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RELEASED DECEMBER 2011 / VOLUME 25ISSN 1718-9799 iq.bmir.com Sponsored by

Q3 2011

I R A D E S S OQ U A R T E R LY

CANADIAN OIL & GAS COMPARISON

FINANCIAL and OPERATING RESULTSfor 55 Juniors and 29 Intermediates

FEATURING FACT SHEETSfrom Juniors, Intermediates and Internationals

is unique

everyone

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No two flakes are the same Snowflakes all look the same from a distance. It’s only when you capture a couple of them in your hand and take a close look that you begin to notice the complexity of these seemingly common crystals. There are prisms, plates, dendrites — the list goes on.

The same can be said of Western Canada’s oil and gas sector. On the

surface, almost every oil and gas company operating in the Western Canadian Sedimentary Basin looks the same. Not only do they look the same in the field, they sound the same in the boardroom. If you were blindfolded and dropped into the middle of an investor presentation for a mid-sized oil and gas player, how long would it take for you to figure out the name of the company? You might hear the speaker go on for a while about the company’s experienced management team, strong balance sheet, excellent platform for growth and strategic assets.

But it’s only when you probe a little deeper, examine the numbers and compare and contrast one player against another that it becomes clear that not all oil and gas companies are created equal.

That’s one of the benefits of this iQ Report. This quarterly report is designed to summarize the results of Western Canada’s junior and intermediate oil and gas producers. All the numbers have been compiled into a format that makes it easy to distinguish one player from another. We’ve tried to include every conventional oil and gas company that operates in the Western Canadian Sedimentary Basin, trades on the TSX or TSX Venture exchange and produces between 500 and 100,000 barrels of oil equivalent per day. We’ve also included a list of emerging companies, early-stage oil sands players and international explorers.

While the iQ Report is a useful tool, don’t use it as the sole source information for investment decisions. Use the iQ Report to identify areas that need a closer look. For example, if a company shows a significant increase in production, dig deeper. Read the company’s news releases, listen to webcasts, check out the company’s website, send email to the investor relations contact person, or talk to your investment advisor.

Through your research, you will be able to determine whether a company’s production growth is a result of a successful drilling program or the result of an acquisition for which the company may have paid too much.

This iQ Report and your supplementary research will reduce your risk and that’s all you can ask. There’s no such thing as a sure thing.

Bryan Mills Iradesso’s iQ Report is one of the ways in which we help public oil and gas companies communicate with investors. Although we do not manipulate the numbers, this report does draw attention to our clients through one-page snapshots that surround the comparison charts.

It is our hope that this iQ Report will help you identify and appreciate the characteristics that distinguish one oil and gas company from another.

Geoffrey Vanderburg Editor, iQ Report Bryan Mills Iradesso

MES

SAG

E FR

OM

TH

E ED

ITO

R

Q U A R T E R L Y R E P O R T : Q 3 2 0 1 1 1

Suite 2240, 140 - 4th Avenue SWCalgary, AB T2P 3N3

telephone: 403.503.0144toll-free: 1.866.415.1070email: [email protected]

DECEMBER 2011 / VOL. 25

EDITOR Geoffrey Vanderburg

CHIEF RESEARCHERS Dave Fearman, Jory Debenham

CONTRIBUTORS Laura Bechtel, Tamara Bowlby, Angela Iori and Donna Venzi

Data provided by CanOils Database Limited and BMIR researchers

PRODUCTION COORDINATOR Leanne Hauge

LEAD DESIGNER Thomas Magee

PRODUCTION ARTIST Robert Bourassa

PRINTER Rhino Print Solutions

Please email us at [email protected] or fill out the subscription form at iq.bmir.com to ensure you receive your free copy of the iQ Report.

R E L E A S E S C H E D U L E

Q1 2012 iQ Release:

Week of June 4, 2012

Q3 2011 Review

Snowflakes and oil and gas stocks behave differently in that snowflakes only fall while oil and gas stocks are also supposed to go up. That didn’t happen in the third quarter of 2011. Almost every single oil and gas player lost ground during the quarter. Fortunately, the sector managed to trim its losses over the following two months. In the third quarter, the median intermediate lost 22 percent while the median junior lost 24 percent. In the five months following the start of Q3, the intermediates had a median return, including dividends, of -10 percent. Over the same five-month period, the juniors returned -16 percent. It’s stormy out there.

The median enterprise value of Western Canada’s junior oil and gas companies slid in the third quarter of 2011, in line with the sliding share prices.

Adding together a company’s market capitalization with its net debt gives us the total value attributed to the company, referred to as the enterprise value. When we compare enterprise values to production levels, we see a wide range of valuations. Companies with strong valuations are better able to access capital or use equity to complete deals that are accretive to shareholders.

The median enterprise value of the juniors in the third quarter of 2011 fell to $59,912/boe compared with the median enterprise value of $74,834/boe in the second quarter of 2011 and $59,692 in the third quarter of 2010. The range in the latest quarter is from $19,229/boe to $244,464/boe.

For the intermediates, the median enterprise value of $74,958/boe in the third quarter of 2011 compares favourably with the median enterprise value of $72,751/boe in the second quarter of 2011 and $70,968/boe in the third quarter of 2010. The valuations in the latest quarter range from $14,338/ boe to $184,073/boe.

The stock market malaise faced by Canada’s oil and gas companies did not reflect their operational performance in the third quarter of 2011. The oil and gas sector managed to achieve something in the third quarter that they don’t achieve very often. Not only did they increase their overall production, which is common, they increased their production per share, which is rare.

From the second quarter to the third quarter of 2011, the intermediates showed a median increase of 5.0 percent in overall production and 4.0 percent in production per share. The juniors performed almost as well, with the median overall production increasing 4.2 percent while production per share increased 1.9 percent.

By comparison, the intermediates showed a median drop of 2.9 percent in production per share from Q1 to Q2 2011. The juniors fared worse, with the median production per share dropping 5.3 percent from Q1 to Q2 2011.

We’ve seen signs that Western Canada’s junior oil and gas companies are trying to decrease their dependence on natural gas since low natural gas prices are depressed relative to oil prices, but the average junior and intermediate company is still producing more natural gas than oil. The median junior had a natural gas weighting of 55.6 percent in Q2 2011 compared with an almost identical 55.5 percent in Q3 2011 while the median intermediate natural gas weighting was 65.0 percent in Q3 2011 compared with 67.9 percent in the previous quarter.

FALL ING FLAKES

SL IDING VALUES

PRODUCTION PER SHARE INCHES UP

GAS PAINS

COMMUNICATION MATTERS

Information for investors

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C O N T E N T S

B R Y A N M I L L S I R A D E S S O • I Q . B M I R . C O M2

1 Q3 2011 REVIEW

4 WHEELING AND DEALING

5 JUNIOR COMPARISON CHARTS 6 Q3 Production (boe/d)

7 Q3 Production Mix - Natural Gas Weighting (%)

8 Change in Production Q2 2011 to Q3 2011 (%)

9 Change in Production per Share – Q2 2011 to Q3 2011 (%)

10 Enterprise Value Versus Q3 Production ($ per boe/d)

11 Q3 Cash Flow Netback ($/boe)

12 Q3 Operating and Transportation Expenses

13 Q3 General and Administrative Cash Expenses ($/boe)

14 Q3 Depletion, Depreciation and Accretion Expenses ($/boe)

15 Annualized Q3 Cash Flow Multiples

16 Q3 Net Debt to Annualized Cash Flow

17 Q3 Total Return – Capital Gains and Distributions or Dividends (%)

18 Juniors Listing – Data Table

33 INTERMEDIATE COMPARISON CHARTS 34 Q3 2011 Production (boe/d)

34 Q3 Production Mix – Natural Gas Weighting (%)

35 Change in Production – Q2 2011 to Q3 2011 (%)

35 Change in Production per Share (Q2 2011 to Q3 2011)

36 Enterprise Value Versus Q3 Production ($ per boe/d)

36 Q3 Cash Flow Netback ($/boe)

37 Q3 Operating and Transportation Expenses ($/boe)

37 Q3 General and Administrative Cash Expenses ($/boe)

38 Q3 Depletion, Depreciation and Accretion Expenses ($/boe)

38 Annualized Q3 Cash Flow Multiples

39 Q3 Net Debt to Annualized Cash Flow

39 Q3 Total Return – Capital Gains and Distributions (%)

40 Intermediate Data Table

46 CANADIAN COMPANIES OPERATING ABROAD

51 EMERGING CONVENTIONAL COMPANIES WATCH LIST

52 EMERGING OIL SANDS COMPANIES

I N T H I S I S S U E DECEMBER 2011


RETURN UNDELIVERABLE CANADIAN ADDRESSES TO:

BRYAN MILLS IRADESSO

2240, 140 4th Avenue SW, Calgary, AB T2P 3N3

ABBREVIATIONS

bbls • barrels of oil

boe • barrels of oil equivalent

boe/d • barrels of oil equivalent per day

mcf • thousand cubic feet

mmcf • million cubic feet

NGLs • natural gas liquids

ASSUMPTIONS

• Barrels of oil equivalent calculated using 6 mcf = 1 boe.

• Net debt has been calculated by including bank debt, debentures, preferred convertible shares and working capital.

• For companies with A/B share structures, B shares have been converted to A shares using end-of-period share prices.

• For trusts, exchangeable units have been converted to trust units using end-of-period exchange ratios.

D I S C L A I M E R

The information used to compile this report is publicly

available. Bryan Mills Iradesso provides the comparison to

shine the spotlight on these segments of the energy industry,

and to communicate the achievements and growth potential

of the oil and gas companies and trusts. The iQ Report does not

constitute a solicitation or recommendation for the purchase

or sale of any security; it is provided for information only and

is not intended to serve as investment advice. Bryan Mills

Iradesso cannot be held responsible for accuracy and all readers

are encouraged to conduct their own research. This report

is provided by Bryan Mills Iradesso as a service to the reader

without responsibility for accuracy. Bryan Mills Iradesso must

be credited with developing the iQ Report if any part of it is

reproduced. The companies that have provided a corporate

profile for this report have paid Bryan Mills Iradesso a fee.

41 Crescent Point Energy

42 Guide Exploration

43 NAL Energy

44 Perpetual Energy

45 PetroBakken Energy

48 Bengal Energy

49 Equal Energy

50 Petrominerales

I N T E R M E D I AT E S N A P S H OT S

I N T E R N AT I O N A L S N A P S H OT S

20 Anderson Energy

21 Arsenal Energy

22 Delphi Energy

23 Exall Energy

24 Hyperion Exploration

25 Ironhorse Oil & Gas

26 Novus Energy

27 Second Wave Petroleum

28 Strategic Oil & Gas

29 Surge Energy

30 Tamarack Valley Energy

31 Yoho Resources

J U N I O R S N A P S H OT S


JUN

IOR

& IN

TERM

EDIA

TE D

EALS

IQ REPORT CATEGORY CHANGES

• Vero moved to junior from intermediate

• Equal moved to the map of international players from the list of juniors since most of its production is from the United States

• Galleon Energy changed its name to Guide Exploration, but the Company is still an intermediate player

• Bowood moved to junior from emerging

• Dejour moved to junior from emerging

DONE DEALS

The following deals have closed since our previous iQ Report in June 2011. Daylight Energy is the only company in the following list that meets the criteria for inclusion in the iQ Report. These transactions are listed for interest only and do not affect the comparison charts.

• Daylight Energy Ltd. acquired by Sinopec Corp. (Dec 2011)

• JSC Tysagaz acquired by 3P International Energy Corp. (Sept 2011)

• MEC Operating Company, ULC Energy Trust acquired by Newton Energy Partners, LLC (Sept 2011)

• North Sea Energy Inc. acquired by Ranger Energy Ltd. (Oct 2011)

• Alpetro Resources Ltd. acquired by Big Coulee Resources Ltd. (Nov 2011)

• Lakeridge Energy Corp., Shoreline Acquisition Corp. and Shoreline Oil & Gas Ltd. acquired by Shoreline Energy Ltd. (Nov 2011)

• OPTI Canada Inc. acquired by China National Offshore Oil Corporation (Nov 2011)

• Cascade Resources Inc. acquired by Northern Spirit Resources Inc. (Nov 2011)

DEALS ANNOUNCED, BUT NOT CLOSED

• Shorthorn Exploration Ltd. to be acquired by Carmen Energy Inc. (expected close Jan 2012)

• Toreador Resources Corporation to be acquired by ZaZa Energy LLC (expected close Jan 2012)

• Emerge Oil & Gas Inc. to be acquired by Twin Butte Energy Ltd. (expected close Jan 2012)

• Charger Energy Ltd., Silverback Energy Ltd. and Sirius Energy Inc. to be acquired by Seaview Energy Inc. (expected close Jan 2012)

• Compass Petroleum Ltd. to be acquired by Whitecap Resources Inc. (expected to close Feb 2012)

Please note that this summary is not exhaustive and is focused on corporate acquisitions relating to conventional juniors and intermediate producers meeting the criteria for our comparison charts.

wheeling & dealing


junior oil & gas companies

C O M PA R I S O N

INCLUSION CRITERIA

• Primary business must be oil and gas exploration, development and production

• Q3 2011 production must fall between 500 and 10,000 barrels of oil equivalent per day (boe/d)

• Majority of production must be from Western Canada

• Must be publicly traded on the TSX or TSX Venture Exchange

511

514

547

605

612

613

679

682

822

884

895

1,049

1,050

1,057

1,101

1,242

1,253

1,418

1,470

1,522

1,563

2,135

2,159

2,185

2,263

2,411

2,423

2,498

2,767

2,852

2,862

2,946

2,957

3,400

3,684

4,002

4,064

4,174

4,319

4,608

5,479

5,887

6,053

6,071

6,166

6,190

6,485

7,195

7,351

7,599

8,460

8,967

9,014

9,262

9,833

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Storm

Dejour

Bowood

Petro-Reef

Ironhorse

Twoco

Reliable

Argosy

WranglerWest

Strategic

Shoreline

Exall

Hyperion

Sure

Tamarack

TriOil

Yangarra

Palliser

SecondWave

SkyWest

Pinecrest

DeeThree

Novus

Arsenal

Seaview

Bellamont

Yoho

Artek

Waldron

Renegade

Rock

Sonde

Insignia

RMP

Arcan

Crocotta

PaintedPony

OpenRange

Skope

Midway

Emerge

Bonterra

Terra

Longview

Surge

WildStream

Whitecap

Freehold

Anderson

TwinButte

WestFire

Delphi

Zargon

Vero

Cequence

small producers with big potentialWhile investors can make a lot of money by investing in the right junior oil and gas company, most of today’s juniors are small in terms of production. Very small. In fact, if you add together the average daily production levels of every junior player in the sector you get 188,810 boe/d for third quarter 2011, far below Suncor’s total production including the oil sands during the quarter of 546,000 boe/d.

For our iQ Report, we defined juniors as companies with production from 500 barrels of oil equivalent per day (boe/d) to 9,999 boe/d. Other parameters are included on the previous page.

“Intermediate” and “emerging” domestic companies are featured in sections beginning on page 33 and 51 respectively. A section on Canadian-based international companies is found starting on page 46.


JUN

IOR

CO

MPA

RISO

N Q3 PRODUCTION (BOE/D)Median = 2,498 boe/d

0

0

4

4

4

6

10

11

12

20

25

27

30

30

34

35

36

36

36

37

39

39

41

46

52

53

55

56

56

58

60

64

65

67

68

69

72

72

73

75

75

76

76

77

77

82

82

83

83

84

85

85

89

92

100

0 10 20 30 40 50 60 70 80 90 100

Reliable

Pinecrest

Renegade

Emerge

Palliser

Arcan

WildStream

Exall

Arsenal

Novus

Longview

Rock

Bonterra

Midway

SecondWave

WestFire

Whitecap

Strategic

Dejour

TwinButte

Surge

Freehold

Zargon

Hyperion

TriOil

Bellamont

Yangarra

Sure

Artek

Tamarack

SkyWest

DeeThree

PaintedPony

Crocotta

Anderson

Petro-Reef

Sonde

Delphi

Argosy

RMP

Insignia

Yoho

Vero

Waldron

Shoreline

Seaview

WranglerWest

Twoco

Terra

Bowood

Storm

Ironhorse

Cequence

OpenRange

Skope

easing the gas painsWestern Canada’s junior oil and gas companies are easing their gas pains by slowly increasing their oil weighting. Oil has been priced higher than natural gas for a long time, but the juniors continue to produce more natural gas than oil. That said, the juniors are definitely reducing their dependence on natural gas. In the third quarter of 2011, the median junior had a natural gas weighting of 56%, compared with 65% in the third quarter of 2010 and 75% in the third quarter of 2009.

