Connacher Reports Year-End 2017 Reserves

CALGARY, April 24, 2018

Proved producing reserves decreased by 1.4 million barrels (gross) to 13.3 million barrels (gross). The net present value of future net revenue before income taxes (discounted at ten per cent) ("10% PV") of the proved producing reserves decreased to $30 million from $57 million last year. Proved plus probable producing reserves are 20.3 million barrels (gross) compared to 21.3 million barrels (gross) in 2016. The 10% PV of the proved plus probable reserves decreased by $425 million to $1,081 million.

Estimated proved ("1P") bitumen reserves totaled approximately 243 million barrels (gross), an increase of 12% per cent over year-end 2016 volumes. The 10% PV of the 1P bitumen reserves decreased by $233 million to $668 million in 2017 due to a decrease in the long term GLJ price forecast and changes to carbon tax regulation.

Proved plus probable ("2P") reserve volumes were approximately 465 million barrels of bitumen, up 4 per cent from a year earlier. The 10% PV of these 2P bitumen reserves decreased by $425 million to approximately $1.1 billion due to a decrease in the long term GLJ price forecast and changes to carbon tax regulation.

Connacher's first SAGD project at Great Divide, Pod One, has been producing bitumen since late 2007, with commercial production commencing March 1, 2008. Algar commenced producing bitumen in August 2010 and commerciality was achieved October 1, 2010. Production from Great Divide since startup through December 31, 2017 has totaled approximately 39.5 million barrels of bitumen. Such amounts have been deducted from earlier estimates of proved reserves prior to the calculation of reserves as at December 31, 2017.

Unless otherwise stated, reserves refer to reserves of bitumen. Future net revenue is calculated after the deduction of forecast royalties, operating expenses, estimated future capital expenditures and well abandonment costs, but before corporate overhead or other indirect costs, including interest and income taxes, from forecast revenue. Certain amounts cited herein have been rounded for presentation purposes. The GLJ December 31, 2017 report ("Year-End 2017 Report") was prepared utilizing the GLJ January 1, 2018 price forecast, effective December 31, 2017. Readers are referred to the notes to the Summary Tables included in this press release for details regarding the price forecast used by GLJ. Earlier reports were prepared using the price forecasts then being applied by GLJ. Future net revenues disclosed herein do not represent fair market value. Also, estimations of reserves and future net revenue discussed in this press release constitute forward looking information. See "Forward Looking Information and Reserves Advisory" below.

The Year-End 2017 Report was prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Comparisons provided herein with respect to Connacher's bitumen reserves and for 10% PV for December 31, 2016 are to estimates contained in the report, prepared by GLJ, with an effective date of December 31, 2016 ("Year-End 2016 Report").