Pc11rcllm«:> ... .-.� resources ltd. 4700 Bankers Hall West, 888 3rd Street SW Calgary, Alberta, Canada T2P 5C5 www.paramountres.com

November 21, 2016

OROGO

Department of Industry, Tourism and Investment

Government of the Northwest Territories

P.O. Box 1320

Yellowknife NT XlA 2L9 Canada

Attn: Chief Conservation Officer

tel 403 290 3600 fax 403 262 7994

Re: 1) AACW Application for Abandonment of Para et al Fort Liard 0-35 (enclosed)

2) AACW Application for Abandonment of Para et al Liard 1-46 (enclosed)

Further to my letter of November 7, enclose please find the Application to Alter the Condition of a Well and supporting documentation for the above wells. These two wells have both been suspended with bridge plugs capped with cement and thus this application is only for surface abandonment {"Cut &Cap").

The following are enclosed for each well:

1. Application to Abandon a Well (3 copies with original signatures)2. Proposed operations and rationale for the same.3. Current wellbore configuration diagram4. Proposed wellbore configuration diagram after abandonment5. Information Disclosure Consent Form

As previously undertaken, Paramount will conduct these operations in compliance with the conditions of the current Land Use Permit and Water License, along with the current Operating Approval (un-numbered) for the PL07 License which encompasses these wells. The operations will be performed in compliance with Paramount's Management System, and the Waste Management Plan, Spill Contingency Plan, Emergency Response Plan and Environmental Protection Plan which form a part of the Authorization. As before, some parts of the above plans apply only to Paramount's K-29 - Nahani (sour gas) production facilities and are not applicable to the Liard Operation.

Office of the Regulator of Oil and Gas Operations (OROGO)Version: April 4, 2014 o

NorthwestTerritories

APPROVAL TO ALTER CONDITION OF A WELLAPPLICATION

This application is submitted under Section 10 of the Oil and Gas Drilling and Production Regulations. When granted under Section 13 ofthe Regulations, this form is the requisite approval for the commencement of well operations. An approved copy of this notice is to beposted at each drill site.

Para et al Fort Liard 0-35.._.-.--- ..-------------- ... ----------------------------------------------------------------------------------------------------------------------------------3000356010123154 Operations Authorization No.._----------------------------------------------Paramount Resources Ltd Current Depth------------------------------------------------------ .NWT-OL-2014-014-------------------------------------------Zedi

Well Name

Well Identifier

Operator

Operating Licence No.

Contractor

Station Keeping

Current Well Status

Land Use Permit No.

2121m KB

Licence No. Select

Drilling Rig or Unit None

Land Structure Conventional Land

Water Licence No.

Not Applicable----------------------------------------------_ ..-__~~~.!?_~_~~~9.._£~~2:Q_Q~______________Anticipated Well Status Change .__~~~~_~_~_~:~ _

__M~~gl_~~~Ql_Q______Issued by: ~~~~_~~ie ~~~~:y__,=-~~~_~~~_~~_~~!__~~_~!_~ ~_Q_~?_~_QQ_~___M~~_Q~_~!:._~_:9_29_~____Issued by. ~~~~~_~?:~~__~~_I!~y__~_~_~~_~~_~_~~_~~!__'??_~L~ ~_QL~_~_2Q_~_

Section 35 Grid 60-10-123 -15._----------------------------------------------- ...---------------------------Lat 60°04'58 Long 123°21'23"._----------------------------------- ..---------------- ._-------------------------------------------------Lat 60 ° 04 ' 58 " Long 123 ° 21 ' 23 "._--------------------

455_6m._----------------------------------------.__~_~~J.~ _

Location Unit oCoordinates (NAD 27) Surface

Bottom Hole

449Am._--------------------------------- ..---------------Approximate Date of Commencement __I~~_~_~_Q_~2____________ Est. Days on Location

