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1 Entek Energy Limited ABN Entitlement Offer One (1)-for-Four (4) Non-renounceable Entitlement Offer of Entek Energy Limited ordinary shares Entitlement Offer closes at 5.00pm (Perth Time) on Wednesday, 8 June 2011 The Offer is fully underwritten by Euroz Securities Limited This is an important document which is accompanied by a personalised Entitlement and Acceptance Form and both should be read in their entirety. We recommend you consult your accountant, stockbroker or independent professional advisor if you are in any doubt as to whether to participate in the Entitlement Offer. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, OR TO US PERSONS This document is not for publication or distribution, directly or indirectly, in or into the United States of America (including its territories and possessions, any state of the US and the District of Columbia). This document is not an offer of securities for sale into the United States or to, or for the account or benefit of, US Persons. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, US Persons. No public offering of securities is being made in the United States.

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3 Important information ENTITLEMENT OFFER BOOKLET This Entitlement Offer Booklet is issued by Entek Energy Limited (ABN ) (Entek or the Company). This Entitlement Offer Booklet and the Entitlement and Acceptance Form are important documents and require your immediate attention. You should read these documents carefully and in their entirety before deciding whether or not to participate in the Entitlement Offer. In particular, you should consider the risk factors outlined in the Investor Presentation (included in this Entitlement Offer Booklet as Annexure II). The potential tax effects of the Entitlement Offer will vary between investors. All investors should satisfy themselves of any possible tax consequences by consulting their own professional tax adviser before deciding whether or not to participate in the Entitlement Offer. Neither this Entitlement Offer Booklet nor the Entitlement and Acceptance Form is a prospectus, disclosure document or product disclosure statement or other offering document under Australian law. Accordingly, these documents do not contain, or purport to contain, all of the information which a prospective investor may require in evaluating a possible investment in Entek. These documents do not and are not required to contain all of the information which would otherwise be required to be disclosed in a prospectus or product disclosure statement. They are not required to be, and will not be, lodged with ASIC. Prospective investors should conduct their own independent investigation and assessment of the Entitlement Offer and the information contained in, or referred to in, this Entitlement Offer Booklet. The information in this Entitlement Offer Booklet does not constitute financial product advice (nor investment, tax, accounting or legal advice) and has been prepared without taking account of any person's investment objectives, financial situation or particular needs. You should read the entire Entitlement Offer Booklet (including the presentation) and other materials sent to you in relation to the Entitlement Offer and any relevant materials lodged with the ASX and consider all of the risk factors that could affect the performance of Entek in light of your particular investment objectives, financial circumstances and investment needs (including financial and taxation issues) and seek professional advice from your accountant, financial adviser, stockbroker, lawyer or other professional adviser before deciding whether to invest in Entek. This Entitlement Offer Booklet should be read in conjunction with Entek s other periodic and continuous disclosure announcements to the ASX available at All dollar values are in Australian dollars ($A) and financial data is presented within the financial year end of 30 June unless otherwise stated. Entek does not give any undertaking or representation that information in this Entitlement Offer Booklet will be updated, except to the minimum extent required by law. Neither Entek nor any other person warrants or guarantees the future performance of Entek or any return on any investment made under this Entitlement Offer Booklet. Statements in this Entitlement Offer Booklet are made only as of the date of this Entitlement Offer Booklet unless otherwise stated and the information in this Entitlement Offer Booklet remains subject to change without notice. Entek is not responsible for updating this document. The historical information in this Entitlement Offer Booklet is, or is based upon information that has been released to the market. An investment in Entek is subject to investment risk including possible loss of income and principal invested. Please consider the risk factors outlined in Appendix B "Key Risks of the Investor Presentation (included in this Entitlement Offer Booklet as Annexure II). The pro forma historical financial information included in this Entitlement Offer Booklet does not purport to be in compliance with Article 11 of Regulation S-X of the rules and regulations of the US Securities and Exchange Commission. 1

4 This Entitlement Offer Booklet may contain certain forward-looking statements. The words anticipate, believe, expect, project, forecast, estimate, likely, intend, should, could, may, target, plan and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Any forecasts or other forward looking statements contained in this Entitlement Offer Booklet are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. While due care and attention have been used in the preparation of forecast information, such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Entek, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. You are cautioned not to place undue reliance on forward looking statements. Nothing in this Entitlement Offer Booklet should be considered as a solicitation, offer or invitation in any place where, or to any person to whom, it would not be lawful to make such an offer or invitation. No action has been taken to register the offer or otherwise permit a public offering of securities outside Australia and New Zealand. The distribution of this Entitlement Offer Booklet outside Australia and New Zealand may be restricted by law. Persons who come into possession of this Entitlement Offer Booklet who are not in Australia or New Zealand should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable security laws. The information contained in this Entitlement Offer Booklet is of a general nature and has been prepared by Entek in good faith and with due care but no representation or warranty, express or implied, is provided in relation to the accuracy or completeness of the information. No person is authorised to give any information or make any representation in connection with the Entitlement Offer which is not contained in this Entitlement Offer Booklet. Any information or representation not so contained may not be relied upon as being authorised by Entek or any person associated with it in connection with the Entitlement Offer. None of the parties referred to in the Corporate Directory of this Entitlement Offer Booklet (other than Entek) has made or authorised the making of any statement that is included in this Entitlement Offer Booklet or any statement on which a statement in this Entitlement Offer Booklet is based. To the maximum extent permitted by law, each of these parties expressly disclaims and takes no responsibility for any statements in or omissions from this Entitlement Offer Booklet other than references to its name or a statement or report included in this Entitlement Offer Booklet with the consent of that party as specified above. Please see the Investor Presentation (included in this Entitlement Offer Booklet as Annexure II) for other important notices, disclaimers and acknowledgements. Please see page 58 of this Entitlement Offer Booklet for important Eligible Shareholder declarations in relation to the Entitlement Offer. The New Shares have not been, and will not be, registered under the US Securities Act or the securities laws of any state or other jurisdiction of the United States. The New Shares to be issued under the Entitlement Offer may be offered and sold solely outside the United States to persons that are not US Persons and are not acting for the account or benefit of US Persons in offshore transactions in reliance on Regulation S under the US Securities Act. No party has offered or sold and no party will offer or sell, directly or indirectly, any New Shares in the United States or to, or for the account or benefit of, US Persons, except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws. 2

5 Contents Chairman s Letter 5 Equity Raising timetable 6 What should you do? 7 Section 1 Overview of the Equity Raising 8 Section 2 How to apply Eligible Shareholders 10 Section 3 Important information for Shareholders 14 Glossary 18 Annexure I ASX Equity Raising Announcement 20 Annexure II Investor Presentation 24 Eligible Shareholder declarations 58 Corporate Directory 59 3

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7 Chairman s Letter 13 May 2011 Dear Shareholder, On behalf of the Board of Entek Energy Limited I am pleased to invite you to participate in the Company s non-renounceable pro-rata Entitlement Offer of one (1) New Share for every four (4) Shares held and registered at 5.00pm Western Standard Time on 23 May 2011, at an issue price of 10.5 cents per share. This Entitlement Offer of million New Shares is fully underwritten and will raise approximately $10.7 million, and forms part of the capital raising announced by the Company to the ASX on 7 April 2011, comprising a two tranche placement and this Entitlement Offer. The first tranche of the placement was heavily oversubscribed, resulting in a number of leading Australian institutional investors joining the Company's share register, and raised approximately $5.2 million through the issue of 43.1 million New Shares at an issue price of 12 cents per share. Tranche 2 of the placement is subject to shareholder approval, to be sought at a general meeting of the Company on 18 May 2011, and if approved will raise approximately $9.3 million through the issue of 77.7 million New Shares. This Entitlement Offer issue price of 10.5 cents per share represents a discount of 12.5% to the issue price under both tranches of the placement (12 cents). The $25.5 million of capital to be raised hereunder will be applied to the evaluation and development of the Company s Niobrara oil resource play in the Green River Basin and appraisal of the Company s oil projects in the Gulf of Mexico with the balance available for new acreage opportunities and working capital. Successful completion of these funding initiatives will ensure the Company is well placed to achieve its strategic goals and deliver shareholder value. All directors of Entek intend to take up their full entitlements under this Offer and on behalf of the Board, I invite your full consideration of this investment opportunity. In that regard I encourage you to read this Entitlement Offer Booklet in full and seek any required independent professional financial advice with respect thereto as part of your decision making process. Yours sincerely Graham Riley Chairman Entek Energy Limited 5

