OPERATIONS UPDATE

In the second quarter of 2017, field conditions were very cooperative and the Company had timely access to services. As a result, Raging River was able to drill 60.6 net wells, a record level of second quarter activity for the Company.

In the second quarter, of the 60.6 net wells drilled, 16 wells were extended reach horizontals (“ERH”) bringing the total producing ERH well count to 89. Average per well ERH results continue to show 1.8 – 2.0 times improvement over comparable offsetting short laterals. For the remainder of 2017, it is expected that approximately 60% of wells drilled will be ERH.

Average well costs year to date have been $670 thousand for short laterals and $900 thousand blended cost for 3/4 mile and 1 mile ERH wells. Average well costs are on budget with our anticipated 5-7% increase from the lows of 2016. We anticipate costs to remain flat through the remainder of 2017.

GUIDANCE AND OUTLOOK

Raging River’s 2017 capital budget and guidance remains unchanged with targeted annual average production of 22,750 boe/d and capital spending of $340 million.

Two key initiatives that were outlined in the May 8, 2017 press release include the allocation of: (i) $10 million of incremental capital towards waterflood related facilities at Gleneath and Eureka; and (ii) $10 million of capital to new play development. The Company has made good progress on both of these initiatives.

The Company is on track with the waterflood related facility projects which are set to commence in the third quarter of 2017 and to be completed by the year end. Operating cost savings associated with these expenditures are expected to be seen in 2018.

With respect to the new play development initiative, as disclosed in the June 5, 2017, press release, Raging River has been accumulating lands prospective for light oil in the East Duvernay Shale basin in central Alberta. We have continued to make progress with this initiative, and have increased our net land position from 100,000 to 130,000 net acres. All of the lands acquired to date are targeting the oil phase of the basin.

The Company plans to methodically evaluate this East Duvernay Shale opportunity. We are currently surveying and acquiring surface lands in multiple locations in anticipation of drilling the first evaluation well early in the fourth quarter of 2017, with anticipated production results in the first quarter of 2018. Our current plans, contemplate six evaluations wells in 2018, with two wells targeted for the first half of 2018 and the balance for the second half of 2018.

Given the progress that the Company has made towards establishing a meaningful land position in this early stage, light oil resource play, we will continue to evaluate our Duvernay development plans in the context of the prevailing commodity price environment with a goal towards accelerating our pace of activity, should commodity pricing be supportive.

We are currently evaluating anticipated 2018 capital expenditure levels which is expected to be managed to ensure net debt to trailing FFO does not exceed 1.5 times. The board of directors continuously reviews our long term strategic plan and continues to be supportive of balanced per share growth and new play development while maintaining financial flexibility with our balance sheet.