SOG Corporate presentation Mar 2018 v4 Symbol TSX‐V: SOG Shares (basic) 1 46.4MM Working capital 1 $13MM Convertible debt 1,2 $106MM Share price (March 7, 2018) $1.01/sh 52‐week

(TSX‐V: SOG)

CorporatePresentation

April 2018

April 2018 Strategic Oil & Gas

AdvisoryThis presentation should be read in conjunction with the Company’s Annual Information Form and the Consolidated Financial Statements and Management’s Discussion and Analysis as filed on SEDAR.

FORWARD LOOKING STATEMENTS: This presentation includes projections that are derived from certain assumptions with respect to (i) wells drilled and drilling success; (ii)production; (iii) future capital expenditures;(iv) future reserves ; (v) cash flow and (vi) operating costs. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

Certain information regarding the Company set forth in this document, including management’s assessment of the Company’s future plans and operations, the planning and development of certain prospects,production estimates, reserve estimates, undeveloped land holdings, capital expenditures and the timing thereof and the total future capital required to bring undeveloped proved and probable reserves ontoproduction, and expanded production growth may constitute forward‐looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. Theseforward‐looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company’s control, including without limitation, risks associated with oil and gas exploration,development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition, the lack of availability of qualifiedpersonnel or management, inability to obtain drilling rigs or other services, increasing capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performingas expected, stock market volatility, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economicconditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they areinterpreted and enforced, increased competition and fluctuations in foreign exchange or interest rates. Readers are cautioned that the foregoing list of factors is not exhaustive. The Company’s actual results,performance or achievement could differ materially from those expressed in, or implied by, these forward‐looking statements and, accordingly, no assurance can be given that any of the events anticipated by theforward‐looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. The foregoing and all subsequent forward‐looking statements, whether written ororal, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information of these and other factors that could affect theCompany’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or the Company’s website(www.sogoil.com).

The forward‐looking statements contained in this document are made as of the date on the front page and the Company assumes no obligation to update publicly or to revise any of the included forward‐lookingstatements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

TEST AND INITIAL PRODUCTION RESULTS: Any references in this presentation to initial or test production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of therates at which such wells will continue production. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production. Initial production or test rates are not necessarilyindicative of long‐term performance of the relevant well or fields or of ultimate recovery of hydrocarbons. Test volumes are quoted on a raw basis before shrinkage on natural gas volumes. Total corporateproduction volumes include natural gas shrinkage.DRILLING LOCATIONS: This presentation discloses drilling locations in three categories: (i) locations assigned proved reserves, (ii) locations assigned probable reserves and (iii) unbooked locations. Locations assignedreserves are derived from the Company’s independent reserves evaluation as of December 31, 2017. Unbooked locations are internal estimates based on the Company’s existing prospective acreage, current welllengths and an estimated number of wells drilled per section. Unbooked locations do not have reserves assigned. Of the 600 drilling locations identified by the Company’s growth plan, 21 were assigned provedreserves, 27 were assigned probable reserves, and the remainder are unbooked locations. Unbooked locations have been identified by management based on application of industry standard geological, geophysical,engineering, production and reservoir information. There is no certainty that all unbooked locations will be drilled or that, if drilled, these locations will result in additional production and reserves for the Company.While certain unbooked locations are in close proximity to existing production, the majority are not in close proximity to existing producing wells and there is uncertainty as to the quality of the potential reservesand production to be obtained by drilling these locations.GROWTH PLANS: Growth plans presented in this presentation are based on an internal conceptual development plan. The actual number of wells drilled and development undertaken in future periods will depend oncapital availability, regulatory issues, seasonal restrictions, commodity prices, actual drilling results, cash flows, accessibility of equipment and qualified personnel and other factors.BOE MEASUREMENT: "Boe“ means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil . Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based onan energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.ORIGINAL OIL IN PLACE: Original Oil in Place(“OOIP”) are the equivalent to Total Petroleum Initially In Place(“TPIIP") as defined by the COGEH Guidelines and are not reserves. There is no certainty that it will becommercially viable to produce any portion of OOIP except to the extent they are subsequently classified as proved or probable reserves.

TYPE CURVES: Production type curves are based on average proved and probable reserves assigned to undeveloped drilling locations in west Marlowe by the Company’s external reserves evaluators, McDaniel &Associates (“McDaniel”) at the Company’s year‐end reserves evaluation effective December 31, 2017.

