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© 2015 Petroleum Services Association of Canada (PSAC) - Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

2015 Well Cost StudyUpcoming Summer Costs - Published April 30, 2015

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PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Table of Contents

page 1 Introduction

1 Objective

1 Well Information Provided

2 Methodology

3 Summer 2015 Costs

4 Well Summary Table

5 PSAC Area Map

6 Drilling Cost Directory

7 Completion Cost Directory

9 BC1 & BC2 British Columbia

64 AB1 Foothills

86 AB2 Foothills Front

124 AB3 Southeastern Alberta

151 AB4 East Central Alberta

176 AB5 Central Alberta

208 AB6 Northeastern Alberta

221 AB7 Northwestern Alberta

253 SK1 Central Saskatchewan

281 SK2 Southwestern Saskatchewan

306 SK3 Eastern Saskatchewan

325 MB Manitoba

Well cost data and consulting by N.L. Fisher Supervision & Engineering Ltd.

Schematics by Weatherford Completion Systems

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1PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

The semi-annual PSAC Well Cost Study has been produced by the Petroleum Services Association of Canada (PSAC) since

1981. N.L. Fisher Supervision & Engineering Ltd. is the official supplier of all well drilling and completion data estimates

for the Study. PSAC would also like to acknowledge Weatherford Completion Systems for providing the downhole

assembly schematics for each well in the Study.

Drilling and completion well costs are being provided in the 2015 Well Cost Study for a list of 51 wells. This selection of

wells is a reflection of current well types along with previously drilled wells which are left in the study for historical

tracking purposes. This accounts for recent operator interests in developmental and exploratory activity, as well as

horizontal, coil tubing, SAGD and natural gas from coal (NGC) drilling activity.

The wells listed in this study reflect wells drilled in western Canada. Each well has been sorted by PSAC area. A summary

table listing all of the “typical wells”, as well as their location, well status, well type and depth is contained on page 4. Some

of the wells are not included in this year’s study due to inactivity in the area. A PSAC area map is provided on page 5.

Objective

The Well Cost Study is a popular tool used by oil and gas company exploration, drilling and completions personnel for

multiple purposes, some of which include:

• Scoping out typical drilling cost estimates and drilling times in new areas

• Benchmarking and comparing budgeted and actual costs

• General planning or forecasting of activity levels

When used in conjunction with the PSAC Canadian Drilling Activity Forecast, the Well Cost Study can help petroleum

service companies determine potential market sizes for drilling and completion products and services, as well as pricing

and activity direction.

Well Information Provided

The following information is supplied for each typical well:

• Well description with drilling and completion assumptions

• Drill and complete AFE

• Detailed drilling estimate

• Detailed completion estimate

• Downhole assembly schematic

Introduction

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2PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Typical Well

Each typical well is named after a known field or major centre in the general vicinity. Well depths, pool names and

approximate locations are also supplied for terms of reference when proposing drilling and completion parameters.

Due to the multiplicity of variables associated with drilling and completion operations, the typical well cost is an

approximation of current prices, based on the experience of N.L. Fisher Supervision & Engineering.

Assumptions

• The estimates were constructed assuming summer drilling operations and includes pricing obtained from

discussions with various service providers.

• Camps were included in remote locations.

Detailed Cost Estimates

Detailed estimates were prepared based on current pricing in the industry and actual experience in the 51 locations.

Terminology has been adjusted in a few instances to more closely describe costs incurred. Discounts in areas of pad

drilling or large shallow gas drilling can vary and should be treated as such.

At the time of writing, prices of various services are fluctuating. Considering that charges vary from supplier to supplier,

the estimates in this document provide the most up-to-date estimate of prices.

AFE Cost Summary Sheet

Each “typical well” AFE Sheet is a summary of the detailed drilling and completion costs provided.

Data Qualifications

Many factors directly impact drilling and completion costs even within a field or typical area, for example, leases

impacted by weather conditions. Costing is therefore at best speculative and should not be taken to represent “actual”

well costs. However, major services such as drilling rigs often set prices for a four-to-five month period. This pricing has

been incorporated into the Study costs.

