Delineation History

Hangingstone Project Update for
AER October 2012 to September 2013
Presented 2013-11-05
Hangingstone Project - Introduction

Project Background
Subsurface
Facilities
Compliance
Future Plans
Project Background
Hangingstone Project - Acquisition and

Delineation History
AOC Hangingstone
Hangingstone Regional Development Map
Lands outlined ( ) acquired and delineated

between July 2006 and February 2010
Fort McMurray
Lands outlined ( ) acquired in October 2010

and delineated by March 2011 as Hangingstone
Project 1 application submitted March 2011
Initial development area selected for its proximity
to Infrastructure and to act as a central
development node for the overall Hangingstone
Asset.
CPF
Lands outlined ( ) acquired in October 2011

and delineated over the following two winters
formulating the initial development for
Hangingstone Expansion submitted in March of
2013
Asset Statistics & Development

Overview
Sales pipeline
Fuel Gas
Enbridge
Cheecham
117 MMbbl reserves; 912 MMbbl contingent

resource
Asset planned to be developed in three phases:
Project 1 - 12,000 bbl/d (approved & in construction)

Project 2 - 40,000 bbl/d (current EIA application)
Project 3 - 30,000 bbl/d (current EIA application)
(1) Contingent resource best estimate
Hangingstone Project - Background

Objective
Construct, operate and reclaim a
bitumen recovery scheme using
SAGD technology to produce
bitumen up to a rate of 12,000 bpd.
Scope
20 km from Fort McMurray.
5 production pads.
25 horizontal well pairs.
CPF and associated facilities.
Offsite services and utilities.
Infrastructure:
Fuel Gas from TCPL.
Dilbit export to Enbridge
Cheecham Terminal.
Diluent commercial
negotiations ongoing.
Hangingstone Project Surface and Subsurface

Layout
Hangingstone Project Scheme Map
Subsurface
Hangingstone Project - Subsurface

Section Outline
Subsurface Data Overview
Stratigraphy and Reference Well from HS1
Depositional Environment of the McMurray Formation
McMurray Net Pay Map
McMurray Pay Structure and Fluid Isopach Maps
Caprock Geomechanics
Drilling and Completion
Scheme Performance
Hangingstone Project - Subsurface Data Overview

Hangingstone Lease
Vertical Wells
Area
(Km2)
MCMR
Cored
Wells
Image
Logs
Caprock
Core
Development
Area
5.1
26
30
Project Area
5.6
26
30
10
Hangingstone Project - Subsurface Data Overview

Seismic
2011 Hangingstone River 3D

2011 Hangingstone River North 3D
2012 Halfway Creek 3D
2012 Highway 3D
3D acquired in 2011 and 2012, merged in 2012.

Total Proprietary 2D ~ 450 km.
Total 3D Area ~98 km2 (Merged).
Covers Development Area.
Proprietary 2D
3D Parameters:
Source Line/Source Spacing: 60 m/
20m.
Receiver Line/Receiver Spacing:
60(40) m/20m.
11
Hangingstone Project - Stratigraphy and

Reference Well
1AA/03-31-086-09W4/00
Middle McMurray Target Reservoir

12

Depositional Environment of Middle McMurray
Modern Analog Estuarine Environment
(Digul River Estuary, Papua New Guinea)
Middle McMurray Deposits

Reference Well
Formed dominantly in a mixed tide and

wave dominated estuary system.
Digul River
Outer
Fly River
Reservoir is composed of amalgamated

point bar deposits dominated by finemedium grained, channel sand. Mud clast
breccia is commonly found near the base
of the reservoir. The reservoir fines
upwards into interbedded sand and mud
(sandy and muddy IHS). Thin mud layers
are typical towards the top of the reservoir.
Wabiskaw
McMurray
Top Pay
IHS
CS
Breccia
Depositional Model
CS
Mud
CS
Mud
Base Pay
Fining Upward
Paleozoic
SIHS, MIHS
Breccia
Sand
Channel Sand (CS)
Breccia
SIHS (IHS)
MIHS
Mudstone
13

Definition of Net Pay and Map
So
Middle McMurray
Gross Pay
definition:
Wabiskaw
McMurray
Top Pay
GR < 70 API
Density > 27%
Resistivity >18 ohm
Water Saturation < 50%
Includes less than 1 m thick
mud.
Net Pay thickness typically
excludes mud.
Base Pay
Paleozoic
14

Structural Cross Section NW-SE Across HS1 Area
A
Wabiskaw
McMurray
Top Pay
Gross 36m
Net 26m
Gross 36m
Net 31m
Gross 38m
Net 22m
Gross 43m
Net 38m
Gross 44m
Net 39m
Gross 36m
Net 21m
Base Pay
Paleozoic
15

Structural Cross Section W-E Across HS1 Area
B
B
B
B
Wabiskaw
McMurray
Top Pay
Gross 36m
Net 31m
Gross 36m
Net 27m
Gross 43m
Net 38m
Gross 38m
Net 30m
Gross 42m
Net 32m
Base Pay
Paleozoic
16

Structure Map of Top of Bitumen Pay
Range of elevation from 260 to 295
masl, highest over drainage pads.
So
Wabiskaw
McMurray
Top Pay
Base Pay
Paleozoic
17

Structure Map of Base of Bitumen Pay
Range of elevation from 245 to 260
masl, low over drainage pads.
So
Wabiskaw
McMurray
Top Pay
Base Pay
Paleozoic
18

