CENTRAL & SOUTHERN ALBERTA FEE TITLE/ GORR … u 314 gross (265 net) HSC CBM / Belly River locations...

TABLE OF CONTENTS

Area Overview ......................................................................page 2Fee/GORR Lands ......................................................................page 2Fee Lands History .....................................................................page 3Units ........................................................................................page 4

Ember North Overview .........................................................page 5Formation Activity ....................................................................page 6

Ember South Overview ........................................................page 7

Upside Opportunities ...........................................................page 8CBM (Edmonton Group / Med.River) ........................................page 8Mannville (Ellerslie) .................................................................page 10Mannville (Glauconite) ...........................................................page 10Viking ....................................................................................page 13Other (Cardium / Lloyd) ..........................................................page 15

Sale Procedure .....................................................................page 17

Disclaimer ............................................................................page 18

CIBC CONTACTS

Denise Poley Head, A&D

403-260-0502 [email protected]

David Smith Chief Geologist 403-260-0505

[email protected]

Doug Ashton Chief Engineer403-260-8654

[email protected]

Dan RaffinSenior Engineer403-216-3004

[email protected]

CENTRAL & SOUTHERN ALBERTA FEE TITLE/GORR OPPORTUNITY

Data Rooms and VDR open week of: July 20, 2015

Timing of proposals expected:Late August, 2015

Chris Folan

Managing Director403-260-0504

[email protected]

John PeltierExecutive Director

[email protected]

Darren TongDirector

[email protected]

Matt PreteAnalyst

[email protected]

2 - CENTRAL & SOUTHERN ALBERTA - Fee Title/GORR Opportunity

AREA OVERVIEWEmber Resources (“Ember” or the “Company”) has engaged CIBC World Markets Inc. (“CIBC”) to assist with the sale of their Fee Title and Gross Overriding Royalty (“GORR”) lands in central and southern Alberta. Ember will consider all proposals for the asset, however, they reserve the right to evaluate offers according to select criteria, at their sole discretion.

OPPORTUNITY HIGHLIGHTSu ~267 boe/d (79% gas) royalty production for saleu ~345 sections (221,400 acres) of Fee Title and GORR acreage within central and southern Alberta located primarily in a corridor between Calgary and Edmonton (northern lands) and Calgary south to the U.S. border (southern lands)u Average ~73% of Fee Title lands are undeveloped with ~100% undeveloped in the southern acreageu Northern acreage has high development activity with multiple operators and prospective horizonsu Horizontal and vertical offsetting activity targeting both oil and gasu Year round access areas with available infrastructureu Cumulative production for area lands: 1.6 billion bbl oil, 2.4 Tcf gas, mainly primary recovery

methods (typically <10% Recovery Factors)u Secondary and enhanced recovery methods could significantly increase recovery factors

Edmonton

Calgary

Regina

T120

T110

T100

T90

T80

T70

T60

T50

T40

T30

T20

T10

94-O94-P

94-J94-I

94-G94-H

94-B

93-O93-P

93-J93-I

R10

W6M

W5M

W4M

R20

R20

R10R1

0

W3M W

2M

R20

R10

R10

R20

A L B E R T A S A S K A TCH EWANB . C .

Lloydminster

Ft. McMurray

Grande Prairie

EMBER FEE LANDS

Totals June 30, 2015 (acres)