To calculate our weighting, we include natural gas liquids (NGLs) with oil production. Produced liquids get prices that are similar to oil, with much stronger margins than natural gas.

As is standard, we convert natural gas into oil equivalence by using a ratio of six thousand cubic feet (mcf) of natural gas to one barrel of oil equivalent (boe). This ratio comes from an energy equivalence at the burner tip.

FORMULAavg. natural gas production per day (boe/d)

avg. total production


JUN

IOR

CO

MPA

RISO

NQ3 PRODUCTION MIX — NATURAL GAS WEIGHTING (%)Median = 55.5%

(17.4)

(14.2)

(14.0)

(13.9)

(13.3)

(10.9)

(9.8)

(9.2)

(7.6)

(5.4)

(5.2)

(5.0)

(5.0)

(3.4)

(3.1)

(2.8)

(1.5)

(0.3)

0.1

0.6

0.7

1.0

1.7

2.5

2.7

3.4

3.8

4.2

7.7

7.8

8.1

8.2

9.2

11.4

13.0

13.1

13.5

14.0

15.8

17.2

19.6

20.7

21.5

22.1

26.7

26.8

28.3

28.5

32.9

63.8

68.8

74.4

78.8

88.4

155.7

(40.0) (20.0) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0

Seaview

Storm

WranglerWest

Ironhorse

Insignia

SecondWave

Vero

Rock

Bonterra

Bellamont

Anderson

OpenRange

Emerge

Freehold

Yoho

Argosy

DeeThree

Sure

Strategic

TwinButte

Delphi

Terra

Waldron

TriOil

Petro-Reef

Longview

Zargon

Skope

Artek

Cequence

Twoco

RMP

SkyWest

Hyperion

Shoreline

PaintedPony

Reliable

Sonde

Palliser

Exall

Arsenal

Midway

Whitecap

Surge

Tamarack

Bowood

Arcan

Yangarra

Crocotta

Novus

Renegade

WildStream

Dejour

Pinecrest

WestFire

production on the riseThirty-six of the 55 juniors managed to increase their overall production from Q2 to Q3 2011. This is comparatively high with less than half of the group managing the same feat from Q1 to Q2. Consistently increasing production is challenging because production from most wells in Western Canada declines at a relatively high rate. These declines need to be replaced before additions can be made.

Companies at the bottom of this chart may have sold production recently while companies at the top either acquired production or drilled successful wells.

FORMULAcurrent period avg. production – previous period avg. production

previous period avg. production

Note: Gas production converted to boe at 6 mcf: 1 boe.


JUN

IOR

CO

MPA

RISO

N CHANGE IN PRODUCTION — Q2 2011 TO Q3 2011 (%)Median = 4.2%

(20.9)

(17.4)

(16.7)

(14.2)

(14.0)

(13.9)

(13.3)

(12.2)

(11.0)

(10.9)

(9.9)

(9.0)

(7.6)

(5.5)

(5.3)

(5.3)

(5.2)

(5.0)

(4.1)

(3.2)

(2.3)

(2.0)

(0.3)

(0.2)

(0.0)

0.5

0.9

1.9

2.5

2.9

3.2

4.2

7.7

8.1

9.3

10.1

12.7

13.4

14.0

15.4

15.8

16.5

18.5

19.5

22.0

25.9

26.9

28.0

32.9

38.1

47.8

64.1

65.3

77.6

78.8

(40.0) (20.0) 0.0 20.0 40.0 60.0 80.0 100.0

Shoreline

Seaview

Rock

Storm

WranglerWest

Ironhorse

Insignia

Longview

SecondWave

Argosy

Vero

Hyperion

Bonterra

Bellamont

OpenRange

Waldron

Anderson

Emerge

Freehold

Petro-Reef

RMP

DeeThree

Sure

TwinButte

Strategic

Delphi

Terra

Cequence

TriOil

Zargon

Yoho

Skope

Artek

Twoco

SkyWest

Whitecap

PaintedPony

Reliable

Sonde

Palliser

Yangarra

Exall

Midway

Arsenal

Surge

Tamarack

Bowood

Arcan

Crocotta

WestFire

WildStream

Novus

Renegade

Pinecrest

Dejour

per share growthAfter a median decline of 5.3% from the first quarter to the second quarter of 2011, the average junior managed to increase its production on a per-share basis by 1.9% from the second quarter to the third quarter of 2011. This is not easy to do. Any company that can consistently add production and reserves on a per share basis will achieve a strong return for investors. In fact, some investors consider production growth per share to be the most important measure of success.

It costs money to increase production, whether it be via drilling or acquisitions. Therefore, junior companies need to deploy their cash flow carefully in order to grow, and they need to augment their cash flow with equity or debt financings in order to sustain their growth.

FORMULAcurrent production per share – previous production per share

previous production per share

Note: Production per share = average production rate for the period divided by basic weighted average shares outstanding during the period.

Gas production converted to boe at 6 mcf: 1 boe.


JUN

IOR

CO

MPA

RISO

NCHANGE IN PRODUCTION PER SHARE — Q2 2011 TO Q3 2011 (%)Median = 1.9%

19,229

22,871

22,964

24,852

27,615

27,656

28,080

30,071

31,464

31,959

32,421

38,082

38,485

40,326

41,835

43,768

43,906

44,467

46,331

46,827

49,714

52,000

53,541

55,487

56,401

58,061

58,899

59,912

64,262

64,483

65,656

69,432

74,058

77,798

80,260

86,871

91,666

97,364

97,745

97,834

99,335

102,446

105,558

115,748

116,388

124,501

133,956

141,032

155,099

157,788

165,422

175,837

178,642

192,319

244,464

0 50,000 100,000 150,000 200,000 250,000 300,000

WranglerWest

Skope

Insignia

Terra

Shoreline

Waldron

Seaview

Vero

Ironhorse

Palliser

Emerge

Bellamont

SkyWest

Anderson

Delphi

Rock

OpenRange

Hyperion

Arsenal

Sonde

Twoco

TwinButte

Cequence

Zargon

WestFire

TriOil

Artek

Petro-Reef

Yoho

DeeThree

RMP

Tamarack

Yangarra

Crocotta

Midway

Novus

Dejour

Reliable

Argosy

Longview

Renegade

Surge

Sure

WildStream

Whitecap

Bowood

Exall

Storm

Arcan

Strategic

Freehold

SecondWave

PaintedPony

Bonterra

Pinecrest

measuring valueThis chart shows each company’s enterprise value (market capitalization plus net debt) in relation to its average Q3 production levels. The chart does not take into account the value of land and seismic data or the quality and life expectancy of oil and gas reserves.

Companies that are high on this chart may be there because investors deem them to have strong growth prospects, quality long-life reserves, high field netbacks, high dividend or distribution yields, or exceptional management teams.

Companies that are low on this chart may be good value investments with excellent upside potential for investors who do their homework.

FORMULAmarket capitalization + net debt

avg. production in boe

Notes: Market capitalization = Nov. 30 share price x Q3 weighted average basic shares outstanding.

Net debt = bank debt + debentures – working capital.

For A/B share structure companies, the separate market price of B shares is factored into the market capitalization.


JUN

IOR

CO

MPA

RISO

N ENTERPRISE VALUE VERSUS Q3 PRODUCTION ($ PER BOE/D)Median = $59,912

(7.81)

(0.36)

4.41

4.58

5.62

5.76

6.28

8.43

9.49

10.74

10.88

11.11

11.54

12.42

13.22

13.32

14.43

15.16

15.18

17.58

17.70

18.36

18.39

18.69

19.32

20.03

20.09

20.94

21.84

22.57

23.14

23.19

24.50

25.06

25.19

25.52

25.94

28.37

30.03

31.59

33.00

35.27

35.62

37.33

38.29

39.95

41.64

43.08

43.59

43.67

48.85

56.72

58.28

61.33

71.49

(20.00) (10.00) 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00

Argosy

Sonde

Twoco

Ironhorse

Shoreline

Bowood

Palliser

Storm

Skope

Petro-Reef

WranglerWest

Terra

Cequence

Strategic

Waldron

Seaview

Dejour

Rock

RMP

Anderson

Vero

Zargon

SecondWave

Insignia

DeeThree

Yoho

TwinButte

Delphi

Bellamont

TriOil

Artek

Emerge

PaintedPony

SkyWest

Surge

Hyperion

Crocotta

Sure

Tamarack

Arcan

Longview

WestFire

WildStream

Bonterra

Renegade

Novus

Midway

Yangarra

Whitecap

Freehold

Exall

Arsenal

Pinecrest

Reliable

OpenRange

margins slipThe median cash flow netback slipped to $20.94 for Q3 2011 compared with $24.51/boe in Q2 2011. This is still higher than the $18.47/boe reported in Q1 2011, $14.92/boe reported in Q2 2010 and $10.25/boe reported in Q2 2009. The strong netback is largely a reflection of the juniors’ increasing oil weighting in combination with strong oil prices.

Cash flow is the result of adding back non-cash expenses such as depreciation and future taxes to net earnings. Cash flow takes into account the hard costs of operating as well as general and administrative costs.

Companies near the top of this chart are seeing the most economic benefit from existing production. Meanwhile, those near the bottom have costs that are reducing their margins.

FORMULAcash flow from operations

total production in the period

Note: Total production in the period = average daily production x 92 days in the period.


JUN

IOR

CO

MPA

RISO

NQ3 CASH FLOW NETBACK ($/BOE)Median = $20.94/boe

5.43

6.09

7.44

7.97

8.66

8.79

9.25

9.93

10.08

10.39

10.40

10.49

11.01

11.15

11.42

11.67

11.73

11.97

12.11

12.28

12.57

12.68

12.76

13.10

13.51

13.53

13.74

13.74

14.00

14.05

14.25

14.39

15.54

16.24

16.24

16.29

16.87

16.91

16.96

17.14

17.41

17.45

17.87

18.15

18.21

18.46

18.98

19.14

21.94

22.18

24.33

26.58

28.86

33.80

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00

Freehold

OpenRange

Yangarra

Crocotta

Skope

Ironhorse

Exall

Vero

Delphi

Storm

Seaview

Tamarack

WranglerWest

Insignia

Cequence

Waldron

RMP

Midway

Anderson

Twoco

PaintedPony

SkyWest

Artek

Petro-Reef

Bowood

Reliable

Bellamont

Sure

Shoreline

Dejour

Whitecap

Hyperion

Terra

Sonde

Novus

DeeThree

Zargon

Bonterra

Surge

Pinecrest

TriOil

Renegade

WestFire

TwinButte

WildStream

Longview

Argosy

Arsenal

Rock

Emerge

Arcan

Strategic

SecondWave

Palliser

cost controlThe median operating and transportation expense in Q3 2011 of $13.74/boe is almost unchanged from $13.36/boe in Q2 2011 and $13.53/boe reported in Q1 2011. In the third quarter of 2010, the median operating and transportation expense was lower at $12.77/boe.

Companies that do a good job of controlling operating and transportation costs earn more money from their production. The ability to be an efficient operator relates to the productivity of wells, the proximity of producing areas, economies of scale, control over facilities and a company’s production methods. Some companies with high operating costs this quarter may be incurring expenses in an operating area that will not increase when production increases for the area, showing the potential for improving economies of scale.

FORMULAoperating expenses including transportation costs




JUN

IOR

CO

MPA

RISO

N Q3 OPERATING AND TRANSPORTATION EXPENSES ($/BOE)Median = $13.74/boe

1.23

1.39

1.61

1.68

1.73

1.86

2.04

2.10

2.13

2.16

2.18

2.36

2.36

2.40

2.42

2.50

2.60

2.96

3.07

3.19

3.35

3.44

3.46

3.54

3.81

3.85

3.86

4.00

4.02

4.04

4.33

4.57

4.76

4.88

4.92

4.98

4.98

5.09

6.03

6.06

6.22

6.53

6.57

6.94

7.06

7.46

7.56

7.94

8.50

8.72

12.01

15.20

16.00

19.85

0.00 5.00 10.00 15.00 20.00 25.00

Whitecap

Longview

Delphi

Skope

WildStream

Vero

TwinButte

Cequence

Yangarra

Freehold

PaintedPony

WestFire

Bonterra

Twoco

Crocotta

Exall

Waldron

Insignia

Midway

Artek

Seaview

RMP

Sure

SecondWave

Anderson

Emerge

Terra

Ironhorse

DeeThree

Bellamont

Rock

Arsenal

Zargon

WranglerWest

Surge

Petro-Reef

Pinecrest

Hyperion

OpenRange

Arcan

Renegade

TriOil

Tamarack

Novus

Reliable

SkyWest

Palliser

Bowood

Sonde

Shoreline

Storm

Dejour

Strategic

Argosy

minimizing the adminGeneral and administrative expenses (G&A) pay for the engineering, geology, accounting, business development and other office-related expenses of oil and gas companies. G&A should be lower per boe for larger companies because many of these costs are fixed and do not increase with the amount of production. A lower amount of G&A per boe is good as long as it isn’t at the cost of growth or of meeting the regulatory and legal requirements of being a public company.

Savvy investors should take the time to understand what is happening that causes expenses to be higher than peers and whether or not it will translate into growth that will reward shareholders.

Non-cash compensation expenses, mostly stock options and other share or unit-based incentives, often make up a significant portion of compensation packages at junior oil and gas companies. These are not included in this chart.

FORMULAgeneral & administrative expenses




JUN

IOR

CO

MPA

RISO

NQ3 GENERAL AND ADMINISTRATIVE CASH EXPENSES ($/BOE)Median = $3.93/boe

3.13

10.74

11.84

11.96

12.12

12.33

12.58

12.83

13.13

13.28

14.09

14.17

14.33

14.34

15.37

15.42

15.48

16.07

16.73

16.73

16.88

16.99

17.17

17.59

17.68

17.83

17.96

18.56

18.70

18.81

19.47

19.81

19.89

20.43

20.89

21.26

21.89

22.63

23.12

23.13

23.36

23.59

23.77

23.95

25.35

26.97

27.52

28.37

28.85

29.10

30.07

35.94

36.77

52.46

0.00 10.00 20.00 30.00 40.00 50.00 60.00

Ironhorse

Terra

Bonterra

Twoco

Shoreline

Argosy

Skope

Cequence

Artek

Waldron

TwinButte

Delphi

Bowood

Vero

WranglerWest

Arsenal

Crocotta

Zargon

Bellamont

Palliser

Sonde

Midway

Longview

Insignia

SkyWest

Freehold

Sure

Surge

PaintedPony

Anderson

OpenRange

Yangarra

Emerge

Petro-Reef

Exall

TriOil

Storm

Novus

DeeThree

Arcan

WestFire

WildStream

Whitecap

Seaview

Rock

RMP

Tamarack

Pinecrest

SecondWave

Strategic

Dejour

Renegade

Reliable

Hyperion

Writing down the reservesDepletion, depreciation and accretion expenses (DD&A) are an approximation of finding, development and acquisition costs for oil and gas reserves. DD&A expenses are an ongoing writedown of assets as they are used up. Increasing amounts may mean reserves were more expensive to acquire in the first place and as a result are losing value on the company’s books at a faster pace.

It’s worth noting that the numbers on this chart have been drawn directly from each company’s income statement. As a result, the amounts include one-time items. For example, Hyperion appears at the top of this list because this company’s DD&A includes an impairment charge for one of its cash generating units. This amount does not represent a normal run rate for Hyperion’s DD&A. In fact, fully $3.2 million of Hyperion’s $5.0 million in Q3 depletion relates to the one-time writedown. As a result, the ongoing writedown is actually $19.13 after $33.33 is removed for the one-time impairment.

