CORPORATE UPDATE“Managing Volatility With Strength & Balance”

August 2018

Modern Elements of Value

2

Success in a Low Price Environment Modern

Environmental Leader ✓Clean, safe, low liability LMR of 15

Commodity & PlayDiversification ✓

Premium resource plays:Spirit River gas, Cardium oil

Significant Resource1✓

2P reserves = 222 mmboe2P BTNPV10 = ~$1.1 billion

Scalable, Focused Asset ✓

283,000 net acres,541 gross locations, ~100% WI 2

Top Tier F&D 3 ✓$0.50/mcfe Spirit River$7.67/boe Cardium

Low Operating Cost 4 ✓$3.60/boe corporate$0.31/mcfe Spirit River

Strong Balance Sheet ✓$98mm available capital 4,5

(ELOC + bank line)

Owned Infrastructure ✓125 mmcf/d processing capacity

Access to Market ✓Firm NGTL calibrated to production

1 12/31/17 McDaniel reserves report; Forecast pricing2 Effective WI for active development areas – actual avg. WI ~85%3 Half cycle economics – see pgs. 10 & 12; Cardium is midpoint4 Q1/18 financial results 5 Pro forma 05/18 increased debt line $120MM

Wapiti

Greater Kakwa

Pembina PeaceLiquids Pipeline

Market Pipelines(NGTL, Alliance)

Modern Pipelines

Jupiter

Cenovus

Tou

NuVista

Husky

7 Gen

WCP

Designed to Prosper in the ‘Modern’ Resource World

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Imported LNG

Unconventional Marcellus Shale

Unconventional Tight Gas

Unconventional Barnett Shale

Conventional Onshore

U.S. Average Domestic Natural Gas(2010)

Unconventional Coal Bed Methane

Conventional Associated

Modern Resources

Conventional Offshore

gCO2e/MJ

Natural Gas Production

Field Transport andProcessing

3

Environmental Advantage – Low Carbon Intensity

Modern Cardium

Low Emissions = Carbon SecuritySource: ARC Financial

Gas Plays Oil Plays

KgCO2e/barrel

Production and Upgrading

Oil and Product Transport andRefining

Norway Ekofysk

Kuwait Burgan

Texas Spraberry

California Midway Sunset

Venezuela Merey Blend

Iran Abuzar

0 100 200 300

All Electric

4

Environmental Leadership

Moving Toward Zero Methane Emissions

OLD – Methane Emitting Devices NEW – 100% Electric Drive

30 m3 methane emissions per day 0 m3 methane

emissions per day

Equal to taking 30 cars off the road 1

1 Per EPA guidelines

Modern Ultra-Low Emission Sites (“MULE”)

3,741 boe/d

8,776 boe/d

10,969 boe/d

16,810 boe/d

Q4/15 Q4/16 Q4/17 Q1/18

Oil & Liquids Natural Gas

Premium Resource Supports Significant Growth 5

Deep Basin Growth with Running Room

18 mmboe

69 mmboe

119 mmboe

222 mmboe

2014 2015 2016 2017

Oil & Liquids Natural Gas

24

217

26

324

Production Growth 541 Gross Undrilled Locations 1

Proved + Probable Reserves Growth 2

0 mmcf/d

50 mmcf/d

60 mmcf/d

125 mmcf/d

Q4/15 Q4/16 Q3/17 Q4/17

Gas Processing Capacity

Cardium –Drilled

Cardium –Undrilled

Spirit River –Drilled

Spirit River –Undrilled

1 Includes a mixture of 1.0, 1.5 and 2.0 mile lateral lengths2 McDaniel & Associates reserves as at year-end with forecast

