovus CEO Brian Ferguson said that asset sales have started already begun. The assets had a low as the company seeks to offset the cost of the acquisition. “Following base decline rate of ~10% over the past completion of the acquisition, our top priority will be to optimize our asset portfolio and 12 months, which is expected to rise to capital structure, including repaying the outstanding bridge loans.” Cenovus plans further asset sales to 20% due to the large suite of waterflood be initiated in 2017. expansion opportunities gained by Cenovus put its legacy Alberta Prairie in the deal. conventional assets at Suffield and Pelican Lake up for sale and plans to sell more non- core conventional assets going forward. Sources speaking to Bloomberg said the company Capex subject to change depending plans to raise ~$1.8 billion from property sales to offset the cost of the acquisition and has on oil price movement. hired the Bank of Montreal to assist with the divestiture of the Suffield asset for $600 Despite the deal, 2017 capex has million. The sources said Cenovus has enlisted Canadian Imperial Bank of Commerce been maintained at $25-35 million, while and Barclays to advise on the $1.2 billion sale of the Pelican Lake asset. Pelican Lake FY17 average production, factoring in and Suffield’s combined production is about 29,000 bbl/d of oil and 112 MMcf/d of gas. the Red Earth buy, is expected to be Cenovus is funding the deal through a Assets held 3,966 MMboe of 2P $3.0 billion bought deal offering, a portion 6,100-6,600 boe/d with exit production reserves as of year’s end. of 7,500-8,000 boe/d. The deal was of existing $3.7 billion cash on hand, $4.0 funded with Prairie’s credit facility, billion available capacity on its existing credit facility, and its $10.5 billion committed which was increased by $10 million to bridge financing withRoyal Bank of Canada and J.P. Morgan Chase Bank. $56 million following close, and from a Conoco keeps Surmont, Blueberry— recently closed $4.0 million bought deal For Conoco, the deal achieves its balance sheet goal of $15 billion net debt at equity financing of subscription receipts. YE2017 along with most debt maturities obligations cleared through 2023 and allows Funds flow from operations for it to double its share repurchase program to $6.0 billion. The company's Canadian the next 12 months is expected to focus will now exclusively be the Surmont oil sands and the liquids-rich Blueberry- increase by ~$12 million following Montney unconventional asset. the acquisition, which will encourage Conoco finalized a swap in Q4 of non-strategic producing assets through which the company to pursue opportunities it added 30,000 acres in the Blueberry-Montney bringing its leasehold rights at YE16 in other core areas, including its large to 3.1 million net acres. Surmont is a SAGD bitumen recovery facility operated by inventory in the Mannville trend at Conoco under a 50/50 JV with Total E&P Canada, where current production capacity Wheatland and Princess. is 140 MMboe/d.

For general inquiries, email [email protected] Access PLS’ archive for previous A&D news CanadianAcquirer 6 April 6, 2017 Closings Oilfield Services Painted Pony’s $230MM Montney buy Continued From Pg 1 Hyduke pulls M&A trigger Of the 35 Montney wells drilled on UGR lands so far, 20 have been drilled after years of planning in partnership with Painted Pony, and of the 218 gross undeveloped 2P locations With the recovery of oil prices on UGR lands as of YE16, 57 are located on lands jointly held with Painted Pony. beginning late last year, Hyduke Energy The deal includes 197 net 2P drilling locations and management estimates Services was finally able to launch the over 1,000 additional unbooked drilling locations on UGR lands. The new assets turnaround strategy that it first proposed increase Painted Pony's 2P reserves by 39% to 325.1 MMboe. UGR in 2014 to divest its non- has several drill-ready locations that, together with excess processing core assets and pursue and takeaway capacity, are strategic acquisitions. Painted Pony expects 250% organic expected to provide Painted Pony with Earlier this year, it spent $5.5 million to production growth from 2012-2016. significant low-cost, low-risk, near- purchase Western Manufacturing. term production volume additions. In its FY16 report, management A total of 17 wells are ready for drilling on existing pads. In addition to the said the $12 million equity offering that expected 12% increase in 2017 average daily production, output in 2018 is forecast closed in February has allowed it to assess to rise by 41% to 509 MMcfe/d. potential acquisitions that add productive Painted Pony will also gain processing facilities and takeaway capacity not fully capacity, customer base, geographic utilized by UGR. UGR has 155 MMcf/d footprint, and proprietary product lines. FY16 production was 139.2 MMcfe/d, of natural gas processing, of which 105 up from 93.6 MMcfe/d in 2015. MMcf/d is currently unutilized. Closed $12 million equity financing in The oil price recovery and the UGR acquisition prompted Painted Pony to Feb. aimed at funding new M&A. increase its 2017 capital program, which now includes drilling 71 wells and 64 Over the last two years, the company completions on a capex of $348 million, up from 58 wells and 51 completions per has divested its non-core assets and the previous $288 million plan. Painted businesses in preparation for a price Pony also plans to fill excess capacity at Deal increases Painted Pony's Montney acreage by 52%. recovery that would position it to buy. UGR facilities by YE17. In 2014, the company abandoned its Painted Pony also entered a bought-deal offering whereby an underwriters machining facility in Nisku, Alberta, syndicate led by Cormark Securities and TD Securities will purchase ~18 million and discontinued its manufacturing Painted Pony shares at $5.60 each for proceeds of $100.9 million, which will be operations in Houston, Texas, and its used to fund drilling on both acquired and existing assets. painting and sandblasting operations in Painted Pony will issue 41 million shares and assume UGR's net debt of Leduc, Alberta. In 2015, the company $47 million. Based upon the equity-offering price of $5.60 per Painted Pony share, discontinued its crane repairs operations. the total transaction value is $276.6 million. Last year, its Calgary-based machining operations were discontinued.

