Updating Commodity Price Forecast And A Detailed Discussion On Crude Macro

Updating Commodity Price Forecast And A Detailed Discussion On Crude Macro With the close of 3Q15, we are updating our commodity price forecast. The difference between actuals and our estimates are laid out below. We have also taken this opportunity to revise our price deck, bringing it closer in-line with the strip. Exhibit 1. Quarterly Commodity Price Table 3Q15e 3Q15A Diff % 2Q15A Diff % Exchange rate ($/US$) $0.810 $0.765-6% $0.814-6% WTI (US$/Bbl) $50.00 $46.50-7% $57.93-20% Edmonton Differential (CAD$/Bbl) $3.00 $5.56 85% $2.10 165% Edmonton Par (C$/Bbl) $58.73 $55.19-6% $69.08-20% NYMEX (US$/mmbtu) $3.50 $2.74-22% $2.74 0% AECO Differential (C$/Mcf) $1.32 $0.66-50% $0.68-3% AECO (C$/Mcf) $3.00 $2.91-3% $2.68 9% Source; Beacon Securities Ltd. Estimates, Bloomberg Both spot crude prices and the strip have closely tracked our forecast since the beginning of the year, but given our bearish tone over the next 6-12 months, we have elected to reduce our WTI forecast US$5.00/bbl in 4Q15 and US$7.50/bbl in 2016. We have taken the same approach to Nymex natural gas, reducing 4Q15 and 2016 by US$1.00/mmbtu. This is a much more substantial move than our crude oil revision, but strong supply in the US and calls for a mild winter (i.e. El Nino) imply storage could reach 3.9-4.0 Tcf with relative ease, and little in the way of a structural reprieve (i.e. LNG) until 2017. Exhibit 2. Updated Commodity Price Table PRICING 2015E 2016E Commodity price assumptions Q1 Q2 Q3 Q4e 2015E Q1e Q2e Q3e Q4e 2016E Exchange rate ($/US$) $0.807 $0.814 $0.765 $0.760 $0.786 $0.760 $0.760 $0.760 $0.760 $0.760 WTI (US$/Bbl) $48.57 $57.93 $46.50 $50.00 $50.75 $50.00 $50.00 $55.00 $55.00 $52.50 Edmonton Differential (CAD$/Bbl) $6.89 $2.10 $5.63 $4.00 $4.66 $4.00 $4.00 $4.00 $4.00 $4.00 Edmonton Par (C$/Bbl) $53.29 $69.08 $55.19 $61.79 $59.88 $61.79 $61.79 $68.37 $68.37 $65.08 NYMEX (US$/mmbtu) $2.87 $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 AECO Differential (C$/Mcf) $0.81 $0.68 $0.67 $0.62 $0.70 $0.95 $0.87 $0.95 $1.03 $0.95 AECO (C$/Mcf) $2.74 $2.68 $2.91 $3.00 $2.83 $3.00 $2.75 $3.00 $3.25 $3.00 Source; Beacon Securities Ltd. Estimates, Bloomberg July 6, 2015 Page 1

Exhibit 3a. Crude Oil Forecasts Source; Beacon Securities Ltd. Estimates, Bloomberg Exhibit 3b. Natural Gas Forecasts Source; Beacon Securities Ltd. Estimates, Bloomberg July 6, 2015 Page 2

In Exhibit 4, we present changes to our cash flow estimates and by derivative, our new target prices. Readers will note that our forecast remains below consensus and engineer s price deck our conservatism implies a return to target can be achieved via operational strength, not necessarily a return predicated on a commodity bounce. Exhibit 4. Updated Estimates Table 2015e CF/boe 2016e CF/boe 2015 CF 2016 CF 2015 CFPS 2016 CFPS Target Old Target New Rating BBI n/a n/a $15.78-19% n/a n/a $9.2-19% n/a n/a $0.03-19% $0.45 $0.40 SPEC. BUY BIR $12.34-5% $14.58-17% $176.0-5% $235.0-17% $1.14-5% $1.53-17% $12.50 $10.50 BUY BXO $24.46-4% $26.85-12% $52.1-4% $98.4-12% $1.50-4% $2.12-12% $11.50 $10.50 BUY GXO $29.28 0% $29.34-7% $69.7-1% $42.3-6% $1.53-1% $1.36-6% $11.00 $10.00 BUY KCK $17.44-5% $21.00-8% $19.8-5% $32.8-8% $0.33-5% $0.53-8% $4.75 $4.00 BUY RRX $33.46-4% $40.39-12% $163.7-7% $230.0-16% $0.81-7% $1.14-16% $12.00 $10.50 BUY SKX $15.60-1% $18.10-19% $15.5-1% $19.7-19% $0.52-1% $0.61-19% $3.00 $2.50 SPEC. BUY Source; Beacon Securities Ltd. Estimates Differentials have narrowed as of late, which in combination with a weak CAD, means realized pricing for Canadian producers is stronger than some expect. In 3Q15 however, differentials gapped out due to refinery outages in PADD II cash flow for medium and heavy producers will likely be weaker. Exhibit 5. What The Diff? Source; Bloomberg July 6, 2015 Page 3

Exhibit 6. Days Inventory Headed Higher Source; Bloomberg US Rig Activity and Crude Prices In the past we have spoken about a 0.93 correlation between rig count and crude oil prices, after one applies a 4.5 month delay to the data. In other words, crude prices can precede rig activity with a normalized high degree of certainty, but over the last 10 weeks this correlation has broken down entirely. Exhibit 7 and Exhibit 8, on the next page, illustrates this well we believe the mood in the field is markedly more bearish than it used to be; whereas we would have expected to see rig activity climb up with $60/bbl oil, we now think producers are saving excess cash flow for what could be a difficult winter. July 6, 2015 Page 4

Exhibit 7. Correlating US Rig Activity and Crude Price (WTI) Source; Bloomberg, Baker Hughes Exhibit 8. Rigs Are Slow Learners, Or Are They? Source; Bloomberg, Baker Hughes July 6, 2015 Page 5

US Rig Productivity Mainstream media typically focuses on the gross production decline of ~300,000 bbl/d, which is quite true but it neglects two important facets; firstly, how quickly fracklog (which we estimate at +4,000 wells) can replace lost production when/if breakeven prices are met, and secondly, the marginal productivity of US rigs continues to improve as producers refine their craft. Exhibit 9. Crude Picture Mixed Signals Source; Bloomberg, EIA, Baker Hughes July 6, 2015 Page 6

Exhibit 10. Absolute Production Per Rig Trending Up Source; Bloomberg, EIA, Baker Hughes Productivity per rig continues to trend up on an absolute basis, but even more importantly, when one adjusts the data for rig-activity by basin, the marginal rig productivity is increasing at an increasing rate. Sweet spots are indeed being drilled. Exhibit 11. Rig Activity Weighted Average Productivity Per Rig July 6, 2015 Page 7 Source; Bloomberg, EIA, Baker Hughes

