bernum situation map - altacorp · pdf filethe in formation (“information”)...

Legend

Wells

Wells drilled to BVHL and deeperProject Wells

Bernum Land

Incl Beaverhill Lk RightsBelow Beaverhill Lk Rights

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APRIL 2012

BERNUM PETROLEUM LTD. CORPORATE DISPOSITION ALTACORP CAPITAL SITUATION MAP APRIL 2012

WWW.ALTACORPCAPITAL.COM

ROXANA

DISCLAIMER: The Situation Map provides an overview description of certain assets (the “Assets”) of Bernum Petroleum Ltd. The information (“Information”) contained in this Situation Map and in any Data Room managed by AltaCorp in connection with this offering is provided without any representation or warranty as to the accuracy or completeness thereof and is for informational purposes only. The Interested Party is to rely on its own independent analysis to form the basis of any investment decision. The Company or AltaCorp may modify the offering procedure or withdraw from the process at any time without notice to, or any liability whatsoever to, any Interested Party. For more information on disclosures please go to www.altacorpcapital.com

AB

KEY HIGHLIGHTS

• 740 boe/d private corporate disposition 99% light oil with current netbacks >$70/BOE• Reserves are 86% oil, a total of 88% liquids and 46% booked to proved production!• Private company with highly concentrated ownership and a small Board of Directors• No reserves have been assigned at Lochend; directly on-trend with industry activity horizontals• Developing project at Roxana with only three future locations booked in GLJ reserves• Lands in multi-season access areas with all production operated by Bernum• Roxana vertical oil wells are $1.5mm gross D,C, + Equip; most recent wells fl owing IP at >300BOPD• Corporate cash fl ow of $1.5mm per month

COMPANY OVERVIEW

The vendor may not be contacted regarding this offering without prior consent from AltaCorp Capital.

i l

RoxanaAltaCorp Capital Inc. has been engaged by Bernum Petroleum Ltd. as exclusive advisor in a corporate sale.

ROXANA - PUSKWASKAU BEAVERHILL LAKE TREND MAP

BEAVERHILL LAKE SAND - STRUCTURAL CROSS SECTION

Lochend

LOCHEND

LOCHEND CARDIUM TREND MAP

Legend

WellsWells drilled to BVHL and deeperProject Wells

Bernum LandIncl Beaverhill Lk RightsBelow Beaverhill Lk Rights

Map ItemsLine of SectionBVHL Pool Boundary

ROXANA

GIROUXVILLE EAST

PUSKWASKAU

ROXANA POOL DETAIL MAP

16-19 IP 250BOPD

8-19 SUCESSFULWORKOVER

• The company has been developing the Beaverhill Lake Sand updip and on trend with prolifi c fi elds at Puskwaskau and Normandville

• The reservoir produces light oil at prolifi c rates, the wells are currently fl owing, at low GOR by fl ank water drive• Recovery factor is expected to be 45 - 50% of oil-in-place

• The producing zone is a high porosity and permeability, feldspar-rich sandstone• Bernum lands are favourably positioned structurally on an oil column estimated over 30m based on the 13-7-78-20W5 well which produced 34,000 BBL of oil• Bernum has developed a correlatable and predictive 3-D seismic model for the Beaverhill Lake Sand• Additional potential may exist in the Slave Point and Montney zones• Completion results in the Granite Wash at 102/16-19-78-20W5 indicate additional oil potential, well tested signifi cant oil rate before recompletion to primary zone uphole

CUMULATIVEOIL 34.2 MSTB GAS 7.7 MMCFWATER 44.2 MSTB

CUMULATIVE OIL 55.5 MSTB GAS 7.0 MMCF WATER 0.2 MSTB

CUMULATIVEOIL 219.9 MSTB GAS 63.7 MMCF WATER 0.6 MSTB

NORMANDVILLE

BVHL Cumulative Production Max 3.3 mmBBL

• Bernum’s lands at Lochend are on the trend with recent Cardium ‘A’ horizontal production• Bernum has 10,054 acres gross (5,820 net acres) of land at Lochend prospective for the Cardium,

adjacent lands have recently sold >$1mm/section• Two locations are being licensed with another two planned for fall 2012• The advent of frac improvements, slickwater and shortened spacing, have doubled production rates• The 2-mile horizontal well licensed at 4-11-26-4 W5 may lead a new technological improvement

2010 2011 2012 2013 2014 2015FY FY Mar - Dec FY FY FY

Actual Actual Forecast Forecast Forecast Forecast

ProductionOil (bbls/d) 29 239 867 999 464 224Gas (mcf/d) 0 0 26 122 215 251NGL's (bbls/d) 0 0 2 5 10 10

Total (boe/d) 29 239 873 1,024 510 276

Income (in thousands unless otherwise noted)

RevenueOil 834 8,100 24,765 35,366 16,437 7,927Gas 0 0 28 199 388 511NGL's 0 0 30 138 259 260

Total Revenue 834 8,100 24,823 35,703 17,084 8,698

less Royalties -(78) -(984) -(8,284) -(11,548) -(6,344) -(2,882)less Operating Costs -(164) -(1,158) -(3,215) -(4,561) -(2,727) -(1,888)

