Advantage Oil & Gas Ltd
Millennium Tower,, Suite 300 440 2 Avenue S.W., Calgary, Alberta, Canada

Advantage Oil & Gas Ltd. is a growth-oriented corporation focused entirely on development of its significant position in the Montney natural gas and liquids resource play. The Corporation’s common shares trade on the Toronto and New York Stock Exchanges under the symbol AAV with its head office in Calgary, Alberta, Canada.

Advantage’s Montney resource play is located at Glacier, Alberta and has an estimated future drilling inventory of >1,000 horizontal well locations.  Total estimated capital expenditures over the life of the project could exceed $10 billion with significant reserves and production growth.  Production at Glacier has grown to 215 mmcfe/d (35,833 boe/d) with future growth targeted to achieve annual production of 235 mmcfe/d in 2017.

Advantage is well positioned with financial and operational flexibility, commodity price hedging and a highly experienced management team and staff to extract value from our Montney land base.

Health Safety & Environment

Advantage values the health of all our employees, contractors, and our neighbours in the communities where we live and work. Part of our commitment to the health of our staff is to ensure a safe, respectful and rewarding working environment.

Safety

…this is how we work…

Safety is a key part of everyone’s responsibility at Advantage and not just when it is convenient or deemed necessary. We have strong commitment and engagement from our Board of Directors, Senior Executives and all our staff including our field and contract workers. Advantage will provide the training and resources to create a safe working environment, because our goal is for everyone to return home safely at the end of every day and to extend that philosophy to their own personal activities.

Environment

…actively protecting the environment…

Advantage’s operations are located in northwest Alberta. We are aware of the impact our operations may have on all stakeholders including animal habitat, water sources, and air quality. We plan and operate in a manner that minimizes environmental impacts and meets or exceeds regulatory requirements. We are actively working with the Alberta Energy Regulator (AER) on developing industry best practices in the Montney to optimize resource recovery while balancing stakeholder interests.

Examples of what we are doing to minimize our impact on the environment:

• Pad drilling to reduce surface disturbance;
• Bi-fuel conversion to natural gas from diesel on drilling rigs and frac pumping equipment;
• Waste water re-used for operations (40% of completions water needs are sourced from recycled industry water)
• Reduced GHG emissions (CO2) and sulphur dioxide (SO2) are re-injected rather than flared to the atmosphere)
• Drilling fluid recovery process allows better clean-up of drill cuttings
• Top decile AER Licensee Liability Rating (LLR) of 23.10 demonstrates Advantage has one of the highest asset to liability coverage ratios in the industry for covering the costs of well and facility abandonment.
• 100% satisfactory inspection rating by the AER in 2016 demonstrates the adherence to high quality standards in all our field operations and pipelines
• 98% Audit score in the Alberta OH&S’s Certificate of Recognition program.