EAGLE ENERGY INC. Eagle Presentation | February 16, 2018 Upside in - PowerPoint PPT Presentation

All Information Contained in this Presentation is Confidential and for Internal Purposes Only EAGLE ENERGY INC. Eagle Presentation | February 16, 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

Sale of Salt Flat Field in Texas  On February 8, 2018, Eagle announced that it has 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 will use net proceeds from the sale of the Salt Flat Field to reduce debt under the secured term loan and to further fund its drilling program in North Texas. As at December 31, 2017, Eagle remains in compliance with all covenants under its loan agreement.  After giving effect to this transaction, Eagle estimates its corporate decline rate on reserves will improve to 14%.  Transaction metrics on the sale of the Salt Flat Field are as follows: $CA 25,819 boe/d (1) Production Metric: 3.3x (2) Field Netback Multiple: Cash Flow Multiple After Corporate Savings: 4.4x (3) $CA 20.83/boe (4) Proven Developed Producing Reserves Metric: Notes: 1. This metric has been calculated by dividing the purchase price (using a $0.81 $US/$CA exchange rate) by the third quarter 2017 working interest average daily production for the Salt Flat Field. 2. This metric has been calculated by dividing the purchase price by the third quarter 2017 annualized property level field netback. Property level field netback is calculated as revenue less royalties less operating expenses for the Salt Flat Field. 3. This metric has been calculated by dividing the purchase price by the third quarter 2017 annualized property level field netback (both translated at $0.81 $US/SCA exchange rate), adjusted for management’s estimate of $CA 2.4 million of the remaining interest savings if all net proceeds were used to reduce the balance of the secured term loan. 4. This metric has been calculated by dividing the purchase price (using a $0.81 $US/$CA exchange rate) by the working interest proved developed producing reserves that were estimated for the Salt Flat Field, effective as at December 31, 2016, by Eagle’s independent reserves evaluator. 5. These metrics are non-IFRS financial measures. See “Advisory regarding Non-IFRS Financial Measures”. 3

Eagle Summary  Eagle operates 300 active wells (1) in Alberta and Texas  Corporate decline rate of 14%  Q3 2017 Field Netback of $17.85/boe  Symbol: TSX:EGL  Long Term Debt (after sale of Salt Flat): $US 38.5 million  Shares Outstanding (basic): 43.3 million  Market Cap: $16.5 million (2) Notes: (1) Includes producing wells and injectors. (2) Based on a share price of $0.38 / share at February 8, 2018. 4

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 < 10% • Large discovered oil initially in place • Future waterflood enhancement and drilling Low Decline • Low decline rate Production, High • PDP reserves 77% of 1P and 52% 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 ~ 5% 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 November 4, 2017. 5

Eagle’s US Assets North Texas : • 96% liquids Substantial core growth area with ~ 24,000 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 asset and is the major growth area of Asset Base with Eagle where existing production, infrastructure and land holdings Operational of over 24,000 net acres give Eagle a strategic advantage Control • 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 6

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) 7

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 8

Peer Analysis  Eagle’s LMR is healthy at > 3.0 and trending above the 50 percentile of the peer group, with a low total inactive well count, which will limit Eagle’s exposure to changing abandonment regulations from the Alberta Energy Regulator. Notes: (1) Liability Management Ratio (LMR) at November 4, 2017 as published by the Alberta Energy Regulator (AER). The LMR is an assets to liabilities comparison used by the AER to monitor the likelihood an energy company can meet its future abandonment and decommissioning liabilities . (2) Inactive well list as of November 4, 2017. 9

North Texas  24,000 net acres in our core area. Focused and well supported by offset production and 3D seismic.  218 potential horizontal drilling opportunities on our lands.  Not a high risk exploratory play. A development drilling project with solid well control and production history. Completely within Eagle’s core competency and successful track record of horizontal well development.  We have completed the technical subsurface and engineering work, giving us a significant competitive advantage , including over 250 square miles of seismic data, with processing and interpretation complete and proprietary to Eagle and Eagle-owned infrastructure including facilities, pipeline and gathering lines.  Eagle will be the first to exploit this asset with horizontal wells using current completions techniques. Cleveland* Decline 18% North Texas • (TX Panhandle Area) • Core growth area with > 24,000 net acres and Age of Formation Middle Pennsylvanian Upper Pennsylvanian growing Depth Range 6800’ – 7700’ MD 7000’ – 9000’ MD • 218 potential horizontal drilling opportunities Rock Type Sandstone Sandstone identified on existing land Matrix Porosity 12 – 14% 14 – 16% Extensive seismic and geological database • Production Type Light Oil Oil/Higher GOR Matrix Permeability Low Low Play Area (Counties) 4+ 6  North Texas development similar to highly successful Cleveland play in the Texas Panhandle. 10

Twining • Conventional vertical and horizontal well production from the largest Pekisko oil pool in the Western Canadian Sedimentary Basin • > 900 million barrels of discovered oil initially in place • Current pool recovery ~ 5% • Low decline of 5% • On-going conventional horizontal development • 12 Horizontal wells drilled to date Greater than 80 potential horizontal drilling • opportunities 11

Dixonville • Three operating expense reduction projects underway • Horizontal well waterflood on production 2003 • Montney oil zone is a multi-layered turbidite deposit with porosity of 18 to 22% and permeability of 12 to > 100 md Eagle operates at 50% working interest • • Decline < 10% • Discovered oil initially in place of 150 Mmbbls (6% recovery to date, 16% 1P recovery factor) Future waterflood enhancement and drilling • (Ultimate recovery target of 25 to 30% ) 12