Ground Level! Seafloor Elevation KB!RT

i·i·mri"pi=R·:a~TriIIONPROGRANf······················· ••••••••••••• H •••••••••••••••••••• _ •••••••• _ •••••••• _ ••••••••••••••• ~,[

••• -1----,-----------_ .._-_ .._ .._-.._-_.__ .._---_. --_ .._-_ .._ .._----_ ...__ .__ .._ ..._----L~c:tivity!y~:mm_LTOP to Bottom Interval (m K~~J?~rTlrTl=~t~..mm_ ...........................__

i;.-.Ab._a._ln_'d_Cin_m._.e_r~ .__ -v-r+ S_l:I£f~~~=_____ I Cut & caI'-_::_~~~_~.!._zones ab~_~?!:l?~_~_~!!~l?!idge

!l Se_I.ec.._t __." " "".._ _ , mmm_mml pl~g and cement in 2009 mm_Select

j......_ _----_ ....•..•... _ _ _ __ _ - ..--..--.--- - ~Select

Select

Additional Information

Cut casing Im below ground & cap with non-sealing steel plate & well sign.

Mattson and Fantasque perforated intervals were previously abandonned (2009) with bridge plug andcement in compliance with existing legislation, See attached diagram.Well filled with fresh water - Additional bridge plug set at 50 m _

_~!!~??~.~._?_l:l:!~.~.~.~~~~i.!.?:gar~ ...i.~.'?!at~.~_..~X_..~?.~p.!.~~~.~X_£_~~~?.!jg.~_: ~~-~-~!!~~~_~~c.!f~g~~.m m_._._ .._ .

"I certify that the information provided on this form is true and correct"

Name Lloyd Doyle Telephone-------------------------------------------------------------------

Job Designation __s:..~!]?_~r~!~__~E~:~~~~~g_~~~_~_:_______________E-Mail

Operator P ount Resources

(403) 290-3673 Ex!._------------------------------------------------------------------_.lloyd.doyle@paramountres.com

DateSignature

OROGO USE ONLYThis \Nellapproval is granted under section 13 of the Oil and Gas Drilling and Production Regulations and is subject to the terms andconditions attached to thrs approval and Operations Authorization No. .

Well UniqueWellJob Designation Identifier_____________Identifier

Signature Date ._--------------------------------------------------------------------------------_.OROGO Authority

Instructions:Send three copies of the completed form with original signatures, along withthe appropriate supporting technical documentation, to:

Abandonment Program for Paramount et al Fort Liard O-35

WELL INFORMATION: Well Name: Para et al Fort Liard O-35 Location: 60° 10’ N, 123° 15’ W Coordinates : Latitude: 60° 04’ 48.084’’ 60.0448084° Longitude: 123° 21’22.767” 123.2122767° UWI: 300O356010123150 WID: 1868 Pool : Mattson Field: Fort Liard Province: NWT Well Status: Suspended (downhole zones abandoned with bridge plugs and cement). KB Elevation: 455.64 m KB to CF: 5.85m Ground Elevation: 449.40 m KB to Grd: 6.25m PBTD: 2095 mKB TD: 2121.0 mKB Surface Hole: 311 mm to 507 mKB Surface Casing: 40 jts 244.5 mm 53.57 kg/m, J-55, LT&C set at 507 mKB.

Cemented with 28t (21.19m3) 0:1;0 'G' cement plus 1% CaCl2. Cement returns to surface - 3.0 m3.

Intermediate Hole: 222 mm to 1456 mKB Intermediate Casing: 113 jts177.8 mm, 38.69 kg/m, J-55, LT&C set at 1455.4mKB.

Cemented with 17.0t 1:1:2 ‘G’ cement plus 0.5% T-10 and 11.0t 0:1:0 ‘G’ cement plus 0.8% NFL-2 plus 1.0% A-11. Cement top at surface w/ 3 m3 scavenger cement returns.

