Sayer Energy Advisors has been engaged by the Board of Directors of Direct Oil & Gas Inc. (“Direct” or the “Company”) to assist with a strategic alternatives process. The Company is open to reviewing all alternatives, which include, but are not limited to, a sale of some or all of the Company’s assets, a recapitalization of the Company, a sale of the Company for cash or a merger of the Company with another oil and natural gas entity.

• Direct is a highly focused company, holding high working interest assets in a concentrated area of the northern part of the Peace River Arch in Alberta. The Company’s major assets include operated properties in the following areas: Charlie (oil and natural gas), Cecil (primarily oil), Habay/Worsley (oil and natural gas), Hotchkiss/Lovet/Vista/Cranberry (natural gas), Notikewin (natural gas), Dixonville (natural gas), Chinchaga/Hamburg (natural gas) and Eureka (oil and natural gas) (the “Properties”).
• Recent production net to the Company has averaged approximately 941 boe/d (185 bbl/d of oil and natural gas liquids, 4.5 MMcf/d of natural gas), not including 318 Mcf/d of operated production that is currently temporarily shut-in due to ongoing equipment replacement. The Company operates most of its production, which is mainly long-life with low decline.
• Direct’s LLR as of January 5, 2019 was 1.80, with deemed assets of $31.0 million and deemed liabilities of $17.2 million. There are no immediate abandonment obligations associated with the Properties.

To book an appointment to visit the Data Room
or for more information please contact:

Ben Rye, Tom Pavic, Ryan Ferguson Young, Mark Zalucky,
Grazina Palmer or Alan Tambosso at 403.266.6133.