2. Certain statements contained in this Presentation constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. All statements other
than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", “opinion", "continue", "estimate", "expect",
"may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", “plans” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors
facing the Corporation. Risks, uncertainties and other factors may be beyond the Corporation's control and may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
Canamax believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements
included in this Presentation should not be unduly relied upon by investors. These statements speak only as at the date of this Presentation and are expressly qualified, in their entirety, by this cautionary statement. In
particular, this Presentation contains forward-looking statements pertaining to the following: future plans and operations; reserve estimates; expectations of initial and future production; cash flow; capital expenditures;
production targets; drilling inventory; netbacks; development potential; production acquisition costs; and acquisitions.
With respect to forward-looking statements contained in this Presentation, Canamax has made assumptions regarding, among other things, results of future operations, the legislative and regulatory environments of the
jurisdictions where Canamax carries on business or has operations, the impact of increasing competition and Canamax’s ability to obtain additional financing on satisfactory terms. Canamax’s actual results could differ
materially from those anticipated in these forward-looking statements as a result of the risk factors included in this Presentation such as: the impact of general economic conditions; industry conditions; volatility in the market
prices for natural gas and crude oil; currency fluctuations; uncertainties associated with estimating reserves; geological, technical, drilling and processing problems; liabilities and risks, including environmental liabilities and
risks inherent in natural gas and crude oil operations; stock market volatility; the ability to access sufficient capital; incorrect assessments of the value of acquisitions; and, competition for, among other things, capital,
acquisition of reserves, undeveloped lands, equipment, services and skilled personnel.
This forward-looking information represents Canamax’s views as at the date of this Presentation and such information should not be relied upon as representing its views as of any date subsequent to the date of this
Presentation. Canamax has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-
looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ
materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate, as results and future events could differ materially from those expected or estimated in such
statements. Accordingly, readers should not place undue reliance on forward-looking information.
The forward-looking statements contained in this Presentation speak only as of the date of this Presentation. Canamax does not undertake any obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, unless required by applicable securities laws.
Undue reliance should not be placed on management's assessment of reserve estimates, resource potential and initial and potential production rates. All references to such information contained herein are based upon
internal targets as prepared by management of Canamax and are not an estimate of reserves, resources or of production rates that may actually be achieved. Such information has been provided to assist the reader in
understanding certain principal factors upon which management has relied in making capital investment decisions and for internal budget preparation. Reserve potential information provided in this Presentation includes both
discovered and undiscovered resources and recoverable reserve characteristics, and there is no certainty that any portion of the undiscovered resources will be discovered and, if discovered, that any volumes would be
economically viable or technically feasible to recover or produce. Undue reliance should not be placed on estimates of reserve potential in terms of assuming Canamax's reserves or recoverable resources. All estimates of
reserve potential contained herein are based upon internal estimates of management of Canamax.
This Presentation contains references to Original Oil in Place ("OOIP") which is equivalent to estimates of oil and gas classified as Discovered Petroleum initially in Place ("DPIP") which are not, and should not be confused with
oil and gas reserves. "Discovered Petroleum Initially in Place" is defined in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") as the quantity of hydrocarbons that are estimated, as of a given date, to be
contained in known accumulations. DPIP is divided into recoverable and unrecoverable portions, with the estimated future recoverable portion classified as reserves and Contingent Resources, as defined in the COGE
Handbook. There is no certainty that it will be economically viable or technically feasible to produce any portion of the DPIP except to the extent identified as proved or probable reserves. Resources do not constitute, and
should not be confused with, reserves. It should be noted that given the current early stage of development of Canamax's properties, estimates of DPIP potential might change significantly in the future with further
development activity and the amount of Contingent Resources has yet to be estimated. The resource potential estimates provided herein are estimates only and the actual resources may be greater than or less than the
estimates provided herein. A recovery project cannot be defined for these volumes of DPIP at this time. There is no certainty that it will be economically viable or technically feasible to produce any portion of these potential
resources.
