Corporate UpdateJune 2020

2

Overview

• Private oil & gas company majority owned by Waterous

Energy Fund

• Exclusively located in the Kakwa region, one of the most

active condensate plays in Canada, driven by the high liquids

Montney resource

• Strath’s development to date has focussed primarily on the

Montney formation where drilling has proven one of the

highest condensate yields in the fairway

• Strath’s development is enhanced by proven opportunities in

the Spirit River and Dunvegan formations across its 400

sections

• Q1/20 production of 22,452 boe/d with 56% liquids

• Owned processing capacity and egress in place to support

growth to 35,000 boe/d

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Strath Hammerhead NuVista

Paramount Seven Generations Velvet

XTO Kicking Horse Cequence

Hz Drilling Activity 2013-2019 (Montney, Spirit River & Dunvegan)

Kakwa Region – Major Operators Kakwa Multi-Zone Drilling Activity

0

50

100

150

200

250

300

2013 2014 2015 2016 2017 2018 2019

Montney Dunvegan Spirit River

# o

f w

ells

RR Year

• Active Operators in the Kakwa Region:

• Montney (Middle & Lower) – Seven

Generations, Paramount, Velvet,

Hammerhead, XTO & NuVista

• Spirit River – Jupiter & Tourmaline

• Dunvegan – Whitecap & CNRL

• Strath has proven producing resources in all three

formations

Multi-Zone Development in the Kakwa RegionStrath’s 400 sections of land are characterized by multi-layer Montney

development, with the Spirit River and Dunvegan offering compelling

opportunities.

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Production and Liquids Growth

Q1/2020 ProductionProduction

(boe/d)

% of Total

Production% Liquids

% Oil, Condensate

& Pentanes

Oil, Condensate

& Pentanes Yield

(bbls/mmcf)

Total

Liquids Yield

(bbls/mmcf)

Acquired properties 6,398 28% 41% 14% 40 114

Drills since inception 16,054 72% 62% 39% 172 274

Total 22,452 100% 56% 32% 121 212

Since 2017 Strath has grown production from 5,000 to 22,500 boe/d and increased liquids yield from 40% to 56%, with 72% of current production delivered by Strath’s drilling, with Montney wells averaging IP365 of 1,258 boe/d.

0%

12%

24%

36%

48%

60%

0

5,000

10,000

15,000

20,000

25,000

2017 2018 2019 2020 Q1

% o

f P

rod

uct

ion

bo

e/d

Oil, Condensate & Pentanes Other NGLs Gas Oil, Condensate & Pentanes % Total Liquids %

Strath Team

Management

Steve Fagan, President & CEO

Scott Seipert, VP Finance

Connie De Ciancio, VP Business Development & Land

Tom Everest, VP Engineering

Jon Batchelor, VP Geology

Al Grabas, VP Production

Directors

Steve Fagan, Strath Resources Ltd.

Adam Waterous, Waterous Energy Fund

Andrew Kim, Waterous Energy Fund

Henry Hager, Waterous Energy Fund

James H.T. Riddell, Paramount Resources Ltd.

Bankers

ATB Financial

Royal Bank of Canada

Scotiabank

CIBC

Legal Counsel

Blake, Cassels & Graydon LLP

Reserve Engineers

McDaniel & Associates Consultants Ltd.

Auditors

Deloitte