JANUARY 2013
Combination of pace, avenex and charger to
form a dividend paying corporation
Advisory statements
2
This presentation contains forward-looking information within the meaning of applicable securities laws and is based on the expectations, estimates and projections of management of each of Charger, Pace and AvenEx as
of the date of this presentation, unless otherwise stated. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking information. More particularly and without limitation, this presentation contains forward-looking information concerning: the anticipated benefits of the Merger to
the shareholders of each of Charger, Pace and AvenEx, including anticipated synergies; anticipated future production, operating netbacks, cash flow, capital expenditures, dividends, payout ratios, decline rates,
development capital efficiencies, net debt to cash flow, reserve life index, credit facility availability and years of sustaining development available; the timing and anticipated receipt of required regulatory, court and
shareholder approvals for the transaction; the ability of each of Charger, Pace and AvenEx to satisfy the other conditions to, and to complete, the Merger including the Elbow River Sale; the anticipated timing of the joint
information circular regarding the Merger; the holding of the shareholder meetings of each of Charger, Pace and AvenEx; the anticipated dividend payments of Spyglass following closing and the closing of the Merger.
Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may
not be appropriate for other purposes, such as making investment decisions.
In respect of the forward-looking information and statements concerning the anticipated benefits and completion of the proposed Merger and the anticipated timing for completion of the Merger, each of Charger, Pace and
AvenEx has provided such in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the time required to prepare and mail shareholder meeting materials, including the
required information circular; the ability of each of Charger, Pace and AvenEx to receive, in a timely manner, the necessary regulatory, court, shareholder, stock exchange and other third party approvals, including but not
limited to the receipt of applicable competition approvals; the ability of each of Charger, Pace and AvenEx to satisfy, in a timely manner, the other conditions to the closing of the Merger; and expectations and assumptions
concerning, among other things: commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; future production rates; the sufficiency of budgeted
capital expenditures in carrying out planned activities; and the availability and cost of labour and services.
The anticipated dates provided may change for a number of reasons, including unforeseen delays in preparing meeting materials, inability to secure necessary shareholder, regulatory, court or other third party approvals in
the time assumed or the need for additional time to satisfy the other conditions to the completion of the Merger. Accordingly, readers should not place undue reliance on the forward-looking information contained in this
presentation. In respect of the forward-looking information, including the anticipated dividend payments of Spyglass following closing, each of Charger, Pace and AvenEx has provided such in reliance on certain
assumptions that it believes are reasonable at this time, including assumptions in respect of: prevailing commodity prices, margins and exchange rates; that each of Charger's, Pace's and AvenEx's future results of
operations will be consistent with past performance and management expectations in relation thereto; the continued availability of capital at attractive prices to fund future capital requirements relating to existing assets and
projects, including but not limited to future capital expenditures relating to expansion, upgrades and maintenance shutdowns; the success of growth projects; future operating costs; that counterparties to material
agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; and that there are no unforeseen material construction or other costs related to current
growth projects or current operations.
Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which each of Charger, Pace and AvenEx operates in general such as: operational risks; delays or
changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks;
competition; failure to realize the anticipated benefits of the Merger and to successfully integrate each of Charger, Pace and AvenEx; ability to access sufficient capital from internal and external sources; and changes in
legislation, including but not limited to tax laws and environmental regulations. Risks and uncertainties inherent in the nature of the Merger include the failure of each of Charger, Pace and AvenEx to obtain necessary
shareholder, regulatory, court and other third party approvals, or to otherwise satisfy the conditions to the Merger, in a timely manner, or at all. Failure to so obtain such approvals, or the failure of each of Charger, Pace
and AvenEx to otherwise satisfy the conditions to the Merger, may result in the Merger not being completed on the proposed terms, or at all.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations or financial results of each of Charger, Pace and AvenEx, and the combined
company, are included in reports on file with applicable securities regulatory authorities, including but not limited to; the Annual Information Form for the year ended December 31, 2011 for each of Charger, Pace and
AvenEx which may be accessed on their respective SEDAR profiles at www.sedar.com.
Any financial outlook or future oriented financial information in this presentation, as defined by applicable securities legislation, has been approved by management of Charger, Pace and AvenEx. Such financial outlook or
future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of Spyglass and its anticipated business activities for the
twelve months following the closing of the Merger.
