Advantage Oil & Gas : August Corporate Presentation

Strong Foundations and Financial Discipline in a Volatile Environment

Investor Presentation	TSX: AAV	August 2020

Advantage at a Glance

TSX 52-week trading range	$0.98 to $2.94
Shares Outstanding (basic)	188 million
Market Capitalization	$300 million
Enterprise Value	$550 million

2020 Guidance (1)
Capital - H1	$104 million
Capital - H2 (2)	$30 to $45 million
Total Production	43,500 to 46,500 boe/d
Liquids Production	4,200 to 4,700 bbls/d

Advantage holds 134,400 net acres (210 net sections) in the condensate/light oil-rich Montney Glacier/Pipestone fairway

6 Miles

Progress

Glacier

Valhalla

Pipestone/

Wembley

Advantage

Montney Assets

Notes:

(1) Forward-looking information. Refer to Advantage news release dated May 6, 2020 and Advisory for material assumptions and risk factors.2

(2) Excludes $100 million of proceeds received from disposition of 12.5% working interest in the Glacier Plant.

Top-Tier Resources and Cost Structure For A Strong Foundation

High Quality	Prolific Gas Foundation	Low-Cost Owned	Disciplined Financial
Light Oil	Infrastructure	Management
Deep inventory of high return	Foundation of free cash	Controlled, efficient, innovative	Self funded growth
resource	generation

2020 Strategy: Establish Liquids Platform, Reinforce Gas Foundations

Establish a strong liquids	Sustain and reinvest in highest	Complete key oil infrastructure	Target D/AFF ratio returning
platform	IRR projects	projects	to 2x

3

Divested of a 12.5% Interest in Glacier Plant for $100 Million

Rationale:

• Historic levels of adversity will generate historic opportunities
• Advantage is well situated to capitalize on strategic opportunities that meet our standards for quality and value
• Increased certainty around liquidity will allow Advantage to invest in existing high rate-of-return organic projects with commitment

Transaction Details:

• 50 mmcf/d volume commitment with a $0.66/mcf fee for 15 years
• Impact on adjusted funds flow expected to be $5 Million annually; low cost structure preserved

Low-Cost Owned	Disciplined Financial
Infrastructure	Management
Controlled, efficient, innovative	Self funded growth

$100 Million Fortifies Balance Sheet

Low cost structure, high	Target D/AFF ratio returning
working interest and control	to 2x
retained

4

Low Cost Structure Defines The Competitive Advantage

$40 $35 $30 $25 $20 $15 $10 $5

$-

											Clean
											Sustainable
		Finance & Other								Energy
									High
		G&A
		Royalties								Quality
									Liquids
		Transport
									Prolific
		Operating								Gas
											Foundation
											Low-cost
											Owned
											Infrastructure
											Resilient
											In All
											Cycles
											Disciplined
											Financial
A AAV AAV PF* C	D	H I		N O
				Management
Source:E Scotiabank,F G	April 3, 2020,J	2019KcashLcostsM		P Q R S T U	V	W X Y
$/boe
			* - Advantage Proforma represents the 2019 cash costs assuming the Glacier Gas Plant working interest disposition and volume commitment
			agreement closed and were effective January 1, 2019 (see press release April 13, 2020)			5

Shareholder-Focused Strategy for the New Energy Market

Clean

Focusing on Financial

Discipline While

Markets are Volatile

Continuously

Evolving,

Adapting and

Competing

Relentless

Focus on Asset

Quality and

Cost Structure

Deliver

Sustainable

Adjusted Funds

Flow Growth

Foundation of

Financial

Stability

In-Depth

Fundamentals

and Risk

Management

Tactical Elements

Sustainable

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

6

Canada - Leading Jurisdiction for Responsible Energy Investment

"A Proud Clean Energy Producer - The World Needs More of Our Energy"