pricing

2015 2016 2017 2018 Current

$8.3

$6.1 $6.0 $6.3

$5.0

Spirit River

~$15/boe

~$7.50/boe

~$5.70/boe

<$5/boe

2015 2016 2017 2018F

Low Cost Supplier Wins 6

Cost Structure to Thrive in All Environments

Decreasing Cash Costs – Leading Peers

Capital Efficiencies – Continuous Improvement

$2

0

$1

7

$1

5

$1

5

$1

5

$1

4

$1

4

$1

3

$1

2

$1

1

$1

0

$9

$8

$7

~$5

$5

Historical Modern Cash Costs (C$/boe) Peer Group 2019E Cash Costs (C$/boe) 1

$1

1

$1

0

$1

0

$9

$8

$7

$7

$7

$6

$6

$5

$5

$4

$4

$1

D&C Cost Improvements (C$mm) 2 Peer Group 2017 1-Yr 2P FD&A Costs (C$/boe) 1

1 Peers include AAV, ARX, BIR, BNP, BXE, CQE, CR, DEE, KEL, NVA, PEY, PMT, PONY, POU, SRX, TOU & VII and based on Peter’s & Co. estimates July 24, 2018; cash costs include opex, G&A & interest

2 Years represent winter drilling seasons (i.e. 2017 = Q4 2016-2017 Breakup); Cardium well costs exclude 1.5 mile wells; Spirit River wells includes 1.0 mile only; 2018 Spirit River based on 3 wells 2 of which had mechanical issues

20

16

$3.5

$2.7$2.4 $2.2

Cardium

20

15

20

17

Cardium Piloting & Development

7

Evolution of a Versatile Asset Base

Spirit River At Critical Mass – Cardium Ready to Accelerate

2013 2014 2015 2016 2017 2018 F

% o

f C

apit

al E

xpe

nd

itu

res

Resource Capture

Validation

Spirit River Infrastructure

Note: Spirit River represents Kakwa CGU, Cardiumrepresents Wapiti CGU

Spirit River

Cardium

Land / A&D

Spirit River Development

Spirit River Infrastructure

Operations and Production Summary

Actively Navigating Period of Volatile Gas Pricing 8

June Production: ~14,000 boe/d (21% Liquids)

Production Capability: ~19,000 boe/d (15% Liquids)

Current Activities: Drilling Cardium delineation well

Drilling two-well Spirit River Pad

• Production has been variable as Modern has shut in natural gas volumes in response to weak AECO prices caused by TCPL field work

• Wapiti plant maintenance has also limited production during June

• Accelerated Cardium program underway; comprised of both delineation and multi-well development locations

• Spirit River program underway with a liquids-rich, two-well pad

9

Red Rock Spirit River Update

Limited Gas Program for 2H ‘18; Drilling Locations with Resilient Economics

MRI 10” PipelineTo MRI Route Gas Plant

06-18 Pad:Spud early July ‘18

• 21 wells currently producing into MRI’s Route gas plant• Owned infrastructure (roads, pipe, water) keep DCTE costs down• Latest pad will be MRI’s longest laterals to date (up to 2.4km)

10

MRI Spirit River Performance – Red Rock Core

Repeatable – Predictable – Prolific

MRI Spirit River Type Well

1 Wells producing from Wilrich or Falher F horizons shown located in East Red Rock area2 Strip price as per Bloomberg3 Liquids ratio range 3 to 30 bbls/mmcf4 Well Costs based on two (2) well pad development - 1.5 Mile Lateral Length

01-11 Falher F Discovery Well

1.5 Mile Laterals

1.5 Mile Liquids Rich Spirit RiverJuly 1, 2018

Effective Date

Price Forecast June 27, 2018 Strip

Spirit River Economics Half Cycle

IP30 (Unrestricted) mcf/d 16,400

IP30 (Unrestricted) boe/d 2,750

Technical Type Curve Primary product 13.3 bcf

EUR (Economic) mboe 2,284

Liquids Ratio C5+ bbls/mmcf 12

Well Costs4 $MM (gross) 6.9

Opex $/Mcfe 0.33

NPV10% $MM (gross) 7.3

DPI 10% Discount Rate 1.1

Payout yrs 1.8

IRR % 52

IP6 boe/d 1,650

Capital Cost (IP6) $/boe/d 4,182

F&D $/boe 3.02

11

Wapiti Cardium Light Oil Development

Commanding Position in a Leading Light Oil Play

• >500 MMBbl Oil in Place (Net)

