CORPORATE PRESENTATION
JANUARY 2017
2
Current asset suite
Viking light oil – 21,000 boe/d
Bakken low decline waterfloods – 7,000 boe/d
Largest Viking light oil producer in Canada
Current production – 28,000 boe/d (90% oil)
2015 YE 114 mmboe 2P reserves (90% oil)
Large captured resource > 6 billion bbl OOIP – ~4% recovery factor to date
~1 million gross acres of land (93% WI)
Large, derisked inventory >5,000 low cost, high return light oil locations – 15 years of growth inventory
Owned and operated infrastructure with oil handling capacity of ~50,000 bbls/d
Corporate Decline ~35%, maintenance (stay flat) capital ~$190 MM
2017 capital program ~$260 MM
CPPIB financial sponsor (~88% ownership)
Teine EnergyGrowth oriented private company focused on acquiring and developing large, low cost, high quality oil assets
3
Saskatchewan BasedConcentrated world class asset suite with years of self funding growth
SHAUNAVON
VIEWFIELD
BAKKEN
MISSISSIPPIAN
MONTNEY
CARDIUM
ALBERTA
BAKKEN
Viking Light Oil
21,000 boe/d
Bakken Heavy Oil
7,000 boe/d
Alberta Saskatchewan
100% of production located in southwestern Saskatchewan
Teine Land
VIKING
Heavy
BAKKEN
18 miles
4
Growth Driven – Shareholder FocusedMeasure growth on a debt adjusted per share basis and use a conservative approach to booking future development capital
1. Debt-adjusted production per share and reserves per share.2. Information contained in the reserve reports prepared by Sproule with effective dates of December 31, 2011, December 31, 2012, December 31, 2013, December 31, 2014 and December 31, 2015. 2015
pro forma reserves include the PWT acquisition completed in 2016.
Avg. Production (boe/d) 2P Reserves (mmboe)(2)
1,9572,978
7,791
12,28313,201
26,500
-
5,000
10,000
15,000
20,000
25,000
30,000
2011 2012 2013 2014 2015 H2 2016E
17
61
87
93
61
114
-
25
50
75
100
125
2011 2012 2013 2014 2015 2015 ProForma
>30%
compound
growth(1) since
20112015 PUD
rebalancing
to reduce
FDC costs
>10%
compound
growth(1)
since 2011
5
Infrastructure Advantage Positioned for low cost growth
Teine seeks to own, control and operate strategic infrastructure to reduce down time, increasing field manpower efficiency, and improve long-term netbacks, while meeting or exceeding environmental regulations.
~250,000 bbls total oil storage
Current capacity of 50,000 bbls/d of oil with ability to expand
Field-wide SCADA system – real time well status and production monitoring, reducing manpower and downtime, driving lower fixed costs per barrel
Plato
PipelineFORGAN
PLATO
DODSLANDCOLEVILLE
HOOSIER
Pipeline Connected
to Teine 13-12
Battery
Enbridge Main Line
6,500
19,500
26,000
19,000
31,000
50,000
Heavy Oil Light Oil Total Oil
bbl/
d
Utilization
Capacity
Current Facility Utilization vs. Capacity
6
Corporate Capital EfficiencyDeclining DCET costs, completion of infrastructure build, and enhanced well performance = consistent improvement in
capital efficiency
0
3,000
6,000
9,000
12,000
15,000
Pro
duct
ion b
y C
apital Pro
gra
m Y
ear
(boe/d
)
Corporate Capital Efficiency(1) (C$ / exit boe/d)
1. Excludes acquisition and land capital expenditures. Capital efficiency based on exit production by capital program year, excluding production impact of acquisitions.
~$31,000 /
boe/d
~$25,000 /
boe/d
~$22,000 /
boe/d
~$17,500 /
boe/d
2013A 2014A 2015A 2016E
Capex: ~$205 MM Capex: ~$290 MM Capex: ~$125 MM Capex: ~$150 MM
7
Key Cost DriversContinuous improvement on controllable costs – strive to generate more profit per barrel
Operational Metrics(1)