Aggregate Independent ESG Scores

Sources: ESG Scores are aggregation of Yale Environmental Performance Index, Social Progress Imperative and World Bank Governance Index; reserves from BP Statistical Review of World Energy 2019 based on government and published data; Canada Action. *Iraq scores unavailable

Clean

Sustainable

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

7

Environmental Leadership and Sustainability

Advantage is an Environmental, Social and Governance (ESG) leader

• Natural gas is the best way to reduce global CO2 emissions by displacing coal
• Advantage emissions intensity is very low, in part due to carbon capture and storage at Glacier
• Created 650 full-time jobs/year over the last 5 years
• Contributed >$1 million to community programs/charities since inception
• See Sustainability Report onAAV website

	Glacier CO	Sequestration Project	Advantage Net Carbon Intensity(2)
	2
	(tonnes CO2e accredited)	(tonnes CO2e per BOE)
		113,835	0.0093
114,000 tonnes CO2e equates		90,367	0.0079
to approx. 25,000 vehicles (1)
57,410	56,999			0.0049	0.0045

2016

2017

2018

2019

2016

2017

2018

2019

Clean

Sustainable

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

(1)	Based on estimates per Environmental Protection Agency emissions per vehicle	8
(2)	Independent study prepared by Envirosoft Corp. effective Jan 1 2020; Scope 1 and 2 emissions, net of Glacier sequestration credits

Balanced Commodities Profile, Poised For Flexibility & Efficient Growth

6 miles

Progress

Glacier

Valhalla

Pipestone/

Wembley

State of the art emissions engineering

Liquids growth limited only by markets

Free cash redeployed to highest IRR projects

Two new oil batteries, existing gas plant

Balanced commodities, market exposure

Balance sheet drives pace of development

Clean

Sustainable

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

9

Advantage Montney - Multizone Oil, Liquids and Gas Throughout

Wembley

primary target

Valhalla liquids appraisal targets

Glacier liquids

zones

New oil pool discovery

Advantage Operated HZ

Offset Operator HZ

Clean

Sustainable

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

10

Development Update Post Light Oil Discovery at Progress

Clean

Sustainable

Kelt Oil Wells	Tourmaline Oil Wells
Up to 153,000 bbls CTD	Up to 152,000 bbls CTD

13-31 Montney (2017)

	8-17 New Drill -
	Q2 Tie-in
16-36 Montney	1-11 New Drill -
Q2 Tie-in
2019 Discovery

	2-34 Montney
	(2018)
Tie in to AAV	5-22 Montney
Glacier Plant
	(2018)

• 16-36:IP30 (restricted) 1,149 bbl/d (oil + NGL) + 6 mmcf/d gas @ 9,850 kPa
• Pipeline connected to Glacier plant; up to 2,000 bbl/d pipeline capacity
• 5,000 bbl/d battery postponed pending market recovery
• Production began February 2020 at restricted rates
• Progress competitive with Wembley/ Pipestone, and higher netbacks

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

11

Pipestone/Wembley/Valhalla Oil and Liquids Development

Clean

Sustainable

Recently completed D3 Well 30%

liquids (IP30)

Valhalla

New 5 well pad
7,117 boe/d
(22% liquids)(1)	Competitor well IP30
Confidential competitor well (~41%	1,422 boe/d
(67% liquids) (2)
oil, NGL not available)
Confidential competitor well (~44%
oil, NGL not available)	3 well pad tied in

Pipestone/Wembley

4 well pad tied in

• Wembley: predictable, top tier results across the fairway (150- 300 bbls/mmcf)
• Early results include restricted IP30 rates up to 737 bbls/d (oil + NGL)
• Advantage Wembley oil battery commissioning April 2020; will reduce capacity constraints
• Advantage Valhalla production continues to be restricted due to outperformance of wells

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

(1)	Aggregate initial production rate from 5 wells	.
(2)	Kelt Exploration public disclosure	12

Liquids-Rich Middle Montney at Glacier Stepping Up

Clean

Sustainable

Q1 2019 10 Well Middle Montney Pad - Average Final Rate 422 bbls/d per Well (73 bbls/mmcf)

