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|                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|           |   | TransGlobe 2017 Firm & Contingent Capital ($MM) |   |   |   | Gross Well Count |
|           |   | Development |   | Exploration |   | Total |   | (Wells) |
| Concession     |   | Wells |   | Maint |   | Projects |   | Wells |   | Bonus |   | Seismic |   |   | Devel |   | Explor |   | Total |
| West Gharib    |   | 2.4 |   | 1.3 |   | 2.6 |   | — |   | — |   | — |   | 6.3 |   | — |   | — |   | — |
| West Bakr      |   | 6.7 |   | 1.0 |   | 2.1 |   | — |   | — |   | — |   | 9.8 |   | 2 |   | — |   | 2 |
| NW Gharib      |   | 7.6 |   | — |   | — |   | 6.9 |   | 0.1 |   | — |   | 14.6 |   | 6 |   | 8 |   | 14 |
| SW Gharib      |   | — |   | — |   | — |   | 1.2 |   | 0.2 |   | — |   | 1.4 |   | — |   | 1 |   | 1 |
| South Alamein  |   | — |   | — |   | — |   | 3.1 |   | 0.6 |   | — |   | 3.7 |   | — |   | 1 |   | 1 |
| South Ghazalat |   | — |   | — |   | — |   | — |   | 0.2 |   | — |   | 0.2 |   | — |   | — |   | — |
| NW Sitra       |   | — |   | — |   | — |   | — |   | 0.2 |   | 4.0 |   | 4.2 |   | — |   | — |   | — |
| Egypt          |   | $16.7 |  | $2.3 |  | $4.7 |  | $11.2 |  | $1.3 |  | $4.0 |  | $40.2 |  | 8 |  | 10 |  | 18 |
| Canada         |   | $14.7 |   | $1.5 |   | — |   | — |   | — |   | — |   | $16.2 |   | 8 |   | — |   | 8 |
| 2016 Total     |   | $31.4 |  | $3.8 |  | $4.7 |  | $11.2 |  | $1.3 |  | $4.0 |  | $56.4 |   | 16 |  | 10 |  | 26 |
| Splits (%)     |   | 70% |   | 30% |   | 100% |   | 62% |   | 38% |   | 100% |

