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

|      |
|------|
|      |  |  |
| 2014 |   | 1 |

----

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

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |
| Ex-dividend date   |   | Record date |   | Payment date |   | Per share amount |  |
| May 20, 2014       |   | May 22, 2014 |   | May 28, 2014 |   |  | $0.10 |  |
| June 12, 2014      |   | June 16, 2014 |   | June 30, 2014 |   |  | $0.05 |  |
| September 11, 2014 |   | September 15, 2014 |   | September 30, 2014 |   |  | $0.05 |  |
| December 11, 2014  |   | December 15, 2014 |   | December 31, 2014 |   |  | $0.05 |  |

|                     |
|---------------------|
|                     |  |  |
| 2015 Capital Budget |   |
| ($ millions)        | 2015 |  |
| Egypt               | 37.0 |  |
| Yemen               | 0.5 |  |
| Total               | 37.5 |  |

|   |
|---|
|   |  |  |
| 2 |   | 2014 |

----

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

|                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                 |  |  |  |  |  |  |
| ($000s)                                                                                                                                                                                                                                                                                                                         |   | 2014 |  |   | 2013 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                             |   | 146,977 |  |   | 199,508 |  |
| Changes in non-cash working capital                                                                                                                                                                                                                                                                                             |   | (26,488 | ) |   | (60,390 | ) |
| Funds flow from operations*                                                                                                                                                                                                                                                                                                     |   | 120,489 |  |   | 139,118 |  |
| *  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. |

|      |
|------|
|      |  |  |
| 2014 |   | 3 |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s, except per share, price and volume amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2014 |  |   | % Change |   | 2013 |  |   | % Change |   | 2012 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Average production volumes (Bopd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 16,103 |  |   | (12) |   | 18,284 |  |   | 5 |   | 17,432 |  |
| Average sales volumes (Bopd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 16,161 |  |   | (11) |   | 18,193 |  |   | 4 |   | 17,496 |  |
| Average price ($/Bbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 86.99 |  |   | (9) |   | 95.70 |  |   | (3) |   | 99.01 |  |
| Oil sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 513,153 |  |   | (19) |   | 635,496 |  |   | — |   | 633,992 |  |
| Oil sales, net of royalties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 274,594 |  |   | (13) |   | 315,316 |  |   | (1) |   | 317,666 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 146,977 |  |   | (26) |   | 199,508 |  |   | 112 |   | 93,992 |  |
| Funds flow from operations*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 120,489 |  |   | (13) |   | 139,118 |  |   | (9) |   | 153,498 |  |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 1.61 |  |   |  |   | 1.88 |  |   |  |   | 2.09 |  |
| - Diluted per share **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 1.46 |  |   |  |   | 1.70 |  |   |  |   | 2.03 |  |
| Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 11,482 |  |   | (80) |   | 58,512 |  |   | (33) |   | 87,734 |  |
| Net earnings (loss) - diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (1,638 | ) |   | (103) |   | 53,036 |  |   | (40) |   | 87,734 |  |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 0.15 |  |   |  |   | 0.79 |  |   |  |   | 1.20 |  |
| - Diluted per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (0.02 | ) |   |  |   | 0.65 |  |   |  |   | 1.16 |  |
| Dividends paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 18,752 |  |   | 100 |   | — |  |   | — |   | — |  |
| Dividends paid per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 0.25 |  |   | 100 |   | — |  |   | — |   | — |  |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 654,058 |  |   | (3) |   | 675,800 |  |   | 3 |   | 653,425 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 140,390 |  |   | 15 |   | 122,092 |  |   | 47 |   | 82,974 |  |
| Convertible debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 69,093 |  |   | (21) |   | 87,539 |  |   | (11) |   | 98,742 |  |
| Total long-term debt, including current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | — |  |   | — |   | — |  |   | (100) |   | 16,885 |  |
| Debt-to-funds flow ratio***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 0.6 |  |   |  |   | 0.6 |  |   |  |   | 0.8 |  |
| Reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Total Proved (MMBbl)****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 22.1 |  |   | (30) |   | 31.6 |  |   | (4) |   | 32.8 |  |
| Total Proved plus Probable (MMBbl)****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 33.5 |  |   | (26) |   | 45.3 |  |   | (7) |   | 48.7 |  |
|  *  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 "Additional Measures".                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|  **   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 (2013 - $1.84; 2012 - $2.03).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  *** 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 "Additional Measures".                                                                                                                                                                                                                                                                                                                                                                         |
|   **** As determined by the Company's independent reserves evaluator, DeGolyer and MacNaughton Canada Limited ("DeGolyer") of Calgary, Alberta, in their reports dated January 30, 2015,  January 15, 2014 and January 18, 2013 with effective dates of December 31, 2014, December 31, 2013 and December 31, 2012, 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. |