Q4 2018 5 Well Middle Montney Pad - Average Final Rate 428 bbls/d per Well (85 bbls/mmcf)

Montney D4 (L2)

Montney D3 (L3)

Montney D2 (L4)

• Early development was in Upper and Lower Montney; ultra-low cost lean gas with resilient netbacks
• Recent focus on Middle Montney (25-80 bbls/mmcf)
• IP30 liquids rates up to 400 bbls/d
• IP30 gas rates up to 17 mmcf/d
• Six wells planned for Q3 2020 focusing on the leaner D1 interval, to maximize returns while liquid pricing remains low

Montney D1 Tier 1 Half-cycle Economics(1)

(April 22 Strip; 2021 avg AECO C$2.55/gJ & US$32.33/bbl WTI)

Type Well	Rate of Return	Payout
10.2 Bcf, 7.7 bbl/mmcf	118%	1.1 years

1. Management estimates. Rate of Return is assuming initial capital of $4.6 million per well DCE+T and 1.5% escalation

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

13

Strategic Infrastructure Control, Flexible Pipeline Access

Clean

		TCPL Groundbirch
		Lateral
BC	AB	Advantage Glacier
		Gas Plant
			AAV Progress Liquids Hub
			5,000 bbls/d on hold
			Keyera
		AAV Valhalla Liquids	Pipestone Plant
		Handling Hub
		2,000 bbls/d
		Tidewater Pipestone	AAV Wembley Liquids Hub
		5,000 bbls/d Q2-2020
		Plant
			6 miles

• 400 mmcf/d + 6,800 bbl/d capacity Glacier Plant; >120 mmcf/d surplus capacity available
• 45 mmcf/d + 2,000 bbl/d Valhalla hub
• 30 mmcf/d + 5,000 bbl/d Wembley hub
• 25 mmcf/d + 5,000 bbl/d Progress hub on hold

87.5% Owned Glacier Gas Plant

Sustainable

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

14

Natural Gas Transportation Portfolio

27 MMcf/d of TC Prairies Mainline to Nov 2032

27 MMcf/d of Great Lakes PL transport capacity Apr 2021 to Oct 2022

Up to 48 MMcf/d of Empress capacity net of downstream commitments - varying term durations

54 MMcf/d of AECO to Dawn LTFP Capacity to Oct 2027

Clean

Sustainable

Energy

High

Quality

Liquids

Prolific

Gas

Foundation

Low-cost

Owned

Infrastructure

Resilient

In All

Cycles

Disciplined

Financial

Management

15

Market Hedging Activities

							Clean
Physical Flows	Q1-20	Q2-20	Q3-20	Q4-20	2021	2022-2027	Sustainable
AECO	63%	49%	48%	35%	29%	20% - 65%	Energy
High
Empress	0%	0%	0%	7%	12%	15% - 25%
Quality
Emerson (TC Prairies Mainline)	0%	0%	0%	7%	3%	10% - 15%	Liquids
Dawn	21%	22%	23%	22%	30%	10% - 35%	Prolific
							Gas
U.S. Midwest	16%	29%	29%	29%	26%	0% - 15%
							Foundation

			Current Natural Gas Hedging			Low-cost
160				(MMcf/d)			80%
							Owned
140								70%	Infrastructure
120		$1.76	$1.76					60%
100				$2.72				50%	Resilient
80	$3.16				$2.72			40%	In All
				$2.24	$2.24		Cycles
				$2.33
60								30%
40	$2.26	$1.49	$1.49	$1.49	$2.61		$2.24	20%	Disciplined
$2.30	$2.30	$2.30	$2.64
20	$2.30		$2.40	10%	Financial
			$2.40	$2.40
					Management
-					$2.71	$2.71	$2.71	0%
	Q1-20Q2-20	Q3-20	Q4-20	Q1-21Q2-21	Q3-21	Q4-21
	Henry Hub	AECO	Dawn	Chicago	% of Production Hedged

