PP

MANNVILLE DEVELOPMENT

Producing Properties

All Standard Disclaimers Apply & Seller Rights Retained


MANNVILLE DEVELOPMENT

EAST-CENTRAL ALBERTA PROJECT

U MANNVILLE; REX OIL; SPIRIT RIVER

BONNIE GLEN; FERRYBANK

-HONEYSUCKLE AREAS

REX OIL (16° API)

Proven Play. Successful Offset Operators

LOW RISK; LONG HORIZONTALS

100% OPERATED WI. ~70/30 Crown & FH

ORIGINAL OIL IN PLACE: 370 MMBBLS

Current Prod: 20 BOPD & 146 MCFD

Behind Pipe Rex Oil: 170 BOPD & 450 MCFD

Shallow Gas: 100% Operated WI

Upside: 1.0 MMCFD bypassed Belly River

Pipeline/Processing Infrastructure In Place

SEEKING ASSET SALE

PP 11153DV

QUICK OVERVIEW
Forge Oil & Gas Limited has made the decision to consolidate its limited capital on a single core property, and as such the Greater Bonnie Glen Rex/Spirit River oil and shallow gas assets are being made available for divestiture. Forge will consider all proposals with a preference to sell the assets located Southwest Of Edmonton in East-Central Alberta for cash.

These are two distinct, but strategically related divestiture packages:

1---
EMERGING HORIZONTAL REX OIL PLAY (16° API) – Upper Mannville (Rex/Spirit River) 370 MMbbls OOIP and 4 hz wells drilled (2 on production, 2 awaiting solution gas tie-in)
--Large Land Base Of 45 Contiguous Sections in 3 Strike areas: Bonnie Glen, Ferrybank & Honeysuckle;
--8 well/section Rex Oil Horizontal development drilling opportunity;
--New generation Horizontal Drill and Completion techniques yielding excellent economics;
--Proven Horizontal play w/ successful offsetting producing wells drilled by numerous operators
--Existing oil production in the Honeysuckle area;
--Standing Rex oil wells in Bonnie Glen awaiting solution gas tie-in.
--Production: 45 boe/d, immediate tie-in and bypassed pay drilling upside gain of 245 boe/day;
--LLR of 4.0;

The plan continues to be derisked and developed by offset operators.

2---
ESTABLISHED SHALLOW GAS PRODUCTION BASE with drilling and tie-in upside
--Production: 300 mcf/d (50 boe/d), immediate tie-in and bypassed pay drilling upside gain of 167 boe/day;
--Producing gas wells in Bonnie Glen and Ferrybank;
--LLR of 1.4
--Combined LLR of 1.9 can be increased to over 2.0 by tieing-in two existing drilled and completed Rex oil wells


ADDITIONAL NARRATIVE---
Forge has assembled a large contiguous land base of 45 Sections with 100% Working Interest in an emerging Upper Manville (Rex/Spirit River Group) Oil Play (sweet, 16° API) and 57 sections with 100% Working Interest of Upper Cretaceous Natural Gas rights in the Bonnie Glen, Honeysuckle, Leduc- Woodbend and Ferrybank strike areas of Central Alberta.

TECHNICAL SUPPORT---
Forge has undertaken significant geotechnical & engineering studies to better understand the Upper Mannville Rex oil play and operations. The Discovered Petroleum Initially in Place (DPIIP) Resource Potential of ~370 MMbbls on Forge lands in three strike areas has been corroborated by Independent Evaluation Auditors, Deloitte. The majority of the Forge Oil Resource Potential is in the Bonnie Glen area (54%) with the Honeysuckle area containing 31% and the Leduc-Woodbend area 15%.

EARLY HISTORY---
The Upper Mannville Formations in the greater Bonnie Glen Area southwest of Edmonton, consists of stacked fluvial channels comprised of medium to fine-grained lithic sands that can be mapped over several townships at depths between ~1,375-1,450 mTVD. The channel sands range in thickness from 5-30 meters and exhibit porosity up to 18% and permeability up to 10 mD. These reservoirs were mostly ignored in the 1960s and into the mid-1990s, however technological advances in drilling and completion techniques including horizontal wells and multi-stage fracture completions brought them to prominence starting in 2014.

Over the last four years, Forge invested $18 million to assemble the land position, drill four (4) horizontal multi-stage fracture stimulated (MSF) wells and acquire gas infrastructure. The average type pad well has a DCET (Drill, Complete, Equip and Tie-in) cost of $2.35 million with an anticipated IP30 rate of 495 boed (170 bopd & 1.9 MMCFD).