$7.00
$1.90
$1.10
$7.31
$2.17
$2.61
$9.24
$2.24
$3.32
$10.67
$3.93
$3.96
$0 $3 $6 $9 $12 $15
Opex
Transport
G&A
C$/boe
2013A 2014A 2015A 2016E
72%
52%
34%
Heavy Oil Impact
1. Percentage decreases show change from final year to beginning year, uncompounded.
8
FD&A PerformancePDP FD&A is more representative of replacement cost (depletion) vs. 2P FD&A. Future 2P growth will be consistently achieved
through our 15 year inventory of high quality de-risked locations
PDP FD&A (C$/boe)(1)
$27$25
$0
$10
$20
$30
$40
$50
PDP FD&A
2014A 2015A
2.1x
1.3x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
PDP Recycle Ratio
2014A 2015A
PDP FD&A Recycle Ratio(1)
1. Operating netback (excluding hedging) divided by PDP FD&A.2. Peer group includes CPG, WCP, RRX, TOG, SPE.
Peer Avg.(2)
0.8x
1.6x
$32
$36
Peer Avg.(2)
9
Financial DisciplineConsistent approach to protect the balance sheet and maintain flexibility/liquidity
Optimize capital structure in the framework of private company to manage cost of capital while maintaining line of sight to attractive public company leverage levels if transition to public company is made
Capital allocation rigor all development projects meet strict IRR (>40%) and payout
thresholds (<24 mo)
Facility projects must drive down long term cost structure
< 20 day Viking DCET cycle times mean flexibility to reduce/increase activity
12-24 month hedging program. Lock-in base cash flow to cover maintenance capex, G&A, and interests costs
Fully hedged (FX of principal & interest) term debt
2017E growth program fully funded by cash flow at US$50/bbl WTI
Current bank line of $475 MM ~40% drawn
10
Oil Market PricingAmple egress and benefiting from the Canadian dollar
$0
$20
$40
$60
$80
$100
$120C$ WTI Cdn Light Sweet (40 API) WCS Heavy (20.5 API)
C$ Pricing per barrel
Avg. Diff
~8%
Avg. Diff
~25%Teine Viking light oil realized price
approximately equal to Cdn Light Sweet
Teine heavy oil realized price
approximately equal to WCS Heavy
11
2017 Capital ProgramFocus remains on Viking light oil development, while testing attractive heavy oil and EOR opportunities
Viking
Light Oil
~300 Viking horizontal development wells with flexibility to increase or decrease program based on market conditions
Additional step-out and infill locations to further de-risk concept
Additional ERH wells in both high and low quality rock –determine optimal development in Tier 5+ lands and potential of high grading Tier 3/4 lands
Bakken
Heavy Oil
Target ~10-20 step out heavy oil locations – new play development
Optimization capital for workovers and water handling
EOR
Initiatives
Expansion of Bakken heavy oil polymer flood at Coleville
Viking water flood targeting response in previously flooded areas within Dodsland & Avon Hills
2017 Capital Allocation
Viking Light Oil12
13
Viking Light Oil Leading North American low cost oil play – shallow depth, low water production, low gas ratio
US$ WTI Half-Cycle Oil Breakeven(1)
1. Peters & Co. Limited Research. 10% discount rate, C$3.25/mcf AECO, US$3.45/mcf NYMEX.
$36.1
1
$36.2
5
$38.7
8
$39.3
4
$39.7
5
$40.7
3
$40.7
4
$41.2
0
$41.4
1
$41.9
4
$41.9
8
$42.8
5
$43.8
4
$44.0
1
$44.6
2
$46.5
6
$46.8
0
$48.0
0
$48.0
9
$48.1
0
$50.1
4
$52.0
8
$57.0
7
$59.6
5
$60.5
9
$63.4
8 Teine’s Viking
Light Oil
Permian Basin
14
FORGAN
PLATO
DODSLAND
PLENTYKERROBERT
Dominant land position – 0.9 million gross / 0.8 million net acres
Largest Viking light oil producer at 21,000 boe/d
Play expertise – Teine has drilled >1,000 Hz wells to date
Control some of the highest OOIP lands within the play >15 mmboe/section
Water flood potential within ~50 sections
Successful 20-acre infill pilot program significantly increases well inventory
Extended reach horizontal (ERH) wells represent potential step change in capital efficiency
>5,000 Hz Viking locations translate to > 15 year inventory
Viking Light Oil Dominant land and infrastructure position
15
0
20
40
60
80
100
120
0 4 8 12 16 20 24
Oil
Rate
(b
bl/
d)
MonthsTeine 2014 (~290 wells) Teine 2015 (~130 wells)
Teine 2016 (~200 wells) Sproule Tier 5
Sproule Tier 6 Sproule Tier 7
Viking Light Oil Historical Well PerformanceConsistent execution – 2016 drill program was broadly distributed across entire land base showcasing Teine’s depth of high quality
differentiated Viking inventory
2016 performance tracking
Tier 6 to Tier 7 (red line)
Standard Length Wells (0.5 mi)
Teine 3-Year Average IP365 ~35 bbl/d
Implied Sproule Tier Tier 6
DCET Cost $650k
Price Deck $50 Flat
IRR 79%
F&D $11.97
PIR 2.0x
Payout 1.3 yrs.