|                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                           |  |  |  |  |  |  |
| ($000s)                                                                                                                                                                                                                                                                                                                                   |   | 2016 |  |   | 2015 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                                       |   | (1,065 | ) |   | 77,526 |  |
| Changes in non-cash working capital                                                                                                                                                                                                                                                                                                       |   | (7,296 | ) |   | (86,428 | ) |
| Funds flow from operations1                                                                                                                                                                                                                                                                                                               |   | (8,361 | ) |   | (8,902 | ) |
| 1  Funds flow from operations does not include interest or financing costs.  Interest expense is included in financing costs on the Consolidated Statements of Earnings and     Comprehensive Income.  Cash interest paid is reported as a financing activity on the Consolidated Statements of Cash Flows. |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s, except per share, price and volume amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2016 |  |   | % Change |   | 2015 |  |   | % Change |   | 2014 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| Average production volumes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| Crude oil (bbls/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 12,033 |  |   | (17) |   | 14,511 |  |   | (10) |   | 16,103 |  |
| NGLs and condensate (bbls/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 34 |  |   | 100 |   | — |  |   | — |   | — |  |
| Natural gas (mcf/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 230 |  |   | 100 |   | — |  |   | — |   | — |  |
| Total (boe/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 12,105 |  |   | (17) |   | 14,511 |  |   | (10) |   | 16,103 |  |
| Average sales volumes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |  |  |   |  |   |  |  |   |  |   |  |  |
| Crude oil (bbls/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 11,093 |  |   | (7) |   | 11,977 |  |   | (26) |   | 16,161 |  |
| NGLs and condensate (bbls/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 34 |  |   | 100 |   | — |  |   | — |   | — |  |
| Natural gas (mcf/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 230 |  |   | 100 |   | — |  |   | — |   | — |  |
| Total (boe/d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 11,165 |  |   | (7) |   | 11,977 |  |   | (26) |   | 16,161 |  |
| Average realized sales prices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |
| Crude oil ($/Bbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 30.05 |  |   | (30) |   | 42.93 |  |   | (51) |   | 86.99 |  |
| NGLs and condensate ($/Bbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 17.20 |  |   | 100 |   | — |  |   | — |   | — |  |
| Natural gas ($/Mcf)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 1.81 |  |   | 100 |   | — |  |   | — |   | — |  |
| Total oil equivalent ($/boe)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 29.94 |  |   | (30) |   | 42.93 |  |   | (51) |   | 86.99 |  |
| Inventory (Bbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 1,265,080 |  |   | 37 |   | 923,106 |  |   | 100 |   | — |  |
| Petroleum and natural gas sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 122,360 |  |   | (35) |   | 187,665 |  |   | (63) |   | 513,153 |  |
| Petroleum and natural gas sales, net of royalties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 63,134 |  |   | (32) |   | 92,212 |  |   | (66) |   | 274,594 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (1,065 | ) |   | (101) |   | 77,526 |  |   | (47) |   | 146,977 |  |
| Funds flow from operations1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (8,361 | ) |   | 6 |   | (8,902 | ) |   | (107) |   | 120,489 |  |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (0.12 | ) |   |  |   | (0.12 | ) |   |  |   | 1.61 |  |
| - Diluted per share2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (0.12 | ) |   |  |   | (0.12 | ) |   |  |   | 1.46 |  |
| Net earnings (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (87,665 | ) |   | 17 |   | (105,600 | ) |   | (1,020) |   | 11,482 |  |
| Net earnings (loss) - diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (87,665 | ) |   | 17 |   | (105,600 | ) |   | (6,347) |   | (1,638 | ) |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (1.21 | ) |   |  |   | (1.44 | ) |   |  |   | 0.15 |  |
| - Diluted per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (1.21 | ) |   |  |   | (1.44 | ) |   |  |   | (0.02 | ) |
| Dividends paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | — |  |   | (100) |   | 12,865 |  |   | (31) |   | 18,752 |  |
| Dividends paid per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | — |  |   | (100) |   | 0.175 |  |   | (30) |   | 0.25 |  |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 406,142 |  |   | (11) |   | 455,500 |  |   | (30) |   | 654,058 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 31,468 |  |   | (75) |   | 126,910 |  |   | (10) |   | 140,390 |  |
| Convertible debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 72,655 |  |   | 14 |   | 63,848 |  |   | (8) |   | 69,093 |  |
| Note payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 11,162 |  |   | 100 |   | — |  |   | — |   | — |  |
| Debt-to-funds flow ratio3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (10.0 | ) |   |  |   | (7.2 | ) |   |  |   | 0.6 |  |
| Reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Total Proved (MMBoe)4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 29.9 |  |   | 71 |   | 17.5 |  |   | (21) |   | 22.1 |  |
| Total Proved plus Probable (MMBoe)4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 50.0 |  |   | 74 |   | 28.7 |  |   | (14) |   | 33.5 |  |
|  1  Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to      measures used by other companies.  See "Non-GAAP Financial Measures".                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    2  Funds flow from operations per share (diluted) was not impacted by the convertible debentures for the years ended December 31, 2016 and  December 31, 2015, as the convertible debentures were not dilutive in these years.  Funds flow from operations per share (diluted) prior to the dilutive impact of the convertible debentures was $1.59 for the year ended December 31, 2014.                                                                                                                                                                                                                                                                                                                                     |
|    3   Debt-to-funds flow ratio is a measure that represents total long-term debt (including the current portion) plus convertible debentures over funds flow from operations for the trailing       12 months, and may not be comparable to measures used by other companies.  See "Non-GAAP Financial Measures".                                                                                                                                                                                                                                                                                                                                                                       |
|       4  As determined by the Company's independent reserves evaluator, DeGolyer and MacNaughton Canada Limited ("DeGolyer") of Calgary, Alberta, in their reports dated January 18, 2017, January 15, 2016, and January 30, 2015 with effective dates of December 31, 2016, December 31, 2015, and December 31, 2014, respectively. The reports of DeGolyer have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society), as amended from time to time and National Instrument 51-101. |
|   5  The 2016 information includes the results of the operations of the Harmattan assets in Alberta, Canada from December 20, 2016 to December 31, 2016 (12 days).  The Harmattan assets were acquired in a transaction that closed on December 20, 2016 (effective December 1, 2016).                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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| 2016 |   | 5 |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Experienced a decrease in petroleum and natural gas sales primarily as a result of a 30% decrease in realized oil prices along with a 7% reduction in sales volumes compared to 2015.  The Company's sales price is market driven, and Egypt crude oil is a high sulfur heavy oil which is priced at a discount to Dated Brent.  Dated Brent averaged $43.55 per bbl in 2016, which was a reduction of $8.81 per bbl from prior year; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported a 17% decrease in production volumes as compared to 2015.  In early 2016, the Company intentionally reduced development/operations investment as a result of low oil prices.  Accordingly, production was in decline for the first half of the year.  During the second quarter, the Company finalized a production recovery plan ("PRP") as oil prices were strengthening.  The Company executed on the PRP,  and achieved a year-end exit rate of 13,800 bopd in Egypt; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported a net loss of $87.7 million, which includes a $33.4 million non-cash impairment loss on the Company's exploration and evaluation assets.  Impairment losses related to the SE Gharib and SW Gharib concessions amounted to $15.2 million and $16.4 million, respectively.  The exploration and evaluation assets in these concessions were written down to zero as no commercially viable quantities of oil have been discovered on these lands.  The Company also recognized a $7.0 million unrealized non-cash loss on the fair value of the convertible debenture in 2016; |

|         |                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Recorded negative funds flow from operations of $8.4 million, which was relatively consistent with prior year.  The effect of a $19.1 million decrease in revenues net of royalties and current income taxes was offset by decreased operating expenses ($12.4 million), selling costs ($3.7 million) and cash general and administrative costs ($3.4 million); |

|         |                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Acquired producing oil and gas assets in Canada for total consideration of $59.5 million in a transaction that closed on December 20, 2016; and |