Main Hole: 156mm Liner: 114.3mm, 17.26kg/m,J-55, LT&C, set from 1344 to 2109 mKB. Cemented with 21.0t 0:1:0 “G” cement+ 1.0% NFL-2. Casing Bowl: 279 mm x 244 mm ABB-VG-100-21 mPa Tubing Head: 279 mm x 179 mm ABB-VG-OF-21 mPa Production Tubing and Downhole Equipment:

None - See Attached Diagram

Operational Program: Note: This is only a surface abandonment as downhole operations were completed in 2009. This program forms a part of the “Liard 2016/17 Abandonment” and is governed by the existing Operations Authorization and supporting documents (Safety Plan, Environmental Protection Plan, and Emergency Response Plan which are already on file with OROGO). These documents will be onsite for reference by the site supervisor, along with a bridging document including site specific extracts, emergency contact numbers etc. This document focuses on the describing the operations planned for the well. Overview: This is a cut and cap only as the downhole zones have been abandoned. The Paramount et al Fort Liard O-35 well, in this field was initially completed as a Mattson sweet gas well. Over its life five Mattson zones have been produced, followed by the Fantasque zone. The well is now depleted and was suspended in 2009. The field is shut-in with some of the facilities decommissioned. The associated Shiha trans-border pipeline (under NEB jurisdiction) was deactivated in 2008. The Mattson perforations were abandoned by setting a bridge plug at 1470 mKB (18 meters above the top perforation). The Fantasque perforations were abandoned by setting a bridge plug at 1335 mKB (20 meters above the top perforation). Both bridge plugs were satisfactorily pressure tested to 14 MPa for 15 minutes and then capped with 8 meters of cement. Both zonal abandonments meet the requirements of NEB-OGDPR (1979) 211(2)(a) in force at the time and the current OROGO – OGDPR 56 (a) & 56 (b).

The surface and production casing were both cemented full length with returns to surface. It is not known if the cement top around the liner extends past the intermediate casing shoe at 1455m, but only the Mattson formation (already depleted) is present below this point. Therefore all zones are believed to be isolated outside the casing.

A further bridge plug is was set in the 178mm casing at 50 mKB on 20090222.

The purpose of this program is to cut and cap the casing, resulting in a permanent abandonment. Operations:

1. Perform a surface casing vent check.

2. Isolate field piping and bleed down (if needed).

3. Open the wellhead valves (no tubing or hanger in well) and perform “bubble test” (using the same process as the surface casing vent check) on the production casing.

Check for combustible gas.Remove wellhead and pump out fluid to 3 m below ground level

4. Cut and remove rathole/mousehole lm below ground if present.Backfill hole with 1 m cement plug if required.

5. Excavate around well bore approximately 1.5 meters below ground level}.Slope sides 1:1 or shallower.

6. Cut and remove conductor pipe.Support casing bowl with picker or similar.Cut three 60 degree windows in surface casing just below the bowl and then cutproduction casing. Production casing may drop.Cut surface and production casing at least 1 meter below ground level.Stitch weld a 6mm steel plate over the casing stubs (do not seal).

7. Weld pipe signpost to surface casing and install the permanent well sign.

8. Backfill the hole with a O.3m crown to allow for possible subsidence.Tamp backfill material well.

9. Rig down and remove all equipment and material used in the operations from thelease.Haul any remain fluid to an approved waste disposal location.

END

Calgary contact (always phone rather than email for urgent matters)

Dick Heenan 403 818-4408 dickheenan@shaw.ca

RHeenan

20161121PERMIT TO PRACT~CE

HEENAN ENERGY SERVICES LTD.;f -7/..' '. ,;,......c.,' --, c ? I.Signature ~ / .

-z..vll. / /1/2/Date c- .L;ERM!TNUMBER: P 827

NT/NUAssociation of Profe~sionalEngineers and Geosc!ontlsts

...,.,..."...·~~:.,;''''r.c.··'l·... \1,.... .... .

PARA ET AL FORT LIARD O-35

507

244.5 mm, 53.57 kg/m, J-55, LT&C casing set at 507 mKB. Cemented with 28 t 0:1:0 'G' cement plus 1.0% CaCl2.