Financial Players Exhibit 12 looks at all non-commercial speculative activity since the beginning of 2014 (individual investors, traders, hedge funds, large financial institutions et al) and we see open interest is still fairly high (blue-right axis) but non-commercial shorts (green-left axis) have reduced their position markedly. With little in the way of upward sentiment, shorts could be fearing something we don t see. Exhibit 12. Non-Commercial Longs/Shorts Trimming Positions Source; CFTC Exhibit 13. Longs/Short Ratio Reversing? Source; CFTC July 6, 2015 Page 8

Longer Term Thesis In Tact We are biased to reiterate much of our thesis from prior commodity pieces, which portends longer term supply destruction in the North American oil market but the timeline is moving further and further out; 1) Sweet spots are finite and quickly depleted at low prices and make no mistake, all producers are drilling their best prospects now. 2) Deep in-the-money hedges (think +$80/bbl) are also finite, and whether it is the end of 2015 or 2016, eventually real world economics are going to layer in and dampen the return on an otherwise financially economic play. 3) Most capital cost savings we are seeing are borrowed efficiencies with the systemic downturn in rig activity once oil ratchets up, we expect service providers to do the same and try and recapture margins that were lost in the interest of keeping market share. Conclusion As it relates to the energy investor, we believe a flight to quality is fully merited in this environment. Our universe is structured around names that score highly on at least three out of our four key questions and can still add to the equity account in a tumultuous commodity price environment, but risk in the sector is still high. There still will be relative winners and losers along that continuum, but none of our covered names are likely to run into leverage problems and growth will likely only be dictated by their cost structure and free cash flow emanating from engine (again, varies by name). Exhibit 14. Comp Sheet Rating Yield Target 4Q15e Production 4Q15/16e YoY Production per Share Growth 2015 Liquids Weighting EV/boe 2014 FDC/boe Total Cap/boe 2015e CF/boe Investor Recycle Ratio 24-month Trailing Corporate Time-topayout (years) 2015e Available Bank Capacity BBI S. BUY n/a $0.45 10 n/a 100% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a BIR BUY n/a $10.50 40,790 16% 14% $3.69 $6.83 $10.52 $12.34 1.2x 3.5 22% 3.5x 1.2x 47% BXO BUY n/a $10.50 8,354 28% 78% $11.74 $8.24 $19.98 $24.46 1.2x n/a 19% 2.0x 1.8x 66% GXO BUY 5% $10.00 3,662 12% 86% $15.91 $6.01 $21.93 $29.28 1.3x n/a 62% 0.6x 2.1x 35% KCK BUY n/a $4.00 3,741 22% 54% $8.25 $8.32 $16.57 $17.44 1.1x 6.1 24% 2.7x 3.0x 73% RRX BUY n/a $10.50 13,621 22% 96% $28.33 $13.15 $41.48 $33.46 0.8x 2.1 63% 0.7x 2.7x 16% SKX S. BUY n/a $2.50 2,688 15% 64% $5.23 $5.18 $10.41 $15.60 1.5x n/a 74% 0.9x 0.5x 17% Average 1.2x 3.9x 44% 1.7x 1.9x 43% Source; Beacon Securities Ltd. Estimates As we illustrate in Exhibit 15a/b below, we believe a sector rotation may be coming as volume is decreasing in consumer staples and technology, while recent news in healthcare may have investors exiting the space. Materials and energy are two of the most depressed sectors, while volumes are surprisingly strong these would be our guess for the next movers in a generalist sector shift. 2015e D/CF EV/PDP NPV10 2015e Debt/PDP July 6, 2015 Page 9

Exhibit 15a. Due For A Sector Rotation? Source; FactSet Exhibit 15b. Due For A Sector Rotation? Source; FactSet July 6, 2015 Page 10

On the following pages, we present updated estimates for all companies currently under coverage. Birchcliff Energy Ltd. P/CF: 3.0 P/CF: 5.2 P/CF: 3.9 6-Oct-15 EV/DACF: 4.5 EV/DACF: 7.8 EV/DACF: 6.1 Debt adj. target price multiple: (0.2) Debt adj. target price multiple: #DIV/0! Debt adj. target price multiple: #DIV/0! 2014 2015E 2016E 1Q 2Q 3Q 4Q 2014 1Q 2Q 3QE 4QE 2015E 1QE 2QE 3QE 4QE 2016E DAILY PRODUCTION Liquids (B/d) 5,339 5,282 5,456 5,621 5,425 5,760 5,370 5,375 5,715 5,555 5,894 6,059 6,242 6,681 6,221 Natural gas (MMcf/d) 158.5 155.4 172.7 192.5 169.9 195.9 198.7 198.9 210.4 201.0 216.5 222.1 228.4 243.3 227.7 BOE production per day (6:1) 31,748 31,178 34,235 37,704 33,734 38,416 38,489 38,525 40,790 39,060 41,981 43,082 44,301 47,228 44,163 Commodity price assumptions Exchange rate (C$/US$) $0.91 $0.92 $0.92 $0.88 $98.24 $0.81 $0.81 $0.76 $0.76 $0.79 $0.76 $0.76 $0.76 $0.76 $0.76 WTI (US$/Bbl) $107.96 109.84 102.14 73.02 $90.76 $48.57 57.93 46.50 50.00 $50.75 $50.00 50.00 55.00 55.00 $52.50 Natural Gas (US$/mmbtu) $4.72 $4.58 $3.95 $3.83 $4.46 $2.87 $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 Company average liquids price (C$/Bbl) $96.80 $102.53 $93.59 $70.16 $90.42 $47.29 $63.30 $50.89 $57.50 $54.68 $57.51 $57.52 $64.11 $64.12 $60.97 Company average gas price (C$/Mcf) $6.10 $4.81 $4.37 $3.91 $79.24 $2.98 $2.86 $3.09 $3.18 $3.03 $3.25 $3.00 $3.25 $3.50 $3.25 UNIT VALUES ($/BOE) Total sales 46.63 41.24 36.86 31.04 38.50 22.28 23.64 23.08 24.46 23.39 24.84 23.56 25.78 27.10 25.38 Royalties (incl ARTC) (4.43) (3.35) (2.63) (1.84) (2.99) (0.83) (0.61) (0.92) (0.98) (0.84) (0.99) (0.94) (1.03) (1.08) (1.02) Transportation (2.48) (2.46) (2.42) (2.40) (2.44) (2.58) (2.46) (2.46) (2.46) (2.49) (2.50) (2.50) (2.50) (2.50) (2.50) Operating expense (5.21) (5.25) (5.06) (5.33) (5.22) (5.11) (4.53) (4.50) (4.50) (4.65) (4.50) (4.50) (4.50) (4.50) (4.50) Operating netback 34.52 30.17 26.76 21.47 27.86 13.75 16.04 15.20 16.52 15.40 16.84 15.62 17.75 19.02 17.36 G & A expense (1.89) (1.91) (1.44) (2.02) (1.81) (1.70) (1.75) (1.69) (1.60) (1.68) (1.59) (1.53) (1.47) (1.38) (1.49) Interest expense (1.70) (1.70) (1.50) (1.42) (1.57) (1.43) (1.69) (1.47) (1.38) (1.49) (1.37) (1.33) (1.28) (1.21) (1.29) Current tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other (cash expenses) 0.00 0.00 0.00 0.91 0.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash flow netback ($/BOE) 30.93 26.57 23.82 18.04 24.47 10.62 13.06 12.03 13.55 12.34 13.89 12.76 15.00 16.43 14.58 Total cash costs ($/BOE) (8.80) (8.86) (8.00) (8.77) (8.60) (8.24) (7.97) (7.66) (7.48) (7.83) (7.45) (7.36) (7.26) (7.09) (7.28) Earnings ($/BOE) 13.82 9.90 9.42 5.16 9.35 (1.01) (1.19) 0.48 1.84 0.07 1.79 0.94 2.62 3.70 2.31 Total revenue ($MM) 133.098 116.963 116.505 107.846 474.412 77.026 82.791 81.799 91.804 333.420 93.839 92.358 105.091 117.751 409.039 Cash flow ($MM) 88.369 75.382 75.030 62.570 301.351 36.720 45.752 42.652 50.831 175.955 52.473 50.007 61.127 71.387 234.994 Net income ($MM) 39.499 28.087 29.665 17.907 115.158 (3.479) (4.174) 1.703 6.908 0.958 6.767 3.691 10.692 16.065 37.216 Net capital spending ($MM) 161.403 75.484 104.363 109.682 450.932 98.539 65.122 53.000 30.000 246.661 57.000 57.000 59.000 77.000 250.000 Net debt ($MM) 524.720 514.637 495.307 545.745 545.745 610.170 632.306 642.654 621.823 621.823 626.350 633.343 631.216 636.829 636.829 D/CF - trailing 1.5x 1.7x 1.7x 2.2x 1.8x 4.2x 3.5x 3.8x 3.1x 3.5x 3.0x 3.2x 2.6x 2.2x 2.7x Weighted average shares outstanding 144.026 145.145 149.594 152.183 147.764 152.243 152.289 152.294 152.294 152.280 152.294 152.294 152.294 152.294 152.294 Weighted average shares fully diluted 147.090 152.623 154.800 155.304 152.483 154.215 154.650 153.928 153.928 154.179 153.928 153.928 153.928 153.928 153.928 EPS basic $0.27 $0.19 $0.20 $0.12 $0.78 ($0.02) ($0.03) $0.01 $0.05 $0.01 $0.04 $0.02 $0.07 $0.11 $0.24 Diluted EPS $0.24 $0.17 $0.17 $0.10 $0.68 ($0.02) ($0.02) $0.01 $0.04 $0.01 $0.04 $0.02 $0.06 $0.09 $0.21 CFPS basic $0.61 $0.52 $0.50 $0.41 $2.04 $0.24 $0.30 $0.28 $0.33 $1.16 $0.34 $0.33 $0.40 $0.47 $1.54 Diluted CFPS $0.60 $0.49 $0.48 $0.40 $1.98 $0.24 $0.30 $0.28 $0.33 $1.14 $0.34 $0.32 $0.40 $0.46 $1.53 Source; Beacon Securities Ltd. Estimates July 6, 2015 Page 11

