Moya Little, President

Western Divestments
Suite 105, 214 - 11 Avenue SE,
Calgary, Alberta, Canada
T2G 0X8

Phone: (403) 543-4080

> Geology - VIKING OIL + GAS pool distribution

Map 2 Viking Oil and Gas Pool Distribution – Dodsland – Kindersley Saskatchewan

INTRODUCTION

The Ravens Cross Lucky Hills package is located in the center of an established Viking Formation hydrocarbon fairway in SW Saskatchewan (the Kindersley-Dodsland Trend – Map 2). The Cretaceous Viking Formation is a geologically complex unit consisting of interbedded, mainly marine-influenced fine-grained sandstones, siltstones and mudstones sandwiched between two marine shales. This depositional environment produced a variation of Viking reservoir quality resulting in the recognition of two “play types” on the trend. The initially discovered, conventional, stratigraphic oil and gas reservoirs and the unconventional, tighter, shaly sand accumulations that have been the target of recent development within the legacy pools and the outlying “halo” areas. The Viking extends over most of Saskatchewan, but hydrocarbon production is restricted to west-central Saskatchewan in the Kindersley-Dodsland area. The depth of the Viking production ranges from 1,840 feet (561 metres) to 2,562 feet (781 metres) in the Kindersley-Dodsland trend. The average API gravity of the oil is 36 API.

The conventional, Kindersley-Dodsland, Viking reservoirs, discovered in the 1950’s, were initially exploited with vertical development drilling and waterflood implementation. Conventional Viking original in place reserves were estimated at 3.0 billion barrels (478 million m3). To date, the conventional Viking pools have produced 296 million barrels (47.1 million m3) for a recovery factor of about 10%. From 2007 to 2012, development of the unconventional component of the Viking play has increased recoverable reserves by approximately 82 million barrels (13 million m3) or 38% on the Kindersley-Dodsland Trend. The majority of this increase can be attributed to horizontal drilling and multi-stage frac completions in shaly, tighter, Viking rock.