The forward-looking information contained in this presentation is made as of the date hereof and each of Charger, Pace and AvenEx undertake no obligation to update publicly or revise any forward-looking information,
whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The production type curves used in this presentation are constructed from well data representing only those wells deemed to be most indicative of the go-forward wells which Spyglass intends to develop. These type
curves are for illustrative purposes of potential future performance only and do not constitute a guarantee of future well performance in the areas which they describe.
Boes are presented on the basis of one Boe for six Mcf of natural gas. Disclosure provided herein in respect of Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf:1 Bbl is based on an
energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
Creating a balanced
dividend-paying producer
3
The combination of Pace (“PCE”), AvenEx (“AVF”), and Charger (“CHX”) will create a cash
distributing producer with a balanced commodity portfolio
Spyglass will implement a $0.03 monthly cash dividend upon closing
• Creates long term value for shareholders through cash distributing model
• Initial implied yield
– 10.8% based on AvenEx closing share price prior to announcement ($3.32)
– 13.0% based on AvenEx closing share price on January 5, 2013 ($2.77)
• Additional value potential with yield compression
Balanced commodity portfolio, a strong management team and a sustainable yield model
• 12-month production averaging ~18,000 boe/d (~52% oil and liquids) (1)
• Management team with a track record of creating shareholder value in a dividend model
• Mature, low decline (~20%) producing assets coupled with capital efficient light oil development
(~$25,000 / boe/d) provide the scale, stability and low-risk running room to support a sustainable
yield model
Spyglass is well positioned with strong financial flexibility
• ~$120 million of available credit capacity upon closing (~30% availability)
• Potential to monetize non-core assets with minimal impact on cash flow
(1) Based on management estimates pro forma the transaction and implementation of a cash distributing model. First 12-months
commencing on the closing date of the Merger.
Spyglass will have an extensive inventory of low-risk, high-return drilling opportunities
Strategic Rationale
4
• Low decline light & medium oil assets
• Size and efficient operating scale
• Undervalued as a growth entity
• Diverse asset base
• Cash and balance sheet capacity after
$80 mm sale of Elbow River Marketing
• Low decline oil assets
• Gas growth inventory
• Low risk, large scale light oil development
• Large land base
• Management with yield experience
• Experience with Pace assets
• Sustainable dividend paying corp. with an
attractive total return proposition
• Low decline base production, balanced
commodity profile
• Large inventory of capital efficient light oil
development opportunities
• Proven management team
• G&A synergies
• Liquidity, with $120 mm of unused bank lines
• Diverse, low risk, efficient asset base
• Potential for asset rationalization
• Implement DRIP program
Transaction overview
5
Share Exchange
Other Key Terms
Management &
Board
Transaction
Overview
1.30 Spyglass shares for each outstanding common share of Pace
1.00 Spyglass share for each outstanding common share of AvenEx
0.18 Spyglass shares for each outstanding Class A share of Charger
Spyglass will be led by the current Charger team
• Tom Buchanan, CEO & Director
• Dan O’Byrne, President
The Board will consist of 8 existing directors from the parties
• Randy Findlay will serve as an Independent Chair
Break fee of 2.5% of enterprise value payable to other two parties
Credit facility of $400 million (~$280 million drawn)
In conjunction with the Merger, AvenEx has reached a binding agreement for the
cash sale of its Elbow River Marketing business
• Expected to close in February 2013
The combination of AvenEx, Charger and Pace will create a cash distributing
producer with a balanced commodity portfolio
Spyglass will implement a $0.03 monthly cash dividend at closing
• Target dividend payout of 35% to 40% of cash flow (100-115% all-in payout)
• Considering implementing a dividend reinvestment plan (DRIP)
Approvals &
Timing
Customary approvals required, including the approval of at least 662/3% of
shareholders voting at each of the parties’ respective meetings
Anticipated to close in mid February 2013
Subject to closing the sale of AvenEx’s Elbow River Marketing business
Management TEAM
6
Dan O’Byrne
President
Kelly Cowan
VP, Corporate
Development & Land
Mark Walker
VP, Finance & CFO
Tom Buchanan
CEO & Director
30+ years of diverse experience in the oil and natural gas sector
Recently as Executive VP & COO of Provident Energy Trust
Served as Division VP for Nexen Inc. and numerous executive positions with
Canadian Occidental
23+ years of experience in oil and gas finance and accounting
Recently as SVP Finance & CFO of Provident Energy Trust
30+ years of experience in the oil and gas sector
Recently as CEO of Churchill Energy Inc.