KB = 455.6 mGL = 449.4 mKB to CF = 5.85 m

177.8 mm, 38.69 kg/m, J-55, LT&C casing set at 1455.4 mKB. Cemented with 14.2 t 1:1:2 'G' cement plus 0.5% T-10 and 11.0 t 0:1:0 'G' cement plus 0.8% CaCl2 plus 1.0% A-11.

1455.4

1344

114.3 mm, 17.36 kg/m, J-55, LT&C casing set from 1344 to 2109 mKB. Cemented with 21 t 0:1:0 'G'

212121092095

TDLiner BottomPBTD

Cement squeeze perforations2064 - 2065Cement retainer20583 7/8" Drill bit2057Tubing conveyed perforating assembly2049

1761 - 1764

Baker A3 Lok-Set packer

Baker L10 on-off connector w/47.6 mm 'F' profilew/ 'FSG' plug in place

46 mm 'R' nipple w/ 44.7 mm No GoSeparation sub1756

1752

17481742

Mattson perforations

Medium grit CaCO2

Mattson perforations1642.5 - 1645.51648.0 - 1651.0

Baker 'WR' bridge plug16361629 Medium grit CaCO2

1549 - 1555 Mattson perforations

Tubing conveyed perforating assembly

Baker A3 Lok-Set packerBaker L10 on-off connector w/47.6 mm 'F' profile

46.02 mm 'R' nipple w/ 44.7 mm No GoSeparation sub1525

15181513

Mattson perforations1530 - 1532.5

Baker 'WR' bridge plug15451542 Silica sand

1512 Baker 'WG' bridge plugMedium grit CaCO21511

Fantasque perforations1355.0 - 1362.01365.0 - 1370.0

60° 10' N, 123° 15' W WID = 1868Bottomhole Configuration (as of Feb 22, 2009)

Mattson perforations1478 - 1482Tubing conveyed perforating assembly

Import tools liner hanger

73 mm sliding sleeve w/ 58.72 mm 'X' proile1455

1470 Bridge plug8 m cement plug

1335 Bridge plug8 m cement plug

50Bridge plug

KB = 455.6 mGL = 449.4 mKB to CF = 5.85 m

Cut 1m below groundWeld non-sealing steel plate

244.5 mm, 53.57 kg/m, J-55, LT&CBridge plug @ 50m 28t 0:1:0 'G'+ 1.0% CaCl2

3m3 cement returns to surface

177.8 mm, 38.69 kg/m, J-55, LT&C Int. casing shoe at 1455 mKB 14.2t 1:1:2 'G'

2m3 cement scavenger retuns to surface

PBTD 2095 mKBLiner Bottom 2109mKB 114.3 mm, 17.36 kg/m, J-55, LT&C TD 2121 mKB 21t 0:1:0 'G' cement

Proposed Abandonment

PARA ET AL FORT LIARD O-35 60° 10' N 123° 15' W WID = 1868

507

1344

Cement squeeze perforations2064 - 2065Cement retainer20583 7/8" Drill bit2057Tubing conveyed perforating assembly2049

1761 - 1764

Baker A3 Lok-Set packer

Baker L10 on-off connector w/47.6 mm 'F' profilew/ 'FSG' plug in place

46 mm 'R' nipple w/ 44.7 mm No GoSeparation sub1756

1752

17481742

Mattson perforations

Medium grit CaCO2

Mattson perforations1642.5 - 1645.51648.0 - 1651.0

Baker 'WR' bridge plug16361629 Medium grit CaCO2

1549 - 1555 Mattson perforations

Tubing conveyed perforating assembly

Baker A3 Lok-Set packerBaker L10 on-off connector w/47.6 mm 'F' profile

46.02 mm 'R' nipple w/ 44.7 mm No GoSeparation sub1525

15181513

Mattson perforations1530 - 1532.5

Baker 'WR' bridge plug15451542 Silica sand

1512 Baker 'WG' bridge plugMedium grit CaCO21511

Fantasque perforations1355.0 - 1362.01365.0 - 1370.0

Mattson perforations1478 - 1482Tubing conveyed perforating assembly

Import tools liner hanger

1470 Bridge plug8 m cement plug

1335 Bridge plug8 m cement plug

INFORMATION DISCLOSURECONSENT FORM

Pursuant to subsection 91(3) of the Petroleum Resources Act (PRA)