Factors that may influence well costs may include, but are not limited to:

• Type and size of company or operation

• Company policy

• Company drilling practices

• Economic environment

• Commodity prices

• Developmental or exploratory target

• Oil or gas play

Methodology

• Sweet or sour production

• Surface conditions

• Well location and nearby infrastructure

• Drilling program

• Mud program

• Evaluation program

• Completion methodology (i.e. dual zones)

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3PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Major goods and services influencing the general direction of drilling and completion costs are as follows:

• Construction

• Trucking/rig moving

• Drilling fluids

• Evaluation/logging

• Cement and cementing services

• Casing

• Drill bits

• Wellsite accommodations

• Rentals

• Fuel

• Land, engineering, supervision and administration

• Completion costs

Summer 2015 Costs

• Service rigs

• Road and site preparation

• Trucking

• Cased hole logging and perforating

• Tubing and attachments

• Stimulation

• Pumping equipment

• Wellheads

• Safety services

• Testing

• Rig rates

• Safety programs

For additional information or comments, please contact:

Peter Cameron, C.E.T.

NL Fisher Supervision & Engineering Ltd.

Tel: (403) 266-7478

Email: [email protected]

Website: www.nlfisher.com

For additional information or comments, please contact:

Mark Salkeld, President

Petroleum Services Association of Canada

Tel: (403) 781-7383

Email: [email protected]

Disclaimer:

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, the Petroleum Services Association ofCanada (PSAC), N.L. Fisher Supervision & Engineering Ltd. and Weatherford Completion Systems accept no liability for the contents of this Study.

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Tuktoyatuk

Whitehorse

Yellowknife

FortNelson

FortSt. John

Vancouver

Edmonton

Calgary

Lethbridge

Saskatoon

Lloydminster

Winnipeg Thunder Bay

Toronto

Ottawa

Montreal

Quebec Halifax

Fredericton

Charlottetown

St. John's

ReginaSwift

Current

FortMcMurray

RedDeer

Victoria

GrandePrairie

NT

YT

BC2

BC1BC3

AB6

AB4

AB5AB2

AB1

SK1 SK3 MB

AB7

ON QC

NL

NS

NB

PE

NU

AB3 SK2

5PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

PSAC Area Map

BC1 Southern British Columbia

BC2 Northern British Columbia

BC3 Coastal British Columbia

AB1 Foothills

AB2 Foothills Front

AB3 Southeastern Alberta

AB4 East Central Alberta

AB5 Central Alberta

AB6 Northeastern Alberta

AB7 Northwestern Alberta

SK1 Central Saskatchewan

SK2 Southwestern Saskatchewan

SK3 Eastern Saskatchewan

MB Manitoba

ON Ontario

QC Quebec

EC Eastern Canada NB New Brunswick

NS Nova Scotia

PE Prince Edward Island

NL Newfoundland & Labrador

NC Northern Canada YT Yukon

NT Northwest Territories

NU Nunavut

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6PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

AFE DRILLING COST ITEM DETAILED DRILLING ESTIMATE SHEET CATEGORY

Well License / OGC Applications License Fees Pre-Drill & PlanningSurface Lease & Survey Lease Acquisition Pre-Drill & Planning

Surveying Pre-Drill & PlanningPreparation & Roads Total Construction Cost - Lease Clean-Up ConstructionCleanup Lease Clean-up Construction

Lease Clean-up Service & SuppliesRig Move Rig Move Rig Contract

Rig Permit Rig Contract Rig ContractDemob / Interwell Move Rig ContractRig-in / Tear-out Labour Rig Contract

Daywork Daywork Rig ContractAdditional Labour Costs Rig ContractStandby Rig Contract

Directional Costs Directional Drilling Services Service & SuppliesBoiler Boiler Rig ContractBits Bits - Surface Hole Service & Supplies

Bits - Intermediate Hole Service & SuppliesBits - Main Hole Service & SuppliesBits - Openhole Service & Supplies

