OIL-FOCUSED US BAKKEN OPERATOR TSXV: PSH | OTCQX: PSHIF ABOUT - PowerPoint PPT Presentation

May 2020 HIGH GROWTH, OIL-FOCUSED US BAKKEN OPERATOR TSXV: PSH | OTCQX: PSHIF

ABOUT PETROSHALE Pure-play North Dakota Bakken producer focused on high-quality acreage HIGH-QUALITY, LIGHT OIL WEIGHTED ASSETS Antelope Area 100% U.S. asset exposure with 71% oil weighting and 86% liquids weighting South Berthold Area Fort Berthold Reservation Existing Leasehold ACREAGE IN HEART OF BAKKEN PLAY Assets focused in most prolific part of North Dakota Bakken / Three Forks and 97% of acreage held by production Primus STACKED OIL PAY & HORIZONTAL LOCATIONS Offer significant runway and long-range development potential Bear Chase with low risk, high growth locations Anderson Island PROVEN TRACK RECORD Jorgenson Demonstrated success with organic production growth and Horse Camp accretive land acquisitions Helen Thunder Cloud STRONG TECHNICAL MANAGEMENT TEAM Extensive operational, financial and acquisition experience with significant 2 equity ownership

INVESTMENT OPPORTUNITY High-quality asset base supports positive cash flows even at depressed commodity prices Light oil weighted assets offer high torque to WTI prices • Track record of production growth, with significant upside potential for o eventual price recovery Not limited by egress constraints or Canadian oil price differentials • Sufficient basin take-away capacity and service provider availability o US$177.5MM borrowing capacity reconfirmed and maturity date • extended until June 2022 Operating netbacks supported by low per unit costs • Strategies in place to further improve margins and reduce overhead costs o Evaluating shutting-in operated production as appropriate to preserve value o Limited capital spending in 2020 with payback driving discretionary • spending 3

CORPORATE SNAPSHOT Market & Capitalization (TSXV: PSH / OTCQX: PSHIF) Q1 2020 Production Weighting Common shares outstanding 187.6 MM Insider ownership of common shares 36% 14% Market capitalization (@ $0.16/share) (1) $30.0 MM Preferred shares redemption value (2) $95 MM Bank Debt (3) $217 MM 15% Enterprise value (4) $342 MM 71% Operations (reserves data as at Dec 31, 2019 (5) ) Q1 2020 avg daily production (86% liquids) 14,275 boe/d Total proved developed producing ; NPV10 25.4 MMboe; US$399 MM Total proved reserves; NPV10 57.5 MMboe; US$753 MM Oil NGLs Gas Total proved plus probable reserves; NPV10 70.5 MMboe; US$923 MM Total oil & liquids (1) Market capitalization is based on total issued & outstanding common shares. (2) Represents the redemption value of the US$75 MM preferred shares as at March 31, 2020 in $CAD based on the fixed exchange rate of 86% CAD/USD 0.795 used to determine the exchange of such preferred shares to common shares. Preferred shares are considered a compound financial instrument for accounting purposes and as a result, a liability component of $95.3MM and an equity component of C$7.5 MM are reflected on our consolidated balance sheet as at March 31, 2020. In May 2020, PSH elected to pay the first quarter dividend in-kind to preserve liquidity which will increase the preferred shares’ redemption value by US$2.25MM (~$3.2MM). (3) Balance as of March 31, 2020 (net of cash on hand). PetroShale’s senior bank facility is US$177.5 MM and as of May 27th, the Company currently has outstanding borrowings of approximately US$154 MM (net of $18.0 MM cash on hand) Total Liquids Production (4) Enterprise value is the sum of market capitalization, preferred shares redemption value and bank debt. 4 (5) Reserves estimates are based on an evaluation of our assets performed by Netherland, Sewell & Associates, Inc. (“NSAI”) all with an effective date of December 31, 2019 and are valued at a 10 percent discount rate and the NSAI December 31, 2019 forecast prices. 4

Q1 2020 HIGHLIGHTS Significant year-over-year growth across key metrics PRODUCTION REVENUE LIQUIDS WEIGHTING 14,275 boe/d 86% $49.1 MM +183% vs Q1/19 +130% vs Q1/19 +2% vs Q1/19 OP COSTS + WORKOVER G&A PER BOE ADJUSTED EBITDA PER BOE $25.0 MM $5.72 /boe $0.72 /boe -34% vs Q1/19 -74% vs Q1/19 +161% vs Q1/19 5 5

COVID-19 RESILIENCY Quick and decisive action to protect the business & employees Protect the business and well-being of all employees and contractors while maintaining • safe operations and business continuity Introduced measures and modified work practices to meet health and safety standards • with no discernible impact on our operations Implemented remote working and work-from-home protocols o Heightened hygiene and disinfection practices, physical distancing, team separation and o staggered work hours Targeting annual cost reductions , including: • Operating cost reductions: ~US$1.8 MM (C$2.4 MM) o G&A cost reductions: ~$700,000, including a 20% reduction of CEO salary, freeze on senior o management salaries and the continued deferral of cash compensation for Board 6

