A Growth-Oriented Oil and Gas Companyin the Alberta and BC Foothills

Certain information with respect to Ikkuma Resources (“Ikkuma” or the “Corporation”) included in this presentation constitutes forward-lookinginformation under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”,“believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project” or similar words suggesting future outcomes or statements regarding an outlook.Forward-looking information in this presentation may include, but is not limited to, potential flow rate from recently recompleted wells, the number ofde-risked, low risk drilling locations, the number of offset locations, the timing of future drilling operations, the potential future OPEX in the $4.25 - $4.50range, expected future well flow rates, the type and timing of expenditures for the remainder of 2016 and fiscal 2017, the estimated economic outcomeof new gas and oil wells and recompletions, Ikkuma’s commitment to spend within 2016 cash flow and Ikkuma’s future growth resulting from itsemerging light oil play.Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may proveto be incorrect. Although management believes that the expectations reflected in its forward-looking information are reasonable, undue reliance shouldnot be placed on forward-looking information because there can be no assurance that such expectations will prove to be correct. In addition to otherfactors and assumptions which may be identified in this presentation, assumptions have been made regarding and are implicit in, among other things,expectations and assumptions concerning the performance of existing wells and success obtained in drilling new wells, anticipated expenses, cash flowand capital expenditures and the application of regulatory and royalty regimes. Readers are cautioned that the foregoing list is not exhaustive of allfactors and assumptions which have been used.Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual resultscould differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated withthe oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect toexploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relatingto production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertaintiesresulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which couldcause actual results to differ materially from those anticipated by the proposed management and described in the forward-looking information. Theforward-looking information contained in this presentation is made as of the date hereof and management undertakes no obligation to update publiclyor revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securitieslaws. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement.This presentation contains the term “netbacks” which is not a term recognized under IFRS. This measure is used by management to help evaluatecorporate performance as well as to evaluate acquisitions. Management considers netbacks as a key measure as it demonstrates its profitability relativeto current commodity prices. Operating net backs are calculated by taking total revenues (net of realized hedging gains or losses) and subtractingroyalties, operating expenses and transportations costs on a per BOE basis.

BOE DisclosureThe term barrels of oil equivalent (“BOE”) may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel(6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip anddoes not represent a value equivalency at the wellhead. All BOE conversions in the report are derived from converting gas to oil in the ratio mix of sixthousand cubic feet of gas to one barrel of oil, which may be misleading as an indicator of value given that the values are based on the current price ofcrude oil and natural gas is significantly different from the energy equivalency of 6:1.In this presentation: (i) mcf means thousand cubic feet; (ii) mcf/d means thousand cubic feet per day (iii) mmcf means million cubic feet; (iv) mmcf/dmeans million cubic feet per day; (v) bbls means barrels; (vi) mbbls means thousand barrels; (vii) mmbbls means million barrels; (viii) bbls/d meansbarrels per day; (ix) bcf means billion cubic feet; (x) mboe means thousand barrels of oil equivalent; (xi) mmboe means million barrels of oil equivalentand (xii) boe/d means barrels of oil equivalent per day.

2

Future Drilling Locations

Unless otherwise specified, the information in this Corporate Presentation pertaining to future drilling locations or drilling inventories is based solely oninternal estimates made by management and such locations have not been reflected in any independent reserve or resource evaluations preparedpursuant to NI 51-101. Similarly, unless otherwise specified, the information in this Corporation Presentation pertaining to targeted reserve volumes fromfuture drilling is intended to indicate that in making its internal drilling decisions, the Corporation seeks to target drilling locations that, based onprevious drilling results and its own internal assessments, it believes will on average ultimately generate the indicated volumes. This CorporatePresentation discloses drilling locations which are unbooked locations and are internal estimates based on the Corporation’s prospective acreage and anassumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not haveattributed reserves or resources and have been identified by management as an estimation of multi-year drilling activities based on evaluation ofapplicable geologic, seismic, engineering, production and reserves information. There is no certainty that Ikkuma will drill all unbooked drilling locationsand if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on whichthe Corporation actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, oil and natural gas prices, costs, actualdrilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked bydrilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wellswhere management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled insuch locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production. Of the 38development locations shown on p.14, five are proved plus probable locations identified in the 2015YE Sproule Report.

