CORPORATE PRESENTATION NOVEMBER 2014 FirstEnergy’s Energy Growth Conference TSX-V: MQL OTCQX: MQLXF MARQUEE DELIVERS 0 ˃ Forward Looking Statements This presentation is for information purposes only and is not intended to, and should not be construed to, constitute an offer to sell or the solicitation of an offer to buy securities of Marquee Energy Ltd. (“Marquee“). Certain disclosures set forth in this presentation constitute forward-looking information within the meaning of applicable securities laws. Any information contained herein that is not a statement of historical facts is forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, "expect", “believes”, “budget”, “continue”, “could”, “estimate”, “forecast”, “intends”, “may”, “plan”, “predicts”, “projects”, “should”, “will” and other similar expressions. All estimates and information that describe Marquee's future, goals, or objectives, including management’s assessment of future plans and operations, constitute forward-looking information under applicable securities laws. In particular, this presentation includes without limitation forward-looking information pertaining, directly or indirectly, to the following: Marquee's anticipated production and cash flows in 2014; business strategy; the future benefits of the proposed acquisition of assets from Paramount Resources (the "Transaction"), including: the number and quality of future potential drilling opportunities, the expectation of reduced operating and capital costs, anticipated production levels, anticipated debt levels, anticipated reserves, anticipated cash flow, anticipated cash flow per share, anticipated net debt, borrowings under credit facility, operating netbacks, anticipated capital expenditures, 2014 exit production, 2013 exit debt to 2014 cash flow and 2014 capital budget, receipt of TSXV approval for the Transaction. In addition, statements relating to "reserves" are by their nature forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. The recovery and reserves estimates provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. The estimated future net revenue from the production of the disclosed oil and natural gas reserves does not represent the fair market value of these reserves. Forward-looking information relates to future events and/or performance and, may prove to be incorrect. Actual results may differ materially from those anticipated in the information provided. Undue reliance should not be placed on forward-looking information because Marquee can give no assurance that such expectations will prove to be correct. The forward-looking information contained in this presentation is given as of the date hereof and Marquee does not undertake any obligation to update forward-looking information except as required by applicable securities laws. Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six Mcf to one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and do not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of six to one, utilizing a boe conversion ratio of six Mcf to one bbl may be misleading as an indication of value. 1 ˃ Forward Looking Statements Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Marquee believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Marquee cannot give assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this presentation, assumptions have been made regarding and are implicit in, among other things: cash flow projections and netbacks; that Marquee will be able to successfully implement its planned capital expenditure program; bank debt levels; field production rates and decline rates; the ability of Marquee to secure adequate product transportation, and secure such transportation in a timely and cost efficient manner; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business; the ability to operate its properties in a safe, efficient and effective manner; the ability to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters; and the ability to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. Forward-looking information