• Two tiers of locations; top tier has best-in-class Cardium EURs (up to 174 Mbbl oil)

• MRI wells IP301 rates up to ~350 bbls/d oil

• 3rd generation frac design resulting in stronger IPs

• Latest D&C < $2.2MM

• 2018 program development focussed, but includes delineation wells and frac pilot

Pool Limit

1 Calendar daily rate

13-15 Central Tank Treating Facility

12

Cardium Oil Delineation Program

Extensive Inventory of High Graded Locations1 Development costs assumes multi-well pads2 Strip Pricing per BloombergSource: geoScout and Modern data

1.0 Mile CardiumJuly 1, 2018

Effective Date

Price Forecast June 27, 2018 Strip

Type Well Tier 1 Tier 2

IP30 (Unrestricted) bbls/d 195 125

IP30 (Unrestricted) boe/d 312 279

Technical Type Curve Primary product 174 Mbbl 165 Mbbl

EUR (Economic) mboe 243 312

Liquids Ratio C2+ bbls/mmcf 79% liquids 70% liquids

Well Costs $MM (gross) 2.4

NPV10% $MM (gross) 2.9 2.6

DPI 10% Discount Rate 1.2 1.1

Payout yrs 0.9 1.1

IRR % 107 84

IP6 boe/d 229 250

Capital Cost (IP6) $/boe/d 10,590 9,685

F&D $/boe 9.97 7.78

Type Curves

Competitive Advantage - Owned Infrastructure

Strategic Control & Sustainable Top Decile Op Costs 13

• Owned & operated infrastructure - the backbone of Modern

• Route plant - 115 mmcf/d

• Lynx plant - 10 mmcf/d

• Extensive network of pipelines

• 13-15 central oil-treating facility - 3000bbl/d

• 3 water handling hubs

• 80,000 m3 fresh water storage

• 40,000 m3 produced water storage

• 100% recycling, no disposal required

• Diverse, secure water sources

• Low-cost advantage is structural

• No take-or-pays

• No material midstream fees1

• Low operating & capital costs

Copton Sales Line

Modern 10” Pipeline

Modern Route Gas Plant Lynx Gas Plant

11-25 Wapiti Compressor

Red Rock Water Hub

1 Midstream fees are paid occasionally prior to pipeline construction or in non-core areas

13-15 Central Tank Treating Facility

13-35 & 04-09 Batteries

Pembina PeaceLiquids Pipeline

Market Pipelines(NGTL, Alliance)

Active Hedging Program Mitigates Volatility 14

Risk Management

2018F Natural Gas Coverage 2018F Oil Coverage

Fixed Price

Swaps63%

AECO Basis Swaps

5%

Floating Gas32%

Fixed Price

Swaps56%

Floating Oil44%

• 63% of 2018F production hedged at $3.13/mcfe

• Growing Cardium oil production reducing gas exposure

• ~10% of 2018F total revenue exposed to AECO pricing

1 Coverage levels are net of royalties.

Summary – Strength & Balance

Designed to Prosper in the ‘Modern’ Resource World 151 Q1/18 results; cash costs include op costs, G&A & interest expense2 Half cycle economics – see page 13; Spirit River shown as midpoint3 Pro Forma May 2018 Bank Line Expansion4 12/31/17 McDaniel’s reserve report; forecast pricing

• 285,000 net acres; 541 gross locations

• 125 mmcf/d processing capacityPlatform Established

• Spirit River at critical mass; Cardium accelerating

• Focus on drilling, completions and tie-in cost reductionShift in Capital Allocation

• Total corporate cash costs: $5.55/boe 1

• Corp. op costs: $3.60/boe (Spirit River $0.31/mcfe) 1

• F&D: $0.50/mcfe Spirit River, $10.28/boe Cardium 2Industry Leading Cost Structure

• Q1/18 production 16,800 boe/d (58% YoY growth)• 87% YoY 2P reserves growth to 222 mmboe

Material Growth

• $98mm liquidity (ELOC & $120mm bank line) 1,3

• Balance sheet strength guides capital expenditures Financial Strength

Set the Precedent 16

Questions?

