Alberta Completes Crown Land Sale

Analyst Commentary

From TD Securities:
Below are the key highlights from the land sale:

The total proceeds of $17.1 million (average of $249/acre) were slightly
above the year-to-date average of $15.1 million.

In our view, the most interesting parcels were the four sections of Montney
rights acquired in the Gold Creek/Wapiti areas. The sections were acquired
for a total of $7.0 million (average of $1.7 million/section or $2,789/acre).
The area has seen significant Montney drilling and M&A activity from companies
such as NuVista, Inception Exploration (private), Velvet Energy (private), Apache,
and Paramount Resources. There are 7.5 additional sections posted for the
September 27 and October 11 land sales.

The East Duvernay also saw some activity with 15.5 sections acquired in
the West Shelf Basin and four sections in the East Shelf Basin. The West
Basin metrics were low compared to the prices paid in the East Shelf Basin ($100/
acre vs. $1400/acre); however, we believe the key things that investors should be
watching are the upcoming land sales on September 27 and October 11, where
more than eight townships of land have been posted in less developed parts of
the East Duvernay play.