involves known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated and described in the forward-looking information, which include, but are not limited to: exploration, development and production risks; assessments of acquisitions; anticipated success of resource prospects and the expected characteristics of resource prospects; the validity of analogues to other properties and projects; the effectiveness of the application of certain drilling and completion technologies; reserve measurements; availability of drilling equipment; access restrictions; permits and licenses; aboriginal claims; title defects; commodity prices; commodity markets, transportation and marketing of crude oil, liquids and natural gas; reliance on operators and key personnel; competition; lack of diversification; corporate matters; funding requirements; access to credit and capital markets; market volatility; cost inflation; foreign exchanges rates; general economic and industry conditions; health, safety and environmental risks; climate control legislation; failure to obtain regulatory approvals; government regulation and taxation; and those other risks described in Marquee’s Annual Information form dated March 20, 2014 filed under Marquee’s profile on www.SEDAR.com. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. The forward-looking information contained in this presentation is given as of the date hereof and Marquee does not undertake any obligation to update forwardlooking information except as required by applicable securities laws. Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six Mcf to one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and do not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of six to one, utilizing a boe conversion ratio of six Mcf to one bbl may be misleading as an indication of value. 2 ˃ Corporate Direction Identify Consolidate Position 100 boe/d • Acquired assets and infrastructure at Michichi from Sonde Resources to double corporate production • Acquired high quality Lloydminster oil property • Purchased gas plant and gathering system at Michichi • Built team 5,600-5,800 boe/d forecast exit 3,700 boe/d exit 2,300 boe/d exit 2011 Recap 2014 Capitalize on experience & assets 2013 Strategic Business Combination 2012 First Michichi horizontal oil production Exploit • Used 3D & 2D seismic to aid mapping and high-grade oil locations at Michichi • Acquired contiguous land, infrastructure and production from Paramount Resources in the heart of the Michichi fairway • Plan to drill 27 net wells at Michichi and Lloydminster in 2014 • De-levered balance sheet with May financing and sale of non core gas weighted Pembina property • $17 million financing • Acquired Michichi property 2011 2012 2013 2014E Debt/Cash Flow 2.9x 5.1x 6.1x 1.4x EV/DACF 8.1x 8.4x 9.7x 3.5x 3 ˃ Corporate Strategy Marquee plans to develop and expand its core oil plays to generate superior, risk-adjusted returns for shareholders. Production Growth • Company has grown from 100 boe/d to 5,000+ boe/d since 2011 Improving Netbacks • Reduced Q3 operating and G&A costs per BOE by 37% and 35%, respectively, year-over-year Outstanding Resource Play • • • • ~175 drilling locations at Michichi Significant upside across ~215 net sections (92% W.I.) Downspacing and waterflood potential exists Marquee owns infrastructure at Michichi, including a 2,000 bbl/d battery Management and Board • • Seasoned management team and board Management team has an abundance of resource-play successes Strengthening Balance Sheet • • 1.4x projected 2014 YE net debt to Q4 annualized cash flow >$30 mm of room projected at YE 2014 on $95 million credit facility 4 ˃ Marquee Profile Market Profile (TSXV:MQL) Shares Outstanding (MM) Insider Ownership (basic/fully diluted) Liquidity (shares/day YTD) (1) 120.3 14.9%/18.1% 519,071 Operations Average Production Q3 (boe/d) (2) Forecast 2014 Exit production (boe/d) 5,143/42% oil & liquids 5,600-5,800/52% oil & liquids Undeveloped Land (net acres) ~240,000 Drilling Inventory (100% oil focused) >225 net 2014 Corporate