Investor Presentation TSX / NYSE: AAV October 2015 ADVANTAGE AT A - PowerPoint PPT Presentation

“Low Risk Glacier Montney Development, Strong Balance Sheet & Hedging Program Supports Profitable & Sustainable Growth” Investor Presentation TSX / NYSE: AAV October 2015

ADVANTAGE AT A GLANCE TSX, NYSE: AAV TSX 52-week trading range $4.51-$8.34 Shares Outstanding (basic) 170.7 million Current production 180 mmcfe/d (30,000 boe/d) Q3 Production estimate (1) 147 mmcfe/d (24,500 boe/d) Market Capitalization @ October 5, 2015 $1.3 billion Bank Debt @ June 30, 2015 (38% undrawn on $450 million Credit Facility) $277 million Total Debt @ June 30, 2015 (including working capital deficit) $293 million View of Glacier Plant Process Train – approximately 1000 feet long 2 (1) Based on AAV field production estimate

POSITIONED FOR PROFITABLE & SUSTAINABLE GAS GROWTH World Class Glacier Montney Asset >1000 future drill locations Industry Leading Low Strong Balance Sheet Cost Producer 1.6x D/CF Average $0.89/mcfe total cash costs 2015 thru 2017 @$3.00 Cdn/GJ 26 Employees 2015-2017 Development Plan 22% Average Annual Production Growth 245 mmcfe/d in 2017 (40,830 boe/d) Attractive Hedging Program Low Risk Development 63% Hedged @$3.82 Cdn/mcf 2015 No new wells required to achieve 2016 production ramp 52% Hedged @$3.62 Cdn/mcf 2016 60% average ROR well economics 16% Hedged @$3.37 Cdn/mcf 2017 3

WORLD CLASS MONTNEY ASSET WITH INDUSTRY LEADING LOW COSTS & CAPITAL EFFICIENCIES Glacier Montney Thin Section Photo 4 300 meters thick Glacier Natural gas Montney Siltstone and liquids Core resource Strong economics at current commodity prices 4

GLACIER DEVELOPMENT WITH ADDITIONAL MONTNEY LANDS PROVIDES FUTURE UPSIDE  Current development at Glacier including Progress dry and liquids rich gas drilling  Glacier future drilling inventory >1,000 100% owned locations 9 net Montney Glacier Gas Glacier sections acquired Plant  New Montney lands at Valhalla, 81 net 2014 Wembley & Progress contain multiple sections Valhalla layers and requires delineation  Total 137 net Montney sections (87,584 net acres) 47.25 net Montney sections Wembley acquired 2013 5

“ PENTASTACK ” DEVELOPMENT WITH DECADES OF DRILLING INVENTORY AT GLACIER  Capable of maintaining 245 mmcfe/d (40,830 boe/d) for >50 years (1)  >1,000 Future Drill Locations at Glacier support future growth (1)  292 undeveloped locations booked in 2P reserves Year End 2014 (2) C3+ (3) Liquids # Wells Production Drilled Since (bbls/mmcf) UM 104 2008 Dry MM 22 2012 50 LM 36 2008 11 (1) Management Estimates (2) Based on Sproule December 31, 2014 Glacier Reserves Report 6 (3) Based on shallow cut liquids extraction process. Represents average liquid yield across Glacier. C5+ average 45% of liquid yield.

GLACIER WELL ECONOMICS (1) – STRONG RETURNS @ CURRENT COMMODITY PRICES % Upper Montney Lower Montney % Advantage achieved 16% cost reduction to average $4.6 million DC & E on its last 11 UM wells Higher IP Higher IP % & EUR & EUR % Case Case % % Lower Lower Well Well Cost Type Type Cost Curve & Curve & Cost Cost Middle Montney % 50 bbls/mmcf C3+, 45% C5+ IP30 Bcf Well Cost (DC&E) mmcf/d $million Higher IP & EUR (1) Assumptions: Case  Management Estimates of IP30, 2P EUR & Costs %  Cdn Aeco $2.84/GJ  Cdn $28/bbl blended C3+ price based on $50 U.S./bbl % WTI Lower Type Well Curve & Cost Cost 7

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INDUSTRY LEADING LOW COST STRUCTURE ENHANCES ECONOMIC RETURN… AAV - Industry leading low cost structure Gas Weighted Q2/15 Cash Flow per BOE vs. Cash Costs per BOE $30.00 Median of $14.25 $25.00 Lower Costs & Source: FirstEnergy Capital Corp. Higher Netbacks Note: we do not consider royalties as a controllable cash cost, however have included for $20.00 illustrative purposes Q2/15 Cash Flow per BOE * – Restricted; R – under Review 1 – FD&A for Glacier standalone reserves, Allocated $0.25/mcfe in transportation costs as AAV Median of $14.26 $15.00 a production expense instead of as a discount to reported wellhead price; 2 – 2013 FD&A figure (2014 figure n/a): $10.00 $5.00 $0.00 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 8 Q2/15 Cash Costs per BOE Notes: (1) Source: Peters & Co. Limited (2) Gas Weighted: >50% current production is natural gas.