FORMULAdepletion, depreciation & accretion expenses




JUN

IOR

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MPA

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N Q3 DEPLETION, DEPRECIATION AND ACCRETION EXPENSES ($/BOE)Median = $18.26

1.7

2.2

3.3

3.8

4.2

4.3

4.3

4.6

4.7

4.7

4.7

4.8

5.2

5.4

5.7

5.7

5.9

6.1

6.2

6.3

6.5

6.9

7.0

7.0

7.1

7.3

7.5

7.8

8.1

8.1

8.2

8.7

8.8

9.1

10.1

10.3

11.1

11.4

11.8

12.6

13.3

13.3

13.8

14.0

15.2

17.3

18.7

19.8

26.0

30.6

34.5

45.5

58.8

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

OpenRange

Arsenal

Insignia

Emerge

SkyWest

Reliable

WestFire

Vero

Yangarra

Hyperion

Bellamont

WranglerWest

Midway

Delphi

Waldron

Seaview

Novus

Terra

Anderson

Tamarack

Skope

Artek

TriOil

TwinButte

Renegade

Whitecap

Exall

Rock

Longview

Crocotta

Zargon

Yoho

WildStream

DeeThree

Sure

Freehold

Surge

Pinecrest

RMP

Cequence

Arcan

Shoreline

Palliser

Bonterra

Petro-Reef

Dejour

Ironhorse

PaintedPony

SecondWave

Twoco

Strategic

Storm

Bowood

Sonde

ArgosyArgosy and Sonde had cash flow that was negative in comparison to their enterprise value and market capitalization.

multiplying cash flowThe dark bars on this chart show each company’s enterprise value as it relates to annualized cash flow. The lighter bars indicate the market capitalization to annualized cash flow. The difference between the two bars is each company’s net debt. Therefore, a quick glance at this chart doesn’t only show where a company trades in relation to its cash flow, but also shows debt positions.

This calculation of annualized cash flow multiples uses the closing market price on November 30, 2011 combined with Q3 2011 weighted average shares outstanding, net debt and cash flow. The values shown on the chart relate to the enterprise value multiples of annualized cash flow denoted by the dark bars.

FORMULAenterprise value

(cash flow for period x 4)

Note: Enterprise value = (Q3 weighted average basic shares x November 30, 2011 share price) + net debt.

For A/B share structure companies, the separate market price of B shares is also factored into the market capitalization.

Enterprise Value to Annualized Cash Flow

Market Capitalization to Annualized Cash Flow


JUN

IOR

CO

MPA

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NANNUALIZED Q3 CASH FLOW MULTIPLESEnterprise Value to Annualized Cash Flow Median = 7.3 Market Capitalization to Annualized Cash Flow Median = 5.8

(17.0)

(3.3)

(0.7)

(0.2)

0.1

0.2

0.2

0.3

0.3

0.4

0.5

0.5

0.7

0.8

0.8

0.9

1.0

1.1

1.2

1.3

1.3

1.3

1.3

1.4

1.5

1.5

1.5

1.5

1.6

1.7

1.7

1.8

1.8

1.9

2.0

2.1

2.1

2.3

2.4

2.5

2.5

2.6

2.8

3.3

3.6

3.8

3.9

4.1

5.2

5.3

6.7

13.8

21.2

(20.0) (15.0) (10.0) (5.0) 0.0 5.0 10.0 15.0 20.0 25.0

StormShorelinePinecrest

PaintedPonyHyperion

ArsenalDeeThreeCequence

TriOilOpenRange

TamarackFreeholdCrocottaReliable

WestFireWranglerWest

YangarraWildStream

EmergeYohoExall

WhitecapLongviewBonterra

RenegadeTwinButte

NovusZargon

SkyWestMidway

DelphiBellamont

InsigniaBowood

RMPDejour

RockSurgeArtek

WaldronStrategicSeaview

VeroSure

SkopeArcanTerra

AndersonPetro-Reef

PalliserSecondWave

IronhorseTwocoSonde

Argosy

The four companies at the bottom of this graph had positive cash positions rather than net debt. As

noted above, Sonde also reported a positive cash position, but had negative cash flow.

Argosy and Sonde both had negative cash flow for the quarter. Argosy reported net debt while Sonde reported a surplus.

Leveraging leverageThis measurement compares, in years, how long it would theoretically take to become debt free if cash flow remained steady year after year and it was 100 percent dedicated to paying down debt. In times where equity markets aren’t providing capital at a reasonable value, it can be advantageous for companies to use debt to finance growth. Assuming they are creditworthy, companies with less debt may be better positioned to seize asset-buying opportunities. Companies with higher debt may not have as many options.

Companies with negative values on the chart have a positive working capital position that they will be able to use to fund growth.

FORMULAnet debt

cash flow for period x 4

Note: Net debt = bank debt + debentures – working capital.

Convertible debentures make up a portion of the debt load for Anderson, Arcan, Strategic and Twoco.


JUN

IOR

CO

MPA

RISO

N Q3 NET DEBT TO ANNUALIZED CASH FLOWMedian = 1.5

(63.3)

(58.3)

(55.8)

(53.5)

(50.0)

(49.6)

(46.4)

(44.8)

(43.0)

(40.8)

(40.3)

(39.8)

(39.5)

(36.2)

(34.5)

(32.4)

(31.5)

(27.3)

(25.0)

(25.0)

(24.0)

(24.0)

(23.9)

(22.7)

(19.2)

(18.6)

(16.4)

(15.6)

(11.2)

(10.9)

(8.3)

(8.0)

(7.7)

(7.4)

(7.0)

(6.2)

(5.5)

(5.3)

(5.0)

(4.9)

(4.3)

(1.0)

(0.5)

0.0

0.0

1.2

3.0

3.3

7.6

8.1

14.0

20.3

25.0

26.6

(70.0) (60.0) (50.0) (40.0) (30.0) (20.0) (10.0) 0.0 10.0 20.0 30.0 40.0

SkyWest

Vero

Waldron

Seaview

Ironhorse

Palliser

Terra

Bowood

Rock

DeeThree

Skope

Insignia

Reliable

Emerge

Argosy

Zargon

WestFire

Twoco

Anderson

Storm

Bellamont

Sonde

Midway

Hyperion

WildStream

Arsenal

Compass

Arcan

SecondWave

Novus

TriOil

Surge

Longview

Pinecrest

Strategic

Renegade

Bonterra

TwinButte

Tamarack

Sure

RMP

Freehold

Shoreline

WranglerWest

Yangarra

Cequence

Dejour

Delphi

Yoho

PaintedPony

Exall

Crocotta

Petro-Reef

Artek

pain, pain go awayAlmost the entire oil and gas sector suffered damage on the stock market in the third quarter of 2011. Only three companies managed to gain ground during the quarter, namely Cequence, Wrangler West and Open Range, while 53 companies lost between 2% and 60%. The median loss was 24%. The picture improves slightly when the following two months are added into the mix. From the beginning of the third quarter through the end of November 2011, 44 of the 56 juniors lost ground, with a median loss of 16%.

These numbers represent the total return, which includes dividends paid during the quarter. The juniors that paid dividends in Q3 include Bonterra, Freehold, Longview, Skope and Zargon.

We did not include Open Range on this list because the company and its subsidiary Poseidon Concepts started trading separately on November 4, 2011.

FORMULAcapital gain + total distributions in that period per share or unit

market price at end of the previous period

Note: Capital gain in period = market price at end of period – market price at end of previous period.

Share price change plus distributions from July through November 2011

Share price change plus distributions from July through September 2011


JUN

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MPA

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NQ3 TOTAL RETURN - CAPITAL GAINS AND DISTRIBUTIONS OR DIVIDENDS (%)July through September Median = -24.0% July through November Median = -16.0%

For A/B share structures, B shares are not shown above, but are included in the calculations for some of our charts. When we calculate market capitalization, we use the A shares outstanding times the A share price, plus the B shares outstanding times the B share price.

Eastern Canada-focused juniors, coalbed methane-focused junior companies, and oil sands-focused junior companies are not included in this comparison.

Yoho’s year end is September 30. As such, Yoho’s fourth quarter results were compared to the third quarter for other issuers. Yoho has been left out of tables where the Q4 numbers were not available. Compass Petroleum’s year end is June 30. As such, Compass was only included in the total return comparison chart.

The data was provided by both CanOils database and BMIR researchers.

Shortenedcompanyname

Chiefexecutive

Stocksymbol& exchange(T=TSX, V=Venture)

Share priceNov 30/11

($)

Q3/11 average daily

production(boe/d)

Q3/11 weighted shares outstanding

(basic) including exchangeable

(000)

Sept 30/11net debt before

debentures($000)

Sept 30/11 debentures

outstanding ($000)

Q3/11net income

($000)

Q3/11cash flow

($000)Anderson Brian Dau AXL-T 0.60 7,351 172,550 108,583 84,334 7,472 11,893Arcan Ed Gilmet ARN-V 4.60 3,684 88,425 91,309 73,318 776 10,706Argosy Peter Salamon GSY-T 1.90 682 21,983 24,862 0 (1,702) (490) Arsenal Tony van Winkoop AEI-T 0.57 2,185 161,364 9,240 0 6,434 11,400Artek Darryl Metcalfe RTK-T 2.43 2,498 39,583 50,942 0 1,914 5,318Bellamont Steve Moran BMX.A-V 0 2,411 140,998 34,447 0 1,280 4,845Bonterra George Fink BNE-T 53 5,887 19,332 115,201 0 9,384 20,220Bowood Robert Mercier BWD-V 0 547 274,725 2,147 0 (1,213) 290Cequence Paul Wanklyn CQE-T 3 9,833 152,549 12,353 0 (1,884) 10,438Crocotta Robert Zakresky CTA-T 4 4,002 80,874 28,289 0 5,535 9,552

DeeThree Martin Cheyne DTX-T 2.13 2,135 63,064 3,356 0 (353) 3,795Dejour Robert Hodgkinson DEJ-T 0.34 514 121,391 5,813 0 (346) 682Delphi David Reid DEE-T 2.20 8,967 117,660 116,285 0 4,058 17,278Emerge Thomas Greschner EME-T 1.32 5,479 92,361 55,729 0 9,574 11,691Exall Roger Dueck EE-T 1.87 1,049 62,189 24,249 0 1,473 4,715Freehold William Ingram FRU-T 18.88 7,195 60,198 53,644 0 11,290 28,906Hyperion Trevor Spagrud HYX-V 0.85 1,050 54,190 613 0 (2,400) 2,465Insignia Jeffrey Newcommon ISN-T 1.03 2,957 30,660 36,316 0 (146) 5,085Ironhorse Larry Parks IOG-V 0.18 612 27,867 14,245 0 (1,644) 258Longview Kelly Drader LNV-T 10.60 6,071 46,745 98,472 0 7,148 18,434Midway Scott Ratushny MEL-T 3.19 4,608 79,255 117,003 0 6,364 17,653Novus Hugh Ross NVS-V 0.82 2,159 169,700 48,358 0 3,460 7,933OpenRange Scott Dawson ONR-T 2.00 4,174 68,436 46,399 0 14,822 27,454PaintedPony Patrick Ward PPY.A-V 12.10 4,064 59,592 (6,709) 0 4,765 9,159Palliser Kevin Gibson PXL-V 0.65 1,418 43,130 17,294 0 (905) 820Petro-Reef Gary Van Nest PER-V 0.40 605 59,694 12,369 0 172 598Pinecrest Wade Becker PRY-V 2.25 1,563 180,660 (24,511) 0 1,730 8,378Reliable Murray Swanson REL-V 0.23 679 236,573 11,698 0 1,656 3,831Renegade Michael Erickson RPL-V 2.89 2,852 77,308 59,848 0 (617) 10,045RMP John Ferguson RMP-T 2.20 3,400 84,287 37,822 0 (4,111) 4,749Rock Allen Bey RE-T 2.35 2,862 38,785 34,120 0 459 3,993Seaview Michael Wuetherick CVU.A-V 0.46 2,263 65,553 29,176 0 (2,929) 2,773SecondWave Colin Witwer SCS-T 2.31 1,470 82,968 66,767 0 899 2,486Shoreline Trevor Folk SEQ-T 8.06 895 3,830 (6,171) 0 (320) 463Skope Henry Cohen SKL-T 5.50 4,319 8,078 54,359 0 (2,436) 3,771SkyWest Lawrence Urichuk SKW-V 0.18 1,522 202,428 22,149 0 680 3,510Sonde Jack Schanck SOQ-T 2.38 2,946 62,300 (10,315) 0 (591) (98)Storm Brian Lavergne SRX-V 3.75 511 26,377 (26,917) 0 (1,023) 396Strategic Arn Schoch SOG-V 0.93 884 139,009 6,833 3,425 (1,395) 1,011Sure Jeffrey Boyce SHR-T 1.55 1,057 48,549 36,342 0 (293) 2,759Surge Daniel O'Neil SGY-T 8.96 6,166 56,119 128,889 0 4,811 14,291Tamarack Brian Schmidt TVE-V 0.38 1,101 186,402 5,623 0 (137) 3,042Terra Cas Morel TT-T 0.52 6,053 101,888 97,453 0 (1,701) 6,188TriOil Russell Tripp TOL-V 2.20 1,242 31,318 3,232 0 121 2,579TwinButte Jim Saunders TBE-T 2.30 7,599 135,380 83,749 0 7,522 14,042Twoco Wayne Malinowski TWO-V 0.16 613 58,625 17,853 3,233 (626) 249Vero Douglas Bartole VRO-T 2.27 9,262 48,990 167,322 0 859 15,085Waldron Ernie Sapieha WDN-T 1.26 2,767 34,332 33,270 0 (310) 3,366WestFire Lowell Jackson WFE-T 4.69 8,460 82,969 88,031 0 11,427 27,448Whitecap Grant Fagerheim WCP-T 8.56 6,485 72,167 137,045 0 10,063 26,006WildStream Neil Roszell WSX-V 9.25 6,190 67,906 88,290 0 10,427 20,284WranglerWest Steven Johnson WX-V 2.00 822 6,466 2,881 0 (231) 823Yangarra James Evaskevich YGR-V 0.63 1,253 116,307 19,545 0 4,106 4,968Yoho Brian McLachlan YO-V 3.55 2,423 37,500 22,559 0 (755) 4,465Zargon Craig Hansen ZAR-T 13.95 9,014 29,169 93,224 0 30,692 15,229 TOTAL 188,810 2,400,977 164,310 153,305 447,229

AVERAGE 3,433 43,654 2,987 2,787 8,131

MEDIAN 2,498 33,270 680 4,845


JUN

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N JUNIOR DATA TABLE

Company Reported Data Q1, 2011 Q3, 2011 Change +/- %

Company Guidance 2011 2011 2012 2011 +/- 2011-12 +/-(Issued Dec ‘10) (Issued Nov ‘11) (Issued Nov ’11)

Broker Consensus* 2011 2012 2011-12 +/-(Issued Nov ’11) (Issued Nov ’11)

Significant M&A Activity

Significant Financing Activity

Shares Outstanding @ End Period 41.8m 72.2m + 72.5%Share Price @ End Period $6.79 $5.62 - 17.2%Market Cap @ End Period $284m $405.8m + 42.8%Enterprise Value @ End Period $341.9m $510.4m + 49.3%Net Debt (Net of Working Capital) $75.8m $131.2m + 73.2%Total Crude/NGL Production (b/d) 1,826 4,160 + 127.8%Total Gas Production (mmcf/d) 6.666 13.951 + 109.3%Total BOE Production 2,937 6,485 + 120.8%Cash Netback per BOE $31.35 $43.59 + 39%Operating Costs per BOE $12.93 $11.95 - 7.6%G&A per BOE $2.67 $1.23 - 53.1%

Key Play Areas – Bakken Light Oil, Cardium Light Oil, Lloydminster Heavy Oil, Montney Shale

Average Production (boe/d) 4,000 5,600 9,000 - 9,200 + 40% + 60.7%Oil/Gas Split % 65/35 65/35 70/30 n/a n/aExit Production (boe/d) 5,000 8,300 9,900 – 10,100 + 66% + 19.3%Cash Flow from Operations $54m $86m $138-141m + 59.3% + 60.5%Capital Expenditures $56.5m $135m $150m + 138.9% + 11.1%Wells Drilled (Gross) 35 58 65 + 65.7% + 12.1%Operating Netback per BOE $42.15 $45.50 $46.00 + 7.9% + 1.1%

Average Production (boe/d) 5,618 9,056 + 61.2%Oil/NGL Production (b/d) 3,654 6,361 + 74.1%Gas Production (mmcf/d) 11.793 16.151 + 36.9%Oil/Gas Split % 65/35 70/30 n/aCash Flow from Operations $82.6m $139.5m + 68.9%Capital Expenditures $144.3m $150.6m +4.4%Cash Flow per Share $1.27 $1.85 + 45.7%Net Debt $153.9m $167.2m + 8.6%

*Brokers Used in Consensus – AltaCorp , Cormark, Dundee, Desjardins , First Energy, GMP Securities, Haywood & National Bank

Whitecap Resources acquires Spry Energy Ltd - Announced, 8th March 2011, Closed 20th April 2011

Total Acquisition Cost - $224.5m (Included $130.9m Cash, $57.4m Share Consideration & $36m Net Debt & Working Capital)

Production 1P Reserves 2P Reserves(boe/d) (000’ boe) (000’ boe)

Acquired boe 2,600 5,832 9,930Cost per boe $86,344 $38.49 $22.61Normalized Cost per boe* $69,366 $30.92 $21.45Normalized Average Cost per boe** $84,466 $31.25 $20.18

Difference to Normalized Average -$15,100 -$0.33 +$1.27

*Metrics adjusted/normalized for the value of undeveloped land and 4.1 mboe of 3P Reserves**Average metrics based on 2011 Cardium, Bakken & Lloydminster deals (as per CanOils normalized metrics)

Bought Deal Prospectus Offering of 22m Subscription Receipts at $6.80 each for Gross Proceeds of $149.6m – Announced, 8th March 2011, Closed 29th March 2011

Company Share Price Day Prior - $7 (2.9% Discount)

20 Day VWAP - $7.06 (3.7% Disc.) 15 Day VWAP - $7.10 (4.2% Disc.) 10 Day VWAP - $7.17 (5.1% Disc.) 5 Day VWAP - $7.16 (5% Disc.)

