SKYE ASSET RETIREMENT INC.

Farmers aren’t always thrilled when closure activities come to their land. It’s often met with frustration and genuine concern about what’s ahead. This fall, I drove a couple of hours out of my way to meet with a landowner. We sat at their kitchen table for hours, discussing upcoming work on their site. These conversations are rarely easy, and they don’t often lead to the outcomes you might hope for. Someone asked me recently, “Why do you go through the trouble?” My answer is simple: to build trust. I can’t control how someone reacts, but I can make the effort to listen. During that conversation, we moved from business to personal topics, eventually discovering a shared connection—an author we both happened to know personally. He didn’t have the author’s book, so I sent him a copy afterward. We didn’t walk away with a clear business solution, but we did walk away with mutual respect and a little more trust. Sometimes, that’s where progress begins.

“Focus on what makes your beer taste better”   Jeff Bezos famously quoted this, in a 2008 keynote at Y Combinator's Startup School. Bezos was referring to European breweries in the 20th century that became experts in electricity to use its benefits, but this didn't improve the taste of their beer. He argued that the lesson applies to businesses today, and that companies should focus on what differentiates them and not get distracted by other things.   Annual mandatory closure spends in the Western Canadian energy sector continue to increase, combined with stringent emissions monitoring and reduction targets. Companies continue to staff engineering and environmental teams to meet these regulatory and stakeholder demands around environmental mandates.    We’ve worked with dozens of these in-house teams that do an incredible job managing their company’s liability portfolios. Skye does not purport to be better than these teams. Producers will always need skilled technical professionals to tackle complex problems sites and emission reductions. However, we challenge the notion that energy companies also need to act as environmental companies. We’ve positioned Skye to act as a pressure release valve to offload large volumes of conventional liabilities. We are leaning into our strengths and building a private sector funded, hyper specialized closure entity. By removing liability distractions, producers and their teams can focus on their core purpose of supplying the world with energy. "Focus on what makes your beer taste better."

🔷 🔷 Did you know that in Saskatchewan a transfer to a “closure company” can count toward your annual liability reduction target?? 🔷 🔷 In 2021, as the Ministry of Energy and Resources revised its liability management legislation, we recognized a pivotal opportunity to leverage closure companies effectively. While the regulator sought public feedback on proposed updates to the Oil & Gas Conservation Act, Skye seized the moment to present a comprehensive policy framework. Our guide outlined key adjustments that would enable the ministry to integrate closure companies into its liability management strategy. We’re proud to share that many of our recommendations were adopted, establishing a new pathway for closure companies to assist producers in meeting their annual liability spending targets. If you have a quota, you can now fulfill it by transferring sites to Skye. We are currently seeking partners for a pilot program in Saskatchewan for the upcoming 2025 budget cycle. Interested in learning more? Let’s connect and explore how we can work together!

Skye is on site this month with our Prime Contractor 360 Engineering & Environmental. We start work on these sites as soon as they come into our portfolio. Some call it remediation...we call it "cleaning up the dirty dirt". #skyesthelimit

In 2019, Skye closed it's first deal. We are thrilled to report that all the sites associated with that project have achieved regulatory closure. The volume of sites was not large, but the impact was meaningful. We learn from each pilot and continue to progess the model of 'closure companies' within the energy industry. This project took place in Saskatchewan on both cultivated and native prairie land. Some highlights: -Abandonments came in on budget, even with the extra 8in of unforecasted snow we received the night after we plowed the already 12in of snow on site -Reclamation came in slighlty under budget -Some bulls wrestled against our tech fence during the veg monitoring stage, which was a treat to dissassemble -A badger threatened to fail our soils DSA -The big skies were always a treat! #skyesthelimit

Skye is excited to announce a new acquisition and looks forward to collaborating with industry partners to advance the closure company model! Please see the press release here for further details: https://lnkd.in/g-uPhDKp

Origin Story Part 2 – 2021-2024 As the 360 partnership team capitalized on the Site Rehabilitation federal funding program through its sister company 360 Engineering & Environmental Consulting, Skye continued to percolate in the background. It championed lobbying efforts and regulatory changes on behalf of closure companies, with particular success in Saskatchewan. It continued to engage with industry on challenges they were facing and all the ways in which they were tackling their liability portfolios. What emerged was a desire for some energy companies to find additional tools to meet increased stakeholder and regulatory spending pressure. As the federal funding program has now ended, Skye has come back into focus. Skye is a tool to help companies and stakeholders manage liability by unburdening them of the obligation. Transferring these obligations into Skye at a fixed fee allows our clients to focus on their core purpose. What was once a focus on just the transactional space has now become a broader resolve to transform how all stakeholders value and tackle their liability portfolios.

Origin Story Part 1: 2017-2020 Skye Asset Retirement was formed to support oil & gas companies in the transaction space. Historically, oil & gas acquisitions and divestures had minimal focus on future liabilities. In 2016 as energy company insolvencies increased, environmental liability came into focus for companies, regulators and stakeholders. Energy deals became stuck. Skye sought to offload liabilities from these transactions by taking over as licensee of inactive wells, pipelines and facilities. By removing the liability, the seller and purchaser could both move forward unburdened by that liability. Skye had momentum and closed an industry first closure transfer in November 2019. Well abandonment, decommissioning and site restoration began shortly after. By February 2020 oil prices plummeted, the global pandemic began and the federal government infused Western Canada with over $1B to spend on oil & gas site cleanup. Skye was less in focus but the idea continued to percolate.... ....Part 2 coming next week...

Skye Asset Retirement is pleased to announce Lindy Couillard as its new Managing Director. Lindy spent the last 6 years with the same partnership team growing 360 Engineering & Environmental in her role as Vice President, Corporate Services. She has transitioned full time to Skye, joining existing Directors Mark Ashton, Ryan Smith and Bryce Watson. Follow us to stayed tuned for more Skye updates coming this month!