SATURN OIL & GAS INC. CORPORATE PRESENTATIONsaturnoil.com/media/pages/invest/presentations/... · 3 Corporate Profile –TSX.V: SOIL TSX.V: SOIL I FRA: SMK FINANCIAL Shares Outstanding

SATURN OIL & GAS INC.

CORPORATE

PRESENTATIONTSX.V: SOIL

FEBRUARY 2020

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Saturn’s Mission Statement

TSX.V: SOIL I FRA: SMK

“Saturn aims to lead the oil industry in both executional excellence and corporate stewardship.

Our focus will remain to maximize shareholder value in the context of Saturn being at the forefront of what

it means to be a Corporate Citizen.”

John Jeffrey, CEO

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Corporate Profile – TSX.V: SOIL


FINANCIAL

Shares Outstanding 234.6 M

Options 32.3 M

Warrants 63.6 M

Insider Ownership (FD) 9%

Market Capitalization (@$0.16/sh CAD) $38M CAD

Revolving Note Facility Borrowing Capacity $20M USD

Taxable Loss Carry-Forwards $11.6 M CAD

(1) 2019 Forecast curve assumptions (CME Futures Dec 1, 2020): WTI US$58.61/bbl, US$-6.55 light oil differential, 0.7501 USD/CAD, Realized Price CAD$65.74/bbl(2) See Disclaimer “Information Regarding Disclosure on Oil and Gas Operational Information and Non-IFRS Measures”.(3) As per 2018 YE independent reserve evaluation by Ryder Scott effective December 31, 2018

OPERATIONAL

Current Production (Jan 2020) ~900 bbls/d

% Light Oil 100%

2019 Production Exit Rate +1,200 bbls/d

% Light Oil 100%

2019 Forecast Netback Components(1,2)

Realized Price ($/bbl) $65.74

Opex + transportation ($/bbl) ($9.50-$11.00)

Royalties ($/bbl) ($2.00-$3.00)

Field Netback ($/bbl)(1,2) ~$52.55

2P Reserves (3) 4,554,972 bbls

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New management team & strategy

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Saturn

S&P/TSX CappedEnergy

S&P/TSX CappedComposite

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Health, Safety & Environment


Safety and care for the environment are about more than compliance, they are the foundation of our

value chain that leads to a more sustainable future

Safety CultureSaturn is committed to protecting the health and safety of employees, contractors, stakeholders and the public through proper policies, procedures, standards and training.

Environmental FocusSaturn is committed to implementing industry best practices to minimize adverse effects on the environment.

Community InvolvementSaturn works where our people live. Our relationships with our community and stakeholders are what allow us to grow.

Our PeopleOur employees are encouraged to promote a culture that focuses on personal and professional development.

Saturn has NO ARO concerns and a LLR of 8.6

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Saturn’s Viking Light Oil Strategy


Acquisition of Quality Assets

Risk MitigationExercising fiscal prudence help upholding a strong balance sheet will position Saturn for profitable growth.

Evolve & ExpandProven assets and calculated execution should allow

Saturn to achieve growth in reserves and production. Saturn has used its extensive operational experience to evaluate properties that meet its exploration and

development criteria.

Shareholder Value CreationSaturn’s growth, execution and experienced management team offer the right combination to facilitate long-term stability and value to shareholders.

2019 Capital Program Designed to Achieve +200% Production Growth(1)

Saturn’s focus has been to acquire quality light oil assets with proven production. The Viking has provided high netbacks

with strong capital efficiencies.