|         |                                                                                               |
|---------|-----------------------------------------------------------------------------------------------|
| • | Spent $26.7 million on capital programs, which was funded through the use of working capital. |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |
|                                            |   |   |   | $ Per Share |  |   |   |
|                                            |   | $000s |  |   | Diluted |  |   | % Variance |  |
| 2015 net earnings                               |   | (105,600 | ) |   | (1.44 | ) |   |  |
| Cash items                                      |   |  |   |  |   |  |
| Volume variance                                 |   | (8,532 | ) |   | (0.13 | ) |   | 6 |  |
| Price variance                                  |   | (56,773 | ) |   | (0.79 | ) |   | 54 |  |
| Royalties                                       |   | 36,227 |  |   | 0.50 |  |   | (34 | ) |
| Expenses:                                       |   |   |   |   |   |   |
| Production and operating                        |   | 12,373 |  |   | 0.17 |  |   | (12 | ) |
| Transportation                                  |   | (12 | ) |   | — |  |   | — |  |
| Selling costs                                   |   | 3,682 |  |   | 0.05 |  |   | (3 | ) |
| Cash general and administrative                 |   | 3,421 |  |   | 0.05 |  |   | (3 | ) |
| Current income taxes                            |   | 10,028 |  |   | 0.14 |  |   | (9 | ) |
| Realized foreign exchange gain (loss)           |   | 405 |  |   | 0.01 |  |   | — |  |
| Realized derivative gain (loss)                 |   | (268 | ) |   | — |  |   | — |  |
| Interest on long-term debt                      |   | 112 |  |   | — |  |   | — |  |
| Other income                                    |   | (10 | ) |   | — |  |   | — |  |
| Total cash items variance                       |   | 653 |  |   | — |  |   | (1 | ) |
| Non-cash items                                  |   |   |   |   |   |   |
| Unrealized foreign exchange gain (loss)         |   | (15,625 | ) |   | (0.22 | ) |   | 15 |  |
| Depletion and depreciation                      |   | 13,698 |  |   | 0.19 |  |   | (13 | ) |
| Unrealized gain (loss) on financial instruments |   | (412 | ) |   | (0.01 | ) |   | — |  |
| Impairment loss                                 |   | 51,947 |  |   | 0.72 |  |   | (49 | ) |
| Stock-based compensation                        |   | 369 |  |   | 0.01 |  |   | — |  |
| Deferred income taxes                           |   | (33,032 | ) |   | (0.46 | ) |   | 31 |  |
| Deferred lease inducement                       |   | (9 | ) |   | — |  |   | — |  |
| Loss on disposition                             |   | 252 |  |   | — |  |   | — |  |
| Amortization of deferred financing costs        |   | 94 |  |   | — |  |   | — |  |
| Total non-cash items variance                   |   | 17,282 |  |   | 0.23 |  |   | (16 | ) |
| 2016 net earnings                               |   | (87,665 | ) |   | (1.21 | ) |   | (17 | ) |

|   |
|---|
|   |  |  |
| 6 |   | 2016 |

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|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |
|  Average reference prices             |   | 2016 |  |   | 2015 |  |
| Crude oil                                  |   |   |   |   |
| Dated Brent average oil price (US$/Bbl)    |   | 43.55 |  |   | 52.36 |  |
| Edmonton Sweet index (US$/bbl)             |   | 40.11 |  |   | 44.91 |  |
| Natural gas                                |   |   |   |   |
| AECO (C$/mmbtu)                            |   | 2.16 |  |   | 2.69 |  |
| U.S./Canadian Dollar average exchange rate |   | 1.3256 |  |   | 1.2790 |  |