Underwriter Fee per Share of $0.34 Lead Underwriter – GMP with 36% or $53.9m Gross Purchases

*7 other Syndicate Members – National Bank (24%), Macquarie (10%), First Energy (10%), Casmir (5%), Cormark (5%), Haywood (5%) & Peters & Co (5%)

CanOilsAn Evaluate Energy Service

A Canoils snapshot for 2011/12

CanOils provides key data and analysis for publicly traded E&P companies on the TSX/TSX-V including; annual/quarterly reporting, Company

Guidance, M&A deal metrics, Financings and a weekly Broker Consensus estimate. A high-level snapshot for Whitecap Resources is included below.

Whitecap Resources – WCP listed on TSX

CanOilsAn Evaluate Energy Service

A Canoils snapshot for 2011/12

CanOils provides key data and analysis for publicly traded E&P companies on the TSX/TSX-V including; annual/quarterly reporting, Company

Guidance, M&A deal metrics, Financings and a weekly Broker Consensus estimate. A high-level snapshot for Whitecap Resources is included below.

Whitecap Resources – WCP listed on TSX

iQ SNAPSHOT

This company snapshot has been assembled by BMIR using publicly available information. The snapshot is not endorsed by the company profiled.

Focus of Operations

REPOSITIONED FOR OIL PRODUCTION GROWTH Listing: TSX-AXL

Shares outstanding: 172.6 million at September 30, 2011

Share price: $0.60 at November 30, 2011

Market capitalization: $103.5 million

Net debt: $192.9 million at September 30, 2011

Enterprise value (market cap. + net debt): $296.4 million

Q3 2011 average daily production:

Crude oil and NGLs 2,345 bbls/d 32%

Natural gas 30.04 mmcf/d 68%

Total 7,351 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50AXL $17.58

Peer Median$20.94

Recent News:November 15, 2011 Anderson Energy Announces Strong 2011 Third Quarter Results, a 76% Increase in Oil and NGL Production and Doubled Cardium Proved Plus Probable Reserves

October 26, 2011 Anderson Energy Provides Operations Update

August 15, 2011 Anderson Energy Announces 2011 Second Quarter Results

Strategies:• FocusedDevelopmentonCardiumLightOilProduction • Oilprovidesstrongercashflowsthannaturalgasandreducesdebtleverage

over time

• Balancedoilandnaturalgasproductionprofileanticipatedbysometimein2012

• FocusedcentralAlbertadevelopmentlandposition

• FullyFunded2012CapitalProgram • 4.25to5.75yeartimehorizonforasignificantportionoflong-termdebtreduces

refinancingrisk

• Sufficientroomonexistingbanklinetoprovideoperationalflexibility

• InnovativeExperiencedTeaminPlace • Strongtechnicalteamprovidesinnovativesolutionstodeveloping

Cardium resources

— from Anderson Energy November 2011 corporate presentation

Contact:700SelkirkHouse 555-4th Avenue SW Calgary, Alberta T2P 3E7

tel 403.262.6307

[email protected] www.andersonenergy.ca

Analyst Coverage:BMO Nesbitt Burns

CIBCWorldMarkets

CormarkSecurities

GMP Securities

NationalBankFinancial

RBC Dominion Securities

Salman Partners

Scotia Capital

Officers:Brian Dau - President & CEO

DavidSpyker-COO

M. Darlene Wong - VP, Finance, CFO

& Secretary

Blaine M. Chicoine - VP, Drilling

& Operations

PhilipHarvey -VP,Exploitation

Sandra Drinnan - VP, Land

Jamie Marshall -VP,Exploration

PatrickO’Rourke - VP, Production

Directors:J.C. Anderson - Chairman

Brian Dau

Christopher Fong

GlennHockley

David Sandmeyer

David Scobie

Ferrier

Garrington

Willesden Green


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

OIL FOCUSED INVENTORY Listing: TSX-AEI





Enterprise value (market cap. + net debt): 100.1 million





Cash flow netback:

Oil

Gas

$0 $60AEI $56.72

Peer Median$20.94

Recent News:December 15, 2011 Arsenal Energy Releases Operational Update

December 1, 2011 Arsenal Energy Releases Operational Update

November 15, 2011 Arsenal Energy Closes Strategic Acquisition in its Core Oil Producing Areas Alberta

Strategies:• 72%OilweightingbyProduction

• Highoperatingmargins–$40.48

• Tradingbelowitspeergroup • BasedonSharePriceNovember30,2011andEnterpriseValue~0.42xNAVPS, ~$36,800boe/d;~$11.06/P+Pboe

— from Arsenal December 2011 corporate presentation

Contact:1900, 639-5th Avenue S.W. Calgary, Alberta T2P 0M9

tel 403.262.4854

[email protected] www.arsenalenergy.com

Analyst Coverage:Casimir Capital

Clarus Securities

Desjardins Securities

National Bank Financial

PI Financial

Officers:Tony van Winkoop - President & CEO

J.PaulLawrence-VP,Finance&CFO

RonForth-VP,Engineering

GjoaTaylor-VP,Land

LeoNolte-VP,Drilling&Completions

KenSawatzky-VP,Facilities

Directors:WilliamHews

HarleyKempthorne

Neil MacKay - Chairman

BillPowers

Tony van Winkoop

Evi

North Dakota

Southeast Alberta

Desan


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

REAL ASSETS WITH REAL GROWTHListing: TSX-DEE










Cash flow netback:

Oil

Gas

$0 $50DEE $20.94

Peer Median$20.94

Recent News:December 2, 2011Delphi Energy Announces Increase to Equity Financing

December 2, 2011Delphi Energy Announces Equity Financing

November 9, 2011DelphiEnergyReportsContinuedProductionGrowthonStrongCashFlow

Strategies:• Well-positionedfororganicgrowthwithalargeinventoryofdevelopmentopportunitiescomplementedbyahigh-impactexplorationprogram:

• Disciplinedfieldcapitalprograminternallygeneratedandprotectedthrough active commodity hedging program

• Operatorshipandownershipofinfrastructure,production,capitalandlands

• Complementaryconventionalmulti-zonedeepbasinassetbase

• Focusedongrowththroughthedrillbitcomplementedwithstrategic acquisitionswithincoreareas

— from Delphi website

Contact:300,500–4AvenueS.W. Calgary, Alberta T2P 2V6

tel 403.265.6171

[email protected] www.delphienergy.ca

Analyst Coverage:Canaccord Genuity

CIBCWorldMarkets

GMP Securities

Macquarie Capital

Maison Placements


Peters & Co.

RBCCapitalMarkets

Salman Partners

Scotia Capital

Stifel Nicolaus

Officers:David Reid - President & CEO

Tony Angelidis -Sr.VP,Exploration

Brian Kohlhammer - Sr. VP, Finance & CFO

HugoBatteke - VP, Operations

Michael Galvin - VP, Land

RodHume - Sr. VP, Engineering

Directors:Tony Angelidis

HarryCampbell

Robert Lehodey

Stephen Mulherin

AndrewOsis

David Reid

David Sandmeyer

Lamont Tolley

North West Alberta Region

North East British Columbia Region


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

CRUDE OIL FOCUS AT MITSUE, MARTEN MOUNTAIN, ABListing: TSX-EE







Crude oil and NGLs 935 bbls/d 89%



Cash flow netback:

Oil

Gas

$0 $50EE $48.85

Peer Median$20.94

Recent News:December 15, 2011Exall Energy Corporation Announces Successful 3D Seismic Channel Test Well in the Marten Moutain Area, Mitsue, Alberta

December 1, 2011Exall Energy Updates Drilling Operations

November 8, 2011Exall Energy Announces Results for the Three and Nine Months Ended September 30, 2011

Strategies:• Acquiretherightassetsattherighttime • Continuouslyacquireanddevelopcorelandholdingswithabaseofhighnetback

production in resource oil areas • Focusonoilwhichhasamorestableoutlookwithhighnetbacksandfavorable

recycle ratios• Employandrefinetechnologytooptimizevalue • Learnfrompeers • ExecuteEOR’stomaximizeultimatereserverecovery • Applynewtechnologytooldareas• Maintainbalancesheetflexibility• Exploitassetssufficientlytoachievemaximumshareholdervalue • Threetofiveyearbusinesscycle • Exitattheoptimaltime

— from Exall Energy Road Show November 2011

Contact:400, 715 - 5th Avenue S.W. Calgary, Alberta T2P 2X6

tel 403.237.7820

www.exall.com

Analyst Coverage:Casmir Capital

Dundee Securities

EmergingEquities

Jennings Capital

Officers:Stephen Roman - Executive Chairman

RogerDueck-President&CEO

WarrenColes-VP,Finance&CFO

GlenKerr-VP,Operations&COO

JanetMacKenzie-VP,Exploration

Directors:RogerDueck

Wayne Egan

Bernard Lang

AllanMenzies

RoderickPhipps

FrankRebeyka

Stephen Roman

Mitsue

AitkenCreek

BowIsland

Jayar

Harris County


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

FOCUSED LIGHT OIL RESOURCE PLAYER Listing:TSXV-HYX










Cash flow netback:

Oil

Gas

$0 $50HYX $25.52

Peer Median$20.94

Recent News:December 15, 2011 HyperionExplorationCorp.Achieves2011ProductionAndCapitalExpenditureGuidanceAndProvidesOperations Update

November 28, 2011 HyperionExplorationAnnouncesFinancialand Operating Results for the Three Months Ended September 30, 2011

October 6, 2011 HyperionExplorationAnnouncesOperationsUpdate

Strategies:• Focusedlightoilplayerwithabilitytotripleproductionandreservesin2011

• Scaleandrepeatabilitygainedthroughacquisitionofcoreassets

• ManagementandBoardwithahistoryofdeliveringgrowthandvalue

• Financialflexibilitytoexecuteonasubstantial2012drillprogram

• Strongbalancesheetthatisabletodeliver2011capitalprogram

— from Hyperion Exploration November 2011 corporate presentation

Contact:2010, 355 - 4th Avenue S.W. Calgary, Alberta T2P 0J1

tel 403.930.0700

[email protected] www.hyperionexploration.com


DesjardinsCapitalMarkets

DundeeCapitalMarkets

GMP Securities

Paradigm Capital

Officers:Trevor Spagrud - President & CEO

LarryHammond-COO

Doug Bailey - CFO

Tim Gee - VP, Engineering

RyanHeath-VP,Land&BusinessDevelopment

SteveHorth-Manager,Exploration

Directors:RodMaxwell

DanO’Neil

Greg Turnbull

Trevor Spagrud

Greg Bay

Paradise

Garrington

PembinaNiton

BuckLake


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

PUSHING FORWARD - 100% OIL WEIGHTED PRODUCTION BASEListing: TSXV-IOGShares outstanding: 27.9 million at September 30, 2011








Total 612 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50IOG $4.58

Peer Median$20.94

Recent News:November 25, 2011Ironhorse Oil & Gas Announces Third Quarter 2011 Financial and Operating Results

October 13, 2011 IronhorseOil&GasSellsShackletonGasPropertytoFocusonOilatPembina,LeonLake

August 24, 2011Ironhorse Oil & Gas Announces Second Quarter 2011 Financial and Operating Results

Strategies:• Sellassetstostrengthenthebalancesheet

• Pursuelowrisk,repeatableoilresourceplays

• PlacePembinaoilwellsonproduction

— from Ironhorse website

Contact:1000,324–8thAvenueS.W. Calgary, Alberta T2P 2Z2

tel 403.355.3620

[email protected] www.ihorse.ca

Analyst Coverage:N/A

Officers:LarryParks-President&CEO

Rob Solinger - VP, Finance & CFO

Timothy Veenstra - COO

Directors:WayneChow

Rob Desbarats

LarryParks

Gerald Quinn

Michael Royan

Jedney

Pembina

Dawson

LeonLake


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

VIKING FOCUS, GROWING THROUGH THE DRILL BITListing: TSXV-NVS





Enterprise value (market cap. + net debt): $187 million





Cash flow netback:

Oil

Gas

$0 $50NVS $39.95

Peer Median$20.94

Recent News:December 9, 2011 Novus energy Grants Incentive Stock Options

November 22, 2011 Novus Energy Announces Third Quarter 2011 Financial and Operating Results

September 12, 2011 Novus Energy Announces Normal Course Issuer Bid

Strategies:• Targetsignificant“OriginalOilInPlace”(OOIP)opportunitieswithlow

recovery factors

• Applyhorizontalmulti-stagefracturetechnologytoexponentiallyincrease recovery factors

• Focusonlightoil

• Continuouslyimprovehorizontalmulti-stagefracingtechnologytoreducecosts anduncoveradditionalreserveswithimprovedeconomics

• Emphasizewelldelineated,lowgeologicalriskreserveswithlargedevelopmentdrilling inventories

• Havecoreareaswithlargelandpositions,operatorshipandinfrastructurecontrol tofacilitateexecutinglargerscaledrillingprograms

— from Novus Energy September 2011 corporate presentation

Contact:5200, 150 - 6th Avenue S.W. Calgary,AlbertaT2P3Y7

tel 403.263.4310

[email protected] www.novusenergy.ca


CIBC World Markets

Clarus Securities

Cormark Securities


GMPSecurities

HaywoodSecurities

Jacob Securities

Jennings Capital

ParadigmCapital

Raymond James

Stifel Nicolaus

Officers:HughRoss-President&CEO

KetanPanchmatia-VP,Finance&CFO

GregGroten-VP,Exploration

JulianDin-VP,BusinessDevelopment

JackLane-VP,Operations

Directors:MichaelHalvorson

HarryKnutson

Al Kroontje

A. Bruce Macdonald

Larry Mah

HughRoss

Dodsland(Viking)

Wapiti

Garrington


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

LARGE OIL PLAYS, JUDY CREEK FOCUSListing: TSX-SCS

Shares outstanding: 83 million at September 30, 2011



Net debt: $66.8 million at November 30, 2011






Cash flow netback:

Oil

Gas

$0 $50SCS $18.39

Peer Median$20.94

Recent News:November 14, 2011 SecondWaveAnnouncesContinuedBeaverhillLakeDrilling Success, Increased Credit Facility and Filing of 2011 Third Quarter Financial Results

September 7, 2011 SecondWaveAnnouncesBeaverhillLakeDrillingSuccess and Operational Update

August 15, 2011 Second Wave Announces Filing of Second Quarter Financial Results

Strategies:• Fastgrowththroughthedrillbit

• UtilizeresourceplaypotentialofJudyCreekproperties

• Highworkinginterestsandoperatorshipincoreareas

• Exploitmulti-zonepotentialonsignificantlandbase

Strengths:• Experiencedmanagementteamwithspecialtiesinpropertyareas andhorizontaldrilling

• Stableoil-weightedbase

• Largedrillinginventoryofbothhighimpactexplorationwellsand lowerriskdevelopmentwells

• Yearroundaccesswithfacilitiesandservicesavailable

— from Second Wave website

Contact:1400, 202 - 6th Avenue S.W. Calgary, Alberta T2P 2R9

tel 403.451.0165

[email protected]

Analyst Coverage:Accumen Capital

Clarus Securities


GMP Securities

RBCCapitalMarkets


Scotia Capital

Officers:ColinWitwer-President&CEO

RandyDenecky-VP,Finance&CFO

DouglasHibbs-VP,Exploration

Randy Bergmann - VP, Land

Devery Neumann - VP, Operations

Directors:BrianBaker

NeilBokenfohr

DonaldFoulkes

Robert Goods

Jim Reid

Alan Steele

ColinWitwer

BattleCreek

JudyCreek

Tableland


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

EXPANDING LIGHT OIL RESOURCE OPPORTUNITIESListing: TSXV-SOG




Net Debt: $10.3 million at September 30, 2011





Total 884 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50SOG $12.42

Peer Median$20.94

Recent News:December 12, 2011 Strategic Announces Correction of Date of Independent Auditors Report

November 30, 2011 Strategic Oil & Gas Announces $40,070,000 Bought Deal Financing

November 16, 2011 Strategic Oil & Gas Continues Drilling Success at Steen RiverwithVerticalWellProductionTestat250BOEPD

Strategies:• Exploit • Developthe500+MMbbllightoilresourceatMaxhamish

• DevelopKegRiverlightoilpotentialatSteenRiver

• Explore • Explorethemulti-zoneoilfairwayforlightoilopportunitiesatSteenRiver

• LightoilopportunitiesinWesternCanadausingextensivedatasets

• Enhance • IncreaserecoveryusingwaterfloodandotherEORtechniques

— from Strategic website

Contact:1800,510–5thStreetS.W. Calgary, Alberta T2P 3S2

tel 403.718.0183

[email protected] www.sogoil.com

Analyst Coverage:Clarus Securities

DesjardinsCapitalMarkets

Dundee Securities

MacquarieCapitalMarkets

PI Financial

Raymond James

Officers:Arn Schoch - CEO

GurpreetSawhney-President

SeanHayes-COO

KirkBoote-VP,Operations

Directors:Arn Schoch

Colin McNeil

D.RichardSkeith

JohnW.Harkins

Steen RiverMaxhamish

Ferrier

Taber/ConradHarmattan


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

UNIQUELY POSITIONED TO DELIVER TOP TIER PERFORMANCEListing: TSXV-SGY










Cash flow netback:

Oil

Gas

$0 $50SGY $25.19

Peer Median$20.94

Recent News:December 15, 2011 Surge Energy Inc. Announces 1,200 bbl/d Private Company Acquisition of Focused Slave Point/Gilwood Light Oil Assets and 2012 Guidance

November 9, 2011 Surge Energy Announces Record Third Quarter 2011 Results, Provides Operational Update and Increases its 2011 Capital Program and Exit Production Guidance

October 19, 2011 Surge Energy Obtains Toronto Stock Exchange Listing

Strategies:• Evolveintoatoptierintermediateoilandgasproducerwithafocusonoil

• Acquire&Develop‘Brownfield’OilResourcePlays

• ImplementSecondaryRecoverytoOptimizeNetPresentValueforShareholders

• Identify&Capture‘Greenfield’OilResourcesPlays

— from Surge Energy November 2011 corporate presentation

Contact:2100, 635 - 8th Avenue S.W. Calgary, Alberta T2P 3M3

tel 403.930.1010

[email protected] www.surgeenergy.ca

Analyst Coverage:AltaCorp. Capital

BMO Capital Markets

CIBC World Markets

Cormark Securities

DesjardinsSecurities

DundeeSecurities

FirstEnergy Capital

GMP Securities

Macquarie Securities Group

National Bank Financial

Northland Capital Partners

Peters&Co.

Scotia Capital

TDSecurities

Officers:DanO’Neil -President&CEO

Max Lof - CFO

DanBrown-COO

Malcolm Adams - VP, CorporateDevelopment

Margaret Elekes - VP, Land

Kevin Angus - VP, Exploration

Tee Ong - VP, Engineering

Directors:Peter BannisterPaul Colborne - ChairmanColinDaviesRobert Leach

Keith MacdonaldDanO’NeilJames PasiekaMurray Smith

Southeastern Alberta

Western Alberta

Manitoba&NorthDakota


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

EXPLORATION FOCUSED, STRONG BOE FINANCIAL RESULTSListing:TSXV-YOShares outstanding: 39.9 million at September 30, 2011





Average daily production for the quarter ended September 30, 2011:




Cash flow netback:

Oil

Gas

$0 $50YO $20.03

Peer Median$20.94

Recent News:December 12, 2011 YohoResourcesAnnouncesBoughtDealFinancingConcurrentPrivatePlacementsofFlow-ThroughShares

December 8, 2011 YohoReourcesAnnouncesFiscal2011FinancialandOperating Results

November 28, 2011 YohoResourcesAnnounces54%IncreaseinTotalProved plus Probable Reserves as at September 30, 2011 and updates operations

Strategies:• Developunconventionalexplorationprojects

• Increasefocusonoilandhighliquidsnaturalgasplays

• Pursuesmallerpropertyacquisitions

• Pursuesmallercorporateopportunities

• Continuetomaximizeper-barrelofoilequivalentfinancialresults

— From Yoho Resources website

Contact:750, 736 - 6 Avenue SW Calgary, AB T2P 3T7

tel 403.537.1771

[email protected] www.yohoresources.ca

Analyst Coverage:Acumen Capital Partners

MackieResearch

Paradigm Capital

Peters & Co.

Officers:Brian McLachlan - President & CEO

Barry Stobo - VP, Engineering & COO

Wendy Woolsey - VP, Finance & CFO

ClarkDrader-VP,Land

Directors:Bruce Allford

John Brussa

Peter Kurceba

Brian McLachlan

Kevin Olson

Gary Perron

Terry Svarich, Chairman

Northeast British Columbia

Peace River Arch

West Central Alberta


Focus of Operations

TARGETED ASSETS, SUSTAINABLE CORPORATE GROWTH Listing: TSXV-TVE










Cash flow netback:

Oil

Gas

$0 $50TVE $30.03

Peer Median$20.94

Recent News:November 25, 2011 Tamarack Valley Energy Completes Non-Brokered $4.1 million Flow-Through Share Financing

November 16, 2011 Tamarack Valley Energy Announces Non-Brokered $4.1 million Flow-Through Share Financing

November 14, 2011 Tamarack Valley Energy Releases Buck Lake Drilling Results - Produces 627 boe/d

Strategies:• TamarackValleyusesarigorous,provenmodellingprocesstocarefullymanagerisk

and identify growth opportunities. This strategic play model targets: • Resourceplayswithhighoriginalgasinplaceandoriginaloilinplace

• Longlifereserves

• Horizonsthatarerepeatableandhavelargescope

• Focusonriskminimization

— from Tamarack Valley November 2011 corporate presentation

Contact:1800, 407 - 2nd Street S.W. Calgary, Alberta T2P 2Y3

tel 403.263.4440

[email protected] www.tamarackvalley.ca


Alta Corp Capital

Dundee Capital Markets

HaywoodSecurities

Paradigm Capital

Officers:Brian Schmidt - President & CEO

RonHozjan-VP,Finance&CFO

Niels Gundesen - VP, Engineering

Ken Cruikshank - VP, Land

Kevin Screen - VP, Production & Operations

Directors:Floyd Price - Chairman

Anthony Lambert

Dean Setoguchi

DavidMackenzie

John Gunn

Brian Schmidt

Wilder

Ansell

Hanlan

Garrington

Lochend

Quaich

Buck Lake

HeavyOil


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

EXPLORATION FOCUSED, STRONG BOE FINANCIAL RESULTSListing:TSXV-YOShares outstanding: 39.9 million at September 30, 2011





Average daily production for the quarter ended September 30, 2011:




Cash flow netback:

Oil

Gas

$0 $50YO $20.03

Peer Median$20.94

Recent News:December 12, 2011 YohoResourcesAnnouncesBoughtDealFinancingConcurrentPrivatePlacementsofFlow-ThroughShares

December 8, 2011 YohoReourcesAnnouncesFiscal2011FinancialandOperating Results

November 28, 2011 YohoResourcesAnnounces54%IncreaseinTotalProved plus Probable Reserves as at September 30, 2011 and updates operations

Strategies:• Developunconventionalexplorationprojects

• Increasefocusonoilandhighliquidsnaturalgasplays

• Pursuesmallerpropertyacquisitions

• Pursuesmallercorporateopportunities

• Continuetomaximizeper-barrelofoilequivalentfinancialresults

— From Yoho Resources website

Contact:750, 736 - 6 Avenue SW Calgary, AB T2P 3T7

tel 403.537.1771

[email protected] www.yohoresources.ca


MackieResearch

Paradigm Capital

Peters & Co.

Officers:Brian McLachlan - President & CEO

Barry Stobo - VP, Engineering & COO

Wendy Woolsey - VP, Finance & CFO

ClarkDrader-VP,Land

Directors:Bruce Allford

John Brussa

Peter Kurceba

Brian McLachlan

Kevin Olson

Gary Perron

Terry Svarich, Chairman

Northeast British Columbia

Peace River Arch

West Central Alberta


JUN

IOR

SNA

PSH

OTS

JUN

IOR

SNA

PSH

OTS

Put a face to your name.

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WE’LL HIGHLIGHT YOUR BEST FEATURES

Q u a r t e r l Y r e p o r t : Q 3 2 0 1 1 33

inte

rMeD

iate

co

Mpa

riso

n

intermediate oil & gas companies

c o M pa r i s o n

INCLUSION CRItERIA

• Primary business must be oil and gas exploration, development and production

• Q3 2011 production must fall between 10,000 and 100,000 barrels of oil equivalent per day (boe/d)

• Majority of production must be from Western Canada

• Must be publicly traded on the TSX or TSX Venture Exchange

72,258

73,245

74,568

85,178

CrescentPoint

Enerplus

Pengrowth

ARC

36,390

39,074

42,937

52,625

71,636

Peyto

PetroBakken

Progress

Baytex

Bonavista

28,752

29,035

34,347

35,468

Ad t

NAL

Trilogy

Tourmaline

Daylight

20,707

22,578

25,360

27,510

28,638

Paramount

Perpetual

NuVista

Crew

Advantage

14 443

15,158

15,808

16,473

17,648

Chinook

Fairborne

Celtic

Lone Pine

Birchcliff

12,642

13,429

13,558

13,993

14,443

Legacy

Compton

Pace

Angle

Chinook

11,698

11,837

0 25,000 50,000 75,000 100,000

Guide

Bellatrix

87

89

90

91

Progress

Peyto

Tourmaline

Perpetual

78

78

79

80

83

Advantage

Lone Pine

Paramount

Fairborne

Compton

66

69

71

75

76

G id

NuVista

Trilogy

Birchcliff

Celtic

63

63

64

65

66

Bellatrix

Daylight

ARC

Chinook

Guide

54

55

55

57

62

NAL

Pace

Enerplus

Angle

Bonavista

16

19

49

49

54

Baytex

Legacy

Crew

Pengrowth

NAL

10

15

0 10 20 30 40 50 60 70 80 90 100

CrescentPoint

PetroBakken

fewer peers for bigger companiesWe define “intermediate” oil and gas companies as those with production from 10,000 boe/d to 100,000 boe/d. In order to produce a relevant peer group, we restrict the intermediate category to companies with conventional oil and gas development and production as their primary business, with the majority of their production in Western Canada, and with their shares or units traded on the TSX. “Junior” and “emerging” companies are featured in sections beginning on pages 5 and 51 respectively. “Senior” producers, with production in excess of 100,000 boe/d, are not included in this report.

Comparing Q3 2011 and Q2 2011, one company has been removed from the intermediate category. Vero Energy’s production has fallen below 10,000 boe/d and is now listed in the junior category. In addition, there are now six intermediate companies with production greater than 50,000 boe/d (up from five in Q2 2011). Galleon Energy announced a name change in November 2011 and is now Guide Exploration.

Note: Production for Advantage Oil & Gas is the consolidated total for both Advantage and Longview, the company’s oil-weighted subsidiary.

oil vs gasThe median natural gas weighting of Western Canada’s intermediate oil and gas players fell slightly to 65% in the third quarter of 2011 compared with 67.9% in the second quarter. There are four intermediate companies towards the bottom of this chart that have focused their production on oil, whereas all the others are either a mix of oil and natural gas or primarily natural gas.

Oil and natural gas are made comparable by converting natural gas from thousands of cubic feet (mcf) to barrels of oil equivalent (boe) at a ratio of 6:1.


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Q3 2011 PRODUCTION (BOE/D)Median = 27,510 boe/d

Q3 PRODUCTION MIX — NATURAL GAS WEIGHTING (%)Median = 65%

21.5

23.9

24.9

67.3

Tourmaline

Legacy

Paramount

Crew

8.9

9.3

10.0

10.7

20.7

Fairborne

CrescentPoint

Baytex

PetroBakken

Advantage

5 4

5.7

7.5

7.8

8.5

P

Peyto

NAL

Angle

Bonavista

4.0

4.0

5.1

5.3

5.4

Celtic

Lone Pine

Pengrowth

Compton

Progress

(0 5)

1.7

1.9

3.4

3.5

Guide

Bellatrix

Birchcliff

ARC

Chinook

(3.7)

(2.8)

(1.0)

(0.5)

(0.5)

Daylight

Enerplus

Trilogy

NuVista

Guide

(23.0)

(4.9)

(30.0) (20.0) (10.0) 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

Perpetual

Pace

19.6

20.3

22.0

23.6

Advantage

Crew

Paramount

Legacy

7 5

7.6

8.9

9.2

14.0

A gl

CrescentPoint

Fairborne

Baytex

Tourmaline

4.9

5.7

6.2

7.0

7.5

Progress

Peyto

Bonavista

NAL

Angle

1 6

2.8

3.3

3.5

4.6

Birchcliff

ARC

Celtic

Chinook

Pengrowth

(2.4)

(1.3)

(0.9)

(0.6)

1.6

Bellatrix

Trilogy

Guide

NuVista

Birchcliff

(22.6)

(8.3)

(4.8)

(3.9)

(3.2)

Perpetual

Lone Pine

Pace

Daylight

Enerplus

(84.0)

(35.6)

( )

(100.0) (80.0) (60.0) (40.0) (20.0) 0.0 20.0 40.0

Compton

PetroBakken

p

building productionIf no effort were made by a conventional oil and gas company to stabilize or increase production, its production would typically decline at rates varying from 20 percent to 30 percent per year depending on its commodity mix, depth of wells and age of assets.

Overall production in the third quarter of 2011 rebounded with an increase of 5% from declines of 2.3% seen in the second quarter. While the outliers added production based on acquisitions, the core group of intermediates saw increased production after experiencing a prolonged winter breakup.

The next chart is even more telling of growth given that it shows production change on a per share basis.

FORMULAcurrent period avg. production – previous period avg. production

previous period avg. production

Note: Gas production converted to boe at 6 mcf: 1 boe.

greater production per shareDuring the third quarter of 2011, 18 of the 29 intermediates increased their production on a per share basis from the second quarter. This means issuers increased production more than they issued shares and production was not funded by equity.