BT NPV10 $0.7 MM
47%62%
79%96%
114%
133%
$40 $45 $50 $55 $60 $65
US$ WTI vs. Single Well Tier 6 IRR(1)
1. Assumptions consistent with single well economics details located in appendix.
16
0
20
40
60
80
100
120
140
160
180
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Oil
Ra
te (b
bl/
d)
Months
Sproule 2016 T9 28-030-21W3M (4 Wells) 15-031-20 2016 (4 Wells) 17-031-19 2016 (4 Wells)
102/14-26-030-21W3 (14-23) 08-031-20 2016 (2 Wells) 101/01-33-026-19W3 (08-32)
Viking Extended Reach Horizontal Increasing efficiency throughout the entire play with the potential to increase well inventory within sub Tier 5 acreage
2016 Program
17 wells showing promising early results despite production data negatively impacted by forced well shut ins due to no road access and full tanks in Aug/Oct
Green line (4 wells) flat ~100 bbl/d for 11 months – exceeds Tier 9 cumulative production by ~40%
17
Viking Horizontal Well Cost TrendsDoing more for less – despite overall sand tonnage and stage counts increasing to improve IP’s, overall costs are down due to
cheaper sand, service cost reductions and design improvements
280 265 250 210 230
270
420
350 330
280
385
525
160
125
100
95
105
105
85
75
75
65
70
70
$945
$815
$755
$650
$790
$970
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$0
$200
$400
$600
$800
$1,000
2014A 2015A 2015A H2 2016E
Cap
ital Eff
icie
ncy
($
/bb
l/d
)
DC
ET C
ost
s (C
$0
00
s)
Drill Complete Equip Tie-in Capital Efficiency
1. Capital efficiency assumes Tier 6 12 month IP of 35 bbl/d for standard length well, Tier 9 12 month IP of 65 bbl/d for full section length well, and 12 month IP of 50 bbl/d for ¾ section well.
(1)
Standard Length Wells (0.5 mile or 1/2 Section)
Full Section
Length Well
¾ Section
Length Well
ERH Potential
18
Saskatchewan Viking OOIPShallow deposit with significant oil in place per section
@ 50 – 55 mbbl of recoverable oil per well,
development requires ~ 30 wells per section to attain
full primary recovery. Infill wells will benefit from
existing infrastructure
19
0
20
40
60
80
100
120
140
160
180
200
1 26 51 76 101 126 151 176 201 226 251 276 301 326 351 376
bb
l/d
Days
Teine Viking 20-acre Pilot ProgramResults to date have been successful and significantly de-risks the concept throughout much of the play