Fuel & Power Fuel Rig ContractFuel Storage Rig Contract

Water Water and Trucking Rig ContractMud & Chemicals Surface Mud and Chemicals Service & Supplies

Main Mud and Chemicals Service & SuppliesMud Logging Service & Supplies

Crew Travel Crew Transportation Rig ContractCamp & Subsistence Crew Subsistence Rig Contract

CSA Extra Crew Rig ContractCoring & Analysis Cores Cut Service & SuppliesDST & Analysis (1 DST) Drill Stem Tests Service & SuppliesLogging Electric Logging Service & SuppliesSurface Casing & access. Surface Casing Casing & Cementing

Attachments and Accessories Casing & CementingTongs Casing & Cementing

Cementing - Surface Cement and Service Casing & CementingIntermediate Casing & access. Intermediate Casing Casing & Cementing

Attachments and Accessories Casing & CementingTongs Casing & Cementing

Cementing - Intermediate Cement and Service Casing & CementingEquipment Rentals Wellsite Trailer(s) Rentals

Sump Pump(s) RentalsSurface Equipment RentalsSolids Control Equipment RentalsHigh Speed Mixer(s) RentalsTank Rental RentalsDownhole Tool Rentals Service & SuppliesGeological Rentals Supervision & Administration

Transportation Trucking and Hauling Service & SuppliesFluid Hauling Service & SuppliesVacuum Truck and Disposal Service & Supplies

Supervision & Consulting Drilling Supervisor Supervision & AdministrationWell Site Geologist Supervision & Administration

In-house Engineering (Drilling) Planning and Programs Pre-Drill & PlanningCommunications Supervision & Administration

Equipment Inspection Inspection and Repair Service & SuppliesWell Insurance Insurance Supervision & AdministrationOther Services (Safety) Safety Service & SuppliesEnvironmental Services Waste Management Service & SuppliesMisc. Costs Welding Service & Supplies

Contingency @ 5%Miscellaneous @ 2%

Overhead Overhead on Subtotal @ 3,2,1Abandonment Cost Abandonment Cement Casing & Cementing

Cement Plug Logging Casing & Cementing

Drilling Cost Directory

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7PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

DETAILED COMPLETION AFE COMPLETION COST ITEM DETAILED DRILLING ESTIMATE SHEET ESTIMATE SHEET

Prod. Csg. & Accessories Production Casing (Casing & Cementing)Attachments and Accessories (Casing & Cementing)Tongs (Casing & Cementing)

Cementing - Production Cement and Service (Casing & Cementing)Tubing & Accessories TubingWellhead Equipment WellheadRemedial Cementing Remedial CementingService Rig Service Rig

BoilerCSACrew Transportation

Logging (cement bond log) Cased Hole LogsSlickline/Wireline (Other) WirelinePerforating Perforating and LoggingStimulation (Frac or Acid) StimulationTesting / Pressure Surveys Production TestGas / Liquid Analysis Fluids AnalysisTransportation Hauling and TruckingEquipment Rentals Surface Equipment Rentals

Downhole Equipment RentalsDownhole Tools (intangibles) Packers, Plugs, RetainersCompletion Fluids Water and Trucking

Completion Fluids and ChemicalsSnubbing SnubbingNitrogen NitrogenInspection / Safety Inspection / SafetyWellsite Supervision Completions SupervisorIn-house Engineering (Completions)Other Services Vacuum Truck

EnvironmentalLease and Road Maintenance

Misc. Costs Contingency @ 5%Miscellaneous @ 2%

Overhead Overhead on Subtotal @ 3,2,1

Completion Cost Directory

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64PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Area AB1 Foothills

AB1A Burmis - Foothills - Alberta Twp 7 Rge 6 W5MAB1B Cutpick - Foothills - Alberta Twp 60 Rge 7 W6MAB1C Cutpick - Foothills - Alberta Twp 60 Rge 7 W6M

Geology

Production is predominantly gas (sour), with varying levels of gas liquids. The principal zones are the Rundle Group of the Mississippian and

Cretaceous Cardium and Viking sands.