|         |                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Experienced a decrease in total sales volumes of 11% as a result of a 12% decline in sales volumes from Egypt which was partially offset by a 24% increase in sales volumes in Yemen; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported net earnings of $11.5 million, which includes a $71.4 million non-cash impairment loss, a majority of which relates to the write-down of the Company's Yemen assets of $51.5 million.  The remaining impairment loss relates to the Company's East Ghazalat and West Bakr concessions, where impairment losses of $16.6 million and $3.3 million were recognized, respectively.  The Company also experienced a foreign exchange gain of $6.5 million and an unrealized non-cash gain on the fair value of the convertible debenture of $11.6 million; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Achieved funds flow from operations of $120.5 million, which represents a decrease of 13% from 2013.  The decrease in funds flow from operations in 2014 is principally due to a reduction in volumes, a decrease in realized oil prices and increased production and operating costs offset by a one-time break fee payment received on the reverse termination of the agreement to merge with Caracal Energy Inc.  The increase in production and operating expenses was principally related to a significant increase in well servicing costs relating to faulty progressive cavity pumps at West Gharib (which also negatively impacted production), increased fuel costs, and increased costs at West Bakr associated with replacing pump jacks that were at the end of their life cycles; |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | Maintained a strong financial position, reporting a debt-to-funds flow ratio of 0.6 at December 31, 2014; |

|         |                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------|
| • | Spent $107.5 million on capital programs, which was funded entirely with funds flow from operations; |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | Paid a total of $18.8 million ($0.25/share) in dividends; |

|         |                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Collected a total of $233.5 million from EGPC (2013 - $275.2 million), bringing the 2014 year-end accounts receivable balance to $117.6 million, which is its lowest point since the second quarter of 2011; and |

|         |                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Increased the Company's cash and cash equivalent position to $140.4 million as at December 31, 2014, which represents a 15% increase from December 31, 2013. |

|   |
|---|
|   |  |  |
| 4 |   | 2014 |

----

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

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |
|                                             |   |   |   | $ Per Share |  |   |   |
|                                             |   | $000s |  |   | Diluted |  |   | % Variance |  |
| 2013 net earnings                                |   | 58,512 |  |   | 0.78 |  |   |  |
| Cash items                                       |   |  |   |  |   |  |
| Volume variance                                  |   | (64,541 | ) |   | (0.84 | ) |   | (110 | ) |
| Price variance                                   |   | (57,802 | ) |   | (0.70 | ) |   | (99 | ) |
| Royalties                                        |   | 81,621 |  |   | 0.99 |  |   | 139 |  |
| Expenses:                                        |   |   |   |   |   |   |
| Production and operating                         |   | (10,677 | ) |   | (0.13 | ) |   | (18 | ) |
| Cash general and administrative                  |   | (1,654 | ) |   | (0.02 | ) |   | (3 | ) |
| Exploration                                      |   | (533 | ) |   | (0.01 | ) |   | (1 | ) |
| Current income taxes                             |   | 25,812 |  |   | 0.31 |  |   | 44 |  |
| Realized foreign exchange gain (loss)            |   | (64 | ) |   | — |  |   | — |  |
| Interest on long-term debt                       |   | 1,559 |  |   | 0.02 |  |   | 3 |  |
| Other income                                     |   | 9,209 |  |   | 0.11 |  |   | 16 |  |
| Total cash items variance                        |   | (17,070 | ) |   | (0.27 | ) |   | (29 | ) |
| Non-cash items                                   |   |   |   |   |   |   |
| Unrealized foreign exchange gain (loss)          |   | 1,508 |  |   | 0.02 |  |   | 3 |  |
| Depletion and depreciation                       |   | (2,175 | ) |   | (0.03 | ) |   | (4 | ) |
| Unrealized gain (loss) on financial instruments  |   | 6,335 |  |   | 0.08 |  |   | 11 |  |
| Impairment loss                                  |   | (41,302 | ) |   | (0.50 | ) |   | (71 | ) |
| Stock-based compensation                         |   | (650 | ) |   | (0.01 | ) |   | (1 | ) |
| Deferred income taxes                            |   | 6,313 |  |   | 0.08 |  |   | 11 |  |
| Deferred lease inducement                        |   | 7 |  |   | — |  |   | — |  |
| Amortization of deferred financing costs         |   | 4 |  |   | — |  |   | — |  |
| Total non-cash items variance                    |   | (29,960 | ) |   | (0.36 | ) |   | (51 | ) |
| 2014 net earnings                                |   | 11,482 |  |   | 0.15 |  |   | (80 | ) |
| Other items affecting diluted earnings per share |   |   |   |   |   |   |
| Convertible debentures                           |   |   |   | (0.17 | ) |   | (23 | ) |
| 2014 net earnings per share - diluted            |   |   |   | (0.02 | ) |   | (103 | ) |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |
|                                       |   | 2014 |  |   | 2013 |  |
| Dated Brent average oil price ($/Bbl)      |   | 99.03 |  |   | 108.64 |  |
| U.S./Canadian Dollar average exchange rate |   | 1.1048 |  |   | 1.0303 |  |

