Evaluation of the Petroleum and Natural Gas Reserves of Ithaca Energy Inc. As of December 31, 2017

Transcription

1 Ref.: March 26, 2018 Mr. John Horsburgh Ithaca Energy Inc. 8 Rubislaw Terrace Aberdeen, Scotland AB10 1XE Re: Evaluation of the Petroleum and Natural Gas Reserves of Ithaca Energy Inc. As of December 31, 2017 Dear Mr. Horsburgh: This letter report (the Report ) was prepared by Sproule International Limited ( Sproule ) at your request for Ithaca Energy Inc. Ithaca Energy Inc. is hereinafter referred to as "the Company". This letter report was prepared on March 26, 2018 and is effective as of December 31, It consists of an evaluation of the petroleum and natural gas reserves of the Company's interests located onshore and offshore United Kingdom. The UK Brent crude oil and IPE Britain NBP natural gas price forecasts used in this report were provided by the Company. The Report, has been prepared for the Company s use in filing with the Israel Securities Authority (ISA). In our opinion the assumptions, data, methods and procedures used in the preparation of the Report are appropriate for such a purpose. Report Contents For the purposes of summarizing the results, the Company s 16 fields have been divided into two groups; the Greater Stella Area (GSA) fields and the Non-GSA fields. 140 Fourth Avenue SW, Suite 900 Calgary, AB, Canada T2P 3N3 Sproule.com T F TF

2 Ithaca Energy Inc. 2 March 26, 2018 Sproule International Limited The following tables are included in this report: Table 1 - presents the grouping of the fields and ranking of the properties based on reserves within each field grouping, before income taxes, for the total proved plus probable reserves category, as of December 31, Table 2 - summarizes our evaluation, before and after income taxes, by group and by reserves category, of the petroleum and natural gas reserves of Ithaca Energy Inc., as of December 31, Table 3 - presents a summary of selected pricing, inflation and exchange rate assumptions. Table 4 - presents detailed forecasts of production and net revenue for the various reserves categories for the GSA and non-gsa fields. Table 5 presents a summary of the historical production, unit cost and revenue data, using data provided by the Company. The following Appendices were also included: Appendix A Abbreviations, Units and Conversion Factors Appendix B Petroleum Fiscal Terms Report Standards The Report was prepared by Sproule using current geological and engineering knowledge, techniques and computer software. It was prepared within the Code of Ethics of the Association of Professional Engineers and Geoscientists of Alberta ( APEGA ). This report adheres in all material aspects to the best practices recommended in the Canadian Oil and Gas Evaluation Handbook ( COGE Handbook ) which are in accordance with principles and definitions established by the Calgary Chapter of the Society of Petroleum Evaluation Engineers. The use of the Report, in part or in whole, outside the scope of which it has been prepared may not be appropriate. Sproule reserves the right to review all calculations made, referred to or included in this Report and to revise the estimates as a result of erroneous data supplied by the Company or information that exists but was not made available to us, which becomes known subsequent to the preparation of this Report. The reserve estimates and net present values prepared in this evaluation have also been reviewed in relation to the definitions and guidelines set forth in the 2007 Petroleum Resources Management System ( SPE-PRMS ), approved by the Society of Petroleum Engineers ( SPE ), the World Petroleum Council ( WPC ), the American Association of Petroleum Geologists ( AAPG ), and the Society of Petroleum Evaluation Engineers ( SPEE ), and in accordance with international recognized standards, as stipulated

3 Ithaca Energy Inc. 3 March 26, 2018 Sproule International Limited by the Israel Securities Authority (ISA). The reserves as presented herein were found to comply in all material respects with the definitions and guidelines set forth in the 2007 SPE-PRMS. The oil reserves are presented in thousands of barrels, at stock tank conditions measured at standard conditions of psi and 60 degrees Fahrenheit. The natural gas reserves are presented in millions of cubic feet, at base conditions of psia and 60 degrees Fahrenheit. The condensate and natural gas liquids reserves are presented in thousands of barrels, at base conditions of 60 degrees Fahrenheit and equilibrium pressure. For barrels of oil equivalent (BOE) a conversion ratio of 6 Mcf:1 bbl was assumed, based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additional units and conversion factors are included in Appendix B. The net present values of the reserves are presented in United States dollars and are based on annual projections of net revenue, which were discounted at various rates. These rates are 5, 10, 15 and 20 percent and undiscounted. For your reference the closing exchange rate on Friday December 29, 2017 was Israeli Shekels per United States Dollar, sourced from the historical exchange rate data from the Bank of Israel. All historical production, revenue and expense data, product prices received, property descriptions, details of interests held, well data and other data that were obtained from the Company were accepted as represented, without any further investigation by Sproule. No investigation was made into either the legal titles held or any operating agreements in place relating to the subject properties. The Company provided their estimated operating, capital and abandonment and reclamation cost estimates, as well as historical cost statements. Sproule checked these for reasonableness and made adjustments where considered appropriate. The Company s estimates were considered reasonable relative to other evaluations Sproule has conducted in the United Kingdom North Sea. In the preparation of this report, a field inspection of the properties was not performed. The relevant geoscience and engineering data were made available by the Company or obtained from public sources and the non-confidential files at Sproule. No material information regarding the reserves evaluation would have been obtained by an on-site visit. There was no investigation into environmental liability included in the scope of the report, and we are unaware of any environmental liabilities that would have a material effect on the reserves estimated in this report. No costs were included to account for any environmental liabilities.

