TD Securities Calgary Energy Conference July 2014 Forward-Looking - PowerPoint PPT Presentation

TD Securities Calgary Energy Conference July 2014

Forward-Looking Statements Certain statements, estimates and financial information contained in this presentation ("Estimates") constitute forward- looking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the Estimates or results implied or expressed in such forward-looking statements. While presented with numerical specificity, the Estimates are based (i) on certain assumptions that are inherently subject to significant business, economic, regulatory, environmental, seasonal, and competitive uncertainties, contingencies and risks including, without limitation, assumptions of resource, ability to obtain debt and equity financing, capital costs, construction costs, well production performances, operating costs, commodity pricing, differentials, royalty structures, regulatory approvals, and other known and unknown risks, all of which are difficult to predict and many of which are beyond the control of Grizzly Oil Sands ULC ("Grizzly"); and (ii) upon assumptions with respect to future business decisions that are subject to change. There can be no assurance that the Estimates or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the Estimates. Under no circumstances should the inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by Grizzly, or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that Grizzly will achieve or is likely to achieve any particular results. The Estimates are made as of the date of this presentation and Grizzly disclaims any intent or obligation to update publicly or to revise any of the Estimates, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forward-looking statements or information due to the inherent uncertainty therein. There are significant differences in the criteria associated with the classification of reserves, prospective resources and contingent resources. Contingent resources and prospective resources estimates involve additional risks, specifically the risk of not achieving commerciality and exploration risk, respectively, not applicable to reserves estimates. No adjustments for these risks have been made in the groupings of reserves and recoverable resources. All reference to dollars in this presentation should be assumed to refer to Canadian dollars, unless otherwise noted. All references to reserves and or resources represent Grizzly’s interest in reserves and resources prior to the deduction of Crown royalties, unless otherwise noted. Grizzly Oil Sands 2

Investment Highlights • > 800,000 net acres in the Athabasca and Peace River oil sands regions (100% One of the Largest operated, nearly 100% WI) focused on SAGD development Oil Sands Land ~ 3.4 billion bbls of 2P+Contingent Resources (1) across more than 30 project areas • Positions in Alberta • Privately owned by Wexford Capital and Gulfport Energy Corporation • Steam injection at Algar Lake Phase 1 commenced in February, 2014 • All 10 well pairs have achieved steam injection, with current production of Algar Lake ~1,000bbls/d Current Operations • First crude oil shipped from Windell to the U.S. Gulf Coast in June, 2014 • Windell truck-to-rail terminal at Conklin, Alberta is operational to ship Algar Lake Using Rail to and 3rd party oil and receive diluent Consistently • Design and permitting is advanced on the Paulina rail-to-barge terminal project, Access Premium located on the lower Mississippi River in Louisiana Markets • Rail rate contracted with CN for 10 years Repeatable & • Plan to have > 20 projects ready for SAGD development in the next 5 years, with Scalable bitumen production potential of ~170,000 bbbls/d Development • Grizzly’s “ARMS” development model enables repeatable and scalable project Model development, reducing execution and financing risk 1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013 Grizzly Oil Sands 3

Accomplishments since Last Conference • Completed Phase 1 construction and commissioning • “First Oil” was achieved in April Algar Lake • Current bitumen production is ~1,000 bbls/d • Anticipate peak production of ~6,000 bbls/d by mid 2015 • Filed a 12,000 bbl/d regulatory development application in Q4 2013. First round of Supplemental Information Requests (SIRs) have been received May River • Completed an 83 km 2D seismic program in Q1 2014. Processing of the data is well advanced and will be used to support a full field delineation drilling program • Booked 345 mmbbl Contingent Resource (1) • Acquired additional lands in the Peace River area Cadotte • Developed delineation drilling and seismic programs and plans for regulatory work • Constructed and commenced operations at the Windell truck-to-rail terminal • Shipped first crude oil to the U.S. Gulf Coast Rail • Completed design engineering and filed development permits for Paulina rail-to-barge Strategy terminal • Currently in discussions with 3rd parties for transloading business at both terminals 1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013 Grizzly Oil Sands 4