Painted Pony's Montney Growth Hyduke postponed its A&D strategy Growth when oil prices crashed in 2014. • Q4 2016 producon averaged approximately 220.2 MMcfe/d (36,695 boe/d) represenng a 144% The Western Manufacturing buy increase over Q4 2015 average daily producon of 90.3 MMcfe/d (15,043 boe/d) represented the start of what Hyduke Asset hopes will be several acquisitions to grow • 100% BC Focused Montney its core oilfield services portfolio. Earlier • 206 net secons (131,865 net acres) is the second this year, the company said it had been largest posion in northern Montney west of deep royalty line awaiting “the right market conditions” • 111 gross wells drilled (100 operated by PPY) as at to expand its business. In the past year, Dec 31, 2016 Hyduke has been approved by about • 4.9 Tcfe (823 MMboe) Proved Plus Probable Reserves (4.5 Tcf Natural Gas; 71 MMbbl liquids) 100 new customers that it expects to do Strategic Advantages business with in 2017 and beyond. • Aracve B.C. provincial royalty structure with $2.2 million average royalty credit per well (only 3% royalty during royalty credit period) A simpler • Current and proposed sales pipelines intersect way to track PPY properes global O&G • Firm transportaon in-place to meet commitments from AltaGas Townsend Facility activity Call For Source: Painted Pony Mar. 7 Presentation via PLS docFinder www.plsx.com/finder Web Demo wire.plsx.com 403 294-1906 Find more A&D news at To learn more about PLS, call 403-294-1906 Volume 26, No. 05 7 A&D Oilfield Services CENTRAL ALBERTA Total Energy Services emerges victorious in Savanna takeover ALBERTA NON-CORE PROPERTY Savanna Energy Services terminated its agreement with Western Energy Services 2-Producing Properties. on March 29 after Total Energy Services became its largest shareholder following a BRAZEAU, PEMBINA, WOLF LAKE--- - HINTON & WASKAHIGAN AREAS PP contentious $444 million hostile takeover bid. More than 51% of Savanna’s shareholders Cardium, Rock Creek, Ostracod, Shunda- accepted TES’ shares-and-cash takeover offer of 0.13 of its shares and $0.20 --Mannville And Other Formations. ~500 per Savanna share. Ahead WORKING INTEREST FOR SALE BOED of the April 7 expiration of Rick Torriero, VP, Finance replaces LaMontagne on an interim basis. Feb 2016 Avg. Production: 502 BOEPD the TES offer, Savanna announced the Comb. Operating Income: $1,400,000 Total Proved Reserves: 2,966 MMBOE resignations of CEO Chris Strong and EVP and CFO Dwayne LaMontagne, and the CONTACT AGENT FOR UPDATE resignation of all but one of its directors and their replacement with seven new appointees. DEALS PP 11425 FOR TES engaged in a buying binge of Savanna shares from March 27-April 5, buying up SALE 1.1 million shares since the offer was submitted in November and bringing the total number ALBERTA PROPERTY of shares owned by TES to 62,062,797. Savanna’s management had urged its shareholders 2-Producing Wells. 1-Water Injection Well. PEMBINA. to accept the negotiated Western Energy New Savanna CEO to be named by Services offer to acquire all of Savanna’s Nisku Oil Pool. PP reconstituted board 'in due course.' 1-Water Potential Injector Well And --- outstanding common shares on the basis of ---Associated Pad Facilities. ~1,500 0.85 of a Western share and $0.21 in cash per Savanna share. Western said it is considering 46.875% OPERATED WI FOR SALE BOED “remedies it may have in connection with Savanna’s notice of termination.” Gross Production: ~1,500 BOED Original Oil-In-Place: 8.2 MMBBLS The change in control of the company puts Savanna in default with its first- and ORIGINALLY Q4 2016 SALE second-lien credit facilities. TES said the strength of its balance sheet will enable it to CONTACT AGENT FOR UPDATE assume Savanna’s $248 million debt. TES has $46.9 million in long-term debt and 59% PP 11179DV more revenue than Western, which reported $264.1 million in long-term debt at YE16. ALBERTA PROPERTY SALE A long, contentious process comes to an end— 2-Producing Properties. TES's initially offered 0.1132 of its shares for each Savanna share. It then raised its bid BIGSTONE & WILSON CREEK to 0.13 of its shares and took the offer directly to Savanna’s shareholders. In mid-December, 3-Horizontal Montney Producing Wells. PP 2-Belly River Oil Producing Wells. Savanna said it had received interest from other potential bidders after Total went hostile Natural Gas Infrastructure Available. with its offer. OPERATED & NonOp WI FOR SALE 49 On March 9, Savanna’s board approved Western’s offer of 0.85 of a Western share for Comb Est. Net Production: 49 BOED BOED each Savanna share. Western added $0.21 PV10 Value: $11,600,000 in cash for each Savanna share less than TES offer gives Savanna shareholders Total Proved Reserves: 983 MBOE CALL 33% ownership of combined company. ORIGINALLY Q4 2016 SALE PLS FOR a week later, raising the purchase price by CONTACT AGENT FOR UPDATE INFO 10% to $586.3 million. Savanna said that in addition to the greater ownership the Western PP 11101 deal provided Savanna’s shareholders, it also presented better synergies, as the market cap of Savanna-Western would be correlated solely to drilling, well servicing and related rentals, ALBERTA ROYALTIES whereas TES-Savanna would be a mixture of businesses that are not as closely related. 537-Wells. 221,400-Acres. ~345 Sections. CENTRAL & SOUTHERN ALBERTA TES noted in its blistering response to the deal that it confirmed with the Savanna 255 Potential Well Locations. RR shareholders who had entered into lock-up agreements that they considered the Western North Fee Lands Rights: Surface To -- deal to be inferior to the TES offer. TES said many independent shareholders planned to -- Base Cretaceaous & Any Zone Below tender their Savanna shares to TES. It had already locked up 43.5% of Savanna shares by South Fee Lands Rights: Surface - Base 5% NET ROYALTY INTEREST ~270 March 21, enough to block the deal. Savanna shareholders have until “Savanna reportedly only has the Current Production: ~267 BOED BOED April 7 to vote on TES offer. Cum Production: 1,600 MMBO & 2.4 TCF support of corporate insiders...and the Est 2016 Net Revenue: $3,392,000 Alberta Investment Management Corp., which only recently became a shareholder ORIGINAL OFFERS DUE LATE AUG 2015 of Savanna when it participated in a highly dilutive refinancing completed by Savanna CONTACT AGENT - POST BID STATUS RR 13397 at $1.45 per share in December 2016 and became Savanna’s largest lender by refinancing Savanna's significant debt,” TES said January 2, 2015 • Volume 04, No. 16 EYREMORE AREA. T16. on March 21. TES said shareholders preferred its OilfieldServiceS Serving the marketplace with news, analysis and business opportunities 17-Wellbores. ~5,792-Gross Acres. PP Assessing the service sector damage Technip spies other deals bid because of “a 21-year track record of providing Prognosticators parse impact of crude plunge on services after withdrawing CGG offer With crude now down about 50% from its summer highs and E&Ps slashing capex Technip has formally withdrawn 2-Operated Wells. left and right, some sense of the impact on the service sector is starting to come to light. efforts to take out fellow French seismic Fortunately, with ongoing projects unlikely to have their plugs pulled, there is still leader CGG following the rebuffing of its shareholders with industry-leading returns” probably a month or two of “full steam ahead, ” but some time next quarter activity an unsolicited $1.83 billion cash bid decreases shouldOilfieldServices begin to be more heavily felt, and it is worthwhile to examine who forMarch the company by 23 Varying Working Interests & GORR’s NONOP is best and worst positioned, how large the damage is likely to be, and how long a Technip. The offshore trough could last. E&C leader said that PacWest sees frac demand & pricing As for fracking, down 8% next year. following CGG’s refusal, Technip compared with Savanna and Western’s “consistent PacWest Consulting recently did a deep proposed a number of alternate options Q2 2016 Net Production: 10.8 BOED dive conference call on its expectations, and the firm anticipates an 8% demand (as to a tender offer, but said these efforts measuredTotal by hp) and priceEnergy cut next year in US land. looks The drop represents ato 12% were US similarly unfruitful.as itIn a separate decline in the number of horizontal wells fracked, offset somewhat by the continued CGG deal dead in water; company shift toward more sand, stage-count and HP-intensive fracs. That said, frac stages are cited opportunism by Technip. CONTACT SELLER FOR MORE INFO underperformance.” Neither Savanna nor Western still expected to decrease 6%. Continues On Pg 8 GEwaits guides down for oilpatch higher efforts in pivotal prices.2015 statement, CGG said that none of the proposed options created value for the General Electric is positioning to weather the downcycle with stoicism while company, and The Financial Times picking up new business, and businesses, along the way. GE is calling 2015 a “pivot” reported that board members viewed the PP 13717RR pays dividends, while TES does. year, as it digests the massive ~$15 billion acquisition of Alstom’s power assets offer as opportunistic in light of lower oil (closure in Q2), raises proceeds from non-industrial, non-core asset sales and cuts prices. Regardless, CGG asserted it was costs to mitigate the impact of cheaper oil. GE anticipates industrial profits in position to weather current difficult up 10% or more next year, but Oil & Gas segment sales & profits market conditions. Continues On Pg 12 as for oil and gas specifically, projected down 0-5% next year. while the division saw $4.9 billion in orders in Q3, it is already seeing headwinds. GE cut its growth outlook from high FEATURED DEALS single- to low double-digit growth down to mid-single digit expectations. CEO Jeff For general inquiries, email [email protected] Access PLS’ Immelt calledarchive crude pricing issues a short term for industry challenge. previous The company now TUSCALOOSA A&D DRILLING PROJECTnews ~20,000-Contiguous Gross Acres. hopes to keep oil and gas profits and revenues fairly flat through cost controls, although MAJORITY IN PIKE CO., MISSISSIPPI acknowledging that they very well may slide as much as 5%, particularly under capex TUSCALOOSA MARINE SHALE freeze scenarios. Its exposure to the space is more geared toward production and less Also Tangipahoa & St. Helena Ph., LA DV than peers on more volatile onshore unconventionals. Continues On Pg 6 169-Drilling Locations. 80-Acre Spacing. SEEKING JV PARTNERSHIP; 75% NRI TMS 2-D Seismic Available PLAY Canadian service firms give signs of things to come Area EURs: 600-800 MBO/Well In an early indicator of where service capex budgets are headed in the Lower 48 as Leases Expiring in 2018-2019 they are announced in coming months, Canadian service firms have been announcing DV 3395L drastically reduced 2015 spending plans and newbuild construction halts in anticipation ALASKA ROYALTY ACREAGE of lower producer cash flows. Many of these firms also have US operations, for 15,930-Gross/Net Acres. even better visibility on things to come. Number one Canadian driller Precision UPPER COOK INLET BASIN Drilling cut next year’s budget KITCHEN LIGHTS UNIT (N. BLOCK) RR Precision cut its 2015 budget 44% to Miocene Tyonek & Oligocene Hemlock 44% to C$493 million from 2014’s C$885 C$493 million from 2014’s C$885 million. million and idled its new rig construction Deep Sands: 11,000-16,500 Ft. Multi Pay Intervals Present program “until we see an improved commodity price environment and rising customer ~4.45% ORRI In Leases. newbuild demand,” said CEO Kevin Neveu. The 2014 plan is also being cut slightly Offset Well Tested Over 5,000 BOPD ORRI from a prior C$908 million. Precision will complete 16 currently under construction rigs, -- From Tyonek Deep Channel Sands. 15 headed for the US and one for Kuwait, but is planning no further deliveries next year. Estimated Project Reserves: 89 MMBO 3rd Party Reserve Report Available. Precision is trimming excess fat for leaner times as well, announcing it has sold Continued Development by Furie. its US coiled tubing assets for C$44 million cash to an undisclosed buyer. As of YE13, CALL SELLER FOR DETAILS Precision’s C/T fleet consisted of eight units in the Marcellus and Bakken shales, and RR 5100 Peters & Co. believes the price tag represented replacement cost. Continues On Pg 10 All Standard Disclaimers & Seller Rights Apply. CanadianAcquirer 8 April 6, 2017

