About Peyto Exploration & Development

Peyto Exploration & Development Corp. operates as an energy company. The company engages in the acquisition, exploration, development and production of oil and natural gas in Western Canada. The company’s strategy is to improve shareholder value through the exploration, discovery and low cost development of oil and natural gas in the Western Canadian sedimentary basin. The company’s portfolio of assets includes exploration, exploitation and development opportunities located primarily in the Deep Basin of Alberta. During 2019, the company drilled or participated in 61 gross (53 net) oil and natural gas wells. 59 wells (51 net) reached total depth as of December 31, 2019. Principal Properties All of the company’s reserves are in Canada, primarily in the province of Alberta. The company operates in three core areas, namely the Greater Sundance, Brazeau River areas and Northern area of Alberta. Within the Greater Sundance area there are four sub-areas, Sundance, Nosehill, Wildhay and Ansell, all of which have the company operated gas processing facilities that are interconnected. Greater Sundance Area The Greater Sundance area is located 50 kilometers west of Edson, Alberta, from Township 50–56 and Range 19-24 west of the fifth meridian. The company began its operations in this area in the spring of 1999. This area includes the Sundance, Wildhay, Nosehill and Ansell fields; and is referred to as the ‘Greater Sundance area’. The company has an average 81% working interest in 346,240 gross (279,902 net) acres of land and operates 99% of its production in the area. The company produces gas from the Belly River, Cardium, Viking, Notikewin, Falher, Wilrich, Bluesky, Cadomin and Montney formations. The company is producing approximately 69,580 barrels of oil equivalent per day (boe/d). The company owns and operates five 100% working interest gas processing plants and one joint plant (89% working interest as of December 31, 2019) located in the Greater Sundance area. Two of the plants are located in Oldman (55-21W5), the third one is located in Wildhay (55-23W5), the fourth one is located in Nosehill (55-20W5), and the fifth and sixth plants are located in Ansell (53-20W5 and 53-19W5). The majority of the company’s production is processed through these plants, with 1,425 gross (1,275 net) producing zones tied-in. Gross natural gas production at the facilities is approximately 353 million cubic feet per day (MMcf/d), with gross natural gas liquids production being approximately 10,790 barrels of oil per day (bbls/d). Brazeau River The Brazeau River area is located 180 km southwest of Edmonton, Alberta, from Township 41-44 and Range 11-14 west of the fifth meridian. The company began operations in this area in 2013. The company has an average 95% working interest in 124,480 gross (118,011 net) acres of land and operates 99% of its production in the area. The company produces gas from the Notikewin, Belly River, Wilrich, Falher and Cardium formations. In 2019, the company drilled 3 gross (3 net) wells in Brazeau. The company is producing approximately 11,840 boe/d, consisting of 63 MMcf/d gross natural gas and 1,290 bbls/d natural gas liquids from this area. The company owns a 100% working interest in and operates its gas processing plant in Brazeau. The majority of the production from the area is processed through this plant with 108 producing zones tied in. Gross production from this facility is approximately 63 MMcf/d of natural gas with approximately 1,290 bbls/d of natural gas liquids. Northern Area The Northern area includes producing properties in various regions, such as Smoky, Kakwa, Chime, Kiskiu, Chicken and Cutbank; and it includes Townships 57-64 and Ranges 2-7 west of the sixth meridian. The Kakwa gas plant, which services producing properties in Smoky, Kakwa, Chime and Kiskiu (together referred to as ‘Greater Kakwa’) is located 40 km northeast of Grande Cache, Alberta. The company has an average 91% working interest in 106,880 gross (97,631 net) acres of land and operates 97% of its production in the area. The geology of the area indicates multi-zone potential for liquids-rich natural gas. The company produces gas from the Belly River, Dunvegan, Chinook and Cardium formations. The majority of the company’s production comes from the Cardium formation, which exists as a low permeability blanket sand. The company is producing approximately 2,150 boe/d, consisting of 10 MMcf/d gross natural gas and 540 bbls/d natural gas liquids from this area. The company owns a 100% working interest in and operates its gas processing plant in Smoky/Kakwa. The majority of the company’s production from the area is processed through this plant with 63 producing zones tied in. Gross production from this facility is approximately 8 MMcf/d of natural gas with approximately 505 bbls/d of natural gas liquids. The company owns a 100% working interest in and operates its gas processing plant in Cutbank. The majority of the production around the Cutbank area is processed through this plant with 15 producing zones tied in. Gross production from this facility is approximately 1,000 thousand cubic feet per day (Mcf/d) of natural gas with approximately 21 bbls/d of natural gas liquids. Miscellaneous The company has various minor working interests in non-operated wells throughout Alberta. These properties account for less than 1% of the company’s production. History Peyto Exploration & Development Corp. was founded in 1998.