Halkirk / Provost - Viking Opportunity Play Synopsis Viking Sand Profiles: Provost Area Schematics I:\CGY\Geodata\ArcGIS\Project\User\sp_projects\ML_13_0049_Royalty\ML_13_0049_Poster\ML_13_0049_Halkirk_Provost_Viking\ML_13_0049_Halkirk_Provost_Viking.mxd Oil and gas is trapped in Viking aged fine grained deltaic to shoreface sands in the Provost area. These fields, discovered in the 1950’s, have estimated oil in place of over 1.3 billion barrels and despite extensive waterflooding have an estimated recovery factor of only 5%. Horizontal drilling and multistage hydraulic fracturing has resulted in successful redevelopment of these pools in Saskatchewan and the method is being extended into Alberta. Fluid: Oil 34 degree API Area: T32-1W4 to T43-16W4 Active Operators: Karve, Tamarack Seismic: 2-D and 3-D data is available over part of the land base Infrastructure: Gas and oil pipelines and facilities are present in the area Land Base: Checkerboard leases are available in focus areas Play Parameters: Zone Depth: 800-900 m Reservoir Lithology: Sandstone Average Porosity: 20-26% Average Permeability: 1-500 mD Water Saturation: 38% Multi-stage perf and frac completion with lateral lengths from 0.5 mi up to 1.0 mi (ERH) Waterflood upside Economics Operators such as Karve and Tamarack continue to develop the Viking play by moving to extended reach wells (ERH) to further improve econom- ics. Lateral lengths of ¾ to 1 mile are becoming increasingly common as a means to add further value by improving the EUR’s from 40 mboe to 95 mboe. ERH wells are also much more capital efficient with DCET costs ranging from $800 M to $1 MM. As a result, Rates of Return have im- proved markedly with numbers over 100% common, and associated pretax NPV’s exceeding $0.8 - 1 MM. Note: Economic Indicators sourced from publicly available Corporate re- port data. Type Log