Gross Dev

Net Dev

Gross UnDev

Net UnDev

Total Gross

Total Net

FEE NORTH 24,002 20,034 64,339 60,989 88,341 81,023

FEE SOUTH 0 0 59,579 54,717 59,579 54,717

TOTAL FEE LANDS 24,002 20,034 123,918 115,706 147,920 135,740

R27 R25 R23 R21 R19 R17W4R29R1W5

T4

T7

T10

T13

T16

T19

T22

T25

T28

T31

T34

T37

T40

T43

T46

RED DEERRED DEER

CAMROSECAMROSE

WETASKWINWETASKWIN

AIRDRIEAIRDRIE

DRUMHELLERDRUMHELLER

LETHBRIDGELETHBRIDGE

CALGARYCALGARY

ALBERTAALBERTA

Wood RiverWood River MalmoMalmo

RosalindRosalind

DonaldaDonalda

GadsbyGadsby

FennFenn

HaynesHaynes

MikwanMikwan

North GrantNorth Grant

AcmeAcmeLone PineLone Pine

Buffalo LkBuffalo LkNevisNevis

CliveClive

LacombeLacombe

Ember GORR LandsEmber Fee Lands

EMBER FEE/GORR LANDS OVERVIEW

Scollard

BattleWhitemud

Horseshoe CanyonBearpaw

Judith RiverBelly River

Lea ParkMilk River

1st White Speckled Shale

Colorado Shale

Medicine Hat

Second White Speckled Shale

2nd White Specks SST

Colorado Shale

Fish Scale Zone

Joli FouVikingBow Valley

Basal Colorado

Barons SST

Upper Mannville/Blairmore

Clearwater Shale

GlauconiticOstrocod Zone

Ellerslie(Basal Quartz)

SunburstTaber/Cutbank

Detrital (Deville)

Cle

ar-

Wate

r

Low

erU

pper

Man

nvill

e G

roup

Edm

onto

n G

pC

olor

ado

Gro

up

CR

ETA

CEO

US

SHA

LLO

W G

AS

CO

LOR

AD

O

VIKING

MA

NN

VIL

LE

STRATIGRAPHIC CHART

PROPOSED ROYALTIES ON EXISTING EMBER WELLSu Ember is proposing to sell a 5% net royalty on all Ember working interest wells that are on Ember fee lands not subject to an existing agreementu Proposal affects 183 wells that Ember is currently not collecting any royalty from, and Ember’s interest in 34 wells that Ember is currently collecting a royalty from other interest partiesPROPOSED ROYALTIES ON FUTURE EMBER WELLSu Ember is proposing to sell a 5% net royalty on all undeveloped Ember working interest landsu 314 gross (265 net) HSC CBM / Belly River locations identified in the north areau Locations are all in the main portion of the HSC CBM fairway and would likely be drilled within 5 years

u Third party interest owners account for the difference between gross and net acreage, supporting information in the VDR


EMBER POTENTIAL ROYALTY SALE - JULY 01 2015 - PROVED PLUS PROBABLE

2015 Average Co. Share Co. Share Rem. Res.(MBOE)

% Gas

Btax NPV (MM$)* Net Revenue (M$)

# ofWells

Oil/NGL(BBL/D)

Gas(MCF/d)

BOE(BOE/D)

5% 10% 15% H2 2015 2016

Current Royalty Wells

Fee 113 41.9 472.2 120.6 345.8 74 11.0 8.4 6.9 728 1,594

GORR 160 12.0 325.6 66.3 210.4 80 6.1 4.5 3.6 306 688

Both 31 1.4 160.0 28.1 89.4 97 1.8 1.4 1.1 103 225

Sub-Total 304 55.3 957.8 214.9 645.6 79 18.9 14.3 11.6 1,138 2,506

Future Royalty on Existing Ember Wells

Fee 216 4.3 257.6 47.2 166.4 91 3.8 2.8 2.2 187 412

GORR 11 0.0 12.8 2.1 8.7 100 0.2 0.1 0.1 7 15

Both 6 0.0 17.6 2.9 11.9 100 0.2 0.2 0.1 10 21

Sub-Total 233 4.3 288 52.3 187.0 92 4.2 3.1 2.4 204 448

Total onExisting Wells

537 59.6 1245.8 267.2 832.6 82 23.1 17.4 14.0 1,342 2,955

Future Ember Locations

255 0.0 0.0 0.0 463.5 100 8.6 5.9 4.3 0 437

Total 792 59.6 1,245.8 267.2 1,296.1 88 31.7 23.3 18.3 1,342 3,392

EMBER FEE LANDS OVERVIEW

Acreage Statistics at June 30, 2015

GORR ACREAGE Developed Undeveloped Total

Totals June 30, 2015 (acres) Gross Gross Gross

North GORR 51,603 14,468 66,071

South GORR 4,867 2,534 7,401

EMBER GORR TOTAL 56,470 17,002 73,472

5W1R R15W4R18R21R24R27

T2

T4

T6

T8

T10

T12

T14

T16

T18

T20

T22

T24

T26

T28

T30

T32

T34

T36

T38

T40

T42

T44

T46

Ember FeeEmber North Area BoundaryEmber South Area BoundaryEmber North Royalty Well0

