Corporate Presentation September 2016 For discussion purposes only and does not constitute an offer to sell Past performance is not indicative of future results Actual production may not be as projected
Long-Term Strategy Target Fractured and Dislocated Markets Long-Life Conventional and Unconventional Producing Oil Assets Modern Production, Development and Recovery Techniques to Underperforming Assets Repeatable and…
Portfolio of High-Quality Assets for Long-Term Growth Symbol/Exchange - JCO/TSX.V & JROOF/OTC Shares Outstanding - 64,701,012 Equity Capitalization - CAD 30,732,980 Inside Ownership - 22.5% Average WI / NRI - 39% / 31%…
Recent Highlights Record Growth Through Acquisitions o Jerichos patient capital base has allowed the Company to take advantage of the historically low oil price environment and financial stress in the oil & gas space creating value…
Execution of Strategy Record Growth Through Acquisitions Partnership Gross Production (BOE/D) 800 742 753 700 616 600 500 400 300 168 200 120 100 - Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Well Downtime With a Focus on Cost Control…
Reserve Growth Record Growth Through Acquisitions With a Focus on Cost Control o Jericho deployed 6.29mm of capital in 2015 (90% Acquisitions / 10% Capex) o Incremental Proved Developed barrels of oil equivalent: 760k o…
Significant Financial Strength New USD30mm Joint Revolving Credit Facility: Total Debt to Partnership o In conjunction with Private Family Partner, JCO entered into a USD30mm Joint Revolving Credit Facility (Aug-16) 10.0 o Initial…
Jerichos Go-Forward Strategy o Disciplined growth based on sustainable crude oil supply/demand fundamentals and price o WTI above 25 - Maintain flexibility o Mid-to-Upper 40s - Arrest decline rates and continue workover Program…
2016 Jerichos Opportunity For discussion purposes only and does not constitute an offer to sell Past performance is not indicative of future results Actual production may not be as projected 10
Current Environment: Contrarian Opportunity o Capital Flight: Limited access to Capital (debt and equity markets) for oil & gas industry o Banks are no-longer allowing companies to kick the Debt Can down the road as hedges roll off (Less…
Where do we find (option) value: Central Oklahoma o Capital flight is swiftest from the upper level, higher-cost basins: The Mississippian Basin has seen the steepest year over year decline (%) in the Baker Hughes Rotary Rig Count…
Where do we find (option) value: Central Oklahoma o On both a relative and absolute basis, Central Oklahoma offers value investment opportunities with three high-target plays (Hunton, Miss Lime, Woodford) o The capital flight has…
Pareto Principle: Illustrative (Option) Value Potential Reserves Value: Pareto Principle 450 400 350 Reserves Value (mm) 300 Jerichos 250 Purchase Price Value 200 Probable & Possible 150 100 PUD 50 PDP 0 40 50…
The Appendix For discussion purposes only and does not constitute an offer to sell Past performance is not indicative of future results Actual production may not be as projected
Current Environment: Fundamentals o An anchoring bias around 100/bbl (and resulting capital allocation decisions) exacerbated by inexpensive and readily available capital for U.S. oil & gas, produced oversupply o Increased spending…
Current Environment: Sentimentworse than fundamentals o Supply/demand dynamics have pushed oil prices down, but negative short-term sentiment may now be distorting long-term crude fundamentals Fear has driven long-term investors out of…
Capital Allocation: Jericho Acquisition Drivers o Acquisitions will be largely underpinned by PDP value at current strip pricing with limited PUD, Probable or Possible value o Producing assets with positive field level cash flow o…
Anti-Herd Mentality o Against the backdrop of lower oil prices, expiring hedges, borrowing base re- determinations and all but closed capital markets for the oil & gas industry what now o While other companies simply manage…
2015 Reserves Overview Year End 2015 Reserves Note: For Jericho Ownership breakdown please see appendix slide Acquisition Partnership Reserve data based on 12/31/2015 reserve report by Cawley, Gillespie & Associates, Inc. Sproule…
Acreage Overview For discussion purposes only and does not constitute an offer to sell Past performance is not indicative of future results Actual production may not be as projected 21
Stratigraphic Column and Type Log Key Points: o Multiple productive zones in entire stratigraphic column o Historic vertical production largely targeted Pennsylvanian stratigraphic plays or Ordovician structural traps o Significant…
Acquisition Partnership (Illustrative Ownership) Jericho Oil (JCO) Private Family (PF) 50% 50% AcquisitionCo 100% WI/NRI Asset A o Strategic Partnership Advantages: o Accelerate growth strategy during current low-oil price…
Contact Us o Corporate Headquarters o Director, Acquisitions & Divestitures 604.343.4534 Ryan Breen 750 W Pender Street, Suite 350 918.986.7617 Vancouver, BC, V6C 2T7 o Regional Headquarters o Director, Investor Relations 321…
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