Corporate Presentation Peters & Co Ltd Energy Conference - PowerPoint PPT Presentation

Corporate Presentation Peters & Co Ltd Energy Conference Toronto September 11, 2013

Corporate Snapshot Background Cavalier Asset Portfolio Overview • In November 2011, Paramount contributed seed capital and all of its oil sands and carbonate bitumen assets to Cavalier • Cavalier has a 100% working interest in its main project areas • Cavalier has 75MM shares outstanding, 100% owned by Paramount • Cavalier is targeting to produce 80,000+ bbl/d from the Grand Rapids formation at its Hoole property with significant additional development potential from its portfolio of exploration lands − Includes carbonates properties adjacent to and on trend with the Laricina / Osum Saleski project, Eagles Nest and Christina Lake • New capital to be raised to fund ongoing development and Reserves and Contingent Resource Summary (1) the evaluation of opportunities for the achievement of greater scale in core areas Reserves Contingent Resources • Cavalier plans to remain private through initial Probable Low Best High Asset Undev. Estimate Estimate Estimate development phase MMbbls MMbbls MMbbls MMbbls • Cavalier is led by Dr. Will Roach, former President and Hoole (2) 93 511 719 903 CEO of UTS Energy Corporation Saleski Carbonates (3) - - 380 567 − Other Carbonate Leases (3) UTS was sold to Total E&P Canada Ltd. for $1.5 billion - - 111 184 in 2010 plus the spinout of SilverBirch, which was sold for an additional $500 million in 2012 _______________ 1. See forward looking statement advisory for disclosure on reserves and resource information and definitions. 1 2. Hoole volumes are probable undeveloped reserves and economic contingent resources as per McDaniel report effective December 31, 2012. 3. Carbonates volumes are contingent resources (technology under development) as per McDaniel report effective October 31, 2011.

Grand Rapids Resource Overview Key Attributes of the Grand Rapids • Developable using proven SAGD drilling, completion and production techniques • Laterally continuous sand body provides for repeatable surface development template • Homogenous reservoir enables more predictable drilling and well production profiles • Ostensibly no occurrence of top, middle or bottom water in core area; contributes to better reservoir performance and steam oil ratios • Competent extensive top seal • Reservoir depth of ~250m permits use of established drilling and completion techniques Grand Rapids Shore Face Sand Grand Rapids Cross Section • Large, laterally continuous, homogeneous shore face sand in the Grand Rapids formation is the cornerstone of Cavalier’s asset base 2

Grand Rapids Industry Activity Grand Rapids Formation Generating Significant Interest • Industry peers have already applied for Grand Rapids SAGD projects totaling over 450,000 bbl/d of production capacity (1) : – Cenovus: 180,000 bbl/d (pilot achieved first oil in Q3 2011 and filed commercial application in December 2011); 1 st 60,000 bbl/d phase expected to start in 2017 – Laricina: 155,000 bbl/d (commercial application filed Q4 2011); First 5,000 bbl/d commercial phase commenced steaming in Q2 2013; 30,000 bbl/d Phase 2 expected to start up in 2016 – BlackPearl: 80,000 bbl/d ( pilot achieved first oil in Q3 2011 and filed commercial application in May 2012) – Koch: 40,000 bbl/d (10,000 bbl/d commercial application filed) Proximate to Significant Pre-Existing Producing Area • Hoole is directly adjacent to Cenovus and Canadian Natural’s Pelican Lake projects that are currently producing ~65,000 bbl/d from the Wabiskaw formation – Benefits from having significant pre-existing infrastructure (pipelines, natural gas, electricity, roads, etc.) in place Hoole is targeted to be a material 80,000+ bbl/d project located in the core of the Grand Rapids resource play with opportunities for achievement of greater scale 3 _______________ 1. All based on publicly available information.