8 Key Dates for the Entitlement Offer Announcement of the Entitlement Offer 7 April 2011 Record Date for the Entitlement Offer 5.00pm (Perth time), 23 May 2011 Entitlement Offer opens 25 May 2011 Entitlement Offer closes 5.00pm (Perth time), 8 June 2011 Shortfall notification date 10 June 2011 Allotment of New Shares under the Entitlement Offer 16 June 2011 Expected date for trading of New Shares allotted under the Entitlement Offer Confirmation of issue despatched in relation to the Entitlement Offer 17 June June 2011 This timetable is indicative only and subject to change without notice. All times are Perth times. Subject to the Listing Rules, Entek, in conjunction with the Underwriter, reserves the right to amend this timetable, at any time and without notice, including extending the Entitlement Offer, closing the Entitlement Offer early or accepting late Applications. Applicants are encouraged to submit their Entitlement and Acceptance Forms as soon as possible after the Entitlement Offer opens. No cooling-off rights apply to Applications submitted under the Entitlement Offer. The commencement of quotation of New Shares is subject to confirmation from ASX. 6

9 What should you do? 1. Read this Entitlement Offer Booklet and the Entitlement and Acceptance Form, and seek advice as appropriate This Entitlement Offer Booklet and the accompanying Entitlement and Acceptance Form contain important information about the Entitlement Offer and require your immediate attention. You should read them carefully and in their entirety before deciding whether or not to participate in the Entitlement Offer. If you are in doubt as to the course you should follow, you should consult your stockbroker, accountant, solicitor or other independent professional adviser before making your investment decision. 2. Decide what you want to do If you are an Eligible Shareholder (see definition in Section 2.1 below), you may subscribe for all, some or none of your Entitlement. See Section 2 for further details. Eligible Shareholders who do not participate in the Entitlement Offer will have their percentage holding in Entek reduced. If you participate in the Entitlement Offer in respect of some or all of your Entitlement, you will see your percentage shareholding in Entek reduce (as a result of the Tranche 1 Placement and the Tranche 2 Placement), but to a lesser extent. Shareholders who do not take up their Entitlement, whether in full or in part, will not receive any value in respect of those Entitlements they do not take up. The Entitlement Offer is non-renounceable, therefore Entitlements cannot be traded or transferred, whether on the ASX or privately. 3. Apply for New Shares To participate in the Entitlement Offer, your Application for New Shares must be received by the Registry before 5.00pm (Perth time) on Wednesday 8 June 2011, otherwise your rights under the Entitlement Offer will lapse. See Section 2 and the Entitlement and Acceptance Form for further details. 4. Questions If you: have questions in relation to the Existing Shares upon which your Entitlement has been calculated; have questions on how to complete the Entitlement and Acceptance Form or take up your Entitlement; or have lost your Entitlement and Acceptance Form and would like a replacement form, please call the Entek Entitlement Offer Information Line on (within Australia) or +61 (3) (from outside Australia) from 8.30am to 5.00pm (EST) Monday to Friday during the Entitlement Offer Period. 7

10 Section 1 Overview of the Equity Raising 1.1 Equity Raising On 7 April 2011, Entek made the ASX Announcement outlining the Company's intentions to raise approximately $25.5 million under the Equity Raising, which comprises the Tranche 1 Placement, the Tranche 2 Placement and the Entitlement Offer. Under the Tranche 1 Placement, Entek raised approximately $5.2 million through the issue of 43,153,830 New Shares at an issue price of $0.12 per New Share to predominantly institutional investors. The Tranche 2 Placement is conditional on Shareholder approval, which approval will be sought at a general meeting of the Company to be held on 18 May If approved by Shareholders, the Tranche 2 Placement will be offered to institutional investors and directors of the Company at an issue price of $0.12 per New Share to raise up to approximately $9.3 million through the issue of up to 77,679,504 New Shares. The Tranche 2 Placement is expected to settle on or around 19 May Under the Entitlement Offer, Entek is offering Eligible Shareholders the opportunity to subscribe for one New Share for every four Existing Shares held at 5:00pm (Perth time) on Monday, 23 May 2011 (Record Date), at the issue price of $0.105 per New Share. Where fractions arise in the calculation of an Entitlement, they have been rounded up to the next whole number of New Shares. The Entitlement Offer is non-renounceable, which means that the Entitlements are non-transferable and cannot be sold or traded. The Entitlement Offer is fully underwritten by the Underwriter. Please refer to the ASX Announcement and the Investor Presentation annexed to this Entitlement Offer Booklet for information on the purpose of the Equity Raising, the sources and use of the proceeds of the Equity Raising, and for information on Entek s business, performance and strategy. You should also consider other publicly available information about Entek available at and Tranche 1 Placement and Tranche 2 Placement On 15 April 2011, Entek announced the successful completion of the Tranche 1 Placement to raise approximately $5.2 million. The Tranche 2 Placement is conditional on Shareholder approval, which approval will be sought at a general meeting of the Company to be held on 18 May If approved by Shareholders, the Tranche 2 Placement will raise up to approximately $9.3 million through the issue of 77,679,504 New Shares at an issue price of $0.12 per New Share to institutional investors and directors of the Company. The Tranche 2 Placement is expected to settle on 19 May Both the New Shares issued under the Tranche 1 Placement and the Tranche 2 Placement will carry entitlements to participate in the Entitlement Offer. 1.3 Entitlement Offer Eligible Shareholders are invited to subscribe for all or part of their Entitlement and are being sent this Entitlement Offer Booklet with a personalised Entitlement and Acceptance Form. The Entitlement Offer constitutes an offer to Eligible Shareholders only. Eligible Shareholders are Shareholders on the Record Date who have a registered address in Australia or New Zealand and who are eligible under all applicable laws to receive an offer under the Entitlement Offer. The Entitlement Offer closes at 5:00pm (Perth time) on Wednesday 8 June 2011, with New Shares to be allotted on Thursday 16 June The Entitlement Offer is fully underwritten by the Underwriter, and will raise approximately $10.7 million. The Issue Price under the Entitlement Offer is $

11 Nominees The Entitlement Offer is being made to all Eligible Shareholders (as defined in Section 2.1). Entek is not required to determine whether or not any registered holder is acting as a nominee or the identity or residence of any beneficial owners of securities. Where any holder is acting as a nominee for a foreign person that holder, in dealing with its beneficiary, will need to assess whether indirect participation by the beneficiary in the Entitlement Offer is compatible with applicable foreign laws. Any person in the United States or any person that is, or is acting for the account or benefit of, a US Person with a holding through a nominee may not participate in the Entitlement Offer, and such a nominee must not take up any Entitlement or send any materials relating to the Equity Raising into the United States or to any person that is, or is acting for the account or benefit of, a US Person. 1.4 Ranking of New Shares New Shares will be issued on a fully paid basis and will rank equally with Existing Shares. 1.5 Quotation and trading Entek will apply to ASX for the official quotation of the New Shares in accordance with ASX Listing Rule requirements. Subject to approval being granted, it is expected that normal trading of New Shares allotted under the Entitlement Offer will commence on Friday 17 June Confirmation Statements Holding statements in respect of New Shares allotted under the Entitlement Offer are expected to be dispatched to Eligible Shareholders on 16 June It is the responsibility of each applicant to confirm their holding before trading in New Shares. Any applicant who sells New Shares before receiving written confirmation of their holding will do so at their own risk. Entek and the Underwriter disclaim all liability whether in negligence or otherwise (and to the maximum extent permitted by law) to persons who trade New Shares before receiving their confirmations, whether on the basis of confirmation of the allocation provided by Entek, the Registry or the Underwriter. 1.7 Withdrawal of the Entitlement Offer Entek reserves the right to withdraw the Entitlement Offer at any time before the issue of New Shares, in which case Entek will refund any Application Monies already received in accordance with the Corporations Act and will do so without interest. 1.8 Allocation policy All Eligible Shareholders will be allocated New Shares applied for up to their Entitlement. 9

