Shallow Rights Reversion 1

Shallow Rights Reversion (SRR) Agreements purchased after January 1, 2009 are subject to SRR at the time of continuation, which occurs at the expiry of a primary term lease or intermediate term licence Section 16 and Section 17 continuations are not subject to SRR Initial term licences are not subject to SRR In conjunction with deeper rights reversion, both the shallow and deep non-productive rights will be severed from agreements An indefinite hold was placed on serving SRR notices for P&NG agreements issued prior to January 1, 2009 See Information Letter

Examples of Shallow Rights Reversion Section 15 A A A B C D D Shallow and deeper rights severance Shallow and deeper rights severance (MULTIPLE ZONES) Shallow and deeper rights severance (SINGLE ZONE) Legend Rights continued Rights severed 3

Shallow Rights Reversion Examples Section 17 shallow and Section 15 deep Potential Viking zone Proven Belloy zone Section 17 from surface to the base of the Viking zone Section 15 in the Belloy zone Rights are severed from agreement Legend Rights continued Rights severed 4

Shallow Rights Reversion Examples Section 15 shallow and Section 17 deep Potential Belloy zone Proven Viking zone Section 17 from surface to the top of the Viking zone Section 15 in the Viking zone Section 17 below the base of the Viking zone to the base of the Belloy zone Rights are severed from agreement Legend Rights continued Rights severed 5

Shallow Rights Reversion Examples Sections 15/15/17 Proven Viking zone Potential Belloy zone Proven Nordegg zone Section 17 from surface to the top of the Viking zone Section 15 from the top of the Viking zone to the base of the Nordegg zone Section 17 from below the base of the Nordegg zone to the base of the Belloy zone Rights are severed from agreement Legend Rights continued Rights severed 6

Shallow Rights Reversion Examples Sections 17/15/17 Potential Viking zone Proven Nordegg zone Potential Belloy zone Section 17 from surface to the top of the Nordegg zone Section 15 in the Nordegg zone Section 17 from below the base of the Nordegg zone to the base of the Belloy zone Rights are severed from agreement Legend Rights continued Rights severed 7