2


CORPORATE SNAPSHOT

3

Trading Symbol TSX‐V: SOG

Shares (basic) 1 46.4MM

Working capital 1 $13MM

Convertible debt 1,2 $106MM

Share price (March 7, 2018) $1.01/sh

52‐week range $0.59 ‐ $3.80Enterprise value (March 7, 2018) $140MM

Insider ownership (basic) 67%

Corporate production 3 2,400 boe/d

Reserves (P+P, Dec 31/17) 16.0 MMBoe

Oil Hedging (WTI price, US$/bbl): Feb‐Sep 2018: 500 bbl/d @ $62.00Mar‐Aug 2018: 100 bbl/d @ $64.20

• No bank debt• Tightly held ownership group• Reserves booked on only 15% of Muskeg acreage• $500+ million in tax pools

1. As at December 31, 20172. 8% coupon, 90% convertible at $1.80/share3. Average for Q4 2017

ENTERPRISE VALUE IS A SMALL FRACTION OF RESOURCE POTENTIALENTERPRISE VALUE IS A SMALL FRACTION OF RESOURCE POTENTIAL


Q1/2018 GOALS & RESULTS

• First‐Quarter 2018 Goals• Restore / Improve Muskeg Well

Productivity• Improve Well Cost Profile

• Test Well Design Changes for a Future Goal of $3.1MM/well

• First‐Quarter 2018 Results• 2 Wells Successfully Drilled,

Completed, & On‐Production Ahead of Schedule• Revised Well Targeting• Drilling: Monobore Well Design • Completion: NCS System with Alternate

Frac Fluid

• 01‐02 Exceeding Type Curve; • 05‐01 Continues to Clean‐Up

4


WEST RIM MUSKEG TYPE CURVE AND ECONOMICS

5

WestRim

Inboard*

WestRim

Outboard*

Capital Cost ($MM/well) $3.1 $3.1

Reserves/well (MBOE) 330 250

Reserves/well ‐ Oil (MBbl) 185 158

Reserves /well‐ Gas (MMCF) Sales 870 560

NPV10 BTAX ($MM) 2.9 1.7

ROR (%) 72 39

F&D ($/BOE) 9.4 12.3

Payout (yrs) 1.3 2.2

* Reserves, commodity prices and costs from McDaniel YE‐2017 Reserves Report. See “Advisory” slide in this presentation.

0

50

100

150

200

250

300

350

400

450

500

0 6 12 18 24 30 36

(BOED)

Months on Production

West InboardWest Outboard


• 100% working interest • All petroleum & natural gas rights• Connected via pipeline, highway & rail• High quality conventional reservoir• 440,000 net acres of land

MARLOWE: PREMIER NORTHERN LIGHT OIL ASSET

6

HIGHWAY & RAIL

Strategic Lands

2 BILLION BARRELS OF LIGHT OIL IN MUSKEG ZONE ON STRATEGIC LAND BASE2 BILLION BARRELS OF LIGHT OIL IN MUSKEG ZONE ON STRATEGIC LAND BASE


MUSKEG: PRIMARY DEVELOPMENT ZONE

7

• Large structural trap created by the impact of an Asteroid ~100 million years ago that is charged with light oil and gas in six stacked horizons

• Muskeg zone is currently the key focus

ZoneProspectiveSections

Net Pay(feet)

OOIP/Sec(MMBBL)*

OOIP(MMBBL)*

Slave Point 140 100 12 1,680Sulphur Point 130 30 8 1,040Muskeg 200 30 10 2,000

* Company’s Internal Estimates

Slave Point

Sulphur Point

Muskeg

Single Pad Multi‐Formation Development

OVER 2 BILLION BARRELS OF LIGHT OIL IN THE MUSKEG ZONEOVER 2 BILLION BARRELS OF LIGHT OIL IN THE MUSKEG ZONE


MUSKEG – HIGH QUALITY CONVENTIONAL RESERVOIR

EXTENSIVE AND CONTINUOUSEXTENSIVE AND CONTINUOUS

Net Pay (m)