16

Financial Discipline

Operationally Nimble

Returns Focus

APPENDIX

18

Area Overview - Deep Inventory of Gas, NGLs and Oil

Deep Liquids-Rich Inventory (1)(2)(3)

Booked Undeveloped

Unbooked

Upside

Progress
Glacier	TOTAL future
	location inventory
	~1,400 to 1,500	743
Valhalla
	89		301
Pipestone/	199
123	25
Wembley
	<25 bbls/mmcf	25-100 bbls/mmcf	>100 bbls/mmcf

Liquids-rich Middle Montney

• Total of ~210 net sections (134,400 net acres)
• Middle Montney is liquids-rich throughout (25 to 280 bbls/mmcf)
• Only 77 liquids-rich wells drilled to date - 5% of inventory
• 87.5% Ownership of Glacier Gas Plant
• • 400 mmcf/d raw gas capacity, 6,800 bbls/d liquids handling

1. Management Estimates. Refer to Advisory.

(2)	Based on Sproule December 31, 2019 Reserves Report.	19
(3)	C3+ shallow cut recoveries.

Advisory

Forward-Looking Information and Statements

The information in this presentation contains certain forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws relating to the Corporation's plans and other aspects of its anticipated future operations, management focus, strategies, financial, operating and production results and business opportunities. These statements relate to future events or our future intentions or performance. All statements other than statements of historical fact may be forward-looking statements. The statements have been prepared by management to provide an outlook of the Corporation's activities and results and may not be appropriate for other purposes. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "guidance", "demonstrate",

"expect", "may", "can", "will", "project", "predict", "potential", "target", "intend", "could", "might", "should", "believe", "would" and similar expressions and include statements relating to,

among other things, the Corporation's estimated net capital expenditures for 2020, including the expected allocation and timing of such expenditures and the anticipated effect of such expenditures on revenue; the anticipated effect of net capital expenditures on liquids production, including the estimated amount of such production; expected focus and results to be derived from the 2020 capital expenditures, including, but not limited to, increasing annual liquids production and the anticipated amount thereof, diversifying the Corporation's revenue sources and developing additional operational and infrastructure capability and how this will be achieved; expectations that the Glacier Gas Plant has capacity to accommodate future growth; the anticipated timing of wells being brought on production; anticipated timing of production from certain wells at Pipestone/Wembley; resource development potential of the Corporation's assets and the Corporation's future drilling inventory; the Corporation's plans to continue to be a low-cost supplier of natural gas, condensate and light oil and to grow adjusted funds flow per share, increase free cash generation and strengthen netback margins; and other matters. Advantage's actual decisions, activities, results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Advantage will derive from them.

With respect to the forward-looking statements contained in this presentation, Advantage has made a number of material assumptions regarding, but not limited to: its calculations of adjusted funds flow and expected accounting standards and treatments under International Financial Reporting Standards attributable to the divestment of a 12.5% interest in the Glacier Gas Plant; current and future commodity prices; the Corporation's current and future hedging program; future exchange rates; future production and composition including natural gas and liquids; royalty regimes and future royalty rates; future operating costs; future transportation costs and availability of product transportation capacity; future general and administrative costs; the estimated well costs including frac stages and lateral lengths per well; the number of new wells required to achieve the objectives of the 2020 calendar year; that the Corporation will be able to complete its infrastructure projects on a timely basis; timing and amount of net capital expenditures; and that the Corporation will have sufficient financial resources required to fund its capital and operating expenditures and requirements as needed.