…AND GENERATES STRONG RECYCLE RATIO’S Q2 2015 Illustrative Glacier Operating Netback ($/mcfe) $2.50/mcfe $3.29 (1) $2.50 Revenue (Realized Price) ($0.11) ($0.13) Royalties ($0.37) ($0.35) Operating Costs $2.81 $2.02 Operating Netback 2.7x 2.0x Recycle Ratio at 2014 2P F&D $1.03/mcfe (2) G&A ($0.19) ($0.17) 2014 Capital ($0.21) ($0.19) Finance Expense & other Efficiency ~$15,000/boe/d $2.41 or $1.66 or Cash Flow Netback $14.55/boe $9.96/boe (1) Revenue includes adjustments for transportation costs and heat value and hedging gains of $0.76/mcf. 9 (2) F&D includes Future Development Capital

2013 SLICKWATER WELLS OUTPERFORM LONG TERM PRODUCTION EXPECTATIONS. 2014 WELLS JUST STARTED… 3 Wells initially brought on-stream in July 2015 to increase production from 130 to 180 mmcfe/d (one 2013 LM & two 2014 UM). Wells are normally restricted to ≤10 mmcf/d for frac sand flowback control during initial 6 months Production from 21 slick water completed Upper & Lower Montney wells from 2013 program are outperforming longer term budget decline trend Budget Type Curve (IP30 6.9 mmcf/d & 6.9 Bcf) 10 Data: updated to July 2015

IMPROVING LIQUIDS RICH MIDDLE MONTNEY WELL PERFORMANCE AT GLACIER 10 New MM wells Based on 2014 production test rates could exceed historical type curve 12-2 well (2013) cumulative production >2 Bcfe after 400 days (restricted) with current flowing pressure 1,000 psi. Middle Montney Budget Type Curve (IP30 4.0 mmcf/d & 4.0 Bcf) Data: updated to July, 2015 11

2014 MIDDLE MONTNEY PROGRAM FOCUSED ON HIGHER LIQUID CONTENT IN EAST GLACIER Middle Montney wells to date Glacier C5+ 57 22 MM wells (hz & vert) drilled illustrate higher liquid content (1) deg API from west to east across Glacier since 2011 across Glacier East Glacier 9 30 to 83 Wells completed & standing bbls/mmcf from 2014 program (current) C3+ MMCF/D average final test 6.6 rate from ten completed 2014 2014 Well 12-20 2014 Well 8-9 9.3 mmcf/d 5.7 mmcf/d wells 43 bbls/mmcf 83 bbls/mmcf 2013 Well 12-2 >9 13 mmcf/d MMCF/D demonstrated by 3 42 bbls/mmcf of the 10 wells 2014 Well 13-17 50 9.8 mmcf/d BBLS/MMCF of C3+ liquids 54 bbls/mmcf yield average East Glacier West Glacier 2014 Well 8-35 18 to 30 Average condensate in liquid 45% 18 mmcf/d bbls/mmcf 47 bbls/mmcf yield C3+ 2014 Middle Montney wells completed & standing 2014 Middle Montney wells waiting on completion (1) Based on C 3 + shallow cut liquids extraction process yields from well test data. 12

LOW RISK DEVELOPMENT WITH A WELL DEFINED GROWTH PLAN 13

LARGE INVENTORY OF STANDING WELLS & PRODUCTION CAPABILITY Only 3 Wells Utilized to Initially 33 Wells Drilled in 2014 Increase Production from 130 program to 180 mmcfe/d in July 2015 Wells Completed & 19 Standing (current) 130+ MMCF/D IP30 from the 19 2-18 LM (2013) 5-3 UM wells 21 mmcf/d (2014) 12 mmcf/d 11 Wells Drilled, not completed 205 MMCF/D April 2016 target attainable with no additional drilling 9-35 UM 2014 Drilling Program Wells (2014) 12 Upper Montney 17 mmcf/d 13 Middle Montney 8 Lower Montney 14 Note: Wells will be choked to ≤10 mmcf/d to manage frac sand flow back issues per AAV operating practices

EXPANDED GLACIER GAS PLANT PROVIDES SPARE CAPACITY FOR FUTURE GROWTH & OPERATIONAL FLEXIBILITY  Commissioning of Inlet & New Compressors Began July 17, 2015, tested up to 200 mmcfe/d  Commissioning of two 125 mmcf/d Liquid Extraction Units in September & October 2015  Plant Process Capacity 250 mmcf/d after completion of testing October 2015 (provides 70 mmcfe/d of spare plant capacity for future growth)  Only $15 to $30 million of facilities and pipeline capital required in 2016 & 2017 per Plan  100% ownership of the Glacier plant provides flexibility to control the amount of dry or liquids rich gas being processed to optimize netbacks 15

GROWTH BEYOND 2017 CAN BE ACCOMMODATED ON EXISTING PLANT SITE 100% Owned Glacier Gas Plant – Positioned for Advantage Gas Plant Production Ramp-up Alliance Sales Gas Line TCPL Sales Meter Stations 400 Potential Area Expansion to Potential Area Expansion to 500 MMcf/d Capacity 750 MMcf/d Capacity mmcf/d capacity Expansion to 250 MMcf/d by April 2016 New Dry and Liquid Refrigeration & TCPL NW Gas Compression ALBERTA Main Processing Sales Gas Line Capability 400 mmcf/d pipeline capacity to TCPL Pembina NGL Line sales meter in place Company Land Company Gas Plant TransCanada Pipeline Pembina Pipeline Advantage Pipeline Alliance Pipeline Glacier Gas Plant Site & Proximity to Major Natural Gas & Liquids Pipelines & Rail Access Provides Created in AccuMap™, a product of IHS Significant Expansion Potential Additional 35 mmcf/d TCPL Firm Service for 2018 Confirmed 16