Corporate Presentation November 2017 Future Oriented Information - PowerPoint PPT Presentation

Corporate Presentation November 2017

Future Oriented Information • In the interest of providing information regarding Paramount Resources Ltd. ("Paramount", "PRL" or the "Company") and its future plans and operations, this presentation contains certain forward-looking information and statements. • The projections, estimates and forecasts contained in such forward-looking information and statements necessarily involve a number of assumptions, and are subject to both known and unknown risks and uncertainties that may cause the Company's actual performance and financial results in future periods to differ materially from these projections, estimates and forecasts. The Advisories Appendix attached hereto lists some of the material assumptions, risks and uncertainties that these projections, estimates and forecasts are based on and are subject to. • Accordingly, shareholders and potential investors are cautioned that events or circumstances could cause actual results to differ materially from those predicted. • Any use of information contained in this presentation is expressly forbidden. 2

Corporate Overview Corporate Profile • Founded in 1976; IPO in 1978; TSX: POU 2017 Results • Q3 2017 production: 49,023 Boe/d (~40% Liquids) • Q4 2017E: 95,000 Boe/d (~38% Liquids) • 2017 Capex (at Sep 30, 2017): ~$380 MM • Q4 2017E Capex: ~$130 MM • Net Debt at Sept 30, 2017 ~$564 MM (1) • Market Cap: ~3.1 Bln (134.9 MM shares @ $23.00) • Net total acres of ~2.7 Million • Net Montney acres of ~378,000 acres • Net Duvernay acres of ~230,000 acres • 424 P+P Undeveloped Locations • 2,049 P+P and High Grade Locations • 346 MMBoe Proven; 600 MMBoe P+P Reserves (2) 2018 Forecast • 2018E Production: 100,000 Boe/d (40% Liquids) • 2018E Capex: $600 MM • 2018E Opex: $10.00/Boe 1) Refer to the heading “Non-GAAP Measures” in the Advisories Appendix 3 2) Refer to the heading “Reserves and Other Information” in the Advisories Appendix

Historical Performance 1) As evaluated by McDaniel & Associates Consultants Ltd. as of June 1, 2017 4

Highlights Transaction Highlights • April 2016 sold Musreau Plant ~$565 MM • August 2016 sold Musreau Asset ~$2.1 Bln • December 2016 sold royalty on Cavalier Oil Sands Asset ~$100 MM • December 2016 dividend declared: ~3.8 MM Seven Generations shares ~$120 MM • May 2017 closed the sale of Valhalla assets for cash of ~$150 million • August 16, 2017 closed Apache Canada acquisition for ~$460 million • September 12, 2017 merged with Trilogy for 1 POU share for every 3.75 TET shares Operating Highlights • Q3 2017 sales volumes averaged 49,023 Boe/d (40% liquids) • During the month of October 2017 average production was 98,000 Boe/d (38% liquids) • Record production throughput at Karr 06-18 hitting nameplate with October 2017 sales of ~26,600 Boe/d (~52% liquids) and peak wellhead throughput of ~30,500 Boe/d (~55% liquids) in the same time frame • New 6-well pad at Kaybob Duvernay achieved average wellhead production rate of ~1,600 Boe/d per well (51% condensate) over the first 30 days of production 5

Liquids Focused Assets Montney Assets Duvernay Assets Wellhead Asset Description Liquids (1) Bbl/MMcf MONTNEY Birch 25 Wapiti 90 Karr 120 Smoky/Resthaven 85 Ante Creek 120 Kaybob 220 Presley/Fir 12 DUVERNAY Kaybob North 360 Kaybob Smoky 220 Kaybob South 100 Kaybob Bigstone 60 Kaybob Pine Creek 30 Willesden Green 650 1) Liquids yields based on internal estimated ultimate recoverable volumes of wellhead oil, condensate, and natural gas before surface losses and shrinkage. Refer to the heading “Reserves and Other information” in the Advisories Appendix 6