Area Highlights

Area AB1 encompasses the eastern slopes and foothills of the Rocky Mountains in Alberta. Wells drilled here are typically vertical and

some of the deepest in western Canada. These wells are technically challenging, and pose both safety and environmental regulatory

compliance issues. Wellsites are often remote from towns and service and supply centres. The cumulative result is that on a dollar-per-

metre basis, this is the generally most expensive area to drill in western Canada.

FortNelson

FortSt. John

r

Edmonton

Calgary

Lethbridge

Saskatoon

Lloydminster

SwiftCurrent

FortMcMurray

RedDeer

GrandePrairie

AB6

AB4

AB5AB2

AB1

SK1

AB7

AB3 SK2

Edson

ProvostSAMPLE

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65PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Oil / Gas Gas

Vertical / Horizontal / Directional D

Critical H2S (Y/N) Y

Target Formation Wabamun

Total Measured Depth (m) 4500

Total Vertical Depth (m) 4000

Oil and Gas Lease (Hectares) 1.6

Freehold or Crown Land (F/C) C

Drilling Fluid Type Invert

Drilling Fluid Hauled for Disposal Y

Drill out of Sump (Y/N) N

Land Spray While Drilling (Y/N) N

Stimulation Y

Estimated BHT ( Degrees C) 150

Estimated BHP (kPa) 35000

Wellhead Capacity (kPa) 35000

Total Days Rig-in to Tear-out 188

Rig Type/Size Triple

Rig Loads 50

Rig Move (days) 4

Rig Transport Distance (km) 150

Rig Crew (# men) 12

Extra Men 1

Rig Fuel (litres/day) 4000

Fuel Cost ($/l) $0.75

Camp Required (Y/N) Y

Camp (# of men) 40

Camp Loads 8

Camp Cost $7,000

Completion Assumptions

Service Rig Size Double

Single or Multi Zone Single

Sweet or Sour Sour

Remedial Cementing Req'd (Y/N) N

TCP / Underbalanced / Csg Guns TCP

Stimulation Required (Y/N) Y

Propped Frac or Acid Acid

Type of Frac N/A

Proppant Size and Tonnage N/A

Flow Test Required (Y/N) Y

Flow Test Duration (days) 8

Pressure Recorders Required Y

Surface Casing Set Depth (m) 600

Surface Casing Spec. 339.7 mm 90.78 kg/m J-55

Intermediate Casing Set Depth (m) 3340

Intermediate Casing Spec. 244.5 mm 79.6 kg/m L-80

Production Casing Set Depth (m) 4500

Production Casing Spec 177.8 mm 43.20 kg/m L-80

Production Casing Cementing Single

Liner Req'd (Y/N) N

Liner Set Depth (m) 0

Openhole Length (m) 0

Tubing Spec. 88.9 mm 13.85 kg/m, J-55 SML

Tubing Set Depth (m) 4300

Packer (Y/N) Y

Packer Set Depth (m) 4300

Packer Type N

Drilling Assumptions

Unit Unit Cost

Move in/Rig up (days) 8 $14,800

Rig - Drilling Days (days) 165 $18,500

Rig - Final Depth to RR (days) 15 $20,125

Rig - Standby Days (days) 0 $14,800

Rig - Total Contract Days (days) 188 $18,500

Horizontal/Dir Drilling Days (days) 100 $9,500

Drilling Rig Boiler Days (days) 0 $1,920

Lease Construction Days (days) 18 $10,000

Survey Days (days) 3 $4,000

Access Road length (km) 5 $5,000

Drill Stem Tests (number) 2 $10,000

Cores Cut (number) 1 $15,000

Service Rig Days (days) 10 6480

Service Rig Boiler Days (days) 0 1000

AB1A Burmis - FoothillsAlberta Twp 7 Rge 6 W5MWell Cost Estimate

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66PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Well License / Applications $500Surface Lease & Survey $14,600Preparation & Roads $343,000Cleanup $162,000