CENTRAL ALBERTA CENTRAL ALBERTA EAST ALBERTA CANADA PROPERTY PACKAGE 6 CENTRAL ALBERTA SWD SALE HARMATTAN EAST T32. 21,000-Gross Hectares. 10-Wells. 1-SWD. 1-Injection Well. 5-Acres. 1-Producing Well. 4-Non-Unit Wells. ALBERTA PP FT. MCMURRAY AREA. Upper & Lower Viking Formation. PP BIRCH HILLS WEST. T75-81. Tank Farm Site & Disposal Well. SWD Oil & Natural Gas Non-Unit Wells. Peace River Arch & Wabamun Formations. 145 Two 750 Barrel Capacity Skim Oil Tanks Horizontal Well Potential. OPERATED & NonOP WI FOR SALE BOED Potential Change To Class 1B Site Non-Operated WI FOR SALE 100 Total Net Production: 145 BOED SEEKING JV PARTNER OR SALE Total Net Production: 100 BOEPD BOED Proved Probable Reserves: 1,007 MBOE Tank Capacity: 1,000 Barrels Storage SWD Total Income Q4 2015: $170,000 CONTACT AGENT - POST BID STATUS Major Operators In Surrounding Areas Total Proved Reserves: 514 MMBOE PP 12206 Revenues Generated From Skim Oil Total Proved Plus Probable: 1,229 MMBOE SAGD Gearing Up For New Pipeline. ORIGINALLY Q2 2016 SALE DEALS CENTRAL ALBERTA ASSET SALE TurnKey Opportunity With Minimal Investment CONTACT AGENT FOR UPDATE FOR 11-Units. 327-Sections. ~210,000 Acres. CONTACT AGENT FOR UPDATE PP 11224 SALE SWAN HILL AREA SWD 13044 BEAVERHILL LAKE FORMATION PP VERMILION. T50. Low Risk - Impactful Opportunites KAYBOB. T62-65. 33-Active Wells. 6-SWD. 1-Suspended. OPERATED WI AVAILABLE 50-Sections. 1-Producing Hz Well. Sparky Formation. PP Current Production: 13,000 BOED 13,000 Duvernay Rights. PP Additional Upside P&NG TBO Mannville. 12-Mn Avg Operating Income: $4,166,666 BOED Swap & Farmout Proposals Considered Production To Date >95% Oil. 50 Total 2P Reserves: 74.8 MMBOE (76% Oil) 100% OPERATED WI FOR SALE ~50 66.66% OPERATED WI AVAILABLE BOED Total 2P Reserves PV10: $951,000,000 Current Production: 50 BOED BOED Net Production: ~50 BOED POST BID STATUS ORIGINALLY Q4 2016 SALE Total Cumm’d Production: ~3.46 MMBOE CONTACT AGENT FORE MORE INFO CONTACT AGENT FOR UPDATE Asset Has LLR of ~0.9. PP 13542 PP 11001 PP 11120DV

CENTRAL ALBERTA ASSET SALE NITON / MCLEOD AREA T54-56. WESTERN ALBERTA PROPERTIES ~37,458-Net Acres. 1-Producing Property. 28,064-Net Acres. 2-Hz Wells Drilled. MICHICHI & BANFF AREAS Production From Cardium, Wilrich-- VALHALLA & PROGRESS AREA. Proven Light Oil Opportunity PP --And Lower Mannville Formations. PP Production From Montney/Doig Resource. PP 71 Potential Locations Identified. OPERATED WI FOR SALE Middle & Upper Montney, Basal Doig, --- 3D Seismic & Geotechnical Data Available Recent Net Oct 2016 Prod: 195 BOED --And Upper Charlie Lake Formations. Avg ~97% OPERATED WI AVAILABLE ~820 Recent Net Operating Income: $90,000/Mn 195 >80 Horizontal Well Potential. ~255 Q3 2016 Production: ~820 BOED BOED Est, Net PV10 Value: $26,200,000 BOED WORKING INTEREST FOR SALE BOPD Production Is 57% Liquids. Total Proved Reserves: 3,208 MBOE Net Production: 256 BOPD Total P+P Reserves: 7,606 MBOE Proved Plus Probable: 5,195 MBOE 2016 Net Operating Income: $150,000/Mn Total P+P PV10: $72,200,000 CALL CONTACT AGENT FOR UPDATE Progress Total Proved: 1,410 MBOE CONTACT AGENT FOR MORE INFO PLS FOR PP 11275DV Progress Total Plus Probable: 3,665 MBOE PP 13621DV INFO BUYERS! NO CONTACT AGENT FOR UPDATE PARKLAND. T52. COMMISSIONS PP 13032DV CENTRAL ALBERTA ASSET SALE 7-Oil Wells. 1-SWD. 2-Shut In. 47,616-Gross Acres. PEMBINA AREA - 5.5 Sections WEST ALBERTA KAYBOB SOUTH, VIKING-KINSELLA Mannville Formation. 1,800 Meters. PP & WASKAHIGAN AREAS. PP Wells Completed In Ostracod Formation. WESTERN ALBERTA PROPERTY Cardium, Glaucontice, Mannville & CBM Potential On Shut In Wells. 5-Key Areas. Montney Zones. 100% OPERATED WI FOR SALE MANNVILLE PROGRESS/VALHALLA, SPIRIT RIVER, High Working Interest For Sale 47,600 Net Production: ~30 BOPD & 200 MCFD POUCE COUPE, BONANZA & JOSEPHINE PP Febraury 2017 Production: 628 BOPD GROSS Net Cash Flow: ~$80,000/Month Doig, Charlie Lake, Montney, Halfway & 2017 Net Operating Income: $11 MM ACRES Prefers Trade For NonOp AB/SK Property. Boundary Lake Upside 190 Proved Reserves: 2,481 MBOE CONTACT SELLER FOR DETAILS \Varying Working Interest Available BOED CONTACT ADVISOR FOR MORE INFO PP 12899DV Aggregate Production: 190 BOED PP 13009 Expected 2017 Income: ~$123,167/Month EAST ALBERTA Total Proved Reserves: 787 MBOE CENTRAL ALBERTA PROPERTY Total Proved PV10: $6,942,000 5-HZ Producers. 6-InActive. 25,000+ Acres. DONALDA AREA. T41-42. CONTACT AGENT FOR UPDATE HUSSAR/ROSEBUD AREA 2-Wells. 4,640-Gross Acres. PP PP 13658DV Pekisko Formation. PP Production From Belly River Proprietary 3D Seismic Data Targets: Viking & Belly River BELLY 100% OPERATED WI AVAILABLE 87 3.729746% WI In Unit RIVER Net Production: ~87 BOED BOED 16.6-33.33% WI In Non-Unit The industry’s Net Operating Income: ~$47,500/Month Significant 3rd Party Revenue From Unit. only global multiple CONTACT AGENT FOR STATUS CONTACT OWNER FOR DETAILS listing service PP 11727DV PP 13375 www.plsx.ca/listings Find more listings at No commission! List today, call 403-294-1906 Volume 26, No. 05 9 A&D

Oilfield Services Trican buys Canyon Services Group Continued From Pg 1 Mullen buoys OFS segment Most of Canyon’s 2016 revenue of $239 million (versus $403 million in 2015) via Envolve purchase was sourced from Alberta (42%) and British Columbia (40%), with the Deep Basin generating 85% of Canyon’s revenue. Saskatchewan operations generated 18% Mullen Group Ltd. acquired of its revenue last year. Likewise, Trican’s presence spans Envolve Energy Services Corp., a the Western Canadian Sedimentary Basin, with Deep Basin, private well disposal company based in Montney and Duvernay activity generating 70-75% of its 2016 revenue. Grand Prairie, Alberta, expanding its Trican’s current Canadian pressure pumping fleet consists of 422,000 fracturing oilfield services segment hhp, 55 cementing units and 19 coil units. Canyon’s fleet at YE16 consisted of and its presence in Western 256,400 hhp and it expects that to rise to 261,900 by June 30 based on expected Canada’s key resource plays, increased demand in the Montney and Duvernay plays. including the Montney, Duvernay and Canyon pumped 368,581 tonnes of proppant in 2016, only 12% lower than Deep Basin. Mullen already owned the 420,171 tonnes pumped in pre-downturn 2014. But the decline in commodity 37.9% of Evolve prior to the acquisition. prices significantly affected its prices, “This acquisition will expand our footprint Canyon to deploy 11 retrofitted High with pressure pumping equipment into what is recognized by many as one of Spec QEM 3000 fracking pumps. prices for fracking services down more the best resource plays in North America than 60% last year from average 2014 levels. Prices began improving in Q4 as and more importantly it will provide our oil prices recovered. In the first two months of 1Q17, Canyon pumped ~120,000 organization with a new growth platform,” tonnes of proppant and expects Q1 average pressure pumping fracking prices to be Mullen CEO Murray K. Mullen said. 10-15% higher than 4Q16 levels. Mullen’s 2 segments are Trucking/ Trican expects to achieve ~$20 million in annual pre-tax synergies upon the Logistics and Oilfield Services. expected completion of the integration Pricing for Canyon’s services have been in 2018 by creating additional leverage Envolve 1, which is Envolve’s well improving since the fourth quarter. on the combined companyʼs fixed cost disposal facility south of Grand Prairie, structure and optimizing operational facilities. With a combined market cap of $1.4 commenced operations in 2015 and is billion, the acquisition creates one of the largest Canadian oilfield service providers. capable of handling more than 1,000 "Trican and Canyon have similar businesses cubic meters of fluid per day. Mullen and shared values, and we are committed to January 15, 2015 • Volume 06, No. 01 CanadianCapital underscored how Envolveʼs “New Serving the marketplace with news, analysis and business opportunities

