Disclaimer Regarding Forward Looking Statements: This presentation - PowerPoint PPT Presentation

Disclaimer Regarding Forward Looking Statements: This presentation includes statements that contain forward looking information (“forward -looking statements”) in respect of Eagle Energy Trust’s expectations regarding its future operations, drilling program, production, reserves, operating costs, capital expenditures, debt, credit facility, payout and recycle ratios, funds flow from operations, field netbacks, hedging, the amount and sustainability of distributions, tax pools, business strategy and plans for growth, among other things. These forward looking statements involve estimates and assumptions including those relating to timing to drill and bring wells on production, production rates, marketability of oil and natural gas, future commodity prices, currency exchange rates, anticipated cash flow based on estimated production, size of reserves and reservoir performance, among other things. These estimates and assumptions necessarily involve known and unknown risks, delays, challenges and other uncertainties inherent in the oil and gas industry including those relating to geology, production, drilling, technology, operations, human error, mechanical failures, transportation, processing problems and poor reservoir performance, among others things, as well as the business risks discussed in the Trust’s annual information form dated March 22, 2012 under the headings “Risk Factors” and “Forward -Looking Statements and Risk Factors” . The forward-looking statements included in this presentation should not be unduly relied upon. Actual results may differ from the forward-looking information in this presentation, and the difference may be material and adverse to the Trust and its unitholders. No assurance is given that the Trust’s expectations or assumptions will prove to be correct. In addition, this presentation contains forward-looking statements attributed to third party industry sources. Accordingly, all such statements are qualified in their entirety by reference to, and are accompanied by, the information and factors discussed throughout this presentation. These statements speak only as of the date of this presentation and may not be appropriate for other purposes. Eagle’s annual information form dated March 22, 2012 contains important detailed information about Eagle and its trust units. Copies of the annual information form may be viewed at www.sedar.com and on Eagle’s website. Disclaimer Regarding Oil and Gas Measures: This presentation contains disclosure expressed as barrel of oil equivalency (“ boe ”) or boe per day (“ boe /d”) . All oil and natural gas equivalency volumes have been derived using the conversion ratio of 6 Mcf of natural gas: 1bbl of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf: 1 bbl would be misleading as an indication of value. 2

 Eagle Energy Trust is an energy trust created to provide investors with a publicly traded, oil and natural gas focused yield product, with favourable tax treatment relative to taxable Canadian corporations.  Eagle pays out a portion of its available cash to unitholders on a monthly basis to provide attractive income.  Eagle’s strategy is to acquire on -shore producing assets in the United States that have predictable cash flows and low risk unexploited development and exploitation potential.  Eagle is a “mutual fund trust” and is not a “SIFT trust” . 3

VISION To create wealth for our investors by combining innovation, expertise and opportunity. GROWTH Our targeted 50% payout ratio allows us to sustain growth and distribute income. INCOME To deliver predictable monthly distributions. 4

Current Working Interest Production: 2,900 boe/d Production Guidance – second half of 2012 : 3,000 boe/d (average) Production Guidance – full year 2012 : 2,700 boe/d (average) Production Split: 97% light oil and NGLs Current Debt (Sept 30, 2012) : US$34 million Credit Facility: US$48.5 million Annual Distribution: $1.05 per unit Current Yield 1 : 11.8% Tax Pools: approx. $250 million (1) Based on the closing price of $8.90 on November 12, 2012 5

Ticker Symbol: EGL.UN Units Outstanding (basic): 28.9 million 52 Week Range: $7.95 - $11.74 Recent price (Nov 12/12 close): $8.90 Average daily trading volume (30 day): 80,194 units 30 day VWAP: $9.76 Market Cap (Nov 12/12): $257.6 million Insider Ownership: 2.7% basic, 9.5% fully diluted Equity Research: Scotia Acumen CIBC Haywood TD NBF 6

Average working interest production of 3,000 boe/d for the second half of 2012 and 2,700 boe/d for the full year 2012:  In Q3 2012 Eagle brought on production:  8 (6.4 net) wells in the Salt Flat Field  2 (1.9 net) wells in the Midland Area  New wells expected to be brought on production in Q4:  5 wells in the Salt Flat Field  3 wells in the Midland Area  Q4 2012 average working interest production expected to be approximately 11% above third quarter production of 2,825 boe/d 7

 2012 exit rate production of approximately 3,300 boe/d, with approximately 1,000 boe/d (95% oil and NGL) coming from the Midland area and 2,300 boe/d (100% oil) coming from the Luling area.  2012 full year average operating cost guidance maintained at approximately $15.00 per boe, trending below $13.00 per boe during the fourth quarter.  2012 full year funds flow from operations guidance of approximately $37.0 million 1 .  Exit 2012 with an approximate 1.0 x debt to trailing cash flow ratio.  Distributions remain sustainable.  2012 payout ratio 2 expected to be approximately 70%. Eagle does not anticipate any negative revisions to reserves as the adjustment to Eagle’s guidance is due to drilling delays and potential mud displacement issues during completion techniques only. (1) Assuming $US 88 WTI, natural gas $US 2.90 NYMEX and 2012 average working interest production of 2,700 boe/d. (2) Eagle calculates this ratio as follows: Unitholders Distributions / Funds flow from operations. 8

 Current hedges lock in at least 1,300 bopd at US$87 - $108 WTI through January 2014  Average working interest sales volumes of 2,825 boe/d, (95% oil and natural gas liquids), a 184% increase from the comparable 2011 quarter and an 18% increase from the second quarter of 2012.  Funds flow from operations of $9.0 million ($34.78 per boe or $0.32 per unit), a 272% increase from the comparable 2011 quarter and a 25% increase from the second quarter of 2012.  A 12% reduction in field operating costs, excluding transportation, since the second quarter 2012 and a 17% reduction when compared to the third quarter of 2011. Total field operating costs, including transportation, are $13.78/boe.  Field netbacks of approximately $45 per boe at US$92 average WTI.  Declared unitholder distributions of $0.26 per unit for the quarter ($0.0875 per unit per month). 9

 2012 Capital budget of US$ 42 million (net to Eagle):  Midland area (US$ 17.5 million):  8 (7.4 net) vertical oil wells.  8 stage frac, multi-zone, stacked pay.  Luling area (US$ 24.5 million):  16 (12.8 net) horizontal oil wells.  3 (2.1 net) side track re-entry wells.  2 (1.6 net) salt water disposal wells.  2 tank batteries.  Completing the electrification of balance of Salt Flat field. 10

BUSINESS STRATEGY  To acquire and optimize US based petroleum assets which have been adequately de-risked (typically >20% PDP) and have attractive metrics for: • potential production growth (typically >2x boe/d in <24 months), • return on capex (2:1 recycle ratio), and • sustainability (targeted 50% payout ratio and multi-year drilling inventory), on an asset-by-asset basis. 11

PLAN FOR GROWTH  Upon acquiring a low PDP % asset, Eagle intends to increase the historical rate of capital investment in the near term to grow production, optimize operations and maximize drilling inventory.  After the “ramp up”, Eagle expects cash -flow from each asset to: • sustainably support Eagle’s targeted payout ratio of 50 %, • fund the capital to replace declines, and • deliver 7-10% annual production growth on that asset.  Eagle may acquire higher PDP % assets if production is sustainable. 12