|      |
|------|
|      |  |  |
| 2014 |   | 5 |

----

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

|   |
|---|
|   |  |  |
| 6 |   | 2014 |

----

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

|                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                             |   | 2014 |   | 2013 |
| ($000s, except per share,                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| price and volume amounts)                                                                                                                                                                                                                                                                        |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |
| Average production volumes (Bopd)                                                                                                                                                                                                                                                                |   | 15,172 |  |   | 15,109 |  |   | 16,112 |  |   | 18,067 |  |   | 18,519 |  |   | 18,197 |  |   | 18,417 |  |   | 18,001 |  |
|                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average sales volumes (Bopd)                                                                                                                                                                                                                                                                     |   | 15,139 |  |   | 15,132 |  |   | 16,485 |  |   | 17,932 |  |   | 18,213 |  |   | 18,109 |  |   | 18,539 |  |   | 17,909 |  |
| Average price ($/Bbl)                                                                                                                                                                                                                                                                            |   | 66.41 |  |   | 88.59 |  |   | 96.14 |  |   | 94.89 |  |   | 96.10 |  |   | 97.18 |  |   | 90.48 |  |   | 99.21 |  |
| Oil sales                                                                                                                                                                                                                                                                                        |   | 92,488 |  |   | 123,317 |  |   | 144,208 |  |   | 153,140 |  |   | 161,035 |  |   | 161,900 |  |   | 152,646 |  |   | 159,915 |  |
| Oil sales, net of royalties                                                                                                                                                                                                                                                                      |   | 52,340 |  |   | 67,848 |  |   | 76,040 |  |   | 78,366 |  |   | 81,196 |  |   | 78,531 |  |   | 76,223 |  |   | 79,366 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                              |   | 113,422 |  |   | (3,123 | ) |   | 33,467 |  |   | 3,211 |  |   | 109,226 |  |   | 22,035 |  |   | 16,347 |  |   | 51,900 |  |
| Funds flow from operations*                                                                                                                                                                                                                                                                      |   | 15,932 |  |   | 28,885 |  |   | 43,185 |  |   | 32,487 |  |   | 36,743 |  |   | 33,483 |  |   | 32,887 |  |   | 36,005 |  |
| Funds flow from operations per share                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Basic                                                                                                                                                                                                                                                                                          |   | 0.21 |  |   | 0.38 |  |   | 0.58 |  |   | 0.44 |  |   | 0.49 |  |   | 0.45 |  |   | 0.45 |  |   | 0.49 |  |
| - Diluted                                                                                                                                                                                                                                                                                        |   | 0.19 |  |   | 0.35 |  |   | 0.57 |  |   | 0.43 |  |   | 0.49 |  |   | 0.44 |  |   | 0.40 |  |   | 0.44 |  |
| Net earnings (loss)                                                                                                                                                                                                                                                                              |   | (50,571 | ) |   | 19,162 |  |   | 26,199 |  |   | 16,692 |  |   | 6,893 |  |   | 16,344 |  |   | 10,397 |  |   | 24,878 |  |
| Net earnings (loss) - diluted                                                                                                                                                                                                                                                                    |   | (63,384 | ) |   | 14,934 |  |   | 26,199 |  |   | 16,692 |  |   | 6,893 |  |   | 16,344 |  |   | (183 | ) |   | 21,427 |  |
| Net earnings per share                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Basic                                                                                                                                                                                                                                                                                          |   | (0.67 | ) |   | 0.26 |  |   | 0.35 |  |   | 0.22 |  |   | 0.09 |  |   | 0.22 |  |   | 0.14 |  |   | 0.34 |  |
| - Diluted                                                                                                                                                                                                                                                                                        |   | (0.77 | ) |   | 0.18 |  |   | 0.35 |  |   | 0.22 |  |   | 0.09 |  |   | 0.22 |  |   | — |  |   | 0.26 |  |
| Dividends paid                                                                                                                                                                                                                                                                                   |   | 3,762 |  |   | 3,761 |  |   | 11,229 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Dividends paid per share                                                                                                                                                                                                                                                                         |   | 0.05 |  |   | 0.05 |  |   | 0.15 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total assets                                                                                                                                                                                                                                                                                     |   | 654,058 |  |   | 720,306 |  |   | 705,859 |  |   | 692,341 |  |   | 675,800 |  |   | 723,708 |  |   | 670,996 |  |   | 672,675 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                        |   | 140,390 |  |   | 77,939 |  |   | 110,057 |  |   | 107,607 |  |   | 122,092 |  |   | 128,162 |  |   | 101,435 |  |   | 112,180 |  |
| Convertible debentures                                                                                                                                                                                                                                                                           |   | 69,093 |  |   | 83,229 |  |   | 88,814 |  |   | 87,765 |  |   | 87,539 |  |   | 85,300 |  |   | 81,830 |  |   | 93,842 |  |
| Total long-term debt, including     current portion                                                                                                                                                                                                                     |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 39,040 |  |   | 15,224 |  |   | 17,097 |  |
| Debt-to-funds flow ratio**                                                                                                                                                                                                                                                                       |   | 0.6 |  |   | 0.6 |  |   | 0.6 |  |   | 0.6 |  |   | 0.6 |  |   | 0.8 |  |   | 0.6 |  |   | 0.7 |  |
|   * 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 "Additional Measures".                                             |
| ** 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 "Additional Measures". |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | Maintained a strong financial position, reporting a debt-to-funds flow ratio of 0.6 at December 31, 2014; |