Blackbird Energy Inc. P/CF: (8.3) P/CF: (20.0) P/CF: 5.5 6-Oct-15 EV/DACF: (2.4) EV/DACF: (14.6) EV/DACF: 5.0 Debt adj. target price multiple: 7.6 Debt adj. target price multiple: 4.8 Debt adj. target price multiple: (0.3) 2014 2015E 2016E Q1 Q2 Q3 Q4 2014 Q1 Q2E Q3E Q4E 2015E Q1E Q2E Q3E Q4E 2016E DAILY PRODUCTION Liquids (B/d) 26 41 48 33 37 12 12 10 10 11 512 474 439 527 488 Natural gas (MMcf/d) 0.1 0.2 0.1 0.1 0.1 - - - - - 7.0 6.5 6.0 7.2 6.7 BOE production per day (6:1) 46 66 59 46 54 12 12 10 10 11 1,684 1,558 1,441 1,733 1,604 Commodity price assumptions Exchange rate (C$/US$) $0.91 $0.92 $0.92 $0.88 $0.91 $0.81 $0.81 $0.76 $0.76 $0.79 $0.76 $0.76 $0.76 $0.76 $0.76 WTI (US$/Bbl) $107.96 109.84 102.14 73.02 $98.24 $48.57 57.93 46.50 50.00 $50.75 $50.00 50.00 55.00 55.00 $52.50 Natural Gas (US$/mmbtu) $4.72 $4.58 $3.95 $3.83 $4.27 $2.87 $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 Company average liquids price (C$/Bbl) $88.19 $84.30 $71.61 $39.18 $70.70 $31.12 $54.08 $40.19 $59.79 #DIV/0! $59.79 $59.79 $66.37 $66.37 $63.07 Company average gas price (C$/Mcf) $4.92 $4.92 $5.04 $4.19 $4.77 $5.07 $2.68 $2.91 $3.00 $3.41 $3.00 $2.75 $3.00 $3.25 $3.00 UNIT VALUES ($/BOE) Total sales 52.80 210.81 61.55 35.81 99.57 139.81 54.08 40.19 59.79 75.36 30.71 29.68 32.74 33.75 31.75 Royalties (incl ARTC) (8.43) (21.40) (4.03) (3.32) (10.07) (5.56) (9.73) (7.23) (2.99) (6.51) (1.54) (1.48) (1.64) (1.69) (1.59) Transportation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Operating expense (68.73) (232.58) (42.87) (53.12) (108.04) (139.81) (40.00) (40.00) (10.00) (60.25) (10.00) (10.00) (10.00) (10.00) (10.00) Operating netback (24.36) (43.17) 14.66 (20.63) (18.53) (5.56) 4.35 (7.04) 46.80 8.61 19.17 18.19 21.10 22.06 20.16 G & A expense (91.02) (226.44) (122.01) (182.85) (160.21) (592.59) (586.08) (695.65) (711.66) (641.40) (4.22) (4.51) (4.83) (4.01) (4.37) Interest expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Current tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other (cash expenses) 0.00 0.00 6.05 22.29 6.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash flow netback ($/BOE) (115.38) (269.61) (129.34) (181.19) (180.05) (598.15) (581.73) (702.70) (664.86) (632.79) 14.95 13.68 16.28 18.04 15.78 Total cash costs ($/BOE) (159.75) (459.02) (164.88) (235.97) (268.25) (732.41) (626.08) (735.65) (721.66) (701.64) (14.22) (14.51) (14.83) (14.01) (14.37) Earnings ($/BOE) (131.04) (586.05) (496.09) 178.34 (303.91) (968.52) (365.84) (440.84) (417.38) (557.82) 4.10 3.31 4.92 6.02 4.62 Total revenue ($MM) 0.218 1.269 0.336 0.151 1.974 0.151 0.059 0.037 0.054 0.301 4.654 4.207 4.340 5.380 18.581 Cash flow ($MM) (0.476) (1.623) (0.706) (0.764) (3.569) (0.646) (0.635) (0.646) (0.598) (2.526) 2.266 1.939 2.158 2.877 9.239 Net income ($MM) (0.541) (3.527) (2.708) 0.752 (6.024) (1.046) (0.399) (0.406) (0.375) (2.226) 0.622 0.470 0.653 0.960 2.704 Net capital spending ($MM) - - (4.126) 20.972 16.846 3.145 (0.050) 9.500 0.500 13.095 10.500 - - 8.000 18.500 Net debt ($MM) (0.074) (0.055) (40.206) (27.028) (27.028) (23.954) (23.369) (13.222) (12.124) (12.124) (3.890) (5.829) (7.986) (2.863) (2.863) D/CF - trailing 0.0x 0.0x 14.2x 8.8x 7.6x 9.3x 9.2x 5.1x 5.1x 4.8x NA NA NA NA NA Weighted average shares outstanding 161.837 157.767 214.688 282.321 204.512 353.732 354.056 354.056 354.056 353.976 354.056 354.056 354.056 354.056 354.056 Weighted average shares fully diluted 161.837 157.767 232.509 297.356 212.794 364.923 359.843 359.843 359.843 361.096 359.843 359.843 359.843 359.843 359.843 EPS basic ($0.00) ($0.02) ($0.01) $0.00 ($0.03) ($0.00) ($0.00) ($0.00) ($0.00) ($0.01) $0.00 $0.00 $0.00 $0.00 $0.01 Diluted EPS ($0.00) ($0.02) ($0.01) $0.00 ($0.02) ($0.00) ($0.00) ($0.00) ($0.00) ($0.01) $0.00 $0.00 $0.00 $0.00 $0.01 CFPS basic ($0.00) ($0.01) ($0.00) ($0.00) ($0.02) ($0.00) ($0.00) ($0.00) ($0.00) ($0.01) $0.01 $0.01 $0.01 $0.01 $0.03 Diluted CFPS ($0.00) ($0.01) ($0.00) ($0.00) ($0.02) ($0.00) ($0.00) ($0.00) ($0.00) ($0.01) $0.01 $0.01 $0.01 $0.01 $0.03 Source; Beacon Securities Ltd. Estimates Boulder Energy Ltd. P/CF: 3.3 P/CF: 2.4 6-Oct-15 EV/DACF: 6.4 EV/DACF: 3.6 Debt adj. target price multiple: 2.5 Debt adj. target price multiple: 1.6 2015E 2016E Q2 Q3E Q4E 2015E Q1E Q2E Q3E Q4E 2016E DAILY PRODUCTION Liquids (B/d) 5,001 6,500 6,650 4,561 7,669 7,651 8,115 8,544 7,997 Natural gas (MMcf/d) 10.2 10.0 10.2 7.6 11.8 11.7 12.4 13.1 12.2 BOE production per day (6:1) 6,702 8,167 8,354 5,835 9,628 9,606 10,185 10,721 10,038 Commodity price assumptions Exchange rate (C$/US$) $0.81 $0.76 $0.76 $0.79 $0.76 $0.76 $0.76 $0.76 $0.76 WTI (US$/Bbl) 57.93 46.50 50.00 $50.75 $50.00 50.00 55.00 55.00 $52.50 Natural Gas (US$/mmbtu) $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 Company average liquids price (C$/Bbl) $64.67 $51.19 $57.79 $57.30 $58.79 $58.79 $65.37 $65.37 $62.24 Company average gas price (C$/Mcf) $2.70 $2.91 $3.00 $2.84 $3.30 $3.05 $3.30 $3.55 $3.30 UNIT VALUES ($/BOE) Total sales 55.06 46.47 51.25 50.66 50.86 50.55 56.11 56.42 53.62 Royalties (incl ARTC) (10.29) (10.63) (11.92) (11.00) (11.70) (11.63) (12.90) (12.98) (12.33) Transportation (2.87) (2.00) (2.00) (2.25) (2.00) (2.00) (2.00) (2.00) (2.00) Operating expense (9.08) (9.50) (9.50) (9.38) (9.50) (9.50) (9.50) (9.50) (9.50) Operating netback 32.83 24.34 27.83 28.03 27.66 27.42 31.70 31.94 29.79 G & A expense (2.02) (1.73) (1.69) (1.80) (1.50) (1.49) (1.39) (1.32) (1.42) Interest expense (2.19) (1.62) (1.59) (1.77) (1.55) (1.61) (1.49) (1.43) (1.52) Current tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other (cash expenses) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash flow netback ($/BOE) 28.64 20.99 24.54 24.46 24.61 24.33 28.82 29.20 26.85 Total cash costs ($/BOE) (13.29) (12.85) (12.79) (12.95) (12.55) (12.60) (12.38) (12.25) (12.44) Earnings ($/BOE) (0.66) 0.61 2.82 1.04 2.86 2.68 5.47 5.70 4.25 Total revenue ($MM) 30.402 34.918 39.388 104.708 44.066 44.187 52.573 55.648 196.474 Cash flow ($MM) 17.464 15.771 18.862 52.097 21.328 21.263 27.005 28.797 98.393 Net income ($MM) (0.403) 0.461 2.164 2.222 2.479 2.344 5.124 5.623 15.570 Net capital spending ($MM) 21.393 22.500 22.500 66.393 42.000 17.000 29.000 30.000 118.000 Net debt ($MM) 140.989 138.342 141.980 141.980 162.652 158.389 160.384 161.587 161.587 D/CF - trailing 2.0x 2.2x 1.9x 2.7x 1.9x 1.9x 1.5x 1.4x 1.6x Weighted average shares outstanding 45.517 46.468 46.468 34.773 46.468 46.468 46.468 46.468 46.468 Weighted average shares fully diluted 45.637 46.468 46.468 34.803 46.468 46.468 46.468 46.468 46.468 EPS basic ($0.01) $0.01 $0.05 $0.06 $0.05 $0.05 $0.11 $0.12 $0.34 Diluted EPS ($0.01) $0.01 $0.04 $0.05 $0.05 $0.05 $0.11 $0.12 $0.32 CFPS basic $0.38 $0.34 $0.41 $1.50 $0.46 $0.46 $0.58 $0.62 $2.12 Diluted CFPS $0.38 $0.34 $0.41 $1.50 $0.46 $0.46 $0.58 $0.62 $2.12 Source; Beacon Securities Ltd. Estimates July 6, 2015 Page 12