Hoole Project Overview Significant Resource Base with Attractive Economics • Probable reserves of 93 MMbbls (B-tax 10% NPV of $379 million) and best estimate economic contingent resources of 719 MMbbls (B-tax 10% NPV best estimate of $1.9 billion) (1) • Targeting the laterally continuous and homogeneous Grand Rapids formation • Use of proven SAGD technology is expected to result in strong operating netbacks across a wide range of oil prices • Proximal to high grade road networks, power and gas infrastructure and substantial announced bitumen takeaway and diluent return capacity • Multi phase project with estimated total production capacity of 80,000+ bbl/d by 2023 • Growth opportunities through strategic acquisitions Development Stage Project with Expected Near Term Production • Filed regulatory application in November 2012 for 10,000 bbl/d Phase 1 with first production expected in 2017 – 93 MMbbls of probable reserves (1) at Phase 1 were recognized in Q1 2013 as a result • Delineation drilling for Phase 1 completed in 2010 (74 wells) • Environmental modeling complete and water source/disposal is selected, subject to regulatory approval • Front end engineering and design work nearly completed • Risk mitigation strategy being implemented through construction Hoole is targeted to be a material 80,000+ bbl/d of modularized components built off-site project located in the core of the Grand Rapids • Ability to truck production volumes for Phase 1 until area pipeline resource play with near term production expected infrastructure is built and multiple opportunities for achievement of greater scale _______________ 1. Hoole volumes and NPV as per McDaniel report effective December 31, 2012. 4 See forward looking statement advisory for disclosure on reserves and resource information and definitions.

Management Hoole Net Pay Mapping Grand Rapids Reservoir Continuity • Large, homogeneous shore face sand in the Grand Rapids formation • Laterally continuous sand body provides for repeatable surface development template • Homogenous reservoir enables more predictable drilling and well production profiles • Ostensibly no occurrence of top, middle or bottom water in core area; contributes to better reservoir performance and steam oil ratios 5

Hoole Phase 1 Phase 1 Schedule Phase 1 Development Philosophy • • Use proven execution strategies and methods – Phase 1 Submitted application in November 2012 and began front- end engineering to use steam only, with allowances to easily add solvent in the future • Expect regulatory approval in H1 2014 and begin site • preparation, module fabrication and drilling initial well- Surface facilities designed for conservative cumulative SORs (2) , GORs (3) and liquids handling assumptions pairs • • Assuming approval, complete construction and begin first Utilize largest modularized size for evaporator and steam in H2 2016 corresponding drum boilers • • First production from Phase 1 is expected in 2017 Limit field construction activities throughout plant site by utilizing modularization wherever predictable Phase 1 Capital Requirements ($MM) (1) • Provides data and better information for optimizing future • Phase 1 capital costs estimated at approximately $45 – phases 50,000 /bbl/d: • Standalone and not expandable, but designed to Facilities / Infrastructure $350 $400 integrate with future phases - Drilling & Completions 105 110 - Total $455 $510 - • The capital cost intensity of $45,000/bbl/d quoted above assumes an SOR of 3.5; stronger reservoir performance is expected to reduce this number • Construction costs can be mitigated through the incorporation of modularized components built off site Phase 1 sized for steam capacity; capital cost intensity of approximately $45 – 50,000/bbl/d based on conservative cumulative SOR _______________ 1. Management’s estimate based on FEED engineering and Class 3 Estimates, stated in 2013 dollars. 2. Cumulative steam oil ratios (“CSOR”) is the cumulative ratio of steam injected (in cold water equivalent) to oil produced from a SAGD well pair or Project over the life of the scheme. 6 3. Gas Oil Ratio.

Hoole Phase 1 Schedule Phase 1 first oil production is anticipated in 2017 7

Hoole Full Field Development Plan • Hoole Phase 1 application filed with the Energy Resources Conservation Board (“ERCB”) and the Alberta Environment and Sustainable Resource Development (“AESRD”) on November 7, 2012 • First round SIRs (1) for Hoole Phase 1 received from the regulator in June and replied to in July 2013 • Phase 2 and 3 capital costs estimated at $1.4 billion and $1.3 billion, respectively (including facilities, drilling and completions) (2) Management has a track record of delivering large scale projects on time and on budget ______________ 8 1. Supplementary Information Request Management’s estimate based on PRE-FEED engineering and Class 4 Estimates, stated in 2013 dollars 2.