SUB - TOTAL $520,100

Rig Move $444,400Daywork $3,465,000Directional Costs $950,000Boiler $0Bits $130,000Fuel & Power $564,000Water $159,800Mud & Chemicals $346,875Crew Travel $65,800Camp & Subsistence $1,438,200

SUB - TOTAL $7,564,075

Coring & Analysis $15,000DST & Analysis $20,000Logging $33,150

SUB - TOTAL $68,150

Surface Casing & access. $129,300Cementing - Surface $18,000Intermediate Casing & access. $860,050Cementing - Intermediate $73,480

SUB - TOTAL $1,080,830

Equipment Rentals $1,952,310Transportation and Hauling $571,000Supervision & Consulting $432,000In-house Engineering (Drilling) $54,800Equipment Inspection $12,600Well Insurance $18,800Safety $169,200Environmental Services $15,000Misc. Costs $881,800Overhead $126,900SUB - TOTAL $4,234,410

Abandonment Cost $23,100

SUB - TOTAL $23,100

Total D & A Estimate $13,490,665

Total Drill and Case Est. $14,065,815

Prod. Csg. & Accessories $443,250Cementing - Production $112,500Tubing & Accessories $137,600Wellhead Equipment $30,000Remedial Cementing $0Service Rig $75,300Logging (cement bond log) $10,200Slickline/Wireline (Other) $20,400Perforating $25,500Stimulation (Frac or Acid) $68,000Testing / Pressure Surveys $34,000Gas / Liquid Analysis $2,000Transportation $27,000Equipment Rentals $18,700Downhole Tools (intangibles) $38,250Completion Fluids $34,600Snubbing $0Nitrogen $0Inspection / Safety $15,000Wellsite Supervision $17,400In-house Engineering (Completions) $0Other Services $17,300Misc. Costs $40,000Overhead $7,700

Total Casing and Completion Estimate $1,174,700

Total Drill, Case and Complete Estimate $14,684,765

Assumptions include but not limited to:

Oil / Gas Gas

Vertical / Horizontal / Directional D

Critical H2S (Y/N) Y

Target Formation Wabamun

Estimated BHT ( Degrees C) 150

Estimated BHP (kPa) 35000

Single or Multi Zone Single

Sweet or Sour Sour

Total Days Rig-in to Tear-out 188

Drill Stem Tests (number) 2

Cores Cut (number) 1

Surface Casing Set Depth (m) 600

Surface Casing Spec. 339.7 mm 90.78 kg/m J-55

Production Casing Set Depth (m) 4500

Production Casing Spec 177.8 mm 43.20 kg/m L-80

Stimulation Required (Y/N) Y

Propped Frac or Acid Acid

Type of Frac N/A

Proppant Size and Tonnage N/A

Flow Test Required (Y/N) Y

Tubing Set Depth (m) 4300

Tubing Spec. 88.9 mm 13.85 kg/m, J-55 SML

AB1A Burmis - Foothills DRILL AND COMPLETE AFEAlberta Twp 7 Rge 6 W5MWell Cost Estimate

D R I L L I N G C OM P L E T I O NACCT # ACCT #

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67PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

