Liquids Rich Montney - blackswanenergy.com

1 Liquids Rich Montney Value |Scale | GrowthApril20182FT ST JOHNEDMONTONMONTNEYBRITISH COLUMBIAALBERTA10 kmLiquids-Rich Montney 231,000 net acres100% working interestBlack Swan Energy: Value, Scale, GrowthHigh Quality Asset 40% full-cycle & 80% half-cycle returns at $ AECO1 9 Bcf EUR avg over last 48 Hz Upper Montney wells Liquids yield 30-50 bbl/MMcfMaterial Scalable Position 360 net sections of Montney rights2(100% WI) Inventory of over 2,600Hz Montney locationsEgress Supports Growth Flexible plan capable of 100,000 boe/d in 5 years Gas egress commitment growing to >390 MMcf/d Contracts held on three mainline transmission systemsInfrastructure Advantage Owned & operated infrastructure North Aitken plant.

2 $ operating cost (2018E) Flexible pace of developmentStrong Balance Sheet 7 year term notes component to debt portfolio3 Unutilized capacity on $270 MM bank line4 Maintain an expected D/CF target of < US$60/bbl WTI. Reference well economics slide for returns details and Appendix for net DSUs where one DSU = 700 acres Jan 2024, 9% a $50 MM accordion for additional syndicate participation; $66 MM drawn at Dec 31, 2017 with $27 MM allocated to LCs3 - 4,000 8,000 12,000 16,000 20,000 24,000 28,000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1Q2Q3Q4201320142015201620172018 EAvg.

3 Daily Production (boe/d)Building Momentum Exiting 2017 Production GrowthDelineationDevelopmentCorporate Production Dec 2016: 16,650 boe/d (16% Liquids ) Dec 2017: 27,100 boe/d (20% Liquids ) 2018E: 26,000 26,500 boe/d (20% Liquids )Reserves Growth1 2017 YE: PDP 55 MMboe; 2P 423 MMboe PDP reserves increased 46% 2017 YE valuation (NPV10)2: PDP $478MM | 1P $ | 2P $ Inception to date 2P FD&A of $ 78% CAGR Q4 2014-2017(achieved with less than one rig annually)Significant reserves based on large delineated area of development05010015020025030035040045050 0550201220132014201520162017 Reserves (MMboe)

4 PDPPDNP + PUDP robableReserve by GLJ Petroleum January 1, 2018 price forecast, includes 1P FDC $ B and 2P FDC $ BLower Montney assigned to Contingent4 Financial Performance Demonstrated material cost savings per unit with execution of growth plan Transportation costs increase reflects increased Alliance capacityReducing Cash Costs 2017 delivered record cash flow of $71 MM and net earnings of $41 MM1 Cash flow margins protected by: Infrastructure ownership strategy Disciplined spending and cost controlsGrowing Cash Flow$ $ $ $ $ $ $/boeControllable Cash Costs (corporate)OpexTransportationG&AFinancin g$ $ $ $ $ $ $0$5$10$15$20$25$30Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q 3Q4Q1Q2Q3Q42014201520162017 AECO (C$/GJ)Cash FlowCash Flow vs.

5 Commodity PricesCash Flow ($MM)Cash Flow Netback ($/boe)AECO Natural Gas (C$/GJ) unrealized hedging gains of $32 MM5$ $ $ $ $ $ $ $ Costs ($MM/well)Drilling CostCompletion CostDesign EvolutionRepeatable Well Deliverability at Low CostDecreasing Costs on Multi-well Pads$ MM2$ MM$ MM$ (Bcf/well)Upper Montney Wells (by completion date)EUR (on-stream)Average EUR2012/132014201520162017 Evolving Wellbore Design 2017: tested increased well length, proppant loading, stage count and inter-well spacing 2018 wellbore design range3: Base design (pads): $ and 9 Bcf Aggressive design: up to $ and >9 Bcf (pending evaluation of 17 program) results are not normalized for $ MM for cost of testing design design includes 1,800 m lateral, 30 stages, 60 T/ frac.