Granite Oil Corp. P/CF: 2.9 P/CF: 3.7 P/CF: 4.1 6-Oct-15 EV/DACF: 3.7 EV/DACF: 4.2 EV/DACF: 4.9 Debt adj. target price multiple: 1.0 Debt adj. target price multiple: 0.6 Debt adj. target price multiple: 1.0 2014 2015E 2016E Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3E Q4E 2015E Q1E Q2E Q3E Q4E 2016E DAILY PRODUCTION Liquids (B/d) 7,308 8,583 10,061 10,090 9,021 9,779 5,705 3,350 3,662 5,601 3,784 3,900 4,011 4,116 3,954 Natural gas (MMcf/d) 12.4 13.0 12.3 16.5 13.5 15.1 7.2 - - 5.5 - - - - - BOE production per day (6:1) 9,372 10,744 12,110 12,842 11,279 12,296 6,910 3,350 3,662 6,522 3,784 3,900 4,011 4,116 3,954 Commodity price assumptions Exchange rate (C$/US$) $0.91 $0.92 $0.92 $0.88 $0.91 $0.81 $0.81 $0.76 $0.76 $0.79 $0.76 $0.76 $0.76 $0.76 $0.76 WTI (US$/Bbl) $107.96 109.84 102.14 73.02 $98.24 $48.57 57.93 46.50 50.00 $50.75 $50.00 50.00 55.00 55.00 $52.50 Natural Gas (US$/mmbtu) $4.72 $4.58 $3.95 $3.83 $4.27 $2.87 $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 Company average liquids price (C$/Bbl) $89.61 $95.50 $88.32 $69.04 $84.85 $47.95 $62.02 $39.19 $45.79 $49.85 $51.79 $51.79 $58.37 $58.37 $55.20 Company average gas price (C$/Mcf) $6.00 $5.02 $4.39 $3.84 $4.81 $2.84 $2.68 $2.92 $3.00 $2.86 $3.00 $2.75 $3.00 $3.25 $3.00 UNIT VALUES ($/BOE) Total sales 75.93 79.52 77.65 63.16 73.58 47.89 61.60 64.00 65.73 56.12 55.36 55.25 60.06 60.02 57.76 Royalties (incl ARTC) (18.74) (18.84) (16.25) (13.78) (16.67) (9.01) (14.67) (11.37) (13.28) (11.41) (13.98) (13.98) (15.76) (15.76) (14.90) Transportation (1.69) (1.92) (1.98) (2.97) (2.19) (3.25) (2.67) (2.60) (2.60) (2.92) (2.60) (2.60) (2.60) (2.60) (2.60) Operating expense (10.18) (11.00) (9.77) (7.45) (9.48) (7.37) (7.31) (7.50) (7.50) (7.39) (7.50) (7.50) (7.50) (7.50) (7.50) Operating netback 45.32 47.76 49.64 38.97 45.25 28.26 36.95 42.53 42.36 34.40 31.28 31.17 34.20 34.16 32.75 G & A expense (2.22) (1.99) (1.44) (2.45) (2.02) (2.14) (7.35) (2.76) (2.52) (3.65) (2.50) (2.40) (2.30) (2.24) (2.36) Interest expense (1.05) (1.63) (0.93) (1.19) (1.20) (1.19) (2.19) (1.28) (1.14) (1.46) (1.13) (1.11) (1.04) (0.97) (1.06) Current tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other (cash expenses) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash flow netback ($/BOE) 42.05 44.15 47.27 35.36 42.03 24.96 27.34 38.50 38.69 29.28 27.65 27.66 30.85 30.94 29.34 Total cash costs ($/BOE) (13.45) (14.62) (12.14) (11.09) (12.70) (10.70) (16.85) (11.54) (11.17) (12.50) (11.13) (11.00) (10.85) (10.71) (10.92) Earnings ($/BOE) 10.29 18.55 18.94 23.96 18.52 1.59 228.43 12.09 12.21 64.37 5.36 5.37 7.35 7.40 6.41 Total revenue ($MM) 59.858 78.792 92.576 97.190 328.416 50.231 27.592 19.725 22.146 119.694 18.851 19.607 22.161 22.729 83.348 Cash flow ($MM) 35.536 43.167 52.720 41.772 173.195 27.623 17.191 11.865 13.035 69.714 9.415 9.817 11.384 11.718 42.335 Net income ($MM) 8.682 18.133 21.106 28.312 76.233 1.761 143.635 3.726 4.113 153.235 1.826 1.906 2.712 2.804 9.248 Net capital spending ($MM) 72.312 74.288 84.985 64.964 296.549 37.060 11.956 8.000 12.000 69.016 8.000 8.000 8.000 8.000 32.000 Net debt ($MM) 155.517 116.064 148.329 171.347 171.347 180.784 45.047 43.164 44.190 44.190 44.814 45.034 43.688 42.008 42.008 D/CF - trailing 1.1x 0.7x 0.7x 1.0x 1.0x 1.6x 0.7x 0.9x 0.8x 0.6x 1.2x 1.1x 1.0x 0.9x 1.0x Weighted average shares outstanding 81.932 84.654 88.832 86.860 85.592 88.974 30.044 30.342 30.342 44.725 30.342 30.342 30.342 30.342 30.342 Weighted average shares fully diluted 84.741 87.772 91.958 90.671 88.810 90.687 30.118 31.394 31.394 45.696 31.159 31.159 31.159 31.159 31.159 EPS basic $0.11 $0.21 $0.24 $0.33 $0.89 $0.02 $4.78 $0.12 $0.14 $3.43 $0.06 $0.06 $0.09 $0.09 $0.30 Diluted EPS $0.10 $0.21 $0.23 $0.29 $0.86 $0.02 $4.56 $0.12 $0.13 $3.21 $0.06 $0.06 $0.09 $0.09 $0.30 CFPS basic $0.43 $0.51 $0.59 $0.48 $2.02 $0.31 $0.57 $0.39 $0.43 $1.56 $0.31 $0.32 $0.38 $0.39 $1.40 Diluted CFPS $0.42 $0.49 $0.57 $0.46 $1.95 $0.30 $0.57 $0.38 $0.42 $1.53 $0.30 $0.32 $0.37 $0.38 $1.36 Source; Beacon Securities Ltd. Estimates Kicking Horse Energy Inc. P/CF: 7.8 