Isopach Middle McMurray Gas Map
Middle McMurray gas has minimal
thickness and limited distribution
within the Development Area.
So
Wabiskaw
McMurray
M. McMurray
M. MCR Gas
Top Pay
Base Pay
Paleozoic
19

Isopach Middle McMurray Bottom Water
Wabiskaw
McMurray
M. McMurray
Top Pay
Base Pay
Basal Mud
Basal Water Zone
The permeability measured from core within the muddy interval between the
bottom water and the bitumen reservoir through interval 193.80 to 193.85 m MD
is 4.30 millidarcy (kV) and 71.0 millidarcy (kMax). Denoted on photo by
Paleozoic
Interbedded mud and

water saturated sand
20

OBIP and Reservoir Properties
Avg Porosity
Avg So
OBIP
(Vol Frac)
(Vol Frac)
(mln m)
Drainage Areas
0.35
0.75
13.0
Development Area
0.35
0.75
14.2
Project Area
0.35
0.75
14.3
Depth
Typical Producer
Pres Initial
@ 190mTVD
Tres Initial
Reservoir
Kh, avg
Reservoir
Kv, avg
Bitumen Viscosity
@ Tres Initial
(m TVD/masl)
(kPaa)
(C)
(mD)
(mD)
(cP)
190/255
600
10
4,000
3,200
>1 mln
21

Caprock Description Core and Image Data
Primary Caprock
Caprock Core 1AA\10-30-86-9W4\00
Caprock is defined as the unit between the top of

the Clearwater Formation and Wabiskaw.
Two main units within the caprock; lower argillaceous and
upper silty mud.
Primary caprock is the lower argillaceous unit which ranges
from the top of the Clearwater Argillaceous to the top of
Wabiskaw.
Composed primarily of shales and siltstones
22

Caprock Description Seismic Analysis
A
Wabiskaw
Devonian
Clearwater
Variance attribute time slices through

formations.
1AA\10-30
100\04-31
102\04-31
Clearwater
Clearwater Arg
Wabiskaw
Devonian
Seismic and image log analysis indicates

laterally continuous competent caprock
unit across the area.
23

Caprock Geomechanics Mini-Frac
Mini-Hydraulic Fracture Test Summary,
Gauge Pressures (1AA/10-30-086-09 W4/00)
Mini-Frac test performed February 2011 on

1AA/10-30-086-09 W4/00.
Approval for 2,200 kPaa during circulation.
Approval for 2,000 kPaa during SAGD mode.
Safety factor of 33% with respect to base of
the Clearwater shale.
Safety factor of 13% with respect to top of
pay interval of the middle McMurray bitumen
sands.
Interval
Shale
CLWT Shale Base
Top Middle MCM Pay
Depth
Minimum
(m TVD)
136
155
Mini-Frac test depths
Fracture Gradient Fracture Pressure Operating Pressure Safety Factor

Mini-Frac Test, Smin Minimum (MFP) Maximum (MOP)
Minimum
(kPag/m)
(kPaa)
(kPaa)
(1 - MOP/MFP)
21.20
2,983
2,000
33%
14.17
2,296
2,000
13%
24

Caprock Geomechanics Tri-Axial Testing & Model
Tri-axial tests showed thermally induced

mechanical hardening.
Beneficial to SAGD operations.
Geomechanical model created using only
RT tri-axial data. Model supported safe
operating pressure with respect to
caprock integrity.
Caprock Core 1AA\10-30-86-9W4\00
Primary Caprock
11 tri-axial tests performed.

7 at room temperature (RT).
4 at high temperature
o
(75 to 175 C).
XRD done on all samples.
Tri-axial lab samples

25

HS1 Planned Well Layout
Example, Pad AA
100 m interwell spacing
650 to
850 m
slotted
lateral
section
Slotted
Liner
Lateral
Injectors
target
5 mTVD
above
producers
along
horizontal
lateral
ICP
75 m
Tangent
~350 m
(~450 mMD)
displacement
to ICP
Build
Delineation
Wells
Observation
Wells
AA P1 to AA I5
Well pairs are numbered 1 to 5 from left-to-right,

when facing down the well pairs trajectory.
26

Typical SAGD Wellbore Schematic
Mechanical lift required to bring fluids to surface.
WHP of ~2000 kPaa (downhole MOP 2,000 kPaa).
Gas lift cannot bring fluids to surface.
All-metal PCPs will be run in the 25 producers,
with the option to trial ESPs at a future date.
Injector long string is a
continuous pipe size
(application showed a swedge
in lateral heel).
27

Planned Instrumentation in SAGD Wells
Downhole Instrumentation
Injectors will have continuous real-time
monitoring at surface of casing (blanket)
gas pressure to determine downhole heel
pressure during SAGD phases.
Select injectors will also have downhole
instrumentation and/or adjacent
observation wells to monitor injection
temperature and pressure.
Producers will have downhole temperature

and pressure instrumentation.
Producer Only:
Fiber (40 to 60pt temp FBG or DTS)
with 1 or 2 pressure sensors
SS SS
SS SS
Producers will also have casing gas

pressure monitored during all SAGD
phases.
Producer and Injector:

Fiber (40 to 60pt temp FBG or DTS)
with 1 or 2 pressure sensors
SS: 4 injectors with Steam Splitters
28

Planned Instrumentation in Observation Wells
Typical Observation
Well Completion
15 observation (obs) wells in total.