|         |                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported net loss of $50.6 million, a decrease in net earnings of $57.5 million from the fourth quarter of 2013, which was principally due to a $71.4 million impairment loss on the Company's exploration and producing petroleum properties in Yemen, West Bakr and East Ghazalat; |

|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | Paid a quarterly dividend of $3.8 million ($0.05/share) during the fourth quarter of 2014; |

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Achieved funds flow from operations of $15.9 million, a decrease of 57% from Q4-2013, which was principally due to decreased sales volumes and lower oil prices, combined with increased operating costs; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Experienced a substantial increase in cash flow from operating activities in Q4-2014 as compared to most other quarters in the table above.  This is due to collections on accounts receivable from the Egyptian Government in the amount of $140.1 million during Q4-2014. Collections in the fourth quarter included one and a half cargo liftings, a lump-sum cash payment of $50 million on December 31, and other regular cash payments and offsets; and |

|         |                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Spent $49.7 million on capital programs, which related to the Company's seismic program in the Eastern Desert of Egypt and the drilling of 17 wells during the fourth quarter resulting in 8 oil wells and 9 dry holes. |

|               |
|---------------|
|               |  |  |  |  |  |  |
|          |   | 2014 |  |   | 2013 |  |
| Egypt         |   | 15,767 |  |   | 17,874 |  |
| Yemen         |   | 336 |  |   | 410 |  |
| Total Company |   | 16,103 |  |   | 18,284 |  |

