Corporate UpdateFebruary 2019

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Overview

Strath Kakwa

• Montney-focused private oil & gas company owned by majority

shareholder Waterous Energy Fund

• Exclusively located in the Kakwa region, one of the most active

areas in the WCSB driven by the high liquids Montney resource

• Montney development is enhanced by multi-zone potential

(including Dunvegan and Wilrich) across Strath’s 400 sections

• Production targeting 25,000 boe/d in Q2/19 with ~50% liquids

• Rapid production growth since inception (January 2017)

delivered by acquisitions and Montney drilling

• Processing capacity and egress in place to support growth to

35,000 boe/d with expansion currently being investigated

Kakwa

Montney Activity

3Strath Hammer Head NuVista

Paramount Seven Generations Velvet

XTO Montney Wells

Multi-Zone Upside Across the Kakwa Fairway

Kakwa Region – Major Operators Kakwa Multi-Zone Drilling Activity

Strath’s 400 sections of land are optimally located in the Kakwa region

characterized by multi-zone, stacked play potential

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2013 2014 2015 2016 2017 2018

Montney Dunvegan Spirit River

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• Active Operators in the Kakwa Region:• Montney - Seven Generations, NuVista,

Paramount, Hammerhead & XTO

• Dunvegan - CNRL, Whitecap & Mancal

• Spirit River – Tourmaline & Jupiter

• Strath is focused on developing liquids rich

Montney in Kakwa

• In 2018 Strath commenced delineation of its

Dunvegan oil play by drilling the longest

horizontal Dunvegan well in western Canada

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400% Production Growth in 2 Years

Strath’s rapid production growth was driven by a combination of

acquisitions and high liquids Montney drilling

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Natural Gas Natural Gas Liquids Oil & Condensate % Total Liquids

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38%

62%

Acquisitions Montney Drilling

Q4 2018 - 21,013 boe/d

67%

12%

21%

Natural Gas Oil & Condensate NGL's

Acquired Production - 8,086 boe/d

43%

35%

22%

Natural Gas Oil & Condensate NGL's

Montney Drilling - 12,927 boe/d

Strath Team

Management

Steve Fagan, President & CEO

Scott Seipert, VP Finance

Connie De Ciancio, VP Land

Tom Everest, VP Engineering

Jon Batchelor, VP Geology

Al Grabas, VP Production

Directors

Steve Fagan, Strath Resources Ltd.

Adam Waterous, Waterous Energy Fund

Andrew Kim, Waterous Energy Fund

Henry Hager, Waterous Energy Fund

James H.T. Riddell, Paramount Resources Ltd.

Bankers

ATB Financial

Royal Bank of Canada

Scotiabank

Legal Counsel

Blake, Cassels & Graydon LLP

Reserve Engineers

McDaniel & Associates Consultants Ltd.

Auditors

Deloitte