15 observation wells will have thermocouples (TCs).
10 observation wells will have piezometers (piezo).
5 obs wells will have TCs in the upper McMurray,
Wabiskaw, and Clearwater for proactive caprock
monitoring.
102/03-31-086-09W4 also has piezos in these
zones.
100/07-31-086-09W4 will have TCs in isolated bottom
water.
100/11-30-086-09W4 has a piezo in isolated bottom
water.
29

Planned Instrumentation in Observation Wells
AOC Hangingstone 100/03-31-086-09W4/0
AE
AD
AC
AA
AB
10 Vertical delineation well

5 Obs wells with 10 to 20 TCs
10 Obs well with 10 to 20 TCs
and 3-6 piezometers (installed)
Obs well also monitoring above pay
(U MCM, Wab, and CLW caprock)
Obs well also monitoring below pay
(basal zone)
Planned Producer Placement
Planned TC Sensor Interval

Piezometer
14 observation wells within drainage areas and

1 observation well adjacent to drainage area AC
30

Hangingstone Project Drilling Status
Hangingstone Project Drilling Program
AE
AD
Consists of 2 SAGD slant drilling rigs.

AC
Drilling commenced August 4th, 2013.

Pad Drilling Order:
Rig 1 AA, AC, AE.
Rig 2 AD and AB.
As of September 30th, 2013:
AB
AA
Pad AA: Drilled 10 surface holes, 5 producer

intermediates and 3 producer laterals with
set liner.
Pad AD: Drilled 10 surface holes and 3
producer intermediates.
Red Line indicates Laterals Drilled with liner set
31
Hangingstone Project Pad AA

Pair 1 - Results
A
Actual Well Path
Total lateral length 846 mMD.

ICP Depth: 479 mMD and Total Depth 1,325
mMD.
Flat across the lateral section.
Well is placed low in reservoir in clean bitumen
rich sand with 100% reservoir along wellbore.
32

Pair 2 - Results
B
Actual Well Path
Total lateral length 850 mMD.
ICP Depth: 454 mMD and Total Depth 1,304 mMD.

Flat across the lateral section.
Well is placed low in reservoir in clean bitumen
rich sand with 85% reservoir along wellbore.
33

Pair 4 - Results
Actual Well Path
Total lateral length 851.5 mMD.

ICP Depth: 454.5 mMD and Total Depth 1,306
mMD.
Gradual rise across lateral section.
Well is placed low in reservoir in clean bitumen rich
sand with 95% reservoir along wellbore.
34

Scheme Performance History
Production History:
No production history.
First steam anticipated end Q4 2014.
35

Scheme Performance Pad Recoveries
Pad
Well Pairs
Well Pair
Length
OBIP
Predicted
RF
RBIP
(m)
(mln m3)
(%)
(mln m3)
AA
850
2.79
50
1.39
AB
650
1.87
50
0.94
AC
750
2.70
50
1.35
AD
750
2.78
50
1.39
AE
850
2.90
50
1.45
TOTAL
25
13.0
50
6.52
36

Surface Heave Monitoring
AOC plans on monitoring surface heave.
Method and frequency are still being determined.
37

Planned 4D Seismic
AOC plans on monitoring steam growth
and conformance using 4D seismic.
Geophones will be buried over the five
drainage areas to accommodate year
round shooting.
4D baseline survey planned to be acquired
in 2014.
3.72 km2 total area.
38
Surface Operations
Hangingstone Project - Approved Plot Plan

From D078 Amendment Application 1757038
Modifications from
D078 Amendment
Application:
Location and footprint
of admin and control
buildings,
communications
tower finalized
40
Hangingstone Project - Facility Schematic

TO STEAM
GENERATORS
FUEL GAS
GLYCOL
EDUCTED VAPOURS
TO PRODUCTION PADS
MIXED GAS
SEPARATOR
FUEL GAS
GLYCOL
FROM SUPPLY
PIPELINE
UTILITY
USERS
DILUENT
RECOV. SEP.
TANK VAPOURS
VAPOUR RECOVERY
UNIT
TO DIRTY
WATER
HEADER
VRU
PRODUCED GAS
DILUENT
PG
SEPARATOR
TO SLOP OIL
TANK
FROM PRODUCTION
PADS
DILUENT
TANK
GLYCOL
TO DIRTY
WATER
HEADER
TRUCK IN
VRU
EMULSION
TREATER
SEPARATOR
DILBIT
TANKS (x2)
FROM PRODUCTION
PADS
BFW
VRU
SLOP OIL
TRUCK OUT
VRU
VRU
TO NON-SALINE
WATER USERS
TO SEPARATOR
SKIM TANK
NON-SALINE WATER
SALES OIL
GLYCOL
BFW
SERVICE
WATER TANK
FROM NON-SALINE
WATER WELLS
GLYCOL
VRU
SLOP OIL
TANK
VRU LIQUIDS
INDUCED
STATIC
FLOTATION
PACKAGE
VRU
SLOP OIL
TREATING
PKG
TO DILBIT
TANKS
TO
DESAND/
DIRTY
WATER
SYSTEM
VRU
INTERMITTENT SOLIDS
CONTAINING STREAMS
DIRTY WATER HEADER
DESAND / DIRTY
WATER SYSTEM
PW TANK
SOLIDS TRUCKED OUT
EDUCTORS
INT.
BLOWDOWN
VENT
BFW TANK
HP STEAM
HEAT
EXCHANGE
EDUCTORS
TO PRODUCTION PADS
E-18
BLOWDOWN
TO DIRTY WATER
HEADER
MIXED GAS
HP STEAM GENERATOR
PACKAGES (x2)
WASTE WATER
TANKS (x2)
EVAPORATOR / CONCENTRATOR
PACKAGES (x2)
TRUCK OUT
41
Hangingstone Project - Facility Performance

