West 5 Resources Inc. – Corporate Divestiture

Corporate Divestiture

Bid Deadline: August 10, 2023 at 4:00 PM MST

West 5 Resources Inc. (“West 5”, or the “Company”) has retained Earth Horse Energy Advisors (“Earth Horse”) as its exclusive financial advisor and agent to assist with a corporate sales process. West 5’s assets are located in the Chip Lake/Northville area of Alberta.

Divestiture Overview

• Focused company with no employees, no severance, no office obligations, no debt and a working capital surplus of approximately $500,000
• 319 boe/d (52% Liquids) of long-life, light (37.8o API) sweet oil producing from the Rock Creek Formation
• Operated, high working interests in the Chip Lake/Northville area of west-central Alberta
• Waterflood and well reactivations have improved production, cash flow and recovery of reserves
• Net Operating Income (“NOI”) of approximately $3.6 million per year
• In November 2022, 30 e3m3/d of third-party production began being processed at West 5’s 10-29 gas plant at a fee of $35.00/e3m, fee is included in NOI
• 100% owned and operated infrastructure with a gas plant with NGL recovery
• 40 e3m3/d of firm service with TC Energy for natural gas delivery
• PDP and Total Proved reserves of 919.2 Mbbl and 2P reserves of 1.241MMboe witha RLI of 7.9 years and 10.7 years respectively
• Unbooked Infill drilling locations in the Rock Creek
• LLR of 1.34 as at June 2023 which is expected to increase

Township 52-54 Range 9-11 W5

(1) Based on the January to April 2023 Lease Operating Statements for the Property which incorporates the processing income
(2) As of January 1, 2023 using various consultant’s Q1 2023 forecast pricing

For more information visit Earth Horse Energy Advisors’ website at www.ehenergyadvisors.com or contact Ryan Ferguson Young, President of Earth Horse Energy Advisors at [email protected] or (403) 615-2975.