12 Section 2 How to Apply Eligible Shareholders If you are an Eligible Shareholder you should read this Section in its entirety for instructions on the choices available to you. You should also refer to Section 1 of this Entitlement Offer Booklet for an overview of the Equity Raising. 2.1 Eligible Shareholder - Definition An Eligible Shareholder is a person who is registered as the holder of Existing Shares on the Record Date, and: whose registered address on the Entek register of members is in Australia or New Zealand; who is not in the United States and is neither a US Person nor acting for the account or benefit of a US Person; and who is eligible under all applicable securities laws to receive an offer under the Entitlement Offer. Eligible Shareholders will receive a personalised Entitlement and Acceptance Form setting out their Entitlement, which accompanies this Entitlement Offer Booklet. The Entitlement Offer is not being made in the United States or to, or for the account or benefit of, US Persons. Accordingly, Eligible Shareholders (including nominees) who hold Shares on behalf of persons in the US or that are US Persons cannot take up their Entitlements or subscribe for New Shares on behalf of such persons, and may not send to such persons this Entitlement Offer Booklet or any other documents relating to the Equity Raising. If you purchase New Shares under the Entitlement Offer, you will be deemed to have represented, warranted and agreed the matters set out in the Eligible Shareholder declarations set out at page Choices available to Eligible Shareholders If you are an Eligible Shareholder you may do any one of the following: 1. take up all or part of your Entitlement (refer to Section 2.3); or 2. do nothing (refer to Section 2.5). The Entitlement Offer is a pro-rata entitlement offer to Eligible Shareholders only. 2.3 If you wish to take up all of or part of your Entitlement If you wish to take up your Entitlement in full or in part, there are two different ways you can submit your Application and Application Monies Submit your completed Entitlement and Acceptance Form together with a cheque, bank draft or money order for all Application Monies To apply and pay by cheque, bank draft or money order, you should: read this Entitlement Offer Booklet and the Entitlement and Acceptance Form in their entirety and seek appropriate professional advice if necessary; complete the personalised Entitlement and Acceptance Form accompanying this Entitlement Offer Booklet in accordance with the instructions set out on that form, and indicate the number of New Shares you wish to subscribe for; and return the form to the Registry (address details below) together with a cheque, bank draft or money order which must be: o in respect of the full Application Monies (being the Issue Price of $0.105 per New Share multiplied by the number of New Shares you wish to subscribe for); 10

13 o o in Australian currency drawn on an Australian branch of a financial institution; and made payable to Entek Energy Limited Application Account and crossed Not Negotiable. Where fractions arise in the calculation of the full Application Monies, the full Application Monies should be rounded down to the nearest whole cent. You should ensure that sufficient funds are held in any relevant account(s) to cover the full Application Monies. Cash payments will not be accepted. Receipts for payment will not be issued. You need to ensure that your completed Entitlement and Acceptance Form and cheque, bank draft or money order in respect of the full Application Monies reaches the Registry at the following postal address: Entek Energy Limited C/- Computershare Investor Services Pty Limited Locked Bag 2508 Perth, Western Australia 6840 If your Entitlement and Acceptance Form and your Application Monies in cleared funds are received by the Closing Date, being 5:00pm (Perth time) on Wednesday 8 June 2011, New Shares will be allotted to you on Thursday 16 June Entitlement and Acceptance Forms (and payments for Application Monies) will not be accepted after the Closing Date and no New Shares will be issued to you in respect of that Application and your Application Monies submitted will be refunded as soon as practicable, without interest. Entitlement and Acceptance Forms (and payments for any Application Monies) will not be accepted at Entek s registered or corporate offices, or other offices of the Registry. For the convenience of Eligible Shareholders, an Australian reply paid envelope addressed to the Registry has been enclosed with this Entitlement Offer Booklet. Note that if you have more than one holding of Existing Shares, you will be sent more than one personalised Entitlement and Acceptance Form and you will have separate Entitlements for each separate holding. A separate Entitlement and Acceptance Form and payment of Application Monies must be completed for each separate Entitlement you hold Payment via BPAY 1 To apply and pay via BPAY, you should: read this Entitlement Offer Booklet and the Entitlement and Acceptance Form in their entirety and seek appropriate professional advice if necessary; and make your payment in respect of the full Application Monies via BPAY for the number of New Shares you wish to subscribe for (being the Issue Price of $0.105 per New Share multiplied by the number of New Shares you are applying for). You can only make a payment via BPAY if you are the holder of an account with an Australian financial institution. 1 registered to BPAY Pty Limited ABN

14 If you choose to pay via BPAY you are not required to submit the Entitlement and Acceptance Form but are taken to make the statements on that form and representations outlined below in Section 2.4 Implications of making an Application, including the Eligible Shareholder declarations set out at page 58. If your payment of the Application Monies is received by 4.00pm (Perth time) on the Closing Date, being 8 June 2011, New Shares will be allotted to you on 16 June Your payment of the Application Monies will not be accepted if it is received after the Closing Date and no New Shares will be issued to you in respect of that Application and your Application Monies submitted will be refunded as soon as practicable, without interest. You should be aware that your financial institution may implement earlier cut-off times with regards to electronic payment and you should therefore take this into consideration when making your payment. You may also have your own limit on the amount that can be paid via BPAY. It is your responsibility to check that the amount you wish to pay via BPAY does not exceed your limit. Note that if you have more than one holding of Existing Shares you will have multiple BPAY customer reference numbers. To ensure you successfully take up your Entitlement in respect of each holding, you must use the customer reference number shown on each personalised Entitlement and Acceptance Form when paying for any New Shares that you wish to apply for in respect of those holdings. If paying by BPAY the amount of your payment received in the account divided by the Issue Price will be deemed to be the total number of New Shares you are applying for. If the amount of Application Monies received is insufficient to pay in full for the number of New Shares you applied for, or is more than the number of New Shares you applied for, you will be taken to have applied for such whole number of New Shares which is covered in full by your Application Monies received, up to your Entitlement. Alternatively, Entek may in its discretion reject your Application, in which case any Application Monies will be refunded to you after the allotment date in accordance with the Corporations Act, without interest. 2.4 Implications of making an Application Returning a completed Entitlement and Acceptance Form or paying any Application Monies for New Shares via BPAY will be taken to constitute a representation by you that you: 1 have received a copy of this Entitlement Offer Booklet accompanying the Entitlement and Acceptance Form, and read them in their entirety; 2 make the Eligible Shareholder declarations set out at page 58; and 3 acknowledge that once the Entitlement and Acceptance Form is returned, or a BPAY payment instruction is given in relation to any Application Monies, the Application may not be varied or withdrawn except as required by law. 2.5 If you do nothing If you are an Eligible Shareholder and you do nothing, the Entitlement Offer will effectively lapse in respect of those Shares and those Shares will be dealt with in accordance with the Underwriting Agreement. You should also note that, if you do not take up any of your Entitlement, then your percentage shareholding in Entek will be diluted. 12

15 2.6 Enquiries This Entitlement Offer Booklet and the accompanying Entitlement and Acceptance Form are important and require your immediate attention. You should read them in their entirety. If you are in doubt as to the course you should follow you should consult your stockbroker, accountant, solicitor or other independent professional adviser. If you: have questions in relation to the Existing Shares upon which your Entitlement has been calculated; have questions on how to complete the Entitlement and Acceptance Form or take up your Entitlement; or have lost your Entitlement and Acceptance Form and would like a replacement form, please call the Entek Entitlement Offer Information Line on (within Australia) or on +61 (3) (from outside Australia) from 8.30am to 5.00pm (EST) Monday to Friday during the Entitlement Offer Period. 13