Well Test Results

Certain well test results disclosed in this Corporate Presentation represent short-term results, which may not necessarily be indicative of long-term wellperformance or ultimate hydrocarbon recovery therefrom. Full pressure transient and well test interpretation analyses have not been completed and assuch the flow test results contained in this Corporate Presentation should be considered preliminary until such analyses have been completed.

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4

Strategy High growth, low decline , gas-weighted, oil upside, in conventional bypassed reservoirs

Focus Alberta and BC Foothills

Symbol TSX-V: "IKM"

Basic / F.D. Shares Outstanding 94.2 mm / 98.4 mm

Market Capitalization: diluted/undiluted (1) ~$75 mm / ~$79 mm

Net Debt (est. at Sept, 2016) $27 mm

Current Production (2) ~5,000-7,000 boe/d (98% gas-weighted)

2P Reserves (mmboe / NPV 10%) (3) 27.5 mmboe / $202 mm

Infrastructure 560 km pipelines; 9 processing facilities (ownership in 3 gas plants); est. value of $250 – 300 mm

Current Net Undeveloped / Net Developed Land ~159,917 / 63,947 acres

Tax Pools ~$205 mm

2P NPV10% estimate, undiluted/diluted (3) $2.15/$2.06

PDP NPV10% estimate, undiluted/diluted (3) $1.24/$1.18

Undiluted market Cap/NPV10% (PDP/2P) (1) 65% /39%

Insider Ownership, undiluted/diluted(4) ~16%/19%

(1) Based on $0.80/sh. No value given to land in NAV estimates.(2) Present variance is due to curtailments, shut-in production (in some cases for economic reasons). Approximately 1,000 boe/d, sour gas, remains shut in for economic reasons. (3) Reserves evaluation from the 2015YE Sproule Report; reserves are outlined later in this presentation.(4) Includes Royal Capital Management Corp.

5

Defensive Strategy in Persistent Low Commodity Price Environment Core asset with 10-15% annual decline. Sound balance sheet. Recompletion operations with demonstrably quick payout underpins reserves/production growth. Approximately 5,100 Boe/d (2016) and 3,800 Boe/d (2017) hedged at $3.06/Mcf and $2.86/Mcf (AECO).

Unique Skill Set and Growth Potential in an Area with Prolific Conventional Reservoirs Assembled a world class technical team with 150+ years of combined foothills operational experience. Identified 30 gas drill locations with potentially more than 30 MBoe/d unrisked adds. (1)

De-risking potentially transformational Oil Drilling Program with results expected to be available and released later in Q4, 2016.

YTD OPEX is $8 - $9/Boe and future reductions are anticipated. Sweet gas redirect within existing infrastructure will further decrease OPEX.

Undervalued Trading at 60% of PDP(1) and 35% of 2P(1) value (based on $0 value on midstream assets with an expected

replacement value of $250-350 mm). Estimated midstream value is ~8X present market cap.(2)

Top quartile cost efficiencies amongst a select list of Canadian producers.

Growth Existing production capacity is approximately 7,250 - 8,000 boe/d. Emerging oil play could be transformational and provide significant liquids growth.

(1) Based on Management estimates.(2) See later slide for a summary of present reserves; market cap value at $0.80/share.

6

Low decline, stacked reservoirs (Wilrich, Falher, Cadomin, Cadotte, Dunvegan, Cardium), containing oil and gas.

Identified multiyear drilling inventory for gas and potentially large (bypassed) oil pools.

Team was involved previously in building the asset; 9 facilities, incl. 4 gas plants, ~560 km pipelines.

Highly focused with numerous undeveloped stacked conventional structured reservoirs.

32%

20%

12%

11%

7%

2%

N.E. limit of Foothills Play

(1) Approximately 16% of total production is in southern Alberta Foothills.

Area production, as a percent of total (1)

IKM Trunk Pipeline

In the southern part of IKM’s asset base, there is at least 100 MMcf/d gas processing and transporting capability that could bring OPEX to $4.25-$4.50/BOE, thus becoming one of the lowest cost producers in the basin.

Potentially lower OPEX and low decline conventional reservoirs provides long term value in a volatile commodity environment. 560 km of operated pipelines gives Ikkuma several options to deliver gas to multiple processing points.

Ownership in 3 gas plants and optionality in at least 3 additional, underutilized gas processing facilities.

