EAGLE ENERGY INC. Eagle Presentation | March 26, 2018 Upside in Eagle - PowerPoint PPT Presentation

All Information Contained in this Presentation is Confidential and for Internal Purposes Only EAGLE ENERGY INC. Eagle Presentation | March 26, 2018

Upside in Eagle  Eagle is well positioned to benefit from a rebound in oil prices  80% percent of production is liquids.  Stable asset base with low decline. Total Proved Net Asset Value Per Share  Potential to unlock significant value in our assets  We have identified 218 potential horizontal drilling opportunities on existing Eagle lands in North Texas.  We have identified greater than 80 potential horizontal drilling opportunities at Twining.  Management’s core competencies are directly aligned with maximizing the probability of success of these opportunities. 2

Eagle Summary  Eagle operates 300 active wells (1) in Alberta and Texas  Corporate decline rate of 14%  Q4 2017 Field Netback of $22.47 barrels of oil equivalent (“boe”)  Symbol: TSX:EGL  Long Term Debt (after sale of Salt Flat): $US 38.5 million  Shares Outstanding (basic): 43.3 million  Market Cap: $16.9 million (2) Notes: (1) Includes producing wells and injectors. (2) Based on a share price of $0.39 / share at March 22, 2018. 3

2017 Highlights & Operational Update “Eagle closed out 2017 with strong reserve metrics, production and monthly operating costs within its guidance range and capital expenditures as planned.”  Successfully drilled, completed and brought on production Eagle’s first horizontal well on its North Texas property, with production results exceeding expectations.  At present, we are drilling a second horizontal location over ten miles from the first horizontal well. Success on this second well would prove up additional leased acreage in the area. A third horizontal well is planned for late 2018.  Posted reserve replacement ratios of 274% and 227% on a proved plus probable and proved basis, respectively.  Reduced general and administrative costs by 25% year ‐ over ‐ year, including reductions in executive compensation.  Grew funds flow from operations excluding risk management gains (losses) by 49% year ‐ over ‐ year (from $9.7 million to $14.5 million).  Recorded 2017 funds flow from operations of $12.7 million. 4

Sale of Salt Flat Field in Texas and Reduction of Debt  On February 8, 2018, Eagle announced that it sold its oil and gas interests in the Salt Flat field located in Caldwell County, Texas for approximately $33.3 million cash, subject to customary post ‐ closing adjustments.  Eagle used the net proceeds from the sale to reduce its term loan by 34% (from $US 58.2 million to $US 38.5 million) and to further fund its drilling program in North Texas. 5

2018 Plan  Continue to focus on drilling wells on our North Texas property due to its high netbacks and opportunities for meaningful growth.  The first North Texas well drilled continues to perform above expectations.  At present, Eagle is drilling a second horizontal location over 10 miles from the first horizontal well. Success on this second well would prove up additional leased acreage in the area.  A third horizontal well is planned for late 2018.  Reduce debt and corporate costs, including interest costs, in order to better position Eagle to capitalize the North Texas opportunity.  Alternatives for funding growth potentially include asset sales.  The February 8, 2018 sale of assets in the Salt Flat field was an initial step towards achieving our overall goals.  Sustaining 2018 average corporate production at post-Salt Flat disposition levels with low capital expenditures made possible due to an improved corporate decline of 14% (after the sale of Salt Flat).  The sale of the Salt Flat field reduced Eagle’s total corporate production by approximately 1,200 boe per day (“ boe/d ”).  Reduced our term loan by 34% (from $US 58.2 million to $US 38.5 million).  On a go-forward basis, and excluding one-time interest charges relating to the Salt Flat field sale, lower debt at current interest rates will result in reduced monthly interest costs.  Reduce general and administrative expenses by continuing our focus on efficiencies and cost reduction. 6