driving a successful integration," Canyon CEO Canadian Natural Resources cuts capex by $2.4 billion Eagle Energy Trust becomes Oil sands player Canadian Natural Resources is the latest producer to revisit its a Canadian asset holder Build Strategy” in designing, building capital spending plan for 2015, cutting it back by $2.4 billion to $6.2 billion. That’s Eagle Energy Trust unitholders down 30% from the $8.6 billion budget it laid out in November 2014 and about half have approved a special resolution to the $12 billion it expected to spend in 2014. The bulk of the reductions amend the investment restrictions in Brad Fedora said. will come via reduced drilling and related facility capital for its North Eagle's trust indenture, enabling America andCanadianCapital International conventional it toMar. invest in energy assets1 Will defer $470 million in spending and commissioning new well disposal operations. The company will also defer at Kirby North Phase 1 project. in Canada. Eagle had been $470 million in spending at its Kirby previously been limited to investing North Phase 1 in situ oil sands project, cutting spending by 82% to $105 million from on non-Canadian assets—the company RBC Capital Markets and Scotiabank are its previous forecast of $575 million. The reduced budget wasn’t a complete surprise; currently has production of 1,900 boepd when it released the original budget the company warned that it was prepared to cut from properties in Texas and Oklahoma. $2.0 billion from that if conditions warranted. CNRL said the reduced spending would The changes won’t have any impact facilities mitigates the risk associated Tricanallow it to continue its dividendWell unchanged. Services takes CFO Corey Bieber told the Globe and Mail he did not know when spending at To be taxed at rate other E&P firms pay, not at prior 34% on distributions. Trican’s financial advisors while Peters & Co. is Kirby North might be restored. Continues On Pg 6 Crescent Point banking on service cost & efficiency savings on its US operations or the taxes on $50Half of oil hedgedmillion at US$90/bbl for 2015 loss in 2016.distributions from those operations; the with legacy based well disposal locations. company’s Canadian investments will be Although Crescent Point Energy is setting its capital budget for 2015 about 28% lower than 2014, the company expects the slimmed down budget to deliver 9% YOY structured so that its Canadian operations production growth to 152,500 boepd. The company set its budget for the year at $1.45 will be taxed in the same manner as other advising Canyon. Canadian energy companies. million, down 28% from the $2.0 billion forecast for 2014. Viewfield Bakken & Shaunavon plays Eagle wasted no time taking advantage Mullen expects Envolve 1 will to get nearly half of spending. of the change, signing a deal with Spyglass The budget assumes an initial 10% reduction in service costs. Crescent Point expects to see even Resources Corp. to buy a 50% non-op greater cost reductions if low prices persist. The company is looking at ways to improve interest in producing properties under its operational efficiency and is working on a number of drilling and completion waterflood in the Dixonville Montney C oil technologies that could cut costs even further. pool in north central Alberta, paying $100 generate annual revenue of $8.0 million, “When prices fell dramatically in 2008 to 2009, we were able to realize a 30% million. The acquisition adds 1,250 boepd reduction in our Bakken drilling and completions costs,” said CEO Scott Saxberg. of low-decline production. Cont’s On Pg 10 “We'll be working hard with our service providers and fully expect to see rates come down even more than they already have.” Continues On Pg 8 FEATURED DEALS a ~25% return on capital employed Trican’s Canadian Fleet Set To Grow Producers banking on service company savings ALBERTA PROPERTIES SALE 5-Non-Core Properties As producers scale back their capital spending plans in the wake of falling oil CENTRAL & WESTERN ALBERTA PP prices, many are looking to the service sector to help them prop up their bottom lines. Abee, Highvale, Kakut, Majeau & Morinville Crescent Point Energy is already factoring a 10% reduction in service costs into its Up to 100% OPERATED WI FOR SALE 5.7 Net Production: ~400 BOED (82% Gas) MMCFED 2015 budget and will be pushing for more if prices remain low. Others are expected Avg Net Operating Income: ~$189,166/Mo immediately accretive to Mullen. The to approach their capital CALL AGENT FOR MORE INFO Canadian HP GrowHalf of producers expectth drilling budgets with the same mindset. PP 14403DV & completion costs to fall 10% in 2015. • Current Canadian fleet According to a survey con- ducted by Barclays, capital spending in the US and Canada is expected to fall by as CANADIAN JOINT VENTURE 500,000 1-Prospect. 43,000-Acres. 67-Sq Miles. much as 30% from last year to $138.1 billion. In turn, about half of producers expect MAGDALEN BASIN. GULF OF ST LAWRENCE DV acquisition also provides Mullen with a drilling and completion costs to fall 10% in 2015, including in areas such as pressure 80-km West of SW Tip of Newfoundland. pumping, drilling fluids and directional drilling. And while producers may see the Water Depth 470 m. Drill Depth 2,500 m. service savings as a slight respite from the decline in oil prices, the news is doubly >1,000 km 2D Defines FourWay Closure. MAGDALEN • 422,000 fracturing HP 450,000 disheartening for those service providers. Not only are they seeing declines in their 100% OPERATED WI; JOINT VENTURE Total Resource Potential: 5.0 BBO or -- own businesses, they’re being asked to take less for the services they do provide. - 7.0 TCF Carboniferous Clastic Targets. new growth platform that it will harness Service companies are already feeling the impact. Continues On Pg 13 CALL AGENT FOR UPDATE 400,000 DV 15009 • 55 Cementing units by funding additional facilities built per 350,000 the New Build Strategy. The company • 38 N2 Pumpers 300,000 250,000 expects each new facility will generate • 19 Acid Units similar margins and ROCE as Envolve 1. 200,000 • 16 Coil Units 150,000 “As drilling activity recovers from the latest 100,000 downturn, additional strategically located • Approximately 50,000 0 disposal well facilities will undoubtedly • 40% of fracturing capacity parked 2008 2009 20102011 2012 2013 2014 2015 2016* be required,” CEO Mullen said. • 50% of other services parked * Anticipated HP at year-end based on approved Mullen said the recovery in oilfield budgets, which are subject to change activity that started in Q4 and the strength • Equipment not scavenged • Looking to activate parked of its balance sheet supports more M&A • Estimate $3.5 million Capex to equipment in 2017 this year. “Weʼre going to be active activate parked fracturing equipment on the acquisition front in 2017, and • $50,000 Capex / truck to activate we think that will help accelerate our parked cement equipment growth,” Mullen said. Source: Trican March 1 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ archive for previous A&D news CanadianAcquirer 10 April 6, 2017

