INSIGNIA ENERGY LTD. CORPORATE DIVESTITURE INSIGNIA ENERGY LTD. CORPORATE DIVESTITURE CIBC Capital Markets 9th Floor, ... • 20+% decrease in DCET costs with pa d …

CONFIDENTIAL

CORPORATE DIVESTITURE

INSIGNIA ENERGY LTD.


CIBC Capital Markets9th Floor, Bankers Hall East855 – 2nd Street SWCalgary, Alberta T2P 4J7

CONFIDENTIAL


1

CIBC Capital Markets (“CIBC”) has been retained by Insignia Energy Ltd. (“Insignia” or the “Company”) as its exclusive advisor to solicit and evaluate proposals for all of the corporate assets

Opportunity Highlights

• February production of ~2,400 boe/d + 200 boe/d currently shut in:− Pouce Coupe: ~1,878 boe/d− Caroline: ~325 boe/d, Other: ~200 boe/d

• Significant tax pools of over $240 MM• Corporate LMR rating of 2.98• Minimal current net debt of less than $8.5 MM, one major shareholder• No major expiry issues allowing companies to develop at their pace• Lightly booked assets provide significant growth opportunities in both

production and reserves with over 580 net locations (only 5% booked)

Company with significant

upside potential and a Clean Balance

Sheet

• Pouce Coupe land base located within the overpressured window, directly offsetting prolific horizontal Montney development− Recent Birchcliff tests have shown very strong results

• High working interest (77%) Montney rights predominantly within the liquids rich gas and oil windows

• Significant upside potential for growth with ~148 net unbooked locations targeting the Montney− Large growth potential with multiple exploitable Montney horizons

identified

Substantial Montney

Development Opportunity

• High-quality land base with multi-zone potential and significant offsetting development

• Pouce Coupe (296 net locations)− Montney (159 net locations): Lower and Middle Montney locations− Doig (108 net locations): Upper and Lower Doig channels provide an excellent

low risk multi-zone opportunity▪ Repeatable Upper Doig play - achieved 100% success rate on recent six

well drilling program− Charlie Lake (29 net locations), strong recent wells by Tourmaline and

Longshore• Caroline (287 net locations)

− Area provides a high working-interest (94%) multi-zone opportunity within the Mannville (Glauconitic, Ostracod and Ellerslie), Cardium and Viking

Additional Upside with

Multiple Proven Prolific

Horizons

• 20+% decrease in DCET costs with pad drilling and improved completion techniques

• Increased well productivity with longer laterals and fracing improvements• Extensive existing gathering system with firm capacity at Spectra in the Pouce

Coupe area • Current facility utilization allows for significant near-term production growth

with minimal near-term infrastructure spending• Egress to be expanded by TCPL in 2018, in time for growth

Cost Reduction and Technology

Advances; Access to Area Infrastructure

CONFIDENTIAL


2Offering Overview

Land, Production and Reserves Summary3

1 Field estimate2 GLJ December 31, 20163 Working interest numbers have been rounded

Corporate Asset Overview Multi-Zone Opportunity

Catchment

Net Company Land Summary February 2017 Production1 P+P Reserves2

W.I. Total Developed Undeveloped Gas Liquids Total Volumes BTNPV10

(%) (acres) (acres) (acres) (Mcf/d) (bbl/d) (boe/d) (Mboe) ($MM)

Pouce Coupe 72 21,675 12,242 9,433 9,075 365 1,878 15,263 $65.4

Caroline 82 27,513 7,345 20,168 1,800 25 325 3,899 $16.2

Other 62 71,342 35,837 35,505 600 100 200 391 $2.5

Total 67 120,530 55,424 65,106 11,475 490 2,403 19,553 $84.1

Pouce Coupe

Caroline

CONFIDENTIAL


• Proximal Birchcliff wells recently tested at 1,495 boe/d

• 200+ wells rig released in area:

• ~75% Montney (minor Doig), 25% Charlie Lake

• High interest area for both development and land acquisition

• Lands offset a large number of active top Montney players

• Results to-date encourage continued development

• Recent Upper Doig exploration achieved 100% COS on six wells

3Pouce Coupe – Area Overview

Asset Map

Drilling Inventory

• Attractive contiguous land base providing opportunity for highly prospective multi-zone production • February production of 1,878 boe/d with an additional ~200 boe/d shut in• Pouce Coupe land base within well established and highly productive Montney fairway with additional

secondary Upper and Lower Doig opportunities• Additional Charlie Lake potential over the acreage with significant development offsetting to the east• Light oil and liquids-rich gas production expected over bulk of the lands

Activity

Pouce Coupe

Knopcik

MNTN/DOIGp

MNTN/DOIGDevelopment

Montney/DoigDevelopment

Charlie LakeDevelopment

Highly Active Area with Prolific Reults

1 GLJ December 31, 2016

Booked1Unbooked Total

Montney 10.9 148.2 159.1

Doig 7 101.2 108.2

Charlie Lake 0 28.6 28.6

Total 17.9 278 295.9

FormationNet Inventory

CONFIDENTIAL


4Pouce Coupe - Montney

• 23 net sections of high working interest (~77%) Montney acreage primarily within the wet gas window with additional oil development opportunities

• Potential for NW-SE Lower Montney turbidite development over large portion of prospective lands creating excellent reservoir conditions and potential

• Large unbooked inventory of 212 gross (159 net) locations provides significant upside potential for third parties

• In excess of 300 Bcf OGIP to be captured with no major expiries allowing third parties to develop at an optimal pace

Asset Map

Drilling Inventory Stratigraphic Potential


11W6/0 from

Birchcliff recent test:878 boe/d (80% oil) from

100/02-15-078-11W6/0 from “D2” oil zone

(Middle Equivalent)

Birchcliff recent test:1,611 boe/d (18% condy)

from 100/03-13-079-12W6/0 from “D1” gas zone(Lower Equivalent)

Lower Montney100/14-14-078-09W6/0Cal-IP180Max: 734 boe/d

RR: 2016 Kelt

Lower Montney103/09-27-078-12W6/0Cal-IP180Max: 863 boe/d

RR: 2014 Birchcliff

Middle MontneyMiddle Montney102/08-18-078-11W6/0

Cal-IP180Max: 1,005 boe/dRR: 2015 Kelt

Upper MontneyUpper Montney100/13-32-077-11W6/0Cal-IP180Max: 702 boe/d

RR: 2010 Kelt


Upper Montney 0 61.4 61.4

Middle Montney 0 45.4 45.4

Lower Montney 10.9 41.4 52.3

Total 10.9 148.2 159.1


Lower Montney

Upper MontneyUpper MontneyMiddle Montney

date:2.3 Bcf+246Mbbl Cum.to-date:2.3 Bcf+246Mbbl 103/14-29-078-11W6/0 RR:

2013 Birchcliff(Lower Equivalent)

CONFIDENTIAL


5Pouce Coupe - Doig

• 28 net sections of Upper and Lower Doig potential with a significant continuous land base of high working interest (70%)

• Large un-booked inventory of 108 net locations providing significant upside potential for third parties• Immediately offsetting oil and gas production by CNRL, TAQA, Birchcliff, Surge (south) and Kelt with Halfway

oil and gas production considered to be Upper Doig equivalent• No major expiries allowing third parties to develop at an optimal pace• Highly Repeatable Play: Company achieved 100% chance of success on six recent Upper Doig wells

Asset Map

Drilling Inventory Stratigraphic Potential



Upper Doig 1.5 35.8 37.3

Lower Doig 5.5 65.4 70.9

Total 7 101.2 108.2


Lower DoigLower Doig Gas102/01-17-077-11W6/0Cal-IP180Max: 793 boe/d

RR: 2010 TAQA

Upper Doig Oil100/15-01-079-11W6/0Cal-IP180Max: 682 boe/d

RR: 2013 CNQ

Lower Doig Gas100/02-27-077-11W6/0Cal-IP180Max: 774 boe/d

RR: 2008 Insignia

Lower DoigLower DoigUpper DoigUpper Doig


RR: 2014 InsigniaUpper Doig Oil

100/01-06-079-10W6/0Cal-IP180Max: 383 boe/d

RR: 2014 Insignia


RR: 2014 Insignia


RR: 2014 Insignia

Upper Doig OilUpper Doig Oil100/13-30-077-10W6/0Cal-IP180Max: 153 boe/d

RR: 2014 Insignia

Upper Doig OilUpper Doig Oil100/13-34-077-10W6/0Cal-IP180Max: 188 boe/d

RR: 2014 Shiningstar

CONFIDENTIAL


6Pouce Coupe – Charlie Lake

• Opportunity for oil and gas potential• Area shows ongoing development predominantly to the east of company lands with potential existing

throughout company lands• Significant regional development of the play in recent years shows westward movement of the trend towards