|      |
|------|
|      |  |  |
| 2014 |   | 7 |

----

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

|               |
|---------------|
|               |  |  |  |  |  |  |
|          |   | 2014 |  |   | 2013 |  |
| Egypt         |   | 15,767 |  |   | 17,874 |  |
| Yemen         |   | 394 |  |   | 319 |  |
| Total Company |   | 16,161 |  |   | 18,193 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Consolidated                      |   |   |   |   |   |   |   |   |
|                              |   | 2014 |   |   | 2013 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 513,153 |  |   | 86.99 |  |   | 635,496 |  |   | 95.70 |  |
| Royalties                         |   | 238,559 |  |   | 40.44 |  |   | 320,180 |  |   | 48.22 |  |
| Current taxes                     |   | 63,039 |  |   | 10.69 |  |   | 88,851 |  |   | 13.38 |  |
| Production and operating expenses |   | 76,468 |  |   | 12.96 |  |   | 65,791 |  |   | 9.91 |  |
| Netback                           |   | 135,087 |  |   | 22.90 |  |   | 160,674 |  |   | 24.19 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Egypt                             |   |   |   |   |   |   |   |   |
|                              |   | 2014 |   |   | 2013 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 498,556 |  |   | 86.63 |  |   | 622,790 |  |   | 95.46 |  |
| Royalties                         |   | 235,154 |  |   | 40.86 |  |   | 316,211 |  |   | 48.47 |  |
| Current taxes                     |   | 61,972 |  |   | 10.77 |  |   | 87,583 |  |   | 13.42 |  |
| Production and operating expenses |   | 64,977 |  |   | 11.29 |  |   | 58,215 |  |   | 8.92 |  |
| Netback                           |   | 136,453 |  |   | 23.71 |  |   | 160,781 |  |   | 24.65 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Yemen                             |   |   |   |   |   |   |   |   |
|                              |   | 2014 |   |   | 2013 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 14,597 |  |   | 101.50 |  |   | 12,706 |  |   | 109.13 |  |
| Royalties                         |   | 3,405 |  |   | 23.68 |  |   | 3,969 |  |   | 34.09 |  |
| Current taxes                     |   | 1,067 |  |   | 7.42 |  |   | 1,268 |  |   | 10.89 |  |
| Production and operating expenses |   | 11,491 |  |   | 79.90 |  |   | 7,576 |  |   | 65.07 |  |
| Netback                           |   | (1,366 | ) |   | (9.50 | ) |   | (107 | ) |   | (0.92 | ) |

|   |
|---|
|   |  |  |
| 8 |   | 2014 |

----

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

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        |   | 2014 |   |   | 2013 |   |
| (000s, except per Bbl amounts)              |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| G&A (gross)                             |   | 31,351 |  |   | 5.31 |  |   | 27,257 |  |   | 4.10 |  |
| Stock-based compensation                    |   | 5,914 |  |   | 1.00 |  |   | 5,264 |  |   | 0.79 |  |
| Capitalized G&A and overhead recoveries |   | (7,399 | ) |   | (1.25 | ) |   | (4,952 | ) |   | (0.75 | ) |
| G&A (net)                               |   | 29,866 |  |   | 5.06 |  |   | 27,569 |  |   | 4.14 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |
| (000s)                                   |   | 2014 |  |   | 2013 |  |
| Interest expense                         |   | $ | 6,462 |  |   | $ | 8,021 |  |
| Amortization of deferred financing costs |   | 1,105 |  |   | 1,109 |  |
| Finance costs                            |   | $ | 7,567 |  |   | $ | 9,130 |  |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
|                           |   | 2014 |   |   | 2013 |   |
| (000s, except per Bbl amounts) |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Egypt                          |   | 49,387 |  |   | 8.58 |  |   | 47,659 |  |   | 7.31 |  |
| Yemen                          |   | 1,741 |  |   | 12.11 |  |   | 1,347 |  |   | 11.57 |  |
| Corporate                      |   | 461 |  |   | — |  |   | 408 |  |   | — |  |
|                           |   | 51,589 |  |   | 8.75 |  |   | 49,414 |  |   | 7.44 |  |

|      |
|------|
|      |  |  |
| 2014 |   | 9 |

----

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

|           |
|-----------|
|           |  |  |  |  |  |  |
| ($000s)   |   | 2014 |  |   | 2013 |  |
| Egypt     |   | 105,169 |  |   | 125,004 |  |
| Yemen     |   | 1,537 |  |   | 3,740 |  |
| Corporate |   | 833 |  |   | 426 |  |
| Total     |   | 107,539 |  |   | 129,170 |  |