OFFSET OPERATORS---
Forge and other operators (Altura, Blackspur, Point Loma and Mjolnir) in these areas, have been active over the past four years with 20 wells drilled. Since 2014, production from these tight Upper Mannville sands has increased to >3,000 boe/d (70%) oil as of January 21, 2019. Forge has drilled four (4) wells, of which two (2) wells in the Honeysuckle Area are on production and two (2) wells in the Bonnie Glen Area are awaiting solution gas tie-in. There is the potential to drill up to 16 ERH (Extended Reach Horizontal) pad wells/3 sections on the Forge lands. Forge owns gas infrastructure at Bonnie Glen and has 3rd Party access to gas processing in Honeysuckle.

LOW RISK and NEW GENERATION DRILLING---
The play continues to be de-risked and developed by offsetting operators. Well and completion design has evolved with each round of drilling by Forge and other operators. Altura Energy has moved to the next generation of well design employing longer laterals and more stages (4th generation) with very promising results.

A REMINDER OF PDP & PDNP---
The Forge Assets for sale have existing Rex oil production in Honeysuckle, standing Rex oil wells in Bonnie Glen, and producing gas wells in Bonnie Glen and Ferrybank. The standing Rex oil wells in Bonnie Glen are awaiting solution gas tie-in.

SYNERGY---
The Rex oil production generates solution gas which can be processed at the Bonnie Glen Facility which is tied to the shallow gas production. It is suggested that the buyer of the Rex oil assets will want to maintain some working interest ownership in the Bonnie Glen processing facility to assist in operations. Ideally, Forge would like to find a buyer for the whole project but will consider offers on the projects independently.

TO LEARN MORE CONTACT:
Energy Advisors Group
Mr. Steve Henrich
Director
1580, 727 - 7th Avenue SW
Calgary, AB T2P 0Z3
---Direct: 403-294-1906 and Cell: 403-874-7801 and Fax: 713-600-0138
---Email: [email protected]

-------Also Call Blake Dornak in Energy Advisors' Houston Office at 713-600-0123

Questions Regarding This Asset? Email Steve Henrich or call EAG at 403-294-1906
Virtual Data Room

EAST-CENTRAL ALBERTA PROJECT

U MANNVILLE; REX OIL; SPIRIT RIVER

BONNIE GLEN; FERRYBANK

-HONEYSUCKLE AREAS

REX OIL (16° API)

Proven Play. Successful Offset Operators

LOW RISK; LONG HORIZONTALS

100% OPERATED WI. ~70/30 Crown & FH

ORIGINAL OIL IN PLACE: 370 MMBBLS

Current Prod: 20 BOPD & 146 MCFD

Behind Pipe Rex Oil: 170 BOPD & 450 MCFD

Shallow Gas: 100% Operated WI

Upside: 1.0 MMCFD bypassed Belly River

Pipeline/Processing Infrastructure In Place

SEEKING ASSET SALE

PP 11153DV

QUICK OVERVIEW
Forge Oil & Gas Limited has made the decision to consolidate its limited capital on a single core property, and as such the Greater Bonnie Glen Rex/Spirit River oil and shallow gas assets are being made available for divestiture. Forge will consider all proposals with a preference to sell the assets located Southwest Of Edmonton in East-Central Alberta for cash.

These are two distinct, but strategically related divestiture packages:

1---
EMERGING HORIZONTAL REX OIL PLAY (16° API) – Upper Mannville (Rex/Spirit River) 370 MMbbls OOIP and 4 hz wells drilled (2 on production, 2 awaiting solution gas tie-in)
--Large Land Base Of 45 Contiguous Sections in 3 Strike areas: Bonnie Glen, Ferrybank & Honeysuckle;
--8 well/section Rex Oil Horizontal development drilling opportunity;
--New generation Horizontal Drill and Completion techniques yielding excellent economics;
--Proven Horizontal play w/ successful offsetting producing wells drilled by numerous operators
--Existing oil production in the Honeysuckle area;
--Standing Rex oil wells in Bonnie Glen awaiting solution gas tie-in.
--Production: 45 boe/d, immediate tie-in and bypassed pay drilling upside gain of 245 boe/day;
--LLR of 4.0;

The plan continues to be derisked and developed by offset operators.