NORTHERN ALBERTA SOUTHERN ALBERTA SOUTHERN ALBERTA WESTERN CANADA SALE SUB PKG 1 ALDERSON WEST AREA. T15. QUEENSTOWN. T16-21. 4-Producing Areas. 1-Gas Unit. 1,280-Gross Acres. PP 10-Wells. 47.5-Sections. PEMBINA, REDWATER, NORTHWEST- Production From Glauconitic Sands Mannville Production. --NORTH CENTRAL ALBERTA PP ~9.4% NonOperated WI AVAILABLE GLAUCONITIC Additional Upside In The Ellerslie, Nisku- PP Cardium, Viking Light Oil, Montney And- Producing Unit. --And Pekisko/Shunda Formations. --Horn River Formations. CONTACT OWNER FOR DETAILS OPERATED WI & ROYALTY FOR SALE HZ Drilling Inventory Of Extension And- PP 13606 Current Production: 100 BOED 100 -Infill Wells, Shallow Decline Gas Prod. WI FOR Net Asset Value: $5,527,269 BOED WORKING INTEREST FOR SALE SALE SOUTHERN ALBERTA SALE Proved PV10 Value: $3,459,000 Pembina Production: ~2,730 BOED 2-Key Areas. PP Total Proved Reserves: 467 MBOE Redwater Production: ~2,370 BOED WILSON CREEK & BUCK LAKE AREAS Proved Plus Probable: 698 MBOE DEALS North Central Production: ~4,340 BOED CALL ORIGINALLY Q4 2016 SALE FOR Glauconitic & Cardium Formations SALE Northwest Production: ~10,880 BOED PLS FOR CONTACT AGENT FOR UPDATE INFO October/November 2016: 102 BOED ~100 CONTACT AGENT - POST BID STATUS Current Operating Cash Flow: $47,083/Mn BOED PP 11118RR PP 12071 2P Reserves: 829 MBOE Total PV10: $7,023,000 SOUTHEAST ALBERTA ASSET SALE ALBERTA RECEIVERSHIP PROCESS AGENT WANTS OFFERS APR 27, 2017 7-Total Wells. 640-Acres. 17-Key Areas. 259,136-Gross Acres. PP 13046 CRESSFORD AREA. NORTHWEST ALBERTA AREAS. CO Producing From Mannville Pool PP Low Decline Oil & Gas Development WESTERN CANADA SALE SUB PKG 3 Rights From Surface To Base Of Mannville Opportunties. 2-Producing Areas. 6 UnBooked Drilling Locations. ~85% Working Interest For Sale ~1,200 TABER AND HUSSAR ALBERTA PP All Wells Flow-Lined To Proration Battery Dec 2016 Production: 1,223 BOPD BOPED Majority Of Lands Are HBP 100% OPERATED WI AVAILABLE MANNVILLE 2016 Net Operating Income: $1.4 MM Large Contiguous Land Position. Current Production: 20 BOPD & 80 MCFD Proved Reserves: 3,542 MBOE Banff And Mannville Oil Objectives. ~7,900 PDP Reserves: 107 MBO & 225 MMCF 2P Reserves: 4,991 MBOE Shallow Decline Prod Depths: 800-1,000m BOED PDP PV10: $2,814,000 AGENT WANTS OFFER APRIL 20, 2017 WORKING INTEREST FOR SALE Access To IPL Hamilton Lake Pipeline & CO 13037PP Taber Production: ~7,740 BOED Throne Truck Terminal. Hussar Production: ~7,970 BOED CONTACT AGENT FOR MORE INFO NORTHWEST ALBERTA ASSETS CONTACT AGENT - POST BID STATUS PP 13272DV 145,924-Gross Acres. 115,151-Net Acres. PP 12073 DEEP BASIN, PEACE RIVER ARCH & MULTIPLE ALBERTA WABASCA AREAS. PP ALBERTA NON-CORE PROPERTIES 83-Horizontal Development & Infill Drilling. 2-Producing Properties. ALBERTA CORPORATE DIVESTITURE Waterflood Upside Targeting Light Oil. CHIN COULEE & CLARESHOLM PP 3-Producing Wells. 4-NonProducing Wells. Net Production: 2,618 BOED (56% Liquids) 2,490 Sawtooth & Barons Sand Formations. HARMATTAN, PEMBINA, LEDUC--- CO Total Proved Reserves: 6,412 MBOE BOED 100% WORKING INTEREST FOR SALE --- AND RED EARTH AREAS. Probable Reserves: 9,760 MBOE Comb. Production: 61 BOED ~61 Cardium, Mannville, Nisku And---- NPV10: $58,295,000 Chin Coulee Net Value: $1,800,000 BOED --Slave Point Formations. ~34 ORIGINALLY Q3 2016 SALE Claresholm Net Value: $277,372 OPERATED & NONOP WI FOR SALE BOED CONTACT AGENT - POST BID STATUS Chin Coulee Total Proved: 118 MBOE Recent Net Production: 34 BOED PP 13072DV Claresholm Total Proved: 38 MBOE Deemed Net Asset Value: $321,137 CONTACT AGENT FOR UPDATE CONTACT AGENT FOR UPDATE SOUTHERN ALBERTA PP 20100DV CO 29901PP ALBERTA STRATEGIC ALTERNATIVES GADSBY. T37. ALBERTA PROPERTY SALE >22,000 Net Acres. 35+ Net Sections. 2-ShutIn Wells. 1,280-Acres. 6-Producing Properties. HARMATTAN & CROSSFIELD AREAS Viking. ~3,700 Ft. PP GARRINGTON, VIKING, BUCK LAKE-- SIGNIFICANT UPSIDE POTENTIAL PP Mannville. 4,600 Ft. VIKING --PEMBINA, SKARO & MEYER LAKE PP Viking Light Oil Production in Harmattan. 100% OPERATED WI AVAILABLE Glauconitic, Ellerslie, Elkton, Cardium-- Viking C, D & E Production in Crossfield. Currently ShutIn Due To Prices. --And Other Formations. Numerous HZ Viking Locations Identified. >250 PP 11461DV BUYERS! NO OPERATED WI FOR SALE 440 ~63% OPERATED WI AVAILABLE BOED COMMISSIONS Recent Oct 2016 Production: 440 BOED BOED Total Production: 273 BOED HANNA. T24-T31. Monthly Net Operating Income: $250,000 Net Operating Income: ~$260,000/Month 21,050-Gross Acres. PP PV10 Value: $33,200,000 Total Proved Reserves: 1.4 MMBOE Formations: Second White Specks & -- Total Proved Reserves: 2,311 MBOE Net Proved PV10 Value: $27,461,000 -- Mannville MANNVILLE Total Proved Plus Probable: 3,976 MBOE Total 2P Reserves: 2.0 MMBOE Avg 22% Working Interest Available ORIGINALLY Q4 2016 SALE 2P PV10 Value: $37,056,000 Currently Producing. CONTACT AGENT FOR STATUS CONTACT AGENT FOR UPDATE CONTACT SELLER FOR MORE INFO PP 11126DV PP 13478CO PP 13597 More listings at plsx.ca/listings

Find more listings at No commission! List today, call 403-294-1906 Volume 26, No. 05 11 A&D What’s on the Market Midstream ■■ Canadian Natural Resources Tidewater gains NE BC footprint in $10 million deal Ltd. is marketing several central Alberta Tidewater Midstream and Infrastructure Ltd. expanded its Montney footprint into properties. In the Grimshaw area, CNRL northeast British Columbia in an all-cash $10 million deal with Predator Oil BC Ltd. is selling acreage with 18.75-100% Tidewater gains 40% WI in 30 MMcf/d sour, shallow-cut gas processing in the Parkland operated working interest, area, 1,000 acres of greenfield surface land in the Fort St. John area, and 100% WI in an 80- three active wells and km cross-border sales gas pipeline in the Cordova area. Tidewater also transfers to Predator 8,000 gross acres with ~2,500 net acres of undeveloped lands in the Hythe area of Alberta previously acquired production from the Montney, Gething from Delphi Energy Corp. for $12 million in October 2015. and Falher formations. The company The Parkland Gas Plant and the Fort St. John properties are located in a new is also marketing for either sale or farm core area for Tidewater. The assets are near numerous pipeline egress options out Cardium assets in the Niton area, for NGL and gas connectivity and offer access to rail, holding the potential to including operated 15-66% WI. And in become a major energy hub in Northeast British Columbia. The deal facilitates Tidewater’s northwest Alberta, CNRL is marketing objective to connect its Montney infrastructure/egress hub in the Pipestone area. 1.56-100% WI on 8,040 gross acres with The sales pipeline at Cordova is linked 28 producing wells in the Joarcam area, to the 140 MMcf/d Wildboy gas-processing Ten acquisitions announced or completed since April 2015 IPO. where production is from the Viking and facility (100% WI Predator), and connects Belly River. See PLS Listings Nos. PP to Westcoast Energy in NEBC and Nova Gas Transmission Ltd. in Alberta. As part of 13316, L 13351 and PP 13353. the deal, Predator has entered an agreement for gas processing at the Parkland Gas Plant ■■ Freehold Royalties Ltd. is selling with an area dedication for the life of the reserves and an agreement for transportation on its 0.9528% non-op WI on properties the sales pipeline with an area dedication for the life of the reserves. Tidewater estimates holding 414 boe/d (72% oil and NGLs) the NEBC acquisition will generate annualized EBITDA of $1.8-2.0 million. in central Alberta. The assets have current In a separate deal, Tidewater will acquire six tractors, seven NGL trailers and annualized cash flow of $4.1 million. three condensate trailers from Mach Energy Services for $3.5 million in cash. The The WI properties have been separated NGL trucking acquisition enhances the value of into a South Package, West Package, March 14, 2017 • Volume 10, No. 03 the recently announced fractionation facility at the Midstream intelligence Central Package and North Package. Serving the marketplace with news, analysis and business opportunities Trio proposes new 730-mile Epic pipeline from the Permian Welcome to the revamped Brazeau River Complex (BRC) gas plant in west- A new 730-mile pipeline could be coming to the Permian Basin. The Epic pipeline Midstream Intelligence will be able to send 440,000 bbl/d to Corpus Christi, Texas, starting in 1Q19. Planning “Midstream News” has become the Epic will be Castleton Commodities International, which made a $1.0 billion “Midstream Intelligence.” The new name Sayer Energy Advisors is assisting acquisition in East Texas a few months ago, San Antonio-based TexStar is more than a name change. We will focus Midstream Logistics and the report more on the North American Castleton bought $1.0B in East Texas central Alberta and NGL truck-out gas processing Dallas-based Ironwood midstream industry. We've redone the MidstreamIntelligenceacreage from Anadarko in November. Mar. 14 Midstream Energy. layout and added new The project includes at least four receipt points for crude oil and condensate in IN THIS elements. You will see a ISSUE Freehold in the process. See PLS Listing Texas including Orla, Pecos, Crane and Midland, which it will transport crude to the list of ongoing construction drop-off points in the Port of Corpus Christi area including an affiliate’s terminal. projects (PG. 2), an expanded Midstream facilities by providing further control of its The first open season for the 16-, 20-, 24- and 30-in. pipeline will continue until Market Movers table (PG. 12), a tracking April 15, and offer commitments for 200,000 bbl/d of the planned capacity. The of North American LNG projects and the Tidewaterexpected cost of the pipeline was not disclosed. MidstreamContinues On Pg 6 Alerian closes MLP Index (PG. 17). We greatly No. PP 13970DV. value your feedback. Please pass any Marathon receives $2.0B in opening asset dropdown to MPLX comments to [email protected]. operations. Tidewater estimates this acquisition to Marathon Petroleum's plan to dropdown assets to its MPLX MLP got underway Here's what you have to look forward in force with a $2.015 billion deal, with much larger dropdowns expected this year. to in this issue. In pipeline news, Castleton, $69MMIn exchange for the assets, MPLX bought is sending to Marathon $504 million deal in equity and TexStar financing. and Ironwood announced $1.511 billion in cash. The assets are expected to raise $250 million in plans to build a 730- EBITDA in 2017. mile 400,000 bbl/d generate annualized EBITDA of $900,000. MPLX is picking up 62 Marathon still exploring possible oil pipeline from the Permian Basin to dropdown of Speedway assets. light-product terminals with 24.0 MMbbl Corpus Christi (PG. 1). The open season of capacity; 73 tanks with 7.8 MMbbl of capacity; a crude oil truck unloading facility will commence April 15. Speaking of at Marathon's refinery in Canton, Ohio; and eight natural gas liquids storage caverns open seasons, Enable Midstream kicked in Woodhaven, Mich., with approximately 1.8 MMbbl of capacity. The dropdown also off a non-binding open season for projects included 604 miles of pipeline over 11 systems. that could add 600 MMcf/d of throughput MPLX recently issued $2.25 billion in unsecured senior notes, which it said help to western and southeast markets for fund the acquisitions. Continues On Pg 16 Anadarko Basin producers (PG. 3). Other top stories include WhiteWater LNG Supply Expected 2017-2020 From FID Projects Midstream beginning construction of the New LNG Supply By Project Start Date Agua Blanca line in the Delaware Basin 6 2016 Facilies 150 (PG. 3), TransCanada cut tolls 46% on Operaonal 2017 Progress its Canadian Mainline (PG. 4) and Dakota m m

