MTGP-V06-2012.03.08

Contact Client Relations300, 706 – 7 Avenue SW, Calgary AB, T2P 0Z1T 403.269.3644 E info@canadiandiscovery.com

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Copyright © 2008 Canadian Discovery Ltd. All Rights Reserved.

Reviewer G.D./G.W.

Author S.K./G.W.Project MRHS

Created 06/23/2008

File *.idd

Graphics P.P.

Figure

‘Lower Doig Siltstone’: terminology used in earlier GDGC Montney reports for uppermost unit of ‘type’ Montney, below Doig Phosphatic Zone. This unit is lithologicaly dissimilar from underlying Montney, is more similar to Upper Doig, has a high-gamma, often conglomeratic basal boundary (probable Third Order Sequence Boundary), has been tentatively dated (palynology) as Spathian, and generally may be TST of ‘Doig’ megasequence, with base (?) of Phosphatic Zone as MFS.

3 Montney Play Type Correlation Cross-Section B-B'Hydrodynamics and Regional Facies of the Montney Formation

ekaL nawSsainoM

Doig Phosphatic

Zone

100 m.

D5 Coquina (South of Peace River area only)

‘UPPER’‘Lwr. DoigSiltstone’

‘MIDDLE’

‘LOWER’

BELLOY

MO

NTN

EY

DATUM = BELLOY

Valhalla

≈ 400 km

British Columbia

tesnuSkeerC etnA SturgeonLake S.

SturgeonLake S.

DawsonCreek

D5

D4

D3

D2

B2B1

A

D1

C

D2 Coquina

D1 Coquina

B2Coquina

Coquinal Dolomite(Middle Member)

B1Coquina

4

3

4

4

44

3

Alberta

NW SE

4

TSE

B'B

Distal Shoreface to Offshore Transition, rarely Turbiditic; mainly Siltstone, rare VF Sandstone (”Lower Doig Siltstone”)*Storm-dominated Shoreface,Offshore Transition; C Siltstone to VF Sandstone(Montney Units D1 - D5)

Dolomitized Bivalve Coquinas

Turbidite Complex; M-C Siltstone, rare VF Sandstone (in FourthOrder or Higher Order Sequence)

TSE (Transgressive Surfaceof Erosion)

Third Order Sequence Boundary

Fourth or Higher Order Sequence Boundary

*Terminology of GDGC Montney reports 1994 - 1998

Sequence Boundary(Third Order)

3

4

Shoreface-associated; VF Sandstone to C Siltstone(Montney Units A, B, C)

Turbidite channel, levee and fan complex; C Siltstone to VF Sandstone (at Third Ordersequence boundary)