AB1A Burmis - FoothillsAlberta Twp 7 Rge 6 W5MWell Cost Estimate

19

20. Heater String

16. Crossover Sub

17. 88.9 mm Tubing

19. 88.9 mm Tubing as Required

18. Heater String Catcher

15. 60.3 mm Tubing as Required

14. 47.6 mm Landing Nipple

13. 60.3 mm Pup Joint

12. 68.27 mm Locator Seal Assembly

11. 127 mm Permanent Sealbore Packer

10. 68.27mm Sealbore Extension

09. 60.3 mm Sealbore Tail Pipe Adapter

08. 60.3 mm Pup Joint

07. 47.6 mm Landing Nipple

06. 60.3 mm Pup Joint

05. 47.6 mm Landing Nipple

04. 60.3 mm Perforated Pup Joint

03. 47.6 mm No-go Landing Nipple

02. 60.3 mm Wireline Re-entry Guide

01. Nisku/ Leduc Perforations

Proposed Well CompletionAB1-A Burmis - Foothills AB1-A

Wabamun 7-6-W5MWeatherford

Company Reference

Phone Location

Sales Rep

Drawn by Date

Prepared for

Prepared by

Service Centre

DepthThreadGradeWeightSizeTUBULAR

PremiumL-806.99 kg/m60.3mmTubing 2

PremiumL-8013.84 kg/m88.9mmTubing 1

4400mPremiumL-8026.78 kg/m127mmLiner 4500mPremiumL-8043.20kg/m177.8mmCasing 3

3340m8 rd L-8079.6kg/m244.5mmCasing 2

600m8 rd J-5590.78kg/m339.7mmCasing 1

ITEM DESCRIPTION

Casing is perforated and packer/ tail pipe assembly is set on wireline . Seal assembly is run on final completion string

NOTES

This document is confidential correspondence between Weatherford and the Customer named in this document. It may not be reproduced in any formnor its contents disclosed to anyone other than employees of Weatherford and/or the named Customer.

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68PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Predrill and PlanningLease Acquisition 1.6 Hectares $2,600 Surface Lease Entry $2,600 $2,600License Fees 1 Each $500 Per Well Fee $500 $500Surveying 3 Days $4,000 Site and Plan $12,000 $12,000Planning and Programs 200 Hours $180 Engineering and Programming $36,000 $36,000

$51,100 $51,100ConstructionRoad 5 Kms $5,000 Engineering and Construction $25,000 $25,000Location 18 Days $10,000 Engineering and Construction $180,000 $180,000Lease Maintenance 180 Days $500 Labour and Equipment $90,000 $90,000Lease Cleanup 0 Days $10,000 Labour, Materials and Equipment $0 $0Bridges / Culverts / Cattle Guards 6 Each $5,000 Labour and Equipment $30,000 $30,000Standby Equipment 0 Days $550 Grader, Hoe, Cat $0 $0Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000Lease Reclamation 18 Days $8,000 Labour and Equipment $144,000 $144,000Lease Reclamation Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000

$505,000 $505,000Rig ContractRig Move 50 Loads $3,600 $300/hr and 8 hr/100km/load $180,000 $180,000Rig Permit 4 Days $500 As required by area $2,000 $2,000Demob / Inter-well Move 40 Loads $3,600 $300/hr and 8 hr/100km/load $144,000 $144,000Rig-in Set Up Labour 8 Each $14,800 Move in, set up $118,400 $118,400Daywork 180 Days $18,500 Rig rate from Spud to RR w/ drillpipe $3,330,000 $3,330,000Loader 180 Days $500 Rig loader $90,000 $90,000Additional Labour Costs 180 Days $250 Additional crew as required $45,000 $45,000Camp 188 Crew Days $7,000 Camp / hotel including meals etc. $1,316,000 $1,316,000CSA 188 Days $650 Crew Subsistence Allowance $122,200 $122,200Crew Transportation 188 Each $350 Crew Truck, Mileage, Bus or Aircraft $65,800 $65,800Boiler 0 Days $1,920 Basic rate fuel out $0 $0Fuel 188 Days $3,000 Fuel $564,000 $564,000Fuel Storage 0 Days $0 Additional fuel storage $0 $0Standby 0 Days $14,800 Testing, logging, waiting on orders $0 $0Water and Trucking 188 Days $850 Water access and supply $159,800 $159,800

$6,137,200 $6,137,200RentalsWellsite Trailer(s) 4 188 Days $185 Well site Unit rental $139,120 $139,120Sump Pump(s) 1 188 Days $125 Centrifugal pump rental $23,500 $23,500Surface Equipment 1 188 Days $1,800 Garbage bin, Pumps, Pason, Invert acc, etc $338,400 $338,400Solids Control Equipment 2 188 Days $1,375 Cenrtiguge(s), BOS tank etc $517,000 $517,000High Speed Mixer(s) 1 188 Days $675 High speed mixer, pill tank, lines $126,900 $126,900Tank Rental 1 188 Days $205 Floc, Flare, 400 bbl tank etc $38,540 $38,540Downhole Tool Rentals 1 188 Days $3,150 Perf Motors, subs, jars, stabilizers etc $592,200 $592,200Drill string 80 188 Days $10 HWDP, Small inch drillpipe, etc. $150,400 $150,400