Decline 22% Finances 2014 Forecast Cash Flow ($MM) 2014 Capital Expenditure Program ($MM) $38 $62.2 ($46.5 net of dispositions) 2014 Forecast Cash Flow/Share ($/share) $0.34 Net Debt ($MM) (3) $54.7 Credit Facility ($MM) (4) $95 Tax Pools Tax Pools ($MM) (1) (2) (3) (4) $226.9 As of October 31, 2014 Q3 sales volumes At September 30, 2014 Includes $80mm revolving line of credit and $15mm A&D line of credit 5 ˃ Balance Sheet Performance Cash Flow & D/CF 12000 8 Debt to Cash Flow Ratio 10000 Maintained a pristine balance sheet and increased financial flexibility 7 8000 5 6000 4 4000 Debt/CF (x) 6 3 Opex and G&A 0 0 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Lowered G&A costs by ~50% on a per BOE basis since 2013 OPEX $8.00 Q4 2014E Quarter $25.00 $10.00 1 G&A $20.00 $6.00 $4.00 $15.00 $2.00 $- $10.00 Q1 2013 Q2 2013 Q3 2013 2013 Q1 2014 Q2 2014 Q3 2014 2014E Quarter 6 OPEX 2 2000 G&A Costs Cash Flow ($000) 9 Cash Flow ˃ Q4 2014 Pricing Scenarios Strong balance sheet and hedging program insulates Marquee from potential price volatility Fixed $CAD 3.50 Gas 2.5 2 10,000 1.5 8,000 6,000 1 4,000 0.5 2,000 0 0 $70.00 $75.00 $80.00 $85.00 $90.00 2 12,000 Q4/2014 Cash Flow ($M) 12,000 1.5 10,000 8,000 1 6,000 4,000 0.5 2,000 0 0 $3.00 $3.25 $3.50 $3.75 $4.00 Natural Gas Price $US WTI Q4/14 CF (Hedged) Q4/14 D/CF (Hedged) Fixed $US 80 WTI 14,000 Q4/2014 Debt/ Cash Flow Ratio Q4/2014 Cash Flow ($M) 14,000 Gas Sensitivity Q4/2014 Debt/Cash Flow Ratio Oil Sensitivity Q4/14 CF (Unhedged) Q4/14 D/CF (Unhedged) MQL has hedged 35% of its projected Q4 2014E oil volumes at an average of CAD $ 100.94/bbl Q4/14 CF (Hedged) Q4/14 CF (Unhedged) Q4/14 D/CF (Hedged) Q4/14 D/CF (Unhedged) MQL has hedged 60% of its projected Q4 2014E gas volumes at an average of CAD $ 4.08/mcf 7 ˃ The Michichi Advantage Extensive Oil Potential • >10 million barrels of oil in place per section combined for the Banff and Detrital zones in the focus area Dominant Land Base • ~215 net undeveloped sections • Crown land, 92% avg. W.I. Extensive Inventory • >175 horizontal oil focused inventory identified to date (16 proven and 14 probable locations booked) Operational Strength • 2 gas plants (28 mmcf/d total capacity) • 2,000 bbl/d oil battery and terminal and new 1,000 bbl/d multi-well battery Land Base Offers High Netback, Multi-Year Oil Focused Drilling Inventory 8 # of Wells Drilled ˃ Drilling Success at Michichi 45 40 35 30 25 20 15 10 5 0 Horizontal Wells Drilled at Michichi by Operator* Drilled MQL* BNP *Includes Sonde & Paramount horizontal wells *As of Aug 30, 2014 • Michichi production ~4,200 boe/d • Since December 2011, Marquee has drilled 31 HZ wells at Michichi HUSKY Licensed CNQ DIRECT Operator Superior Results Generated From Marquee Assets and Experience 9 ˃ 2014 Michichi Drilling Plans • 100% success rate on 13 HZ oil wells drilled in 2014 • Production results continue to improve based on technical and drilling/completion optimization • Extensive use of 3D seismic database to target new drilling locations acquisition of new 3D seismic underway to aid expansion of focus area Focus area combines best results and access to Marquee infrastructure 10 ˃ Michichi Economics ECONOMIC POTENTIAL Michichi Focus Area Well Production Forecast* Peak IP 30 Rate 186 boe/d IP 90 Rate 165 boe/d Reserves 174 mboe 160.0 DCET $2.3 MM 140.0 Operating Netback 200.0 BOE/D 180.0 120.0 $47.11/boe WELL ECONOMICS 100.0 NPV @10% (BTax) 80.0 60.0 $2.3 MM ROR 68% Recycle Ratio 3.5X 40.0 Payout Period (years) 1.4 20.0 Finding Cost $13/boe 0.0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Months Pricing Assumptions 28 30 32 34 36 WELL COST (DCET) Drill & Case ($K) $1,300 Complete $700 70% Oil & NGLs Equip & Tie-in $300 Crown Royalty Reduction: 24 months or 60 mstb TOTAL November 2014 Sproule Pricing $2,300 Top tier rate of return economics based on Marquee well results *Well production forecast is based on selected Marquee producing wells within the focus area 11 ˃ Michichi – Improvement of Capital Cost Structure Infrastructure enhancements have significantly