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2010 2011 2012 2013 2014 2015

4-Mannville 3-Viking 2-Cardium 1-Surf-BBR Area Ember Royalty Area Ember Royalty

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Below Cretaceous Mannville Viking Cardium Surface to Base Belly RiverBBR

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2010 2011 2012 2013 2014 2015

Gros

s Pro

ducti

on (b

oe/d

)

Total Gross Production (Boe/d) from Ember Royalty Wells

544

39581

1639

1-Surf-BBR 2-Colorado 3-Viking 4-Mannville 5-Below Cret

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2010 2011 2012 2013 2014 2015Surface to Base Belly RiverBBR Colorado Viking Area Ember Royalty

276

204

80106

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4442

2223

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40 1 0 0 0 0

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2010 2011 2012 2013 2014 2015

Total Well Count by Zone On and Around Ember Lands Shallow Gas Rig Releases Surrounding Ember Lands Cardium Well Count On and Around Ember Lands All Zones Well Rig Released Count On and Around South Ember Lands All Zones Well Count On Ember Royalty Lands Wells Rig Released (All Zones) Around Ember Royalty LandsMannville Well Count On and Around Ember LandsViking Well Count On and Around Ember Lands

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1,000

1,500

2,000

2,500

3,000

3,500

4,000

2010 2011 2012 2013 2014 2015

Gros

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)


544

39581

1639


10

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200

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Area Ember Royalty

4442

2223

16

40 1 0 0 0 0

0

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2010 2011 2012 2013 2014 2015


FEE LANDS HISTORYu All Fee Lands were acquired as part of the purchase of Apache’s central and southern Alberta production which closed in September 2013u These lands came through the Fletcher Challenge / Amoco / Dome / Hudson’s Bay Oil and Gas title chain of ownershipRights:u North Fee Lands rights include surface to base Cretaceous on all lands; plus any zones below the base of the Cretaceous that were producing at the time of closing – on a lease by lease basisu South Fee Lands rights include all rights from surface to basementu There are 24 wells producing from zones below the Cretaceous as of March 31, 2015

* Based on McDaniel April 1, 2015 price forecast


Rate(bbl/day)

Pool Estimated Production CapabilityPool Estimated Production Capability

Cumulat

ive Pr

oduction (B

BL)

Cumulat

ive Pr

oduction (B

BL)

Whitecap: 4,500 boe/d2015 Annual Estimate

(July, 2015)

Whitecap: 4,500 boe/d2015 Annual Estimate

(July, 2015)

Regulatory Approval Received for Waterflood (March 2015)

Regulatory Approval Received for Waterflood (March 2015)

Pool Acquisition by WCP(August 2014)

Pool Acquisition by WCP(August 2014)

UNITSu 6 Units: Elnora Nisku B, South Three Hills Creek, Turner Valley

4&5, Wimborne Leduc D-3 Unit 1, Wimborne Nisku D2B. March 2015 Gross Production 6,541 boe/d (83% Liquids)

ELNORA NISKU B UNIT (~0.51% INTEREST)u Elnora Nisku B pool discovered in 2012 by Mancal. Largest

Nisku Oil discovery in the past 20 yearsu Waterflood approval granted March 2015u Whitecap expects production to average 4,500 boe/d for 2015 (currently at 5,167 bbl/d, May 31, 2015)u Pool capable of producing 10,000 bbl/d

u McDaniels gross P+P EUR >13 MMBoe for the unit. Whitecap investor presentation states an additional 6.5 MMboe recoverable over and above the McDaniels report based on simulationu Detailed revenue forecasts for the Elnora Nisku B Pool will be provided in the VDR