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| 2016 |   | 7 |

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|                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                           |   | 2016 |   | 2015 |
| ($000s, except per share,                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| price and volume amounts)                                                                                                                                                                                                                                                                                                      |   | Q-43 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |
| Operations                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average production volumes                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil (bbls/d)                                                                                                                                                                                                                                                                                                             |   | 12,861 |  |   | 11,733 |  |   | 11,472 |  |   | 12,058 |  |   | 13,425 |  |   | 14,683 |  |   | 15,064 |  |   | 14,886 |  |
| NGLs (bbls/d)                                                                                                                                                                                                                                                                                                                  |   | 134 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Natural gas (mcf/d)                                                                                                                                                                                                                                                                                                            |   | 916 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total (boe/d)                                                                                                                                                                                                                                                                                                                  |   | 13,148 |  |   | 11,733 |  |   | 11,472 |  |   | 12,058 |  |   | 13,425 |  |   | 14,683 |  |   | 15,064 |  |   | 14,886 |  |
| Average sales volumes                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil (bbls/d)                                                                                                                                                                                                                                                                                                             |   | 7,018 |  |   | 11,485 |  |   | 11,783 |  |   | 14,126 |  |   | 7,205 |  |   | 13,620 |  |   | 14,251 |  |   | 12,876 |  |
| NGLs (bbls/d)                                                                                                                                                                                                                                                                                                                  |   | 134 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Natural gas (mcf/d)                                                                                                                                                                                                                                                                                                            |   | 916 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total (boe/d)                                                                                                                                                                                                                                                                                                                  |   | 7,305 |  |   | 11,485 |  |   | 11,783 |  |   | 14,126 |  |   | 7,205 |  |   | 13,620 |  |   | 14,251 |  |   | 12,876 |  |
| Average realized sales prices                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil ($/Bbl)                                                                                                                                                                                                                                                                                                              |   | 37.38 |  |   | 34.43 |  |   | 30.27 |  |   | 22.58 |  |   | 32.38 |  |   | 39.35 |  |   | 48.31 |  |   | 46.82 |  |
| NGLs ($/Bbl)                                                                                                                                                                                                                                                                                                                   |   | 12.33 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Natural gas ($/Mcf)                                                                                                                                                                                                                                                                                                            |   | 1.80 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total oil equivalent ($/boe)                                                                                                                                                                                                                                                                                                   |   | 36.45 |  |   | 34.43 |  |   | 30.27 |  |   | 22.58 |  |   | 32.38 |  |   | 39.35 |  |   | 48.31 |  |   | 46.82 |  |
| Inventory (Bbl)                                                                                                                                                                                                                                                                                                                |   | 1,265,080 |  |   | 729,403 |  |   | 706,577 |  |   | 734,872 |  |   | 923,106 |  |   | 350,869 |  |   | 253,325 |  |   | 179,730 |  |
| Petroleum and natural gas sales                                                                                                                                                                                                                                                                                                |   | 24,501 |  |   | 36,376 |  |   | 32,461 |  |   | 29,022 |  |   | 21,460 |  |   | 49,307 |  |   | 62,647 |  |   | 54,251 |  |
| Petroleum and natural gas sales, net of royalties                                                                                                                                                                                                                                                                              |   | 5,217 |  |   | 20,704 |  |   | 19,786 |  |   | 17,427 |  |   | 3,979 |  |   | 24,700 |  |   | 33,960 |  |   | 29,573 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                            |   | 6,355 |  |   | (14,857 | ) |   | 6,011 |  |   | 1,426 |  |   | 6,414 |  |   | 28,741 |  |   | 24,323 |  |   | 18,048 |  |
| Funds flow from operations1                                                                                                                                                                                                                                                                                                    |   | (9,904 | ) |   | 2,347 |  |   | 2,026 |  |   | (2,830 | ) |   | (11,108 | ) |   | (1,497 | ) |   | 6,991 |  |   | (3,288 | ) |
| Funds flow from operations per share                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Basic                                                                                                                                                                                                                                                                                                                        |   | (0.14 | ) |   | 0.03 |  |   | 0.03 |  |   | (0.04 | ) |   | (0.15 | ) |   | (0.02 | ) |   | 0.09 |  |   | (0.04 | ) |
| - Diluted                                                                                                                                                                                                                                                                                                                      |   | (0.14 | ) |   | 0.03 |  |   | 0.03 |  |   | (0.04 | ) |   | (0.15 | ) |   | (0.02 | ) |   | 0.09 |  |   | (0.04 | ) |
| Net earnings (loss)                                                                                                                                                                                                                                                                                                            |   | (33,997 | ) |   | (25,369 | ) |   | (12,050 | ) |   | (16,249 | ) |   | (35,255 | ) |   | (46,568 | ) |   | (12,580 | ) |   | (11,197 | ) |
| Net earnings (loss) - diluted                                                                                                                                                                                                                                                                                                  |   | (38,641 | ) |   | (25,369 | ) |   | (12,050 | ) |   | (16,249 | ) |   | (35,255 | ) |   | (54,159 | ) |   | (12,580 | ) |   | (13,577 | ) |
| Net earnings per share                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Basic                                                                                                                                                                                                                                                                                                                        |   | (0.47 | ) |   | (0.35 | ) |   | (0.17 | ) |   | (0.23 | ) |   | (0.49 | ) |   | (0.64 | ) |   | (0.17 | ) |   | (0.15 | ) |
| - Diluted                                                                                                                                                                                                                                                                                                                      |   | (0.49 | ) |   | (0.35 | ) |   | (0.17 | ) |   | (0.23 | ) |   | (0.49 | ) |   | (0.68 | ) |   | (0.17 | ) |   | (0.17 | ) |
| Dividends paid                                                                                                                                                                                                                                                                                                                 |   | — |  |   | — |  |   | — |  |   | — |  |   | 1,805 |  |   | 3,594 |  |   | 3,703 |  |   | 3,763 |  |
| Dividends paid per share                                                                                                                                                                                                                                                                                                       |   | — |  |   | — |  |   | — |  |   | — |  |   | 0.025 |  |   | 0.05 |  |   | 0.05 |  |   | 0.05 |  |
|                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                   |   | 406,142 |  |   | 414,363 |  |   | 433,013 |  |   | 441,624 |  |   | 455,500 |  |   | 501,808 |  |   | 599,744 |  |   | 614,345 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                      |   | 31,468 |  |   | 100,405 |  |   | 124,308 |  |   | 122,031 |  |   | 126,910 |  |   | 126,874 |  |   | 122,961 |  |   | 126,101 |  |
| Convertible debentures                                                                                                                                                                                                                                                                                                         |   | 72,655 |  |   | 74,854 |  |   | 70,639 |  |   | 66,506 |  |   | 63,848 |  |   | 65,682 |  |   | 74,421 |  |   | 65,511 |  |
| Note payable                                                                                                                                                                                                                                                                                                                   |   | 11,162 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Debt-to-funds flow ratio2                                                                                                                                                                                                                                                                                                      |   | (10.0 | ) |   | (7.8 | ) |   | (5.3 | ) |   | (7.9 | ) |   | (7.2 | ) |   | 3.6 |  |   | 1.5 |  |   | 0.8 |  |
|   1 Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to measures used by other companies.  See "Non-GAAP Financial Measures".                                                              |
|   2  Debt-to-funds flow ratio is a measure that represents total long-term debt (including the current portion) plus convertible debentures over funds flow from operations from the trailing 12 months and may not be comparable to measures used by other companies.  See "Non-GAAP Financial Measures". |
|   3  The Q4-2016 information includes the results of the operations of the Harmattan assets in Alberta, Canada from December 20, 2016 to December 31, 2016 (12 days).  The Harmattan assets were acquired in a transaction that closed on December 20, 2016 (effective December 1, 2016).                  |

|         |                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported an increase in production volumes of 12% as compared to Q3-2016, which was primarily a result of the Company's PRP.  Production increases were achieved mainly in the West Bakr concession, where a 1,030 bopd increase was achieved quarter over quarter; |

|         |                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Did not receive a cargo lifting in Egypt, therefore did not sell any Egyptian entitlement crude oil.  This resulted in significantly lower sales and sales volumes as compared to previous quarters, along with a build in crude oil inventory of 0.5 million barrels; |

|         |                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported a net loss of $34.0 million, which includes an $18.5 million non-cash impairment loss on the Company's exploration and evaluation assets; and |

|         |                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Recorded negative funds flow from operations of $9.9 million, mainly because the Company did not sell any Egypt entitlement oil during the quarter. |

|   |
|---|
|   |  |  |
| 8 |   | 2016 |

----

|        |
|--------|
|        |  |  |
|   |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |
|                       |   | 2016 |  |   | 2015 |  |
| Egypt crude oil (bbls/d)   |   | 12,015 |  |   | 14,466 |  |
| Yemen crude oil (bbls/d)   |   | — |  |   | 45 |  |
| Canada crude oil (bbls/d)  |   | 18 |  |   | — |  |
| Canada NGLs (bbls/d)       |   | 34 |  |   | — |  |
| Canada natural gas (mcf/d) |   | 230 |  |   | — |  |
| Total Company (boe/d)      |   | 12,105 |  |   | 14,511 |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |
|                       |   | 2016 |  |   | 2015 |  |
| Egypt crude oil (bbls/d)   |   | 11,075 |  |   | 11,935 |  |
| Yemen crude oil (bbls/d)   |   | — |  |   | 42 |  |
| Canada crude oil (bbls/d)  |   | 18 |  |   | — |  |
| Canada NGLs (bbls/d)       |   | 34 |  |   | — |  |
| Canada natural gas (mcf/d) |   | 230 |  |   | — |  |
| Total Company (boe/d)      |   | 11,165 |  |   | 11,977 |  |