nu 120 Access startup is imminent (PG. 5). nu an an r 4 In "Gas Processing" Canyon r

pe 90 pe s

s Midstream is expanding capacity in the

Tidewater’s NGL Connectivity Strategy nne

nne STACK (PG. 3), Sendero is building in to 60 to n

2 n the Permian (PG. 11), and Lone Star illio

For more LNG see our illio M 30 is adding a fractionator at Mont Bevieu NGL Connectivity Strategy LNG section on PG. 15-20. M (PG. 11). In Canada, Veresen announced a

0 Australia Pacific T1 Australia Pacific T2 Gladstone S Gorgon M Petronas FLNG S Gorgon T2 Gorgon T3 Ichthys T1 S Sengkang LN Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys T2 Prelude FLNG S Wheatstone T2 E Yamal T1 Cameron T2 Cameron T3 Corpus Chris T1 Freeport T1 Freeport T2 S Yamal T2 Corpus Chris T2 Freeport Train T3 Yamal T3 T Petronas FLNG 0 new project for a $715 million processing abine Pass T1 abine PassT2 abine Pass T3 abine Pass T4 abine Pass T5 lba Island angguh T3 alaysia LNG T9 complex in the Montney (PG. 10). A&D activity was highlighted by

G Marathon's $2.0 billion dropdown to 1 2 MPLX, the closing of the Enbridge/ 2016 2017 2018 2019 2020 Cumulave (Right hand axis) Spectra deal (PG. 9), Pembina's multi- u Own key NGL/gas infrastructure and u Opportunities§ ~146 million tons per annum of tonew FID’d acquireliquefacon producon coming top-tier online 2016-20 billion Duvernay buy (PG. 9), and § All LNG facilies due to start up in 2016 came online during the year Matador's Delaware JV. (PG. 9). Acquire Strategic gas plants with proximity to multiple midstreamSource: GasLog Partners assets Presentation via PLS docFinderin www.plsx.com/finderstrategic locationsSee PG. 13 for 2016 atearnings. Canadian All Standard Disclaimers & Seller Rights Apply. 1 Contracted transportation options, coupled with discounted valuations. Ongoing review of Infrastructure take-or-pay and/or reserve dedication new opportunities to further enhance the energy agreements NGL Connectivity Strategy

news & u Opportunities to invest organically to fill Optimize Through u Enable Tidewater to own a strategic gaps in existing network 2 Organic integrated value chain from well head u Significant opportunities within acquired analysis Investments to end market and/or tidewater assets to continue to generate incremental EBITDA at > 20% IRR

Coverage of Canadian A&D, u Have commenced construction of 10,000 bbl/d fractionation facility for $25-$27MM, E&P finance and pricing. generating $6-$7MM of annualized EBITDA in Q2 2017 Increase u Increase third party throughput and/or 3 u Relocation of existing acquired and idled PLS publishes hard-copy and electronic Capabilities of improve liquids capture / pricing of turbo expander Infrastructure NGLs for all related parties reports for the Canadian oil and gas u Commence construction of first NGL rail loading facility industry. Each report is designed for a u Focused on building out largescale Montneyinfrastructure and related egress specific market including: A&D (assets), 4 u Various logistics infrastructure E&P (prospects), energy finance and Enhance Logistics including rail, pipelines and trucking Network & Market u Improvecost structure and realized pricing product prices. Access u Various port and pipeline Infrastructure infrastructure to get us to export markets www.plsx.ca/reports Source: Tidewater March 1 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ archive for previous A&D news CanadianAcquirer 12 April 6, 2017