Net Operating Income 593 5,958 13,324 19,594 8,013 3,928

Capex 1,267 3,343 0 0

Per Unit Prices Oil Price ($/bbl) 77.49 92.97 93.35 96.99 97.05 96.95 Gas Price ($/mcf) NA NA 3.52 4.47 4.94 5.58 NGL Price ($/bbl) NA NA 49.02 75.62 70.96 71.23

Average Price ($/boe) 77.49 92.97 92.89 95.49 91.81 86.39

Royalty Rate 9.3% 12.2% 33.4% 32.3% 37.1% 33.1%Operating Costs ($/boe) 15.21 13.29 12.03 12.20 14.65 18.75

Netback ($/boe) 55.06 68.38 49.86 52.41 43.06 39.02

Actuals are from lease operating statementsForecasts are the P+P case from the GLJ Petroleum Consultants Ltd. report effective March 1, 2012

Basic Shares Outstanding (MM) 15.4

Debt at Feb 29, 2012 ($MM) $0.0Est. Working Capital at Feb 29, 2012 ($MM) $2.0

Capitalization Summary

PDP46%

PDNP1%

PUD5%

Prob48%

Gross Liquids Reserves(mbbls)

PDP5%

PDNP39%

PUD9%

Prob46%

Gross Gas Reserves(mmcf)

PDP48%

PDNP2%PUD

5%

Prob46%

Net Present ValueNPV 10%

Oil86%

NGLs3% Gas

12%

Oil Weighting6:1 P+P

Oil NGLs Gas Total Oil NGLs Gas Total NPV 8% NPV 10% NPV 12%(mbbls) (mbbls) (mmcf) (mboe) (mbbls) (mbbls) (mmcf) (mboe) ($M) ($M) ($M)

Proved Developed Producing 462 3 44 472 303 2 40 312 18,966 18,572 18,199Proved Developed Non-Producing 0 9 317 62 0 6 236 45 671 606 550Proved Undeveloped 50 4 76 67 42 3 69 57 1,991 1,901 1,819

Total Proved 512 16 437 601 345 11 345 414 21,628 21,079 20,567Total Probable 475 12 367 548 320 8 263 372 18,422 17,634 16,918

Proved Plus Probable 987 29 804 1,150 665 19 608 785 40,050 38,713 37,486

(1) Company working interest reserves including receivable gross overriding royalty volumes(2) Company net volumes after royaltiesReserves are from the GLJ Petroleum Consultants Ltd. report effective March 1, 2012

Gross Reserves (1) Net Reserves (2) BT Net Present Value

Legend

WellsCardium 'A' Focused DrillingProject Wells

Map ItemsBernum Land

• Beaverhill Lake oil production at Roxana has grown steadily with fl at GOR and low water cut suggesting effective fl ank water drive

• With 30m relief, recovery factor should be excellent, current reserves forecast is 30-35%, with expectation of >45% with future development and production

ROXANA BEAVERHILL LAKE GROUP PLOT

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FLAT GOR

CONTINUED GROWTH

LOW WATER CUT

190 cf/BBL

1,521 BOPD

CUMULATIVE OIL 590 MBBL GAS 151 MMCF WATER 3 MBBL

0.2%

Gross Net WIDeveloped 5,279 2,863 54%Undeveloped 27,230 15,093 55%

Total 32,508 17,956 55%

Land Summary

PROCESS DESCRIPTIONReview of Documents Commencing April 10, 2012

Bid Deadline Early May 2012

Questions may be directed to bernum@altacorpcapital.com

Situation Map, Confi dentiality Agreement and Electronic Land Layer are available on our website at: www.altacorpcapital.com

Please contact Kelly Wylie at 403.539.8589 for access to the Virtual Data Room

Liquids Gas Total Liquids Gas Total Liquids Gas Total Proved P+P Proved P+PBid Group (bbls/d) (mcf/d) (boe/d) (mbbls) (mmcf) (mboe) (mbbls) (mmcf) (mboe) ($M) ($M) (yrs) (yrs)

Roxana 702 0 702 475 0 475 911 0 911 19,153 35,259 1.9 3.6Others 29 62 40 53 436 126 105 804 239 1,926 3,454 8.6 16.5

Total 732 62 742 528 436 601 1,016 804 1,150 21,079 38,713 2.2 4.2(1) Current production is from March 19-25, 2012 field estimates(2) Company working interest volumes(3) Reserves are from the GLJ Petroleum Consultants Ltd. report effective March 1, 2012

Reserve Life IndexCurrent Production (1)

Net Present Value (3)

Total Proved P+PReserve Volumes (2) (3)

BT PV10%

Leslie Kende Managing DirectorAcquisitions & Divestitures403.539.8622lkende@altacorpcapital.com

For further information contact:Gurdeep GillManaging DirectorInvestment Banking403.539.8618ggill@altacorpcapital.com

Lee GirardoManaging DirectorInvestment Banking403.539.8619lgirardo@altacorpcapital.com