The facility is not yet in operation. As designed:
Material Rates:
Gas Usage:
Bitumen: 1,908 m3/d.
Purchased: 475 103 m3/d.
Steam: 6,677 m3/d.
Produced Gas: 7.12 103 m3/d.
Produced Water: 6,243 m3/d.
Flared: 0.39 103 m3/d (purge gas).
Diluent: 616 m3/d.
Vented: 0.12 103 m3/d (truck loading).
Greenhouse Gas Emissions:

CO2E: 0.565 Mt/y (site-generated).
Expected Power Consumption:

8.6 MW operating load.
6,278 MWh monthly import.
Values are annual averages.

Solution gas is recovered and used as fuel in the steam generators.
42
Hangingstone Project - Measurement and

Reporting
Measurement, Accounting and Reporting Plan (MARP) approval received on
October 5, 2012.
MARP updated on February 11, 2013 to capture Directive 078 amendment
application design changes and to align the MARP with the requirements of
Directive 081.
Next MARP update to the AER on or before February 28, 2014 as per Approval.
43
Hangingstone Project - Measurement

Schematics Battery
TCPL
AB MS # # # # # # #
EDUCTOR MOTIVE GAS
TO WELL PADS
SEPARATOR, TREATER,
PG SEPARATOR,
DILUENT RECOVERY
SEPARATOR
BLANKET GAS
UTILITY FUEL GAS HEADER
MAKEUP FUEL GAS
TCPL
METER
FROM TCPL
RELIEVE TO
HP FLARE
SP
DILUENT
FLOW &
DENSITY
OIL WELL
STEAM INJECTION WELL
00-Z3300
GLYCOL HEATER
PACKAGE
GLYCOL EXPANSION
DRUM BLANKET RETURN
WATER SOURCE WELL
METER TYPES
FLARE PILOT
01-Z5040/ 5050
VRU
COMPRESSOR
PACKAGES
VORTEX METER
HP FKOD
PURGE
FE
55005
NC
HP FLARE HEADER
05-SF1000
HP FLARE
STACK
01-V5500
HP FKOD
RELIEVE TO
HP FLARE
HP FKOD
PUMP
VRU
01-V1100
TREATER
01-V1050
SEPARATOR
RAG LAYERS TO
SLOP OIL HEADER
VRU
SAND TO
SAND SLURRY HEADER
INJECTION FACILITY
AB IF # # # # # # # # (506)
19/ 30-86-09 W4M
NC
NC
BITUMEN
BUILDING SUMP
ESTIMATE
RECOVERABLE STEAM/ WATER
ESTIMATE
FROM
FE-21033
FRESH WATER
DECANT
RECYCLE
PUMPS
TRUCK
TICKETS
WATER
TRUCK OUT
SLOP OIL
HEADER
01-T1520
DECANT TANK
[WATER]
SKIM TANK
HEADER
SAND SLURRY
HEADER
SAND
QUENCH
RECYCLE
PRODUCTION BATTERY
SERVICE WATER
TO PUMP SEAL FLUSHES

TO BITUMEN BUILDING SUMP
01/ 02/ 13
05/ 06/ 12
28/ 03/ 12
DATE
SW
SW
SW
BY
DESAND
PUMP
FE
14001
FE
63007
M
SECONDARY
VRU
VRU
VRU
ISF SKIM OIL

PUMPS
01-T1400
PRODUCED
WATER TANK
[WATER]
01-VZ1330
ISF VESSEL
TRUCK
TICKETS
WATER
TRUCK OUT
ISF DISCHARGE
PUMPS
TO EVAPORATOR PACKAGE
FE
14102
14152
LI
14000A
01-T1300
SKIM TANK
[WATER]
MAKEUP
01-Z1800
SLOP OIL
TREATING
PACKAGE
NC
FE
00020
INJECTION FACILITY
UTILITY FSHWATER
RE-IFA
RE-IFA
IFA
DESCRIPTION
DESAND FLUSH WATER

TO SEPARATOR/
TREATER
OIL
TRUCKOUT
TRUCK
TICKETS
LI
15200A
FE
30102B
2
1
0
REV.
INJECTION FACILITY
AB IF # # # # # # # # (506)
19/ 30-86-09 W4M
01-T1700
SLOP OIL TANK
[OIL]
SLOP OIL
PUMPS
AE ANALYZER
CBD CONTINUOUS BLOWDOWN
FE FLOW ELEMENT (ACCOUNTING METER)
H20 WATER CUT
IBD INTERMITTENT BLOWDOWN
LI LEVEL METER (RADAR TYPE)
NC NORMALLY CLOSED
NNF NORMALLY NO FLOW
NO NORMALLY OPEN
SP SAMPLE POINT
TRUCK OUT
LI
17000K
VRU
SALES OIL
OFFSPEC
PUMPS
VRU
DIRTY WATER
HEADER
RECOVERABLE UTILITY FSHWTR
TRUCK
TICKETS
LI
13100K
04-T1310
DILBIT TANK
[OIL]
OFFSPEC
METER NOT REPORTING