Minimal evidence of communication with
adjacent wells at 20 acre spacing
~20 wells on production
2015/2016 Dodsland Pilot Program
Average Tier 5 well results
LEGEND
Red Line – Sproule Tier 5
Green Line – avg. production
3rd party Reserve Auditor has
recognized 20 acre infill drilling,
significantly increasing Teine’s
bookable inventory
20
Viking Light Oil Inventory 15 year high quality inventory
Teine Inventory Map
>5,000 repeatable, low-risk Hz Viking oil locations
> 80% of land base has been de-risked
1. Information contained in the reserve report prepared by Sproule as at December 31, 2015.
0
1,000
2,000
3,000
4,000
5,000
Unbooked 20 Acre Spacing (Risked at 50%)
Unbooked Risked 40 Acre Spacing
Booked 40 Acre Spacing
Teine Inventory – Tier 5 or greater
Ave Tier: 5.7
~15%
Ave Tier: 5.6
~40%
Ave Tier: 5.1
~45%
(1)
Bakken Heavy Oil21
22
Bakken Heavy Oil Low viscosity oil is ideal candidate for water and polymer flooding, driving low declines and free cashflow
Coleville Main Polymer Pilot
Over 1 billion BBL OOIP with less than 12% recovery
98% under water flood – amenable to waterflooding due to lower viscosity than conventional heavy oil
Historically under capitalized assets – to date, >125 high IRR opportunities have been identified within existing pools (based on US$50 WTI)
Potential to expand polymer flood throughout heavy oil acreage
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2013 2014 2015 2016
Oil
Pro
duct
ion (b
bl/
d)
~10% Annual Base Decline
23
2011 pilot demonstrated consistent increased production
Plan to initiate Phase 1/2/3 in H1 2017 with expected production response Q4 2017
Total cost of $2.5-$3.0 MM to drive incremental IP365 of ~500 bbl/d and incremental EUR of ~1.65 mmbbl
Bakken Polymer FloodColeville polymer flood exhibits excellent prod’n efficiencies and low F&D costs while mitigating corporate decline
0
50
100
150
200
250
300
350
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
Coleville Polymer Pilot Oil Production (bbl/d)
- Polymer injection began in 2011
- 2.5x production increase – 4
month response time
Polymer flood
Each additional phase is expected to add
production @ ~$6,000/bbl/d and reserve
F&D’s below $2.00/bbl generating IRR’s
equivalent to Viking HZ wells
24
Heavy Oil SustainabilityTorque to oil price recovery, optionality to further fund Viking light oil development or grow heavy oil
$20
$29
$37
$44
$54
$64
$0
$10
$20
$30
$40
$50
$60
$70
$80
$45 $50 $55 $60 $65 $70
Forw
ard
Yea
r C
ash
Flo
w (
C$
MM
)
US$ WTI
Stay-Flat Cash Flow at Various WTI Illustrative analysis of forward year cash flow generation in a stay-flat production scenario at various WTI
Assumes type curve development drilling, excluding impact of water flood optimization, recompletions and polymer flood expansion
Stay-flat production assumes ~$10 MM annual capex
Summary25
26
1. Excludes Viking Waterflood Upside
2. Based on 28,000 boe/d.
Based on Management’s best estimates (See Disclaimer):
ResourceWorld class, low cost oil resource driving long term, low risk growth
675 mmbbl 5,325 mmbbl
Remaining
Recoverable (1)
Remaining Recoverable
Oil = 675 mmbbl
15%
85%
>6 Billion bbls Estimated Oil in Place within Teine Lands Remaining Recoverable Oil
2015E YE 2P
Reserves
85% of remaining recoverable oil
(> 500 mmbbl) is undeveloped & un-booked
66 year
RLI(2)
27
Teine Competitive Advantage
Low Cost
Repeatable Light
Oil Play / Low
Decline Heavy Oil
• World class oil deposit with significant OOIP and scalability
• Predictable and significant growth with low-risk capital programs
• Built to withstand ongoing oil market volatility
• > 15 years of drilling inventory
• Low maintenance capital heavy oil asset with torque to oil price
recovery provides free cash flow
• ~10% heavy oil decline reduces overall corporate decline
Strategic Financial
Partner / Aligned
Management
• Management and founders ownership of ~12% fully diluted
• Long-term, successful partnership with CPPIB
Saskatchewan
Stable &
Attractive Fiscal
Regime
• Royalty incentives to encourage investment
• Committed to Canadian energy competitiveness
Own and Operate
Strategic
Infrastructure
• Ample egress to markets
• Long-term low cost structure
• Pre-emptive compliance with potential regulatory changes
Self-funding
Growth
• Top decile netbacks
• Low cost operator
• Self-funding
• ~$275 MM liquidity at Dec 31, 2016(1)
