Review of Developments in the Jeanne d’Arc Basin

Jeff O’Keefe P. Eng., P. Geo Director of Resource Management

Chief Conservation Officer jokeefe@cnlopb.ca

www.cnlopb.ca

Safety Moment

Protection of the environment… and Safety from the environment

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• Overview of Jeanne d’Arc Basin • Current Development Projects - From start to now - Use of technology to increase reserves - Short term and long-term focus

• Upcoming Call for Bids in 2016

Outline

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Jeanne d’Arc Basin Significant Discoveries

Hibernia

Terra

Nova

White Rose/

North Amethyst

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Hibernia Field

Photo Credit: HMDC

Original Sanction 552 million bbls (1991 Development Plan) 83 wells 20 years life First Oil: November 1997 Current (all GBS drilling slots are utilized) 39 Oil Producers 13 Water Injectors 7 Dual Water Injectors 5 Gas Injectors 64 GBS Wells 4 Subsea Water Injectors (HSE) 68 Total Total Development wells drilled 88

Oil Reserves (C-NLOPB): Proven & Probable 1644 MMbbls Cumulative Production Data (as of April 30, 2016) 967 MMbbls Remaining Reserves 677 MMbbls

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Hibernia Field - Extended Reach Drilling

Use of Extended Reach Drilling (ERD) with the drilling of two key wells B-16 36 (OPA1) and B16 56 (OPA2) in the A Block

Photo Credit: SPE/IADC 140318 (2011)

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Hibernia Field – Short-term and Long-term Focus

• Maximize recovery from existing 64 GBS slots

• Start up of gas lift 2016

• Start of Enhanced Oil Recovery

- Water Alternating Gas (WAG) planned for 2017

• Focus on Ben Nevis Avalon (BNA) Reservoir

• Exploitation of Catalina Formation • Possible gas commercialization (2020 beyond )

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Terra Nova Field Original Sanction 405 million bbls (1997 Development Plan) 26 wells 20 years life

First Oil:

January 2002

Currently

17 Oil Producers

10 Water Injectors

3 Gas Injectors

30 Wells

Photo Credit: Suncor Energy

Oil Reserves (C-NLOPB) 2015:

Proven & Probable 506 Million bbls

Cumulative Production

(as of April 30, 2016) 383 million bbls

Remaining Reserves 123 million bbls

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Terra Nova Field – Use of Light Intervention Vessel (LIV)

• Lower operating limits than rigs

• Minimized production impact on adjacent well

• Quick deployment on and off each well

Photo Credit: Helix Well Ops: Skandi Constructor

• Services: - Bore hole surveys/logging - Gas lift valve repair - Perforating/ Re-perforating - Setting/pulling plugs - Zonal isolation

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Terra Nova Field - Short Term and Long Term Potential Focus • Focus on Well Interventions and Infill Opportunities

• Enhance Oil Recovery

- WAG program possible for late 2017

• Possible Exploitation of Far East Area

• Analysis of Potential of Hibernia Formation

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White Rose Field Original Sanction 233 MM bbls (2001 Development Plan) 21 wells 15 year production life

First Oil: November 2005

Current

12 Oil Producers

11 Water Injectors

4 Gas Injectors

27 Wells

Photo Credit: Husky Energy

Reserves: Proven & Probable 404 MMbbls

Production to date

( as of April 30, 2016) 216 MMbbls

Remaining reserves 188 MMbbls

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• Provide dry tree drilling and completions

• Use of existing SeaRose FPSO for processing and storage

• Conductor sharing wellhead technology

• Electronic Submersible Pumps (ESPs) as an artificial lift mechanism

White Rose Field –DPA Wellhead Platform

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White Rose/North Amethyst Field – Short Term and Long Term Potential Focus

• Current Focus on White Rose Southern Extension/North Amethyst

Hibernia well and then West White Rose pool

• Infill opportunities in South Avalon pool

• Possible WAG project for South Avalon pool

• Exploitation of Hibernia Formation

• Possible gas commercialization 12

Hebron Field

Photo Credit: ExxonMobil

Original Sanction May 2012 First Oil: Expected Q4, 2017 26 Extended Reach Producers 12 Water Injectors 1 Gas Injector 13 Undesignated for Future Resource

Development 52 Well Slots Reserves: Proven & Probable – 707 Million bbls

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Hebron - New/Upgraded Technology

• Internal Shunt Alternate Path (ISAPT) technology sand screens improve gravel packing of cased and open hole completion wells. • Vessel Internal Electrostatic Coalescer (VIEC) help reduce the water-in-oil content of the oil stream exiting the separator.

Photo Credit: ExxonMobil

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Call for Bids Closes November 9, 2016 3 Parcels Total hectares 354,552

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Summary • Over the last twenty years production has exceeded initial expectations

• New technologies have played an important role in maximizing recovery from each

of the fields

• Each of the development projects has potential upside opportunities within their projects

• Call for bids in the Jeanne d’Arc Basin is scheduled for November 2016

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