With increasing production, trunk line volumes may be managed more effectively.

EdsonHorseCopton (70% WI)Leland (39% WI)Unused capacity ~120 MMcf/d

ElmworthNarraway (7% WI)Unused capacity ~100 MMcf/d

IKM Pipeline Gas re-direct and sour gas shut-in will significantly reduce OPEX

7

8

Source: Averaged interpreted base declines of First Energy (July 2015), TD (Aug 2015), and Scotia (May 2015)

Exceptionally low corporate decline drives best-in-class growth capital efficiencies.

Late-life production and strong conventional reserve bookings.

New wells add to strong PDP bookings.

-

5

10

15

20

25

30

35

40

45

CVE CJ

PNE

EGL

IKM

ZAR

NBZ SG

LPG

FPS

KG

XOCN

QSG

YFR

UHS

EJO

YAE

TO

ILTO

GER

FAR

XAT

HM

PGM

QL

PWT

PXX

SPE

WCP RE CK

EBN

EBN

P YO LTS

MEI

VET

LRE

TBE

BXO

CPG

PMT

SKX

TVL

LXE

BIR

GXE TV

EAA

VDE

EEC

ATE

TKE

LKC

KN

VA BTE

YGR

LEG

RMP

PEY

PPY

POU VII

CR RRX

TOU

BXE

CQE

% B

ase

Decl

ine

CORPORATE PRODUCTION BASE DECLINE

IKM

9

Source: Beacon Securities, September, 2016.

IKM

$/bo

e

10

Source: Data from Acumen, September, 2016.

IKM

IKM

11

0

200

400

600

800

1000

1200

1400

1600

1800

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Curr

ent R

ate

(boe

/d)

Cumulative BOE to date

IKM 13-26-58-7W6

Best-in-class recompletion results as compared to NBF top wells for January 2016.

Proven offsets to drill when prices recover.

About 6 offsetting locations that are 100% owned by IKM.

Excellent returns, even at low commodity prices.

Source: National Bank Financial March 9, 2016 “Industry Comment.”Public (GeoScout) data added for 13-26-58-7W6.

Operator Well Date Boe Boed/d

Crescent Point 08-32-029-21W3/0 2015-07-08 8,612 41

Crescent Point 10-28-008-05W2/0 2015-07-11 8,856 43

Crescent Point 08-32-029-21W3/0 2015-05-27 9,885 40

Tourmaline 14-11-056-27W5/0 2015-04-02 23,861 78

Shell 06-16-063-20W5/0 2015-11-18 25,660 342

ConocoPhillips 13-18-052-14W5/0 2015-07-31 35,895 194

Cdn Nat 09-16-075-11W6/0 2015-03-20 51,961 163

Shell 08-25-040-08W5/0 2015-06-01 72,974 298

Encana 02-31-063-21W5/0 2015-06-21 84,987 378

Seven Generations 10-10-064-05W6/0 2015-04-06 101,919 339

Encana 07-16-063-21W5/0 2015-06-22 118,920 531

Seven Generations 04-35-063-05W6/0 2015-05-31 160,698 653

IKM • 13-26-58-7W6 2015-09-01 183,000 1666

Peyto 16-33-043-12W5/0 2015-03-20 200,020 629

Westbrick 15-19-045-11W5/0 2015-03-24 289,506 922

Cdn Nat 15-28-053-25W5/0 2015-04-01 323,726 1,058

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In Q1 2015, completed one of the most prolific unstimulated wells in western Canada in recent years.

Recompletion and tie in capital of $1,200 k.

Tested at 20 MMcf/d (3,435 boed/d) and potential to flow at more than 30 MMcf/d (5,167 Boe/d) at pipeline pressure (gross, 50% net APO). Flow rates during test were constrained by surface equipment. Details of the flow test were disclosed separately by the Corporation on April 6, 2016.

Each recompletion identified/de-risked ~6 additional drilling locations (12 wells de-risked total).

Presently flowing inline at approximately 4 - 6 MMcf/d.