5(1) 2018 annual production averaged 255 barrels of oil per day (“bbls/d). 2019 projected annual production average 763 bbls/d

6TSX.V: SOIL I FRA: SMK 6

OPERATIONS

SUMMARY

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Asset Base – 57.6 Sections (net)


Viking Light Oil Asset Base in West-Central Saskatchewan

PrairiedaleStrong Economics.15 wells on-line

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Loverna2 wells drilled in Q4/2019

Dodsland EastGrowth opportunity

MiltonHigh EUR and infill development

PlatoLow decline production

ColevilleHigh IP, and infill development

VerendryeDe-risked development

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Viking Light Oil Assets

TSX.V: SOIL I FRA: SMK 8

Viking

Viking Light Oil Depth 700-750 mOil Quality 36° - 38° APIWell Spacing 150 mIdentified Inventory(1) +150

Economic Parameters(2)

DCET $1.07 MMIP30 60 - 120 bbls/dEUR 45 - 68 mbblsNPV10 BT +$760,000 CADPayout 1.5 – 2.0 yrs.ROR BT +60%Operating Netbacks(3) $50-$60/bbl

High Netbacks With Modest Capex Generate Significant Cash Flow

(1) See Disclaimer “Identified Inventory”(2) 2019 Forecast curve assumptions (CME Futures Dec 1, 2020): WTI US$58.61/bbl, US$-6.55 light oil differential, 0.7501 USD/CAD, Realized Price CAD$65.74/bbl. Using Prairiedale Viking well for economic parameters.(3) See Disclaimer “Information Regarding Disclosure on Oil and Gas Operational Information and Non-IFRS Measures”

Diagram Source: TORC Oil public disclosures

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Saturn’s Viking Well Type Curve1


Prolonged, Sustained Production at Prairiedale, Coleville & Milton ProvideRepeatable Development Opportunity

Saturn’s ERH Viking Horizontal Type Curve1

(1) See Disclaimer “Type Curve”

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Normalized Time (Months)

SATURN CORPORATE AVERAGE Tier 2 - 20 Mbbls EUR Tier 4 - 32.5 Mbbls EUR Tier 6 - 50 Mbbls EUR Tier 8 - 75 Mbbls EUR

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Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019

Wells Drilled & Forecasted Identified Inventory

Drilled Wells vs. Inventory


Building our platform for growth

Drilling Inventory Growth

• Inventory growth through quality land acquisitions and step out development

• Proven track record in prospect generation

• Delineation drilling at Prairiedale, Milton and Loverna added quality inventory

• Repeatability over all asset areas de-risks growth and allows for strategic expansion

• 71.5 gross (69.5 net) locations(2) with booked 2P reserves

(1) Forecasted drilling inventory growth based on success of planned wells(2) See Disclaimer “Identified Inventory”.

Goal: For every producing well, have

3 more in reserves

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17 wells Drilled in 2019

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Strong Financial & Operating Performance


$-

$5.00

$10.00

$15.00

$20.00

$25.00

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019

Operating Expenses ($/bbl)

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019

Operating Netback ($/bbl)

$-

$500

$1,000

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$2,000

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$3,000

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$5,000

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019

Operating Income ($M)

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$10.00

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$70.00

$80.00

$90.00

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019

Realized Price ($/bbl)

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* *

*

*Q4 2019 numbers are based on unaudited estimates only.

12TSX.V: SOIL I FRA: SMK

PRODUCTION &ECONOMIC PROJECTIONS

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Production Growth


Saturn Oil + Gas Inc. Production Stack (1) (Jan 1, 2018 through Dec 31, 2019)

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2017 2018 2019 Q1/2020 (Projected)

Saturn achieved 2019 exit rate of +1,200 bbls/d

(1) 2018 & 2019 producing day average production rate. Q1/2020 production rate projection based on successful execution of four well program.

+200%2018 v. 2019 Estimated Average

Production

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$36.28

$44.89

$53.84

$62.30 $59.77

$47.34 $49.89 $52.90 $53.89 $52.36 $52.89

$56.26

$(20.00)

$(10.00)

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Jan-19 Actual Feb-19 Actual Mar-19 Actual Apr-19 Actual May-19 Actual Jun-19 Actual Jul-19 Actual Aug-19 Actual Sep-19 Actual Oct-19 Actual Nov-19 Actual Dec-19 Budgeted

Operating Cost & Operating Netback ($C/bbl)

Royalties (C$/bbl) Operating Costs (C$/bbl) Operating Netback (C$/bbl)