P/CF: 7.7 P/CF: 4.7 6-Oct-15 EV/DACF: 13.2 EV/DACF: 9.4 EV/DACF: 6.2 Debt adj. target price multiple: 3.2 Debt adj. target price multiple: 2.4 Debt adj. target price multiple: 1.8 2014 2015E 2016E Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3E Q4E 2015E Q1E Q2E Q3E Q4E 2016E DAILY PRODUCTION Liquids (B/d) 294 244 242 562 336 999 1,685 1,983 1,987 1,667 2,165 2,207 2,246 2,408 2,257 Natural gas (MMcf/d) 1.4 1.2 0.9 2.8 1.6 5.6 8.1 10.5 10.5 8.7 11.6 11.8 12.1 13.1 12.1 BOE production per day (6:1) 531 450 400 1,025 602 1,924 3,034 3,734 3,741 3,115 4,098 4,182 4,260 4,583 4,282 Commodity price assumptions Exchange rate (C$/US$) $0.91 $0.92 $0.92 $0.88 $0.91 $0.81 $0.81 $0.76 $0.76 $0.79 $0.76 $0.76 $0.76 $0.76 $0.76 WTI (US$/Bbl) $107.96 109.84 102.14 73.02 $98.24 $48.57 57.93 46.50 50.00 $50.75 $50.00 50.00 55.00 55.00 $52.50 Natural Gas (US$/mmbtu) $4.72 $4.58 $3.95 $3.83 $4.27 $2.87 $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 Company average liquids price (C$/Bbl) $108.85 $111.74 $95.41 $65.82 $88.78 $47.75 $63.24 $41.19 $47.79 $49.70 $51.79 $51.79 $58.37 $58.37 $55.21 Company average gas price (C$/Mcf) $6.74 $5.67 $4.85 $4.11 $5.34 $3.29 $3.30 $3.54 $3.62 $3.44 $3.50 $3.25 $3.50 $3.75 $3.50 UNIT VALUES ($/BOE) Total sales 78.78 76.61 70.15 47.30 63.43 34.27 43.96 34.82 38.21 37.99 37.27 36.54 40.71 41.35 39.05 Royalties (incl ARTC) (4.06) (6.59) (5.21) (3.07) (4.30) (2.12) (2.09) (1.91) (2.13) (2.05) (2.24) (2.19) (2.44) (2.48) (2.34) Transportation (8.10) (4.57) (3.71) (6.40) (5.98) (6.64) (4.56) (4.50) (4.00) (4.69) (4.00) (4.00) (4.00) (4.00) (4.00) Operating expense (7.18) (13.06) (12.84) (8.09) (9.61) (7.68) (7.37) (8.00) (8.00) (7.80) (8.00) (8.00) (8.00) (8.00) (8.00) Operating netback 59.45 52.39 48.39 29.74 43.54 17.83 29.94 20.42 24.08 23.44 23.03 22.35 26.26 26.86 24.71 G & A expense (15.21) (10.64) (7.75) (8.32) (10.15) (4.46) (2.45) (2.25) (2.24) (2.63) (2.09) (2.03) (1.97) (1.83) (1.98) Interest expense 0.03 0.28 0.13 (0.93) (0.32) (1.39) (2.03) (1.64) (1.72) (1.72) (1.74) (1.77) (1.75) (1.68) (1.73) Current tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other (cash expenses) (0.63) (0.49) 0.00 0.14 (0.17) (0.28) (6.61) 0.00 0.00 (1.65) 0.00 0.00 0.00 0.00 0.00 Cash flow netback ($/BOE) 43.64 41.54 40.77 20.63 32.90 11.71 18.85 16.53 20.11 17.44 19.20 18.55 22.54 23.35 21.00 Total cash costs ($/BOE) (22.35) (23.42) (20.46) (17.34) (20.09) (13.53) (11.85) (11.89) (11.97) (12.15) (11.83) (11.80) (11.72) (11.51) (11.71) Earnings ($/BOE) 21.22 26.52 44.71 (13.78) 11.13 (10.15) (7.77) (4.65) (1.86) (5.40) (3.29) (3.94) 0.05 0.86 (1.49) Total revenue ($MM) 3.780 3.287 3.420 4.459 14.946 5.935 12.124 11.963 13.152 43.174 13.746 13.906 15.953 17.433 61.037 Cash flow ($MM) 2.087 1.702 1.500 1.945 7.234 2.028 5.205 5.677 6.922 19.832 7.082 7.058 8.834 9.846 32.821 Net income ($MM) 1.015 1.087 1.645 (1.299) 2.447 (1.758) (2.144) (1.598) (0.639) (6.139) (1.213) (1.500) 0.020 0.364 (2.329) Net capital spending ($MM) 6.650 3.611 10.318 10.775 31.353 23.492 9.738 11.024 11.024 55.278 13.500 8.500 8.500 13.500 44.000 Net debt ($MM) 5.436 (2.913) 5.094 23.391 23.391 43.765 47.811 49.158 53.260 53.260 59.678 61.120 60.786 64.439 64.439 D/CF - trailing 0.7x NA 0.8x 3.0x 3.2x 5.4x 2.3x 2.2x 1.9x 2.7x 2.1x 2.2x 1.7x 1.6x 2.0x Weighted average shares outstanding 18.753 19.688 21.361 28.510 22.103 60.022 60.293 61.751 61.751 60.961 61.751 61.751 61.751 61.751 61.751 Weighted average shares fully diluted 19.129 20.392 22.111 28.510 22.560 60.022 60.293 61.751 61.751 60.961 61.751 61.751 61.751 61.751 61.751 EPS basic $0.05 $0.06 $0.08 ($0.05) $0.11 ($0.03) ($0.04) ($0.03) ($0.01) ($0.10) ($0.02) ($0.02) $0.00 $0.01 ($0.04) Diluted EPS $0.05 $0.05 $0.07 ($0.02) $0.11 ($0.03) ($0.03) ($0.02) ($0.01) ($0.09) ($0.02) ($0.02) $0.00 $0.01 ($0.04) CFPS basic $0.11 $0.09 $0.07 $0.07 $0.33 $0.03 $0.09 $0.09 $0.11 $0.33 $0.11 $0.11 $0.14 $0.16 $0.53 Diluted CFPS $0.11 $0.08 $0.07 $0.07 $0.32 $0.03 $0.09 $0.09 $0.11 $0.33 $0.11 $0.11 $0.14 $0.16 $0.53 Source; Beacon Securities Ltd. Estimates July 6, 2015 Page 13