1. Facility increased to $475 MM effective Sept 30, 2016.
Solid track record
Strong netbacks
Top tier capital efficiency
Self-funding growth
Opportunistic acquirer
28
Corporate Information
Board of Directors Bankers
Avik Dey – Chair Dennis Chorney – Vice-Chair National Bank of Canada, Syndicate head
Jim Howe Nicholas Zelenczuk Wilmington Trust, Bond Administrator
David Chambers Jason Denney
Executive Officers Head Office
Jason Denney – President & CEO Suite 2300, 520 – 3rd Avenue SW
Ken Hillier – SVP & CFO Calgary, Alberta, Canada, T2P 0R3
Registrar and Transfer Agent Website
TSX Trust www.teine-energy.com
Auditors Solicitors
Deloitte LLP Bennett Jones LLP
Sproule Associates Limited
29
Management Team
Jason Denney, P.Eng – President & CEO20+ years, previously COO of Teine (management roles with Encana, operational roles with Murphy Oil)
Ken Hillier, CA – SVP & CFO30+ years (CFO – Angle Energy, CFO – C&C Energia, CFO – Verenex Energy, various roles with Nexen)
Melanie Pedersen, M.Sc., P.Geol – VP Exploration20+ years (various roles with Encana, PanCanadian)
Dwayne Romansky, B.Sc., P.Eng – VP Engineering30+ years (VP Operations – Argo Energy, Calpine Energy, Anglo Albanian Petroleum, roles with PanCanadian and Westmin)
Jim Thomson – VP Land25+ years (VP Land – Sequoia Oil & Gas, various roles with Argo Energy, Devon Energy, Murphy Oil, CU Resources, D.R. Hurl Land)
Kim Verrier, CA – VP Finance & Treasurer20+ years (Corporate Controller – DC Energy Services/Total Oilfield Rentals, Director Reporting & Control – BA Energy/Value Creation)
Tyler Homan, P.Eng – VP Production20+ years (Senior Production Engineer – EOG, Gulf)
Russell Cumberland, P.Eng – VP Exploitation20+ years (various roles with Berens Energy, Burlington Resources, Nexen)
30
Disclaimer
General
This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in any jurisdiction, and neither this presentation nor anything contained herein
shall form the basis of any contract or commitment.
Forward-Looking Statements
This presentation contains certain statements and information that constitute forward-looking statements and forward-looking information as defined under applicable securities legislation (collectively, "forward-looking
statements"). These forward-looking statements relate to future events or future performance of Teine Energy Ltd. ("Teine"). All statements other than statements of historical fact are forward-looking statements. The use
of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue",
"potential" and "capable" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this
presentation should not be unduly relied upon. These statements speak only as of the date of this presentation. This presentation contains forward-looking statements attributed to third party industry sources.
In particular and without limitation, in this presentation there are forward-looking statements pertaining to: financial and operational outlook for 2016 and 2017; the reserve potential of Teine's assets; the estimated
production rates from Teine's assets, including average production rates; Teine's plans to manage its financial structure prudently; Teine's plans to deploy capital; Teine's potential plans for incremental recovery through
new techniques and secondary recovery techniques; Teine's future growth program and funding thereof; future commodity cost prices and costs; expectations with respect to future capital investment, working capital
deficiency, corporate capital expenditures, net debt, debt-adjusted cash flow, capital efficiencies and cost reductions, free cash flow, preservation of liquidity, netbacks, expected total debt/EBITDA ratio under credit
facility covenants, EBITDA per boe and other financial results; Teine's capital expenditure programs and future capital requirements; Teine’s finding & development costs; Teine’s annual production growth rate and
growth inventory; Teine's forward year cash flow; the estimated quantity and value of Teine's proved and probable reserves; expectations that Teine's competitive advantages will yield successful execution of its
business strategy; the cash available for the funding of capital expenditures; outstanding indebtedness; the level of production anticipated by Teine; Teine's hedging activities; Teine's plans for exploration and
development activities and the expected results for such activities; and Teine's access to capital and overall strategy, development and drilling plans for all of Teine's assets.
With respect to forward-looking statements contained in this presentation, assumptions have been made regarding, among other things: future crude oil, NGL and natural gas prices; future exchange rates, Teine's
ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which Teine conducts its
business and any other jurisdictions in which Teine may conduct its business in the future; Teine's ability to market production of oil and natural gas successfully to customers; Teine's future production levels; the
applicability of technologies for recovery and production of Teine's reserves; the recoverability of Teine's reserves; future capital expenditures to be made by Teine; future cash flows from production meeting the
expectations stated in this presentation; future sources of funding for Teine's capital program; CPPIB's continued financial sponsorship; Teine's future debt levels; geological and engineering estimates in respect of
Teine's reserves; the geography of the areas in which Teine is conducting exploration and development activities; the impact of competition on Teine; and Teine's ability to obtain future financing on acceptable terms or
at all.
Actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors including, but not limited to: business operations and capital costs; USD/CAD exchange
rates; Teine's status and stage of development and the management of growth; general economic, market and business conditions; volatility in market prices and demand for crude oil and natural gas and hedging
activities related thereto; seasonality of the Canadian oil and natural gas industry; risks related to the exploration, development and production of oil and natural gas reserves; current global financial conditions,
including fluctuations in interest rates, foreign exchange rates and stock market volatility; risks related to the timing of completion of the Teine's projects; competition for, among other things, capital, the acquisition of
reserves and skilled personnel; operational hazards; actions by governmental authorities, including changes in government regulation and taxation; environmental risks and hazards; risks inherent in the exploration,
development and production of oil and natural gas which may create liability to Teine in excess of Teine's insurance coverage; cost of new technologies; failure to accurately estimate abandonment and reclamation
costs; failure of third parties' reviews, reports and projections to be accurate; the availability of capital on acceptable terms; political risks; climate change; changes to royalty or tax regimes; the failure of Teine or the
holders of certain licenses or leases to meet specific requirements of such licenses or leases; claims made in respect of Teine's properties or assets; aboriginal claims; unforeseen title defects; risks arising from future
acquisition activities;
31
potential conflicts of interest; the potential for management estimates and assumptions to be inaccurate; risks associated with establishing and maintaining systems of internal controls; risks related to the reliance on
historical financial information; liquidity and additional funding requirements; additional indebtedness; failure to engage or retain key personnel; potential losses which would stem from any disruptions in production,
including work stoppages or other labour difficulties, or disruptions in the transportation network on which Teine is reliant; uncertainties inherent in estimating quantities of oil and natural gas reserves; failure to
acquire or develop replacement reserves; geological, technical, drilling and processing problems, including the availability of equipment and access to properties; and disclosure of confidential information of Teine.
In addition, information and statements in this presentation relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions,
that the reserves described exist in the quantities predicted or estimated, and that the reserves described can be profitably produced in the future.
Financial outlook and future-oriented financial information contained in this presentation about prospective financial performance, financial position or cash flows is based on assumptions about future events, including
economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available and is subject to the same risk factors, limitations and qualifications as set forth
above. The financial information included in this presentation, including prospective financial information and financial information for 2015 based on audited financial statements and financial information for 2016
based on unaudited financial statements, has been prepared by, and is the responsibility of, management. Teine and its management believe that such financial information has been prepared on a reasonable basis,
reflecting the best estimates and judgments, and that prospective financial information represents, to the best of management's knowledge and opinion, Teine's expected course of action. However, because this
prospective information is highly subjective, it should not be relied on as necessarily indicative of past or future results.
The forward-looking statements included in this presentation are expressly qualified by this cautionary statement and are made as of the date of this presentation. Teine does not undertake any obligation to publicly
update or revise any forward-looking statements except as required by applicable securities laws.
Presentation of Financial Information
Unless otherwise indicated, references to "CDN$" or "$" are to Canadian dollars and references to "US$" are to U.S. dollars. Unless otherwise indicated, all financial information relating to Teine in this presentation
has been prepared in Canadian dollars using International Financial Reporting Standards ("IFRS").
Non-IFRS Measures
This presentation contains financial measures that are not in accordance with IFRS, including EBITDA, free cash flow, netbacks and net debt.
Presentation of Oil and Gas Information
The discounted and undiscounted net present value of future net revenues attributable to reserves do not represent the fair market value of such reserves. There are numerous uncertainties inherent in estimating
quantities of oil and natural gas and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth in this presentation are estimates only. In general, estimates of
economically recoverable oil and natural gas and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates,
ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of
which may vary materially. For these reasons, estimates of the economically recoverable oil and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of
recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. Teine's actual production, revenues, taxes and
development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material. Readers are cautioned that the foregoing list of risk factors should not be
construed as exhaustive.
Throughout this presentation, the calculation of barrels of oil equivalent ("boe") is based on the widely recognized conversion rate of 6,000 cubic feet ("mcf") of natural gas for 1 barrel ("bbl") of oil. Boe conversions
may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value
equivalence at the wellhead. As the value ratio between crude oil and natural gas based on the current price of crude oil and natural gas is significantly different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value.
Disclaimer Cont.