Diversified Assets Location Breakeven Breakeven Wellhead Production Stage of Asset Description Inventory WTI Oil NYMEX Gas Potential (Gross) Development P+P | Total (1) US$/Bbl (2) US$/MMbtu (2) Liquids Bbl/d | Total Boe/d (3) 2017 – 2021 Focus Assets Karr Montney Development 76 | 227 31.92 0.92 18,000 | 43,000 (Phase 1) Wapiti Montney Development 96 | 504 28.81 1.21 13,500 | 38,500 (Phase 1) Kaybob Montney Oil Development 75 | 175 32.03 (1.06) 8,000 | 14,000 Kaybob South Duvernay Development 57 | 167 39.62 1.80 8,000 | 21,000 Kaybob Smoky Duvernay Development 49 | 66 30.52 (0.89) 13,000 | 23,000 Subtotal 353 | 1,139 60,500 Bbl/d | 139,500 Boe/d Longer-Term Assets Resthaven/Jayar Montney Piloting 0 | 84 Analyzing long-term performance from completion at 01-05 Hz. Ante Creek Montney Demonstration 0 | 50 Analyzing long-term production results from new 6-well pad Presley/Fir Montney Gas Development 41 | 135 9.74 2.69 720 | 10,000 Birch Montney JV Development 26 | 163 35.27 2.47 3,500 | 26,000 Kaybob North Duvernay Delineation 4 | 228 Studying offset performance from MUR Kaybob Bigstone Duvernay Delineation 0 | 50 Studying offset performance from CVX and XTO Kaybob Pine Creek Duvernay Delineation 0 | TBD Commercial potential from new completion learnings Willesden Green Duvernay Piloting 0 | 200 Analyzing results from completion at 02/13-05 Hz. 1) Refer to the heading “Reserves and Other Information” in the Advisories Appendix 2) Breakeven analysis discounted at 10 percent before tax, based on McDaniel P+P type well assumptions, FX rate of $0.775 $US/$C and AECO basis of US$0.95/MMbtu and constant costs based on current cost structure. Breakeven oil prices based on a constant NYMEX gas price of US$3.00/MMbtu. Breakeven gas prices based on a constant WTI oil price of US$50.00/Bbl. 3) Wellhead production volumes are before surface losses and shrinkage. Potential production levels are estimated to be achieved by 2021 or sooner 7

Permian | Karr Comparison Note: Permian Operators based on data provided in Corporate Presentations for CDEV, CPE, CXO, EGN, FANG, OXY, PDCE, PE, RSPP, SM, WPX and XEC. ) Paramount Karr wells IP30 volumes are produced volumes of oil, condensate and natural gas measured at the wellhead. Sales volumes are lower due to surface losses and shrinkage. Refer the heading "Reserves and Other Information" in 8 the Advisories Appendix.

Paramount Completion Evolution • Technology and Fluid: Open Hole Packers and Energized Oil • Lateral Length and Stage Spacing: Up to 1,600m and 100m (~16 stages) • Proppant Loading and Proppant Type: Up to 0.6 t/m (400 lbs/ft) and uniform sand size Gen 1 • Cluster Spacing and Pump Rate: Single point entry up to 4 m3/min • Technology and Fluid: Open Hole Packers and Energized Water • Lateral Length and Stage Spacing: Up to 2,600m and 80m (~32 stages) • Proppant Loading and Proppant Type: Up to 1.5 t/m (1,000 lbs/ft) and uniform sand size Gen 2 • Cluster Spacing and Pump Rate: Single point entry up to 6 m3/min • Technology and Fluid: Cased Hole (Combo Systems) and Slickwater • Lateral Length and Stage Spacing: Up to 3,000m and 40m (~75) stages • Proppant Loading and Proppant Type: Up to 2.5 t/m (1,700 lbs/ft) and multiple sand sizes Gen 3 • Cluster Spacing and Pump Rate: Multi-point entry (down to 6m) and up to 14 m3/min • Customized Cluster Design The goal is to achieve the best bang for our buck • Plug Optimizations • Enhanced Zipper Fracturing while optimizing condensate recoveries. Next • 100% Plug and Perf 9

Midstream & Marketing Strategy Karr 06-18 Midstream Portfolio Positioned for Growth • Focus assets in Montney and Duvernay have takeaway capacity to manage growth plan through 2021 Keyera Wapiti • Owned and operated infrastructure coupled with 3 rd party midstream provide balanced opex structure • Opportunities to increase 3 rd party fee revenue from non-core infrastructure assets Firm, Reliable Market Access • Portfolio of firm TCPL capacity at receipt points for growth plays in Wapiti, Karr and Kaybob • Majority of key gas processing facilities are dually Kaybob North connected to TCPL and Alliance 08-09 18.2 MMcf/d Pushing Further Downstream 51.2 MMcf/d • Contracts for firm TCPL transport to Dawn and Malin providing exposure to downstream markets. • Shipper status on both Pembina and Plains feeder pipelines allowing for direct marketing of our products. 318.6 MMcf/d • Own and operate a major Pembina-connected battery in Kaybob area which offers terminalling November Exposure and blending opportunities. 10

Grande Prairie Snapshot Operational Highlights • 21 new wells on production at Karr • 6 wells in progress at Karr • Evaluating new Montney zone at Wapiti • Evaluating new Montney well at Resthaven/Jayar Asset Summary • Three Montney assets in Alberta Deep Basin trend - Wapiti, Karr, and Resthaven/Jayar • Over-pressured liquids-rich natural gas • Up to three development layers • Midstream capacity in place for growth • Cretaceous upside across the Deep Basin trend Grande Prairie Statistics • 145,000 net acres of Alberta Deep Basin Montney • P+P inventory of 172 locations • P+P and high grade inventory of >800 locations (1) • Current gas processing capacity of ~145 MMcf/d 11 1) Refer to the heading “Reserves and Other Information” in the Advisories Appendix