Operating Cost and Operating Netback Projections

TSX.V: SOIL I FRA: SMK(1) 2019 Forecast curve assumptions (CME Futures Dec 1, 2020): WTI US$58.61/bbl, US$-6.55 light oil differential, 0.7501 USD/CAD, Realized Price CAD$65.74/bbl. (2) See Disclaimer “Information Regarding Disclosure on Oil and Gas Operational Information and Non-IFRS Measures”. 14

~C$52.55 / bblavg. forecast ‘19 netbacks(1,2)

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Superior Relative Performance (1)

TSX.V: SOIL I FRA: SMK(1) Stifel (GMP) FirstEnergy 15

Attractive Netbacks and Competitive Cost Structure

• Saturn’s disciplined operating expense and low royalties per BOE rank favourably relative to peers

• SOIL maintains the highest cash flow netbacks among the WCSB peer group

Saturn vs. Peers 2020(e) Operating Netback Comparison

Saturn vs. Peers 2020(e) Cash Flow Netback Comparison Saturn vs. Peers 2020(e) Cash Costs

16TSX.V: SOIL I FRA: SMK

CONTACT USCorporate HeadquartersSuite 1000 - 207 9 Ave SWCalgary, Alberta, T2P 1K3Canada

Phone+1 (587) 392-7900

Websitewww.saturnoil.com

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APPENDIX

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Management


The ability to translate vision into reality

John JeffreyChief Executive Officer

• Former CFO and founding partner of Axiom Group. • Strong background in operations and finance with successful track record executing large

international engineering and environmental projects • B. Comm (Economics), MBA majoring in Finance from University of Saskatchewan

Scott NewmanChief Operating Officer

• Former CEO and founding partner of Axiom Group. • Technical, operational and management experience, focused in Saskatchewan • Previously served as an executive and director to a number of private and public oil and gas

exploration companies

Geoff JonesChief Financial Officer

• Previously, Manager of Assurance and Owner Managed Businesses at Virtus Group LLP.• Significant tax expertise advising across a variety of industries including oil & gas, legal,

engineering, residential and commercial construction, farm and industrial manufacturing and computer hardware/software design and manufacturing

• CPA, CA; B. Comm from University of Saskatchewan

Justin KaufmannVP Exploration

• Former Manager of Axiom Group.• Previously held roles of increasing responsibility in management and geology for both private

and public companies, and served as a consultant for Lightstream Resources and Novus Energy • P. Geol (APEGS) and B.Sc. (Geology) from University of Saskatchewan

Stuart Houle VP Engineering

• Over 13 years in oil and gas industry, including roles of increasing responsibility with Husky Energy, Frontier Engineering Corp. and Horizon Resource Management Ltd.

• Strong operational background in construction, drilling, completions, production and facility engineering.

• P. Eng (APEGA) and B.Sc. (Chemical Engineering) from University of Saskatchewan

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Directors


Strong governance combined with operational expertise

John Jeffrey • Chairman of the Board

Scott Newman • Director

Ivan Bergerman

• Graduate of University of Saskatchewan, College of Law• Started career in 2002 practicing primarily general Corporate Commercial, Securities, M&A and Oil & Gas Law with a major

Calgary law firm • Founded Bergerman Smith LLP in 2010; principal practice areas are Public Company Advisory (for companies listed on the TSXV,

TSX, CSE, NASDAQ, NYSE and NYSE MKT LLC), IPOs, Exempt Market Distributions, Corporate Governance, M&A, Corporate Structuring & Restructuring, Financing, Natural Resources, Intellectual Property and General Corporate and Commercial

Simon Akit

• Joined Canaccord Genuity in 2008; currently serves as Managing Director and Global Head of Energy Sales covering Canadian, U.S. and European funds with the firm’s global energy product

• Over 20 years of experience between capital markets and the oil and gas industry including similar roles with BMO Nesbitt Burns (New York), Raymond James and UBS Securities

• Previously was Drilling and Completions Engineer, Drilling Foreman, and Production Operator in various parts of Canada with EnCana

• P. Eng (APEGA), B.Eng. (Mechanical) from McGill University; MBA from Rotman School of Management (University of Toronto)

Calvin J. Payne

• For 40 years, worked in communications tower construction and ownership industry as field construction worker, design engineer and manager in Canada, Saudi Arabia, Australia and US.