|                                                                                                                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |
| Consolidated netback                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                    |   | 2016 |   |   | 2015 |   |
| (000s, except per Boe amounts)1                                                                                                                                                                                                                         |   | $ |  |   | $/Boe |  |   | $ |  |   | $/Bbl |  |
| Petroleum and natural gas sales                                                                                                                                                                                                                         |   | 122,360 |  |   | 29.94 |  |   | 187,665 |  |   | 42.93 |  |
| Royalties and other                                                                                                                                                                                                                                     |   | 59,226 |  |   | 14.49 |  |   | 95,453 |  |   | 21.83 |  |
| Current taxes                                                                                                                                                                                                                                           |   | 15,455 |  |   | 3.78 |  |   | 25,483 |  |   | 5.83 |  |
| Operating expenses                                                                                                                                                                                                                                      |   | 40,323 |  |   | 9.87 |  |   | 52,696 |  |   | 12.05 |  |
| Transportation                                                                                                                                                                                                                                          |   | 12 |  |   | — |  |   | — |  |   | — |  |
| Selling costs                                                                                                                                                                                                                                           |   | 875 |  |   | 0.21 |  |   | 4,557 |  |   | 1.04 |  |
| Netback                                                                                                                                                                                                                                                 |   | 6,469 |  |   | 1.59 |  |   | 9,476 |  |   | 2.18 |  |
| 1    The Company achieved the netbacks above on sold barrels of oil equivalent for the year ended December 31, 2016 and December 31, 2015 (these figures do not include TransGlobe's Egypt entitlement barrels held as inventory at December 31, 2016). |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
| Canada                         |   |   |   |   |   |   |   |   |
|                           |   | 2016 |   |   | 2015 |   |
| (000s, except per Boe amounts) |   | $ |  |   | $/Boe |  |   | $ |  |   | $/Boe |  |
| Crude oil sales                |   | 266 |  |   | 40.38 |  |   | — |  |   | — |  |
| Natural gas sales              |   | 152 |  |   | 10.83 |  |   | — |  |   | — |  |
| NGL sales                      |   | 214 |  |   | 17.20 |  |   | — |  |   | — |  |
| Total sales                    |   | 632 |  |   | 19.12 |  |   |  |  |   |  |  |
| Royalties                      |   | 132 |  |   | 3.99 |  |   | — |  |   | — |  |
| Operating expenses             |   | 269 |  |   | 8.14 |  |   | — |  |   | — |  |
| Transportation                 |   | 12 |  |   | 0.36 |  |   | — |  |   | — |  |
| Netback                        |   | 219 |  |   | 6.63 |  |   | — |  |   | — |  |

|      |
|------|
|      |  |  |
| 2016 |   | 9 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                              |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |
| Egypt                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                         |   | 2016 |   |   | 2015 |   |
| (000s, except per Bbl amounts)1                                                                                                                                                                                                              |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                                                                                                                                                                                                                                    |   | 121,728 |  |   | 30.03 |  |   | 187,055 |  |   | 42.94 |  |
| Royalties                                                                                                                                                                                                                                    |   | 59,094 |  |   | 14.58 |  |   | 95,330 |  |   | 21.88 |  |
| Current taxes                                                                                                                                                                                                                                |   | 15,455 |  |   | 3.81 |  |   | 25,284 |  |   | 5.80 |  |
| Production and operating expenses                                                                                                                                                                                                            |   | 40,054 |  |   | 9.88 |  |   | 48,041 |  |   | 11.03 |  |
| Selling costs                                                                                                                                                                                                                                |   | 875 |  |   | 0.22 |  |   | 4,557 |  |   | 1.05 |  |
| Netback                                                                                                                                                                                                                                      |   | 6,250 |  |   | 1.54 |  |   | 13,843 |  |   | 3.18 |  |
| 1    The Company achieved the netbacks above on sold barrels of oil for the year ended December 31, 2016 and December 31, 2015 (these figures do not include TransGlobe's Egypt entitlement barrels held as inventory at December 31, 2016). |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        |   | 2016 |   |   | 2015 |   |
| (000s, except per Bbl amounts)              |   | $ |  |   | $/Boe |  |   | $ |  |   | $/Bbl |  |
| G&A (gross)                             |   | 18,716 |  |   | 4.58 |  |   | 24,466 |  |   | 5.60 |  |
| Stock-based compensation                    |   | 2,418 |  |   | 0.59 |  |   | 2,787 |  |   | 0.64 |  |
| Capitalized G&A and overhead recoveries |   | (3,579 | ) |   | (0.88 | ) |   | (5,917 | ) |   | (1.35 | ) |
| G&A (net)                               |   | 17,555 |  |   | 4.29 |  |   | 21,336 |  |   | 4.89 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |
| (000s)                                   |   | 2016 |  |   | 2015 |  |
| Interest expense                         |   | $ | 5,344 |  |   | $ | 5,425 |  |
| Amortization of deferred financing costs |   | 724 |  |   | 849 |  |
| Finance costs                            |   | $ | 6,068 |  |   | $ | 6,274 |  |

|    |
|----|
|    |  |  |
| 10 |   | 2016 |

----

|        |
|--------|
|        |  |  |
|   |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
|                           |   | 2016 |   |   | 2015 |   |
| (000s, except per Bbl amounts) |   | $ |  |   | $/Boe |  |   | $ |  |   | $/Bbl |  |
| Egypt                          |   | 28,386 |  |   | 7.00 |  |   | 42,366 |  |   | 9.73 |  |
| Canada                         |   | 303 |  |   | 9.16 |  |   | — |  |   | — |  |
| Corporate                      |   | 488 |  |   | — |  |   | 509 |  |   | — |  |
|                           |   | 29,177 |  |   | 7.14 |  |   | 42,875 |  |   | 9.81 |  |