The information contained in this Presentation does not purport to be all-inclusive or to contain all information that a prospective investor may require. Prospective investors are encouraged to conduct their own analysis and
reviews of Canamax and of the information contained in this Presentation and the public record. Without limitation, prospective investors should consider the advice of their financial, legal, accounting, tax and other advisors
and such other factors they consider appropriate in investigating and analyzing Canamax. Additional information relating to Canamax is available on the Canadian System for Electronic Document and Analysis and Retrieval
(“SEDAR”) at www.sedar.com
Any financial outlook or future-oriented financial information, as defined by applicable securities legislation, has been approved by management of Canamax. Such financial outlook or future-oriented financial information is
provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other
purposes.
2
Reader Advisory and Cautionary Statements
3. • Consolidate financially distressed micro caps
• Exploit low risk development opportunities
• First mover advantage – few companies targeting space
• Top tier technical and financial competence
The
Opportunity
• Completed 4 accretive deals and farm-in in last 9
months – over 1,000 boe/d production capability
• Closed 3 financings - $20mm gross proceeds
• Maintain strong balance sheet – No debt
Continuous
Execution
• Focus on consolidation in core areas
• Targeting 2,000-3,000 boe/d in 12-24 months
• Combination of acquisition and exploitation
• Multi-year inventory of low risk drilling locations
Visible Growth
3
Growing shareholder value
4. Fall 2013
• Brazeau – Acquired 100% working interest in 2 sections – no up front investment,
Recompleted 2 wells in Cardium and commingled 1 well
• Flood - Expand Energy acquisition for net $0.7mm, Large Montney Oil play 100% working interest ,
37 sections, 3D Seismic, drilled water disposal well and upgraded battery for injection
• Wapiti - Completed farm-in - drilled horizontal Cardium well for gross $3.5mm IP 30 – 405boe/d (284
net), and completed land swap to acquire a more prospective section
Q1 2014
• Acquisition of Ki Exploration for $6.0mm
• 330 boe/d production and 2P reserves of $16.6mm
• Metrics - $18,000 boe/d or 3.0x trailing cashflow
• Completed financing for $13.0mm to fund Ki acquisition and Capex
• Purchased additional Flood assets – 3.75 additional net sections, 40 boe/d and gas pipeline with
sales point and compressor
Q2 2014
• Announced capital budget for remainder of 2014
• Develop Flood (8 wells, recomplete 3 wells & infrastructure)
• Drill 1 well (0.7 net) at Wapiti and recomplete 4 wells in Retlaw/Brazeau
• Drilling and recompletion program in progress - good initial results
• Rounded out management and operations team capable for expansion 3000 - 5000 boe/d
4
Acquisition & Exploration to date
Targeted calendar 2014 exit production rate 1,400-1,500 boe/d (55% Oil & NGL’s)
5. 5
Corporate Snapshot
Stock Exchange TSX.V – Symbol CAC
Current share price – at June 23, 2014 $1.77
Capital Structure
Common stock (basic)
(fully diluted)
(Insider ownership – fully diluted)
Market Capitalization - Basic
Cash and working capital – Feb 28, 2014 (Proforma) (1)
Enterprise value - Basic
41.3mm
57.4mm
15%
$73mm
$10mm
$63mm
(1) Proforma Ki Exploration acquisition and net proceeds from May financing
(2) Production capability as of April 7, 2014 included 977 BOE/d of actual (Canamax + Ki) plus 100 estimated BOE/d coming on stream in June at Flood
Production and Reserves
Production capability (2)
Oil & NGL’s %
1P Value (as at Feb 28, 2014)
2P Value (as at Feb 28, 2014)
Undeveloped land (Net acres)
Field Net Back (quarter ended Feb 28, 2014)
1077 boe/d
52%
$34mm
$55mm
53,000
$28/boe
6. 6
Experienced Management and Board
MANAGEMENT
Brad Gabel – President & CEO and Director
• Involved in numerous acquisitions and divestitures (private and
public companies) - $360mm
• President of Pure Energy Services (TSX Listed sold for $280m),
• Founder & CEO of Canadian Sub-Surface (was TSX listed)
Jeremy Krukowski, P.Eng – Chief Operating Officer
• VP Operations for Rimfire Energy Inc. start-up to 600 boe/d,
Manager of Operations at Onyx (2006) Inc. – start-up to 600
boe/d, Manager of Operations at Onyx O&G Ltd. – start-up to
1,600 boe/d
Chris Martin, C.A. – VP Finance and CFO
• VP Finance and CFO of Pure Energy Services, Canadian Sub-
Surface Energy Services, Jet Energy and Calvalley Petroleum
• Involved in numerous acquisitions and divestitures
Karen Genoway – Landman
• VP Land at Onyx O&G Ltd. and Rimfire Energy Inc., VP Land at
Enerplus Corp.