• Co-founder and CEO of WesTower Communications, which IPO’d on AMEX in 1990. In 2003, led team to take private and grew it to the largest company of its type in North America, ultimately selling in 2011. Mr. Payne retired from its operations in 2014

• Bachelor of Applied Science from the University of British Columbia, an MBA from the University of Western Australia, Registered as a Professional Engineer in many provinces, states and territories in N. America and Australia

Chris Ryan

• President and CEO for Broadbill Energy Inc. and previously, Director of Midstream for Tundra Energy Marketing Ltd. (“TEML”).• Authored 25 scientific publications, numerous as Research Scientist at the Canadian Light Source Inc. • On the Board of Canadian Crude Quality Technical Association (CCQTA) and is Co-Chair of the Sampling and Frequency Working

Group for the Crude Oil Quality Association (COQA). • Honorary founding member of the Global Institute of Water Security and serves on various CAPP Committees and is a voted

Working Group member of the Canadian Transportation of Dangerous Goods General Policy Advisory Council for Classification

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Reserves - 2018 Year-End Reserves(1)

TSX.V: SOIL I FRA: SMK(1) Reserves based on 2018 YE NI 51-101 independent reserve report by Ryder Scott effective December 31, 2018

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Reserves Category

Light and

Medium Oil Heavy Oil Natural Gas Liquids

Conventional

Natural Gas

Barrels of Oil

Equivalent

Liquids

Ratio(bbls) (bbls) (bbls) (Mcf) (bbls) (%)

Proved

Developed Producing 557,080 - - - 557,080 100

Developed Non-producing - 63,598 - - 63,598 100

Undeveloped 1,285,293 284,632 - - 1,569,925 100

Total Proved 1,842,373 348,231 - - 2,190,603 100

Probable 1,989,976 374,393 - - 2,364,369 100

Total Proved + Probable 3,832,348 722,624 - - 4,554,972 100

Reserves Category0% 5% 10% 15% 20%

(M$) (M$) (M$) (M$) (M$)Proved

Developed Producing 31,354 25,038 21,039 18,353 16,440

Developed Non-Producing 2,231 1,810 1,516 1,307 1,152

Undeveloped 52,767 35,637 24,793 17,598 12,576

Total Proved 86,352 62,485 47,348 37,258 30,169

Probable 103,925 65,381 44,021 31,118 22,727

Total Proved + Probable 190,276 127,866 91,369 68,376 52,896

Net Present Value of Future Revenues Before Income Taxes

Summary of Corporate Reserves

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Cautionary Statements


This presentation is for informational purposes only and is not intended as a solicitation or offering of securities of Saturn Oil & Gas Inc. (“Saturn” or the Company") inany jurisdiction. The material presented is not intended to modify, qualify, supplement or amend information disclosed under corporate and securities legislation ofany jurisdiction applicable to Saturn and should not be used for the purpose of making investment decisions concerning Saturn securities.

Forward-Looking StatementsThis presentation contains "forward-looking statements" including estimates of future production, cash flows and reserves, business plans for drilling andexploration, the estimated amounts and timing of capital expenditures, the assumptions upon which estimates are based and related sensitivity analyses, andother expectations, beliefs, plans, objectives, assumptions or statements about future events or performance (often, but not always, using words or phrases suchas "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimated" or "intends", or stating that certain actions, events orresults “may", "could", "would", "might" or "will" be taken, occur or be achieved). In particular, this presentation contains forward-looking statements pertaining,to the following: the Company's anticipated 2020 land action approval, capital budget and average daily production, production growth, target production rate,forecast netback components, using internal funding to complete future acquisitions; the ability of the Company to maintain its balance sheet strength; type welleconomics and performance; drilling inventory and reserve life index expectations; the anticipated impact of technical advancements on productivity and declinerates and ultimate recoveries; the Company’s strategy to increase recovery factors; the ability of the Company to manage the current oil price environment theCompany’s business strategy (including development, enhancement, acquisition and risk management); capital cost, cost per well, NPV, rate of return and payout.Statements relating to "reserves" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates andassumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. There arenumerous uncertainties inherent in estimating crude oil, natural gas and NGL reserves and the future cash flow attributed to such reserves.

