Pembina - Duvernay Shale Oil Opportunity

Duvernay Shale Net Pay Map (5m CI)

Fluid Light Sweet Oil

Area T48 R27 W4 to T51 R3 W5

Seismic Significant 2-D and 3-D coverage

Infrastructure Good, gas and oil pipelines

Land Base Unleased Checkerboard

Play Parameters Zone Depth: 2,050-2,200 m, 10-25m of thermally mature organic rich shale

Land Contact Justin Rockafellow: 587-293-4065

Play Synopsis

Pembina Area

Industry continues to be actively targeting Duvernay light oil and liquids rich gas in Central Alberta, in both the West and East Shale Basins. Recent drilling and production results have

confirmed that the Pembina area is within the Duvernay oil window, and that horizontal multistage fracturing technology can be successfully implemented to obtain production from the

formation. Continued interest in Duvernay leasing on both Crown and Freehold lands, along with recent drilling and licensing activity are in response to the successful well results in the

oil window on both sides of the Rimbey Homeglen Leduc Reef trend. Sufficient Duvernay well logs and detailed rock analysis from cuttings and core have made detailed mapping

possible in the Pembina area.

Using Duvernay Geochemistry data along with detailed well log mapping, PrairieSky has generated their own thermal maturity lines for Oil, Condensate and Dry Gas across the East and

West Duvernay Shale basins.

50,000 acres of PrairieSky Duvernay rights are currently unleased in the Pembina area, including 25,000 acres which has only recently become available to industry for

leasing. These lands are mapped to have greater than 10m organic rich thermally mature shale with Tmax data in the 435-448°C range confirming the lands are in the Oil window, and

are on trend with recent drilling and licensing activity.

PrairieSky also has significant 2-D and 3-D seismic data coverage across the area.

The Duvernay formation in the Pembina area ranges from 2,050-2,200m TVD which is shallower than most Duvernay drilling to date, setting up for potentially lower drilling costs than

other Duvernay Horizontal wells within the fairway.

Duvernay Rights

Available for Leasing

Believed to be Ireton cuttings at top

Pembina Cross Section Wells: Geochem Data Pembina Duvernay Geo Chem data from detailed rock analysis shows; Rock Eval S1 &S2 values character of Good to Excellent Petroleum Potential, Hydrogen Index values for Type II/III Kergoen, and Tmax character of Early to Peak stage of Thermal maturity for Oil generation.

GeoChem Sample points

Immature DVRN Shale 13m DVRN Shale 20m DVRN Shale 13m DVRN Shale 2m DVRN Shale Reef Edge 17m DVRN Shale 12m DVRN Shale 21m DVRN Shale 12m DVRN Shale

50 Ohms

50 Ohms

http://ags.aer.ca/publications/chapter-pdfs.htm

Cross Section - Pembina

Geologic Setting

Geo Chem Sampled wells

Tmax Posting

Pembina