$1,926,060 $1,926,060

AB1A Burmis - Foothills DETAILED DRILLING ESTIMATEAlberta Twp 7 Rge 6 W5MWell Cost Estimate

No. of Drilled and Drilled and Operations, Services or Equipment # Units Unit Type Cost Per Unit Comments and Detail Abandoned Cased

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69PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

Service and SuppliesBits - Surface Hole 2 Each $5,000 Bit(s) required to drill surface hole $10,000 $10,000Bits - Intermediate Hole 7 Each $10,000 Bit(s) required to drill intermediate hole $70,000 $70,000Bits - Main Hole 5 Each $10,000 Bit(s) required to drill main hole $50,000 $50,000Bits - Openhole 0 Each $10,000 N/A $0 $0Surface Mud and Chemicals 250 Cubic metre $50 Cost per cubic metre water out $12,500 $12,500Main Mud and Chemicals 500 Cubic metre $475 Cost per cubic metre Invert out $237,500 $237,500Mud Logging 125 Days $775 Daily rate - crew plus costs $96,875 $96,875Drill Stem Tests 2 Each $10,000 Unit, crew, analysis, samples $20,000 $20,000Cores Cut 1 Each $15,000 Equipment, crew, analysis $15,000 $15,000Electric Logging 3900 m MD $9 Cost per m logged all in $33,150 $33,150Environmental Services 0 5 Each $750 Spray field sampling, reporting, etc $0 $0Drilling Waste Management 1 10 Each $1,500 Cost per fluid samples and analysis $15,000 $15,000Safety 188 Days $900 Daily Rate Crew and Equipment $169,200 $169,200Directional Drilling Services 100 Days $9,500 Daily rate all in crews and tools $950,000 $950,000Trucking 188 Days $1,500 Equipment and tool trucking $282,000 $282,000Fluid and/or Cuttings Hauling 1 165 Days $1,600 Fluid hauling other than water $264,000 $264,000Fluid and/or Cuttings Disposal 1 500 Cubic metre $50 Drilling fluid hauled for disposal $25,000 $25,000Vacuum Truck (LSWD) 0 165 Days $1,400 Cost per day for Vac Truck $0 $0Welding 3 Each $2,500 Cost per well $7,500 $7,500Inspection and Repair 3 Each $4,200 Cost per well $12,600 $12,600

$2,270,325 $2,270,325Casing and CementingSurface Casing 600 Metres $205 339.7 mm 90.78 kg/m J-55 $123,000 $123,000Attachments and Accessories 60 Each $25 Scratchers, centralisers, float equip $1,500 $1,500Tongs 600 Metres $8 Crew and Equipment $4,800 $4,800Cement and Service 600 Metres $30 Pumping, tonnage, additives $18,000 $18,000

Intermediate Casing 3340 Metres $250 244.5 mm 79.6 kg/m L-80 $835,000 $835,000Attachments and Accessories 334 Each $25 Scratchers, centralisers, float equip $8,350 $8,350Tongs 3340 Metres $5 Crew and Equipment $16,700 $16,700Cement and Service 3340 Metres $22 Pumping, tonnage, additives $73,480 $73,480

Production Casing 4500 Metres $90 177.8 mm 43.20 kg/m L-80 $0 $405,000Attachments and Accessories 450 Each $25 Scratchers, centralisers, float equip $0 $11,250Tongs 4500 Metres $6 Crew and Equipment $0 $27,000Cement and Service 4500 Metres $25 Pumping, tonnage, additives $0 $112,500

