Wimborne - Duvernay Shale Oil Opportunity Play Synopsis

In the last few years there have been several vertical tests and completions in the Duvernay to assess the potential for

producing commercial quantities of oil from the source rock. In late 2014 a Duvernay horizontal well was drilled and

completed in the Huxley area at 100/01-11-034-24W4. The production information is now public and the well is currently

producing oil at the rate of 105 bopd.

The Duvernay source rock in the area is in the oil window. Artis, the current operator in the Wimborne Basin, and Vesta in

the East Shale Basin to the west have shown that horizontal wells and slick water completions in the oil window can yield

significant quantities of oil. PrairieSky Royalty Limited has approximately nine townships of checkerboard fee lands in this

basin available for exploration and development for this play.

Area Township 32 to 37, Ranges 21W4 to 25W4

Active

Operators Artis, EOG/Vesta

Historical

Review The Duvernay shale oil to wet gas play was developed in the Western Shale Basin. Mature Duvernay

source rock is known to be in the oil window in the East Shale Basin and the Wimborne Basin. The

Duvernay in the East Shale Basin was first tested with the EOG Cygnet well 01-20-38-28W4 drilled in

2012. This well has produced 52,260 bbl of 40 degree API oil since 2013.

The Wimborne basin had oil shows in the Duvernay during the earlier phases of exploration for Leduc

and Nisku reservoirs in the area. Forge Petroleum drilled a deep test and cut a core in the Duvernay to

evaluate shale oil potential at 103/11-23-035-25W4 in 2012. This vertical well was perforated and

hydraulically fractured by Huron resources in 2015 and produced 440 bbl of oil on test. The Huxley 01-11

horizontal Duvernay well operated by Artis has produced over 56,300 bbl of oil in 14 months.

Current

Activity No current drilling is taking place; the Artis well drilled in the last year appears to be in a production test

phase with production being ramped up.

Seismic PrairieSky Royalty Limited has several 3-D seismic volumes and fair 2-D line coverage over portions of

the area.

Infrastructure The area has abundant infrastructure for oil and gas production.

Land Base Land Base: There is a large area of checkerboard PrairieSky Royalty Limited all rights and petroleum only

freehold lands.

Play

Parameters

Zone Depth: Duvernay (2000-2500 m TVD)

Reservoir:

Lithology: Duvernay, Organic rich shale (3% TOC) and lime mudstone

Average Porosity: Duvernay (unconventional, 6%)

Average Permeability: Duvernay (300 nD)

Water Saturation: Duvernay (20%)

Net Pay: Duvernay (20 m)

Expected IP30: Duvernay (350 bopd)

Expected EUR per well: 105 Mbbl

Drill Type and Cost: Duvernay (5 MM$)

Completion Type and Cost: Duvernay (5 MM$)

Duvernay Isopach

Well Results: Duvernay Duvernay Cross Section

Duvernay Oil Potential