Insignia lands• Attractive opportunity for third parties to pursue in conjunction with Montney/Doig development

Asset Map

Stratigraphic PotentialDrilling Inventory


100/11-12-077-10W6/0RR: 2017/01 Longshore

100/16-14-077-08W6/0Cal-IP180Max: 1,564 boe/d

RR: 2015 Tourmaline


Charlie Lake 0 28.6 28.6

Total 0 28.6 28.6

Net InventoryFormation

100/08-21-077-08W6/0RR: 2017/02 Tourmaline

102/16-22-077-08W6/2RR: 2017/01 Longshore

100/01-04-077-08W6/0RR: 2017/01 Tourmaline

100/11-11-078-08W6/0RR: 2016/11 Tourmaline

100/05-09-078-08W6/0RR: 2016/10 Tourmaline

100/12-09-078-08W6/0RR: 2016/10 Tourmaline

100/13-09-078-08W6/0RR: 2016/11 Tourmaline

100/05-16-078-08W6/0Cal-IP180Max: 107 boe/dRR: 2015/11 Tourmaline

102/08-16-076-08W6/0RR: 2017/01 CNRL

100/13-21-078-08W6/0Cal-IP180Max: 455 boe/dRR: 2014/11 Birchcliff

CONFIDENTIAL


7Pouce Coupe – Cost Reductions, Technological Advancements and Infrastructure

• Pipeline and compression gathering system infrastructure designed to gather production at 1-19-77-10W6• Available nearby processing capacity at Spectra, TAQA, CNRL and Birchcliff facilities• Excess available capacity at 1-19 compressor: Currently at 50% of 12 MMcf/d available• Insignia holds 4 MMcf/d firm service at Spectra Gordondale East plant and currently utilizing 3 MMcf/d interruptible

processing capacity• TCPL on schedule to expand area take-away capacity in 2018

– Insignia has committed to additional 2 MMcf/d transportation service

Pouce Coupe Infrastructure Map

$3,656

$4,692

$4,630

2016

2015

2014

Montney Drill+ Complete Costs (~1600m Lateral)

• Development is moving away from exploration to a development phase with multi-well pad drilling programs– Costs are reduced as rig time is maximized by eliminating costly rig moves– Operators are beginning to deploy manufacturing style techniques whereby

wells are drilled sequentially across a pad; the rig gets skidded back and forth for each operation (build section, lateral, etc) in order to minimize down time

• Structural changes to completions have come by using water or slickwater instead of costly gels or oil based fluids– Lateral lengths of wells increasing, thus decreasing cost for resource accessed

• Many Montney operators have been moving to cased-hole completions with perfclusters as they can lead to tighter frac spacing, and more effective fluid placement, leading to increased rates and EUR’s

Recent Cost Reductions and Technological Advancements

CONFIDENTIAL


8Caroline

• Continuous high working interest of 83% representing a large land base of 43 net sections within the Caroline region of southern Alberta and current production of ~350 boe/d

• Moderately active area since beginning of 2015 with activity centered around the Garrington and Ferrier fields • Multi-zone oil and gas opportunities from the liquids-rich Mannville, Cardium, and Viking

