LOWERST.LAWRENCE

Conven1onalHTDPlay

A.Aubiès-T.,PhD.,geo.&P.Laroche,ing.,geo.

APGQ-QOGA

OCTOBER31st2016

2001-2016

15YEARSOFACHIEVEMENT

www.squatex.com

Certain statements made herein may cons0tute forward-lookingstatements.ThesestatementsrelatetofutureeventsorfutureeconomicperformanceofRessources&EnergieSquatexinc(SQUATEX)involverisks,uncertain0esandotherknownandunknownfactorsthatmayappreciablyaffect their results, performance or achievements compared to whatexpressedorimpliedbythestatementsofSQUATEX.

Actualeventsorresultscoulddiffer.Consequently,thedecisiontoinvest

insecuri0esandSQUATEXshouldatno0mebebasedonsuchstatements.SQUATEXdisclaimsanyinten0onandassumenoobliga0ontoupdatesuchstatements.

2

FORWARDLOOKINGSTATEMENTS

SQUATEXEXPLORATIONLICENCES

656093Hectares(1621205Acres)

4

Collabora1onINRS/MITACS

SQUATEX:2001-2016SQUATEX:15YEARSOFACHIEVEMENT

Ø  Since 2010, SQUATEX, like somemajor oil and gascompanies such as Shell, Amoco, Total and ConocoPhillips,isusingslimholedrillingtechniques.

Ø  The same well informa0on and technical data aregatheredatcost far lowerthanbyusingaconven0onaloildrillingrig.

Ø  Ourresul0ngholescanbeeventuallycompletedandputintoproduc0on.

Ø  The small well pad design allows to greatly reduceambient noise, pollutants and the need of largequan1tyofwater.

OURDRILLINGTECHNIQUES:SLIMHOLEREDUCEDENVIRONNEMENTALIMPACTANDCOST

SIZE OF DRILLING PAD

1000M2

12000M2

Conven0onaloildrillingrig

Slimholeoilrig

Conven0onaldrillingrigSlimholeDRILLING COSTS

Squatex drilling ac0vi0es have a greatlyREDUCEDIMPACTontheenvironment.

COLLABORATIONWORKWITHINRSIN2015-2016

FACIESANALYSISOFTHESAYABECFORMATION

Detailedstra0graphywithintheSayabecForma0on

Variousporosi*esoccurringwithintheSayabecForma*on

FromS.Larmagnatetal.(2016)

Intrabioclas0cporosity

MatrixPorosity

Fracturesporosity

Intragrainporosity

PRELIMINARYRESULTSFROMTOMODENSITOMETRY

FromS.Larmagnatetal.(2016)

ANALOGUE:ALBION-SCIPIO(HTDTRENTONFM.)

HTDAlbion-Scipio(+250MMbblofoil-Michigan).Fractures and vugs showingeffec0ve porosity within theSayabecForma0on.

Albion-Scipio reservoir faciesshowing variable porosity at cmscale.Fine grain facies with matrixreplaced locally by micro-dolomiteintheSayabecForma0on.

FromS.Larmagnatetal.(2016)

1

4

43

3

2

2

1 Albion-Scipio Massé

Albion-Scipio Massé

COLLABORATIONSQUATEX/INRS-ÉTÉ:NEXTSTEP

FromS.Larmagnatetal.(2016)

MASSÉSTRUCTUREDISCOVERY

LOWERST.LAWRENCE:AREAOFINTEREST

TARGET:HYDROTHERMALDOLOMITE(HTD)

2005-SQX-01

2008-SQX-04MASSÉNo.1

Gaz+Pétrole

GAZ

INFERREDPOROSITYBYTHEAVOPROCESSINGOFSEISMICLINEMNR-2001-02

GAZ

1km

N SMASSÉNo.2

Gaz+Pétrole

GAZ

Pétrole Pétrole

Fm.St-Léonsup.(CAPROCK)

Fm.St-Léoninf.(SiltstoneCalcaireux)

Fm.Sayabec(Carbonates)

SQUATEXMASSÉNo.2:WELLLOGS

RHOB-NPHICROSSOVERAnindica0veofHYDROCARBONS

HighResis1vity

Rgas>Roil>Rwater

QUALITATIVEINTERPRETATIONOFLOGS

300m

Prospec1v

einterval(1000m+)

SPROULE2016REPORTEs0ma0on of a mean value of 53.6 BCF ofgas inplaceand52.2MMbblofoil inplaceover an interval of1060m (grosspay zone)withinameansurfaceof5.2km2.

FromSproule2016

SQUATEXMASSÉ:SPROULEEVALUATION

Equivalent

to10BCF(G

as)and10M

Mbbl(Oil)per

km2

overanaver

ageinterval

of1000minthi

ckness!!!

SQUATEXMASSÉ:SPROULEEVALUATION

SPROULE2016REPORTEs0ma0on of a mean value of 53.6 BCF ofgas inplaceand52.2MMbblofoil inplaceover an interval of1060m (grosspay zone)withinameansurfaceof5.2km2.

FromSproule2016

EXPLORATIONCONCEPTANDTARGETS

PLAYCONCEPT

PLAYCONCEPT

ThisplayisalsoobservedintheSt.LawrenceLowLandswithintheTrentonForma0on=Poten0alfor

CONVENTIONALPRODUCTION(nofractura0onjob)!!!

BHP-90-108

PLAYCONCEPT

ThisplayisalsoobservedintheSt.LawrenceLowLandswithintheTrentonForma0on=Poten0alfor

CONVENTIONALPRODUCTION(nofractura0onjob)!!!

PROSPECTIVEAREASANDFORTHCOMINGWORKS

SQUATEXLSL:CONVENTIONALHTDPLAY

THEFUTUREFORSQUATEXIS:

Ø Inves0gate theHydrothermal Dolomites extentover the LowerSt.Lawrence(onanareaof+/-300km2)

Ø Inves0gate theHydrothermal Dolomites extentover the LowerSt.Lawrence(onanareaof+/-300km2)

Ø Validate the hydrocarbon poten0al on a 1000m intervalcontainingnumerousporouslevelswhichcouldhold10BCFofgasand10MMbblofoilperkm2(Mean)

THEFUTUREFORSQUATEXIS:

ValidatethatQuebecholdsgoodCONVENTIONALHTDPLAYS

THEFUTUREFORSQUATEXIS:

Ø Inves0gate theHydrothermal Dolomites extentover the LowerSt.Lawrence(onanareaof+/-300km2)

Ø Validate the hydrocarbon poten0al on a 1000m intervalcontainingnumerousporouslevelswhichcouldhold10BCFofgasand10MMbblofoilperkm2(Mean)

www.squatex.com

MasséNo2Well(SQX)

Thanks:S.Larmagnat,M.Malo,J.Raymond,K.BédardP.Francus,L-F.Daigle&M.DesRoches

2001-201615YEARSOFACHIEVEMENT