16 Section 3 Important Information for Shareholders 3.1 No prospectus The Entitlement Offer complies with the requirements of section 708AA of the Corporations Act as modified by ASIC Class Order 08/35. Accordingly, neither this Entitlement Offer Booklet nor the Entitlement and Acceptance Form are required to be lodged or registered with ASIC and no prospectus for the Entitlement Offer will be prepared. 3.2 Availability of Entitlement Offer Booklet Shareholders with registered addresses in Australia or New Zealand can obtain a copy of this Entitlement Offer Booklet during the Entitlement Offer Period on Entek s website at or by calling the Entek Entitlement Offer Information Line on (within Australia) or on +61 (3) (from outside Australia) from 8.30am to 5.00pm (EST) Monday to Friday during the Entitlement Offer Period. Eligible Shareholders with registered addresses in Australia or New Zealand will be sent a copy of this Entitlement Offer Booklet and their Entitlement and Acceptance Form. You should ensure that you read the Entitlement Offer Booklet and the Entitlement and Acceptance Form in their entirety, and if accessing them electronically that you download the Entitlement Offer Booklet in its entirety (including the annexures to this Entitlement Offer Booklet). The electronic version of this Entitlement Offer Booklet on Entek s website will not include a personalised Entitlement and Acceptance Form. You will only be entitled to accept the Entitlement Offer by completing your personalised Entitlement and Acceptance Form which accompanies this Entitlement Offer Booklet, or by making a payment of Application Monies via BPAY (refer to Section for further information). Please carefully read the instructions on the accompanying Entitlement and Acceptance Form. Shareholders in other jurisdictions are not entitled to access the electronic version of the Entitlement Offer Booklet on Entek s website. 3.3 Continuous disclosure Entek is a disclosing entity under the Corporations Act and is subject to regular reporting and disclosure obligations under the Corporations Act and the ASX Listing Rules, including the preparation of annual reports and half yearly reports. Entek is required to notify the ASX of information about specific events and matters as they arise for the purposes of the ASX making that information available to the stock markets conducted by the ASX. In particular, Entek has an obligation under the ASX Listing Rules (subject to certain exceptions) to notify the ASX immediately of any information of which it is or becomes aware which a reasonable person would expect to have a material effect on the price or value of Shares. That information is available to the public from the ASX and can be accessed at Some documents are required to be lodged with ASIC in relation to Entek. These documents may be obtained from an ASIC office. 3.4 Not investment advice The information provided in this Entitlement Offer Booklet and the accompanying Entitlement and Acceptance Form is not financial product advice and has been prepared without taking into account your investment objectives, financial circumstances or particular needs. The information contained in this Entitlement Offer Booklet and the accompanying Entitlement and Acceptance Form should not be considered to be comprehensive or to comprise all the information which a Shareholder may require in order to determine whether or not to subscribe for New Shares. If you have any questions you should consult your stockbroker, accountant, solicitor, or other independent professional adviser before making your investment decision. 14

17 3.5 Risks The Investor Presentation details important factors and risks that could affect the financial and operating performance of Entek. Please refer to the Investor Presentation for details. A copy of the Investor Presentation is contained in Annexure II. You should consider these risk factors carefully in light of your personal circumstances, including financial and taxation issues, before making an investment decision in connection with the Entitlement Offer. 3.6 No authorisation No person is authorised to give any information or make any representation in connection with the Entitlement Offer which is not contained in this Entitlement Offer Booklet. Any information or representation not contained in this Entitlement Offer Booklet may not be relied on as having been authorised by Entek in connection with the Entitlement Offer. 3.7 No cooling-off rights Cooling-off rights do not apply to a subscription for New Shares under the Entitlement Offer. This means that you cannot withdraw your Application once it has been submitted except as required by law. Once the New Shares are issued and quotation is granted by ASX you may sell your New Shares on market. 3.8 Foreign jurisdictions - restrictions and limitations This Entitlement Offer Booklet has been prepared to comply with the requirements of the securities laws of Australia and New Zealand. The New Shares being offered under this Entitlement Offer Booklet are also being offered to Eligible Shareholders with registered addresses in New Zealand in reliance on the Securities Act (Overseas Companies) Exemption Notice 2002 (New Zealand). This Information is not an investment statement or prospectus under the New Zealand law, and may not contain all the information that an investment statement or prospectus under New Zealand law is required to contain. This Entitlement Offer Booklet does not constitute an offer in any jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer. No action has been taken to register or qualify the Entitlement Offer, the Entitlements or the New Shares, or otherwise permit the public offering of the New Shares, in any jurisdiction other than Australia and New Zealand. The distribution of this Entitlement Offer Booklet and/or the Entitlement and Acceptance Form outside Australia and New Zealand may be restricted by law. If you come into possession of this Entitlement Offer Booklet and/or the Entitlement and Acceptance Form you should observe any such restrictions and should seek your own advice on those restrictions. Any failure to comply with such restrictions may contravene applicable securities laws. 3.9 Underwriting arrangements and fees The Entitlement Offer is fully underwritten by the Underwriter. Entek has entered into an underwriting agreement (Underwriting Agreement) with Euroz Securities Limited (Underwriter) who has agreed to fully underwrite the Entitlement Offer. Customary with these types of arrangements: (a) (b) Entek has (subject to certain limitations) agreed to indemnify the Underwriter and its related bodies corporate and affiliates and each of their respective officers, directors, employees, advisers, representatives and agents against losses in connection with the Entitlement Offer and the appointment of the Underwriter under the Underwriting Agreement; Entek and the Underwriter have given certain representations, warranties and undertakings in connection with (among other things) the conduct of the Equity Raising; 15

18 (c) the Underwriter may terminate the Underwriting Agreement and be released from its obligations on the happening of any of a range of events, including if: the ASX/S&P 200 Index falls to a level that is 10% or more below its level at market close on the business day immediately prior to the date of the Underwriting Agreement; or the price of West Texas Intermediate Spot Price oil as stated on Bloomberg page "CLA COMDTY" falls to a level that is 10.0% or more below the level at market close on the business day immediate prior to the date of the Underwriting Agreement; or there is a material adverse change in the financial position, earnings or performance of Entek or any group company of Entek (insofar as the position of the entity affects the overall position or prospects of the group); or there is a disruption in certain key global financial markets or hostilities commence in certain countries; or any of the documents in relation to the Entitlement Offer are misleading or deceptive in a material respect (including by omission); or ASIC takes action or commences an investigation in respect of the Entitlement Offer. The Underwriter will be remunerated by Entek for providing these services at market rates. If the Underwriting Agreement is terminated, the Entitlement Offer may not proceed in its entirety. The Underwriter reserves the right, at any time, to appoint sub-underwriters in respect of any part of the Entitlement Offer. The Underwriter is entitled to be paid fees and expenses under the Underwriting Agreement and receive certain indemnities. The Underwriter may appoint sub-underwriters, who may each be paid a fee determined by negotiation with the relevant sub-underwriter. Any sub-underwriter s fees in respect of the Entitlement Offer would be paid by the Underwriter out of the fees payable to the Underwriter Consents None of the parties referred to in the Directory of this Entitlement Offer Booklet (other than Entek), has made or authorised the making of any statement that is included in this Entitlement Offer Booklet or any statement on which a statement in this Entitlement Offer Booklet is based. To the maximum extent permitted by law each of these parties expressly disclaims and takes no responsibility for any statements in or omissions from this Entitlement Offer Booklet other than references to its name or a statement or report included in this Entitlement Offer Booklet with the consent of that party as specified above Privacy As a Shareholder, Entek and the Registry have already collected certain personal information from you. If you apply for New Shares, Entek and the Registry may update that personal information or collect additional personal information. Such information may be used to assess your acceptance of New Shares, service your needs as a Shareholder, provide facilities and services that you request and carry out appropriate administration. To do that, Entek and the Registry may disclose your personal information for purposes related to your shareholding to their agents, contractors or third party service providers to whom they outsource services, in order to assess your Application for New Shares, the Registry for ongoing administration of the register, printers and mailing houses for the purposes of preparation and distribution of Shareholder information and for handling of mail, or as otherwise authorised under the Privacy Act 1988 (Cth). 16