All forward-looking statements are based on Saturn's beliefs and assumptions based on information available at the time the assumption was made. Saturnbelieves that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove tobe correct and such forward-looking statements included in this presentation should not be unduly relied upon. By their nature, such forward-looking statementsare subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated,expressed or implied by such statements. In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions;volatility in market prices for oil; delays in business operations; processing restrictions; blowouts; the risk of carrying out operations with minimal environmentalimpact; industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how theyare interpreted and enforced; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at areasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for,among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrectassessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processingproblems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits ofacquisitions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes;uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programsrelating to the oil and gas industry.

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Oil and Gas Advisories


Forward-Looking Statements, ContinuedThese risks and uncertainties could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements.The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent. Saturnassumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Certain information containedherein have been prepared by third-party sources. The information provided herein has not been independently audited or verified by the Company.

Information Regarding Disclosure on Oil and Gas Operational Information and Non-IFRS MeasuresThis presentation contains metrics commonly used in the oil and natural gas industry, such as “netback”, "field netback per bbl“ and “operating netback per bbl”.These terms are not prescribed by IFRS and do not have standardized meanings or standardized methods of calculation and therefore may not be comparable tosimilar measures presented by other companies and should not be used to make such comparisons. Such metrics have been included herein to provide readers withadditional information to help evaluate the Company’s performance, however, such metrics should not be unduly relied upon. Management uses these oil and gasmetrics for its own performance measurements and to provide shareholders with measures to compare Saturn’s operations over time. Readers are cautioned thatthe information provided by these metrics, or that can be derived from the metrics presented in this presentation, should not be relied upon for investment or otherpurposes.

“Netback”, “Field netback per bbl” and “Operating netback per bbl” are calculated by the Company as operating income divided by production for the respectiveperiod. Management considers field netback per bbl an important measure to evaluate its operational performance as it demonstrates its field level profitabilityper unit of production.

Identified Inventory: This presentation discloses proved and probable drilling locations based on the Company's most recent independent reserves evaluation asprepared by Ryder Scott Company, LP (“Ryder Scott”) as of December 31, 2018. Additional locations above and beyond proved and probable drill locations are basedon Saturn’s review of its current land assets, geological and reservoir parameters that support potential economic development.

Type Curve - Certain type curve disclosure presented herein represents estimates of the production decline and ultimate volumes expected to be recovered over time.Type curves are useful in confirming and assessing the potential for the presence of hydrocarbons, however, such rates are not determinative of the rates at whichsuch wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or long term economics of the relevant well orfields or of ultimate recovery of hydrocarbons. The Viking ERH well type curves Tier 2 – Tier 8 referenced herein reflect the average per well proved plus probableundeveloped crude oil (EUR) for Saturn’s area of operations, as derived from the Company's year end independent reserve evaluations prepared in accordance withthe definitions and standards contained in the COGE Handbook. The type wells are based upon all Saturn producing wells in the area as well as non-Saturn wellsdetermined by the independent evaluator to be analogous for purposes of the reserve assignments. Internal Forecast curves incorporate the most recent data fromactual well results and would only be representative of the specific drilled locations. There is no guarantee that Saturn will achieve the estimated or similar resultsderived therefrom. Readers are cautioned not to place reliance on such rates in calculating the aggregate production or performance of Saturn.

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SATURN OIL & GAS INC. CORPORATE PRESENTATIONsaturnoil.com/media/pages/invest/presentations/... · 3 Corporate Profile –TSX.V: SOIL TSX.V: SOIL I FRA: SMK FINANCIAL Shares Outstanding