SURFACE CUT & CAP PROPOSAL

CUT & CAP ARC RESOURCES LTD. 100/10-28-063-05W6/02

Prepared for ARC Resources Ltd. A field-ready plan for one surface cut and cap using Innovative Well Abandonment's ultra-high-pressure cutting system.

Wellbore

Surface abandonment scope

Licence

Included in this program

Project Day

Including mob / demob

View Rate Schedule Contacts

Compliant

01 — Project Area

Single-Well Footprint

ARC Resources Ltd. well Licence: #0434110.

CUT & CAP

Below-Grade Wellhead

7GEN HZ KAKWA 10-28-63-5

The wellhead currently sits approximately 13 feet below the existing ground surface, as the lease has been built up over time.

02 — Rates

Equipment & Rate Schedule

Itemized project estimate showing the supplied units, quantities, rates and extended totals.

Primary Equipment

UHP CUTTING TRUCK & ALL CONSUMABLES

$3,000.00

$3,000.00 / Well × 1

Logistics & Mobilization

Cut Truck Crew & Travel
Hourly × 12 at $375.00
$4,500.00
16' Dump Trailer
Daily × 1 at $500.00
$500.00
Support Truck Mobilization/Demobilization
KM × 1,028 at $1.75
$1,799.00
Subsistence
Day × 3 at $275.00
$825.00

In efforts to keep travel costs down we strive to find other projects in the area.

Estimated Project Total

Based on the units and quantities listed above.

$13,707.50

03 — Assumptions

Assumptions & Conditions

The basis of estimate for this proposal, including access, schedule and operating conditions.

Rates & Surcharges

No fuel surcharge apply. Standard daylight operating hours apply. There will be no overtime.

Estimate Basis

The project estimate is based on the units, quantities and rates listed in the supplied schedule, including mobilization and demobilization. Anything outside of IWA's control will be billed at the standby rate listed in rate schedule.