19 If you do not provide your personal information, the Company may not be able to process your Application. In most cases you can gain access to your personal information held by (or on behalf of) Entek or the Registry. The Company aims to ensure that the personal information retained about you is accurate, complete and up to date. To assist the Company with this, please contact us if any of the details you have provided change. If you have concerns about the completeness or accuracy of the information held about you, Entek or the Registry will take steps to correct it. You can request access to your personal information by telephoning or writing to Entek through the Registry as follows: Computershare Investor Services Pty Limited Level 2 45 St Georges Terrace Perth, Western Australia 6000 or by telephone: (within Australia) or : +61 (3) (outside Australia), or by Web.queries@computershare.com.au 3.12 Taxation The directors of the Company do not consider that it is appropriate to give Eligible Shareholders advice regarding the taxation consequences of applying for New Shares under this Entitlement Offer Booklet, as it is not possible to provide a comprehensive summary of the possible taxation consequences. The Company, its advisers and officers, do not accept any responsibility or liability for any taxation consequences to Eligible Shareholders. Eligible Shareholders should, therefore, consult their own professional tax adviser in connection with the taxation implications of the New Shares offered pursuant to this Entitlement Offer Booklet Governing law This Entitlement Offer Booklet, the Equity Raising and the contracts formed on acceptance of the Entitlement and Acceptance Forms are governed by the law applicable Western Australia, Australia. Each Shareholder who applies for New Shares submits to the non-exclusive jurisdiction of the courts of Western Australia, Australia. 17

20 Glossary Term Definition $ or A$ or dollars Australian dollars ABN Application Application Monies ASIC ASX ASX Announcement ASX Listing Rules Australian Business Number An application to subscribe for New Shares under the Entitlement Offer Monies received from applicants in respect of their Applications Australian Securities and Investments Commission ASX Limited (ABN ) or the financial products market operated by that entity known as the Australian Securities Exchange The announcement released to ASX on 7 April 2011 in connection with the Equity Raising and annexed to this Entitlement Offer Booklet as Annexure I The official listing rules of ASX, as amended or replaced from time to time Board Closing Date The board of directors of Entek The last date for Eligible Shareholders to lodge an Application, being 5:00pm (Perth time) on 8 June 2011 Company Entek Energy Limited (ABN ) Corporations Act Eligible Shareholder Entitlement Entitlement Acceptance Form Entitlement Offer and Entitlement Offer Period Equity Raising Corporations Act 2001 (Cth) A Shareholder on the Record Date who: has a registered address in Australia or New Zealand; is not in the United States and is not a US Person and is not acting for the account or benefit of a US Person; and is eligible under all applicable securities laws to receive an offer under the Entitlement Offer The entitlement to one New Share for every four Existing Shares held on the Record Date by Eligible Shareholders The Entitlement and Acceptance Form accompanying this Entitlement Offer Booklet upon which an Application can be made The offer of approximately 102,131,478 New Shares to Eligible Shareholders in the proportion of one New Share for every four Existing Shares held on the Record Date The period commencing on the opening date of the Entitlement Offer, as specified in the Equity Raising Timetable Section of this Entitlement Offer Booklet, and ending on the Closing Date The Tranche 1 Placement, the Tranche 2 Placement and the Entitlement Offer EST Existing Share Investor Presentation Issue Price New Shares Perth time Australian Eastern Standard Time A Share on issue on or before the Record Date The investor presentation in connection with the Equity Raising dated 7 April 2011 and annexed to this Entitlement Offer Booklet as Annexure II $0.105 per New Share The Shares offered under the Equity Raising West Australian Standard Time 18

21 Term Record Date Definition The time and date for determining which Shareholders are entitled to an Entitlement under the Entitlement Offer, being 5.00pm (Perth time) on 23 May 2011 Registry Computershare Investor Services Pty Limited (ABN ) Entitlement Booklet Share Offer This booklet dated 13 May 2011, including the Investor Presentation and the ASX Announcement One ordinary share in Entek Shareholder Tranche 1 Placement Tranche 2 Placement Underwriter Underwriting Agreement US or United States US Persons US Securities Act The registered holder of an Existing Share The placement of 43,153,830 New Shares at an issue price of $0.12 per Share to raise approximately $5.2 million which completed on 14 April 2011 The proposed placement, subject to Shareholder approval, of 77,679,504 New Shares at an issue price of $0.12 per Share to raise up to approximately $9.3 million which is expected to complete on 19 May 2011 Euroz Securities Limited The underwriting agreement dated 6 April 2011 between Entek and the Underwriter, as described in Section 3.9 United States of America, its territories and possessions, any state of the United States and the District of Columbia The meaning given in Rule 902(k) of Regulation S under the US Securities Act The US Securities Act of 1933, as amended 19

22 Annexure I ASX Equity Raising Announcement 20

23 ASX RELEASE 7 April 2011 A$25.2M CAPITAL RAISING TO ACCELERATE DEVELOPMENT OF ENTEK S NIOBRARA OIL SHALE PROJECT Entek Energy Limited (ASX: ETE) is pleased to announce the raising of A$25.2 million to be completed by way of a share placement and a fully underwritten non-renounceable entitlement issue. Use of Funds Proceeds from the raising will be used to: Evaluation/development of Entek s Niobrara oil shale project Pursue additional Niobrara acreage opportunities Gulf of Mexico appraisal/development work program Fund working capital and transaction costs. Offer Details The equity capital raising comprises: Two-tranche placement of million fully paid ordinary shares at A$0.12 to raise A$14.5 million (Placement); and Fully underwritten 1:4 non-renounceable pro-rata entitlement issue at A$0.105 to raise A$10.7 million (Entitlement Issue). The Placement to institutional and sophisticated clients of Euroz Securities Limited ( Euroz ) is made in two tranches: Tranche 1: comprising 43.2 million fully paid ordinary shares, being the number of ordinary shares the Company can issue without shareholder approval for the purposes of ASX Listing Rule 7.1 (under its available 15% capacity), for total proceeds of approximately A$5.2 million (Tranche 1 Placement Shares); and Tranche 2: comprising 77.6 million fully paid ordinary shares, being the balance of the ordinary shares to be offered under the Placement for total proceeds of approximately A$9.3 million (Tranche 2 Placement Shares). The issue of Tranche 2 Placement Shares is subject to shareholder approval at a general meeting of shareholders (General Meeting) expected to be held on the 18 th May Euroz has acted as the Lead Manager to the Placement and Underwriter of the Entitlement Issue.

24 Ordinary shares issued under the Placement will rank equally with Entek s existing ordinary shares. Settlement of the Tranche 1 Placement Shares is expected to occur on Thursday, 14 April Settlement of the Tranche 2 Placement Shares is expected to occur shortly after the General Meeting. Placement shares will be eligible to participate in the Entitlement Issue. Full details of the Entitlement Issue will be set out in an Entitlement Issue offer document which is expected to be dispatched to shareholders on or around Wednesday, 25 May Any eligible shareholder who wishes to acquire new shares under the Entitlement Issue will need to complete the personalised entitlement and acceptance form that will accompany the Entitlement Issue offer document. Shareholders who have any queries about the Entitlement Issue should contact Computershare Investor Services on The Entitlement Issue is non-renounceable and rights will not be tradeable on ASX or otherwise transferrable. Shareholders who do not take up their Entitlements in full will not receive any value in respect of those Entitlements that they do not take up. Shareholders who are not eligible to receive Entitlements will not receive any value in respect of Entitlements they would have received had they been eligible. Attached is an Appendix 3B in relation to the Placement and Entitlement Offer. The Company advises this announcement will result in the lifting of the voluntary suspension of quotation of its securities. Indicative Timetable 1 Settlement of Tranche 1 Placement Shares Thursday, 14 April 2011 Tranche 1 Placement Shares commence trading on ASX Friday, 15 April 2011 Expected General Meeting to approve Tranche 2 Wednesday, 18 May 2011 Expected Settlement of Tranche 2 Placement Shares Thursday, 19 May 2011 Tranche 2 shares commence trading on ASX Friday, 20 May 2011 Record date to determine Entitlements Monday, 23 May 2011 Entitlement Offer Opens Wednesday, 25 May 2011 Entitlement Offer Closes Wednesday, 8 June 2011 Settlement of Entitlement Issue Thursday, 16 June 2011 Entitlement Issue shares commence trading on ASX Friday, 17 June 2011 Note 1: the timetable is indicative and subject to change. Entek s Managing Director, Trent Spry, said: Entek is now well funded to aggressively explore and develop the Niobrara oil shale project and our upcoming high impact drilling program in the Gulf of Mexico.