2---
ESTABLISHED SHALLOW GAS PRODUCTION BASE with drilling and tie-in upside
--Production: 300 mcf/d (50 boe/d), immediate tie-in and bypassed pay drilling upside gain of 167 boe/day;
--Producing gas wells in Bonnie Glen and Ferrybank;
--LLR of 1.4
--Combined LLR of 1.9 can be increased to over 2.0 by tieing-in two existing drilled and completed Rex oil wells


ADDITIONAL NARRATIVE---
Forge has assembled a large contiguous land base of 45 Sections with 100% Working Interest in an emerging Upper Manville (Rex/Spirit River Group) Oil Play (sweet, 16° API) and 57 sections with 100% Working Interest of Upper Cretaceous Natural Gas rights in the Bonnie Glen, Honeysuckle, Leduc- Woodbend and Ferrybank strike areas of Central Alberta.

TECHNICAL SUPPORT---
Forge has undertaken significant geotechnical & engineering studies to better understand the Upper Mannville Rex oil play and operations. The Discovered Petroleum Initially in Place (DPIIP) Resource Potential of ~370 MMbbls on Forge lands in three strike areas has been corroborated by Independent Evaluation Auditors, Deloitte. The majority of the Forge Oil Resource Potential is in the Bonnie Glen area (54%) with the Honeysuckle area containing 31% and the Leduc-Woodbend area 15%.

EARLY HISTORY---
The Upper Mannville Formations in the greater Bonnie Glen Area southwest of Edmonton, consists of stacked fluvial channels comprised of medium to fine-grained lithic sands that can be mapped over several townships at depths between ~1,375-1,450 mTVD. The channel sands range in thickness from 5-30 meters and exhibit porosity up to 18% and permeability up to 10 mD. These reservoirs were mostly ignored in the 1960s and into the mid-1990s, however technological advances in drilling and completion techniques including horizontal wells and multi-stage fracture completions brought them to prominence starting in 2014.

Over the last four years, Forge invested $18 million to assemble the land position, drill four (4) horizontal multi-stage fracture stimulated (MSF) wells and acquire gas infrastructure. The average type pad well has a DCET (Drill, Complete, Equip and Tie-in) cost of $2.35 million with an anticipated IP30 rate of 495 boed (170 bopd & 1.9 MMCFD).

OFFSET OPERATORS---
Forge and other operators (Altura, Blackspur, Point Loma and Mjolnir) in these areas, have been active over the past four years with 20 wells drilled. Since 2014, production from these tight Upper Mannville sands has increased to >3,000 boe/d (70%) oil as of January 21, 2019. Forge has drilled four (4) wells, of which two (2) wells in the Honeysuckle Area are on production and two (2) wells in the Bonnie Glen Area are awaiting solution gas tie-in. There is the potential to drill up to 16 ERH (Extended Reach Horizontal) pad wells/3 sections on the Forge lands. Forge owns gas infrastructure at Bonnie Glen and has 3rd Party access to gas processing in Honeysuckle.

LOW RISK and NEW GENERATION DRILLING---
The play continues to be de-risked and developed by offsetting operators. Well and completion design has evolved with each round of drilling by Forge and other operators. Altura Energy has moved to the next generation of well design employing longer laterals and more stages (4th generation) with very promising results.

A REMINDER OF PDP & PDNP---
The Forge Assets for sale have existing Rex oil production in Honeysuckle, standing Rex oil wells in Bonnie Glen, and producing gas wells in Bonnie Glen and Ferrybank. The standing Rex oil wells in Bonnie Glen are awaiting solution gas tie-in.

SYNERGY---
The Rex oil production generates solution gas which can be processed at the Bonnie Glen Facility which is tied to the shallow gas production. It is suggested that the buyer of the Rex oil assets will want to maintain some working interest ownership in the Bonnie Glen processing facility to assist in operations. Ideally, Forge would like to find a buyer for the whole project but will consider offers on the projects independently.

TO LEARN MORE CONTACT:
Energy Advisors Group
Mr. Steve Henrich
Director
1580, 727 - 7th Avenue SW
Calgary, AB T2P 0Z3
---Direct: 403-294-1906 and Cell: 403-874-7801 and Fax: 713-600-0138
---Email: [email protected]

-------Also Call Blake Dornak in Energy Advisors' Houston Office at 713-600-0123

Questions Regarding This Asset? Email Steve Henrich or call EAG at 403-294-1906