|    |
|----|
|    |  |  |
| 10 |   | 2014 |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |  |  |  |  |  |  |  |  |
| Proved                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| ($000s, except volumes and $/Bbl amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2014 |  |   | 2013 |  |   | 2012 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 107,539 |  |   | 86,570 |  |   | 51,651 |  |
| Acquisitions *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | — |  |   | 42,600 |  |   | 27,305 |  |
| Dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | — |  |   | — |  |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (16,447 | ) |   | 33,027 |  |   | (4,706 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 91,092 |  |   | 162,197 |  |   | 74,250 |  |
| Reserve additions and revisions (MBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (3,619 | ) |   | 5,542 |  |   | 10,999 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | — |  |   | — |  |   | — |  |
| Total reserve additions (MBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (3,619 | ) |   | 5,542 |  |   | 10,999 |  |
| Average cost per Bbl                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| F&D **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | — |  |   | 21.58 |  |   | 4.27 |  |
| FD&A **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | — |  |   | 29.27 |  |   | 6.75 |  |
| Three-year weighted average cost per Bbl                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |  |   |  |   |  |
| F&D ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 19.93 |  |   | 10.81 |  |   | 8.77 |  |
| FD&A ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 25.34 |  |   | 11.86 |  |   | 8.86 |  |
| *  The 2013 Acquisitions figure consists entirely of acquisition costs on the four new concession agreements that were awarded to the Company in the 2011/2012 EGPC bid round and     ratified into law in 2013.  For the purpose of the FD&A cost per Bbl calculation, the costs have been treated as land acquisition costs.                                                                                                                                                                                                                                                                                                                                                             |
|  **  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.                                                                                                                                                      |
| *** 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.  However, the 2014 capital costs and negative reserve revisions were used to calculate the three-year weighted average F&D and FD&A costs per Bbl. |
| 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.                                                                                                                                                                                                                                                                                                                                                                                                                          |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |  |  |  |  |  |  |  |  |
| Proved Plus Probable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| ($000s, except volumes and $/Bbl amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2014 |  |   | 2013 |  |   | 2012 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 107,539 |  |   | 86,570 |  |   | 51,651 |  |
| Acquisitions *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | — |  |   | 42,600 |  |   | 27,305 |  |
| Dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | — |  |   | — |  |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (21,948 | ) |   | 25,876 |  |   | 1,191 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 85,591 |  |   | 155,046 |  |   | 80,147 |  |
| Reserve additions and revisions (MBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (5,919 | ) |   | 3,233 |  |   | 10,888 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | — |  |   | — |  |   | — |  |
| Total reserve additions (MBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (5,919 | ) |   | 3,233 |  |   | 10,888 |  |
| Average cost per Bbl                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| F&D **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | — |  |   | 34.78 |  |   | 4.46 |  |
| FD&A **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | — |  |   | 47.96 |  |   | 7.36 |  |
| Three-year weighted average cost per Bbl                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |  |   |  |   |  |
| F&D ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 30.06 |  |   | 10.02 |  |   | 7.42 |  |
| FD&A ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 39.10 |  |   | 10.23 |  |   | 7.27 |  |
| *  The 2013 Acquisitions figure consists entirely of acquisition costs on the four new concession agreements that were awarded to the Company in the 2011/2012 EGPC bid round and     ratified into law in 2013.  For the purpose of the FD&A cost per Bbl calculation, the costs have been treated as land acquisition costs.                                                                                                                                                                                                                                                                                                                                                             |
|  **  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.                                                                                                                                                      |
| *** 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.  However, the 2014 capital costs and negative reserve revisions were used to calculate the three-year weighted average F&D and FD&A costs per Bbl. |
| 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.                                                                                                                                                                                                                                                                                                                                                                                                                          |

|      |
|------|
|      |  |  |
| 2014 |   | 11 |

----

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

|                                                                                                                                                                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                            |   | Three-Year |  |   |   |   |   |   |   |
| Proved                                                                                                                                                                                                                                                                                          |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                            |   | Average** |  |   | 2014 |  |   | 2013 |  |   | 2012 |  |
| Netback ($/Bbl)*                                                                                                                                                                                                                                                                                |   | 19.90 |  |   | 17.83 |  |   | 19.64 |  |   | 22.08 |  |
| Proved F&D costs ($/Bbl) ***                                                                                                                                                                                                                                                                |   | 19.93 |  |   | — |  |   | 21.58 |  |   | 4.27 |  |
| Proved FD&A costs ($/Bbl) ***                                                                                                                                                                                                                                                               |   | 25.34 |  |   | — |  |   | 29.27 |  |   | 6.75 |  |
| F&D Recycle ratio ****                                                                                                                                                                                                                                                                      |   | 1.00 |  |   | — |  |   | 0.91 |  |   | 5.17 |  |
| FD&A Recycle ratio ****                                                                                                                                                                                                                                                                     |   | 0.79 |  |   | — |  |   | 0.67 |  |   | 3.27 |  |
| *  Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, G&A (excluding non-cash items), realized foreign exchange (gain) loss,     cash finance costs and current income tax expense per Bbl of production. |
|  **  The negative reserves revisions and costs used in the 2014 calculation were included in the three-year weighted average recycle ratios.                                                                                                                                               |
| *** 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.                                             |
| ****  In 2014, recycle ratios were negative as a result of negative F&D and FD&A costs.  Negative recycle ratios are meaningless and have therefore been presented as nil.                                                                                                              |