25 The Placement was heavily oversubscribed and resulted in a number of leading Australian institutional investors joining our register. We are delighted with the strong support for the capital raising and believe it is a strong endorsement of our growth strategy. I am also pleased to advise that Entek s recently appointed new Directors have committed to support this capital raising via the Tranche 2 share placement, subject to shareholder approval at next month s General Meeting. Further details will be provided in the Notice of Meeting to be despatched to shareholders shortly. For and on behalf of Entek Energy Limited TRENT B SPRY CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR ENQUIRIES: INFORMATION: INFO@ENTEKENERGY.COM.AU Competent Persons Statement: The information above is based on information compiled by Mr Trent Spry, who is Managing Director and Chief executive Officer of Entek. Mr Spry has over 20 years experience in geoscience in the petroleum industry, both in Australia and internationally. His qualifications are: University of South Australia, Bachelor of Science, Double Major Geology & Biochemistry, National Centre of Petroleum Geology & Geophysics (NCPGG), First Class Honours, Mr Spry has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Spry consents to the inclusion in this report of information compiled by him in the form and context in which it appears.

26 Annexure II Investor Presentation

27 ENTEK ENERGY LIMITED CAPITAL RAISING PRESENTATION April 2011 ACN

28 FORWARD LOOKING STATEMENTS / DISCLAIMER Slide Title This presentation has been prepared by the management of Entek Energy Limited ACN (the 'Company') for the benefit of potential investors and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where the Company expresses or implies an expectation or belief as to the economic viability of future projects, such expectation or belief is based on management s current predictions, assumptions and projections. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. For more detail of risks and other factors, refer to the Company's other Australian Securities Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast. This presentation may include certain "Forward-Looking Statements". All statements, other than statements of historical fact included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 2

29 Slide Title ENTEK ENERGY LIMITED (ASX Code: ETE) ONSHORE ASSETS UNCONVENTIONAL OFFSHORE ASSETS CONVENTIONAL STRATEGY NEW BOARD & MANAGEMENT CORPORATE OVERVIEW Entek Energy Limited ( Entek ) is an ASX listed, US focused, oil and gas company Existing production & cash flow from Gulf of Mexico ( GoM ), Niobrara & Qld With unconventional onshore and conventional offshore assets ~30,000 net acres (ETE 55%) highly prospective Niobrara Oil Shale acreage Growth expected from unconventional Niobrara Oil Shale appraisal 11 Blocks (ETE 5% - 100%) in GoM shallow waters significant portfolio of reserves GoM one of the most prolific hydrocarbon basins in the world Appraise and grow the operated Niobrara position Rationalise and focus GoM portfolio on high impact oil targets Increase reserves, production & cash flow both onshore and offshore Experienced Board and Management in US and Australia Graham Riley Non-Executive Chairman (appointed Feb 2011) Trent Spry Managing Director and Chief Executive Officer (appointed Oct 2010) Alex Forcke Non-Executive Director (appointed Feb 2011) Tim Hopkins Rockies Regional Manager, 30 years US Rockies experience (app. Jan 11) 3

30 Slide Title BOARD COMPOSITION Experienced Board & Management in US & Australia GRAHAM RILEY NON-EXECUTIVE CHAIRMAN (Appointed Feb 2011) Chairman of Buru Energy Limited, Gascoyne Rescources Limited, Giralia Resources N.L and a Non Executive Director of Target Energy Limited Previously a foundation Director of ARC Energy and a former Non-Executive Director of Adelphi Energy Limited Qualified legal practitioner, with a Bachelor of Laws and Bachelor of Jurisprudence degrees TRENT SPRY MANAGING DIRECTOR (Appointed Oct 2010) Over 20 years experience in geoscience in the petroleum industry ex BHP Petroleum and Woodside Energy Considerable advisory and management experience with ECL Australia/Asia and RPS Energy. Broad regional and global experience including the Gulf of Mexico Global onshore experience, including characterisation of super-charged petroleum systems such as the Niobrara Holds a Bachelor of Science (Double Major Geology & Biochemistry) and a National Centre of Petroleum Geology ANDREW PADMAN NON-EXECUTIVE DIRECTOR (Appointed Sep 2008) Over 32 years experience in the upstream petroleum E&P industry, new ventures, exploration and exploitation projects in S.E Asia / UK North Sea / Australia / New Zealand / Gulf Coast, USA Geophysical technical specialist with experience in exploration strategies, portfolio management and business development Ex Arc Energy ALEXANDER FORCKE NON-EXECUTIVE DIRECTOR (Appointed Feb 2011) Over 20 years in both the resources and investment banking industries Inaugural Executive Chairman of Adelphi Energy Limited, prior to its $75million takeover by AWE Limited in 2010 Executive Director - Commercial with ARC Energy from 1998 to 2004 Considerable experience in project finance and investment banking with Deutsche Bank,CIBC and AIDC 4

31 MARKET CAPITALISATION & RESERVES Slide Title CAPITALISATION SUMMARY PRE-RAISING Ordinary Shares 287,692,575 Niobrara Shale Unlisted Options avg. ~42 cents Market Cap 13.0 cents Cash (pre issue) ~$1.4M 1 Debt NIL Enterprise Value $36.0M $ Gulf of Mexico $0.20 $0.15 $0.10 $ NET RESERVES NIOBRARA OIL SHALE GULF OF MEXICO 1P Reserves 2.7 MMBOE 3.8 MMBOE 2P Reserves 7.5 MMBOE 6.9 MMBOE 3P Reserves 17.5 MMBOE 11.5 MMBOE C & P Resource MMBOE 19.7 MMBOE 5 Mar/10 Apr/10 May/10 Jun/10 Jul/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 A$ / Share Price Daily Volume (Millions) 1. Approximate cash balance as at 6 April, 2011

32 Slide Title INVESTMENT HIGHLIGHTS New Board and experienced management with successful track record Operations in proven hydrocarbon basins Large reserves & resources captured and growing Focused on Niobrara Oil Shale and High Impact GoM oil assets Quality large acreage position in emerging Niobrara Oil Shale ~30,000 net acres Work program designed to deliver significant value this year Undervalued compared to peers 6

33 GREEN RIVER BASIN (GRB) 7

34 Slide Title Green River Basin Vertical Un-stimulated Wells are capable of: Initial Prod n: ~500 bopd Cum. Prod n: ~1,300 kbbls Sierra Madre Field Operator: Anadarko Reservoir: Niobrara Well Name: SM Well Initial Prod n: 549 bopd Cum. Prod n: 355 kbbls Well Type: vertical, un-stimulated Buck Peak Field Operator: HRM Resources & Trend Reservoir: Niobrara Well Name: Nolan #1 Well Initial Prod n: 480 bopd Cum. Prod n: 1,300 kbbls Well Type: vertical, un-stimulated NIOBRARA OIL SHALE Cretaceous Interior Seaway Modified from Roberts and Kirschbaum1995 Green River Basin (Niobrara) DJ Basin (Niobrara) Eagle Ford Shale 8