Co-founder, SVP & COO of Founders Energy Ltd., which was converted to Provident
Energy Trust in 2001
30+ years of experience in the oil and natural gas sector
Recently as President & CEO and Director of Provident Energy Trust
Co-founder, President & CEO of Founders Energy Ltd., which was converted to
Provident Energy Trust in 2001
Currently a Director of Pace Oil & Gas Ltd. , Pembina Pipeline Corporation,
Athabasca Oil Corp., and Hawk Exploration Ltd
Dan Fournier
General Counsel &
Corporate Secretary
30+ years as a Partner with Blakes Calgary office, and is currently a member of
Blakes energy financial services group
Advised on the structuring of numerous private and public energy financings
John Milford
VP, Exploration &
Development
30+ years of experience as a petroleum geologist
Founded and served in a Director / Executive role for a number of private oil and gas
companies including Predator Corporation, Primal Energy, and Mojo Energy
BOARD OF DIRECTORS
7
Randy Findlay
Independent Chair
- Charger -
Jeff Smith
- Pace -
Mike Shaikh
- Charger & Pace -
Tom Buchanan
CEO & Director
- Charger & Pace -
Director of Charger Energy Corp., Canadian Helicopters Group Inc., Pembina
Pipeline Corporation, Superior Plus Corp., Whitemud Resources Inc., EllisDon Inc.,
Summerland Energy Inc. and SeaNG Ltd.
Director of Charger Energy Corp., Pace Oil and Gas Ltd. and Hawk Exploration Ltd.;
Former member of the board of the ASC (2003-2006)
Director of Pace Oil & Gas Ltd. and Pembina Pipeline Corporation
Chairman & CEO of Charger Energy Corp.
Director of Pace Oil & Gas Ltd., Pembina Pipeline Corporation, Athabasca Oil Corp.,
and Hawk Exploration Ltd.
Fred Woods
- Pace -
Director, President & CEO of Pace Oil & Gas Ltd.
Former Director, President & CEO of Midnight Oil Exploration Ltd., Daylight Energy
Ltd. (Chairman) and TriOil Resources Ltd.
John Wright
- Charger-
President, CEO and Director of Petrobank Energy and Resources Ltd., Chairman
and CEO of PetroBakken Energy Ltd. and Chairman of Petrominerales Ltd., Director
of Hawk Exploration Ltd., and Director of Charger Energy Corp.
Dennis Balderston
- Avenex - Director of AvenEx Energy Corp, Condor Petroleum Inc. and Suroco Energy Inc.
Gary Dundas
- Avenex -
VP, Finance & CFO of AvenEx Energy Corp.
Director of Avenex Energy Corp., Direct Cash Payments Inc., Athabasca Oil
Corporation, Canadian International Oil Corp. Fraction Energy Services
Key attributes &
sustainability features
8
(1) Reserves from reserve reports for each company as of December 31, 2011 and the updated GLJ report on certain properties for Charger as of May 31, 2012 adjusted for AvenEx and Charger minor
dispositions in 2012 and adjusted for 2012 production to October 31, 2012 as forecast in the December 2011 reserve reports.
(2) Pro forma net debt and working capital incorporates cash proceeds from the disposition of Elbow River Marketing and estimated transaction costs and excludes risk management assets and liabilities
as of the closing date of the transaction.
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Presentation Tables.xlsx
Sheet: PR Table
Range: $C$3:$E$14
Pro Forma Operational
Current Production [boe/d] 18,000
% Oil & Liquids [%] 45%
Total Proved Reserves (1) [MMboe] 57.5
Total Proved plus Probable Reserves (1) [MMboe] 93.9
Undeveloped Land (Net) [Acres] 645,000
Pro Forma Financial
Shares Outstanding [MM] 129
Net Debt and Working Capital (2) [$MM] $280
Credit Facility Capacity [$MM] $400
Estimated Tax Pools [$MM] $900
9
Key attributes & sustainability features
(Cont’d)
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Presentation Tables.xlsx
Sheet: Sheet2
Range: $C$21:$E$32
(1) 12-months commencing from closing date of the Merger, currently anticipated to be in mid-February 2013.