TO PETRINEX
ABBREVIATIONS
04-T1300
DILBIT TANK
[OIL]
FROM WELL PADS
V V-CONE METER
EQUIPMENT TAGS PRECEDED BY HCP-

INSTRUMENT TAGS PRECEDED BY HCP-XX- WHERE XX IS
THE UNIT IDENTIFIER
LI
13000K
EMULSION
M MAGNETIC METER
FE
XXXXX
TAGS
TO SLOP
OIL HEADER
RELIEVE TO
HP FLARE
PETRINEX ACCOUNTING
METER
CORIOLIS METER
PIPELINE TERMINAL
AB TM # # # # # # #
XXXXXXXX W4M
FROM PSVs (NNF)

NO
FE
XXXXX
ULTRASONIC METER
FE
55002
04-T1000
DILUENT TANK
[COND]
DILUENT
PUMPS
WELL TYPES
EST.
TO DIRTY WATER
HEADER
RECOVERED DILUENT
TRANSFER PUMPS
UNIT 01 FLARE
HEADER PURGE
UNIT 01 FLARE
SUBHEADER PURGE
LI
10000A
FE
10005
TRUCK IN
FE
00030
BLANKET GAS
RETURNS
STREAMS
WATER
BITUMEN
STEAM
GAS
DILUENT
UNIT 00 FLARE
HEADER PURGE
FE
00010
GLYCOL EXPANSION
DRUM BLANKET
01-V1220
DILUENT RECOVERY
SEPARATOR
LEGEND
TO STEAM GENERATORS
FE
16106
RELIEVE TO
HP FLARE
DILUENT SOURCE
TO STEAM GENERATORS
FE
B0370
BLANKET GAS TO TANKS

AND ISF VESSEL
01-V1700
MIXED
GAS
SEPARATOR
SP
TO DIRTY WATER
HEADER
FE
16101
FROM WELL PADS
VRU
FE
A0370
PRODUCED GASES
FROM EVAPORATORS
AND WW TRUCKOUT
TANKS
MIXED FUEL GAS
00-V1520
PRODUCED GAS
SEPARATOR
PRODUCED GAS
VENT CONDENSER
EDUCTOR
CRITICAL FUEL GAS HEADER

MP FUEL GAS HEADER
PURCHASED GAS
INJECTION FACILITY
AB IF # # # # # # # # (506)
19/ 30-86-09 W4M
BLANKET/ BUBBLE GAS
PRODUCTION BATTERY
AB BT # # # # # # # # (344)
19/ 30-86-09 W4M
PRIMARY
HANGINGSTONE PROJECT
MARP METERING SCHEMATIC
PRODUCED WATER
FE
A0201
SECONDARY
NC
PW TRANSFER
PUMPS
TO EXCESS TRUCK OUT

PRIMARY
Pr oduct ion Bat t er y

(Pg 1 of 3)
REV.
2
44

Schematics Injection Facility
INJECTION FACILITY
AB IF # # # # # # # # (506)
19/ 30-86-09 W4M
ESRD-LICENSED WATER SOURCE

AB WS # # # # # # # # (901)
ESRD LICENCE 00316166-00-00
PRODUCTION BATTERY
AB BT # # # # # # # # (344)
19/ 30-86-09 W4M
WA
FE
1010
AB WI # # # # # # # # # # # #
15-33-085-W4
SOURCE WATER WELL
FSHWTR
AB WI # # # # # # # # # # # #
06-12-086-09-W4
SOURCE WATER WELL
FSHWTR
AB WI # # # # # # # # # # # #
04-08-086-08-W4
SOURCE WATER WELL
FSHWTR
VRU
LI
30000A
WB
FE
1010
FE
30001
FE
30102B
04-T3000
WATER TANK
[FSHWTR]
WC
FE
1010
FRESH WATER
RECOVERABLE SERVICE WATER

if pump seal f l ushes
FSHWTR UTIL
evapor at ive l osses
STREAMS
WATER
BITUMEN
STEAM
GAS
DILUENT
FE
00020
FSHWTR
PLTUSE
ESTIMATE
LEGEND
WATER
PUMPS
WELL TYPES
ESTIMATE
OIL WELL
RECOVERABLE UTILITY FSHWTR
t o dir t y wat er header via sumps
ESTIMATE
PRODUCTION BATTERY
AB BT # # # # # # # # (344)
19/ 30-86-09 W4M

WATER SOURCE WELL
FE
A4310
FE
A3530
FE
A0370
03-Z2100
HP STEAM
GENERATOR
PACKAGE
FE
A3040
METER TYPES
VORTEX METER
FE
XXXXX
PRIMARY
CBD
ULTRASONIC METER
PETRINEX ACCOUNTING
METER
NO
PRIMARY
CORIOLIS METER
SECONDARY
NC
M MAGNETIC METER
IBD
V V-CONE METER
HP STEAM
TO WELL PADS
FE
B3530
MIXED FUEL GAS
03-Z2200
HP STEAM
GENERATOR
PACKAGE
FE
B3040
FE
21033
NO
PRIMARY
SECONDARY
EQUIPMENT TAGS PRECEDED BY HCP-