35 COMPARISON OF OIL SHALE PAYS Slide Title Buck Peak Field Nolan #1 IP 480 BOPD Drilled with air completed open hole Recovered > 1.3 MMBO Slater Dome Field Green River Basin ENTEK GRB, LLC Robidoux 13-15T D J Basin, Blake #33-1 IP 47 BOPD Jake 2-01 offset well Niobrara top Oil Pay Zones Eagle Ford Shale B Zone D-J Basin of Pay EFS ~ of Pay Green River Basin Of Potential Pay 9

36 WHY THE NIOBRARA OIL SHALE IN THE GRB? Slide Title One of the most prolific Oil Shale Plays in the US Potentially better than Bakken and Eagle Ford in particular on a well NPV basis Vertical un-stimulated Wells produce > 1 MMBO with IPs of 500 BOPD Opportunity to increase reserves/production via the adoption of new technology Large long life reserves potential Significant presence of majors and increasing Increasing deal flow and pricing DATE RECENT NIOBRARA TRANSACTION METRICS (US$/Acre) Dec 2010 Sundance Energy farm out to Halliburton $2,500 Jan 2011 Samson Oil & Gas farm out to Halliburton $3,275 Feb 2011 CNOOC acquisition of Chesapeake Energy Interest for US$1.3B $4,800 + carry 10

37 NIOBRARA OIL SHALE PROJECT Slide Title Entek is Operator 30,000 net acres (55% of gross acres) Net 3P Reserves of 17.5 MMBOE + Resources of MMBOE Significant liquids potential (>80%) Potential for many hundreds of wells Nearby vertical un-stimulated wells have IP of up to 500 BOPD with Cum. Production > 1 MMBO Use of new technology (horizontal wells & stimulation) expected to improve flow rates and recoveries 11

38 Horizontal BOPD Niobrara section showing carbonate rich benches encased in oil prone black shale ~ 200 BOPD Horizontal Horizontal BOPD BOPD BOPD BOPD Vertical Thinly laminated carbonate bench (red) and naturally fractured carbonate bench (green). The key to flow is to penetrate the natural fractures. Fraccing and Horizontal completions can be used to connect zones of natural fracturing resulting in high flow rates and related higher EURs. < 50 BOPD Slide Title NIOBRARA OUTCROPS 12

39 VERTICAL WELL ECONOMICS Slide Title Based on flow test from Entek s Focus Ranch 12-1 Well 240 BOPD Depth TVD 7,500 8,000 Drill and Complete Cost $2,000,000 Infrastructure Cost $500,000 Initial Production (Based on 12-1 Tests) 200 BOPD 1,800 MCFPD Gross EUR 230 MBO 2.1 BCF Assumed Drainage 80 Acres IRR 153% NPV 55% WI $4,700,000 Completed Intervals 3 Upside Greater recovery similar to Buck Peak & Sierra Madre

40 HORIZONTAL WELL ECONOMICS Slide Title 1000 Forecast of Horizontal Well - Multi-Stage Frac Completion Focus Ranch Niobrara-Frontier Theoretical 3X Base Unstimulated 160-Ac Vertical Well (IP 200 BOPD, EUR 300 MBO, 2.85 BCF) Depth TVD/MD 7,500 8,000 /14,000 Drill and Complete Cost $5,500,000 Summary of Well Economics Well Cost: $5.5 MM USD Infrastructure: $0.5 MM USD ROR: 206% PV10: $16,193M 3X Forecast (IP 600 BOPD, EUR 900 MBO, 8.5 BCF) 100 BOPD Infrastructure Cost $1,000,000 Initial Production (Based on 12-1 Tests) 600 BOPD 5,400 MCFPD Gross EUR 900 MBO 8.5 BCF Assumed Drainage 640 Acres IRR 200% 10 $35, Months on Production Cumulative Cash Flow Position - Individual Wells Entek Focus Ranch Development NPV 55% WI $16,200,000 $30,000 $25, Ac Horizontal Well (IP=600 BOPD, EUR 900 MBO 8.5 BCF) $20,000 $15,000 $10,000 Cumulative Net Cash Flow Position, M$ Single Lateral Assumed above Upside(s) Stacked Laterals 320 Acre Drainage $5,000 $0 -$5, Months

41 NIOBRARA OIL SHALE SECTIONS Slide Title Sierra Madre Field Operator: Anadarko Reservoir: Niobrara Well Name: SM Well Initial Prod n: 549 bopd Cum. Prod n: 355 kbbls Well Type: vertical, un-stimulated Entek Acreage Entek s Focus Ranch 12-1 Well Prod Test: 240 bopd Well Type: vertical, un-stimulated 15

42 NIOBRARA WORK PROGRAM Slide Title Work program designed to deliver significant value from July this year DATE WORK DETAIL Q Directional Twin of the Robidoux 13-15T Well Q Directional Twin of the Battle Mountain 14-15A Q Sidetrack (Directional) of the Butter Lake Well Q Re-entry and testing of the Focus Ranch 3-1 Well Q Re-entry and testing of the Focus Ranch 12-1 Well Q Drilling of Additional Prospects (acceleration) Twin of existing oil discovery & flow of oil last year. New directional well designed to be fracced Twin of existing oil discovery & flow of oil last year. New directional well designed to be fracced Sidetrack designed to be completed across the Niobrara directional and potentially fracced Complete & test of existing well. Designed to be able to go horizontal Continue to test the well that has already tested 240 BOPD & 2.75 MMCFGD Additional permits submitted for accelerated program or

43 GULF OF MEXICO (GoM) 17

44 Slide Title Producing Gas Fields GoM PORTFOLIO New focus to high impact oil prospects Interests in 11 blocks Large reserves potential with attractive well economics High liquids content Acreage in shallow waters with good access to infrastructure Vermilion (VR 341) 50% Vermilion (VR 342) 50% Producing from High Island 24L, PN 975 & soon GA A133 Revenue ~$150k per month (post GA A133 hook up ~$400k) 3P Net Reserves of 11.5 MMBOE + Resources of 19.7 MMBOE 18

45 Slide Title VR 341 / 342 OIL PROJECT High impact oil project, defined by 3 existing wells Entek 50% working interest Independently certified Gross 3P reserves ~ 9.1 MMBOE Work program involves twining the existing wells targeting the 3P reserves Potential Initial Flow Rates BOPD from each well Net Well Cost $3.5M (drill & Suspend) Permits for drilling expected within 60 days 19

46 POISED FOR GROWTH 20

47 Slide Title GROWTH STRATEGY EMERGING OIL SHALE PLAY HIGH IMPACT OIL GoM RESERVES GROWTH PRODUCTION GROWTH Niobrara Oil Shale Play in the Green River Basin High Leverage to oil price New oil focus, high impact proven prospects High Leverage to oil price. Potential conversion of Net Resources to 1P & 2P in 2011 based on the planned drilling program. Production and cashflow to grow strongly through 2011 across all acreage based on the planned drilling program. ACREAGE GROWTH Acreage growth through targeted acquisitions & leasing ACREAGE VALUATION Industry drilling results this year expected to raise acreage value to > $2,500 / acre. TECHNOLOGY LEVERAGE STRATEGIC PARTNERSHIPS To date no new technology (horizontal wells or stimulation) have been used in the GRB. Vertical unstimulated wells have produced >500 BOPD & recovered > 1 MMBO. Stimulated verticals / directionals & horizontals planned this year. As acreage values increase and with resource/reserves growth a strategic partner will be sought to maximise the development of the play 21

48 EMERGING OIL SHALE PROVIDES POTENTIAL FOR RE-RATING Slide Title 2,000 1,600 1, SEA AUT SSN Early Appraisal stage Sundance (SEA.ASX) Aurora (AUT.ASX) Samson (SSN.ASX) Introduce experienced partner /operator re-rating as oil shale appraised and developed Jan/09 Apr/09 Jul/09 Oct/09 Jan/10 Apr/10 Jul/10 Oct/10 Jan/11 Mar/11 Share Price Performance 2,000 1,600 1, Phase 1 Phase 2 Phase 3 Introduce experienced partner/operator? Potential re-rating as oil shale appraised and developed Share PricePerformance Jan/09 Apr/09 Jul/09 Oct/09 Jan/10 Apr/10 Jul/10 Oct/10 Jan/11 Mar/11 22