(2) Commodity price assumptions: Edm Light C$80.00 to C$86.00, corporate realized crude oil and liquids price C$71.36 to C$76.80 at the wellhead, AECO $3.30 / Mcf
(3) Commodity price sensitivities: a $1.00/bbl change in realized crude oil prices, results in a $2.2 million change in annualized cash flow; a $0.50/Mcf change in natural gas
prices, results in an $6.0 million change in annualized cash flow.
(4) Commodity price sensitivities: a $1.00/bbl change in realized crude oil prices, results in a $2.2 million change in annualized cash flow; a $0.50/Mcf change in natural gas
prices, results in a $6.0 million change in annualized cash flow.
12-Month Outlook (1)(2)
12-Month Production Forecast [boe/d] 18,000
% Oil & Liquids [%] 52%
Operating Netback [$/boe] $21 - $23
12-Month Cash Flow Forecast (3)(4) [$MM] $115 - $130
Capital Expenditures [$MM] $80 - $90
Dividend Features & Sustainability Criteria
Annualized Dividend per Share [$/share] $0.36
Payment Frequency [Period] Monthly
Dividend Payout Ratio [%] 35% - 40%
All-In Payout Ratio [%] 100% - 115%
Base Decline Rate [%] 20%
Development Capital Efficiencies [$/boe/d] $25,000
Pro Forma Net Debt to Cash Flow [x] 2.2x - 2.4x
Reserve Life Index [Years] 14
Expected Credit Facility Availability ($400 MM Capacity) [$MM] $120
Light Oil Drilling Inventory (Halkirk, Matziwin, Pembina, Randell, etc.) [Locations] >1,000
Years of Sustaining Development Available [Years] >20
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
ZAR BNP PGF ERF LNV SPY TBE RPL WCP
201
3E
All-I
n P
ayo
ut
Ra
tio
(%
)
Dividends Capex Range
Average: 122%
Peer Benchmarking
all-in payout
10
2013E All-In Payout Ratio (1)(2)(3)(4)
(1) Capex consensus estimates per Capital IQ
(2) Dividend and cash flow estimates per First Call consensus, as available
(3) Assumes Spyglass commences operations on January 1, 2013
(4) Average excludes Spyglass
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Group Charts - Dividend
Analysis - PEBBLE BEACH
v.02 - ROADSHOW
PRES.xlsx
Sheet: Payout (Excl. DRIP)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
A D G E H SPY B F C
Ca
pit
al
Eff
icie
nc
y (
$ / b
oe
/d)
Average: $30,392
0%
5%
10%
15%
20%
25%
30%
35%
H B F G A E SPY D C
De
clin
e R
ate
(%
)
Average: 25%
Peer Benchmarking
capital efficiency & decline rates
11
Capital Efficiency (1)(2)(3) Decline Rate (1)(2)(3)
(1) Peer estimates per TD research
(2) Assumes Spyglass commences operations on January 1, 2013
(3) Average excludes Spyglass
na
na
Exploiting low-risk, light-oil development plays
key to long-term value
Stable, mature, low-decline base supports
dividend model
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Analysis - PEBBLE BEACH
v.02 - ROADSHOW
PRES.xlsx
Sheet: Capital Efficiency
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Group Charts - Dividend
Analysis - PEBBLE BEACH
v.02 - ROADSHOW
PRES.xlsx
Sheet: Decline Rate
$3.45$2.77
$0.48
$3.22
$4.09
$5.32
$4.09
$0.74
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
SPG PCE AVF CHX
Sh
are
Pri
ce
Current Share Price
Highest Peer Yield
Avg Peer Yield
0%
2%
4%
6%
8%
10%
12%
LNV BNP PGF RPL ZAR ERF TBE WCP
Yie
ld (
MR
A)
Average: 8.8%
Peer Benchmarking
current yield & Implied Trading Levels
12
Current Yield
An analysis of dividend paying peer yields would suggest an implied Spyglass share price