INSTRUMENT TAGS PRECEDED BY HCP-XX- WHERE XX IS
THE UNIT IDENTIFIER
V
PRIMARY
CBD
HP STEAM
LETDOWN
NC
RECOVERABLE STEAM/ WATER

t o dir t y wat er header via
sumps
EDUCTOR
WATER UTIL
evapor at ive l osses
IBD
LI
10000A
LP STEAM LOSS
ESTIMATE
FE
A0201
02-Z1100/ 1300
EVAPORATOR
PACKAGES
PRODUCED WATER
PRIMARY
FROM PW TRANSFER PUMPS
IBD VENT
03-T1000
BFW
TANK
[WATER]
IBD
BFW PUMPS
ESTIMATE
BLOWDOWN
NC
FE
63007
METER NOT REPORTING

TO PETRINEX
TAGS
FE
B4310
FE
B0370
FE
XXXXX
ESTIMATE
ABBREVIATIONS
AE ANALYZER
H20 WATER CUT
NC NORMALLY CLOSED
NO NORMALLY OPEN
SP SAMPLE POINT
2
1
0
REV.
03-V1500
INTERMITTENT
BD
VESSEL
RE-IFA
RE-IFA
IFA
DESCRIPTION
01/ 02/ 13
05/ 06/ 12
28/ 03/ 12
DATE
SW
SW
SW
BY
EXCESS PW
ESTIMATE
NNF
PRIMARY
EDUCTOR
LI
63000
NITROGEN SOURCE
ESTIMATE
BLANKET GAS
WASTE FACILITY
AB WP # # # # # # # # (# # # )
19/ 30-86-09 W4M
02-T6300
WW TRUCKOUT
TANK
[WATER]
EDUCTOR
LI
63100
TRUCK
TICKETS
NITROGEN
02-T6310
WW TRUCKOUT
TANK
[WATER]
WASTE WATER
TRUCK OUT
Inj ect ion Facil it y
(Pg 2 of 3)
REV.
2
45

Schematics Well Pads
INJECTION FACILITY
AB IF # # # # # # # # (506)
19/ 30-86-09 W4M
PRODUCTION BATTERY
AB BT # # # # # # # # (344)
19/ 30-86-09 W4M
LEGEND
STREAMS
TYPICAL WELL PAD AA
WATER
BITUMEN
STEAM
GAS
DILUENT
FE
00010
BLANKET/ BUBBLE GAS

FE
AA111
WELL TYPES
FE
AA121
AA01I
INJECTION WELL
STEAM
FE
AA211
FE
AA221
FE
AA321
HP STEAM
FE
AA411
FE
AA421
FE
AA521
AA02P
PRODUCTION WELL
EMULSION
PUMP JACK (ELECTRIC)
METER TYPES
VORTEX METER
NNF
FE
XXXXX
ULTRASONIC METER
AA-T3010
POP TANK
TEST
SEPARATOR
PRODUCED GAS
M MAGNETIC METER
AA-V3000
PETRINEX ACCOUNTING
METER
CORIOLIS METER
FE
XXXXX
EMULSION
V V-CONE METER
METER NOT REPORTING

TO PETRINEX
BUBBLE GAS
FE
30002
AA04I
INJECTION WELL
STEAM
FE
AA511
WATER SOURCE WELL

VENT
(ESTIMATE)
AA03P
PRODUCTION WELL
EMULSION
OIL WELL
TEST
BUBBLE GAS
AA03I
INJECTION WELL
STEAM
FROM CPF
AA01P
PRODUCTION WELL
EMULSION
FE
30006
GROUP
BUBBLE GAS
AA02I
INJECTION WELL
STEAM
FE
AA311
FROM CPF
BUBBLE GAS
AA04P
PRODUCTION WELL
EMULSION
TO CPF
SP
30002
TAGS
AE
30002
EQUIPMENT TAGS PRECEDED BY HAF-

INSTRUMENT TAGS PRECEDED BY HAF-AA- WHERE AA
IS THE WELL PAD IDENTIFIER (TYPICAL)
H20
BUBBLE GAS
AA05I
INJECTION WELL
STEAM
ABBREVIATIONS
AA05P
PRODUCTION WELL
EMULSION
AE ANALYZER
H20 WATER CUT
NC NORMALLY CLOSED
NO NORMALLY OPEN
SP SAMPLE POINT
2
1
0
REV.
RE-IFA
RE-IFA
IFA
DESCRIPTION
01/ 02/ 13
05/ 06/ 12
28/ 03/ 12
DATE
SW
SW
SW
BY
AOC WELL NAMES AND UNIQUE IDs