MULTIPLE ALBERTA SASKATCHEWAN MULTIPLE AREAS CANADA OPPORTUNITY BIENFAIT. T2-T3. ALBERTA & BRITISH COLUMBIA Multiple Producing Properties. 893-Gross Acres. PP 545,894-Gross Acres. PP VARIOUS AREAS OF ALBERTA Midale Formation. Montney, Mannville, Cardium, Viking -- Glauconitic Sandstone, Edmonton Sand- PP Avg 33% Working Interest Available MIDALE --Nisku, Keg River Oil & Other Formations. -Belly River, Horseshoe Canyon And-- CONTACT SELLER FOR MORE INFO 2D & 3D Seismic Database Available. ~9,600 --Other Various Formations. PP 13527 OPERATED WI & ROYALTIES FOR SALE BOED Joint Venture Drilling Upside Opportunities. 1,885 2015 Avg. Comb. Prod: 9,603 BOED WI FOR SALE OR FOR FARMOUT BOED CHAPLEAU LAKE. T13-T14. Comb. 2P Est. Reserves: 42,437 MMBOE Production: 1,885 BOED 9,752-Gross Acres. PP CONTACT AGENT - POST BID STATUS Total PV10 Value: $53,148,000 Red River Formation. PP 90667DV ORIGINALLY Q4 2016 SALE Avg 50% Working Interest Available RED RIVER CONTACT AGENT FOR STATUS UPDATE CONTACT SELLER FOR MORE INFO ALBERTA & BRITISH COLUMBIA PKG PP 11119FO PP 13476 2,340,000-Net Acres. MULTIPLE AREAS. 14-Key Fields. CO CANADA PROPERTY PACKAGE 7 SE SASKATCHEWAN ASSETS Plains & Foothills Dry Gas. 2-Properties. 2-Key Units. ~6,026-Net Acres Deep Basin Liquids-Rich Gas. ALBERTA. PP WEYBURN & MIDALE AREAS. Producing From 16-Unique Horizons. DAWSON T79 & PROGRESS T78 Marly & Vuggy Zones PP Avg 65-67% OPERATED WI 353 Bluesky & Gething Formations. SUB Potential Infill Drilling, CO2 & Waterflood Q1 2016 Avg Production: 353 MMCFED MMCFED OPERATED WI FOR SALE PACKAGE Expansion & Well Optimizations Additional Prod: 50 MMCFED (Behind Pipe) Progress Recent Net Prod: 21 BOED ~3-10% NonOperated WI Available ~1,200 2015 Avg Cash Flow: $12,500,000/Mn Proved Probable Reserves: 66 MBOE CALL Net Production: 1,202 BOPD BOPD Proved + Probable Reserves: 2.14 TCFE CONTACT AGENT - POST BID STATUS PLS FOR Exp 2017 Net Income: ~$1,191,666/Mn CONTACT AGENT FOR MORE INFO PP 12207 INFO 2016 Proven Reserves: 6,058 MBOE CO 13252PP 2016 2P Reserves: 8,402 MBOE DEALS CANADA PROPERTY SUB PACKAGE 9 CONTACT AGENT FOR UPDATE FOR ALBERTA & SASKATCHEWAN ASSETS 11-Properties. PP 13555DV SALE ~95-Total Sections. ALBERTA PP HARDY & RETLAW AREAS Bow Island, Little Bow, Coyote/Watts- SHACKLETON AREA. T21-22. BAKKEN FORMATION PP -Carbon, Trochu, Fenn West/Mikwan, 6,463-Gross Acres. 102-Wells. Glauconitic, Ostracod, Lower Mannville, Ewing Lake, Evi, Pouce Coupe, Mirage- SUB Milk River Natural Gas. PP Suburt, Belly River, Second White Specks -Gordondale & Fourth Areas. PACKAGE 99.2% OPERATED WI AVAILABLE & Ellerslie Formation Upside NonOperated Working Interest For Sale Recent Operating Income: $50,000/Mn ~2,778 98.5% OPERATED WI AVAILABLE ~235 Comb. Recent Net Prod: 66 BOED 2016 Proven Reserves: 10,697 MMCF MCFD Net Production: 236 BOED BOED Comb Proved Reserves: 503 MBOE 2016 2P Reserves: 14,210 MMCF Currently Cash Flow Positive. CONTACT AGENT - POST BID STATUS AGENT WANTS OFFERS APRIL 6, 2017 Total Proved Resveres: 482 MBOE PP 12209 PDP Resveres: 409 MBOE PP 13035 BUYERS! NO Total Proved PV10: $5,323,000 COMMISSIONS CANADA RECEIVERSHIP SALE BRITISH COLUMBIA ORIGINALLY Q4 2016 SALE Producing & Non-Producing Properties. CONTACT AGENT FOR UPDATE CENTRAL & SOUTHERN ALBERTA STODDART. T86. PP 13620DV Oil & Natural Gas Properties Producing-- PP >47,000-Acres. >60-Sections. From Big Valley/Banff, Bow Island --- Baldonnel & Montney Formations. PP CANADA NONCORE ASSETS SALE Ellerslie And Other Formations. Offset Crown Land Available. 132,910-Net Acres. OPERATED WI FOR SALE 225 Water Disposal Well & Facility. ~260 DEEP BASIN, PEACE RIVER ARCH & Recent Sept 2016 Production: 225 BOED BOED Seismic & Well Log Data Available. NORTHEAST BRITISH COLUMBIA PP Est Net PV10 Value: $11,700,000 100% OPERATED WI FOR SALE BOED Proven Formations: Cretaceous, Jurassic Total Proved Reserves: 827 MBOE Current Production: 141 BOED & Triassic Zones ORIGINALLY Q4 2016 SALE OOIP Reserves: 7-19 MMBO/ Section ~208 Net Sections Of Land CONTACT AGENT FOR UPDATE CONTACT AGENT - POST BID STATUS Avg ~46% WI AVAILABLE 1,715 PP 11261CO PP 11264SWD Current Prod: 1,715 BOED (85% Gas) BOED Total Proved Reserves: 3.6 MMBOE CANADA STRATEGIC ALTERNATIVES ALTARES & ATTACHIE AREAS Total Proved PV10: $13,400,000 9-Facilities. ~42-Net Sections. ~26,506-Net Acres. Established Infrastructure Access Through MULTIPLE AREAS ACROSS ALBERTA CO Montney Formation Potential CO Gathering Systems & Major Pipelines Montney & Deep Basin Facilities Upside In Doig & Gething CBM Formations CONTACT AGENT FOR UPDATE 10th Facility To Be Commissioned End 2016. COMPANY FOR SALE PP 13381 Assets Have Long Expected Lives. OFS Total Proved Reserves: 1,764 MBOE STRATEGIC OWNERSHIP & OPERATIONS Total Proved PV10: $154,000,000 ALTERNATIVES 12-Mn Operating Revenue: ~$646,916/Mn 2 Gas Plants, Transportation & Facilities The industry’s only CONTACT AGENT FOR MORE INFO CONTACT AGENT FOR UPDATE global multiple listing service CO 13151SV CO 13228L www.plsx.ca/listings Find more listings at No commission! List today, call 403-294-1906 Volume 26, No. 05 13 A&D People & Companies What's on the Market ■■ Activist investor Seymour Schulich Rife looking to divest Wilson Creek, Buck Lake assets holds 40 million shares of Birchcliff Rife Resources Ltd. is selling non-core properties at the Wilson Creek and Buck Energy after acquiring an additional 2.5 Lake areas of southern Alberta where current annual operating cash flow is $565,000. million shares on Production net to Rife has recently averaged 102 boe/d, comprised of 57 bbl/d of March 27, 500,000 NGLs and 270 Mcf/d. shares on April 3, and 2.0 million shares At Wilson Creek, Rife holds various Rife believes Buck Lake property a candidate for a future waterflood scheme. on April 6, increasing his stake in the non-operated working interests in three company to 15%. The move comes after sections of land on which it has five wells producing 62 boe/d (50% NGLs) net. In the Schulich bought another 26 million shares Buck Lake area, Rife holds various working interests in five sections of land on which of Pengrowth Energy in late February, six wells are producing 40 boe/d net (65% increasing his ownership to 80 million Nine horizontal drilling locations oil and NGLs). identified on Buck Lake properties. shares. The former mining executive led As of YE16, Trimble Engineering the fight last year against Suncor’s initial Associates estimates that the properties held 2P reserves of 464,000 bbl of oil and NGLs takeover offer Canadian Oil Sands that and 2.2 Bcf of natural gas, with an estimated net PV-10 of $7.0 million. Sayer Energy eventually went through for $6.6 billion. Advisors is assisting Rife with the sales process. See PLS Listing No. PP 13046. ■■ Ceiba Energy Services announced the resignation of Director Richard Lane Pengrowth sheds Montney assets in 2 deals Continued From Pg 1 effective March 22. He was Ceiba’s The company revised its 2017 guidance in light of the deal, with production of CEO from September 2016 to March 47,000-49,000 boe/d now expected, a downward revision of 3,100 boe/d. 13. Lane had been a director of the Funds flow from operations is now expected at $170 million versus $195 million company since July 2013 and also served in the original plan. Pengrowth will use a portion of the proceeds to prepay the as VP of CCS Midstream Services remaining outstanding $134 million of the 6.35% senior term notes that are scheduled Canada at CCS Corp. to mature on July 26. Following this prepayment, Pengrowth will have no outstanding ■■ Divergent Energy Services Corp. debt maturities in 2017 and its net debt as of May 31 will fall to $970 million. appointed Cameron Barton to its board of directors as a member of the audit Bernadet no, Groundbirch yes— committee. His 35-year career spans oil and Indications that Bernadet was on the chopping block were given in Pengrowth’s gas services and E&P; energy marketing 4Q16 conference call, when Evans said that “if somebody came to us and said, we and trading; gas distribution; electricity would like to buy this, we would certainly consider that.” The divested Bernadet assets encompass generation, transmission and No development work at Swan Hills distribution; international finance and 36.6 sections and 100% last year due to low prices. professional services. WI with no production, cash flow, or ■■ Enbridge is cutting about 1,000 jobs resources assigned to it in Pengrowth’s YE16 reserve report. They are contiguous following the close of its acquisition of with Pengrowth’s producing Groundbirch acreage, to which Evans said the company Spectra Energy. The combined company remains committed. “We continue to Two major operating areas at Swan be active in the Montney through our had a 17,000 workforce prior to the Hills: Judy Creek & Carson Creek. announced layoffs. The move was made Groundbirch assets, which are currently to address the “overlap in the combined producing and which have demonstrated excellent potential to provide long-term company’s organizational structure.” The growth in production and reserves for Pengrowth,” he said. $59 billion deal created North America’s In a Feb. 28 update, Pengrowth said it was planning to conduct 3D seismic and largest energy infrastructure company, initiate drilling at Bernadet next year. Pengrowth acquired the Bernadet assets 100% WI Bernadet property located which has $27 billion of secured growth ~125 km north of Groundbirch. projects and $48 billion of projects in November 2014 for $123.6 million in a under development. Crown land sale. It estimates the combined Groundbirch/Bernadet acreage holds ~$4.7 ■■ Saturn Oil + Gas named John Jeffrey billion of future development potential. and Scott Newman to the board. Jeffrey was Pengrowth’s Groundbirch property is located 40 km southwest of Fort St. John, appointed CEO of Saturn in November and British Columbia, and covers 13,855 gross (12,536 net) acres. The company has was the co-founder and CFO for Axiom average 90% WI in these lands and as of late February had 17 producing wells with Exploration Ltd. Newman is a director output of 11.4 MMcf/d. of Vela Resources Corp., a helium exploration and development company based in Saskatchewan. He has been COO Complete transaction services for sellers Helping clients market non-core assets since 1987. www.plsx.ca/advisory for Saturn since November 2016. For general inquiries, email [email protected] Access PLS’ archive for previous A&D news CanadianAcquirer 14 April 6, 2017 What's on the Market MULTIPLE AREAS Birchcliff shifts from Charlie Lake oil to Montney/Doig gas Birchcliff Energy is seeking buyers for its oil and gas properties and related CANADA NONCORE ASSET SALE assets on the Charlie Lake Oil Resource Play in the Peace River Arch area of Alberta. ~12 Oil & Natural Gas Properties. ALBERTA & BRITISH COLUMBIA PP The company is allocating no significant capital to these assets, instead focusing on the Aden/Lait, Manyberries, Brant, Majorville- continued growth of its Montney/Doig natural gas play in the Pouce Coupe area. “We -Cessford, Crossfield, Carstairs, Warburg- believe that a successful sale will allow us to become even more --Caroline & Boundary Lake Areas. geographically focused, reduce our cost structure even further ROYALTY, UNIT & NonOp WI FOR SALE >180 and become even more competitive in our Comb. Net Production: 186 BOED BOED Total Proved Reserves: 442 MBOE industry, while improving our balance Birchcliff has identified over 200 horizontal drilling locations at Worsley. CONTACT AGENT FOR STATUS sheet,” CEO Jeff Tonken said. PP 11171RR Birchcliff holds an average 86% WI on the marketed assets, located in the Worsley and Progress areas, encompassing 383,368.9 gross acres (329,866.6 net) and holding CANADA NON-CORE PROPERTY 2P reserves of 47.8 MMboe. Average 2017 production is 3,800 boe/d—56% light oil Non-Core Properties & Pipeline. ALBERTA & SASKATCHEWAN and NGLs and 44% natural gas. Producing & Non-Producing Properties. PP Plans to drill 32 Montney/Doig hz Most of Birchcliff’s Charlie Lake natural gas wells in 2017. 100% WI IN PIPELINE ALSO FOR SALE assets are located at Worsley, where OPERATED & NonOperated WI FOR SALE 152 it holds essentially 100% WI with operatorship and control of wells, pipelines and PDP Reserves: 320 MBOE BOED facilities. The company has drilled more than 100 wells at Worsley since it acquired Total Proved Reserves: 543 MBOE ORIGINALLY Q3 2016 SALE the assets in 2007, while 2P reserves have increased over 150% to 15.1 MMboe CALL AGENT FOR STATUS UPDATE CALL since that time. PP 11201G Montney/Doig producing regions: PLS FOR The company’s Pouce Coupe INFO Pouce Coupe, Gordondale, Elmworth. assets will receive $129.2 million of its WESTERN CANADA ASSETS $355 million capex, while $81.2 million will go to its new Gordondale assets acquired 73,326-Net Acres. ALBERTA & SASKATCHEWAN last July from Encana in a $625 million deal. The company is targeting 2017 average Producing From Mannville Group PP production of 70,000-74,000 boe/d (vs. a record 49,236 boe/d in 2016) and plans to drill Majority Of Acreage Undeveloped. a total of 46 Montney wells this year (12 oil, 34 gas) and tie in 10 wells drilled in 2016. 306 Drilling Locations Identified. Birchcliff is also selling its properties in the Valhalla and Progress areas in 400 Recompletion & Ractivation Locations 93% OPERATED WORKING INTEREST ~2,000 western Alberta. Birchcliff holds 100% WI in 20.75 contiguous sections of land Current Production: 2,063 BOED BOED at Valhalla, and it holds a high working interest in a significant land position at Est 2017 Cash Flow: $1,450,000/Month Progress, including 23.1 net sections Total Proved Reserves: 5,101 MBOE DEALS Birchcliff maintains 2017 production of land where it holds Montney rights. CONTACT AGENT FOR UPDATE guidance of 70,000-74,000 boe/d. FOR The company currently produces ~265 PP 13187DV SALE boe/d from its 33.6 net WI wells at Progress. At Valhalla, Birchcliff has drilled WESTERN CANADA PROPERTIES one vertical exploration well, which encountered multiple natural gas shows in the ~60-Net Wells. ~153-Sections. Montney, Basal Doig and Upper Charlie Lake formations. Birchcliff has identified ALBERTA & BRITISH COLUMBIA PP the potential to drill over 40 horizontal Montney wells and over 20 horizontal Basal Spirit River, Charlie Lake, Wabamun, Doig wells on its land to develop the Montney/Doig resource, which it estimates to Montney, Halfway, Gething, Paddy & Dunvegan Potential ~800 be ~2.4 Tcf of in place. See PLS Listing No. 13032DV. Varying Working Interests & Royalty Interest BOED Current Net Production: 814 BOED 100% Owned & Operated Infrastructure CONTACT AGENT FOR UPDATE PP 13304DV