Nabil Khouri. P. Geol – Geologist
• Over 45 years experience in WCSB. Worked with Pan Canadian,
Amerada Hess, Onyx, Ascot and Rimfire
BOARD OF DIRECTORS
Kevin Adair – Executive Chairman
Hugh Ross – Director
Mark Shilling – Director
Stuart McDowall – Director
Allan King – Director
Kevin Delaney - Director
OPERATIONAL & EXECUTIVE TEAM
Ian Buchanan – Internal legal council and
corporate secretary
Jeff Lane, P.Eng – Operations & Production
Manager
Bonnie Lamming CA - Controller
Gary Sveinson – Production manager
7. 7
Canamax Core Areas
Flood (100% WI) & Hines Creek (80% WI)
• Flood: Montney Oil; large land position (41 net sections);
28.5km 3D seismic, 7500 BBL battery, gas sales line; water
disposal well and 10 wells
• Hines Creek: Mannville, Montney & Gething; 25.0 net
sections, battery and disposal have year round access
Brazeau River (100% WI)
• Cardium and Belly River light oil
• 4 producing wells (2 sections)
Wapiti (70% WI) & Bilbo (63% WI)
• Wapiti: Cardium light oil
• Farm-in earning well drilled (1.4 net sections) and on
production
Retlaw (75% WI)
• Mannville medium gravity oil & shallow cretaceous gas; 32 net
sections; good seismic coverage
8. 8
Flood – Large OOIP Montney oil development play
Recently acquired 5 wells, land and sales line
Total of 41 net sections with 28.5km2 of 3D seismic
7,500 Bbl/d oil battery in place
Significant development potential & water disposal
Low decline rates, Water floodable
Vertical well development plan
Drill, complete and tie-in cost of less than $1.0mm
Similar economics to Saskatchewan “Viking oil play”
Acreage is on trend
with Worsley, Dixonville
and Grimshaw
Montney oil fields
Major activity in the
area with the majority
of the discoveries in
mid-2000’s
3D Seismic Coverage
Oil Battery Injector Well
LEGEND
Canamax 100% Lands
Recent Asset Purchase
Montney Production
Canamax Well
Montney Oil Offsetting Production
Pool Montney A Montney C Triassic D Montney F TBD
Operator CNRL Spyglass Storm Petrus Canamax
Founder Blue Mt Trigger Belamont Devon Expand
Strike Area Worseley Dixonville Grimshaw Tangent Flood
Discovered 2004 2004 2007 2006 2011
Producers 37 111 11 22 8
Injectors 9 81 1 0 1
Production (bbl/d) 576 2,687 241 215 150
Cumulative Oil (bbl) 1,751,657 8,305,576 460,155 936,457 186,000
Worlsey
Dixonville
Grimshaw
Information as of March 2014 (Accumap)
9. 9
Flood - Comparison to Viking play
Company Raging River Whitecap Beaumont Canamax
Asset Dodsland Lucky Hills Kerrobert Flood
Assumptions
Well Cost ($MM) $0.90 $0.93 $0.90 $0.85
IP 30 (boe/d) 60 120 85 50
Liquids (%) 95% 80% 96% 90%
Yr1 Decline (%) 60% 80% 80% 50%
Yr2 Decline (%) 10% 20% 8% 10%
Yr3 Decline (%) 5% 5% 3% 6%
Yr4 Decline (%) 5% 5% 3% 6%
EUR (mboe) 49.5 80.0 56.5 96.0
Liquids Content (%) 96% 80% 98% 90%
Economics 1 2 3 4
IRR (%) 85.0% 127.4% 121.9% 74.6%
NPV(10%) ($MM) $1.2 $1.8 $1.9 $1.6
Payout (years) 1.0 0.5 0.7 1.3
F+D ($/boe) $18.18 $11.63 $15.93 $8.85
Recycle (netback/F+D) 2.8x 3.9x 4.1x 5.0x