reduced tie-in times. Advancements to Marquee’s drilling design and operations process have successfully decreased drilling costs over time. Infrastructure ownership generates dramatic reduction in tie-in times and acceleration of cash flow 12 ˃ Lloydminster • Average October production: 640 bbls/d • Low-risk drilling inventory >50 locations (6 proven, 4 probable booked) • Significant production growth upside Vertical Wells Sparky/GP HZ wells Peak IP 30 Rate 35 bbls/d 90 bbls/d Reserves* 42 mstb 70 mstb DCET $0.60 MM $0.95 MM Operating Netback $40.20/bbl $45.60/bbl $0.46 MM $1.03 MM ROR 60% 105% Recycle Ratio 2.8X 3.4X Payout Period (years) 1.6 1.1 $14.20/bbl $13.60/bbl ECONOMIC POTENTIAL WELL ECONOMICS NPV @10% (BTax) Finding Cost Pricing Assumptions November 2014 Sproule Pricing Blend 50% Crown/50% freehold royalties Low Capital Cost and High Rate of Return *Lloydminster economics are based on Marquee well results that management believes are representative of future drilling opportunities in the area 13 ˃ 2014 Guidance Marquee’s 2014 capital program is committed to continued production and cash flow growth at Michichi and Lloydminster. More than 85% of the overall budget will be spent at Michichi. Updated Capital Budget • • • • • 13 horizontal and 1 vertical well at Michichi 3 (net) horizontal and 6 vertical wells at Lloydminster Infrastructure, land & seismic Well optimization and exploitation Active program for non-core dispositions Exit Production $46.5 MM(1) 5,600 - 5,800 Boe/d (2) Cash Flow (3) Debt (Exit 2014) $38 MM $62 MM 2014 Exit Debt to 2014 Cash Flow (4) 1.4 times (1) (2) (3) (4) Net of dispositions Reflects sale of 425 boed non core production to date in 2014 Based on 2014E CAD $103.17 WTI, $4.28 AECO, -$21.45 heavy oil differential Q4 2014 cash flow annualized 2014 Capital Program Designed to Build on Recent Drilling Success 14 ˃ Why own shares in Marquee today? • Few juniors boast a comparable scalable, low risk, developmentstage, oil-prone asset base with a clearly delineated drilling inventory capable of supporting many years of profitable growth • Over the last year, the company has shown strong drilling results highlighted by a step-change in deliverability that supports compelling economics • The company is focused on delivering debt-adjusted per share growth in production, reserves, NAV, CF and FCF that will be increasingly attractive to a wide spectrum of investors • The company continues to reduce operating and G&A costs, thereby increasing margins and extending the economic life of its assets • There is distinct value at the current share price as the company trades below its peers with financial flexibility Solid platform for per-share growth 15 ˃ Contact Us For more information, please contact: Richard Thompson President, CEO & Director Email: [email protected] Direct: (403) 817-5561 Main: Fax: 403-384-0000 403-265-0073 Address: 1700, 500-4th Ave SW Calgary, AB T2P 2V6 Investor Inquires: [email protected] Web: www.marquee-energy.com Corporate Information: Trading Symbols: Legal: Norton Rose Fulbright LLP Reserve Evaluators: Sproule Associates Limited Auditor: Collins Barrow Calgary LLP Transfer Agent: Olympia Trust Company Commercial Lender: National Bank Financial, HSBC TSX Venture Exchange MQL.V OTCQX Marketplace MQLXF 16 Appendix 17 ˃ Experienced Management Team Richard Thompson, President & CEO • Mr Thompson has been the President and CEO at Marquee Energy since 2011. Previously, he served as an Executive Vice-President of Cequence Energy Ltd. from 2008 to 2010 and as Vice-President of Exploration of Cyries Energy Inc. from 2004 to 2008. Earlier, he was Manager of Geophysics of Cequel Energy Inc. from 2001 to 2004 and Chief Geophysicist of Cypress Energy from 1997 to 2000. He has been a Director of Marquee Energy since 2011. He previously served as a Director of Cequence Energy Ltd. from 2008 to 2010. Mr Thompson is a geophysicist and graduated from the University of Manitoba in 1979 with a BSc in Geophysics (with honours). Roy Evans, CA, VP Finance & CFO • Mr Evans has been the CFO