Sell Your WESTERN CANADA SALE PACKAGE Deal Today 2-Key Areas. ALBERTA & BRITISH COLUMBIA PP 403-294-1906 INGA & MEEKWAP AREAS. Inga Property Currently Producing. Complete transaction Meekwap Property Is Restoration Project. 90-100% OPERATED WI AVAILABLE OPERATED services for sellers Current Production: 9 BOPD Helping clients market non-core Net Operating Income: $4,083/Month assets since 1987. ORIGINALLY Q4 2016 SALE CONTACT AGENT FOR UPDATE Call 713-650-1212 or email [email protected] www.plsx.com/advisory PP 13133

Find more A&D news at To learn more about PLS, call 403-294-1906 Volume 26, No. 05 15 A&D People & Companies What the Analysts are Saying About A&D ■■ Tamarack Valley Energy Morgan Stanley: Cenovus deal ‘makes sense’ appointed Ian Currie to its board of Cenovus’ $18 billion acquisition of Conoco’s oil sands and Deep Basin assets directors. He is currently CEO of Spur (PG. 1) was the Canadian producer’s biggest deal since it was separated from Encana Petroleum Ltd., a private oil and gas Corp. in 2009. The deal makes strategic sense for several reasons, noted one analyst, E&P company. Currie mainly that it gives Cenovus full control of the FCCL oil sands project and helps it previously served as achieve its long-term outlook. president and CEO of Spur Resources “Acquiring producing assets that are familiar and top-tier is a Ltd., from 2006 until its acquisition by much more welcome scenario for the market rather than accelerating spend to develop Tamarack in January 2017. That $407.5 new projects and have to wait several years before seeing cash flow,” Morgan Stanley million deal added a sizeable Viking analyst Benny Wong said in note cited by Bloomberg. —Morgan Stanley component to Tamarack’s Cardium- Cenovus Energy (CVE; US$11.21-March 31) focused portfolio. ■■ TransCanada Corp.’s COO Post-deal, Cenovus will become Canada’s largest thermal producer at 356,000 Alex Pourbaix is retiring, telling The bbl/d capacity with Foster Creek Phase G and Narrows Lake Phase A slated to add Financial Post that “it was time to try 50,000 bbl/d and 45,000 bbl/d of additional near-term respective some new opportunities.” The productive capacity. In addition, CVE is recharging COP’s Deep announcement was a surprise, Basin assets with three rigs planned this year and 10 in 2018 with expected growth of as he was regarded as the 40% to 170,000 boe/d through 2019. —Tudor, Pickering Holt & Co. likely successor to CEO Russ Girling ConocoPhillips (COP; US$45.95-March 29; Overweight; PT-US$62.00) after leading the company through Through the sale of its non-operated 50% WI in the FCCL JV and most of its the arduous process of securing US remaining Western Canada Deep Basin assets to Cenovus Energy, Conoco has approval for the Keystone XL, which US “in a single step…removed any residual concerns about its President Donald Trump finally green- balance sheet or its ability to execute its buyback program. lighted last month. “I have had a great As such, we think the event could be an important catalyst for shares...We think career at TRP and with KXL receiving the terms of the transaction imply that COP clearly recognized favorable value for its presidential permit it seemed like a the assets.” —Barclays good time to enter a new stage in my Pengrowth Energy (PGF; $1.45-March 23; Underweight; PT-$2.00) career,” Pourbaix told the paper. ■■ Trident Exploration appointed Pengrowth announced the sale of its Bernadet asset for proceeds of $92 million. three new executives. Mark Smith The NE British Columbia property includes 36.6 sections (100% WI) prospective for becomes COO, after previously holding the Montney, with no associated production/reserves. The deal implies executive roles with Burlington transaction metrics of $3,900/acre; this compares to recent transactions Resources Canada and Arcan in the $5,000/acre range, mindful that the comparable transactions include Resources Ltd, among other companies. partially developed lands with reserves/production. Note that Pengrowth acquired Jean-Pierre Buyze was named CFO, and Bernadet in early-2015 for $132 million, representing a $40 million loss. —Barclays most recently was Managing Director Penn West Petroleum (PWT; $2.19-March 15; Equal Weight; PT-$3.00) of UBS Securities Canada in Calgary Keeping some non-core assets. With respect to its ongoing disposition and holds extensive experience in M&A. program, Penn West has decided to retain certain Alberta lands, which may Trident’s new VP, Land is Ken Young, have potential in deeper Mannville horizons. These lands had been previously who most recently held management deemed non-core; anticipated proceeds from the disposition program are essentially roles at Enerplus Corp. unchanged at $75 million. —Barclays ■■ TSX-listed Zenith Energy Ltd. Torys: Starting to see ‘a lot of discussion of potential deals’ appointed Saadallah Al-Fathi as non- executive director of the company. He Even though the Canadian oil patch has already seen two big upstream deals previously served as head of OPEC’s this year, the pace and frequency of deals is still slower than many expected. Many Energy Studies Department and as companies are still in a “wait-and-see mode” concerning the trajectory of oil prices, advisor to several governments and focusing on their core areas. businesses regarding oil policy. Calgary- “It’s clear on the street here in Calgary that companies are focusing on being based Zenith has operations in Italy better in their core areas and focusing their capital on that core,” Torys LLP partner and Azerbaijan. Chris Christopher told The Edmonton Journal. “It takes time to make these deals, I think you’re starting to see – at least we are – a lot of discussion of potential Transactions Metrics and deals,” he added. —Torys LLP Comparables www.plsx.ca/ma

For general inquiries, email [email protected] Access PLS’ archive for previous A&D news “Opportunity is a reflection of information.”

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