Explorers and Producers Association of Canada

2017 Top Private Emerging ProducerNominated 2018 Top Junior Producer

2018 GPS Award for Environmental Excellence

Who is Modern?

Experienced & Invested Team 17

Board of Directors

Brian Boulanger – Chairman ARC Financial Corp.

John Dielwart ARC Financial Corp.

Hilary Foulkes Tudor, Pickering, Holt & Co.

Keith MacPhail Bonavista Energy Corporation

David Miller EnCap Investments L.P.

Mark Welsh, IV EnCap Investments L.P.

Management

Chris Slubicki, MBA, P. Eng.President, CEO & Director (OPTI, Scotia Waterous)

Jason Chadwick, B. Comm., PLMVP Land (Mancal, Rio Alto)

Francois Legault, P. Geol.VP Geosciences (Vermilion, Talisman)

Derek Mendham, CA, CFAChief Financial Officer (Ensign, Genuity Capital, RBC Capital Markets)

18

This presentation may contain "forward-looking statements" within the meaning of applicable securities legislation, including estimates of future production,cash flows and reserves, business plans for drilling and exploration, the estimated amounts and timing of capital expenditures, the assumptions upon whichestimates are based and related sensitivity analyses, and other expectations, beliefs, plans, objectives, assumptions or statements about future events orperformance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate","plans", "estimated" or "intends", or stating that certain actions, events or results “may", "could", "would", "might" or "will" be taken, occur or be achieved).In particular, this presentation contains forward-looking statements pertaining, to the following: estimates of infrastructure processing capacity, well costs,payout and IRR estimates. Statements relating to "reserves" are deemed to be forward looking statements, as they involve the implied assessment, basedon certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitablyproduced in the future. There are numerous uncertainties inherent in estimating crude oil and natural gas reserves and the future cash flow attributed tosuch reserves. The reserve and associated cash flows therefrom are based upon a number of variable factors and assumptions, such as historical productionfrom the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royaltyrates, the assumed effects of regulation by governmental agencies and future operating expenses, all of which may vary materially. Actual reserve valuesmay be greater than or less than the estimates provided herein. Unless otherwise noted, reserves referenced herein are given as at December 31, 2017.Also, estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates and future net revenuefor all properties due to the effect of aggregation. All forward-looking statements are based on Modern’s beliefs and assumptions based on informationavailable at the time the assumption was made. Modern believes that the expectations reflected in these forward-looking statements are reasonable but noassurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not beunduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could causeactual results or other expectations to differ materially from those anticipated, expressed or implied by such statements. Risk factors include: financial riskof marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations;pipeline restrictions; infrastructure construction schedule delays and cost overruns; blowouts; the risk of carrying out operations with minimalenvironmental impact; industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations andchanges in how they are interpreted and enforced; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding andproducing reserves at a reasonable cost; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands;competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and developmentprograms; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange andinterest rates; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policychanges; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates andincentive programs relating to the oil and gas industry. These risks and uncertainties could cause actual results or other expectations to differ materially fromthose anticipated, expressed or implied by such statements. The impact of any one risk, uncertainty or factor on a particular forward-looking statement isnot determinable with certainty as these are interdependent. Modern assumes no obligation to update forward-looking statements should circumstances ormanagement's estimates or opinions change. Certain information contained herein have been prepared by third-party sources. The information providedherein has not been independently audited or verified by the Company.

Disclaimer – Forward Looking Statements