Short presentation on Heritage Royalty's prospect areas.

1. Palliser Block

2. Play Summary
• Zone: Glauconite/Ellerslie/Pekisko
• Play: Oil in the Glauconite/ Ellerslie/Pekisko. Oil
production in adjacent pools.
• Thickness: 3-4 meters
• Porosity: 9-20 %
• Oil API: 21-26
• Analog: CVE 7D ALDSON 7-12-18-11 cum to date
82,438 bbls.
• Infrastructure:
• Natural gas infrastructure c/w gas plant in 18-
11W4M.
• Several oil processing facilities in the area.
• Seismic: Extensive seismic available in data room
viewing
• Additional Potential: Glauconite/Ellerslie/Pekisko
Regional Setting
Area Map
Strat Column
T17/18 R11W4 (Palliser Block), Prospect Area
07-31-17-10W403/13-32-17-11W4 02/16-13-17-10W4
Pekisko
Ellerslie
Glauconite
Cross-Section A-A’
T18
T17
R11W4
Ellerslie
Horizontals
Glauconite
Horizontals
Pekisko
Horizontals
A
A’

3. Play Summary
T18 R11W4 (Palliser Block), Glauconite Prospect
• Zone: Glauconite Channel sands
• Play: Oil in the Glauconite channels. Oil
production in adjacent pool.
• Thickness: 10 meters
• Porosity: 9%
• Oil API: 21.7
• Analog: CVE 8C ALDSON 8-24-18-11 cum to date
91,659 bbls.
• Reservoir:
• Typically low WC (< 50%).
• Typical GOR 2000 to 3000 scf/bbl.
• Seismic: Extensive seismic available in data room
viewing
• Additional Potential: Ellerslie/Detrital/ Pekisko
T 18
R 11W4
91,659 bbls OIL
0.18 Bcf Gas
192,359 bbls wtr
08/2016
16,672 bbls OIL
0.14 Bcf Gas
29,955 bbls wtr
08/2015
10.5
13.0
1.5
2.0
0.0
1.0
0.0
MUD PLUG
Channel Outline
based on
seismic/Geology
Oil show
Regional Setting Glauconite Channel Reservoir
Area Map
Strat Column Type Log
Production Curve
Potential Horizontal
CVE 8C ALDSON 8-24-18-11
02/10-22-18-11W4
Coal
Glauc Regional
Ellerslie
Glauc Channel

4. Play Summary
T17 R11W4 (Palliser Block), Ellerslie Prospect
• Zone: Ellerslie sands
• Play: Oil in the Ellerslie. Oil production in
adjacent pool.
• Thickness: 5 meters
• Porosity: 9%
• Oil API: 21.7
• Analog: CVE 7D ALDSON 7-12-18-11 cum to date
82,438 bbls.
• Reservoir:
• Typically medium but stable WC (50% to 70%).
• Typical GOR < 1000 scf/bbl.
• Seismic: Extensive seismic available in data room
viewing
• Additional Potential: Glauc/Detrital/Pekisko
Regional Setting
Strat Column
Cross-Section A-A’
07-31-17-10W403/02-25-17-11W4
Ellerslie
Production Curve
CVE 7D ALDSON 7-12-18-11
Ellerslie Reservoir-Area Map
T18
T17R 11W4
0
0
0
0
5
5
5
5
A
A’
Potential Horizontal

5. Play Summary
Play Summary
Zone: Regional Glauc, marginal marine sands.
Play: Potential Oil in the structural lows (downdip from 8-22 gas). Oil shows in the 6-14 and 10-15-22-18W4 wells.
-Thickness: 3m Pay
-Porosity: 20%
-Oil API: 20 to 30
HZ 04/12-2-20-16W4 Analog Cumulative Production = 44,011 Bbls since 2014.
Infrastructure: Extensive infrastructure in the Palliser region.
Seismic: Used to determine structural lows which are often related to Devonian salt dissolution.
Additional Potential: Stacked regional Glauconite marginal marine sands, and Lower Mannville BQ channels.
14-22-18W4 (Palliser Block), Regional Glauconite Prospect
MERGE P174039 CROPPED
11
5
8 10
4
14
17
21
24
3 1
13
22
9
16
23
12
2
20
15
22-18-W4
-5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5
5
5
5
-372
-369
-374
-362
-367
-359
-372-359
-384 -372
-383
-364
-376 -369
-364
-357 -376
-376
-372
-366
-366
-365
-376
-362
-366-376
-369
-358
-369
-366
Regional Setting Regional Glauc Net Reservoir (12% Cutoff)
Glauc Coal Residual StructureStratigraphic Column
T22
R18R19
Regional Glauc Production Example (HZ 04/12-2-20-16W4)
T22
-Glauc
-BQ
-Pekisko
-Banff
-Nisku
Oil Production
By Zone
10-15-22-18W4
Regional Glauconite
6-14-22-18W4 (Oil Show)
A
A
A’
A’