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00

NPV

10%

($M

)

$/AECO-flattened prices: Q1, 2016, effective date

$0.96/Mcf$0.89/Mcf

RECOMPLETION INPUTSP70 P90

IP (MMcf/d) 12.00 9.00 Production (Bcf) 11.00 8.00 Recomplete/equip CAPEX ($MM)* $1.20 $1.20Payout (years) 0.2 0.3NPV10% ($M) at $3.00 flat price $9,212.94 $6,682.33

P70

P90

*Risked CAPEX (costs could be 30% less than listed)

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Recompletions of existing well bores de-risks offset gas drilling locations. These wells targeted deeper structural features and shallower targets not necessarily in ideal structural positions.

Despite these constraints, early recompletion results yielded greater than 2,400 boe/d from unstimulated reservoirs.

Offsetting sections are 100% owned by IKM; potentially 12 offset locations with 100% ownership.

Reasonable returns, even at a low commodity prices.

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00

NPV

10%

($M

)

$/AECO-flattened prices: Q1, 2016, effective date

$2.50$1.95

NEW OFFSET DRILL INPUTSP70 P90

IP (MMcf/d) 12.00 9.00Production (Bcf) 11.00 8.00Drill/equip CAPEX ($MM) $8.70 $8.70Payout (years) 1.8 1.2NPV10% ($M) at $3.00-flat price $4,850.70 $1,327.70

P70

P90

14

14 Locations : North(2 Cadotte, 9 Falher, 3 Nik)

17 Locations : North & Central(8 Cardium, 4 Falher, 5 Dunvegan)

7 Locations : South(3 Dunvegan, 3 Falher, 1 Nik)

12-17 Recompletions within Core Asset Base(incl. Cardium, Cadotte, Falher, Dunvegan, Gething Nik)

Opportunities Identified to Date

38 development locations (>30 Mboe/d potential).(1)

12-17 recompletions (>5 Mboe/d potential).(1)

(1) Based on Management estimates.

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Stolberg Cardium

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Jan-

12

May

-12

Sep-

12

Jan-

13

May

-13

Sep-

13

Jan-

14

May

-14

Sep-

14

Jan-

15

May

-15

Sep-

15

Jan-

16

May

-16

Oil (bbl/d) GOR (scf/bbl)

5,100 bbl/d7,520 boe/d peak prod.

STOLBERG CARDIUM

Northern Alberta Foothills Cardium

Background

Regional hydrocarbon charge and extensive, well developed fractured reservoirs.

Vertical wells that have produced more than 30 Mbbl and IKM recompletions have confirmed widespread occurrence of 49-510

API oil.

Reasonable wells costs (DCE: $3.5 – $4.5 mm).

More than 100 locations have been identified so far.(1)

Initial rates could be 200 -1,300 bbl/d, based on regional analysis. Upper production expectations due to enhanced permeability in fractured foothills reservoirs.

Reservoir quality and occurrence of condensate is comparable to Stolberg. Condensate can trade at a $3-$10/bbl premium to Edmonton Lt.

(1) Based on Management estimates.

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

50

100

150

200

250

300

350

400

450

IRR

(%)

IP (b

bl/d

); EU

R (M

Boe)

CARDIUM PLAY BOOK(1)

IP90 (boe/d) EUR (mboe)IRR Wells >50% Oil Oil

IRR Wells > 50% Gas

Foothills delivers highest rate oil wells and leading economics in the basin.

Payout in 0.6 – 2 years at C$40 – C$80/bbl.

Emerging oil play at IKM has the potential to deliver similar returns.

Lochend (78% liq)

Garrington (85% liq)

Ferrier (38% liq)

Willesden Grn (45% liq)

Wilson Crk (71% liq)

East Pembina (82% liq)

Cent Pembina (85% liq)

W Pembina 82% liq)

Edson (44% liq)

Kaybob (78% liq)

Wapiti (45% liq)

Stolberg (87% liq)

IP90 (boe/d) 174 143 291 229 152 128 127 141 191 112 206 305IP 90% Liquids 78% 85% 38% 45% 71% 82% 85% 82% 44% 78% 45% 87%EUR (mboe) 199 173 381 323 159 174 194 178 213 250 312 424EUR % Liquids 44% 60% 23% 30% 46% 68% 74% 67% 33% 55% 27% 51%Cost ($mm) $2.9 $2.5 $2.9 $2.7 $2.2 $2.2 $2.4 $2.5 $2.5 $2.5 $2.9 $3.6Sample Wells 138 436 163 487 180 537 137 801 80 61 91 35NPV10* ($mm) $(0.1) $0.2 $1.5 $0.8 $0.0 $0.7 $0.9 $0.7 $0.0 $1.4 $0.3 $2.3IRR 9% 12% 25% 16% 10% 18% 19% 19% 10% 24% 13% 43%Breakeven WTI** $49 $45 $24 $36 $49 $40 $39 $40 $48 $34 $44 $31Top Operators by Hz. Prod'n:

Pengrowth Pengrowth Orlen Bellatrix Tamarack Bonterra ARC Lightstream Long Run TORC Long Run ManitokLightstream Whitecap CNRL Penn West OMERS ARC Penn West Vermilion TORC Conoco Modern Petrus

Orlen Exxon Petrus Lightstream Regent Whitecap Bellatrix Whitecap Successor Repsol Husky Direct Enrg.

STOLBERG(1,2) IP WELL POPULATION

CARDIUM DATA BY AREA(1)

(1) TD Industry Note, June 2016.(2) Sample population includes wells that penetrated Cordel oil pool in 2012-2013, which lowers Stolberg average EUR and IP.

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Future Oil Operations

Nov - Dec, 2016: Fracture stimulate existing HZ well bore

2017: Drill additional 5-10 wells offsetting first well tests. Two-

four wells will qualify as “flow through” expenditures. However, the 2017 budget does not have Board Approval, and is pending completion of 2016 operations.

Excellent IRR and payout at strip pricing.

Improved IRR under new royalty framework (MRF).

0

100

200

300

400

500

600

700

0% 50% 100% 150% 200% 250%

IP B

BL/d

IRR (%)

IRR vs IP (MRF) Strip Pricing (1)

Operations to date

Recompleted bypass Cardium and free flowed 75bbls/d 50 API oil unstimulated.

Drilled and fracked horizontal footwall Cardium well with 670 m HZ section in footwall reservoir. Currently pumping back frack water, light oil, and sweet gas. This HZ well was drilled adjacent to the above oil recompletion.

Drilled offset hanging wall exploration Cardium well in the same area, with over 1000 m horizontal in main Cardium reservoir. Reservoir appears to be hydrocarbon charged and fractured to a greater extent than the first well.

Well is presently standing, and operations have been delayed due to weather conditions (road bans).

(1) Strip pricing, 60 - 90% initial decline rates; $4mm CAPEX.

OCTOBER 2016 STRIP

Year AECO$Cdn/Mcf

Edmonton Lt$Cdn/bbl

2017 $2.95 $59.78

2018 $2.80 $62.46

2019 $2.69 $63.61

2020 $2.69 $61.32

2021 $2.83 $61.32

2022 $3.08 $61.32

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100-150 locations.(1)

~3 year program with a projected $127 MM CAPEX requirement.

Generates peak annualized cash flow of $82MM/yr (Strip pricing).

Peak production 6,508 BOE/d, with less than of 25% locations drilled.

Risked IRR 85%, on strip pricing.(2)

(1) Based on Management estimates.(2) IP 300 bbl/d, $3.5 – 4.5 MM/well, 60% initial decline rates. Model contains 30 wells.

$(50.00)

$-

$50.00

$100.00

$150.00

$200.00

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Aug-16 Mar-17 Sep-17 Apr-18 Oct-18 May-19 Dec-19 Jun-20 Jan-21 Jul-21

CAPE

X ($

MM

/mo)

NO

I ($/

mo)

; BO

E/d

FORWARD MODEL (1)

BOE/d NOI ($M/mo)Cummulative CAPEX ($MM) CAPEX Minus NOI (cummulative $MM)

OCTOBER 2016 STRIP

Year AECO$Cdn/Mcf

Edmonton Lt$Cdn/bbl

2017 $2.95 $59.78

2018 $2.80 $62.46

2019 $2.69 $63.61

2020 $2.69 $61.32

2021 $2.83 $61.32

2022 $3.08 $61.32

Why own IKM stock?

1. Unique business Experienced technical team with highly specialized engineering and geoscience skills in an

area with little competition. Underexploited part of the basin: prolific conventional reservoirs proven to exist in bypass

zones, based on Ikkuma’s recompletion results to date. Asset and land acquisitions have little competition, thus generating better full-cycle

economics; YTD costs for acquiring crown land are $5/acre.

