1. BUILDING A TOP TIER
ENERGY COMPANY,
SOLID RESULTS,
GREAT EXECUTION,
EXCELLENT POTENTIAL
Investor Update | AUGUST 2012
An Intermediate-Sized
Oil-Weighted Company
Matziwin Resource Play

2. Forward Looking Statements
Forward-Looking Statements: This presentation contains certain forward-looking statements and forward-looking
information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian
securities laws. All statements other than statements of present or historical fact are forward-looking statements. In some
cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "believes", "expects",
"intends", "projects", "plans", "anticipates", “positions”, “potential”, “objective”, “continuous”, “ongoing”, "estimates" or
"contains" or similar words or the negative thereof. In particular, this presentation contains forward-looking statements
relating to: the estimated production of Pace Oil & Gas Ltd. (“Pace”), the estimated reserves of Pace Oil & Gas Ltd., the
estimated pro-forma funds from operation of Pace Oil & Gas Ltd., the expected credit facility available to Pace Oil & Gas
Ltd., the anticipated number of wells and completions to be carried out, the anticipated replacement production from our
new completions, the expected reserve additions, future plans and expenditures of Pace Oil & Gas Ltd., the forecasted
commodity prices.
These statements represent management's expectations or beliefs concerning, among other things, future capital
expenditures and future operating results and various components thereof or the economic performance of Pace and
include, without limitation, statements with respect to the future financial position, business strategy, budgets, projected
costs and plans, objectives of or involving Pace or any of its respective affiliates; access to credit facilities; capital taxes;
income taxes; commodity prices; administration costs; commodity price risk management activities; expectation of future
production rates and components of cash flow and earnings. Actual events or results may differ materially. The
projections, estimates and beliefs contained in such forward-looking statements are based on management's estimates,
opinions and assumptions at the time the statements were made including assumptions relating to the production
performance of Pace’s oil and gas assets, the cost and competition for services throughout the oil and gas industry in
2012 and beyond and the continuation of the current regulatory and tax regime in Canada, and necessarily involve known
and unknown risks and uncertainties which may cause actual performance and financial results in future periods to differ
materially from any projections of future performance or results expressed or implied by such forward-looking statements.
Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those
predicted. Pace does not undertake to update any forward-looking information contained in this presentation whether as
to new information, future events or otherwise except as required by securities rules and regulations. Barrels of Oil
Equivalency: Barrels of oil equivalent (BOE's) may be misleading, particularly if used in isolation. In accordance with NI
51-101, a BOE conversion ratio for natural gas of 6 Mcf:1 bbl has been used, which is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
PACE OIL & GAS | AUGUST 2012 UPDATE 2

3. Corporate Highlights
Current – June 30, 2012
Basic Shares Outstanding (mm) 47.0
FD Shares Outstanding (mm) 50.6
Bank Debt (mm) $200
Net Debt (mm) $211
Credit Facility (mm) (1) $300
Proved Reserves (mmboe) (2) 44.4
2P Reserves (mmboe) (2) ~50% Oil 69.6
2012
Q2 YTD Outlook
Oil & NGLs (bbls/d) 6,784 ~ 6,700
Natural Gas (mmcf/d) 44.3 41 - 44
CapEx 2012 (mm) 55.4 ~ $80
Production Mix ~ 48% Oil ~ 50% Oil
1. Banking syndicate - CIBC, NBF, BMO, BNS, HSBC, ATB – renewed June 2012
2. Reserves December 31, 2011 evaluated by McDaniel & Associates Consultants Ltd.
PACE OIL & GAS | AUGUST 2012 UPDATE 3

4. Corporate Strategy
 Exploit and develop existing oil resource inventory
Near Term (1-2 years)  Divest non-core assets, reduce leverage & generate free
Oil Focused – maintain Gas option cash flow
 Identify new oil resource plays/concepts
 Engineered oil enhancements – Waterflood/ASP
Mid Term (2-4 years)  Acquire strategic synergetic opportunities
Advance Oil add Gas/Liquids  Expand resource opportunity base
 Full scale development of resource assets
Long Term (5+ years)  Apply technology to enhance recovery and production
Balanced Oil & Gas/Liquids
 Monitor and identify the key innovative technologies
PACE OIL & GAS | AUGUST 2012 UPDATE 4

5. Low Finding Costs with Strong Oil Additions
90 90
2011 2010
WFE 80 LEG
80
70 70
BNE 60
60
LEG
TP F&D ($/boe)
CKE
TP F&D ($/boe)
50 TT 50
POU
PBN CPG
40 CPG 40
PXX WFE
NVA POU
30 PBN
30 BTE
NGL PGF
CQE CLT NVA PGF BNE
TOU ARX CLT TET PXX
20 PRQ PCE 20 TT ARX NGL BXE CKE
BTE PCE
BIR
AAV
BXE AAV PRQ TET
BIR TOU
10 10
0 0
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
% TP Oil & NGL Additions % TP Oil & NGL Additions
Below line = high recycle ratios
Oil weighted adds delivered “Best in Class” recycle ratios
* Data from Canoils
PACE OIL & GAS | AUGUST 2012 UPDATE 5

6. Top Quality Reserves – Oil Weighted
30
PDP Oil & NGLs
25
20
 Large and growing oil
15 reserves are low risk
Proved Developed
mmbbls
10
5
-
Producing
100%
Value Oil % of TP
80%
60%
 Large Proved Developed
40% Producing is increasingly
20% oil weighted
0%
50%
Base Decline %
40%  Large legacy oil pools -
30% existing waterflood &
20%
EOR potential are
10%
0%
platform for low base
decline now and future
* Data from Canoils
PACE OIL & GAS | AUGUST 2012 UPDATE 6

7. Significant Upside & Visible Long Term Growth Areas
Key Attributes
 Large and growing oil opportunity base
 Matziwin - new resource development area
Play Type Project Gross Net Wells
Capital Operated
MM$ Wells
Southern Pekisko $35 13 12.4
Alberta Glauconite
Lithic
Waterflood
Dixonville Montney C $15 - -
Waterflood
Red Earth Slave Point $2.5 - -
Northwest Pekisko $15 4 4
Alberta
Total Oil $67.5 17 16.4
Deep Basin $2.5 - -
Matziwin
Land, $10 - -
Seismic, G&A
other
Grand Total $80 17 16.4
 Balance of 2012 CapEx funded by Cash Flow
 2012 CapEx directed towards oil program
PACE OIL & GAS | AUGUST 2012 UPDATE 7

8. Southern Alberta Multi-Zone Oil Potential
 325,000 net acres land
 Multiple prospective oil zones
Pace
Matziwin  Extensive oil drilling inventory
- Matziwin 60-100 locations
- SAB Glauc/Lithic 50 locations
Pace  Well cost: $1.7 to $2.5 MM
SAB Glauc/Lithic
 EUR per well: 80 to 150Mboe
 Oil gravity: 15 – 30 API
Pace Land
Current Pace Key
Oil Zones
PACE OIL & GAS | AUGUST 2012 UPDATE 8

9. Matziwin Pekisko – New Resource Development Area
Resource
 65,000+ net acres – 100% working
interest
 20-28º API oil gravity
 60 – 100 net well locations
 160 acre well spacing – may be
downspaced
 Limited regional aquifer identified at
Matziwin
Current Activity/Future Plans
 5 Hz wells drilled to date
 20 – 25 wells planned for 2012 – 2013
 Step out delineation & reservoir
characterization
Pace Wells
 Design and install oil handling
Industry Pekisko Wells
facilities
Pace Land
PACE OIL & GAS | AUGUST 2012 UPDATE 9