Appendix 32
33
0
20
40
60
80
100
120
0 4 8 12 16 20 24
Oil
Rate
(b
bl/
d)
Months
Teine 2014 (~290 wells) Teine 2015 (~130 wells) Teine 2016 (~200 wells)
Sproule Tier 5 Sproule Tier 6 Sproule Tier 7
Teine Viking Well Economics
Assumptions
Fixed Operating Cost ($/month) $2,000
Variable Operating Cost ($/boe) $2.95
Abandonment Cost ($000s) $30
GOR (scf/bbl) 500
Liquids Yield (bbl/MMcf) 15
1. Teine average royalty based on inventory crown and freehold split of ~13%.
2. Tier 5, Tier 6, Tier 7 based on 2016 Sproule type curve definitions. Full section length economics based on Sproule Tier 9.
(1)(2)
(1)(2)
Type Curve IRR Sensitivities - Standard Length Wells(1)(2)
WTI (US$/bbl) $59.70 $40.00 $45.00 $50.00 $55.00 $60.00 $65.00 Dec 13 Strip
DCET Cost (C$000s) $630 $640 $650 $660 $670 $680 $650
F/X $0.74 $0.75 $0.76 $0.77 $0.78 $0.79 $0.77
Cdn Sweet Diff (US$/bbl) $3.20 $3.60 $4.00 $4.40 $4.80 $5.20 $4.00
Tier 5 24% 33% 42% 52% 62% 72% 56%
Tier 6 47% 62% 79% 96% 114% 133% 104%
Tier 7 87% 114% 144% 178% 214% 254% 192%
Teine Type 41% 56% 72% 90% 108% 128% 98%
Type Curve Payout (Months) Sensitivities - Standard Length Wells
WTI (US$/bbl) $40.00 $45.00 $50.00 $55.00 $60.00 $65.00 Dec 13 Strip
Tier 5 47 34 27 22 19 17 21
Tier 6 24 19 16 13 11 10 12
Tier 7 14 11 9 8 7 8 8
Full Section Length Wells - Sproule Tier 9
WTI (US$/bbl) $64.50 $40.00 $45.00 $50.00 $55.00 $60.00 $65.00 Dec 13 Strip
DCET Cost (C$000s) $945 $960 $975 $990 $1,005 $1,020 $970
IRR 75% 97% 121% 146% 173% 202% 160%
Payout (Months) 16 13 11 9 8 7 9
Type Curve Capital Efficiency
Full Section T9 Tier 5 Tier 6 Tier 7
DCET $970 $650 $650 $650
1 year Capital Efficiency $16,269 $24,095 $19,081 $15,225
F&D $9.56 $14.82 $11.97 $9.61
34
Debt & Hedging Summary
HY NoteFacility CovenantsSenior Bank Facility
US$350 MM unsecured note
Principal and interest payments hedged at 1.102
Matures September 2022
6.875% coupon with interest payments Mar 30/Sept 30
Covenant light
C$475 MM secured banking facility
Increased from $250 MM effective Sept 30, 2016
~$200 MM drawn at Dec 31, 2016
Covenant 1: < 3.0x senior debt / 4 quarter trailing EBITDA
Q3 2016 status: 0.3x
Hedging Summary
Cal 2017 – WTI Swaps in C$ 9,500 bbl/d at ~C$66.30/bbl
Cal 2018 – WTI Collars in C$ 3,500 bbl/d at C$65.00/C$78.45
35
Cash ReturnsTeine’s high quality production and low cost structure delivers one of the most profitable bbls in Canada
1. Q3 2016. Data sourced from Canoils.
EBITDA per boe(1)
$2
8
$2
5
$2
4
$2
4
$2
2
$2
2
$2
1
$2
0
$1
8
$1
6
$1
6
$1
6
$1
6
$1
4
$1
4
$1
4
$1
4
$1
3
$1
3
$1
2
$1
2
$1
1
$1
0
$1
0
$1
0
$1
0
$9
$9
$9
$9
$7
$4
$3
$3
Teine
36
Penn West Asset Acquisition Overview
Asset Map
Teine Pre Acquisition Land Base
PWT Asset Acquisition
Viking Light Oil
Heavy Oil
Transaction Overview & Rationale Acquisition of Penn West southwest Saskatchewan oil
acreage, primarily focused on the core Viking light oil acreage
Transformative transaction more than doubling Teine’s production
Creation of dominant Viking light oil footprint
~1,000 Viking light oil locations
Corporate decline reduction with addition of low
decline Bakken heavy oil
Acquired >$150 MM of strategic infrastructure
based on replacement cost
Purchase price of $975 MM cash, closed June 24, 2016
Acquisition Metrics Metric Multiple
H1 2016 Production 15,500 boe/d $62,900/boe/d
Proved + Probable Reserves(2) 53.2 mmboe $18.33/boe
1. 2017E: Based on the following assumptions. WTI US$50.00, US$/C$0.75, Light Oil Diff US$4.00, Heavy Oil Diff US$14.21.