4 Ithaca Energy Inc. 4 March 26, 2018 Sproule International Limited Technically Recoverable Volumes and Production Forecasts The technically recoverable oil and gas volumes were estimated using a combination of volumetrics, decline curve analysis, analogues, material balance and numerical simulation methods, depending on data available for each field and maturity of each field. In-place volumes were estimated using the net pay encountered at the wellbore and an assigned drainage area or, where sufficient well data was available, detailed geological models constructed using Schlumberger s Petrel software. Reservoir rock and fluid property data were obtained from available core analyses, well logs, PVT data, gas analyses, and published information, either from the pool in question or from a similar reservoir producing from the same zone. Recovery factors for technically recoverable oil volumes were selected from the results of detailed analytical reservoir analyses, the results of detailed numerical reservoir analyses, or by comparing the reservoir under study with similar reservoirs that have more firmly established recovery factors from extended production histories. The technically recoverable solution gas volumes were estimated based on historical and forecast producing gas-oil ratios and oil production or volumetric calculations. Similarly, the technically recoverable natural gas by-product volumes were based on historical and forecast recoveries and gas production. Annual technically recoverable oil and gas production was forecast considering historical production trends of the Company s producing wells, applicable regulatory conditions, existing or anticipated contract rates, and by comparison with other wells in the vicinity producing from similar reservoirs. Economic Input Parameters The economic parameters used in the Report were those obtained from the Company in field summary documents and those obtained during communications with Company personnel. The operating costs, which were applied at the field level, included annual fixed field costs, tariffs and processing costs, and allocated platform costs, where applicable. Capital costs were scheduled based on development plans supplied by the Company and included cost for drilling, completion and tie-in of wells, workover operations, pipeline construction, and facility installation/modification. Costs were converted to United States dollars using the exchange rate included in Table 3. The Company has an interest in the floating production unit, FPF-1, located at the Stella Field. The processing income from the facility, which forms a material portion of the economic calculations, was identified as Additional Taxable Revenue and Additional Non-taxable Revenue in Table 4. Further discussion of the processing income is provided in Appendix B.

5 Ithaca Energy Inc. 5 March 26, 2018 Sproule International Limited Abandonment and reclamation costs represent all costs associated with the process of restoring a company s properties, which have been disturbed by oil and gas activities, to a standard imposed by applicable government or regulatory authorities. Pursuant to guidance provided by regulatory agencies (such as the Alberta Securities Commission), the costs included in this report do not represent the total decommissioning liabilities of the Company but only those costs related to abandonment and reclamation of active wells and material dedicated facilities associated with the Company s active oil and gas activities in a property. Abandonment and reclamation costs for existing wells with economic developed reserves, and future economic proposed development have been included in this report as prepared by the Company. No allowances for salvage were incorporated into the abandonment and reclamation costs contained in this report. The price forecasts that formed the basis for the revenue projections in the evaluation were provided by the Company, with adjustments for quality estimated from historical revenue data. Table 3 presents a summary of selected forecasts. Royalties and Fiscal Regime The Stella and Harrier properties are subject to a third-party royalty for a portion of the revenue from the two fields. There are no other properties subject to royalties. Further discussion of the petroleum fiscal regime applicable to the Company is provided in Appendix B. Forward-Looking Statements For greater clarity, we point out that the Report may contain forward-looking statements including expectations of future production revenues and capital expenditures. Information concerning reserves may also be deemed to be forward-looking as estimates involve the implied assessment that the reserves described can be profitably produced in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e., corporate commitment, regulatory approval, operational risks in development, exploration and production); potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimations; the uncertainty of estimates and projections relating to production; costs and expenses; health, safety and environmental factors; commodity prices; and exchange rate fluctuation.

