About Pine Cliff Energy

Pine Cliff Energy Ltd. engages in the acquisition, exploration, development, and production of oil, natural gas and NGLs (natural gas liquids, including condensate, propane, butane and ethane) in the Western Canadian Sedimentary Basin. The company, through its nonmaterial wholly-owned subsidiary, Geomark Exploration Ltd. (Geomark), also owns interests in lands that are prospective for the exploration of precious metals located in Ontario, the Northwest Territories and Nunavut, all in Canada and Utah, United States. In 2019, the company closed the acquisition of certain mainly natural gas weighted assets in the Ghost Pine area of Central Alberta. The company’s oil and gas properties at December 31, 2019 are located in Alberta and Saskatchewan where it operated or had ownership in facilities and other installations necessary to produce, transport and sell oil, natural gas and NGLs. Central Alberta Assets The company owns high working interest, production with a long reserve life in the Ghost Pine and Viking areas of Central Alberta (the Central Alberta Assets). The company has an average 71% working interest by wells in its Central Alberta Assets and operates 96% of the production. Greater Ghost Pine The company’s Ghost Pine assets are located near the town of Drumheller, Alberta and produces 81% natural gas. Ghost Pine production is from the Late Cretaceous Edmonton Group to the liquids-rich, Early Cretaceous Mannville Group and Mississippian Rundle Group. The company owns and operates a majority of the infrastructure in this area, including three licensed gas plants, various large nodal compressor stations and gathering and sales pipeline networks. The company owns, or has license rights to, 420 square kilometers of 3D and 813 kilometers of 2D seismic on its Central Alberta assets. The company has identified 30 gross (28.0 net) horizontal Pekisko oil locations and 10 gross (8.4 net) horizontal Basal Quartz oil locations. Of these locations, 9.0 gross (9.0 net) Pekisko and one gross (1.0 net) Basal Quartz drilling locations are recognized in the Pine Cliff Reserve Report. In 2019, the company drilled two gross (2.0 net) unbooked oil wells targeting the Pekisko Formation with one well brought onto production at the end of 2019 and the additional well in early 2020. Additionally, the company has identified various development prospects in the Mannville Group for both liquids-rich gas and oil. Viking The company’s Viking assets are located near the town of Viking, Alberta and produces 99% natural gas. The majority of this production comes from the Viking shore face sands composed of fine to coarse grained sandstone with inter-beds of conglomerate and cherty conglomeratic sandstone. Southern Alberta and Southern Saskatchewan The company owns long-term, low decline producing shallow gas assets in Southern Alberta and Saskatchewan referred to as the Southern Assets. The company has a 95% working interest by well in the Southern Assets and is the operator of 98% of its production in the area. The company also has a 10% interest in the Tilley unit. Hatton The company's Hatton assets are located near the Town of Maple Creek, Saskatchewan and produces natural gas. The company controls majority of the infrastructure in this area, which includes a gas gathering system and a major compressor station that delivers to a TransGas Limited pipeline. Many Islands/Long Valley The Many Islands/Long Valley area is located east of the City of Medicine Hat, Alberta and produces natural gas. The company controls most of the infrastructure in this area, which includes a gas gathering system, two field compressors and a 100% interest in a compression station that delivers to two TC Energy pipelines. In 2017, the company purchased 100% interest in two Canadian Energy Regulator (CER) regulated inter-provincial natural gas export pipelines that permit Pine Cliff to transport produced natural gas to either Alberta or Saskatchewan. Pendor/Black Butte The Pendor/Black Butte area is located approximately 80 kilometers southwest of the City of Medicine Hat, Alberta and produces natural gas. The company controls majority of the infrastructure in this area which includes a gas gathering system, two gas processing facilities and a 100% interest in a CER regulated sales gas export pipeline terminating in Montana, United States. Tilley/Monogram The Tilley/Monogram area is located approximately 40 kilometers northwest of the City of Medicine Hat, Alberta and produces natural gas. The company controls most of the infrastructure in the Monogram area, which includes a gas gathering system, one field compressor and a 90% interest in a gas plant that delivers to TC Energy meter station or to a third party pipeline that transports gas to Alberta, Saskatchewan or the Empress market. Eagle Butte The Eagle Butte area is located approximately 24 kilometers southeast of the City of Medicine Hat, Alberta and produces natural gas. Development and production activities in the Eagle Butte area are directed towards exploitation and maintaining production. The company controls most of the infrastructure in this area, which includes a gas gathering system, two field compressors and a 100% interest in a gas plant that delivers to a TC Energy pipeline. Edson The company owns assets located near the town of Edson in Western Central Alberta, which produces liquids rich natural gas as well as a small amount of oil (the Edson Assets). The company has a 51% average working interest by wells in the Edson Assets and is the operator of approximately 46% of the company’s production in the area. The company’s acreage in the area is productive primarily from sands belonging to the Middle Jurassic Rock Creek Formation and the early cretaceous Ellerslie formation. Secondary zones of interest in the area include sands belonging to the Viking, Wilrich, Bluesky, Gething and Notikewin formations. The company has identified a total of 20 gross (5.6 net) potential drilling locations, including six gross (1.6 net) booked locations in the liquids-rich Ellerslie (Gething) formation. The reservoir sands consisted of fine to medium grained sands and siltstones, average approximately six metres in thickness and are encountered at an average drill depth of 2,425 meters. Non-core Areas As of December 31, 2019, the company also had working interests in non-operated properties in the Sundance, Carstairs, Garrington and Harmattan areas of Alberta and the Cadillac area of Southern Saskatchewan. Strategy The company is pursuing an integrated growth strategy that includes both development and exploration drilling as well as acquisitions. History Pine Cliff Energy Ltd. was incorporated in 2004.