|                                                                                                                                                                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                            |   | Three-Year |  |   |   |   |   |   |   |
| Proved Plus Probable                                                                                                                                                                                                                                                                            |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                            |   | Average** |  |   | 2014 |  |   | 2013 |  |   | 2012 |  |
| Netback ($/Bbl)*                                                                                                                                                                                                                                                                                |   | 19.90 |  |   | 17.83 |  |   | 19.64 |  |   | 22.08 |  |
| Proved plus Probable F&D costs ($/Bbl) ***                                                                                                                                                                                                                                                  |   | 30.06 |  |   | — |  |   | 34.78 |  |   | 4.46 |  |
| Proved plus Probable FD&A costs ($/Bbl) ***                                                                                                                                                                                                                                                 |   | 39.10 |  |   | — |  |   | 47.96 |  |   | 7.36 |  |
| F&D Recycle ratio ****                                                                                                                                                                                                                                                                      |   | 0.66 |  |   | — |  |   | 0.56 |  |   | 4.95 |  |
| FD&A Recycle ratio ****                                                                                                                                                                                                                                                                     |   | 0.51 |  |   | — |  |   | 0.41 |  |   | 3.00 |  |
| *  Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, G&A (excluding non-cash items), realized foreign exchange (gain) loss,     cash finance costs and current income tax expense per Bbl of production. |
|  **  The negative reserves revisions and costs used in the 2014 calculation were included in the three-year weighted average recycle ratios.                                                                                                                                               |
| *** 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.                                             |
| ****  In 2014, recycle ratios were negative as a result of negative F&D and FD&A costs.  Negative recycle ratios are meaningless and have therefore been presented as nil.                                                                                                              |

|    |
|----|
|    |  |  |
| 12 |   | 2014 |

----

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

|                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                     |  |  |  |  |  |  |  |  |  |
| Recycle Netback Calculation                                                                                                                                                                                                                         |   |   |   |   |   |   |
| ($000s, except volumes and per Bbl amounts)                                                                                                                                                                                                         |   | 2014 |  |   | 2013 |  |   | 2012 |  |
| Net earnings                                                                                                                                                                                                                                        |   | 11,482 |  |   | 58,512 |  |   | 87,734 |  |
| Adjustments for non-cash items:                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Depletion, depreciation and amortization                                                                                                                                                                                                            |   | 51,589 |  |   | 49,414 |  |   | 46,946 |  |
| Stock-based compensation                                                                                                                                                                                                                            |   | 5,914 |  |   | 5,264 |  |   | 4,502 |  |
| Deferred income taxes                                                                                                                                                                                                                               |   | (9,813 | ) |   | (3,500 | ) |   | (528 | ) |
| Amortization of deferred financing costs                                                                                                                                                                                                            |   | 1,106 |  |   | 1,109 |  |   | 1,265 |  |
| Amortization of deferred lease inducement                                                                                                                                                                                                           |   | 442 |  |   | 449 |  |   | 458 |  |
| Unrealized (gain) loss on commodity contracts                                                                                                                                                                                                       |   | — |  |   | — |  |   | 125 |  |
| Unrealized foreign exchange (gain) loss                                                                                                                                                                                                             |   | (6,476 | ) |   | (4,968 | ) |   | (141 | ) |
| Unrealized (gain) loss on financial instruments                                                                                                                                                                                                     |   | (11,589 | ) |   | (5,254 | ) |   | 425 |  |
| Impairment loss                                                                                                                                                                                                                                     |   | 71,373 |  |   | 30,071 |  |   | 76 |  |
| Other adjustments:                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Other revenue                                                                                                                                                                                                                                       |   | (9,250 | ) |   | — |  |   | — |  |
| Recycle netback*                                                                                                                                                                                                                                    |   | 104,778 |  |   | 131,097 |  |   | 140,862 |  |
| Sales volumes (MBbl)                                                                                                                                                                                                                                |   | 5,878 |  |   | 6,674 |  |   | 6,380 |  |
| Recycle netback per Bbl*                                                                                                                                                                                                                            |   | 17.83 |  |   | 19.64 |  |   | 22.08 |  |
| * Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, G&A (excluding non-cash items), foreign exchange (gain) loss, interest and current income tax expense per Bbl of production. |