5W1R R15W4R18R21R24R27

T2

T4

T6

T8

T10

T12

T14

T16

T18

T20

T22

T24

T26

T28

T30

T32

T34

T36

T38

T40

T42

T44

T46

Ember Fee

South Three Hills Creek Unit

Turner Valley Unit No. 4

Turner Valley Unit No. 5

Wimborne Leduc D-3 Unit No. 1

Wimborne Nisku D2b Unit

Elnora Nisku B

ELNORA NISKU B POOL PRODUCTION SUMMARY


RED DEERRED DEER

CAMROSECAMROSE

WETASKWINWETASKWIN

AIRDRIEAIRDRIE

DRUMHELLERDRUMHELLER

ALBERTAALBERTA

Wood RiverWood River MalmoMalmo

RosalindRosalind

DonaldaDonalda

GadsbyGadsby

FennFenn

HaynesHaynes

MikwanMikwan

North GrantNorth Grant

AcmeAcmeLone PineLone Pine

Buffalo LkBuffalo LkNevisNevis

CliveClive

LacombeLacombe

Ember Fee North

R27 R25 R23 R21 R19 R17W4R29R1W5

T28

T29

T30

T32

T33

T35

T36

T38

T39

T41

T42

T44

T45

T47

T31

T34

T37

T40

T43

T46

EMBER NORTH FEEAcreage Statistics at June 30, 2015

Royalty Lands

Fee Lands Developed Undeveloped Total

Totals June 30, 2015 (acres) Gross Net Gross Net Gross Net

North Fee 24,002 20,034 64,339 60,989 88,341 81,023

EMBER NORTH AREA(to base Cretaceous)u Area Production:

u ~650 wells rig released since 2010u ~16,500 producing wells

u Commodity Split: 6.0% liquids 94.0% gas (on ~100,000 boe/d of which ~6,000 bbl oil and ~565 MMcf/d gas)u Producing Zones:

u Edmonton Group (shallow gas), Belly River, Mannville (Glauconite, Ellerslie and Ostracod), Wabamun, Nisku-Leduc, Viking, Pekisko

u Top Operators: CNRL, ConocoPhillips, Direct Energy, TAQA, Pengrowth, Husky, Marquee, Trident (CBM), Quicksilver (CBM)u ~20,000 total wells to the base Cretaceous within the Ember North Area Boundary (see page 3)u This package is largely focused on formations down to the Cretaceous including; shallow

gas in the Edmonton Horseshoe Canyon coals (CBM) and Belly River sands, Cardium, Viking, and the Mannville Glauconitic and Ellerslie zones

u Greater horizontal gas drilling expected with increase in gas prices and decreasing drill costsu Potential new developments include; extensions to proximal Cardium and Viking trends, lithic

Mannville channels, Falher and Detritral oil or other enhanced recovery opportunitiesu Abundance of marginal deeper producers provides significant upside with inexpensive uphole

recompletions that will arrest or reverse declines


FORMATION ACTIVITY (NORTH)

OPPORTUNITY HIGHLIGHTSu Significant recent activity over Ember lands and proximal area with ~650 wells

rig released since 2010u (2010: 275, 2011: 187, 2012: 58, 2013: 87, 2014 to present: ~55)u ~525 of these wells targeted zones from the Base Cretaceous or shallower

u Primary target formations include the shallow gas Edmonton Group sands and coals, Belly River, Viking, and Mannville Ellerslie and Glauconite sands

u Multi-zoned potential throughout the region with both oil and gas target formationsu Numerous active operators with numbers expected to increase with rise in commodity prices

u Ember’s production and type curves are supported by 8,000 wellbores and 10+years of history

EMBER CBM PRODUCTION TYPE CURVE

TYPE WELL ASSUMPTIONSNew Wells

IP (Mcf/d) 110

EUR (MMcf) 400

Capital ($M/well) $350

Fixed Op. Cost ($/Mo) $750

Variable Op. Cost ($/Mcf) $0.10


EMBER SOUTH FEE AND ACTIVITY

EMBER SOUTH AREAu ~2,175 wells within the Ember South Area Boundary (see page 3)u ~630 wells that are area drilled to Base Cretaceous or shalloweru South Area Activity (since 2010) 89 wells rig released