Subject to its obligations under section 91 of the PRA and the objectives expressed bythe Government of the Northwest Territories Oil and Gas Regulator (Regulator) in itsInformation Disclosure Guidelines, issued under section 18 of the Oil and GasOperations Act (OGOA) on May 10, 2016, the Regulator wishes to facilitate publicaccess to information about the regulation of oil and gas works and activities underOGOA, while protecting an applicant's right to maintain privilege over certaininformation.

Paramount Resources Ltd (the Applicant), requires authorizations, approvals, orders,or other consents from the Regulator in respect of the following works or activities:Abandonment of Para et al Fort Liard 0-35.

The Applicant (please mark box or boxes):

o Does not consent to the public disclosure of any information with respect tothe above-noted works or activities, other than information or documentationthat the Regulator is already permitted to disclose under section 91 of thePRA, and has provided a rationale for non-disclosure in the space provided onthe reverse of this form.

or

Consents to the public disclosure of all the information indicated by the Applicantbelow with respect to the above-noted works or activities, with the exception ofany information noted in the space provided on the reverse of this form whereaccompanied by a rationale for non-disclosure:

~ This completed Information Disclosure Consent form

~ A brief project description (approximately 1-5 pages) that includes the name ofthe applicant, the scope, purpose, location, timing and nature of the proposedwork or activity. This project description may be used for the purposes of apreliminary screening under Part V of the Mackenzie Valley ResourceManagement Act.

~ The contents of an application for an Authorization under section 10(1)(b) ofOGOA, including but not limited to:• The completed application for the Authorization;• All required documentation supporting the application, including the safety

plan and environmental protection plan where applicable;• Correspondence and Information Requests between the Regulator and

the Applicant;

Page 1 of 2

t" :I •.: i: • i '."~".' . r. ••• 'i .

• The approved Authorization, including any conditions imposed by theRegulator;

• The completed application for any associated approvals (such as wellapprovals);

• Any associated approvals issued, including any conditions imposed by theRegulator;

• Subsequent amendments to any authorizations or approvals issued by theRegulator; and

• Any requests to vary or seek exemption from a regulatory requirementunder section 54 of OGOA.

Classes of information or documentation obtained by the Regulator as a result ofcarrying on a work or activity that is authorized under OGOA, as described insubsection 91(8) of PRA, remain privileged for the periods of time described in thatsubsection.

By providing its consent to the disclosure of the above information, the Applicant herebyreleases OROGO, its officers, agents or employees from any claims, demands, lossesor liability arising out of or related to the disclosure of the information.

This consent remains in effect until it is revoked or amended by written notice toOROGO, in which case the amended consent would apply to information provided tothe Regulator after the date of the written notice.

The Applicant hereby affirms that it has read and fully understands this InformationDisclosure Consent Form and release of liability.

Paramount Resources LtdName of Applicant Company.s1-- f,(/" {, I~ vt

L£..

Date 1

Uoyd Doyle

Sig ature of Officer, on behalf ofApplicant

Name of Officer (print)

Information the Applicant DoesNot Consent to Disclose:Contact information and phone

Rationale for Non-Disclosure (use additionalpaper if necessary):Public release of this information is

numbers in Emergency ResponsePlan and other documents.

unnecessary and is not relevant to the

Applicant will provide a copy of thedocument with these redacted uponrequest.

application process.It is an invasion of personal privacy and may becontrary to law.

Page 2 of 2

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