• Extensive mapping of stringer sands provides additional upside within the Mannville • Large inventory of >250 undrilled locations primarily un-booked offering third parties significant upside

growth potential• P+P reserves of ~3,900 Mboe

Asset Map & Area Activity

Drilling Inventory

Producing Formations

Stratigraphic Potential

Harmattan

Ricinus

Caroline



Glauconite 7.7 129.5 137

Ostracod "D" 0 80.8 80.8

Ostracod "C" 0 69.1 69.1

Total 7.7 279.4 287.1

Net InventoryFormation

CONFIDENTIAL


ProcessCIBC has been retained by Insignia as its exclusive advisor to solicit and evaluate proposals for a Corporate Divestiture of all of the company’s assets.It is the intention of Insignia and CIBC to conduct the process such that it minimizes any disruption to Insignia’s operations. Interested parties should not contact Insignia directly regarding any aspect of the process. All communications, enquiries and requests for information relating to the process should be directed to one of the CIBC individuals listed herein.Signed CAs should be forwarded by email or courier to CIBC. Once a CA has been executed, confidential information will be made available to qualified parties via a Virtual Data Room (“VDR”). Process timeline will be communicated to the counterparties upon executing of a CA.

Key Contacts

Process Overview 9

CIBC Capital Markets9th Floor, Bankers Hall East

855 – 2nd Street SWCalgary, Alberta T2P 4J7

Fax: (403) 260-0524

Investment Banking Acquisitions & Divestitures

John PeltierExecutive DirectorTel: (403) 260-8646

[email protected]

Ashley EngbloomDirector

Tel: (403) [email protected]

Dan RaffinSenior Engineer


Doug AshtonChief Engineer


DisclaimerThis document is confidential and has been prepared by CIBC Capital Markets. In preparing this presentation, CIBC Capital Markets has relied without any independent verification on information provided or that is publicly available. The information and any analyses in this document are preliminary and is not intended to constitute a “valuation,” “formal valuation,” “appraisal,” “prior valuation,” or a “report, statement or opinion of an expert” for purposes of any securities legislation in Canada or otherwise. We are not legal, tax or accounting experts and we express no opinion concerning any legal, tax or accounting matters or the sufficiency of this document for your purposes. Prospective counterparties are responsible for their own due diligence investigation in respect of any investment or joint venture in the assets described herein. This printed document is incomplete without reference to discussions and any related written materials that supplement it. These materials are confidential and are intended solely for your benefit and for your internal use only and may not be reproduced, disseminated, quoted from or referred to in whole or in part at any time, in any manner or for any purpose, without obtaining the prior written consent of CIBC Capital Markets in each specific instance. CIBC Capital Markets employees are prohibited from offering to change or otherwise influence any research report, rating or price target to any company as inducement for the receipt of any business or compensation. This document does not constitute an offer or solicitation to buy or sell any securities in any jurisdiction where such would be prohibited. CIBC World Markets Inc. is a legal entity name. CIBC Capital Markets is a trademark brand name under which different legal entities provide different services under this umbrella brand. Products and/or services offered through CIBC Capital Markets include products and/or services offered by the Canadian Imperial Bank of Commerce, the parent bank of CIBC World Markets Inc. and various other subsidiaries of the Canadian Imperial Bank of Commerce. Services offered by the Canadian Imperial Bank of Commerce include corporate lending services, foreign exchange, money market instruments, structured notes, interest rate products and commodities, equity options and OTC derivatives. Canadian exchange-traded equity options are executed through CIBC World Markets Inc. Equity and fixed income securities are executed through CIBC World Markets Inc. and other directly or indirectly held subsidiaries of CIBC. CIBC World Markets Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. CIBC World Markets Corp. is a member of the Financial Industry Regulatory Authority. CIBC World Markets plc is regulated by the Prudential Regulation Authority and Financial Conduct Authority. CIBC World Markets Securities Ireland Limited is regulated by the Central Bank of Ireland. CIBC Australia Ltd is regulated by the Australia Securities and Investment Commission. CIBC World Markets (Japan) Inc. is a member of the Japanese Securities Dealer Association. Canadian Imperial Bank of Commerce, Hong Kong Branch, is a registered institution under the Securities and Futures Ordinance, Cap 571. Canadian Imperial Bank of Commerce, Singapore Branch, is an offshore bank licensed and regulated by the Monetary Authority of Singapore. All values are expressed in Canadian dollars, unless otherwise noted.

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INSIGNIA ENERGY LTD. CORPORATE DIVESTITURE INSIGNIA ENERGY LTD. CORPORATE DIVESTITURE CIBC Capital Markets 9th Floor, ... • 20+% decrease in DCET costs with pa d …