(2010:11,2011:17,2012:22,2013:19,2014-Present:17)u Area Production: 7,074 boe/d (34.5% oil, 65.5% gas), 2,439

bbl/d oil, 27.8 MMcf/d gas from 2,019 prducing wellsu Lochend area Cardium development wells have seen

recent IP’s of 300 bbl/d oil on and offsetting Ember landsu Producing Zones: Turner Valley, Cardium (north end at Lochend),

Cutbank (ELRL equivalent), Rundle, Palliser, Wabamun, Belly Riveru Top Operators: Legacy, Devon (CNRL), Lightstream (CRDM),

Bonavista, TriOil (CRDM), Chinook0

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2010 2011 2012 2013 2014 2015


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544

39581

1639


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2010 2011 2012 2013 2014 2015


R29W4R1W5R3

T4

T5

T7

T9

T11

T13

T15

T17

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T21

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T25

T27

T6

T8

T10

T12

T14

T16

T18

T20

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T26

CALGARYCALGARY

AIRDRIEAIRDRIE

Ember Fee South2010-present Rig Release

Acreage Statistics at June 30, 2015

Royalty Lands

Fee Lands Developed Undeveloped Total

Totals June 30, 2015 (acres) Gross Net Gross Net Gross Net

South Fee 0 0 59,579 54,717 59,579 54,717


CBM (EDMONTON GROUP / MED. RIVER)

SHALLOW OPPORTUNITY HIGHLIGHTSu Comprised of both the Edmonton Group (Bearspaw, Horseshoe Canyon and Scollard) and the

Belly River formationu Area Production: 55,480 boe/d (98.5% gas) from 8,486 wells, 441 rig released since 2010u Ember has expressed the option of providing the purchaser with a future drilling commitmentu Alberta Geological Survey estimates up to 500 Tcf of natural gas in Alberta’s coals (179 Tcf in the

Horseshoe Canyon, and 321 Tcf in the Mannville coals)u Shallow gas wells produce sweet, dry gas, are inexpensive, have very short cycle time

(RR to on-stream in < 60 days), have a high chance of success, and often encounter highly pro-ductive Belly River sands, which can triple production for a very small capital increase

u Mannville CBM has a huge resource potential, and could increase production as technological advancements reduce costs associated with horizontal drilling

u Edmonton sands are overwhelmingly gas prone and are comprised of a series of interbedded sandstones, siltstones, shales and coals deposited in a fluvial deltaic environment

u Belly River generally was deposited as a thick clastic wedge of shoreface to fluvial sands that thin to the east. Generally has multiple cycles of sands and/or coals

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1639


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EMBER ADVANTAGE - ENCANA CLEARWATER ACQUISITION PERFORMANCE TO-DATE

NET SALES (mcf/d) Clean Outs (Count)

120,000.0

180,000.0

240,000.0

300,000.0

360,000.0

WO

RKIN

GIN

TERE

STPR

ODU

CTIO

N(m

cf/d

ay)

0

20

40

60

80

100

DailyClean

OutCount

04/01/2014 05/16/2014 06/29/2014 08/13/2014 09/26/2014 11/10/2014 12/24/2014 02/07/2015 03/23/2015 05/07/2015Date

EMBER RESOURCES NET SALES11571 Completions

Jun 23, 2015, 9:54 AM VISAGE™

ECA Clearwater Aquisition

u Ember Resources Inc. is predominantly a Horseshoe Canyon CBM producer that is currently producing just over 300 MMcf/d of natural gas. The base decline on the corporate production is approximately7%, resulting in long life reserves and cash flow. Owning a royalty on existing lands and future locations owned and operated by Ember will give the prospective purchaser the benefit of these long life reserves and cash flows.

u Ember is able to demonstrate its superior operational expertise with the recently acquired Clearwater assets from Encana. Ember achieves this low decline performance through an aggressive clean-out strategy, removing any performance depressing water at regular intervals. Ember has an active program to remove tubing and comingle all applicable wells in order to be able to perform required clean-outs. These programs have led to large positive reserves revisions year over year as wells outperform forecasts.