AA01I
105/04-31-086-09W4/0
AB01I
106/03-31-086-09W4/0
AC01I
103/16-30-086-09W4/0
AD01I
100/02-30-086-09W4/0
AE01I
116/03-31-086-09W4/0
AA02I
106/04-31-086-09W4/0
AB02I
107/03-31-086-09W4/0
AC02I
100/16-30-086-09W4/0
AD02I
108/02-31-086-09W4/0
AE02I
114/04-31-086-09W4/0
AA03I
107/04-31-086-09W4/0
AB03I
108/03-31-086-09W4/0
AC03I
102/16-30-086-09W4/0
AD03I
118/03-31-086-09W4/0
AE03I
113/04-31-086-09W4/0
AA04I
108/04-31-086-09W4/0
AB04I
103/02-31-086-09W4/0
AC04I
102/15-30-086-09W4/0
AD04I
117/03-31-086-09W4/0
AE04I
112/04-31-086-09W4/0
AA05I
103/03-31-086-09W4/0
AB05I
104/02-31-086-09W4/0
AC05I
100/15-30-086-09W4/0
AD05I
105/03-31-086-09W4/0
AE05I
104/04-31-086-09W4/0
AA01P
103/04-31-086-09W4/0
AB01P
109/03-31-086-09W4/0
AC01P
106/16-30-086-09W4/0
AD01P
102/02-31-086-09W4/0
AE01P
104/03-31-086-09W4/0
AA02P
109/04-31-086-09W4/0
AB02P
110/03-31-086-09W4/0
AC02P
105/16-30-086-09W4/0
AD02P
107/02-31-086-09W4/0
AE02P
117/04-31-086-09W4/0
AA03P
110/04-31-086-09W4/0
AB03P
111/03-31-086-09W4/0
AC03P
104/16-30-086-09W4/0
AD03P
115/03-31-086-09W4/0
AE03P
118/04-31-086-09W4/0
AA04P
111/04-31-086-09W4/0
AB04P
105/02-31-086-09W4/0
AC04P
104/15-30-086-09W4/0
AD04P
114/03-31-086-09W4/0
AE04P
116/04-31-086-09W4/0
AA05P
112/03-31-086-09W4/0
AB05P
106/02-31-086-09W4/0
AC05P
103/15-30-086-09W4/0
AD05P
113/03-31-086-09W4/0
AE05P
115/04-31-086-09W4/0
Wel l Pads
(Pg 3 of 3)
REV.
2
46

Methodology
Well Production and Injection Volumes
Each well pad has a dedicated test separator with liquid flow meter and water cut
analyzer to determine well bitumen and water production.
Wells will be individually put on test for one valid testing hour for every 20 hours of
operation. Valid well test criteria per approved MARP.
Well gas production prorated from Battery Level GOR using a proration factor of 1.
Battery Level GOR will be updated monthly.
Steam injection is metered at each individual wellhead. Primary and secondary steam
production metering available at the central steam plant.
Battery Sales Oil
Sales oil will be trucked from the Hangingstone Battery. Custody transfer metering will
be done at the receiving facility.
Measurement Technology
Well testing uses standard method of test separators with microwave water cut
analyzers. New technologies such as multiphase flow meters may be evaluated later.
47
Hangingstone Project Water Production,

Injection and Uses
Fresh Water Wells
Water Diversion Licence 00316166-00-00 received on March 8, 2013 for
479,975 m3 annually.
ESRD-licenced fresh water source wells:
Well ID
Location
Formation
TDS (mg/L)
Maximum Rate of
Diversion (m3/d)
WSW153308508W400
15-33-085-08-W4
Quaternary
286
3,000
WSW061208609W400
06-12-086-09-W4
Quaternary
303
3,000
WSW040808608W400
04-08-086-08-W4
Quaternary
287
3,000
Wells are less than 150 m in depth and not licenced with the AER. Well IDs
are AOC internal identifiers, not UWIs.
48
Hangingstone Project Water Production,

Injection and Uses
Water volumes
Fresh Source Water
Time Bitumen
(Years) (m3/cd)
1
2
3
4
5
6
7
8
9
10
11
1,369
1,908
1,908
1,908
1,908
1,908
1,908
1,908
1,868
1,348
0
Steam
(m3/cd)
Produced
Water
(m3/cd)
Returned to
Environment
(m3/cd)
Unrecoverable
Utility
(m3/cd)
Makeup
(m3/cd)
TOTAL
(m3/cd)
Disposal
(m3/cd)
PW
Recycle
4,790
6,677
6,677
6,677
6,677
6,677
6,677
6,677
6,539
4,716
0
3,718
6,024
6,231
6,231
6,231
6,231
6,231
6,231
6,102
4,400
0
100
100
100
100
100
100
100
100
100
100
0
60
60
60
60
60
60
60
60
60
60
0
1,155
778
575
575
575
575
575
575
557
406
0
1,315
938
735
735
735
735
735
735
717
566
0
83
125
129
129
129
129
129
129
120
90
0
98%
98%
98%
98%
98%
98%
98%
98%
98%
98%
0%
Values are annual averages; Makeup includes recoverable utility water.

Evaporator blowdown (Disposal) is not recycled.
Disposal water will be 90oC at atmospheric pressure, trucked out.
Split sump concentrating evaporator design minimizes disposal volumes.
Waste will be sent to approved off-site disposal facilities.
Due to access restrictions AOC is currently obtaining water under TDLs to address water requirements
for drilling and construction.
49
Hangingstone Project Sulphur Production

Sulphur production under one tonne/day, no recovery.
Sulphur balance (from SIR 2):
Produced Gas
0.077 t/cd S
0.082 t/sd S
Bitumen
107 t/cd S
114 t/sd S
Produced Gas
0.077 t/cd S
0.082 t/sd S
Diluent
RESERVOIR
BITUMEN TREATING
Produced Water
1.0 t/cd S
1.1 t/sd S
Sales Oil
Emissions
0.077 t/cd S
0.082 t/sd S
Produced Water
HP Steam
Natural Gas
0 t/cd S
0 t/sd S
1.1 t/cd S for Gas Condensate

1.2 t/sd S for Gas Condensate
108.1 t/cd S for Gas Condensate

115.2 t/sd S for Gas Condensate
1.0 t/cd S
1.1 t/sd S
0 t/cd S
0 t/sd S
Boiler Feed Water 0 t/cd S

0 t/sd S
STEAM GENERATION
WATER TREATING
Disposal Water
Non-Saline Water
0 t/cd S
0 t/sd S
Saline Water
1.0 t/cd S
1.1 t/sd S
0 t/cd S
0 t/sd S
50
Hangingstone Project - Timeline