20

Advisory

Management has included the summary of assumptions and risks related to forward-looking information in order to provide shareholders with a more complete perspective on Advantage's future operations and such information may not be appropriate for other purposes. Advantage's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Advantage will derive therefrom. Readers are cautioned that the foregoing lists of factors are not exhaustive. The Corporation and management believe that the statements have been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is highly subjective and subject to numerous risks including the risks discussed above, it should not be relied on as necessarily indicative of future results. These forward- looking statements are made as of the date of this presentation and Advantage disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Advantage's control, including, but not limited to: changes in general economic, market and business conditions; industry conditions; impact of significant declines in market prices for oil and natural gas; actions by governmental or regulatory authorities including increasing taxes and changes in investment or other regulations; changes in tax laws, royalty regimes and incentive programs relating to the oil and gas industry; the effect of acquisitions; Advantage's success at acquisition, exploitation and development of reserves; failure to achieve production targets on timelines anticipated or at all; unexpected drilling results; risk and assumptions used in estimating the 2020 calendar year financial and operating results, including commodity prices, timing of expenditures and the focus of such expenditures, change from current expectations; risk that the Corporation does not achieve the anticipated increases to production and revenues expected from the 2020 capital expenditures; changes in commodity prices, currency exchange rates, net capital expenditures, reserves or reserves estimates and debt service requirements; the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas properties, including hazards such as fire, explosion, blowouts, cratering, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; changes or fluctuations in production levels; individual well productivity; lack of available capacity on pipelines; delays in anticipated timing of drilling and completion of wells; delays in completion of infrastructure; lack of available capacity on pipelines; individual well productivity; competition from other producers; the lack of availability of qualified personnel or management; credit risk; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; our ability to comply with current and future environmental or other laws; stock market volatility and market valuations; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; ability to obtain required approvals of regulatory authorities; and ability to access sufficient capital from internal and external sources. Many of these risks and uncertainties and additional risk factors are described in the Corporation's Annual Information Form dated February 27, 2020 which is available at www.sedar.com and www.advantageog.com.

21

Advisory

Oil and Gas Information

Barrels of oil equivalent ("boe") and thousand cubic feet of natural gas equivalent ("mcfe") may be misleading, particularly if used in isolation. Boe and mcfe conversion ratios have been calculated using a conversion rate of six thousand cubic feet of natural gas equivalent to one barrel of oil. A boe and mcfe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

This presentation discloses drilling inventory in the Glacier, Valhalla, Progress and Pipestone/Wembley areas in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from Sproule Associates Limited reserves evaluation effective December 31, 2019 and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on our prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources. Of the 1,400 to 1,500 total drilling locations identified herein, 309 are proved locations, 38 are probable locations and 1,053 to 1,153 are unbooked locations. Unbooked locations have been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Corporation will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

References in this presentation to production test rates, initial production rates, IP30 rates, flow rates, yields and other short-term production rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Advantage. Advantage cautions that the test results should be considered to be preliminary.

Advantage has presented certain type curves and well economics for its Montney areas. The type curves presented are based on Advantage's historical production. Such type curves and well economics are useful in understanding management's assumptions of well performance in making investment decisions in relation to development drilling in the Montney area and for determining the success of the performance of development wells; however, such type curves and well economics are not necessarily determinative of the production rates and performance of existing and future wells and such type curves do not reflect the type curves used by our independent qualified reserves evaluator in estimating our reserves volumes. The type curves differ as a result of varying horizontal well length, stage count and stage spacing. The type curves represent the average type curves expected. In this presentation, estimated ultimate recovery represents the estimated ultimate recovery associated with the type curves presented; however, there is no certainty that Advantage will ultimately recover such volumes from the wells it drills.

22

Advisory

In presenting such type curves, inputs and economics information and in this presentation generally, Advantage has used a number of oil and gas metrics which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include DCE+T, "EUR", "NPV10", "payout", "rate of return" or "ROR", "half cycle ROR", and "operating netback". EUR represents the estimated ultimate recovery of resources associated with the type curves presented. NPV10 represents the anticipated net present value of the future net revenue discounted at a rate of 10% associated with the type curves presented. Payout means the anticipated years of production from a well required to fully pay for the DCE+T of such well. ROR means the rate of return of a well or the discount rate required to arrive at a NPV equal to zero. Half cycle ROR means the rate of return of a well or the discount rate required to arrive at a NPV equal to zero when taking into account "half cycle" costs, which include drilling, completion, equip and tie-in capital expenditures.