MANNVILLE (ELLERSLIE)

ELLERSLIE OPPORTUNITY HIGHLIGHTSu Large number of operators in the Ellerslie zones including CNRL, Bonavista, Pengrowth,

Husky, Conoco, Scollard and Marqueeu ~736 producing wells in the general areau ~11,345 boe/d of production made up of ~11% oil and 89% gasu The interval also includes the Basal Quartz and varies in lithology from finer grained fluvial

sediments to quarts and chert dominated sands and occasional conglomeratesu Generally trapping is stratigraphic with the zone often showing stacked reservoir capabilityu Ellerslie production found over majority of fee title acreage

MANNVILLE (GLAUCONITE)

GLAUCONITE OPPORTUNITY HIGHLIGHTSu The top operators in the Glauconitic zones include CNRL, Bonavista, ConocoPhillips, NAL,

Ember, Husky, TAQA and Pengrowthu ~757 producing wells in the general areau ~9,650 boe/d of production made up of ~16% oil and 84% gasu Deposition is as a series of thin coarsening upward marine shale-sandstone successions which are

locally cut by incised valleys filled with estuarine and fluvial sediments. Channels that contain quartzose sand can be excellent reservoirs while lithic channels tend to show poorer reservoir qualities but also produce. Trapping is generally stratigraphic


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1639


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Area Ember Royalty

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2010 2011 2012 2013 2014 2015


u Mannville zones have historically been developed across these landsu Improvements in horizontal well technology have led to increased recent development

u Horizontal drilling and multistage fracs have allowed previously uneconomic opportunities to be exploited and developed

u Large number of Mannville operators include CNRL, Bonavista, ConocoPhillips, Husky and Pengrowth


Producing Wells: 14Injecting Wells: 0

From: 2007-02To: 2015-03

08 09 10 11 12 13 14 15 16Date (Month/Years)

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1010

0 00

100

100 0

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100

110

PRD Cal-Day Avg OIL (Bbl/Day) PRD Percent: WTR Cut (%)PRD Cal-Day Avg GAS (Mcf/Day)PRD Well Count OIL

Cum PRD OIL 234.9 MbblCum PRD GAS 4.0 BcfCum PRD WTR 359.0 Mbbl

SHACKLETON EXPLORATION LTD.

MANNVILLE OPPORTUNITY

SHACKLETON PRODUCTION PLOT

SHACKLETON OPPORTUNITY HIGHLIGHTSu Shackleton has recently drilled 8 Mannville wellsu Mannville Glauconite-Ellerslie productionu Shoaling upwards lithic channel development, ~45m. gross thickness u Obtained oil production rates up to ~259 boe/d (IP Max) with typical

IP90 rates for oil range from 140-215 bbl/d and gas ~480Mcf/d - 4.5MMcf/d for horizontal wells u Areas typically dominated by gas production are now being developed horizontally to access more of the reservoir and producing oil in addition to the gasu Lower Mannville targets have indicated significant additional resource potential opportunities


VIKING OPPORTUNITY

VIKING OPPORTUNITY HIGHLIGHTSu Lands located primarily in the shelf barrier play with minor estuarine sands (west) and marine

sands (east). Often thick successions of prograding shoreface and shelf clastics are found alternating with marine shale deposits

u Variety of depositional settings within the lands including clastic wedges deposited during regression, incised and infilled valleys and onlapping transgressive sands

u NW-SE oriented reservoirs commonly found with trapping both stratigraphically and structurallyu Omers/Glencoe Viking CO² flood has increased their production from 400 bbl/d in

2010 to 800 bbl/d in 2015u Area: 11,968 boe/d, 13% liquids, 517 producing wells,49 rig released since 2010u Ember: 81 boe/d, 2.7% liquids, 8 producing wells

* Glencoe is bbl’s not boe due to CO² flood

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-

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Gros

s Pro

ducti

on (b

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)


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39581

1639


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Area Ember Royalty

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PENN WEST PETRL LTD CDN O&G INTL INC BEARSPAW PETRL LTD TAQA NORTH LTD