|    |                                                                     |
|----|---------------------------------------------------------------------|
| 1. | Expiry or impending expiry of lease with no expectation of renewal; |

|    |                                                                          |
|----|--------------------------------------------------------------------------|
| 2. | Lack of budget or plans for substantive expenditures on further E&E; |

|    |                                                                                            |
|----|--------------------------------------------------------------------------------------------|
| 3. | Discontinuance of E&E activities due to a lack of commercially viable discoveries; and |

|    |                                                                                                             |
|----|-------------------------------------------------------------------------------------------------------------|
| 4. | Carrying amount of E&E asset is unlikely to be recovered in full from a successful development project. |

|      |
|------|
|      |  |  |
| 2016 |   | 11 |

----

|        |
|--------|
|        |  |  |
|   |

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |
| ($000s)               |   | 2016 |  |   | 2015 |  |
| Egypt                 |   | 26,658 |  |   | 44,747 |  |
| Property acquisitions |   | 59,475 |  |   | — |  |
| Corporate             |   | — |  |   | 155 |  |
| Total                 |   | 86,133 |  |   | 44,902 |  |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |  |  |  |  |  |
| Proved                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
| ($000s, except volumes and $/Boe amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2016 |  |   | 2015 |  |   | 2014 |  |
| Total capital expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 26,658 |  |   | 42,902 |  |   | 107,539 |  |
| Acquisitions1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 59,475 |  |   | 2,000 |  |   | — |  |
| Dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | — |  |   | (1,500 | ) |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 60,084 |  |   | (9,024 | ) |   | (16,447 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 146,217 |  |   | 34,378 |  |   | 91,092 |  |
| Reserve additions and revisions (MBoe)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 5,138 |  |   | 990 |  |   | (3,619 | ) |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 11,667 |  |   | (300 | ) |   | — |  |
| Total reserve additions (MBoe)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 16,805 |  |   | 690 |  |   | (3,619 | ) |
| Average cost per Boe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| F&D2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 4.02 |  |   | 34.22 |  |   | — |  |
| FD&A2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 8.70 |  |   | 49.83 |  |   | — |  |
| Three-year weighted average cost per Boe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |  |   |  |   |  |
| F&D2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 58.03 |  |   | 83.93 |  |   | 19.93 |  |
| FD&A2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 19.58 |  |   | 110.07 |  |   | 25.34 |  |
| 1   The 2016 Acquisitions figure consists entirely of acquisition costs on the Canadian assets. The 2015 Acquisitions figure relates to acquisition costs on the NW Sitra concession agreement that was awarded to the Company in the 2014 EGPC bid round and ratified into law in 2015.                                                                                                                                                                                                                                                                                  |
|   2    In 2014, F&D and FD&A costs were negative.  The negative F&D and FD&A costs are driven primarily by negative reserve revisions, most of which relate to the Company's West Gharib concession (specifically, the Lower Nukhul reserves in the Arta/East Arta fields) and the reclassification of Yemen reserves to contingent resources.  The Company did not make sufficient new discoveries to offset the negative technical revisions, resulting in negative F&D and FD&A costs which are meaningless on a per Bbl basis. |
| Note: The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.                                                                                                                                                                                                                                                                                                |

|    |
|----|
|    |  |  |
| 12 |   | 2016 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |  |  |  |  |  |  |  |  |
| Proved Plus Probable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| ($000s, except volumes and $/Boe amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2016 |  |   | 2015 |  |   | 2014 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 26,658 |  |   | 42,902 |  |   | 107,539 |  |
| Acquisitions1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 59,475 |  |   | 2,000 |  |   | — |  |
| Dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | — |  |   | (1,500 | ) |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 110,102 |  |   | (30,741 | ) |   | (21,948 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 196,235 |  |   | 12,661 |  |   | 85,591 |  |
| Reserve additions and revisions (MBoe)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 4,906 |  |   | 1,498 |  |   | (5,919 | ) |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 20,744 |  |   | (936 | ) |   | — |  |
| Total reserve additions (MBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 25,650 |  |   | 562 |  |   | (5,919 | ) |
| Average cost per Boe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| F&D2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 3.66 |  |   | 8.03 |  |   | — |  |
| FD&A2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 7.65 |  |   | 22.53 |  |   | — |  |
| Three-year weighted average cost per Boe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  |   |  |   |  |
| F&D3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 231.05 |  |   | — |  |   | 30.06 |  |
| FD&A3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 14.51 |  |   | — |  |   | 39.10 |  |
| 1   The 2016 Acquisitions figure consists entirely of acquisition costs on the Canadian assets. The 2015 Acquisitions figure relates to acquisition costs on the NW Sitra concession agreement that was awarded to the Company in the 2014 EGPC bid round and ratified into law in 2015.                                                                                                                                                                                                                                                                                                                                                                          |
|   2    In 2014, F&D and FD&A costs were negative.  The negative F&D and FD&A costs are driven primarily by negative reserve revisions, most of which relate to the Company's West Gharib concession (specifically, the Lower Nukhul reserves in the Arta/East Arta fields) and the reclassification of Yemen reserves to contingent resources.  The Company did not make sufficient new discoveries to offset the negative technical revisions, resulting in negative F&D and FD&A costs which are meaningless on a per Bbl basis.                                                                                         |
|          3     In 2015, the three-year weighted average F&D and FD&A costs on a 2P basis were negative.  The negative F&D and FD&A costs are driven primarily by negative reserve revisions               in 2014.  The Company did not make sufficient new discoveries to offset the negative technical revisions in 2014, resulting in negative F&D and FD&A costs which are meaningless               on a per Bbl basis. |
| Note: The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.                                                                                                                                                                                                                                                                                                                                                                                        |