and Vice-President of Finance at Marquee Energy since 2011. He was previously the CFO at Marquee Petroleum Ltd. (previously Base Oil & Gas Ltd. and Torrential Energy Ltd.). He was associated with KPMG for 23 years, where he was a partner for 15 years. He is a Chartered Accountant with memberships in both the Saskatchewan and Alberta institutes. He currently serves as the Director of Operations for the Alberta Adolescent Recovery Centre. Mr Evans holds a Bachelor of Commerce degree from the University of Saskatchewan. Dave Washenfelder, P. Geol, VP Exploration • Mr. Washenfelder has served as the Vice President, Exploration of Marquee since October 2012. Prior to joining Marquee, he served as Manager, Exploration at Tamarack Valley Energy Ltd. Prior thereto he held positions of increasing responsibility with Saskoil, Wascana Energy and Apache Canada. Mr. Washenfelder is a Professional Geologist with more than 34 years of related experience and graduated from the University of Manitoba in 1980 with a BSc in Geology (honours). Sam Yip, P. Eng, VP Engineering • Mr. Yip is currently the Vice President, Engineering of Marquee, and has served in an executive capacity with Marquee March 2012. Prior thereto he was a Founder, Director and Vice President, Production of Teague Exploration Inc. from 2003 until 2012. Previously with Atco Gas, Webex and Mark Resources. Mr. Yip is a Professional Engineer with more than 30 years related experience and graduated from the University of Calgary in 1982 with a degree in Chemical Engineering. Rob Lemermeyer, VP Operations • Mr. Lemermeyer has served as the Vice President, Production of Marquee since September 6, 2013. Mr. Lemermeyer was the Vice President, Operations since December 5, 2011. Prior thereto he was the Vice President Production for Canadian Coyote Resources from January 2011 to December 2011 and Manager of Production Operations of Base Resources Inc. from October 2007 to December 2010. Steve Bradford, VP Land • Mr. Bradford is the Vice President, Land of Marquee and has served in that capacity since September 6, 2012. Prior to joining Marquee, he served as VP Land with Milestone Exploration Inc. from May 2010, and prior thereto served in progressively senior roles in land with West Energy Ltd., Encana Corporation, and Twin Butte Energy Ltd. 18 ˃ Strong Governance Dennis Feuchuk, BBM, CMA, Chairman • Richard Mr. Feuchuk has served as a Director of Marquee since June 22, 2010. Prior thereto he was President and Chief Executive Officer of Base Oil & Gas Ltd. from October 2009 to May 2011. He was Vice President, Finance and Chief Financial Officer of PrimeWest Energy Trust (an oil and gas trust) from October 2001 to June 2007. Alexander, CMA, CFA 2, 3 Mr. Alexander is the President and Chief Executive Officer and a Director of Parallel Energy Trust, and has served as a Director of Marquee since December 5, 2011. From January 2008 to June 30, 2011, he was President and Chief Operating Officer of AltaGas Ltd. Prior thereto he was the Executive Vice President, Chief Operating Officer and Chief Financial Officer of AltaGas Ltd. from January 2007 to January 2008. Mr. Alexander was Vice President Finance and Chief Financial Officer of Niko Resources Ltd. from October 2003 to April 2006. Carley, BA, LLB., MBA, ICD.D 2, 3 • Glenn Mr. Carley is the President of Selinger Capital Inc., a private investment company and has served as a Director of Marquee since December 5, 2011. Mr. Carley currently serves as the Chairman of Painted Pony Petroleum Ltd. Mr. Carley had been Executive Chairman of Galleon Energy until August, 2011, and Chairman of Culane Energy Corp. until February, 2011. Riddell, B.Sc, M.Sc (Geology) 1 • Jim Mr. James Riddell joined Marquee Energy as a Director in December of 2013. Mr. Riddell is the President and COO of Paramount Resources Ltd. and has held the position since June 2002. Mr. Riddell has been the CEO of Trilogy Energy Corp. since February 2005. He serves as Executive Chairman for Cavalier Energy Inc. and as a Director for Great Prairie Energy Services