1300m TVD/‐670m SSNet Pay: 10.5m, Avg Por: 11%11.8 MMbbls/Section OOIP

1180m TVD/‐780m SSNet Pay: 12m, Avg Por: 7.5%7.8 MMbbls/Section OOIP

14‐18‐122‐22

W5

12‐21‐120‐23

W5

Porosity0%20%

Porosity0%20%

8


MUSKEG ‐ HIGH IMPACT OIL TEST RESULTS (Prior Press Released Numbers)

9

Q1 2018 DRILLING PROGRAM IS ALONG A HIGH IMPACT MUSKEG CORRIDORQ1 2018 DRILLING PROGRAM IS ALONG A HIGH IMPACT MUSKEG CORRIDOR

###

###

###

WELL 6‐24420 BBL/D




WELL 14‐35 460 BBL/D

Legend

Muskeg wells

Future locations

2018 Q1 locations

2016 wells

2014 wells

2013 wells



DELINEATING THE MUSKEG ZONE

10

Long‐Term Production Spread Across 12‐Miles

Production Data Normalized to Producing Days – Downtime Removed


• 2017 wells were drilled into the lower portions of the Muskeg Stack• Q1/2018 wells focused on the middle of the Muskeg Stack (C dolomites)

RESTORING TYPE CURVE PERFORMANCE

2017 WELLS WERE DRILLED LOW; Q1/2018 WELLS WERE DRILLED CENTRAL2017 WELLS WERE DRILLED LOW; Q1/2018 WELLS WERE DRILLED CENTRAL

A

B

C1C2C3

DEF

14‐18‐122‐22W5

AB

C1C2C3

DEF

2017 Target Zone

Q1 2018 Target Zone

Muskeg Stack

Base of Stack

11


Q1/2018 INITIAL WELL RESULTS COMPARED TO WEST MARLOWE WELLS

12

West Marlowe

Initial Per‐Stage Results• 01‐02 Exceeds Offset Wells

• 13/30 Stages Open / Effective

• 05‐01 Continues to Cleanup• 19/30 Stages Open / Effective

April 2018 Strategic Oil & Gas 13

Initial Per‐Stage Results• 01‐02 Exceeds Offset Wells

• 13/30 Stages Open / Effective

• 05‐01 Continues to Cleanup• 19/30 Stages Open / Effective

West Rim

Q1/2018 INITIAL WELL RESULTS COMPARED TO WEST RIM WELLS


OWNED & OPERATED PROCESSING FACILITIES

14

• 100% owned and operated

• Underutilized oil & gas plant capacity for future growth

• Sour gas and water handling on site

• Connected to oil & natural gas sales pipelines

• Minimal infrastructure capital required to accommodate growth to ~ 7,000 boe/d

9‐17 PLANT11 MMcf/d raw gas9,000 bbl/d oil6,000 bbl/d water

1‐28 PLANT1,000 bbl/d oil2,000 bbl/d water


YEAR ROUND OPERATIONS

15

Spring Summer

Fall Winter


BUILDING BLOCKS FOR SUCCESS

16

36 Muskeg wells drilled, 600 drilling locations

67% insider ownership, experienced Board

Pipeline connected, rail access

Operated facilities with excess capacity

100% owned and operated

Multi‐zone light oil development

Large contiguous land position


CORPORATE INFORMATION

17

MANAGEMENT TEAMCody Smith COO & Interim CEOAaron Thompson CFOBarbara Joy VP Land

RESERVE ENGINEERS McDaniel & Associates Consultants

AUDITORS Deloitte LLP

LEGAL Norton Rose Fulbright Canada LLP

BANKING Royal Bank of Canada

HEAD OFFICE 1100, 645 7th Ave SWCalgary, Alberta, T2P 4G8Phone: 403‐767‐9000Fax: 403‐767‐9122Email: [email protected]: www.sogoil.com

BOARDThomas Claugus Chairman

Jim Riddell CEO, Paramount Resources

Richard Skeith Partner, Norton Rose FulbrightMichael Graham Chairman, Saguaro ResourcesJohn Harkins CEO, Greenfields PetroleumRodger Hawkins Independent businessmanMichael Watzky Partner, BP Energy Partners

Documents

SOG Corporate presentation Mar 2018 v4 Symbol TSX‐V: SOG Shares (basic) 1 46.4MM Working capital 1 $13MM Convertible debt 1,2 $106MM Share price (March 7, 2018) $1.01/sh 52‐week