|                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                           |   | Three-Year |  |   |   |   |   |   |   |
| Proved                                                                                                                                                                                                                                                                                                                         |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                           |   | Average2 |  |   | 2016 |  |   | 2015 |  |   | 2014 |  |
| Netback ($/Boe)1                                                                                                                                                                                                                                                                                                               |   | 5.47 |  |   | (3.12 | ) |   | (3.12 | ) |   | 17.83 |  |
| Proved F&D costs ($/Boe)3                                                                                                                                                                                                                                                                                                  |   | 58.03 |  |   | 4.02 |  |   | 34.22 |  |   | — |  |
| Proved FD&A costs ($/Boe)3                                                                                                                                                                                                                                                                                                 |   | 19.58 |  |   | 8.70 |  |   | 49.83 |  |   | — |  |
| F&D Recycle ratio4                                                                                                                                                                                                                                                                                                         |   | 0.09 |  |   | — |  |   | — |  |   | — |  |
| FD&A Recycle ratio4                                                                                                                                                                                                                                                                                                        |   | 0.28 |  |   | — |  |   | — |  |   | — |  |
| 1   Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, selling, G&A (excluding non-cash items), realized foreign exchange    (gain) loss, cash finance costs and current income tax expense per Bbl of production.        |
|   2   The negative reserves revisions and costs used in the 2014 calculation were included in the three-year weighted average recycle ratios.                                                                                                                                                         |
|   3    In 2014, F&D and FD&A costs were negative, which was driven primarily by negative reserve revisions.  Negative F&D and FD&A costs are meaningless on a per Bbl basis; therefore, the Company has presented these values as nil.                                           |
|     4    In 2016 and 2015, recycle ratios were negative as a result of negative netbacks.  Negative recycle ratios are meaningless and have therefore been presented as nil.  The negative netbacks for 2016 and 2015 were included in the three-year weighted average recycle ratios. |

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|                                                                                                                                                                                                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                          |   | Three-Year |  |   |   |   |   |   |   |
| Proved Plus Probable                                                                                                                                                                                                                                                                                                          |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   | Average2 |  |   | 2016 |  |   | 2015 |  |   | 2014 |  |
| Netback ($/Boe)1                                                                                                                                                                                                                                                                                                              |   | 5.47 |  |   | (3.12 | ) |   | (3.12 | ) |   | 17.83 |  |
| Proved plus Probable F&D costs ($/Boe)3                                                                                                                                                                                                                                                                                   |   | 231.05 |  |   | 3.66 |  |   | 8.03 |  |   | — |  |
| Proved plus Probable FD&A costs ($/Boe)3                                                                                                                                                                                                                                                                                  |   | 14.51 |  |   | 7.65 |  |   | 22.53 |  |   | — |  |
| F&D Recycle ratio4                                                                                                                                                                                                                                                                                                        |   | 0.02 |  |   | — |  |   | — |  |   | — |  |
| FD&A Recycle ratio4                                                                                                                                                                                                                                                                                                       |   | 0.38 |  |   | — |  |   | — |  |   | — |  |
|  1    Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, selling, G&A (excluding non-cash items), realized foreign exchange   (gain) loss, cash finance costs and current income tax expense per Bbl of production. |
|  2   The negative reserves revisions and costs used in the 2014 calculation were included in the three-year weighted average recycle ratios.                                                                                                                                                              |
|  3    In 2014, F&D and FD&A costs were negative, which was driven primarily by negative reserve revisions.  Negative F&D and FD&A costs are meaningless on a per Bbl basis; therefore, the Company has presented these values as nil.                                                |
|      4    In 2016 and 2015, recycle ratios were negative as a result of negative netbacks.  Negative recycle ratios are meaningless and have therefore been presented as nil.  The negative netbacks for 2016 and 2015 were included in the three-year weighted average ratios.  |

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| 2016 |   | 13 |

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|                                                                                                                                                                                                                                                                            |  |  |  |  |  |  |  |  |  |
| Recycle Netback Calculation                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| ($000s, except volumes and per Boe amounts)                                                                                                                                                                                                                                |   | 2016 |  |   | 2015 |  |   | 2014 |  |
| Net earnings                                                                                                                                                                                                                                                               |   | (87,665 | ) |   | (105,600 | ) |   | 11,482 |  |
| Adjustments for non-cash items:                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| Depletion, depreciation and amortization                                                                                                                                                                                                                                   |   | 29,177 |  |   | 42,875 |  |   | 51,589 |  |
| Stock-based compensation                                                                                                                                                                                                                                                   |   | 2,418 |  |   | 2,787 |  |   | 5,914 |  |
| Deferred income taxes                                                                                                                                                                                                                                                      |   | (3,009 | ) |   | (36,041 | ) |   | (9,813 | ) |
| Amortization of deferred financing costs                                                                                                                                                                                                                                   |   | 724 |  |   | 849 |  |   | 1,106 |  |
| Amortization of deferred lease inducement                                                                                                                                                                                                                                  |   | (95 | ) |   | (104 | ) |   | 442 |  |
| Realized (gain) loss on commodity contracts                                                                                                                                                                                                                                |   | 956 |  |   | 688 |  |   | — |  |
| Unrealized foreign exchange (gain) loss                                                                                                                                                                                                                                    |   | 4,292 |  |   | (11,333 | ) |   | (6,476 | ) |
| Unrealized (gain) loss on financial instruments                                                                                                                                                                                                                            |   | 7,027 |  |   | 6,615 |  |   | (11,589 | ) |
| Impairment loss                                                                                                                                                                                                                                                            |   | 33,426 |  |   | 85,373 |  |   | 71,373 |  |
| Loss on corporate disposal                                                                                                                                                                                                                                                 |   | — |  |   | 252 |  |   | — |  |
| Other adjustments:                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| Other revenue                                                                                                                                                                                                                                                              |   | — |  |   | — |  |   | (9,250 | ) |
| Recycle netback1                                                                                                                                                                                                                                                           |   | (12,749 | ) |   | (13,639 | ) |   | 104,778 |  |
| Sales volumes (MBoe)                                                                                                                                                                                                                                                       |   | 4,086 |  |   | 4,372 |  |   | 5,878 |  |
| Recycle netback per Boe1                                                                                                                                                                                                                                                   |   | (3.12 | ) |   | (3.12 | ) |   | 17.83 |  |
| 1 Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, selling, G&A (excluding non-cash items), realized foreign exchange (gain) loss, interest and current income tax expense per Boe of production. |