6 Average well cost excludes land retention wellsOngoing Operational Success Avg EUR: Bcf since 2012 (48 wells)1 Repeatable and predictable outcomesDriving Lower Costs Continuous rig program Ongoing optimization Pad drilling Frac water infrastructure Timing of completions$ $ MM360%20%40%60%80%100%120%140%160%180%$ Stn 2$55/bbl WTI$ Stn 2$60/bbl WTI$ Stn 2$65/bbl WTIIRRS tation 2 DeliveryHalf-Cycle Bcf ( Bcfe) Bcf ( Bcfe) Bcf (12 Bcfe)05010015020025001,0002,0003,0004,00 05,0006,0007,000060120180240300360420480 C5+ (bbl/d)Gas Rate (Mcf/d)

7 Normalized DaysBlack Swan Upper Montney Performance vs Type Bcf Type CurveBlack Swan Upper Montney Average (Gas)180 mbbl C5+ Type CurveBlack Swan Upper Montney Average (C5+)Compelling Economics: Low Cost, Liquids Rich, Hot Gas provided in the Appendix, type curve based on restricted draw + includes lease & plant recoveries; C3/C4 yield from the plant is additional and not shownLiquids Contribution Total 360 mboe per well: 9 Bcf wells expected to deliver 180 mboe of C5+ over the life of the well; almost half recovered in the first 5 years Additional 180 mboe of C3/C4 expected at a realized price of ~50% of WTI0%10%20%30%40%50%60%70%80%$ AECO$55/bbl WTI$ AECO$60/bbl WTI$ AECO$65/bbl WTIIRRAECO DeliveryFull Cycle Bcf ( Bcfe) Bcf ( Bcfe) Bcf (12 Bcfe)$0/GJ Station 2 Breakeven:(US$60/bbl WTI & Bcf Well)$ AECO Breakeven:(US$60/bbl WTI & Bcf Well)7 Owned & Operated Infrastructure: Flexible Pace of GrowthNorth Aitken CreekGas Plant 110 MMcf/d capacity10 sales gas line.

8 Connects to Enbridge T-North system50 MMcf/d compression & dehy, volumes flow to McMahon for processing 6 6 6 10 10 Gathering trunk-lines built H1/1610 8 10 kmExisting gathering trunk-lines110 MMcf/d North Aitken Creek (Plant 1)Future site for 198 MMcf/d facility (Plant 2) 41 km raw gas gathering lines to North Aitken plant & Black Swan compressors 22 km sour gas lines to 3rdparty facilities 14 km sweet sales gas lines (Enbridge T-North & Alliance) capacity reached Nov FID on Plant 2 Plant 1: 110 MMcf/d 50 MMcf/d (Q1 2016) + 60 MMcf/d (Q2 2017)1 Liquids recoveries capable of ~40 bbl/MMcf (>50% C5+)Plant 2: 198 MMcf/d Engineering in progress with long lead equipment included in 17 budget Phase A on-stream timing to match pipeline expansionsInfrastructure Investment At 2017 YE: $312 MM 2018 Budget.

9 $90 MM2805101520253035404550 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 Liquids Yield (bbl/MMcf Raw)C5 Yield (bbl/MMcf Raw)C3/C4 Yield (bbl/MMcf Raw)020406080100120 Jan/16 May/16 Sep/16 Jan/17 May/17 Sep/17 Jan/18 Gas Production (MMcf/d)Inlet Gas (MMcf/d)Inlet Capacity (MMcf/d)Expanded CapacityOwned & Operated Infrastructure: Lower Costs & Higher NetbacksFinal compressor commissionedPlant at capacity of 110 MMcf/dStable Liquids : ~45 bbl/MMcf $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $/boeRoyaltyTransportationOperating CostC3/C4 RevenueC5+ RevenueGas RevenueHigher Revenues & Lower Costs2017 Field Netback1$ Tier 2018E Operating : Average price of $ , -$ Station 2 to AECO differential, US$ WTI and $ C$/US$, excludes hedging gains/(losses)Source.

10 National Bank Financial and Black run time prior to turnaround for expansion$ $ $ $ $ $ $ 1 Peer 2 BSE PlantBSEPeer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10$/boe905,00010,00015,00020,00025,00030 ,000 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Daily Production (boe/d)Black Swan ProductionActuals (Gas)Actuals ( Liquids )Base DeclineCompleted Awaiting Capacity2018 CompletionsCapital Program Drives Transition to Low Cost Structure26,000 26,500 boe/d 2018E average production outlookProducing at Record Rates Averaged 24,100 boe/d in Q4/17 Achieved 27,100 boe/d in December 17 Produced daily volume >29,000 boe/d2017 Cost Structure Operating & corporate costs per boe trending lower with increased volumes through Black Swan facilities0%10%20%30%40%50%60%70%80%90%1 00%$ $ $ $ $ $ $ $ $ to McMahon (% of total)$/boeCorporate Operating Costs ($/boe)