Shell’s Appalachia operations are located in the predominately rural northern and western portions of Pennsylvania, where we drill and produce dry gas from the Marcellus and Utica formations. Shell entered the area in 2010 after acquiring 750,000 leasehold acres from East Resources. We have since grown our acreage leasehold to approximately 850,000 acres primarily in Pennsylvania, with additional acreage in Ohio and New York.

Our OperationsWe are one of the largest leaseholders and producers over a nine-county area in the Appalachia Basin. Our Appalachian asset is divided into three focus areas: Tioga, Mercer and Bradford. We operate over 300 dry gas wells, predominately in Tioga County, and 1,500 shallow oil wells mainly in the Bradford area.

In 2014 and 2015, Shell discovered that the Utica/Point Pleasant shale was also very prolific. We plan to drill additional wells in 2016, mainly in the Utica acreage.

As part of our Operating Principles, we strive to conduct our operations in a manner that protects air quality and controls fugitive emissions. In Appalachia, we have taken a number of voluntary measures to reduce methane emissions, including the installation of the latest air-emissions reduction technology on 90% of our surface facilities.

Shell is also a founding member of the Center for Sustainable Shale Development (CSSD), an independent organization that developed 15 performance standards, in conjunction with non-governmental organizations and nonprofits, to address air and water concerns. Shell Appalachia was certified in early 2015 for meeting all of the CSSD performance standards.

SHELL IN APPALACHIA

Our Appalachia operations are located in a very beautiful, mountainous region of Pennsylvania.

Shell in the CommunityShell supports a wide range of social investment programs in the Appalachia area. In 2015, we spent more than $637,000 on community, environmental and educational initiatives.

These initiatives promote science, technology, engineering and math education to help develop students to meet future workforce needs through the Tioga County Foundation. Shell is also a major sponsor of the Pennsylvania Envirothon, an academic competition designed to cultivate a desire in students to learn more about our natural environment.

As a proponent of health and safety, we also have partnered with local first responders to provide training and equipment and have supported road safety initiatives.

Asset Contact Information: URL: www.shell.us/appalachia

Community Feedback Number for Western Pennsylvania: 1-877-842-7308

Community Feedback Number for Tioga, Lycoming, Bradford and Potter counties: 1-570-662-9415

Email: appalachia@shell.com

Onsite workers prepare the site for hydraulic fracturing activities.

HORNELL

WILLIAMSPORTBROOKVILLE

ALTOONA

TIOGA

MERCER

BRADFORD

LEWISBURG

PITTSBURGH

99

80

86

79

86

2

95

1

3

93

RED DEER

CAROLINE / CAB

EDMONTON

JUMPING POUND

WATERTON

FORT MACLEOD

BANFF CALGARY

DEEP BASIN EAST

FOX CREEK

HINTON

EDSON

ATHBASCA RIVER WHITECOURT

43

32

16

97

97

29

PRINCEGEORGE

FORT ST JOHN

GRANDEPRAIRIE

PINKMOUNTAIN

MCLEODLAKE

GROUNDBIRCH

DAWSONCREEK

MEXICO

GROUNDBIRCH ARGENTINA DEEP BASIN APPALACHIA FOOTHILLS PERMIAN

ZAPALA

LAS LAJAS

NEUQUEN

CATRIEL

ANELO151

232

22

40

40

VACA MUERTA

APPALACHIA

FOX CREEKGROUNDBIRCH

FOOTHILLS

ROCKYMOUNTAIN

HOUSE

DEEP BASIN

PERMIAN

HAYNESVILLE

VACA MUERTA

FORTSTOCKTON

VAN HORN

ROSWELL

CARLSBADLASCRUCES

EL PASO

MIDLAND& ODESSA

PERMIAN

10

10

20

25

SHALES UNCONVENTIONAL ENERGY