> UPSIDE POTENTIAL

Potential producing horizons in the vicinity of the Ravens Cross Glidden asset include the Upper Mannville (Cantuar) Formation (Oil), the Upper Mannville, Cantuar Formation Lithic Channels, Lower Mannville (Ellerslie and Ostracod) Formation (Oil), Lower Mannville Success S2 Member (Oil) and the Lower Mannville S1 Member (Oil).  The Cretaceous Viking Formation (Oil and Gas) and the Jurassic Bakken Formation (Oil) also present significant targets in the area.

 MANNVILLE-SUCCESS STRATIGRAPHY

MANNVILLE-SUCCESS STRATIGRAPHY

Lower Mannville Success S1 Chert

The S1 Chert overlies a basin wide erosional surface at the top of Mississippian/Base of Success.  The unconformity is readily recognized on modern open hole log suites where eroded Madison group underlies S1 Success cherts, breccias and shales.  The S 1 is thought to represent an erosional lag/valley fill comprised of massive tripolitic chert beds and carbonate debris derived from the underlying unconformity.  This unit has been tested for hydrocarbons in a limited number of wells in the Glidden area however has not been put on production to date (e.g. 101/16-04-027-24W3/00).

Regional Success Geology

Regionally the total Success package (S1 +S2) varies from approximately 15 m to a thickness of 50 M in the Glidden - Marengo area of SW Saskatchewan.  The Success likely filled the valleys formed on the Mississippian erosional surface.  These valleys can be defined by Madison Formation isopach mapping.  The Madison formation is comprised of a lime mudstone overlying the Bakken Formation.  Thick sections of Madison indicate a Mississippian Highland while thin Madison isopachs define the valleys carved out on the Mississippian surface.  Map 4 shows that the Ravens Cross Glidden lands are within the confines of the Glidden Mississippian valley trend.  It is likely that based on this mapping, thick, prospective S 2 braided stream deposits will be encountered on the balance of the RCEL lands. 

BRAIDED CHANNEL TREND MADISON ISOPACH

 map generated using geoSCOUT

map generated using geoSCOUT

> S2 OIL

Internal mapping and analysis indicates a significant braided channel reservoir trends through the RCEL Glidden acreage. Volumetric analysis utilizing Net Oil Pay mapping on Map 5 indicates the Lower Mannville/S-2 horizon may contain up to 30.1 million barrels of conventional oil in place.  An estimated recovery factor of 5% for the accumulation could result in remaining recoverable reserves in the order of 1.5 million barrels for that portion of the pool underlying Ravens Cross lands. To date the acreage has produced 187,000 bbls form the Basal Mannville and the S2 which would leave a remaining recoverable reserve potential of 1.3 million bbls.

It is expected that these reserves could be accessed by horizontal drilling and completion technology. Canadian Coastal Resources Ltd completed a 700 meter Success horizontal in 2014 directly south of the Ravens Cross lands drilling from a surface location at section 14-32-26-24W3 to a bottom hole of 16-32-26-24W3.  This well was completed open hole in the horizontal section with no stimulation.  Surveys of the lateral do not clearly indicate what zone the company was targeting with this well.

S2 NET OIL PAY (>30% POR, > 10 OHMS)

 map generated using geoSCOUT

map generated using geoSCOUT

Ravens Cross believes the high water inflow encountered by this well was a result of completion problems and incorrect orientation of the well bore.  It is also possible that the well was also drilled below the S2 oil water contact at some point on the lateral.

It should be pointed out that numerous braided stream facies have been successfully exploited by horizontal technology in Alberta including Princess and Bantry North.