in the range of $3.22 to $4.09 per share
Implied Share Price
File: SPYGLASS_v2.0.MAP Datum: NAD27 Projection: Stereographic Center: N54.61689 W113.26251 Created in AccuMap™, a product of IHS
Light Oil focus areas
13
Randell Slave Point
& Gilwood
Pembina
Cardium
Halkirk-
Provost
Viking
Southern Alberta
Multi-zone
Legend
Pace
AvenEx
Charger Dixonville
Montney
$80 - $90 Million Capital Program
Area
Proposed Capex
Allocation
Halkirk-Provost Viking 30%
Southern Alberta Multiple Zones (Pekisko and Other) 20%
Randell Slave Point and Gilwood 20%
Pembina Cardium 10%
Other 20%
Total 100%
Underpinning the Model –
Low Decline, Balanced Production Base
14
Company Core Area
Q3-2012 Production (boe/d)(1)
Q3-2012 Oil & Liquids
Q3-2012 Op Costs ($/boe)
Q3-2012 Netback ($/boe)(2)
Est. Base Decline Rate
PCE Southern AB 4,591 48% 19.76 16.76 25%
PCE Dixonville 3,185 89% 12.53 29.71 11%
PCE Northwest AB 3,065 19% 13.39 5.91 18%
PCE Deep Basin 1,206 5% 6.95 6.29 22%
PCE Peace River Arch 634 55% 21.83 15.94 30%
AVF BC 930 1% 9.39 2.13 13%
AVF Northern AB 1,131 67% 16.22 25.77 20%
AVF Southern AB(3) 667 83% 33.84 21.18 12%
AVF Saskatchewan 404 99% 26.78 33.03 10%
AVF Royalty Volumes 36 86% - - -
CHX Halkirk-Provost 1,106 65% 21.95 26.86 34%
CHX Peace River Arch 1,481 17% 10.62 12.40 23%
CHX Drumheller 441 8% 6.40 8.65 16%
CHX Royalty Volumes 111 95% - - -
Pro Forma Total / Weighted Avg 18,988 47% 15.65 16.74 20%
(1) Pro forma current production estimated at approximately 18,000 boe/d, 45% oil and liquids.
(2) Excludes hedging gains and losses.
(3) AVF production excludes central AB disposition in Q4 2012. Southern AB production includes remaining 99 boe/d (31% liquids) of remaining central AB production.
Sustaining the Model –
Low Risk, High Return Development Portfolio
15
Development Plays Unrisked Single Well Economic Indicators(1)
Prospective Locations(2)
EUR (Mboe)
Capex ($MM) % Oil
30 day IP (boe/d)
1st yr Op Costs
($/boe)
1st yr Netback ($/boe)
NPV at 10% ($MM)
Capital Efficiency ($/boed)(5)
IRR (btax)
F&D Costs
($/boe)
Provost Viking Long Reach(3) 425 143 1.8 70% 128 7.95 38.99 2.2 22,397 53% 12.24
Provost Viking Short Reach(3) 106 107 1.4 70% 85 8.38 40.80 1.6 27,389 46% 13.32
Twining Pekisko 7 191 3.0 65% 168 8.33 34.14 1.6 28,511 27% 15.74
Pembina Cardium 11 60 2.3 100% 169 12.17 75.67 1.2 30,417 69% 38.33
Randell Slave Point 22 90 2.6 100% 138 13.03 72.43 1.4 31,988 54% 28.89
Randell Gilwood 16 70 1.7 100% 135 13.37 72.09 1.5 22,500 146% 23.57
Noel Cadomin 93 448 5.0 0% 982 4.16 15.96 1.1 8,995 27% 11.17
Matziwin Pekisko 78 134 2.3 93% 103 7.23 64.80 2.0 31,186 56% 17.18
Elmworth Commingled 5 467 5.0 0% 641 2.56 14.87 0.6 14,205 14% 10.70
Other(4) 281
Total 1,044
(1) Economic indicators based on evaluations at consultant's average October 2012 price forecasts with an effective date, investment date and start of production date of January 1, 2013.
(2) Includes all primary, secondary and prospective (gross) drilling locations.
(3) Provost Viking economics weighted 75% freehold and 25% crown.
(4) Includes Bellshill Ellerslie, Red Earth, Cranberry, Kitty and Lubicon Slave Point, Wapiti Cardium, Sutton Montney, Southern AB Glauconite and Mannville and others.
(5) Based on 1st year average production.