2. Undervalued Leading G&A efficiencies. OPEX decreasing: low cost producer. Low corporate decline, generates exceptional production growth capital efficiency. Natural Gas production well hedged through 2017.

3. Clear Path to Growth Exceptional results to date: some of the best gas wells in Western Canada. Multiyear drilling inventory (oil and gas) that has been de-risked with current recompletion

operations. Gas recompletions extremely economic at very low gas prices; 10 well recompletion

inventory to be executed over the next 12 to 18 months. Emerging oil play that could be very material, once de-risked.

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ANALYST COVERAGE

Acumen Capital Trevor Reynolds

Beacon Securities Kirk Wilson

Clarus Securities Rob Pare

Desjardins Jamie Kubik

First Energy Cody Kwong

Haywood Securities Darrell Bishop

PI Financial Brian Purdy

TD Securities Juan Jarrah

MANAGEMENT

Tim de FreitasPresident & CEO

Dorothy Else Executive VP

Carrie YuillVP Finance & CFO

Greg Feltham VP Exploration

Kavanagh Mannas VP Operations

Yvonne McLeod Senior VP Engineering

Rich RoweVP Land

BANKS

The Toronto-Dominion Bank

ATB

AUDITOR

KPMG LLP

LEGAL COUNSEL

Borden Ladner Gervais LLP

TRANSFER AGENT

Alliance Trust Company

RESERVE EVALUATORS

Sproule and Associates Ltd.

BOARD OF DIRECTORS

Robert Dales (Chairman)

Dave Anderson

Tim de Freitas

Charle Gamba

William Guinan (Corporate Secretary)

Mike Kohut

CORPORATE OFFICE

Suite 2700, 605 – 5th Avenue SW

Calgary, AB T2P 3H5

T: (403) 261-5900

www.ikkumarescorp.com

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Reserves Category NPV 10% (M$)

Oil (Mbbl)

Liquids (Mbbl)

Gas (MMcf) MBOE

Developed Producing $116,426 1.0 432.0 83,962 14,427

Developed Non-Producing $ 10,110 - 6.6 8,043 1,347

Undeveloped $ 19,554 - 7.2 25,493 4,256

Total Proved $146,090 1.0 446.0 117,498 20,030

Probable $ 56,315 0.5 71.6 44,635 7,511

Total proved plus probable $202,406 1.5 517.6 162,133 27,541

Based on Dec 2015 Consensus Price Forecast (Sproule, McDaniel, GLJ)

Year

Canadian Lt Sweet

Crude 40°API ($C/Bbl)

Western Canada

Select 20.5°API ($C/Bbl)

Alberta AECO-C ($C/MMBtu)

Edmonton Propane ($C/Bbl)

Edmonton butane

($C/Bbl)

Edmonton Pentane

plus ($C/Bbl)

Exchange Rate

($US/$C)

2016 $ 55.89 $ 44.64 $ 2.57 $ 9.76 $ 38.73 $ 60.16 $ 0.74

2017 $ 66.47 $ 54.52 $ 3.14 $ 15.88 $ 46.91 $ 70.95 $ 0.77

2018 $ 73.21 $ 60.32 $ 3.47 $ 24.09 $ 52.58 $ 78.05 $ 0.80

2019 $ 81.35 $ 67.42 $ 3.80 $ 30.49 $ 59.42 $ 86.58 $ 0.82

2020 $ 84.57 $ 70.47 $ 3.99 $ 33.69 $ 62.81 $ 90.00 $ 0.83

2021 $ 87.88 $ 73.50 $ 4.13 $ 34.95 $ 65.25 $ 93.46 $ 0.84

2022 $ 92.01 $ 77.25 $ 4.30 $ 36.45 $ 68.33 $ 97.79 $ 0.84

2023 $ 96.24 $ 80.95 $ 4.48 $ 38.06 $ 71.46 $ 102.23 $ 0.84

2024 $ 98.17 $ 83.09 $ 4.60 $ 38.79 $ 72.90 $ 104.29 $ 0.84

2025 $ 99.94 $ 84.56 $ 4.70 $ 39.50 $ 74.22 $ 106.16 $ 0.84

2026 $ 101.79 $ 86.16 $ 4.79 $ 40.23 $ 75.58 $ 108.12 $ 0.84

2027+ prices escalate at 1.5% thereafter

NET ASSET VALUE PER SHARE

10% NPV of 2P P&NG reserves, before tax ($000's) $ 202,406

Undeveloped land (1) ($000's) $ 15,337

2015 YE Estimated Net Debt (Unaudited) ($000's) $ (32,890)

Net asset value ($000's) $ 184,853

Undiluted common shares outstanding (000's) $ 80,159

Diluted common shares outstanding (000's) $ 84,336

Net asset value per share - undiluted $ 2.31

Net asset value per share -fully diluted $ 2.19

(1) Estimated at $110/acre

30 X multiple of vertical vs. horizontal.

Produced >200 mbbls 52 API oil and 1Bcf in 20 months.