116°W

116°W

117°W

117°W

118°W

118°W

119°W

119°W

120°W

120°W

121°W

121°W

122°W

122°W

123°W

123°W124°W

58°N

58°N

57°N

57°N

56°N

56°N

55°N

55°N

54°N

54°N

53°N

53°N

52°N

52°N

Lesser Slave Lake

Slave River

Williston Lake

Williston Lake

Zama Lake

Carp Lake

Williston Lake

Margaret Lake

Williston Lake

Utikuma Lake

PEACE RIVER

FRASER RIVER

ATHABASCA RIVER

PINE RIVER

HAY RIVER

PARSNIP RIVER

MCGREGOR RIVER

QUESNEL RIVER

NECHAKO RIVER

NORTH THOMPSON RIVER

FORT NELSON RIVER

BEATTON RIVER

KISKATINAW RIVER

NORTH SASKATCHEWAN RIVER

HALFWAY RIVER

CHILCOTIN RIVER

COLUMBIA RIVER

NATION RIVER

STUART RIVER

CANOE RIVER

WEST ROAD (BLACKWATER) RIVER

KICKING HORSE RIVER

BOW RIVER

CHINCHAGA RIVER

JASPER NATIONAL PARK

BANFF NATIONAL PARK

WILLMORE WILDERNESS PARK

GRANDE PRAIRIE

FORT ST. JOHN

T.90

T.70

R.10W6

116°W

116°W

117°W

117°W

118°W

118°W

119°W

119°W

120°W

120°W

121°W

121°W

122°W

122°W

123°W

123°W124°W

58°N

58°N

57°N

57°N

56°N

56°N

55°N

55°N

54°N

54°N

53°N

53°N

52°N

52°N

Lesser Slave Lake

Slave River

Williston Lake

Williston Lake

Zama Lake

Carp Lake

Williston Lake

Margaret Lake

Williston Lake

Utikuma Lake

PEACE RIVER

FRASER RIVER

ATHABASCA RIVER

PINE RIVER

HAY RIVER

PARSNIP RIVER

MCGREGOR RIVER

QUESNEL RIVER

NECHAKO RIVER

NORTH THOMPSON RIVER

FORT NELSON RIVER

BEATTON RIVER

KISKATINAW RIVER

NORTH SASKATCHEWAN RIVER

HALFWAY RIVER

CHILCOTIN RIVER

COLUMBIA RIVER

NATION RIVER

STUART RIVER

CANOE RIVER

WEST ROAD (BLACKWATER) RIVER

KICKING HORSE RIVER

BOW RIVER

CHINCHAGA RIVER

JASPER NATIONAL PARK

BANFF NATIONAL PARK

WILLMORE WILDERNESS PARK

GRANDE PRAIRIE

FORT ST. JOHNSTUDYAREA

94-B

93-O

93-P

94-A

93-P

93-O

94-A

Stoddart

Monias

Groundbirch

Dawson Creek

Swan Lake

BC AB

Proposed Project Area

IntroductionThe Montney distal shelf (‘tight gas’) play has become one of the hottest natural gas resource plays in the WCSB. Horizontal drilling and multi-stage frac technology have been the key to unlocking the resources and placing the Montney in the top three most economic resource plays in North America.

Industry analysts estimate upward of 5,000 horizontal wells will be drilled in the upcoming decades, with a Capex approaching $30 billion. As these massive investments are being contemplated, many unconstrained factors remain that will impact the economic development of the resource.

Some of the more important geotechnical questions are:

» What are the controls on reservoir development and how do you predict sweet spots? » What is the effective porosity and hydrocarbon saturation? » What is the original gas in place (OGIP) and potential

ultimate recovery?

Study DetailsCanadian Discovery and partners are pleased to announce the launch of the non-exclusive Montney Tight Gas Project.The objective of this study is to define facies types, trends, reservoir characteristics and controls. The project will integrate core, cuttings, petrology, petrophysics, hydrodynamics and production characteristics with a range of analytical data.

A synthesized report will be prepared, aimed at assisting resource exploitation, calculating GIP, and determining the role of pre-Triassic and intra-Montney structure on facies and thickness trends.

Montney Tight Gas Project – Phase IGeology, Petrology, Petrophysics, Hydrodynamics, Productivity

Montney Stratigraphic Cross-Section

MTGP-V06-2012.03.08

Contact Client Relations300, 706 – 7 Avenue SW, Calgary AB, T2P 0Z1T 403.269.3644 E info@canadiandiscovery.com

www.canadiandiscovery.com

CanadianDiscoveryLtd.

100 µm

Shoreface ‘A’

Offshore HCS, ‘D’

Turbidite ‘C’

Distal Turbidite

WEST EAST

FronterraGeosciences

Deliverables

Geology » Sequence stratigraphic framework and cross-section grid » Facies models and detailed core logs » Selected litho-logs based on drill cuttings » Isopach and structure maps » Net reservoir maps

Petrology » Organic petrology (clarify bitumen/pyrobitumen issues and source

implications) » Thin-section analysis » Selected TOC, XRD and SEM analysis » XRF elemental scan of selected core and cuttings » Burial history

Petrophysics » Develop petrophysical model for effective porosity prediction » Selected answer logs » OGIP maps

Montney Reservoir Facies, Regional Grain Size - Sorting Gradient

Geophysics » Regional sequence stratigraphy, integrated into seismic model

Hydrodynamics and Productivity » Pressure data correlated to sequence stratigraphic framework » Continuity analysis » Fluid chemistry analysis » Selected horizontal well productivity analysis with well trajectories

plotted to stratigraphic framework

Report & Workshops » Illustrated technical report (hard copy and PDF) » Databases » GIS maps » Core seminar - B.C. / Alberta core » Workshops in Calgary: December 1 & 2, 2009