ARC RSRCS LTD BUMPER DVLP CORP LTD CDN NAT RSRCS LTD CONOCOPHILLIPS CDA RSRCS

HUSKY OIL OPRTNS LTD PENGROWTH ENRG CORP EMBER RSRCS INC GLENCOE RSRCS LTD*

Remaining NAL RSRCS LTD


MIKWAN VIKING

R22W4R23R24

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T35

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Ember Fee

Project WellsEmber Mikwan Viking

8-28

16-17

VIKING PRODUCTION PLOT

8-28-35-24W4 VIKING PRODUCTION PLOT

Data As Of: 2015-03 (AB)From: 2009-04

To: 2015-03

100/16-17-035-23W4/03EMBER ELNORA 16-17-35-23

Pumping Crude OilField: ELNORA (0334)Pool: VIKING B (0218002)

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0 00

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100 0

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PRD Cal-Day Avg OIL (Bbl/Day)PRD Cal-Day Avg GAS (Mcf/Day)PRD Percent: WTR Cut (%)

Cum PRD OIL 54.8 MbblCum PRD GAS 22.7 MMcfCum PRD WTR 254.7 Bbl

Data As Of: 2015-03 (AB)From: 2011-03

To: 2015-03

100/08-28-035-24W4/05EMBER HUXLEY 8-28-35-24

Pumping Crude OilField: HUXLEY (0488)Pool: VIKING I (0218009)

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0 010

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1010

0 00

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100 0

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0 010

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PRD Cal-Day Avg OIL (Bbl/Day)PRD Cal-Day Avg GAS (Mcf/Day)PRD Percent: WTR Cut (%)

Cum PRD OIL 133.8 MbblCum PRD GAS 91.8 MMcfCum PRD WTR 4.1 Mbbl

MIKWAN VIKINGu Encana performed successful recompletions on wells in the Huxley / Elnora area in late 2011 that

produced significant oil in a lower Viking conglomerate. 8-28-35-24W4 and 16-17-35-23W4 have produced ~149,000 boe (89% oil) and ~59,000 boe (94% oil) respectively since late 2011


OTHER OPPORTUNITY (CARDIUM-LLOYD) CARDIUM (SOUTH)

CARDIUM-LLOYD OPPORTUNITY HIGHLIGHTSu High density active development to the westu Close proximity to Ember lands south in Garrington/Lone Pine Creeku Potential upside oil or gas opportunityu Lloyd medium gravity production to the east proximal in the Leahurst/Red Willow areau Additional upside potential on eastern lands

CARDIUM (SOUTH) OPPORTUNITY HIGHLIGHTSu Significant Cardium horizontal development on and offsetting Ember lands in the Lochend areau Future potential to extend the Cardium play futher south over the Ember acreageu Lochend area operators include Lightstream, TriOil (Orlen), Pengrowth, Tamarack Valley

and Bernum and could increase with play extension on to the southu Potential for increased well densityu ~5 additional low risk horizontal wells with >6 additional wells through play extention within the immediate paly area

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R1W5R2R3R4

T24

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T27

IP~100 bbl/d oilCUMM: ~18K bbl oil(1 Year)

IP~325 bbl/d oil 900 mcf/d gasCUMM: ~25K bbl oil(3 months)

IP~65 bbl/d oil ~100 mcf/d gasCUMM: ~19K bbl oil(2 years)

IP~60 bbl/d oilCUMM: ~13.5K bbl oil(2 years)

Ember FeeCardiumArea Well


R17W4R18

T31

T32

Ember Fee

Marquee detrital

DETRITAL OPPORTUNITY HIGHLIGHTSu Opportunity for development in the Basal Cretaceous Detrital zoneu Marquee rig released 8 Detrital wells since 2010u Marquee states DCET cost of < $3.4 MM/well and 35-45% RORu Current production of 258 boe/d (71% Oil), Cumulative since 2012: 346,533 boe (70% Oil)u Michichi Area, 3-8 m pay, 30-36° API, 100-300 md, 15-25% Porosity

WDetrital Banff Sand Banff

Bantry

Ellerslie

Detrital

Middle Banff

MiddleBanff Sand

Lower BanffFracturing

Fracturing

E

Source: Marquee Energy Ltd.