$0 $0Liner 0 Metres $0 N/A $0 $0Attachments and Accessories 0 Each $0 Scratchers, centralisers, float equip $0 $0Tongs 0 Metres $0 Crew and Equipment $0 $0Cement and Service 0 Metres $0 Pumping, tonnage, additives $0 $0Abandonment Cement 2 Plugs $6,300 Pumping, tonnage, additives $12,600 $0Cement Plug Logging 2 Plugs $5,250 Run plug logs, all in $10,500 $0

$1,103,930 $1,636,580Supervision and AdministrationDrilling Supervisor 1 188 Days $1,500 Drilling consultant rate all in $282,000 $282,000Well Site Geologist 1 125 Days $1,200 Geological consultant rate all in $150,000 $150,000Geological Rentals 125 Days $210 Gas detector etc $26,250 $26,250Insurance 188 Each $100 Drilling insurance $18,800 $18,800Communications 188 Days $100 $18,800 $18,800

$495,850 $495,850

Subtotal $12,489,465 $13,022,115Contingency @ 5 % $624,500 $651,100Miscellaneous @ 2 % $249,800 $260,400Overhead on Subtotal @ 3,2,1 $126,900 $132,200

Total Cost Estimate $13,490,665 $14,065,815

AB1A Burmis - Foothills DETAILED DRILLING ESTIMATE (continued)

Alberta Twp 7 Rge 6 W5MWell Cost Estimate

No. of Drilled and Drilled and Operations, Services or Equipment # Units Unit Type Cost Per Unit Comments and Detail Abandoned Cased

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70PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.

No. of Cost Drilled and Operations, Services or Equipment # Units Unit Type Per Unit Comments and Detail Completed

Completion and Testing

Wellhead 1 Each $30,000 Type and accessories $30,000

Tubing 4300 Each $32 88.9 mm 13.85 kg/m, J-55 SML $137,600

Packers, Plugs, Retainers 1 Each $38,250 Anchors, packers, profiles, nipples etc $38,250

Service Rig 10 Day $6,480 Daily rig rate all in $64,800

Boiler 0 Day $1,000 Basic day rate fuel in $0

CSA 10 Day $750 Subsistence and accommodation $7,500

Crew Transportation 10 Day $300 Mileage, bus or air $3,000

Hauling and Trucking 10 Day $2,700 Tubing and other equipment $27,000

Vacuum Truck 10 Day $1,080 Rig days plus prod test days $10,800

Water and Trucking 10 Day $900 Water access and supply $9,000

Completion Fluids and Chemicals 160 Cubic Metre $160 Reformate, KCl, MeOH $25,600

Surface Equipment Rentals 1 Each $10,200 Rotating heads, frac heads etc $10,200

Downhole Equipment Rentals 1 Each $8,500 mud motors, packers, frac strings $8,500

Cased Hole Logs 1 Each $10,200 CBL etc. $10,200

Perforating and Logging 1 Each $25,500 TCP/Csg guns $25,500

Wireline 4 Runs $5,100 Gauge ring, run and pull recorders $20,400

Remedial Cementing 0 Each $15,000 Includes perforating, D/H tools etc $0

Stimulation 1 Each $68,000 Acid $68,000

Completions Supervisor 12 Day $1,450 Daily rate all in $17,400

Inspection / Safety 10 Each $1,500 Environmental, operational, government $15,000

Environmental 2 Each $1,000 Technician $2,000

Lease and Road Maintenance 10 Day $450 Crew and Equipment $4,500

Production Test 8 Day $4,250 Includes equipment, crews and analysis $34,000

Fluids Analysis 4 Each $500 Oil, gas and water $2,000

Snubbing 0 Day $7,500 Unit and Crews $0

Nitrogen 0 Cubic Metre $3 $0

Subtotal Completion $571,250

Contingency @ 5 % $28,600

Miscellaneous @ 2 % $11,400

Overhead on Subtotal @ 3,2,1 $7,700

Total Completion Estimate $618,950

Total Drill, Case and Complete Estimate $14,684,765

AB1A Burmis - Foothills DETAILED COMPLETION ESTIMATEAlberta Twp 7 Rge 6 W5MWell Cost Estimate

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