March 31, 2011
Filed Application.
September 30, 2011
Project Update and SIR 1 submitted.
March 6, 2012
Project Update and SIR 2 submitted.
October 3, 2012
Order in Council 307/2012 and AER Commercial

Approval 11888.
October 5, 2012
MARP Approval (AER) 1949359.
October 29, 2012
EPEA Approval 289664-00-00.
November 6, 2012
Historical Resources Act Clearance 003119951.
February 7, 2013
D78 Pad Shift Approval (AER) 11888A.
March 20, 2013
Water Act Licence Approval 00316166-00-00.
April 29, 2013
D78 Pad Shift Approval (AESRD) 289664-00-00.
51
Hangingstone Project - Timeline

May 24, 2013
CPF Amendment Approval (AER) 11888B.
May 31, 2013
Groundwater Management Proposal Approval

289664-00-00.
June 7, 2013
D56 Fuel Gas Pipeline (AER) Licence 55219.
June 20, 2013
D56 CPF Amendment ( AER) Licence F45426.
July 11, 2013
Caribou Monitoring and Mitigation Plan Approved.
July 2, 2013
Substation Application submitted 1609725.
July 30, 2013
Water Act Amendment received 00316166-00-01.
September 9, 2013
D56 Pad AA (AER) Licence F46483.
September 12, 2013
CPF Amendment approved (AESRD)

289664-00-01.
September 20, 2013
D56 Residue Fuel Gas Pipeline (AER) Licence

55432.
52
Compliance
Hangingstone Project - Compliance

Zero non-compliance instances related to EPEA Approval 289664-00-01.
3 trespass incidents were self disclosed to the AESRD Forestry Officer.
1 AER High Risk non-compliance for the filing of Fuel Gas Pipeline (AER) Licence
55219 prior to signed PLAs being issued.
Corrective action was taken on December 14, 2012 by filing an amendment to
change the status to non-construct.
A new application was filed on May 27, 2013 with the signed PLAs.
1 AER reportable spill.
5.5 m3 water based polymer drilling mud released while drilling 109/04-31-08609 W4M on Pad AA.
In compliance with DFO guidelines and regulations.
AOC has not started reclamation for the approved footprint as it is currently under
construction.
54
54
Hangingstone Project - Regional Initiatives

AOC is a funding member of:
Wood Buffalo Environmental Association,
Oil Sands Developers Group,
Alberta Biodiversity Monitoring Institute, and
Joint Oil Sands Monitoring Program.
55
55
Future Plans
Hangingstone Project - Future Plans

AOC filed an application for the Hangingstone Expansion Project in May 2013.
The Expansion includes:
increase the bitumen recovery capacity from the existing approved 1,908 m3/d
(12,000 bpd) to 13,037 m3/d (82,000 bpd) to be developed in two phases:
HS2 will add an incremental 6,360 m3/d (40,000 bpd) and
HS3 will add an incremental 4,770 m3/d (30,000 bpd).
Extension of the production life from 10 to 40 years,
CPF expansion from 35 ha to 76 ha,
Field facilities and,
Offsite and utility services.
57
57
Corporate Office
2000, 250 6 Ave SW
Calgary, Alberta, T2P 3H7
Telephone: 403-237-8227
Fax: 403-264-4640
www.atha.com

Delineation History

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Delineation History

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Hangingstone Project Update for

AER October 2012 to September 2013

Hangingstone Project - Introduction

Hangingstone Project - Acquisition and

Hangingstone Regional Development Map

Lands outlined ( ) acquired and delineated

Lands outlined ( ) acquired in October 2010

Lands outlined ( ) acquired in October 2011

Asset Statistics & Development

117 MMbbl reserves; 912 MMbbl contingent

Project 1 - 12,000 bbl/d (approved & in construction)

(1) Contingent resource best estimate

Hangingstone Project - Background

Hangingstone Project Surface and Subsurface

Hangingstone Project Scheme Map

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface Data Overview

Hangingstone Project - Subsurface Data Overview

2011 Hangingstone River 3D

3D acquired in 2011 and 2012, merged in 2012.

Hangingstone Project - Stratigraphy and

Middle McMurray Target Reservoir

Hangingstone Project - Subsurface

Middle McMurray Deposits

Formed dominantly in a mixed tide and

Reservoir is composed of amalgamated

Channel Sand (CS)

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Basal Water Zone

Interbedded mud and

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Caprock Core 1AA\10-30-86-9W4\00

Caprock is defined as the unit between the top of

Hangingstone Project - Subsurface

Variance attribute time slices through

Seismic and image log analysis indicates

Hangingstone Project - Subsurface

Mini-Frac test performed February 2011 on

Mini-Frac test depths

Fracture Gradient Fracture Pressure Operating Pressure Safety Factor

Hangingstone Project - Subsurface

Tri-axial tests showed thermally induced

Caprock Core 1AA\10-30-86-9W4\00

11 tri-axial tests performed.

Tri-axial lab samples

Hangingstone Project - Subsurface

Well pairs are numbered 1 to 5 from left-to-right,

Hangingstone Project - Subsurface

Hangingstone Project - Subsurface

Producers will have downhole temperature

Producers will also have casing gas

Producer and Injector:

Hangingstone Project - Subsurface

15 observation (obs) wells in total.

Hangingstone Project - Subsurface

10 Vertical delineation well

Planned Producer Placement