FALHER OPPORTUNITY HIGHLIGHTSu Bonavista Rig-Released 9 wells since late 2013u Cumulative production of 36,500 bbl oil, 19,100 boe free condensate and 4.7 Bcf Gasu Horizontal developmentu Opportunity for additional development and exploration

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R25W462R5W1R R27R28

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Ember FeeEmber Falher


Doug Ashton Chief [email protected]

David SmithChief [email protected]

Dan RaffinSenior [email protected]

Matt [email protected]

Darren [email protected]

John PeltierExecutive [email protected]

Chris FolanManaging [email protected]

Denise Poley Head, A&D403-260-0502 [email protected]

CIBC World Markets Inc.9th Floor, Bankers Hall East 855 – 2nd Street SW Calgary, Alberta T2P 4J7Fax: 403-260-0524

SALE PROCEDURE

VDR AvailableWeek of

Holiday

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JULY 2015

30 3129

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AUGUST 2015

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Ember Resources has engaged CIBC to assist with the sales process of their Fee Title and Gross

Overriding Royalty properties in Central and Southern Alberta. Ember will consider all proposals for

the asset, however, they reserve the right to evaluate offers according to select criteria, at their sole

discretion.

Bid Date – A formal proposal guidance letter will be distributed, outlining instructions for submitting a proposal.

Confidentiality Agreement (“CA”) - Signed CAs should be forwarded by email, fax or courier to CIBC

Confidential Information – Once a CA has been signed, confidential information will be made available through:- access to a virtual data room (“VDR”)- access to a physical data room located in CIBC’s Calgary office

VDR – Once a CA has been executed, a CIBC representative will contact you with an invitation to join the VDR.

Timetable – Timing for this offering is as follows:

Data Rooms and VDR open week of: July 20, 2015Timing of proposals expected: Late August, 2015

The timetable is subject to revision, at any time, at the discretion of the Company and CIBC. Interested Parties who have expressed an interest in submitting a Proposal will be notified of any changes to the actual date for submitting of Proposals.

Contacts – Interested parties are not to contact the Company directly. All communications, inquiries and requests for information relating to the process should be directed to one of the CIBC individuals listed below.

NOTES

DISCLAIMER - This presentation is confidential and has been prepared by CIBC World Markets Inc. (“CIBC”). In preparing this presentation, CIBC has relied without any independent verification on information provided or that is publicly available. The information and any analyses in this presentation are preliminary and is not intended to constitute a “valuation,” “formal valuation,” “appraisal,” “prior valuation,” or a “report, statement or opinion of an expert” for purposes of any securities legislation in Canada or otherwise. We are not legal, tax or accounting experts and we express no opinion concerning any legal, tax or accounting matters or the sufficiency of this presentation for your purposes. This printed presentation is incomplete without reference to the oral presentation, discussion and any related written materials that supplement it. These materials are confidential and are intended solely for your benefit and for your internal use only and may not be reproduced, disseminated, quoted from or referred to in whole or in part at any time, in any manner or for any purpose, without obtaining the prior written consent of CIBC World Markets Inc. in each specific instance. CIBC employees are prohibited from offering to change or otherwise influence any research report, rating or price target to any company as inducement for the receipt of any business or compensation. CIBC is a wholly-owned subsidiary of Canadian Imperial Bank of Commerce and a part of Canadian Imperial Bank of Commerce’s wholesale banking arm, which also includes CIBC’s affiliates: CIBC World Markets Corp., CIBC World Markets plc, CIBC World Markets Securities Ireland Limited, CIBC Australia Ltd, and CIBC World Markets (Japan) Inc. All values are expressed in Canadian dollars, unless otherwise noted.

CENTRAL & SOUTHERN ALBERTA FEE TITLE/ GORR … u 314 gross (265 net) HSC CBM / Belly River locations...

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Transcript of CENTRAL & SOUTHERN ALBERTA FEE TITLE/ GORR … u 314 gross (265 net) HSC CBM / Belly River locations...