2018 Plan cont.  To advise us on our plan, Eagle retained Tudor, Pickering, Holt & Co. Securities – Canada, ULC (“TPH”) to act as a financial advisor to Eagle’s board of directors.  TPH is an independent investment bank with extensive financial and technical knowledge of the energy sector.  Eagle’s Board and management are committed to acting in the best interest of Eagle and believe this will ultimately benefit Eagle.  While all transaction alternatives will be evaluated, the Board and management are encouraged by the potential for the North Texas asset to deliver attractive returns to Eagle with continued development.  Eagle intends to disclose developments with respect to specific transactions, if any, only when they are approved by the Board, unless disclosure is otherwise necessary and appropriate. 7

2017 Year End Reserves (1)  Grew year ‐ over ‐ year proved reserves by 11% and proved plus probable reserves by 10%.  Achieved year ‐ end proved plus probable reserves of 23.2 million boe (68% total proved, 47% proved developed producing).  Crude oil comprises 92% of proved developed producing reserves.  Posted reserve replacement ratios of 274% and 227% on a proved plus probable and proved basis, respectively.  Increased the reserve life indices to 17.7 years and 12.1 years on a proved plus probable and proved basis, respectively. Reserves by Category PV10 Value ($MM) $89 32% 47% $159 $40 20% $8 2% 1 2 3 4 1 2 3 4 Notes: 1. Per McDaniel & Associates Consultants Ltd., and Netherland Sewell & Associates, Inc., Eagle’s independent reserve evaluators, with an effective date of December 31, 2017. 8

Eagle’s US Assets North Texas : • 96% liquids • Substantial core growth area with ~ 25,000 acres Concentrated • 218 horizontal drilling opportunities on existing land • 100% operated • Applying new horizontal well technology in existing High Quality conventional reservoir • North Texas is a light oil development asset and provides Eagle Asset Base with opportunities for meaningful growth through existing Operational production, infrastructure and land holdings of approximately Control 25,000 net acres. • Low differential to WTI and low operating costs High Netback Oil • Significant geological and geophysical work over the with Significant last two years has resulted in the accumulation of Growth land and opportunities in North Texas Development • 218 potential horizontal drilling opportunities to be Opportunities developed on existing acreage in North Texas • Horizontal wells with capital costs in the $US 3.5 million range in North Texas 9

Eagle’s Canadian Assets • 80% liquids • 90% operated Concentrated • Dixonville is a premier Montney light oil waterflood in High Quality Western Canada Asset Base with • Twining is a large conventional Pekisko light oil pool with a Operational low recovery factor where new horizontal well technology Control Dixonville : has unlocked significant additional reserves • Decline < 6% • Large discovered oil initially in place • Future waterflood enhancement and drilling Low Decline • Low decline rate Production, High • PDP reserves 72% of 1P and 51% of 2P PDP Reserves • Greater than 80 potential horizontal drilling with Significant opportunities at Twining in addition to the 12 horizontal Growth wells that Eagle or its predecessors have drilled Development Twining : • Decline 17% Opportunities • On ‐ going Conventional Horizontal Development Current LMR is 3.24 (1) • Low Near–Term • Low inactive well count Abandonment • Low abandonment liability over the next 10 years Liability, • Our Canadian asset base therefore positions us favourably to High LMR changes to the abandonment regulations in Alberta Notes: (1) At December 4, 2017. 10

Eagle’s Strategy Horizontal Wells in Low Decline (Corporate Decline 14%) Conventional Plays Liquids Production (30% of Eagle Production from Horizontal Wells) (80% Liquids) TOTAL SHAREHOLDER RETURN Build Inventory of Focus on Return to Low Risk Locations Low Leverage for Growth Balance Sheet ( 218 Potential Horizontal Drilling Opportunities in North Texas) 11

Eagle’s Operational Core Competencies and Successes Proven success year ‐ over ‐ year in operational efficiency of conventional assets  Proven driller and operator of horizontal wells in conventional fields  Highly successful, focused and disciplined operating team  Strong geological and geophysical capability with proven track record of developing successful plays  Effective and efficient operator in multi ‐ jurisdiction and regulatory environments  Skilled at operating waterfloods and fields with high water cuts  Have implemented operating cost optimization projects  Strong reservoir management team  Detailed understanding of fields and reserve drivers  Excellent reservoir management process and execution 12