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| 14 |   | 2016 |

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|                                                                                                                                                                                                                                |  |  |  |  |  |  |
| Sources and Uses of Cash                                                                                                                                                                                                       |   |   |   |   |
| ($000s)                                                                                                                                                                                                                        |   | 2016 |  |   | 2015 |  |
| Cash sourced                                                                                                                                                                                                                   |   |  |   |  |
| Funds flow from operations1                                                                                                                                                                                                    |   | (8,361 | ) |   | (8,902 | ) |
| Transfer from restricted cash                                                                                                                                                                                                  |   | — |  |   | 688 |  |
| Proceeds from corporate dispositions                                                                                                                                                                                           |   | — |  |   | 1,500 |  |
| Increase in note payable                                                                                                                                                                                                       |   | 11,162 |  |   | — |  |
| Exercise of options                                                                                                                                                                                                            |   | — |  |   | 208 |  |
|                                                                                                                                                                                                                           |   | 2,801 |  |   | (6,506 | ) |
| Cash used                                                                                                                                                                                                                      |   |   |   |   |
| Capital expenditures                                                                                                                                                                                                           |   | 26,658 |  |   | 44,902 |  |
| Dividends paid                                                                                                                                                                                                                 |   | — |  |   | 12,865 |  |
| Transfer to restricted cash                                                                                                                                                                                                    |   | 17,462 |  |   | — |  |
| Property acquisitions                                                                                                                                                                                                          |   | 59,475 |  |   | — |  |
| Purchase of common shares                                                                                                                                                                                                      |   | — |  |   | 12,221 |  |
| Finance costs                                                                                                                                                                                                                  |   | 5,288 |  |   | 5,779 |  |
| Other                                                                                                                                                                                                                          |   | 2,212 |  |   | 1,635 |  |
|                                                                                                                                                                                                                           |   | 111,095 |  |   | 77,402 |  |
|                                                                                                                                                                                                                           |   | (108,294 | ) |   | (83,908 | ) |
| Changes in non-cash working capital                                                                                                                                                                                            |   | 12,852 |  |   | 70,428 |  |
| Increase (decrease) in cash and cash equivalents                                                                                                                                                                               |   | (95,442 | ) |   | (13,480 | ) |
| Cash and cash equivalents – beginning of year                                                                                                                                                                            |   | 126,910 |  |   | 140,390 |  |
| Cash and cash equivalents – end of year                                                                                                                                                                                  |   | 31,468 |  |   | 126,910 |  |
| 1   Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital, and may not be comparable to measures used by other companies. |

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| 2016 |   | 15 |

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|                                                                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s)                                                                                                                                               |   |   |   | Payment Due by Period1 2 |
|                                                                                                                                                  |   | Recognized |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   | in Financial |   | Contractual |  |   | Less than |  |   |   |  |   |   |  |   | More than |  |
|                                                                                                                                                  |   | Statements |   | Cash Flows |  |   | 1 year |  |   | 1-3 years |  |   | 4-5 years |  |   | 5 years |  |
| Accounts payable and accrued liabilities                                                                                                              |   | Yes - Liability |   | 24,529 |  |   | 24,529 |  |   | — |  |   | — |  |   | — |  |
| Convertible debentures                                                                                                                                |   | Yes - Liability |   | 72,655 |  |   | 72,655 |  |   | — |  |   | — |  |   | — |  |
| Note payable                                                                                                                                          |   | Yes - Liability |   | 11,162 |  |   | 5,581 |  |   | 5,581 |  |   | — |  |   | — |  |
| Office and equipment leases3                                                                                                                          |   | No |   | 3,732 |  |   | 1,200 |  |   | 1,556 |  |   | 976 |  |   | — |  |
| Minimum work commitments4                                                                                                                             |   | No |   | 17,986 |  |   | 8,335 |  |   | 9,651 |  |   | — |  |   | — |  |
| Total                                                                                                                                                 |   |   |   | 130,064 |  |   | 112,300 |  |   | 16,788 |  |   | 976 |  |   | — |  |
| 1 Payments exclude ongoing operating costs, finance costs and payments made to settle derivatives.                                               |
| 2 Payments denominated in foreign currencies have been translated at December 31, 2016 exchange rates.                                           |
| 3 Office and equipment leases include all drilling rig contracts.                                                                                |
| 4 Minimum work commitments include contracts awarded for capital projects and those commitments related to exploration and drilling obligations. |

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| 16 |   | 2016 |

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|         |                  |
|---------|------------------|
| • | Financial risks; |

|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | Market risks (such as commodity price, foreign exchange and interest rates); |

|         |               |
|---------|---------------|
| • | Credit risks; |

|         |                  |
|---------|------------------|
| • | Liquidity risks; |

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | Operational risks including capital, operating and reserves replacement risks; |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | Safety, environmental, social and regulatory risks; and |

|         |                  |
|---------|------------------|
| • | Political risks. |

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| 2016 |   | 17 |

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| 18 |   | 2016 |

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| 2016 |   | 19 |

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| 20 |   | 2016 |

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| 2016 |   | 21 |