Investment Ratio (inv./NPV10) 129% 188% 210% 193%
0
20
40
60
80
100
120
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
RRX - Dodsland WCP - Lucky Hills
Beaumont - Kerrobert CAC - Flood
Key assumptions include:
• Commodity prices have been kept flat at
$90/bbl Edmonton par with at $10
quality differential and $4.00/mcf AECO
• Canamax cash flows include $17.00/boe
variable opex
• EUR of 96mboe is based on primary of
60mboe and secondary of 36mboe per
well
• Secondary recovery is based on
waterflood of similar formations
Months on production
DailyProduction(boe/d)
10. 10
Flood – Potential development plan
Phase 2 - 2015
• Second phase drilling
commences summer of 2015
• Drill and complete an additional
11 vertical wells
• Capex spend $9.9mm
Phase 1 - 2014
Bring on water disposal facility
and reactivate 4 wells
• Drill and complete 8 vertical wells
• Complete infrastructure including
pipeline to injection facility, and
tie in to gas sales line
• Capex spend $10.7mm
Reserve Parameters Unit Montney Oil
OOIP (per section)* MMbls 3.7
API Degree 29.5
Recovery Factor % 10.8
Recoverable Oil MMbls 0.4
Recoverable Gas BCF Flared
Recoverable Boe MMBOE 0.4
Single well economics NPV10 $1.5mm
Second Phase 2015
• 11 Vertical Wells
First Phase 2014
• 8 Vertical Wells
LEGEND
Canamax Lands
Phase 1 Location
Phase 2 Location
Work-over Well
• Pool size and future development will likely increase based on delineation and operational success
• Phase 3 development will include more locations to the southwest and may begin waterflood process
11. 11
Management internal reserve estimates @ 100% WI
Wapiti – Cardium Oil
Newly Acquired
Section
New 9-21 Hz Cardium
Well on Production
Ki Acquisition
Reserve Parameters Unit Wapiti
OOIP (per section) MMbls 4.7
API Degree 42.0
Recovery Factor % 8.1
Recoverable Oil MMbls 0.5
Recoverable Gas BCF 1.5
Recoverable Boe MMBOE 0.8
Single well economics NPV10 $3.2mm
* Recent Area Wells have an average IP of 190 BOE/d
LEGEND
Producing Well
Horizontal Location
• Farm-in with RimFire Energy – net interest 70%
• Earning well at 9-21-67-8W6 has been drilled & completed as Cardium
oil well – on production March 25
• IP 30 rate 405 BOE/d (net 284 BOE/d - 86% Oil & NGL)
• Newly acquired section from asset swap (70% net interest)
• 7 additional development locations – all horizontal wells
• Gross cost to drill, complete and equip - $3.5mm
• 2014 Capex budget = 1 Hz well $2.5mm net
12. Canamax holds 100% WI in 2.25
sections
4 Producing wells
1,620 mmcf gas production (270
boe/d)
150 bbls per day oil production
Gas compressor installed to improve
efficiency and remove third party fees
Canamax owns drilling pads and
pipelines
Multi-zone potential
Proven Cardium Oil
Belly River – “G” & Basal Zones
10 potential locations
12
Brazeau River – multi-zone potential
Management internal reserve estimates @ 100% WI
Multi-Zone
Potential Reserve
Parameters Unit
Middle Belly
River (G
Zone) Basal Zone Cardium