FORMULAcurrent production per share – previous production per share

previous production per share

Note: Production per share = average production rate for the period divided by basic weighted average shares outstanding during the period.

Gas production converted to boe at 6 mcf: 1 boe.


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CHANGE IN PRODUCTION — Q2 2011 TO Q3 2011 (%)Median = 5%

CHANGE IN PRODUCTION PER SHARE — Q2 2011 TO Q3 2011 (%)Median = 4%

163,598

166,586

170,536

184,073

Trilogy

Celtic

Paramount

CrescentPoint

104,332

122,128

130,093

130,200

142,507

Peyto

Birchcliff

Baytex

Legacy

Tourmaline

75 105

82,578

84,057

94,225

95,954

E l

Daylight

Progress

PetroBakken

ARC

58,992

61,399

64,937

74,958

75,105

NAL

Crew

Pengrowth

Bonavista

Enerplus

38 720

39,277

50,513

53,775

58,634

Fairborne

Advantage

Angle

Bellatrix

Lone Pine

29,574

29,607

32,702

36,923

38,720

NuVista

Perpetual

Chinook

Guide

Fairborne

14,338

28,095

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

Compton

Pace

31 71

38.77

42.48

45.52

Baytex

Legacy

PetroBakken

CrescentPoint

24.34

24.89

27.24

27.86

31.71

Peyto

Guide

NAL

ARC

Baytex

22.16

22.23

22.59

22.60

23.81

Lone Pine

Bonavista

Fairborne

Trilogy

Celtic

20.96

21.26

21.39

21.92

22.00

Advantage

Crew

Daylight

Pengrowth

Bellatrix

18.29

19.30

19.85

20.84

20.96

N Vi t

Enerplus

Angle

Tourmaline

Birchcliff

Advantage

13.10

16.64

16.80

16.98

17.70

Progress

Chinook

Paramount

Pace

NuVista

8.27

12.48

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00

Perpetual

Compton

making money flowCash flow netbacks are equivalent to sales margins. They indicate how much cash flow a company generates from each barrel of oil equivalent (boe) of production. Companies with higher netbacks may have a better chance of thriving during periods of lower commodity prices when higher cost production may be uneconomical.

The four intermediate companies with the highest cash flow netbacks are also the four companies with the highest oil weighting. This is indicative of the comparably higher price of oil versus natural gas.

FORMULAcash flow from operations


Notes: Total production in the period = Average daily production x 92 days in the period.

value per barrelThis graph shows each intermediate company’s enterprise value per flowing barrel of oil equivalent per day (boe/d) of Q3 production. Enterprise value is calculated by multiplying the share price on November 30, 2011 by the weighted average number of shares outstanding during Q3 before adding debt and debentures outstanding net of working capital at the end of the quarter.

A high number means the markets are placing more value on the production of a particular company, perhaps for reasons such as long life reserves, a higher proportion of oil to gas, high field netbacks, or perceived strong production growth prospects.

FORMULAmarket capitalization + net debt

average production in barrels of oil equivalent

Note: Market capitalization = November 30 share price x Q3 weighted average basic shares outstanding.

Net debt = bank debt + debentures – working capital.


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ENTERPRISE VALUE VERSUS Q3 PRODUCTION ($ PER BOE/D)Median = $74,958/boe

Q3 CASH FLOW NETBACK ($/BOE)Median = $21.92/boe

15 66

16.15

18.84

20.93

Pace

Pengrowth

Legacy

Chinook

13.05

13.53

13.69

14.97

15.66

Bellatrix

PetroBakken

Guide

Baytex

Pace

11.93

12.03

12.21

12.42

13.04

NAL

Perpetual

Crew

CrescentPoint

Paramount

11.13

11.22

11.37

11.64

11.90

Bonavista

Compton

ARC

Enerplus

NuVista

8 73

9.04

9.10

9.55

10.31

L Pi

Progress

Birchcliff

Fairborne

Daylight

7.83

8.29

8.56

8.56

8.73

Tourmaline

Celtic

Advantage

Trilogy

Lone Pine

2.90

6.85

0.00 5.00 10.00 15.00 20.00 25.00

Peyto

Angle

3.04

3.10

3.14

4.33

Legacy

Pace

Bellatrix

Guide

2.33

2.45

2.68

2.96

2.97

Fairborne

Enerplus

Perpetual

PetroBakken

Birchcliff

2 11

2.12

2.29

2.30

2.31

P g th

Paramount

NAL

Daylight

Lone Pine

1.88

1.92

1.96

1.98

2.11

Advantage

NuVista

Angle

Baytex

Pengrowth

1 43

1.50

1.58

1.61

1.76

CrescentPoint

Crew

ARC

Chinook

Compton

0.94

0.95

0.97

1.21

1.43

Tourmaline

Bonavista

Progress

Trilogy

CrescentPoint

0.25

0.84

0.00 1.00 2.00 3.00 4.00 5.00

Peyto

Celtic

office costsThe general and administrative (G&A) cash expenses per boe represent office-related costs per barrel of oil equivalent produced. This number indicates how efficiently oil and gas companies manage their offices.

Factors that affect G&A include the number of staff, their salaries and benefits, contractors, service agreements, management fees, lease terms, processes and systems. The size of G&A can also be affected by the method a company uses in accounting for expenses, such as whether or not they are capitalized.

Wherever possible we have only included cash G&A expenses and management fees, excluding non-cash items such as share-based compensation.

FORMULAgeneral & administrative expenses


Notes: Total production in the period = Average daily production x 92 days in the period.

field costsTypically heavier oil has higher operating and transportation costs than light oil. Thankfully, natural gas often comes with even lower operating costs, which is important considering the selling price for natural gas is relatively low.

Other factors that can influence operating and transportation costs include proximity to pipelines, volumes being produced per well and the cost of secondary and tertiary methods being used to stimulate production.

FORMULAoperating expenses (including transportation costs)


Note: Total production in the period = Average daily production x 92 days in the period.


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Q3 OPERATING AND TRANSPORTATION EXPENSES ($/BOE)Median = $11.64/boe

Q3 GENERAL AND ADMINISTRATIVE CASH EXPENSES ($/BOE)Median = $1.98/boe

15 31

15.53

15.72

16.67

17.00

17.38

18.41

18.72

19.88

20.56

20.70

20.72

21.97

23.65

24.28

26.67

31.28

38.30

Tourmaline

Trilogy

Advantage

Enerplus

Pengrowth

NuVista

Guide

Fairborne

Daylight

NAL

ARC

Crew

Chinook

Paramount

Celtic

PetroBakken

Legacy

CrescentPoint

9.31

11.25

12.88

13.17

13.39

13.42

13.87

14.53

14.68

14.73

15.16

15.31

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00

Peyto

Birchcliff

Bonavista

Compton

Pace

Baytex

Lone Pine

Angle

Bellatrix

Perpetual

Progress

Tourmaline

7.2

7.8

8.1

9.1

9.2

9.4

9.7

10.5

11.0

11.2

11.2

11.6

15.9

17.4

19.0

19.5

19.7

27.6

Lone Pine

Crew

Pengrowth

Legacy

Bonavista

ARC

Perpetual

Daylight

CrescentPoint

Baytex

Enerplus

Peyto

Birchcliff

Progress

Celtic

Tourmaline

Trilogy

Paramount

3.1

4.0

4.5

4.5

4.7

5.1

5.3

5.9

6.0

6.6

7.1

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Compton

Guide

Pace

NuVista

Fairborne

Advantage

Chinook

NAL

PetroBakken

Bellatrix

Angle

a range of multiplesAs can be seen by this chart, there is a large spread of cash flow multiples in the intermediate group. Where it would theoretically take some companies only around half a decade to produce as much cash flow per share as their share price and net debt per share combined, others would take well over a decade to do the same. These multiples may be a good barometer of current market sentiment towards each of the companies.

The cash flow multiples in this report are calculated using the closing market price on November 30, 2011 and the Q3 2011 weighted average number of shares outstanding. The numbers on the chart correspond to the dark bars that show multiples of enterprise value to annualized cash flow. The lighter bars simply reflect the market capitalization as a multiple of annualized cash flow without taking debt into account.

FORMULAenterprise value


Note: Enterprise value = Q3 weighted average basic shares or units x November 30, 2011 share price + net debt.

Market Capitalization to Annualized Cash Flow

Enterprise Value to Annualized Cash Flow

reserves come at a costDepletion, depreciation and accretion expenses indicate the finding and development costs for oil and gas reserves. These costs relate mainly to accounting for the production of oil and gas reserves, and the depletion of value from the balance sheet as reserves are produced. Higher amounts mean the value of a company’s reserves is being decreased more rapidly than companies with lower amounts. This could be because the valuation was high in the first place or the reserves are being produced at a faster pace.

FORMULAdepletion, depreciation & accretion expenses


Note: Total production in the period = Average daily production x 92 days in the period.


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Q3 DEPLETION, DEPRECIATION AND ACCRETION EXPENSES ($/BOE)Median = $16.67/boe

ANNUALIZED Q3 CASH FLOW MULTIPLESEnterprise Value to Annualized Cash Flow Median = 9.1 Market Capitalization to Annualized Cash Flow Median = 6.5

1.6

1.7

1.8

1.8

1.8

1.8

1.9

2.0

2.0

2.0

2.3

2.3

2.4

2.4

2.9

2.9

3.2

7.1

Peyto

Chinook

Trilogy

NuVista

Bonavista

Legacy

Pace

Fairborne

Angle

NAL

Pengrowth

Compton

Lone Pine

Paramount

Birchcliff

Daylight

PetroBakken

Perpetual

0.9

0.9

1.1

1.1

1.2

1.3

1.4

1.4

1.6

1.6

1.6

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

CrescentPoint

ARC

Bellatrix

Tourmaline

Baytex

Progress

Crew

Enerplus

Guide

Advantage

Celtic

(21.7)

(11.3)

(11.2)

(10.1)

(4.8)

(4.7)

1.1

1.6

3.6

3.9

5.8

7.3

8.3

9.5

15.1

15.8

47.4

57.0

Legacy

Pengrowth

Chinook

Enerplus

Bonavista

Tourmaline

Baytex

CrescentPoint

Guide

ARC

Progress

Birchcliff

Daylight

Bellatrix

Peyto

Celtic

Paramount

Trilogy

(77.1)

(59.9)

(50.3)

(38.5)

(38.4)

(30.1)

(29.9)

(29.0)

(26.5)

(23.0)

(22.3)

(100.0) (80.0) (60.0) (40.0) (20.0) 0.0 20.0 40.0 60.0 80.0

Compton

Perpetual

NuVista

Advantage

Pace

Fairborne

Angle

NAL

Lone Pine

PetroBakken

Crew

years of debtWe calculate net debt as bank debt plus debentures net of working capital. Companies with lower debt to cash flow ratios are in a safer position when it comes to having room to manoeuvre with their balance sheets. As debt levels get higher, returns for shareholders get leveraged, but risk also increases and companies can become constrained in their ability to invest in growth.

Total net debt for all the intermediate companies adds to $14.9 billion.

FORMULAnet debt


Note: Net debt = bank debt + debentures – working capital.

Convertible debentures make up a portion of the debt load for Advantage, Angle, Bellatrix, Daylight, Fairborne, NAL, Perpetual, PetroBakken and Progress.

market discontentThe third quarter continued to be a challenging for capital markets and the intermediate oil and gas sector. A median drop in investor returns of 10 percent during the third quarter extended into a drop of 22 percent when the subsequent two months of October and November were included. An investment of $1,000 in the median intermediate company at the beginning of the third quarter of 2011 would have left the investor with $900 at the end. These numbers take into account all dividends.

Twelve of the intermediate companies showed positive shareholder returns during the five month period from July through November 2011.

FORMULAcapital gain + total distributions or dividends over the

period per share or unit

market price at end of the previous period

Note: Capital gain in period = market price at end of current period – market price at end of previous period.

Share price change plus distributions from July through November 2011

Share price change plus distributions from July through September 2011


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Q3 NET DEBT TO ANNUALIZED CASH FLOWMedian = 1.8

Q3 TOTAL RETURN – CAPITAL GAINS AND DISTRIBUTIONS (%)July through September Median: -22% July through November Median: -10%

Shortenedcompanyname

Chiefexecutive

Stocksymbol& exchange(T=TSX, V=Venture)

Share priceNov 30/11

($)

Q3/11 average daily production

(boe/d)

Q3/11 weighted shares outstanding

(basic) including exchangeable

(000)

Sept 30/11net debt before

debentures($000)

Sept 30/11 debentures

outstanding($000)

Q3/11net income

($000)

Q3/11cash flow

($000)Advantage Andy Mah AAV-T 4.70 28,638 165,647 208,906 137,360 (2,997) 55,213 Angle Gregg Fischbuch NGL-T 7.03 13,993 72,706 142,945 52,780 5,040 24,852 ARC John Dielwart ARX-T 25.58 85,178 287,100 829,100 0 120,800 218,300 Baytex Anthony Marino BTE-T 52.50 52,625 116,404 734,942 0 51,839 153,500 Bellatrix Raymond Smith BXE-T 4.97 11,837 107,391 54,125 48,692 820 23,964 Birchcliff Jeffery Tonken BIR-T 13.97 17,648 126,630 386,296 0 11,411 33,844 Bonavista Keith MacPhail BNP-T 26.73 71,636 160,725 1,073,480 0 31,166 146,516 Celtic David Wilson CLT-T 24.70 15,808 97,650 221,358 0 (1,592) 34,626 Chinook Matthew Brister CKE-T 1.50 14,443 214,188 151,014 0 (3,543) 22,114 Compton Tim Granger CMT-T 5.50 13,429 8,684 144,791 0 28,307 15,421 CrescentPoint Scott Saxberg CPG-T 44.35 72,258 275,324 1,090,121 0 204,624 302,594 Crew Dale Shwed CR-T 11.66 27,510 119,595 294,624 0 12,232 53,805 Daylight Anthony Lambert DAY-T 9.93 35,468 212,969 576,643 237,447 13,592 69,785 Enerplus Gordon Kerr ERF-T 26.65 73,245 180,266 696,932 0 111,321 123,262 Fairborne Steven VanSickle FEL-T 3.32 15,158 102,579 146,985 99,353 1,323 31,504 Guide Bill Andrew GO-T 3.13 11,698 84,364 167,870 0 17,132 26,789 Legacy Trent Yanko LEG-T 9.17 12,642 143,256 332,288 0 7,905 45,086 Lone Pine David Anderson LPR-T 7.53 16,473 85,000 325,814 0 27,889 33,580 NAL Andrew Wiswell NAE-T 7.56 28,752 148,784 373,552 197,748 11,087 72,045 NuVista Jonathan Wright NVA-T 4.52 25,360 99,513 300,177 0 1,807 41,290 Pace Fred Woods PCE-T 4.54 13,558 47,531 165,113 0 5,524 21,174 Paramount Clay Riddell POU-T 40.76 20,707 78,982 311,956 0 (22,418) 32,010 Pengrowth Derek Evans PGF-T 10.50 74,568 329,262 1,384,978 0 (462) 150,354 Perpetual Susan Riddell Rose PMT-T 1.21 22,578 147,408 267,729 222,374 (24,343) 17,169 PetroBakken John Wright PBN-T 9.88 39,074 172,270 1,333,500 646,246 40,277 152,723 Peyto Darren Gee PEY-T 24.50 36,390 133,061 536,653 0 37,741 81,492 Progress Michael Culbert PRQ-T 14.43 42,937 231,530 (84,905) 353,100 161,352 51,746 Tourmaline Michael Rose TOU-T 30.55 34,347 151,044 280,260 0 8,688 62,719 Trilogy James Riddell TET-T 37.30 29,035 115,809 430,453 0 14,404 60,366

TOTAL 956,991 4,215,674 12,877,700 1,995,100 870,926 2,157,843 AVERAGE 33,000 145,368 444,059 68,797 30,032 74,408

Data provided by CanOils Database and BMIR researchers.