This well was not stimulated, and free-flowed to surface for all of its production history.

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An example of a large resource captured through horizontal drilling in shallow bypass reservoirs:

Discovery vertical well (1997), 8-31-42-15w5.

IP 24-30 bbls/d.

Produced 30 mbbls.

Source: Geoscout

Source: Geoscout

IP: 24-30 bbl/d

Source: Geoscout

600 bbl/d

400 bbl/d

200 bbl/d

IP: ~1,000 bbl/d

Source: Geoscout

24

Vertical - HZ Well Multiplier: the Cardium Formation in Elmworth / Wapiti has the most similar reservoir characteristics, based on logs. On average, horizontal wells in Wapiti benefit from a 9.3x increase on IP, 6.8x increase on EUR when compared to near offset vertical wells.

The average of the two Cardium wells within the foothills trend was used for an expected vertical IP of 149 bopd. Applying the Wapiti HWM to this number yields an expected horizontal IP of 1378 bopd and 212,215 bbls EUR.

HEAVILY RISKED well IP of 250-400 bopd were used for modelling.

Note: Stolberg average well multiplier is higher due to the natural fracture system in place (unstimulated vs stimulated).

Peak Prod. EUR

Peak Prod. Rate EUR

bbl/d bbl bbl/d bblMean 1 well 36 17,000 224.91 81,597 S-Mean 221.88 94,221 Median 191.74 65,378 Count 55.00 55 Std. Dev. 190.55 58,055 r² 0.93 0.93

Dist Peak (bbl/d) EUR (Mbb)Min 31.7 1,931 P99 29.8 5,435 P90 65.2 15,862 P80 90.8 24,901

P75 102.9 29,555 P70 115.2 34,471 P60 141.1 45,512 P50 170.7 59,009 P40 206.5 76,510 P30 253.1 101,017 P25 283.2 117,819.6 P20 321.1 139,838.9 P10 446.8 219,529.8 P1 978.8 640,703.5 Max 1,200.7 299,411.9

Elm/Wapiti South-OIL (all wells outside Wapiti Pool)Vert (one well), offset pool is conv. Wapiti HZ

Peak Prod. EUR

Peak Prod. Rate EUR

bbl/d bbl bbl/d bblMean 1 well 36 17,000 324.22 109,072 S-Mean 333.96 116,376 Median 284.01 95,706 Count 25.00 25 Std. Dev. 228.99 69,304 r² 0.90 0.94

Peak (bbl/d) EUR (Mbb)Dist 31.74 4,909 Min 47.4 14,597 P99 101.8 32,742 P90 140.5 46,009 P80 158.8 52,356

P75 177.2 58,798 P70 216.1 72,508 P60 260.1 88,198 P50 313.1 107,284 P40 381.8 132,299 P30 426.2 148,579 P25 481.6 169,075.1 P20 664.6 237,580.3 P10 1,427.9 532,914.9 P1 1,200.7 299,411.9 Max 1,200.7 299,411.9

Elm/Wapiti-Oil (near offset to vertical wellVert (one well), offset pool is conv. Wapit HZ

IP-X EUR-XElm/Wapiti South-OIL (all wells outside Wapiti Pool) 6.2 5.5 Elm/Wapiti (near offsets) 9.3 6.8 Stolberg 15.4 6.2 Harme-Oil (32-3) 12.4 1.9 Kaybob (60-20-22) 6.3 17.1 Pembina (45-11,12) gasy 5.7 0.7

Vertcal Well #1 222 31,000 Vertcal Well #2 75 n/a

149 31,000 Use Elm/Wapiti near offset multlier 1,378 212,215

IKM Alberta Foothills

Summary (HZ Multiplier)