|                                                                                                                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                 |  |  |  |  |  |  |
| Sources and Uses of Cash                                                                                                                                                                                        |   |   |   |   |
| ($000s)                                                                                                                                                                                                         |   | 2014 |  |   | 2013 |  |
| Cash sourced                                                                                                                                                                                                    |   |  |   |  |
| Funds flow from operations*                                                                                                                                                                                     |   | 120,489 |  |   | 139,118 |  |
| Increase in long-term debt                                                                                                                                                                                      |   | — |  |   | 23,550 |  |
| Exercise of options                                                                                                                                                                                             |   | 2,562 |  |   | 1,301 |  |
|                                                                                                                                                                                                            |   | 123,051 |  |   | 163,969 |  |
| Cash used                                                                                                                                                                                                       |   |   |   |   |
| Capital expenditures                                                                                                                                                                                            |   | 107,539 |  |   | 129,170 |  |
| Dividends paid                                                                                                                                                                                                  |   | 18,752 |  |   | — |  |
| Deferred financing costs                                                                                                                                                                                        |   | — |  |   | 2,221 |  |
| Transfer to restricted cash                                                                                                                                                                                     |   | 2 |  |   | 764 |  |
| Repayment of long-term debt                                                                                                                                                                                     |   | — |  |   | 42,000 |  |
| Finance costs                                                                                                                                                                                                   |   | 7,289 |  |   | 7,277 |  |
| Other                                                                                                                                                                                                           |   | 1,135 |  |   | 1,788 |  |
|                                                                                                                                                                                                            |   | 134,717 |  |   | 183,220 |  |
|                                                                                                                                                                                                            |   | (11,666 | ) |   | (19,251 | ) |
| Changes in non-cash working capital                                                                                                                                                                             |   | 29,964 |  |   | 58,369 |  |
| Increase (decrease) in cash and cash equivalents                                                                                                                                                                |   | 18,298 |  |   | 39,118 |  |
| Cash and cash equivalents – beginning of year                                                                                                                                                             |   | 122,092 |  |   | 82,974 |  |
| Cash and cash equivalents – end of year                                                                                                                                                                   |   | 140,390 |  |   | 122,092 |  |
| *   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. |

|      |
|------|
|      |  |  |
| 2014 |   | 13 |

----

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

|                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s)                                                                                                                                               |   |   |   | Payment Due by Period 1 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 |   | 45,150 |  |   | 45,150 |  |   | — |  |   | — |  |   | — |  |
| Convertible debentures                                                                                                                                |   | Yes - Liability |   | 69,093 |  |   | — |  |   | 69,093 |  |   | — |  |   | — |  |
| Office and equipment leases 3                                                                                                                         |   | No |   | 8,132 |  |   | 2,500 |  |   | 3,010 |  |   | 1,808 |  |   | 814 |  |
| Minimum work commitments 4                                                                                                                            |   | No |   | 32,366 |  |   | 750 |  |   | 31,616 |  |   | — |  |   | — |  |
| Total                                                                                                                                                 |   |   |   | 154,741 |  |   | 48,400 |  |   | 103,719 |  |   | 1,808 |  |   | 814 |  |
| 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, 2014 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. |

|    |
|----|
|    |  |  |
| 14 |   | 2014 |

----

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

|         |                  |
|---------|------------------|
| • | 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. |

|      |
|------|
|      |  |  |
| 2014 |   | 15 |

----

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

|    |
|----|
|    |  |  |
| 16 |   | 2014 |

----

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

|      |
|------|
|      |  |  |
| 2014 |   | 17 |

----

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

|    |
|----|
|    |  |  |
| 18 |   | 2014 |

----

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

|      |
|------|
|      |  |  |
| 2014 |   | 19 |

----

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

|    |
|----|
|    |  |  |
| 20 |   | 2014 |