OOIP (per section) MMbls 8.1 6.1 4.5
API Degree 42.0 42.0 45.0
Recovery Factor % 3.7% 4.9% 5.3%
Recoverable Oil MMbls 0.3 0.3 0.2
Recoverable Gas BCF 0.7 0.7 1.5
Recoverable Boe MMBOE 0.5 0.5 0.4
Canamax Lands
Deethree Lands
Belly River Production
Cardium Production
Mannville Production
Belly River G
Basal Belly River
Belly River Play
Vertical Well Locations
Cardium Play Upper Mannville (Wilrich) Play
Wilrich Recomplete
13. 2014 Capital Budget - $14.0mm
Flood $10.7mm
Wapiti $2.5mm
Brazeau $0.5mm
Retlaw $0.3mm
13
2014 Capital Budget
• Recomplete 3 wells
• Drill and complete 8 wells
• Tie-in and infrastructure
• Drill, complete and equip 1
well (0.7 net)
• Recomplete 1 Wilrich well
• Recomplete 3 wells and
equip
Estimated incremental production range for 2014 Capital Budget 750-850 boe/d (IP 90)
Resulting flowing efficiency rate between $16,500 and $19,000 per barrel
Canamax may make changes to its capital expenditure budget depending on a number of factors, including drilling and and completion results, business conditions, commodity
Prices and prospective acquisitions and divestitures.
14. 400
600
800
1000
1200
1400
1600
Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14
High Case
Low Case
14
Production Summary – Actual & Forecast
Production estimate additions in second half of 2014 reflect capital budget
BOE/D
May Production
Target Exit Production Target 60% Oil
& NGL’s
15. 15
Exploitation program – Low risk development
(1) Canamax may make changes to its capital expenditure budget depending on a number of factors, including drilling and and completion results, business conditions,
commodity prices and prospective acquisitions and divestitures.
Total Development Potential (1)
Area Description Zone
Net Capital
Required
Low Case
Net Capital
Required
High Case
Est Net Production
IP (365) Low Case
Est Net Production
IP (365) High Case
($mm) ($mm) (Boe/d) (Boe/d)
Flood 40 – 150 Vertical wells Montney $38.0 $140.0 1,480 5,550
Brazeau 2 – Hz wells Belly River G $9.0 $9.0 300 375
2 – Hz wells Basal Belly River $9.0 $9.0 300 375
2 – Vertical wells Cardium $3.5 $3.5 170 265
2 – Hz wells Wilrich $17.0 $17.0 1,000 1,790
Wapiti 7 – HZ wells Cardium $14.7 $14.7 700 1,050
Hines Creek 1 – Hz well Montney $1.5 $1.5 60 100
Retlaw 1 – Recompletion Glauconite $0.3 $0.3 20 40
Retlaw 1 – HZ well 25% WI Glauconite $0.5 $0.5 15 40
Totals 60-170 Wells $93.5 $195.5 4,045 9,585
16. 16
Investment highlights
• First mover advantage – little or no competition in microcap
space.
• Management, top tier technical and financial competence
• Low cost, no-nonsense decision making
How we are
different
• Relationships with financial institutions to access distressed
companies
• Additional prospects identified
Acquisition
Pipeline
• Focus on consolidation of quality assets in core areas
• Maintain strong balance sheet
• Acquisition and low risk exploitation, and asset optimization
• Multi year inventory of drilling locations
Disciplined &
Focused