Production estimates contained herein are expressed as anticipated average production over the calendar year. In determining anticipated production for the year 2020 Advantage considered historical drilling, completion and production results for prior years and took into account the estimated impact on production of the Corporation's 2020 expected drilling and completion activities.

Non-GAAP Measures

The Corporation discloses several financial and performance measures that do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS" or "GAAP"). These financial and performance measures include "net capital expenditures", "adjusted funds flow", "adjusted funds flow per share", "net debt", and "net debt to adjusted funds flow". Such financial and performance measures should not be considered as alternatives to, or more meaningful than measures determined in accordance with GAAP including "net income", "comprehensive income", "cash provided by operating activities", or "cash used in investing activities". Management believes that these measures provide an indication of the results generated by the Corporation's principal business activities and provide useful supplemental information for analysis of the Corporation's operating performance and liquidity. Advantage's method of calculating these measures may differ from other companies, and accordingly, they may not be comparable to similar measures used by other companies. "Net capital expenditures" include total capital expenditures related to property, plant and equipment and exploration and evaluation assets incurred during the period. Management considers this measure reflective of actual capital activity for the period as it excludes changes in working capital related to other periods. The Corporation considers "adjusted funds flow" to be a useful measure of Advantage's ability to generate cash from the production of natural gas and liquids, which may be used to settle outstanding debt and obligations, and to support future capital expenditures plans. Changes in non-cash working capital are excluded from adjusted funds flow as they may vary significantly between periods and are not considered to be indicative of the Corporation's operating performance as they are a function of the timeliness of collecting receivables or paying payables. Expenditures on decommissioning liabilities are excluded from the calculation as the amount and timing of these expenditures are unrelated to current production, highly variable and discretionary. "Net debt" is the total of bank indebtedness and working capital deficit. "Net debt to adjusted funds flow" is a ratio calculated as net debt divided by adjusted funds flow for the previous four quarters. Net debt to adjusted funds flow is considered by management to be a useful measure as it is commonly used to evaluate the leverage of a company and the ability to settle outstanding debt and obligations with cash generated from operations. Refer to the Corporation's most recent Management's Discussion and Analysis, which is available at www.sedar.com and www.advantageog.com, for additional information about certain financial measures, including reconciliations to the nearest GAAP measures, as applicable.

23

Advisory

Abbreviations

The following abbreviations used in this presentation have the meanings set forth below.

bbl	barrel
bbl/d	barrel per day
bbls/d	barrels per day
bbls/mmcf	barrels per million cubic feet
boe	barrels of oil equivalent of natural gas, on the basis of one barrel of oil or natural gas liquids for six thousand cubic feet of natural gas
boe/d	barrels of oil equivalent per day
GJ	Gigajoule
mcf	thousand cubic feet
mcfe	thousand cubic feet equivalent on the basis of six thousand cubic feet of natural gas for one barrel of oil or natural gas liquids
mmcf/d	million cubic feet per day
mmcfe/d	million cubic feet equivalent per day
NGL	natural gas liquids
DCE+T	drill, complete, equip and tie-in
C3+	propane plus
C5+	pentanes plus

24

Advantage Contact Information

Investor Relations

1.866.393.0393

[e-mail]

www.advantageog.com

Listed on TSX: AAV

Advantage Oil & Gas Ltd.

Suite 2200, 440 - 2nd Avenue SW

Calgary, Alberta T2P 5E9

Main: 403.718.8000

Facsimile: 403.718.8332

Advantage Glacier Gas Plant

Andy Mah, P.Eng.	Director, Chief Executive Officer
Mike Belenkie, P.Eng.	President & Chief Operating Officer
Craig Blackwood, CPA, CA	Chief Financial Officer