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INTERMEDIATE DATA TABLE

iQ SNAPSHOT


Focus of Operations

ACQUIRE, DEVELOP, EXPLOIT Listing: TSX-CPG



Market capitalization: $12,679 million

Net debt: $1,090 million at September 30, 2011

Enterprise value (market cap. + net debt): $13,769 million




Total 72,258 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50CPG $45.52

Peer Median$21.92

Recent News:December 5, 2011 Crescent Point announces a $1.1 billion capital expendituresbudgetfor2012andanupwardlyrevisedcapital budget and guidance for 2011

November 10, 2011 Crescent Point Energy announces third quarter 2011 results

October 11, 2011 Crescent Point Energy acquires common shares of Arcan Resources Ltd.

Strategies:• Increaserecoveryfactorsthroughinfilldrilling,waterfloodoptimizationand

improved technology

• Focusonhigh-quality,largeresource-in-placepoolswithproductionand reserves upside

• Maintainstrongbalancesheet,significantunutilizedbanklinecapacityand 3 ½-year hedging program

— from Crescent Point Energy website

SWSaskatchewan

Worsley JohnLake

SwanHills

SESaskatchewanSE Alberta

Contact:2800, 111 - 5th Avenue S.W. Calgary,AlbertaT2P3Y6

tel 403.693.0020 toll-free 888.693.0020

[email protected]

Investor Relations 403.767.6959

[email protected]

Analyst Coverage:AltaCorp Capital

BMO Nesbitt Burns

Canaccord Genuity

CIBC Wood Gundy

CormarkSecurities

Credit Suisse


Dundee Securities

First Energy Capital

GMP Securities

HaywoodSecurities

Macquarie Capital Markets


Peters & Co.

Raymond James

RoyalBank of Canada

Salman Partners

Scotia Capital

Stifel Nicolaus Canada

TDNewcrest

UBS Securities

Officers:ScottSaxberg - President & CEOGreg Tisdale - CFONeil Smith - VP, Engineering & Business

Development Dave Balutis -VP,ExplorationBrad Borggard - VP, Corporate PlanningDerekChristie - VP, Geosciences

Trent Stangl -VP,Marketing&Investor

RelationsStevenToews - VP, Engineering WestRyanGritzfeldt - VP, Engineering EastTamara MacDonald - VP, LandKen Lamont - VP, Finance and TreasurerMarkEade - Corporate Secretary

Directors:Peter Bannister - ChairmanPaul ColborneKen Cugnet

HughGillardGeraldRomanzinScottSaxbergGregory Turnbull

FlatLake


INTE

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APS

HO

TS

iQ SNAPSHOT


Focus of Operations

UNLOCKING SIGNIFICANT POTENTIAL FROM RESOURCE PLAYSListing: TSX-GO

Shares outstanding: 86 million at September 30, 2011








Total 11,698 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50GO $24.89

Peer Median$21.92

Recent News:December 8, 2011 GuideExplorationLtd.AnnouncesNormalCourseIssuerBid For Class A Shares

November 24, 2011 GuideExplorationAnnouncesCompletionof BrokeredFlow-ThroughShareFinancing

November 16, 2011 GuideExplorationAnnouncesCompletionof Non-BrokeredFlowThroughShareFinancing

Strategies:• Focusdevelopmentonliquids-richopportunitiesincorearea

• Optimizehorizontaldrillingandcompletiontechnology

• Consolidatelandpositioninmulti-zonePeaceRiverArch/DeepBasinarea

• Reviewportfoliowithaimtoconsolidate,growormonetize

— from Guide Exploration December 2011 corporate presentation

Contact:LivingstonPlace,WestTower 400,250–2ndStreetS.W. Calgary, Alberta T2P 0C1

tel 403.261.6012

[email protected]

Analyst Coverage:CormarkSecurities

FirstEnergy Capital

GMP Securities

Schachter Asset Management

Scotia Capital

Stifel Nicolaus

Officers:WilliamAndrew - Chair & CEO

Dale Miller - President

Shivon Crabtree - VP, Finance & CFO

Jim Iverson -VP,Exploration

Dale Orton - VP, Operations &

Engineering

Devin Sundstrom - VP, Production

William Tang Kong - VP, Corporate

Development

Directors:WilliamAndrew

John Brussa

Glenn Carley

WilliamCooke

Jeffery Errico

LawrenceFenwick

Dale Miller

Brad Munro

PatriciaNewson

Peace River Arch


INTE

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IATE

SN

APS

HO

TS

iQ SNAPSHOT


Focus of Operations

PRUDENT AND STABLE ACQUISITIONSListing: TSX-NAE



Market capitalization: $1,127 million

Net debt: $571 million at September 30, 2011

Enterprise value (market cap. + net debt): $1,699 million




Total 28,752 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50NAE $27.24

Peer Median$21.92

Recent News:November 8, 2011 NAL Energy Reports Third Quarter 2011 Results

October 12, 2011 NAL Energy Announces October Dividend & Updates Corporate Activities

September 12, 2011 NAL Energy Provides an Operations Update

Strategies:• CompetitivelypositionedintheCardiumoilresourceplayincentralAlbertawith additionalacreageinitsemergingMississippianlightoilresourceinSESaskatchewan

• Highgradeassetbasefurtherthroughselectiveacquisitionanddivestitureactivities

• Targetadividendpayoutratioof40–50percentofcurrentyearcashflow

• Balanceanextensiveinventoryoflightoilopportunities

• Prudentlymanagethebalancesheet

• Maintainfocusonfinancialflexibility

— from NAL Energy website

Contact:1000,550–6thAvenueS.W. Calgary, Alberta T2P 0S2

tel 403.294.3600 toll free 866.614.8933

[email protected] www.nalenergy.com

Analyst Coverage:BMOCapitalMarkets

Barclays Capital

CIBCWorldMarkets

FirstEnergy Capital

GMP Securities

Macquarie Capital


Peters & Co.

Raymond James

RBCCapitalMarkets

Salman Partners

Scotia Capital

Stifel Nicolaus

TD Securities

Officers:AndrewWiswell-President&CEO

Keith Steeves - VP, Finance & CFO

John Koyanagi - VP, Business Development

Directors:WilliamEeuwes

Donald Ingram

Kelvin Johnston

Irvine Koop - Chairman

GordonLackenbauer

BarryStewart

AndrewWiswell

Mississippian Oil

Tight Gas

Cardium Tight Gas


INTE

RMED

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HO

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iQ SNAPSHOT


Focus of Operations

SUSTAINABLE BASE ASSETS FUEL GROWTHListing: TSX-PMT




Net debt: $490 million at September 30, 2011

Enterprise value (market cap. + net debt): $668 million




Total 22,578 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50PMT $8.27

Peer Median$21.92

Recent News:November 30, 2011 PerpetualEnergyProvidesUpdateOnHedging,Expected2011ExitProductionRatesandScheduledCreditFacilityBorrowingBaseReview

November 8, 2011 Perpetual Energy Releases Third Quarter 2011 Financial and Operating Results

October 19, 2011 Perpetual Energy Announces Suspension of Dividend

Strategies:• SolidperformingsustainableconventionalshallowgasineasternAlberta andresource-style,liquids-richgasinwestcentralAlberta’sdeepbasin

• Explorationinbothoilandgasresourceplaysandnewventureswith high impact potential

• Harnessingopportunitieswithinourassetswhereemergingandadvancedtechnologieswillcreatevaluewellintothefuture

— from Perpetual Energy website

Contact:3200, 605 - 5th Avenue S.W. Calgary,AlbertaT2P3H5

tel 403.269.4400 toll free 800.811.5522

[email protected] www.perpetualenergyinc.com

Analyst Coverage:BMO Nesbitt Burns

Canaccord Adams

CIBCWorldMarkets

CormarkSecurities

Dundee Securities

FirstEnergy Capital

Peters & Co.

Raymond James

RBCCapitalMarkets

Scotia Capital

TDNewcrest

Officers:Clayton Riddell -ExecutiveChairmanSusan Riddell Rose - President & CEOCameron Sebastian - VP, Finance and CFOJeff Green - VP, Production Operations

& Administration

GaryJackson - VP, Land & AcquisitionsMarcello Rapini -VP,MarketingBill Thorton -VP,HeavyOilRickWarters - VP, Geoscience &NewVentures

Directors:Clayton Riddell -ExecutiveChairmanoftheBoardSusan Riddell RoseKarenGenowayRandall Johnson

Robert MaitlandGeoffrey MerrittDonald Nelson

HowardWard

West Central District Eastern District


INTE

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Focus of Operations

TECHNICAL EXCELLENCE, HIGH NETBACKSListing: TSX-PBN

Shares outstanding (A+B): 187.2 million at September 30, 2011


Market capitalization: $1,849.9 million

Net debt: $1,333.5million+$646.2milliondebenturesatSeptember30,2011

Enterprise value (market cap. + net debt): $3,829.6 million




Total 39,074 boe/d 100%

Cash flow netback:

Oil

Gas

$0 $50PBN $42.48

Peer Median$21.92

RecentNews:

December 13, 2011 PetrobakkenAnnouncesW.BrettWilsonasaNewDirector, Provides Operational Update, 2012 Guidance, and Implementation of a Dividend Reinvestment Plan

November 8, 2011 PetroBakkenAnnouncesThirdQuarter2011Results,CurrentProductioninExcessOf47,500Boepd,andRevisiontoExitGuidance

October 3, 2011 PetroBakkenProvidesOperationalUpdateHighlightedby Production of Over 43,000 boepd at the End of September 2011, a 22% Increase Over Q2 2011

Strategies:• Focusondeliveringindustryleadingoperatingnetbacks,strongcashflowsandproductiongrowth

• ApplyleadingedgetechnologytoamultiyearinventoryofBakkenandCardiumlightoildevelopment locations

• DevelopsignificantinventoryofopportunitiesintheHornRiverandMontneygasresource plays

• Deliveraccretiveproductionandreservesgrowthintandemwithwithanattractivedividend yield.

— from from PetroBakken website

Contact:2800,525–8thAvenueS.W. Calgary, Alberta T2P 1G1

tel 403.268.7800

[email protected] www.petrobakken.com

Analyst CoverageAlta Corp Capital

BankofAmerica

BMO Nesbitt Burns

Canaccord Genuity

CIBCWorldMarkets

CormarkSecurities

Credit Suisse Securities


FirstEnergy Capital

GMP Securities

HaywoodSecurities

Macquarie Financial


Peters & Co.

Raymond James

RBCCapitalMarkets

Scotia Capital

Stifel Nicolaus

TD Securities

Officers:John Wright - President & CEO

Gregg Smith - Sr. VP & COO

Mary Bulmer - VP, Corporate Services

LawrenceFisher - VP, Land and A&D

AndreaHatzinikolas - Corporate Secretary

PeterHawkes -VP,Exploration

William Kanters -VP,CapitalMarkets

Rene LaPrade - Sr VP, Operations

Peter Scott - Sr VP & CFO

Directors:IanBrown

MartinHislop

Craig Lothian

Brett Wilson

John Wright

Corey Ruttan

Dan Themig

Kenneth McKinnon - Chairman

Cardium

HornRiver

Monias

SESaskatchewan


INTE

RMED

IATE

SN

APS

HO

TS

TUNISIACandaxChinookCYGAMDualexLundinSondeWinstar

FRANCEGallic Lundin Sterling Vermilion

UKRAINEEast WestTransEuro

SPAINBNKDundeeSaxon

TANZANIAAntrim HeritageOrca

YEMENCalvalleyEast WestTransGlobe

PAKISTANHeritageNiko

PAPUA NEW GUINEAEaglewoodLNG TransEuro

UNITED KINGDOMAntrim Bridge Canadian OverseasInternational FrontierIona Ithaca Lundin Serica Sterling VermilionXcite

HUNGARYDualexFalconWinstar

ITALYBRS CYGAMOrcaSaxon Oil

ROMANIAEast WestSterlingTransAtlanticWinstar

INDIABengalEast WestNiko

NAMIBIAEnergulfHRT ParticipacoesSerica

SOMALIAHorn

CONGOEnergulfHeritageLundin

ETHIOPIAAfrica OilCalvalleyEpsilon

THAILANDCoastalPan Orient

MALTAHeritage

BRAZILBrookwaterBrownstoneCanacolGran TierraHRT ParticipacoesPetro Vista

UNITED STATESArsenal Aurora BlackbirdBNK Bowood Bridge BrownstoneBRS Bucking HorseCaza Oil & GasDejour Derek Doxa Eagle Enerplus Enhanced OilEnterprise EpsilonEqual Exall First StarGale ForceGuardianHillcrestIvanhoeLNG Lynden KFG Maxim Montana MountainviewNextraction NiMin Parallel Paramax Paramount Petra Primary Renegade Saxon Thunderbird UndergroundUnited Hunter Westbridge Wind River Zargon Zodiac

COLOMBIAAzabache Bolivar EnergyBrownstoneC&C EnergiaCanacol EnergyGran TierraParex PetroamericaPetrodoradoPetromagdalenaPetromineralesPetroNovaPetro VistaQuetzal EnergySagres EnergySuroco Energy

GUYANACanacolCGX EnergyGroundstarSagres

ARGENTINAAmericas PetrogasAntrim ArPetrolAzabache BrownstoneCrown PointGran TierraMadalena

PERUAmericas PetrogasGran TierraLoonPetrodoradoPetromineralesVeraz Petroleum

TRINIDAD & TOBAGOMaxim Niko Parex Primera Touchstone

ALBANIAAPICBankersManasPetromanasStream

KAZAKHSTANCaspianCondorTethys

RUSSIAEast WestHeritageLundinPetroKamchatka

TAJIKISTANManasTethys

NEW ZEALANDNew ZealandTAG

CHINAIvanhoePrimeline

AUSTRALIABengalFalconGallicPetroFrontierRodiniaVermilion

INDONESIACBM AsiaLundinPan OrientSerica

SYRIAMena

EGYPTEast WestGroundstarMenaSea DragonTransGlobe

IRAQGroundstarHeritageIraqLongfordShaMaranSonoroVastWesternZagros

ECUADORIvanhoe

GUATEMALA Quetzal

UZBEKISTANTethys

MONGOLIAIvanhoeManas

MOROCCOLongreachSericaTransAtlantic

PARAGUAYPetrodorado

LIBYAHeritageSonde

LIBERIASimba

ISRAELAdiraBrownstone

KENYAAfrica OilSimbaVanoil

POLANDBNK LNG GERMANY

BNK Petroleum

NETHERLANDSLundinSterlingVermilion

ZAMBIAExile

JAMAICASagres Energy

PORTUGALPorto

NORWAYLundin

AZERBAIJANGreenfields

VIETNAM Lundin

BULGARIATransAtlantic

MALAYSIA Lundin

KYRGYZSTANManas

GUINEASimba

NIGERIAExileMart

MALIAfrica OilHeritageSimba

TURKEYExileTransAtlantic

SOUTH AFRICAFalcon

BANGLADESHNiko

MADAGASCARCandaxNiko

RWANDAVanoil


This map shows the footprint of activities for TSX and TSX Venture listed oil and gas companies with a market capitalization of more than $5 million and less than 100,000 boe/d of production in the third quarter of 2011. If you know a company that meets this criteria that has been left out, please email us at [email protected].

Canadian companies operating abroad




SPAINBNKDundeeSaxon











SOMALIAHorn




MALTAHeritage
















SYRIAMena



ECUADORIvanhoe

GUATEMALA Quetzal

UZBEKISTANTethys



PARAGUAYPetrodorado

LIBYAHeritageSonde

LIBERIASimba




BNK Petroleum


ZAMBIAExile


PORTUGALPorto

NORWAYLundin


VIETNAM Lundin


MALAYSIA Lundin

KYRGYZSTANManas

GUINEASimba

NIGERIAExileMart



SOUTH AFRICAFalcon

BANGLADESHNiko


RWANDAVanoil




SPAINBNKDundeeSaxon











SOMALIAHorn




MALTAHeritage
















SYRIAMena



ECUADORIvanhoe

GUATEMALA Quetzal

UZBEKISTANTethys



PARAGUAYPetrodorado

LIBYAHeritageSonde

LIBERIASimba




BNK Petroleum


ZAMBIAExile


PORTUGALPorto

NORWAYLundin


VIETNAM Lundin


MALAYSIA Lundin

KYRGYZSTANManas

GUINEASimba

NIGERIAExileMart



SOUTH AFRICAFalcon

BANGLADESHNiko


RWANDAVanoil


iQ SNAPSHOT

HIGH IMPACT EXPLORATION AND DRILLING IN STABLE COUNTRIESListing: TSX-BNG




Net surplus: $33.1 million at September 30, 2011


Average daily production for fiscal period Q2 2012 ended September 30, 2011:



Total 129.7 boe/d 100%

Oil

Gas

Recent News:December 16, 2011 Bengal Energy Releases 2011 Operational Update and 2012 Plan.