Inc., MGM Energy Corp., Strategic Oil and Gas Ltd., Big Rock Brewery, DevCorp Capital Inc. (now Great Prairie Energy) and Paxton Corporation. William Roach, B.Sc, MSc, PEng 1 • Dr. • Richard Dr. William Roach joined Marquee Energy as Director in December of 2013. Dr. Roach became the President and CEO of Cavalier Energy Inc. in 2011 He previously served as the CEO of Calera in Los Gato, California and of SilverBirch Energy Corporation. He also served as the President and CEO of UTS Energy between 2004 and 2010. Prior thereto, he held various positions at Husky Energy on the East coast. In addition to Marquee, Dr. Roach serves on the Board of Directors for UTS Energy, Sonde Resources and Sea NG Corporation. Thompson, B.Sc Honours (Geophysics) 1 • See management page • Mr. Gregory Turnbull joined Marquee Energy as a Director in December 2013. Mr. Turnbull is a partner with McCarthy Tetrault LLP Calgary, which he joined in 2002 following his position as partner of Donahue Ernst and Young LLP. Mr. Turnbull is also a Director of Crescent Point Energy, Storm Resources Ltd., Heritage Oil PLC, Hawk Exploration Ltd., Hyperion Exploration Corp., Oyster Oil and Gas Ltd.and Sunshine Oilsands Ltd. Mr. Turnbull is also currently a Director of a number of private companies. Greg Turnbull QC, BA, LLB 2, 3 (1) (2) (3) Reserves committee Audit committee Corporate Governance & Compensation committee 19 ˃ History of Value Creation • Over the same period, Cequel Energy’s share price grew by 518% • Cequel was acquired by Progress Energy in July 2004 at a price of $10.45 per share $12.00 2,000 $9.00 1,500 $6.00 1,000 $3.00 500 $0.00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Volume (000s) • Richard Thompson acted as Manager of Geophysics for Cequel Energy Inc. from 2001 to 2004 Price per share Cequel Energy Performance 0 Jul-04 Cypress Energy Performance • Cypress was later acquired by Primewest Energy in April 2001 at a price of $12.71 per share $15.00 2,000 $12.00 1,600 $9.00 1,200 $6.00 800 $3.00 400 $0.00 Jan-97 Volume (000s) • Over the same period, Cypress Energy’s share price grew by 343% Price per share • Mr. Thompson was Chief Geophysicist of Cypress Energy Inc. from 1997 to 2000 0 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 20 ˃ Analyst Coverage National Bank Financial DAN PAYNE E: [email protected] P: 403-290-5441 Peters & Co. DALE LEWKO E: [email protected] P: 403-261-2215 Haywood Securities Inc. DARRELL BISHOP E: [email protected] P: 403-509-1938 Acumen Capital TREVOR REYNOLDS E: [email protected] P: 403-410-6842 Canaccord Genuity Corp. ANTHONY PETRUCCI E: [email protected] P: 403-691-7807 FirstEnergy Capital Corp. ROBERT FITZMARTYN E: [email protected] P: 403-262-0648 Macquarie Equity Research BRIAN BAGNELL E: [email protected] P: 403-539-8540 Dundee Capital Markets CHAD ELLISON E: [email protected] P: 403-509-2663 Octagon Capital NAV MALIK E: [email protected] P: 416-306-2510 GMP Securities AARON SWANSON E: [email protected] P: 403-543-3563 Independent analysis provides research and perspective 21 ˃ 2014 Production and Netbacks Average Production Liquid Content Q1 Q2 Q3 4024 48% 5,035 43% 5143 42% BOE/D Sales Price $ 59.57 5.37 18.92 4.18 55.93 7.31 16.15 3.51 49.97 6.54 11.67 3.23 /BOE /BOE /BOE /BOE Field Operating Netback Commodity contract settlement $ 31.10 3.59 28.96 3.01 28.53 0.93 /BOE /BOE Operating Netback $ 27.51 4.54 2.56 25.95 3.79 1.92 27.60 3.87 1.89 /BOE /BOE /BOE Cash Flow Netback $ 20.41 20.24 21.84 /BOE Royalty Expense Production Costs Transportation Costs G&A and other (excludes non-cash items) Finance Expenses 22 ˃ Marquee Undervalued Relative to Peers EV / Production 2015E EV / P+P Reserves 1) 2) $4.07 $5.48 $8.37 $9.17 $9.46 $9.61 5.2x 4.0x 4.0x 3.0x 2.0x 2.1x 1.9x 1.5x 1.3x 1.3x 1.1x 0.0x 0.7x 1.0x 0.9x Average: 1.8x 0.6x 2.5x 2.6x 2.9x 3.2x 3.2x 3.6x 3.8x 4.3x 4.4x 5.1x 5.7x 5.0x 0.6x 0.0x 5.8x EV / DACF 2015E 1.0x Average: $3.9x Net Debt 2014 Exit / Cash Flow 2015E 6.0x 6.0x 2.0x $10.82 $5.00 Net Debt 2014 Exit / Cash Flow 2015E 7.0x 3.0x $10.95 $10.00 EV / DACF 2015E 4.0x Average: $11.89 $0.00 $0 5.0x $17.93 $15.00 $13.86 $20.00 $19.15 EV / P+P Reserves $27,414 $10,000 $27,433 $37,874 $20,000 $38,765 $40,786 $40,984 $41,435 $42,394 $30,000 Average: $42,025 $43,986 $40,000 $50,512 $50,000 $53,668 $59,050 EV / Production 2015E $60,000 $23.81 $25.00 $70,000 Estimates as per NBF or Industry Research; includes the following companies: AEI, DEE, HYX, MEI, MQL, OIL, PRY, RMP, RTK, SOG, TVE, YGR Estimates adjusted to reflect NBF commodity pricing based on the October 1, 2014 forward strip (2015E: WTI – US$87.00/bbl, Natural Gas – C$3.90/mcf, $US/$CAD – 1.1267) 23 ˃ Play Type Comparison Play Type Economics Comparison: Half Cycle Payouts Number of Years 13.0 6.0 5.0 4.0 3.0 2.0 4.9 Oil Plays Natural Gas Plays Michichi and Lloydminster Payouts 3.7 3.0 2.9 2.8 Median: 1.3 2.4 2.3 2.2 1.8 1.8 1.8 1.6 1.6 1.6 1.5 1.4 1.4 1.3 1.3 1.3 1.2 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 0.9 0.8 0.7 0.6 0.0 (1) Michichi Horizontal and Lloydminster Vertical as per Marquee estimates. All other estimates as per Peters & Co. Limited research October, 2014. 24 ˃ Marquee History Entered into a reorganization and recapitalization with Base Oil and Gas MAY 19 2011 2011 Closed property acquisition at Michichi to further expand its core area SEPT. 17 2011 2011 Received shareholder approval for the business combination with SkyWest Energy DEC. 5 2011 Acquired gas plant, gathering system and associated production at Michichi OCT. 4 2012 2012 2013 Closed transaction to acquire Western Canada assets of Sonde Resources DEC. 31 2013 2014 Closed bought deal financing with exercise of over allotment for total of ~$20.1 MM MAY 2 2014 2014 AUG. 31 NOV. 18 MAR. 16 NOV. 5 MAR. 6 SEPT. 30 Closed financing with exercise of over allotment for total of ~$17 MM First horizontal well spud at Michichi Closed corporate acquisition of focused high net back heavy oil assets at Lloydminster Closed bought deal flow through financing with net proceeds of $7.6 MM Closed agreement to acquire Michichi property from Paramount Resources Closed sale of noncore gas weighted assets at Pembina for $14 MM 25 24 ˃ Marquee Hedges as of October 3, 2014 Term Hedge Type Counterparty Volume Pricing July 1, 2014 to December 31, 2014 WTI fixed price National Bank 400 bbls/d Cdn $96.00/bbl March 1, 2014 to December 31, 2014 WTI fixed price National Bank 500 bbls/d Cdn $104.90/bbl January 1, 2015 to March 31, 2015 WTI fixed price National Bank 500 bbls/d Cdn $104.00/bbl January 1, 2015 to June 30, 2015 WTI fixed price National Bank 250 bbls/d Cdn $103.00/bbl April 1, 2015 to June 30, 2015 WTI fixed price National Bank 500 bbls/d Cdn $105/bbl February 1, 2014 to December 31, 2014 WCS Differential to WTI National Bank 400 bbls/d Cdn -$21.30/bbl January 1, 2015 to March 31, 2015 WCS Differential to WTI National Bank 300 bbls/d Cdn -$20.70/bbl April 1, 2014 to December 31, 2014 AECO fixed price National Bank 2,000 GJ/d Cdn $3.50/GJ January 1, 2014 to December 31, 2014 AECO fixed price National Bank 3,000 GJ/d Cdn $3.725/GJ March 1, 2014 to December 31, 2014 AECO fixed price National Bank 1,500 GJ/d Cdn $4.28/GJ January 1, 2015 to March 31, 2015 AECO fixed price National Bank 5,000 GJ/d Cdn $4.465/GJ March 1, 2014 to December 31, 2014 PUT* National Bank 4,000 GJ/d Cdn $4.00/GJ * The PUT contract is subject to a monthly premium of approximately $32,000. 26 ˃ Michichi – Geological Model Banff Detrital W Target oil bearing zone Target oil bearing zone E Bantry Ellerslie Detrital Middle Banff Fracturing Lower Banff Fracturing MIDDLE BANFF DETRITAL API (°) 30-36 30-36 Pay (m) 5-20 3-8 Perm (md) 0.1-30 100-300 Porosity (%) 4-9 15-25 DPIIP (sec) 6-12 1-3 10 15 Depth (m) 1200-1300 1200-1300 Reservoir Limestone Shoals (Packstone & Grainstone) locally enhanced through fracturing Sandstone, Siltstone, Pebble Conglomerate Channels RF (%)* Model Indicates Significant Oil in Place in Banff and Detrital Zones * Recovery information is based on average AER published recovery factors for analogous pools in the area 27
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