49 Slide Title HOW ENTEK COMPARES EV/Acre of ASX Shale Peers $80,000 $70,000 $70,481 $60,000 $50,000 $49,604 $40,000 $30,000 $31,432 $20,000 $10,000 $0 $1,133 $1,754 $10,486 $16,032 ETE SGY SEA SSN TXN EKA AUT (30,000 acres) (16,000 acres) (22,000 acres) (15,200 acres) (4,500 acres) (1,469 acres) (15,600 acres) 23

50 CAPITAL RAISING 24

51 CAPITAL RAISING OVERVIEW Slide Title OFFER SIZE Total of A$25.2 Million 2 Tranche - ~A$14.5 Million s708 unconditional placement Underwritten 1 for 4 pro-rata entitlements issue - ~A$10.7 Million OFFER PRICE Fixed offer placement price of A$0.12 per share Circa 8% discount to Entek s closing price of $0.13 Circa 8% discount to Entek s 5 day VWAP of $0.131 Entitlements issue price of A$0.105 per share Discount to last of ~19% Discount to TERP of ~15% STRUCTURE Tranche 1 - ~$5.2 Million s708 unconditional placement - 15% of issued capital Tranche 2 - ~$9.3 Million s708 placement subject to shareholder approval 1 for 4 underwritten entitlements Issue $10.7 Million Evaluation/development of the Niobrara oil shale project ~$11 Million Pursue additional acreage opportunities within Niobrara formation ~$5 Million USE OF FUNDS Gulf of Mexico appraisal/development work program ~$6 Million Fund working capital and transaction costs ~$3 Million ~$25 Million 25

52 Slide Title CAPITAL STRUCTURE PRE CAPITAL RAISING POST CAPITAL RAISING Shares Options Shares Options 287,692,575 12,750,000 (Var dates/ex prices) 510,657,387 12,750,000 (Var dates/ex prices) 9,000,000 Directors 1 287,692,575 12,750,000 (Var dates/ex prices) 510,657,387 21,750,000 (Var dates/ex prices) 1. Subject to shareholder approval, options issued to Directors will expire 3 years from the date of award and will be awarded in 2 equal tranches. Tranche 1 has an exercise price no less than 150% of the 7 day VWAP prior to the date of options issue and Tranche 2 has an exercise price no less than 200% of the 7 day VWAP prior to the date of options issue. 50% of Tranche 1 and 2 shall be exercisable from the date of option issue. The remaining 50% of Tranche 1 and 2 shall be exercisable from 1 year after the date of option issue. No Debt, Market Capitalisation of ~$61 Million (at placement issue price) 26

53 Slide Title DATES EVENT INDICATIVE TIMETABLE Tuesday, 5 April 2011 Trading halt on ASX Commence marketing Australia Thursday, 7 April 2011 Announcement of equity raising and resumption of ASX trading Thursday, 14 April 2011 Settle Unconditional Placement (Tranche 1) Wednesday, 18 May 2011 General Meeting to approve Conditional Placement (Tranche 2) Thursday, 19 May 2011 Settle Conditional Placement (Tranche 2) (subject to shareholder approval) Monday, 23 May 2011 Record Date for Entitlement Issue Wednesday, 25 May 2011 Opening of Entitlement Offer Period Wednesday, 8 June 2011 Closing of Entitlement Offer Period Thursday, 16 June 2011 Settlement of Entitlement Offer Friday, 17 June 2011 Normal Trading 27

54 Slide Title KEY EVENT TIME LINE NIOBRARA Work Program & Capital Raise Announced Work Program Starts in Niobrara 13-15D Results 14-15D Results Results 12-1 & 3-1 Results New Contingent Resource, Reserves & Production Announced Q Q Q First Well Drilled in VR 342 (GoM) VR 342 (GoM) Results VR 342 Development Plan Announced New Contingent Resource, Reserves & Production Announced GoM 28

55 KEY RISKS 29

56 Slide Title KEY RISKS EQUITY MARKETS The price of shares quoted for trading by the ASX is impacted by various international and domestic factors. As the Company is listed on the ASX, its share price is subject to these numerous influences that may reflect both the trends in the share market and the share prices of individual companies. GOVERNMENT Government policies both in Australia and the US are subject to review and change from time to time. Such changes are likely to be beyond the control of the Company and may affect industry profitability. Changes in community attitudes on matters such as taxation and competition policy may bring about reviews and possible changes in government policies. Any such government action may also require increased capital or operating expenditure and could impact the Company s business. TAXATION The Company is subject to various forms of taxation, of which income tax and the goods and services tax are expected to have the most significant impact. There is an ongoing risk that changes to taxation legislation may adversely impact revenues or expenditures, and therefore the financial performance of the Company. FINANCING RISKS The development of the Company s business depends upon the Company s ability to obtain financing of its operations, through equity and debt capital markets, sale of assets or other means. There is no assurance that the Company will be successful in obtaining finance to satisfy its ongoing capital requirements or if such financing is available, it is on terms acceptable to the Company. Fluctuations in interest rates may have an impact on operating costs and share market prices. FOREIGN EXCHANGE RISK A large proportion of the Comapny s revenue may be derived from overseas markets and thus exposes potential income of the Company to the risk of fluctuations in foreign currency markets. A proportion of future sales will be denominated in United States dollars or other foreign currencies, whereas the income and expenditure of the Company are and will be taken into account in Australian currency, exposing the Company to the fluctuations and volatility of the rate of exchange between the United States dollar and the Australian dollar as determined in international markets. 30

57 Slide Title KEY RISKS ECONOMIC CONDITIONS AND PROJECT DELAYS Domestic and global economic conditions, particularly in relation to the oil and gas industry, may affect Company performance. Factors such as currency fluctuations, inflation, interest rates, supply and demand and industrial disruption may have an impact on operating costs, commodity prices and share market prices. The Company s future possible revenue and share price can be affected by these factors all of which are beyond the control of the Company and the Directors. In addition, the Company s ability to raise additional capital, should it be required, may be affected. RELIANCE ON KEY PERSONNEL AND HUMAN CAPITAL The Company is reliant upon a number of Directors and key employees. The loss of any of these personnel may have a materially adverse impact on the business and financial performance of the Company. The availability of skilled human capital is critical to ensure the Company is able to complete contracted works, any tightening of labour markets would result in an increase in the cost of Entek to recruit and retain skilled human capital. Industrial action undertaken by employees of Entek may adversely effect the Company s financial performance. CONTRACTUAL AND OTHER LEGAL RISKS All agreements entered into by the Company are subject to interpretation. There is no guarantee that the Company will be able to enforce all its rights under its agreements with third parties. The introduction of new legislation or amendments to existing legislation by governments, developments in existing common law, or the interpretation of the legal requirements in any of the legal jurisdictions which govern the Company s operations or contractual obligations, could impact adversely on the assets, operations and therefore on the financial performance and share price of the Company. LITIGATION RISK Litigation risks to Entek include, but are not limited to disputes, personal injury claims, employee claims, disputes with landlords & intellectual property disputes. Legal claims, if successful could adversely impact the profits or financial position of the Company. EXPLORATION SUCCESS Potential investors should understand that oil exploration and development are high-risk undertakings. Furthermore, the Company s future oil and gas production is highly dependent on replenishing proved reserves through successful exploration and development. There can be no assurance that exploration of the Company s permits will result in the discovery of an economic oil reserve. Even if an apparently viable reserve is identified, there is no guarantee that it can be economically exploited. The exploration costs of the Company are based on certain assumptions with respect to the method and timing of exploration. By their nature, these estimates and assumptions are subject to significant uncertainties and, accordingly, the actual costs may materially differ from these estimates and assumptions. Accordingly, no assurance can be given that the cost estimates and the underlying assumptions will be realised in practice, which may materially and adversely affect the Company s viability. 31