November 14, 2011 Bengal Energy Announces Fiscal Q2 2012 Results – Production increases year over year after Australia drilling success

October 25, 2011 Bengal Energy Announces Operational Developments

Strategies:• Developaportfolioofhigh-impactopportunities

• Commenceexplorationactivatesonoperatedlands

• Managetechnicalriskandcapitalexposurethroughtargetedfarmoutstomajors and national oil companies

• Purchase/develop/exploitproducingassetstounderpinvalue

— from Bengal Energy website and September 2011 AGM presentation

ThiscompanysnapshothasbeenassembledbyBMIRusingpubliclyavailableinformation.Thesnapshotisnotendorsedbythecompanyprofiled.

Focus of Operations

AUSTRALIA

INDIA

Cauvery Basin

Cooper Basin

Timor Sea

Contact:1000,736-6thAvenueS.W. Calgary, Alberta T2P 3T7

tel 403.205.2526

[email protected] www.bengalenergy.ca


CormackSecurities

Officers:ChayanChakrabarty-President&CEO

Bryan Goudie - CFO

RichardEdgar-ExecutiveVP

GarrettWilson-VP,Engineering&Operations

GordonMacMahon-VP,Exploration

Directors:IanTowers-Chairman

ChayanChakrabarty

Peter Gaffney

James Howe

Robert Steele


INTE

RNAT

ION

AL

SNA

PSH

OTS

iQ SNAPSHOT


Focus of Operations

SOLID PORTFOLIO OF OIL & GAS ASSETSListing:TSX-EQU,NYSE-EQU



Market capitalization: $184 million

Net debt:$222.6million(includes$41.1milliondebentures)atSeptember30,2011





Total 11,263 boe/d 100%

Oil

Gas

Recent News:November 16, 2011 Equal Energy Closes $40 Million Asset Sale

November 10, 2011 Equal Energy Announces Its Results for the Third Quarter Ended September 30, 2011

October 26, 2011 Equal Energy Announces Divestiture of Non-core Assets for Proceeds of $49.35 Million

Strategies:• DeliverconsistentNAVandcashflowgrowthonapersharebasis

• Increasenetback/boebyfocusingonthreeprovenresourceplaysinViking,CardiumandHuntonLiquids-rich

• BuildonpositioninMississippianlight-oilpotentialinOklahoma

• Maintainoperationalandfinancialdiscipline

— from Equal Energy November 2011 presentation

Contact:2700, 500 - 4th Avenue S.W. Calgary, Alberta T2P 2V6

tel 403.263.0262 toll free 877.263.0262

[email protected] www.equalenergy.ca


Jennings Capital

Octagon Capital

PI Financial

Scotia Capital

Officers:DonKlapko - President & CEO

Dell Chapman - Sr. VP & CFO

John Reader - Sr. VP & COO

JohnChimahusky - Sr. VP & COO,

U.S. Operations

Terry Fullerton -Sr.VP,Exploration

MarkRupert - VP, U.S. Operations

RichardDixon - VP, Land,

U.S. Operations

PeterLetizia - VP, Production

for Canada

Directors:Daniel Botterill

Peter Carpenter - Chairman

Michael Doyle

VictorDusik

Roger Giovanetto

DonKlapko

RobertWilkinson

VikingTrend

HuntonTrend

Cardium Trends

SaskatchewanTrend

Clair Trend


INTE

RNAT

ION

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SNA

PSH

OTS

iQ SNAPSHOT

FINDING OPPORTUNITY, ANSWERS, ENERGYListing:TSX-PMGBVC:PMGC



Market capitalization: $2,043.2 million

Net surplus:$134million+$450.3indebenturesatSeptember30,2011

Enterprise value (market cap. + net debt): $2,359.5 million



Natural gas 0 mmcf/d 0%

Total 39,923 boe/d 100%

Oil

Gas

Recent News:December 12, 2011 Petrominerales Cobra-2 Well on Production at Over 5,000 Bopd

December 6, 2011 PetromineralesProvidesExplorationUpdate

November 3, 2011 Petrominerales Reports Third Quarter Results HighlightedbyFundsFlowfromOperationsofUS$196.4MillionandPisingo-1ExplorationSuccess

Strategies:• Highimpactexplorationwithinventoryof2.0millionexplorationacresinColumbia(100%WI)and9.5milliongrossacres(5.4millionnet)inPeru

• Proventrackrecordofsignificantproductionandreservesgrowth

• Applyingaportfoliobasedapproachtoagrowinginventoryofover100prospectstargeting multiple play concepts

• Fullyfundedexplorationprogramwithastrongbalancesheet;$134millionofworkingcapitalsurplus

— From Petrominerales’ November 2011 corporate presentation

Contact:1900,111–5thAvenueS.W. Calgary,AlbertaT2P3Y6

tel 403.750.4400

[email protected] www.petrominerales.com

Analyst Coverage:Acciones y Valores

AlianzaValores

BMO Nesbitt Burns

Bolsa y Renta

Canaccord Genuity

Celfin

CIBCWorldMarkets

CormarkSecurities

Dundee Capital Markets

FirstEnergy Capital

FraserMacKenzie

GMP Securities

HaywoodSecurities

Interbolsa

Jennings Capital

Macquarie Capital

Peters & Co.

Raymond James

RBCCapitalMarkets

Scotia Capital

Stifel Nicolaus

TDNewcrest

UBS Securities

Neiva

Block141

Officers:Corey Ruttan - President & CEO

John Scott - COO

KellySledz-CFO

ErikLyngberg -SrVP,Exploration

AllenKnight-VP,NewVentures

AndreaHatzinikolas - General Council

& Corporate Secretary

Tannya Morales - VP, Finance

Ruben Cano - VP, Services & Logistics

Jeff Chant -VP,OrganizationalPerformance

John Wright - Chairman of the Board &

Strategic Advisor

JaimieValenzuela - VP, Project Management

& Planning, & Director of Operations

Directors:John Wright - Chairman

JeraldOaks

Alastair MacDonald

Kenneth McKinnon

Ernesto Sarpi

EnriqueUmaña-Valenzuela

GeirYtreland

Block131

Block161Block126

Block114

Antorcha

Jaguar, JoropoCastor, Casanare Este, Mapache

Chiguiro Este, Chiquiro Oeste

Casimena

Rio Ariari


Focus of Operations

COLOMBIA

Orito, Las Aguilas

Blocks59,15, 25 & 31 Corcel & Guatiquia


INTE

RNAT

ION

AL

SNA

PSH

OTS

Company Ticker Chief Executive Q3 2011

Production (boe/d) November 30, 2011

share price ($)Abenteuer Resources Corp. ABU-V Lewis Dillman 21 0.13

Anglo Canadian Oil Corp ACG-V Todd Montgomery 20 0.06

Anterra Energy Inc. AE.A-V Gang Fang 386 0.07

Avatar Energy Ltd. AVG-V Alan Jack 127 0.21

Bayshore Petroleum Corp. BSH-V Peter Ho 8 0.13

Blackdog Resources Ltd. DOG-V David Corcoran 112 0.40

Blackhawk Resource Corp. BLR-V Dave Antony not available 0.07

Blacksteel Energy Inc. BEY-V Curtis Hartzler 29 0.15

BNP Resources Inc. BNX.A-V Gregory Bilcox 10 0.08

Border Petroleum Corp. BOR-V Kelly Kimbley 236 0.20

Canadian Energy Exploration Inc. XPL-V Lawrence Buzan 8 0.03

Carmen Energy Inc. CEI-V Brian Doherty 9 0.25

Century Energy Ltd. CEY-V Brian McBeath not available 0.06

Cumberland Oil & Gas Ltd. COG-V Daniel Allan 101 0.10

Desmarais Energy Corp. DES-V James Long 45 0.03

Detector Exploration Ltd. DEX-V Ronald Alexander 74 0.07

Diaz Resources Ltd. DZR-V Robert Lamond 400 0.06

Edge Resources Inc. EDE-V Brad Nichol 307 0.17

Elkwater Resources Ltd. ELW-V Don Brown 207 0.15

Emerald Bay Energy Inc. EBY-V Shelby Beattie 85 0.03

FairWest Energy Corporation FEC-V Vern Fauth 310 0.07

Firebird Capital Partners Inc. FRD-V Kevin Patterson 11 0.15

Great Pacific International Inc. GPI-V Thalbinder Poonian 7 0.05

Guardian Exploration Inc. GX-V Graydon Kowal 25 0.05

Hawk Exploration Ltd. HWK.A-V Steve Fitzmaurice 458 0.50

Hemisphere Energy Corporation HME-V Don Simmons 66 0.75

Hermes Financial Inc. HFI-V David Wehrhahn 37 0.01

Huntington Exploration Inc HEI-V Steve Harding 5 0.06

International Sovereign Energy Corp. ISR-T Sharad Mistry 292 0.40

Invicta Energy Corp. VCA-V Gordon Reese 145 0.14

Kallisto Energy Corp KEC-V Robyn Lore 178 0.12

Lariat Energy Ltd. LE-V Scott Emerson 5 0.12

Loma Oil & Gas Ltd. LOG-V Kim Wallace 9 0.05

Magnum Energy Inc. MEN-V Richard Nemeth not available 0.17

Manitok Energy Inc. MEI-V Massimo Geremia 414 1.71

Marquee Petroleum Ltd. MQE-V Richard Thompson 94 0.26

Mount Dakota Energy Corp. MMO-V Gary Claytens 20 0.05

Nordic Oil & Gas Ltd. NOG-V Donald Benson 73 0.06

Online Energy Inc. ONL-V Steve Dabner 380 0.20

Paris Energy Inc. PI-V John McLeod 24.5 0.10

Pennant Energy Inc. PEN-V Thomas Yingling not available 0.21

Pennine Petroleum Corporation PNN-V Jeff Saxinger 15 0.04

Petro Viking Energy Inc. VIK-V Giovanni DeFancesco 81 0.22

Petroforte International Ltd. PFI-V Kevin Adair 18 0.11

PetroSands Resources (Canada) Inc. PCA-V Greg Busby 348 0.14

Pine Cliff Energy Ltd. PNE-V George Fink 100 0.17

Poplar Creek Resources Inc. PCK-V John Carruthers 18 0.06

Primary Petroleum Corporation PIE-V Michele Marrandino 2 0.60

RedWater Energy Corp. RED-V Gary Waters 123 0.35

Relentless Resources Ltd. RRL-V Daniel Wilson 111 0.35

Ria Resources Corp. RIA-V Neil Wilson 69 0.10

Saccharum Energy Corp. SHM-V Johannes Kingma 20 0.18

Sahara Energy Ltd. SAH-V Peter Boswell 32 0.04

Solara Exploration Ltd. SAA.A-V Donald Holding 314 0.18

Terrex Energy Inc. TER-V Kim Davies 332 0.09

Torquay Oil Corp. TOC.A-V Brent McKercher 268 0.22

Touchstone Exploration Inc. TAB-V Paul Baay not available 0.25

Trafina Energy Ltd. TFA.A-V Kelly Ogle 334 0.20

Traverse Energy Ltd. TVL-V Laurie Smith 202 0.74

TrinCan Capital Corp. TRN-V Burkhard Franz 28 0.10

Tuscany Energy Ltd. TUS-V Robert Lamond 219 0.13

Vecta Energy Corporation VER-V Thomas Coffman 49 0.02

Western Plains Petroleum Ltd. WPP-V David Forrest 184 0.11


Emerging conventional companies This list of emerging public companies serves as our reference point for tracking companies that may soon fit the criteria for inclusion in our iQ Report. This list is always changing and is not exhaustive. If you know of other emerging oil and gas companies that belong on this list, please let us know at [email protected].

B R Y A N M I L L S I R A D E S S O • i q . b m i r . c o m52

Cleawater Shale Caprock

Wabiskaw Bitumen

McMurray Bitumen

SAGD injectorSAGD producer infill horizontal well

created for S

outhern P

acific

Conduction and cyclic steam

SAGD & CSS

create

d for

Petrob

ank

THAI®

Emerging Oil Sands CompaniesCanadian oil sands focused companies

This list is focused on junior and intermediate oil sands players (less than 100,000 bopd of production), listed on either the TSX or the TSX Venture Exchanges. in most cases their primary focus is on oil sands development in canada. For all companies in this list with production, this was initiated no earlier than 2007.

Company Chief executive

Stock symbol & exchange (T=TSX, V=Venture)

Share price November 30,

2011 ($)

Market cap Nov. 30/11 share price

& Sept. 30/11 shares o/s ($000)

Area of focus (see map) Stage of development Recovery method

Alberta oilsands michael Lee V-AoS $ 0.16 $ 25,059 Athabasca Delineation drilling SAGD anticipated

Athabasca oil Sands Sveinung Svarte T-ATH $ 11.81 $ 4,697,640 Athabasca Delineation drilling in situ recovery

blackPearl resources John Festival T-PXX $ 4.45 $ 1,267,057 Ab & SK Heavy oil Heavy oil productionconventional, SAGD,

ASP flood

connacher oil and Gas richard Gusella T-cLL $ 0.45 $ 201,717 Athabasca Producing from q4/07,

new pod completedSAGD

Habanero resources Jason Gigliotti V-HAo $ 0.09 $ 9,813 Athabasca Delineation drilling SAGD anticipated

ivanhoe Energy robert Friedland T-iE $ 1.02 $ 351,022 Athabasca Delineation drilling SAGD anticipated

mEG Energy William mccaffrey T-mEG $ 44.67 $ 8,620,342 Athabasca on production SAGD

Pengrowth Energy Derek Evans T-PGF $ 10.50 $ 3,465,875 cold Lake Pre-production SAGD

Petrobank Energy John Wright T-PbG $ 9.20 $ 978,211 Athabasca/Peace river/SK Pilots, limited production THAi®

Pixar Petroleum (Paramount resources Ltd.)

William roach T-PoU $ 40.76 $ 3,220 Athabasca Delineation drilling SAGD anticipated

Poplar creek resources inc.

John carruthers V-PcK $ 0.06 $ 2,327 Athabasca Delineation drilling in situ recovery

Silverbirch Energy Howard Lutley V-SbE $ 6.45 $ 322,539 Athabasca Pre-production mining and in situ

Southern Pacific resource

byron Lutes T-STP $ 1.40 $ 473,630 Athabasca, SK Heavy oil Project under construction;

heavy oil productionSAGD anticipated

NoTES:1. oilsands quest is traded on the Amex Exchange (bqi) and Statoil is traded on the oslo (STL) and NYSE (STo) Exchanges2. Private companies: Andora Energy, E-T Energy, Grizzly oil Sands, Harvest operations, JAcoS, Koch Exploration, Laricina Energy, N-SoLV, oak Point Energy, oSUm, Sunshine oil Sands and Value creation 3. Southern Pacific’s fiscal year end is June 30. Shares outstanding as at the end of q1, September 30

A GUIDE TO THERMAL IN SITU RECOVERY METHODSSteam-assisted gravity drainage (SAGD)A method of producing heavy oil which involves two horizontal wellbores, one above the other; steam is injected into the upper wellbore and softened bitumen is recovered from the lower wellbore.

Cyclic steam stimulation (CSS)A method of producing heavy oil which involves injecting steam, allowing time for the steam to heat and soften the heavy oil and producing the oil from the same wellbore used to inject the steam.

Toe-to-Heel Air Injection (THAI®)A method of producing heavy oil which involves initiating combustion by injecting air in the upper region of a reservoir through a vertical well located at the toe of a horizontal production well; a combustion front then develops and sweeps the oil from the toe to the heel of the horizontal producing well.

News Release DistributionEarnings WebcastsConferencingRegulatory FilingIR WebsitesTranslationXBRL

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www.newswire.ca I 1.877.Cnw.7890

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