INVESTOR PRESENTATION TRANSFORMATIONAL ACQUISITION Return Energy Inc. (RTN: TSXV) through its wholly-owned subsidiary, Winslow Resources Inc. has acquired substantially all the assets of Bellatrix Exploration Ltd. on June 1, 2020.…
SPARTAN DELTA CORPORATE STRATEGY Building a Differentiated Energy Company for Global Investors Spartan intends to acquire a diversified portfolio of quality assets that can be restructured, optimized and rebranded, financially or…
PRO FORMA COMPANY Spartan Delta Corp. Capitalization (estimated as at June 1, 2020 ) prior to 100:1 cons. post cons. Spartan Delta Corp. TSX-V RTN SDE Basic Shares Outstanding MM 5,811 58.1 Fully Diluted Shares Outstanding MM 7,768…
DEAL SUMMARY Acquisition of Substantially all Assets of Bellatrix Exploration Ltd. (BXE) from CCAA Asset Summary 25,000 boe/d (30% liquids) of Spirit River and Cardium oil and gas production. Drayton Decline rate of 19%; low…
TRANSACTION METRICS 2.0x NOI Acquisition Multiple on Strip Pricing Transaction Summary Cash Consideration 87.6 million Liabilities Assumed (est.) 21.2 million Total Net Consideration (TV) 108.8 million Effective Date June 1, 2020…
ACQUISITION RESERVES & INVENTORY Identified and Verified Greater than 10 years of Economic Drilling Inventory (1) Reserves Summary Reserve Volumes Reserve Value (BTax) Bellatrix reserves evaluated by InSite Petroleum Gas NGLs Oil…
SPIRIT RIVER GEOLOGY Favorable Geologic Conditions with High Certainty and Robust Inventory Notikewin Falher A Falher B Thick channel sands (25m) Stacked channels up to 40m thick Stacked channels up to 50m thick 6-18% porosity; 1 3mD…
FALHER B TYPE CURVE & ECONOMICS Crown Land Summary: Falher B Spirit River Liquids-Rich Gas. Economics shown for 1.0 mile wells based on drilling to date. Optimization opportunities to drill 2.0 mile location. Frac optimization…
NOTIKEWIN TYPE CURVE & ECONOMICS Crown Land Summary: Notikewin Spirit River Liquids-Rich Gas. Economics shown for 1.0 mile wells based on drilling to date. Optimization opportunities to drill 2.0 mile location. Frac optimization…
INDIGENOUS PARTNERSHIP OCHIESE FIRST NATION First Nation Joint Venture Partners in Development and Day to Day Operations Spartan is pleased to begin what it hopes to be a long and prosperous relationship with the O'Chiese First Nation…
INFRASTRUCTURE & MARKETING Operated and Modern Infrastructure Footprint with Capacity to Grow Volumes Infrastructure in Central Alberta Marketing & Hedging Working interest in three area gas plants (Alder Flats Plant is operated Spartan…
CARDIUM CONSOLIDATION OPPORTUNITIES Low Risk, Repeatable, and Economic Drilling Inventory Spartan now holds a core operating foothold in close proximity to future oil weighted targets which yields incremental G&A and operational…
PEACE RIVER ARCH ASSETS Consolidation Opportunities in the Charlie Lake Oil Play Charlie Lake Light Oil Play Acreage Position Located in prolific Peace River Arch light oil fairway The Charlie Lake is a semi-conventional light oil…
VALUE PROPOSITION Compelling Canadian Energy Equity: Free Cash Flow on Strip, Accretive Valuation and a Strong Balance Sheet (1) (2) Spartan provides a best in class value proposition for energy equity, in addition the macro…
SUMMARY Platform for Acquisitive Growth with Assets in Two Top-Tier Play Fairways Experienced management team that has repeatedly created shareholder value across all variations of the commodity cycle. Sustainable, low decline…
Appendix A: Supplemental Information June 4, 2020 16
MANAGEMENT TEAM & BOARD OF DIRECTORS MANAGEMENT TEAM Richard McHardy Former President, CEO and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration Executive Chairman & Director Fotis Kalantzis Former SVP and co-founder…
HISTORICAL PERFORMANCE OF ACQUIRED ASSETS Assets Have Significant Leverage to Gas Price Recovery Bellatrix's Production Volumes Remained Robust Despite a Cyclical Low in Commodity Prices (1) Daily Production (boe/d) Net Operating…
CONCENTRATED MULTI-ZONE LAND BASE Key Asset Attributes of the Acquisition Stacked Liquids-Rich Gas and Light Oil Opportunities Over 130,000 acres (200 sections) within the Alberta Deep Basin Multiple stacked hydrocarbon saturated…
CARDIUM Low Risk, Repeatable, and Economic Drilling Inventory Over 85,000 acres (132 sections) of Cardium rights (70% WI). Large resource in place with oil and liquids-rich gas targets: Estimated gross recoverable resource of 507…
CARDIUM OIL TYPE CURVE & ECONOMICS Crown Land Summary: Oil prone Cardium present in Brazeau and Baptiste development areas. Historical development on Bellatrix lands did not utilize extended reach horizontals with most recent…
Appendix B: Spartan Track Record June 4, 2020 22
SPARTAN ENERGY SPARTAN OIL SPARTAN EXPLORATION Western Canadas Best-in-Class Performer: Proven Low-Cost Operator From 2010 through 2018, Spartan assembled and developed multiple high-quality assets throughout Central & Southern…
THE SPARTAN DOMESTIC ADVANTAGE Domestic Operational Track Record From 2014 to its sale to Vermilion Energy, Spartan Energy Managements ability to acquire and efficiently integrate assets established itself as the lowest cost operator in…
SPARTAN ENERGY 263% Total Return and 33% CAGR December 2013 May 2018 Overview Relative Performance (Indexed to 100) 300 Spartan Energy completed the recapitalization of Alexander Energy Spartan in December 2013 and shortly after…
HISTORICAL EV/DACF MULTIPLE COMPARISON Spartan Energy Corp. vs Premium Light Oil Peers (1) 16.0x Spartan Energy Corp. Light Oil Peer Avg. (2) 14.0x The Spartan management team has historically traded at, or above, the premium…
SPARTAN OIL 268% Total Return and 128% CAGR June 2011 January 2013 Overview Relative Performance (Indexed to 100) 250 Formed through the spin-out of certain Cardium assets and SE Spartan As a public company, Spartan Saskatchewan…
SPARTAN EXPLORATION 573% Total Return and 80% CAGR January 2010 May 2011 Overview Relative Performance (Indexed to 100) 250 Spartan Exploration was formed in Q1-2008 with a view of Spartan targeting tight oil resources plays in…
ABBREVIATIONS AECO Alberta Energy Company C Meter Station of the NOVA Pipeline System ARO Asset Retirement Obligations b Basic shares outstanding bbl; bbl/d barrel; barrels per day bcf; bcf/d Billion cubic feet of natural gas;…
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