2. Information contained in the reserve reports prepared by Sproule with effective date of December 31, 2015.
37
Viking Light Oil Waterflood PotentialEconomic success will be area specific and is dependent on adequate porosity and permeability. However, Teine
lands within the identified area exhibit some of the highest porosity and permeability within the play
Teine Potential Flood
Area Boundary
(~50 contiguous net
Sections)
2017 Waterflood
Expansion Projects
38
2015 Pro Forma Reserve Composition
Commodity Composition
Btax Value Composition
Summary
Reserves Classification
62%
26%
2%
11%
Light Oil Heavy Oil
NGLs Gas
60%
28%
2%10%
Light Oil Heavy Oil
NGLs Gas
114 mmboe 2P 85 mmboe Proved
75%
25%
Proved Probable
66%
34%
Proved Developed
Proved Undeveloped
114 mmboe 2P 85 mmboe Proved
69%
31%
Proved Probable
74%
26%
Proved Developed
Proved Undeveloped
C$1.8B 2P C$1.2B Proved
Source: Information contained in the Reserve Report prepared by Sproule as at December 31, 2015.
Reserves Btax
Light Oil Heavy Oil NGLs Gas Total FDC NPV10%
mmbbls mmbbls mmbbls bcf mmboe C$MM C$MM
PDP 26 24 1 34 56 $8 $918
PUD 25 0 1 19 29 $591 $319
Total Proved 51 24 1 54 85 $599 $1,236
Probable 19 5 1 21 29 $134 $558
Total 2P 70 29 2 74 114 $733 $1,795
% PDP/2P 37% 81% 42% 46% 49% 51%
% Proved/2P 73% 82% 71% 72% 75% 69%
39
E&P High Yield Outperformance
Source: J.P. Morgan.
Current trading levels
6.92%
7.73%
6.58%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
21.0%
23.0%
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17
JPM HY Index JPM HY E&P Index Teine Energy 6.875% due 2022
Amount Issue At Issue Current as of 1/06/2017 Next call Next call
Issuer Issue Issue date Coupon (USD$mm) Maturity Ratings Price YTW STW Price YTW STW YTW date date price
Teine Energy Sr Nts Sep-14 6.875% 350 Sep-22 B3 / B 99.23 7.00% 469 103.75 5.74% 426 Sep-20 Sep-17 105.156
40
Sproule 2016 Viking Type CurvesStandard Length (1/2 section)
(Months)
0
20
40
60
80
100
120
140
160
180
1 6 11 16 21 26 31 36 41 46 51 56
Oil P
rod
uct
ion (
bbl/
d)
Tier 3 Tier 4 Tier 5 Tier 6 Tier 7 Tier 8 Tier 9
Months
41
Corporate History
1. Canada Pension Plan Investment Board.
2. Based on audited Financial Statements as at September 30, 2016.
June 2010
Company Founded
by amalgamation
of Marble Point
Energy
November 2011
C$204 MM
equity
investment by
CPPIB(1)
May 2013
US$300 MM
Second Lien Term
Loan Acquired
~124k net Viking
acres and gas
plant and built
major oil battery
in 2013
November 2011
Acquisition of
~50k net acres in
Saskatchewan
prospective for
Viking light oil
January 2013
C$43 MM
acquisition of
~22k net
Viking acres
December 2012
C$155 MM equity
investment by CPPIB(1)
to fund C$180 MM
acquisition of ~102k
net Viking acres and
~1,900 boe/d
September 2014
Closed US$350
MM High-Yield
Bond issue.
Repaid US$300
MM Second Lien
Term Loan
June 2016
Closed $975 MM
transformative
acquisition of
Penn West’s
Saskatchewan
assets