Home About Us Operations Responsibility Investors Contact Us 2020 YEAR-END RESERVES The reserves data presented herein is based upon an evaluation by NSAI and summarizes PetroShale’s crude oil and natural gas reserves and the net present value of future net revenue for these reserves using forecast prices and costs. All references to reserves are to 100% working interest Company reserves, meaning PetroShale’s working interest reserves before consideration of royalty interests. The reserve report has been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in National Instrument 51‑101 (“NI 51-101”) and CSA Staff Notice 51‑324. No attempt was made to evaluate possible reserves. Please see PetroShale’s Annual Information Form for the year ended December 31, 2020 for complete reserves disclosure. Working Interest and Net Company Interest Reserves Reserves Tight Oil Shale Gas (2) Natural Gas Liquids (2) BOE Working Interest Net Working Interest Net Working Interest Net Working Interest Net Reserves Category (Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mbbl) (Mbbl) (Mboe) (Mboe) PROVED: Developed Producing 17,187.8 14,033.3 23,777.8 19,351.0 4,355.0 3,560.2 25,505.8 20,818.7 Developed Non-Producing 391.0 324.5 298.0 250.0 62.8 52.8 503.5 419.0 Undeveloped 23,420.5 19,196.2 21,224.3 17,340.2 3,893.9 3,199.4 30,851.8 25,285.6 TOTAL PROVED 40,999.3 33,554.0 45,300.2 36,941.2 8,311.7 6,812.5 56,861.0 46,523.4 PROBABLE 10,771.8 8,751.0 13,334.4 10,839.5 2,455.7 2,004.3 15,450.0 12,561.9 TOTAL PROVED PLUS PROBABLE 51,771.2 42,304.9 58,634.6 47,780.6 10,767.4 8,816.8 72,311.0 59,085.1 (1) Columns may not add due to rounding (2) All of our shale gas and natural gas liquids reserves are produced in solution with our tight oil. The natural gas liquid reserves are recovered from our natural gas reserves downstream of the wellhead. Net Present Value of Future Net Revenue ($ US) Before Income Taxes Discounted at (%/year) Reserves Category 0% ($US 000s) 5% ($US 000s) 10% ($US 000s) 15% ($US 000s) 20% ($US 000s) PROVED: Developed Producing 477,966.1 345,903.3 271,273.2 224,608.9 193,035.7 Developed Non-Producing 7,514.4 5,543.4 4,259.2 3,389.2 2,776.3 Undeveloped 520,398.4 310,283.7 200,508.9 136,726.7 96,619.2 TOTAL PROVED 1,005,878.9 661,730.5 476,041.3 364,724.8 292,431.2 PROBABLE 352,242.1 208,923.0 140,368.5 102,634.3 79,599.4 TOTAL PROVED PLUS PROBABLE 1,358,121.0 870,653.5 616,409.8 467,359.1 372,030.6 (1) Columns may not add due to rounding. As a reporting issuer in Canada, PetroShale is required to report its reserves and NPV10 using forecast pricing and costs, as stipulated under NI 51-101. The forecast prices reflected in the NPV10 are included in the Company’s 2020 Annual Information Form, which is filed on SEDAR and posted to the Company’s website, and are based on an average of the prices decks from GLJ Ltd, Sproule Associates Limited and McDaniel & Associates Consultants Ltd. Reserves Reconciliation Total (Mboe) Total Proved Probable Total Proved Plus Probable December 31, 2019 57,451.0 13,016.3 70,467.3 Discoveries – – – Extensions and Improved Recovery – – – Technical Revisions(1) 4,810.0 2,682.1 7,492.1 Acquisitions(2) 209.6 68.9 278.6 Dispositions – – – Economic Factors (877.9) (317.4) (1,195.3) Production (4,731.7) – (4,731.7) December 31, 2020 56,861.0 15,450.0 72,311.0 (1) Technical revisions include removal of locations based on development permitting and activity of our operators on non-operated properties. Additionally, it reflects changes to reserves based on estimates from further production information gathered in 2020 from our wells and analogous wells near our lands, and revisions to interest on certain non-operated wells. (2) The acquisitions amount is the estimate of reserves at December 31, 2020, adjusted for production associated with the acquired properties from the related acquisition date to December 31, 2020. (3) Columns may not add due to rounding. DENVER OFFICE 303 E. 17th Avenue, Suite 940 Denver, CO 80203 USA Tel: 1.303.297.1407 CALGARY OFFICE Suite 3230, 421 – 7th Avenue SW Calgary Alberta Canada T2P 4K9 Tel: 1.403.266.1717 CONTACT US Send us an email Emergency Number: 1.701.456.5665 © Copyright - PetroShale - Home About Us Operations Responsibility Investors Contact Us Advisories