Raging River Exploration Inc. P/CF: 6.7 P/CF: 9.8 P/CF: 7.0 6-Oct-15 EV/DACF: 7.3 EV/DACF: 10.2 EV/DACF: 7.3 Debt adj. target price multiple: 0.7 Debt adj. target price multiple: 0.7 Debt adj. target price multiple: 0.5 2014 2015E 2016E Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3E Q4E 2015E Q1E Q2E Q3E Q4E 2016E DAILY PRODUCTION Liquids (B/d) 9,427 9,500 10,278 12,059 10,323 12,870 12,856 12,857 13,121 12,927 14,042 14,712 15,324 16,058 15,040 Natural gas (MMcf/d) 2.3 2.8 2.4 2.9 2.6 2.6 2.9 2.9 3.0 2.9 3.2 3.3 3.4 3.5 3.4 BOE production per day (6:1) 9,805 9,961 10,679 12,548 10,755 13,310 13,347 13,348 13,621 13,407 14,570 15,260 15,892 16,648 15,599 Commodity price assumptions Exchange rate (C$/US$) $0.91 $0.92 $0.92 $0.88 $0.91 $0.81 $0.81 $0.76 $0.76 $0.79 $0.76 $0.76 $0.76 $0.76 $0.76 WTI (US$/Bbl) $107.96 109.84 102.14 73.02 $98.24 $48.57 57.93 46.50 50.00 $50.75 $50.00 50.00 55.00 55.00 $52.50 Natural Gas (US$/mmbtu) $4.72 $4.58 $3.95 $3.83 $4.27 $2.87 $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 Company average liquids price (C$/Bbl) $93.75 $101.59 $92.79 $70.00 $88.31 $46.93 $62.20 $50.19 $55.79 $53.80 $58.79 $58.79 $65.37 $65.37 $62.25 Company average gas price (C$/Mcf) $5.69 $4.41 $3.74 $3.60 $4.36 $2.73 $2.59 $2.91 $3.00 $2.81 $3.00 $2.75 $3.00 $3.25 $3.00 UNIT VALUES ($/BOE) Total sales 89.60 95.77 90.28 72.12 86.05 47.51 60.85 49.71 54.93 53.27 57.31 57.27 63.68 63.74 60.67 Royalties (incl ARTC) (8.27) (9.63) (8.89) (5.33) (7.87) (4.83) (5.86) (4.90) (5.44) (5.26) (5.73) (5.73) (6.37) (6.37) (6.07) Transportation (2.01) (1.99) (1.95) (1.30) (1.78) (1.35) (1.39) (1.35) (1.35) (1.36) (1.35) (1.35) (1.35) (1.35) (1.35) Operating expense (12.50) (11.99) (11.75) (11.45) (11.89) (11.36) (10.69) (11.00) (11.00) (11.01) (10.75) (10.75) (10.75) (10.75) (10.75) Operating netback 66.82 72.16 67.70 54.05 64.52 29.97 42.91 32.46 37.14 35.64 39.48 39.44 45.21 45.27 42.50 G & A expense (1.47) (1.43) (1.39) (1.44) (1.43) (1.37) (1.30) (1.34) (1.31) (1.33) (1.25) (1.18) (1.12) (1.07) (1.15) Interest expense (1.03) (1.19) (0.91) (0.71) (0.94) (0.63) (0.83) (0.95) (0.99) (0.85) (1.00) (1.01) (0.95) (0.87) (0.96) Current tax (7.88) (7.45) (6.51) (1.82) (5.65) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other (cash expenses) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash flow netback ($/BOE) 56.45 62.09 58.88 49.99 56.46 27.95 40.78 30.17 34.85 33.46 37.23 37.25 43.13 43.33 40.39 Total cash costs ($/BOE) (22.87) (22.06) (20.56) (15.42) (19.92) (13.36) (12.82) (13.29) (13.30) (13.19) (13.00) (12.94) (12.83) (12.69) (12.86) Earnings ($/BOE) 27.60 33.36 32.07 20.85 28.06 0.63 10.00 4.61 7.51 5.72 8.99 9.00 12.65 12.77 10.95 Total revenue ($MM) 77.493 87.638 92.146 84.574 341.851 55.875 72.300 61.040 68.839 258.054 75.153 79.529 93.098 97.629 345.408 Cash flow ($MM) 49.813 56.283 57.850 57.704 221.650 33.480 49.535 37.048 43.668 163.731 48.815 51.726 63.062 66.366 229.969 Net income ($MM) 24.360 30.238 31.505 24.067 110.170 0.760 12.145 5.662 9.414 27.982 11.785 12.499 18.494 19.561 62.339 Net capital spending ($MM) 72.017 27.789 81.664 97.123 278.593 84.106 33.417 45.000 47.500 210.023 61.000 56.000 56.000 61.000 234.000 Net debt ($MM) 117.907 89.333 113.026 152.249 152.249 115.841 99.058 107.010 110.842 110.842 123.027 127.300 120.238 114.872 114.872 D/CF - trailing 0.6x 0.4x 0.5x 0.7x 0.7x 0.9x 0.5x 0.7x 0.6x 0.7x 0.6x 0.6x 0.5x 0.4x 0.5x Weighted average shares outstanding 175.461 179.438 180.081 180.256 178.826 190.207 197.882 198.655 198.655 196.379 198.655 198.655 198.655 198.655 198.655 Weighted average shares fully diluted 183.417 188.002 188.442 187.394 186.829 194.986 211.320 201.122 201.122 202.152 201.122 201.122 201.122 201.122 201.122 EPS basic $0.14 $0.17 $0.17 $0.13 $0.62 $0.00 $0.06 $0.03 $0.05 $0.14 $0.06 $0.06 $0.09 $0.10 $0.31 Diluted EPS $0.13 $0.15 $0.16 $0.12 $0.57 $0.00 $0.06 $0.03 $0.04 $0.13 $0.06 $0.06 $0.09 $0.09 $0.30 CFPS basic $0.28 $0.31 $0.32 $0.32 $1.24 $0.18 $0.25 $0.19 $0.22 $0.83 $0.25 $0.26 $0.32 $0.33 $1.16 Diluted CFPS $0.27 $0.30 $0.31 $0.31 $1.19 $0.17 $0.23 $0.18 $0.22 $0.81 $0.24 $0.26 $0.31 $0.33 $1.14 Source; Beacon Securities Ltd. Estimates Striker Exploration Corp. P/CF: (5.0) P/CF: 2.3 P/CF: 2.0 6-Oct-15 EV/DACF: (6.8) EV/DACF: 3.6 EV/DACF: 3.7 Debt adj. target price multiple: (3.7) Debt adj. target price multiple: 0.9 Debt adj. target price multiple: 1.3 2014 2015E 2016E Q2 Q3 Q4 2014 Q1 Q2 Q3E Q4E 2015E Q1E Q2E Q3E Q4E 2016E DAILY PRODUCTION Liquids (B/d) 74 56 914 263 2,004 1,465 1,751 1,726 1,736 1,862 1,890 1,916 1,990 1,915 Natural gas (MMcf/d) 0.5 0.5 3.3 1.1 6.4 5.5 5.9 5.8 5.9 6.2 6.3 6.4 6.6 6.4 BOE production per day (6:1) 154 143 1,458 442 3,066 2,384 2,726 2,688 2,715 2,898 2,940 2,980 3,094 2,978 Commodity price assumptions Exchange rate (C$/US$) $0.92 $0.92 $0.88 $0.91 $0.81 $0.81 $0.76 $0.76 $0.79 $0.76 $0.76 $0.76 $0.76 $0.76 WTI (US$/Bbl) 109.84 102.14 73.02 $98.24 $48.57 57.93 46.50 50.00 $50.75 $50.00 50.00 55.00 55.00 $52.50 Natural Gas (US$/mmbtu) $4.58 $3.95 $3.83 $4.27 $2.87 $2.74 $2.74 $2.75 $2.77 $3.00 $2.75 $3.00 $3.25 $3.00 Company average liquids price (C$/Bbl) $81.74 $85.72 $57.26 $60.51 $46.15 $62.13 $46.19 $52.79 $51.19 $54.79 $54.79 $61.37 $61.37 $58.17 Company average gas price (C$/Mcf) $4.93 $5.15 $3.57 $4.79 $2.94 $2.86 $3.10 $3.18 $3.02 $3.00 $2.75 $3.00 $3.25 $3.00 UNIT VALUES ($/BOE) Total sales 71.42 65.68 47.11 50.74 36.28 43.70 41.01 43.98 41.02 41.64 41.11 45.88 46.43 43.83 Royalties (incl ARTC) (4.53) (7.92) (8.93) (8.46) (6.43) (6.77) (6.54) (7.33) (6.76) (7.50) (7.40) (8.26) (8.36) (7.89) Transportation 0.00 0.00 0.00 0.00 (0.70) (0.63) (0.75) (0.75) (0.71) (0.75) (0.75) (0.75) (0.75) (0.75) Operating expense (27.12) (35.82) (13.86) (16.80) (11.35) (13.71) (13.00) (13.00) (12.70) (12.00) (12.00) (12.00) (12.00) (12.00) Operating netback 39.76 21.95 24.33 25.47 17.80 22.59 20.72 22.90 20.86 21.40 20.96 24.87 25.32 23.19 G & A expense (21.70) (145.92) (11.71) (23.54) (3.91) (5.48) (4.74) (4.81) (4.69) (4.56) (4.44) (4.34) (4.18) (4.37) Interest expense (3.40) 1.64 (1.04) (1.03) (0.64) (0.60) (0.45) (0.57) (0.57) (0.57) (0.72) (0.77) (0.80) (0.72) Current tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other (cash expenses) 0.00 0.00 (17.34) (14.42) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash flow netback ($/BOE) 14.67 (122.33) (6.19) (13.51) 13.27 16.45 15.53 17.52 15.60 16.27 15.80 19.77 20.34 18.10 Total cash costs ($/BOE) (52.22) (180.10) (26.61) (41.37) (15.90) (19.80) (18.19) (18.37) (17.95) (17.13) (17.16) (17.10) (16.98) (17.09) Earnings ($/BOE) (58.79) (468.74) (70.76) (102.22) (7.55) (12.84) (3.63) (1.65) (6.24) (2.93) (3.40) 0.57 1.15 (1.10) Total revenue ($MM) 1.026 0.865 6.099 7.990 9.875 9.055 10.286 10.875 40.091 10.860 10.999 12.578 13.214 47.652 Cash flow ($MM) 0.206 (1.611) (0.830) (2.236) 3.663 3.567 3.895 4.334 15.459 4.243 4.227 5.419 5.790 19.679 Net income ($MM) (0.825) (6.174) (9.491) (16.490) (2.082) (2.785) (0.910) (0.409) (6.186) (0.764) (0.910) 0.156 0.326 (1.192) Net capital spending ($MM) 0.012 0.112 97.739 97.863 2.843 3.967 22.275 0.525 29.610 10.750 6.750 6.750 8.750 33.000 Net debt ($MM) 4.330 (18.659) 7.695 7.695 6.875 7.714 18.094 14.285 14.285 20.793 23.316 24.647 27.606 27.606 D/CF - trailing 5.3x 2.9x NA NA 0.5x 0.5x 1.2x 0.8x 0.9x 1.2x 1.4x 1.1x 1.2x 1.4x Weighted average shares outstanding 0.957 12.370 19.677 8.316 26.830 26.830 32.240 32.240 29.557 32.240 32.240 32.240 32.240 32.240 Weighted average shares fully diluted 0.957 12.370 22.677 9.072 26.830 26.830 32.240 32.240 29.557 32.240 32.240 32.240 32.240 32.240 EPS basic ($0.86) ($0.50) ($0.48) ($1.98) ($0.08) ($0.10) ($0.03) ($0.01) ($0.21) ($0.02) ($0.03) $0.00 $0.01 ($0.04) Diluted EPS ($0.86) ($0.50) ($0.25) ($1.82) ($0.05) ($0.07) ($0.02) ($0.01) ($0.15) ($0.02) ($0.02) $0.00 $0.01 ($0.03) CFPS basic $0.22 ($0.13) ($0.04) ($0.27) $0.14 $0.13 $0.12 $0.13 $0.52 $0.13 $0.13 $0.17 $0.18 $0.61 Diluted CFPS $0.22 ($0.13) ($0.04) ($0.25) $0.14 $0.13 $0.12 $0.13 $0.52 $0.13 $0.13 $0.17 $0.18 $0.61 Source; Beacon Securities Ltd. Estimates July 6, 2015 Page 14