2020 BUSINESS PLAN Shareholder accretion by focusing on additional cost efficiencies, enhanced margins and prudent spending • Evaluating potential production shut-ins to preserve long-term value STABLE PRODUCTION PROFILE • 2020 guidance suspended given current uncertain environment • Capex for balance of 2020 expected to be limited to $6.0MM largely directed to non- operated activities LIMITED CAPITAL SPENDING • Discretionary decisions based on short-term payback in 2020 • Strategies to further reduce operating and G&A costs FOCUS ON EFFICIENCIES & LIQUIDITY • Elected to pay US$1.7MM preferred share dividend in-kind vs cash to preserve liquidity 7 7

TRACK RECORD OF MATERIAL PRODUCTION GROWTH Strong production growth achieved to date with significant upside potential for price recovery 183% PetroShale Average Quarterly Production Production growth Q1 2020 over Q1 2019 Oil (bbls/d): NGLs (bbls/d): Gas (boe/d) Boe/d 16,000 14,000 Production Volumes (boe/d) 12,000 10,000 8,000 6,000 4,000 2,000 0 8 8

2019 RESERVES GROWTH AND VALUE EXPANSION Track record of low-cost reserve additions F&D COSTS (2) PER BOE 2019 RESERVES GROWTH (1) (MMBOE) VS 2018 $13.67 PDP 12% 17% FD&A COSTS (2) PER BOE 70.5 $12.17 PDP 57.5 107% PDP RECYCLE RATIO (3) 2.2x 25.4 F&D 2.5x PDP TP P+P FD&A (1) Reserves estimates are based on an evaluation of our assets performed by Netherland, Sewell & Associates, Inc. (“NSAI”) all with an effective date of December 31, 2019 and are valued at a 10 percent discount rate and the NSAI December 31, 2019 forecast prices. (2) Including change in future development capital 9 (3) Based on 2019 operating netback prior to hedging of $30.30 per boe

SIGNIFICANT DRILL BIT GROWTH OPPORTUNITY Stacked pay serves as a multiplier for drilling locations 10 years of drilling inventory based on 10,000 boe/d of production Allocation of locations by reservoir: 40% Middle Bakken 41% Three Forks 1 19% Three Forks 2 72.3 net 105.4 net locations (1,2) locations (1,2) (1) See “Advisory Statements – Drilling Locations”. Based on independent reserves evaluation as prepared by Netherland, Sewell & Ass ociates Inc.("NSAI") as of December 31, 2019 and adjusted for 2020 activity. (2) Unbooked locations are internal estimates based on the Company’s prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do 10 not have attributed reserves or resources. Of the 72.3 net drilling locations identified herein on 880’ spacing, 47.0 net are proved plus probable locations, and 25.3 net are unbooked locations. Of the 105.4 net drilling locations identified herein on 660’ spacing, 47.0 net are proved plus probable locations, and 58.4 net are unbooked locations. 10

HIGH QUALITY WELL LOCATIONS Sizeable drilling inventory and acreage situated in Antelope Area heart of the Bakken / Three Forks South Berthold Area Fort Berthold Reservation Existing Leasehold PetroShale Future Net Drilling Locations (1)(2) Assumes 880’ Assumes 660’ Primus Area Spacing Spacing Antelope Bear Chase 20.8 29.4 Anderson South Berthold 49.0 72.3 Island Other 2.5 3.8 Jorgenson Horse Camp Total 72.3 105.4 Helen Thunder Cloud (1) Net locations are based on Company interests. (2) See “Advisory Statements – Drilling Locations”. Based on independent reserves evaluation as prepared by Netherland, Sewell & Associates Inc.("NSAI") as of December 31, 2019 and adjusted for 2020 activity. PETROSHALE’S ASSETS ARE OPERATED BY PETROSHALE AND OTHER TOP-TIER COMPANIES ~60% ~30% of net future locations (2) operated by: of net future locations (2) operated by: 11

MARKETING & RISK MANAGEMENT No exposure to egress issues impacting western Canadian operators Current Bakken differentials narrowed to $nil/bbl to $3.00/bbl, reflecting regional production shut-ins • Commissioning of the Dakota Access Pipeline (“DAPL ”) in 2017 significantly narrowed WTI differentials • Capacity expansion at DAPL from 570mbo/d to 1.1mmbo/d by early 2021 • Phillips 66 / Bridger Pipeline announced the construction of the Liberty Pipeline, estimated to be • additional 350mbo/d of new capacity by 2021 Incremental pipeline capacity with • Clearbrook, MN DAPL and others has reduced need for rail transport and narrowed differentials, with 1.3mmbo/d in current excess rail capacity Patoka, IL Differential outlook is Cushing, OK constructive with potential pipeline projects and significant Nederland, TX rail capacity 12