Spyglass Resources Corp. - PrecisionIR

Key Attributes & OutlookPro Forma OperationalCurrent Production [boe/d] 17,500% Oil & Liquids [%] 49%Total Proved Reserves (1) [MMboe] 57.5Total Proved plus Probable Reserves (1) [MMboe] 93.9Undeveloped Land (Net) [Acres] 645,000Light Oil Drilling Inventory [Locations] >1,000Years of Sustaining Development Available [Years] >20Pro Forma FinancialShares Outstanding [MM] 129Net Debt and Working Capital (2) [$MM] $293Credit Facility Capacity [$MM] $400Estimated Tax Pools [$MM] $900Hedging ProgramHedging Target [% Production] 50%-60%Time Horizon [months] 12-18Crude Oil Hedged for 2013 [% Production] 32%Natural Gas Hedged 2013 [% Production] 41%2013 Outlook (1)Exit Production Forecast [boe/d] 18,000% Oil & Liquids [%] 52%Average Production Forecast [boe/d] 16,000% Oil & Liquids [%] 51%Cash Flow Forecast (2)(3) [$MM] 104Capital Expenditures [$MM] $70 - $80Dividends [$MM] $26Net Debt to Annualized Exit Cash Flow [x] 2.1xBasic Payout Ratio [%] 25%All-in Payout Ratio (4) [%] 95% - 100%Preliminary 2014 Outlook (2)(3)Average Production Forecast [boe/d] ~18,000% Oil & Liquids [%] 53% - 55%Capital Expenditures [$MM] $90 - $100Dividends [$MM] $35Net Debt to Cash Flow [x] 1.7xBasic Payout Ratio [%] < 25%All-in Payout Ratio (4) [%] 80% - 85%(1) Reserves from reserve reports for each company as of December 31, 2011 and the updated GLJ report on certain propertiesfor Charger as of May 31, 2012 adjusted for AvenEx and Charger minor dispositions in 2012 and adjusted for 2012production to October 31, 2012 as forecast in the December 2011 reserve reports.(2) Pro forma net debt and working capital incorporates cash proceeds from the disposition of Elbow River Marketing andestimated transaction costs and excludes risk management assets and liabilities as of the closing date of the transaction.(1) Assumes transaction closes March 31, 2013 with Pace as continuing issuer. 2013 outlook reflects one quarter of Pace projectionsand three quarters of pro forma Spyglass projections.(2) Commodity price assumptions: 2013 - Edm Light C$88.89, corporate realized crude oil and liquids price C$74.23 at the wellhead,AECO $3.39 / Mcf. 2014 - Edm Light C$88.54, corporate realized crude oil and liquids price C$79.42 at the wellhead, AECO $3.79/ Mcf.(3) Commodity price sensitivities: 2013 - a $1.00/bbl change in realized crude oil prices, results in a $0.9 million change in annualizedcash flow; a $0.50/Mcf change in natural gas prices, results in a $6.0 million change in annualized cash flow. 2014 - a $1.00/bblchange in realized crude oil prices, results in a $2.5 million change in cash flow; a $0.50/Mcf change in natural gas prices, resultsin a $8.0 million change in cash flow.(4) All-in Payout Ratio is defined as Capital Expenditures plus Dividends divided by Cash Flow.Spyglass Resources Corp.7