mbbl mbbl mbbl Commodity Price Update Appendix I. US Crude Oil Inventory Update US Crude Oil Stocks 550,000 500,000 450,000 400,000 350,000 300,000 250,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 US Gasoline 2012 Stocks 2013 2014 2015 YTD 250,000 240,000 230,000 220,000 210,000 200,000 190,000 180,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD US Distillate Stocks 190,000 170,000 150,000 130,000 110,000 90,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD July 6, 2015 Page 15

mbbl/d mbbl mbbl Commodity Price Update US Heating Oil Stocks 55,000 45,000 35,000 25,000 15,000 5,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD US Residual Fuel Oil Stocks 47,500 42,500 37,500 32,500 27,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD US Crude Oil Imports 12,000 11,000 10,000 9,000 8,000 7,000 6,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD July 6, 2015 Page 16

Per cent mbbl/d mbbl/d Commodity Price Update US Gasoline Imports 1,500 1,300 1,100 900 700 500 300 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD US Gasoline Daily Demand 10,500 10,000 9,500 9,000 8,500 8,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD US Refinery Utilization 100 95 90 85 80 75 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA 2010 2011 2012 2013 2014 2015 YTD July 6, 2015 Page 17

Disclosure Requirements Does Beacon, or its affiliates or analysts collectively, beneficially own 1% or more of any class of the issuer's equity securities? Yes No Does the analyst who prepared this research report have a position, either long or short, in any of the issuer s securities? Yes (RRX) No Does Beacon Securities beneficially own more than 1% of equity securities of the issuer? Yes No Has any director, partner, or officer of Beacon Securities, or the analyst involved in the preparation of the research report, received remuneration for any services provided to the securities issuer during the preceding 12 months? Yes No Has Beacon Securities performed investment banking services in the past 12 months and received compensation for investment banking services for this issuer in the past 12 months? Yes No Was the analyst who prepared this research report compensated from revenues generated solely by the Beacon Securities Investment Banking Department? Yes No Does any director, officer, or employee of Beacon Securities serve as a director, officer, or in any advisory capacity to the issuer? No Yes Are there any material conflicts of interest with Beacon Securities or the analyst who prepared the report and the issuer? Yes No Is Beacon Securities a market maker in the equity of the issuer? Yes No Has the analyst visited all of the head offices of the issuers and viewed their operations in a limited context? Yes No (Calgary office) Did the issuer pay for or reimburse the analyst for the travel expenses? Yes No All information contained herein has been collected and compiled by Beacon Securities Limited, an independently owned and operated member of the Investment Industry Regulatory Organization of Canada (IIROC). All facts and statistical data have been obtained or ascertained from sources, which we believe to be reliable, but are not warranted as accurate or complete. All projections and estimates are the expressed opinion of Beacon Securities Limited, and are subject to change without notice. Beacon Securities Limited takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report. This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell securities discussed herein. Based on their volatility, income structure, or eligibility for sale, the securities mentioned herein may not be suitable or available for all investors in all countries. As at September 30th, 2015 #Stocks Distribution Buy 54 72% Buy Total 12-month return expected to be > 15% Speculative Buy 13 17% Speculative Buy Potential 12-month return is high (>15%) but given elevated risk, investment could result in a material loss Hold 3 4% Hold Total 12-month return is expected to be between 0% and 15% Sell 0 0% Sell Total 12-month return is expected to be negative Under Review 5 7% Under Review Currently undergoing a change of analyst coverage Total 75 100% Dissemination Beacon Securities distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.beaconsecurities.ca via login and password. Analyst Certification The Beacon Securities Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst s personal views about the company and securities that are the subject of the report; or any other companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.