800,000+ Net Acres of Alberta Oil Sands Leases Grizzly Oil Sands Lease Other Oil Sands Lease Alberta Oil Sands Areas Producing Project Under Construction Thermal Project City of Fort McMurray City of Peace River Exposure to All Play Types in Athabasca & Peace River 5

Grizzly Assets • Grizzly has a high quality resource based on Steam Assisted Gravity Drainage (“SAGD”) with additional upside using other reservoir recovery processes • 3.4 billion bbls of 2P + Contingent Resources (1) • Resources primarily located in low risk clastic reservoirs, with some exposure to the carbonates • Two thirds of current lease position remains unexplored, which provides upside potential Potential (1) 2P Reserves Proved Contingent 2P Reserves + Contingent Plateau Clastics (Existing Technologies) (1) Reserves Resources (mmbbls) Resources Production (mmbbls) (mmbbls) (mmbbls) (bbls/d) Operating Algar Lake 67 114 35 149 21,000 Near-Term Development Projects May River 0 157 662 819 120,000 Cadotte 0 0 345 345 34,000 Thickwood 0 0 114 114 18,000 Other Projects Additional Growth Properties 0 0 1,769 1,769 230,000 Total Existing Technologies 67 271 2,925 3,196 423,000 Carbonates (Technology under Development) (1) Additional Growth Properties 0 0 187 187 17,000 TOTAL 67 271 3,112 3,383 440,000 1. Source: GLJ Petroleum Consultants Ltd. as at December 31, 2013; All Contingent Resources herein refer to “Best Estimate”. Grizzly Oil Sands 6

Grizzly Development Portfolio Windell Algar Rail Lake Terminal Phase 1 Algar Lake Phase 2 May River Phase 1 Value Thickwood $ / BOE Cadotte 2 billion barrels of resources on ~30+ properties 1 ST OIL DEVELOPMENT PROJECT CONSTRUCTION PROJECT HARVEST LAND RESOURCE APPLICATION DEVELOPMENT PERFORMANCE CAPTURE DELINEATION FILED APPLICATION RECEIVED DEMONSTRATED TIME TO PRODUCTION DE-RISKING OF ASSETS Creating Value by Advancing Project Development 7

Grizzly Project Development Portfolio 2P Reserves + Production Contingent Resources (2) Potential # ARMS (bbls/d) (1) Property Plants (mmbbls) Status Algar Lake Phase 1 1 6,000 50 Producing Algar Lake Phase 2 1 6,000 50 Regulatory Approval Received Regulatory Application (filed Dec 2013) and 1 st round May River Phase 1 2 12,000 157 of SIRs have been received May River Full Field 12 90,000 662 Plan to file Regulatory Application by December 2016 Plan to file Development Application by December Cadotte 7 50,000 345 2016 Thickwood 1 5,000 50 Regulatory Application filed December 2012 Total 24 170,000 1,314 1. Management Estimates; 2. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013 Attractive Scalable Development Portfolio 8

Grizzly’s ARMS Development Model • Built and commissioned Grizzly’s 1 st ARMS Plant at Algar Lake • Demonstrated that ARMS plant works • Benefits of the ARMS development model include: • Scalable and manageable growth to match reservoir development requirements • Improved redundancy and operability • Lower cost • Lower project execution and financing risk • Working on learnings from the first plant to apply to the next project Grizzly Oil Sands 9

Algar Lake Property ~ 12,000 bbls/d • Commenced reservoir steam injection at T88 Algar Lake Phase 1 in February, 2014 • Steam is currently being circulated T87 through all 10 well pairs, expected to be converted to “SAGD” production mode by the end of August T86 • Current production is ~1,000 bbls/d • T85 Full production ramp up expected by the end of Q2/2015 • GLJ has assigned 114 mmbbls of 2P T84 Reserves and 35 mmbbls of Contingent Resources T83 • Algar Lake Phase 2 regulatory approval is in hand T82 T81 R14 R13 R12 R11 R10 R8W4 Grizzly Oil Sands 10