Proved Developed
Producing, 42%
Proved Undeveloped &
PDNP, 19%
Probable, 39%
Pro Forma Reserves Summary
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Range: $C$3:$I$18
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Sheet: Hedging
Range: $C$3:$I$18
16
Total Proved plus Probable Reserves by Category
Oil (Mbbl)
Nat. Gas
(MMcf)
NGL
(Mbbl)
Total
(Mboe)(2)
Proved Developed Producing 20,921 105,746 798 39,345
% by Product 53% 45% 2%
Total Proved 28,459 166,800 1,240 57,499
% by Product 49% 48% 2%
Total Proved plus Probable 43,059 290,923 2,312 93,858
% by Product 46% 52% 2%
Pro Forma Selected Reserves
Information(1)
as at October 31, 2012(1)
(1) Working interest reserves from reserve reports for Pace, AvenEx and Charger as of
December 31, 2011 and the updated GLJ report on certain properties for Charger as of
May 31, 2012 adjusted for AvenEx and Charger minor dispositions in 2012 and adjusted
for 2012 production to October 31, 2012 as forecast in the December 2011 reserve
reports.
(2) The Company has adopted the standard of 6 Mcf to 1 boe when converting natural gas to
barrels of oil equivalent. Boes may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf :1 boe is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value equivalency at the
wellhead.
2P RLI: ~14 years (based on 18,000 boe/d production)
Pro forma Hedging Summary
Active hedging strategy designed to protect capital program and dividend with
up to 60% of production hedged by volume
17
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Sheet: Hedging
Range: $C$3:$I$18
Commodity Term Type Volume Price
[Floor] [Ceiling]
Oil (C$ WTI) 2013 Fiscal Call (Sold) 100 bbl/d $88.25
Oil (US$ WTI) 2013 Fiscal Call (Sold) 200 bbl/d $72.50
Oil (C$ WTI) 2013 Fiscal Call (Bought) 100 bbl/d $105.00
Oil (US$ WTI) 2013 Fiscal Call (Bought) 200 bbl/d $105.00
Oil (US$ WTI) Jan - Jul 2013 Swap 150 bbl/d $101.05 - $101.05
Oil (C$ WTI) 2013 Fiscal Swap 500 bbl/d $97.00 - $97.00
Oil (C$ WTI) Jan - Mar 2013 Swap 150 bbl/d $101.12 - $101.12
Oil (US$ WTI) Jan - Jul 2013 Swap 200 bbl/d $105.75 - $105.75
Oil (C$ WTI) Feb - Dec 2013 Swap 1,000 bbl/d $92.97 - $92.97
Oil (C$ WTI) Feb - Dec 2013 Swap 1,000 bbl/d $93.49 - $93.49
Natural Gas (C$ AECO) 2013 Fiscal Call (Sold) 3,000 gj/d $7.40
Natural Gas (C$ AECO) 2013 Fiscal Collar 5,000 gj/d $2.75 - $3.38
Natural Gas (C$ AECO) Jan - Mar 2013 Put 3,000 gj/d $1.80
Natural Gas (C$ AECO) 2013 Fiscal Put 1,850 gj/d $2.80
Natural Gas (C$ AECO) 2013 Fiscal Put 1,650 gj/d $3.10
Natural Gas (C$ AECO) Jan - Apr 2013 Swap 5,000 gj/d $2.06 - $2.06
Natural Gas (C$ AECO) 2013 Fiscal Swap 5,000 gj/d $3.06 - $3.06
Natural Gas (C$ AECO) 2013 Fiscal Swap 2,000 gj/d $3.00 - $3.00
Investment Highlights
18
Creation of a Balanced, Dividend-Paying Producer
• $0.03 Monthly Cash Dividend Implemented Upon Closing
Proven Management Team with Track Record of Creating Shareholder
Value
Sustainable Dividend-Paying Model
• Target Dividend Payout of 35% to 40% of Cash Flow (100-115% All-In Payout)
• Mature, Low Decline Producing Assets Coupled With Capital Efficient Light Oil
Development Potential
• Extensive Inventory of Low-risk, High-Return Drilling Opportunities
Pro Forma Growth Entity Well Positioned With Strong Financial Flexibility
• ~$120 million of Available Liquidity Upon Closing
Contact information
19
Suite 2500, 500 – 4th Ave. SW
Calgary, AB T2P 2V6
Tel: (403) 457-1612
Fax: (403) 457-1613
Email: [email protected]
Suite 1700, 250 – 2nd Ave. SW
Calgary, AB T2P 0C1
Tel: (403) 303-8500
Email: [email protected]
Suite 300, 808 – 1st St. SW
Calgary, AB T2P 1M9
Tel: (403) 237-9949
Fax: (403) 237-0903
Email: [email protected]