6 Ithaca Energy Inc. 6 March 26, 2018 Sproule International Limited Exclusivity We confirm that the Report has been prepared for the exclusive use of Ithaca Energy Inc. It may not be reproduced, distributed or made available to any other company or person, regulatory body, or organization without the knowledge and written consent of Sproule, and without the complete contents of the Report being made available to that party. Sproule Independence Sproule is one of the world s premier petroleum consulting and advisory firms, anchored by over 60 years of experience assisting companies with the evaluation of oil and gas reserves and resources, M&A related due diligence and reservoir studies. Sproule s integrated approach covers all subsurface disciplines coupled with a strong commercial understanding, which underpin our role as a trusted advisor to our clients. In any given year Sproule completes approximately 600 projects for over 300 clients worldwide. Our staff is experienced in providing consulting services to clients with operations or assets in any country of the world. Sproule offers a full range of consulting services to the oil and gas industry and to clients ranging from financial organizations to government agencies. The company is widely recognized for its expertise and independence in providing clients with reserve and resource assessments for conventional and/or unconventional oil and natural gas assets utilizing the guidance in NI , SEC, SPE-PRMS or other regulatory regimes. These assessments are often complemented by an economic evaluation of the future cash flows. Sproule has been engaged to perform year end reserves evaluations for the Company since 2006, most recently for December 31, Sproule has no relationship with the Company, the Company s senior management or Board of Directors or any of its subsidiaries that, to our knowledge, might be viewed as affecting our independence. Sproule has no interest, direct or indirect, nor do we expect to receive any interest, direct or indirect, in the properties described in this Report or in the securities of the Company. In our opinion, we had access to all information we felt was relevant to perform the December 31, 2017 evaluation. The Company provided full and timely data. To the best of our knowledge, no potentially negative data was withheld or misrepresented.

7 Ithaca Energy Inc. 7 March 26, 2018 Sproule International Limited Staff Qualifications Sproule International Limited is a member of the Association of Professional Engineers and Geoscientists of Alberta and our permit number is P The report entitled Evaluation of the Petroleum and Natural Gas Reserves of Ithaca Energy Inc. (As of December 31, 2017), was prepared by the following Sproule personnel: Individual Designation Sproule Position Years of Experience (Years at Sproule) Core Project Team Alec Kovaltchouk M.Sc., P.Geo. VP, Geoscience 34 (21) Alexey G. Romanov Ph.D., P.Geo. Senior Geoscientist 16 (9) Vladimir Torres Hernandez M.Sc., P.Geo. Senior Geoscientist 26 (12) Suryanarayana Karri P.Geoph. Petrophysical Specialist 34 (11) Vladimir Iglesias P.Eng. Manager, Latin America 21 (3) Miles Hughes P.Eng. Manager, Strategic Advisory 18 (4) Oluyemisi O. Jeje P.Eng. Senior Petroleum Engineer 17 (8) Michael Owens P.Tech.(Eng.), P.L.(Eng.) Senior Technologist 30 (10) Tamara Warren P.Eng. Petroleum Engineer 5 (4) Jeffrey McKeeman P.Eng. Petroleum Engineer 5 (5) Senior Advisory Scott W. Pennell P.Eng. Senior VP, Engineering and Director 24 (18) The above are all qualified reserves estimators, as defined in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the SPE. Seven of the above are also qualified reserves auditors, as defined in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the SPE.

8

9 Table 1 Summary of Remaining Reserves Total Proved Plus Probable Reserves Ranked by Reserves and Field by Group Before Income Tax (As of December 31, 2017) Field/Group Company Gross Reserves 1 Working Interest Oil Gas NGL and Cond. BOE % Mbbl MMcf Mbbl Mbbl GSA Fields Harrier ,358 52,660 1,896 14,030 Austen ,361 31,104 1,120 10,665 Stella ,424 34,326 1,236 9,381 Vorlich ,454 18, ,470 Hurricane ,073 9, ,005 Non-GSA Fields Cook ,879 13,950-11,204 Pierce ,167 14,500 1,775 6,358 Wytch Farm , ,193 Don Southwest , ,099 Don Northeast Ythan West Don Fionn Broom Conrie Wareham Total, All Fields 35, ,083 7,381 71,736 Values may not or be consistent from one presentation to the next due to rounding. 1. Company Gross means the Company's working interest share of the remaining reserves.

10 Table 2 Summary of the Evaluation of the Petroleum and Natural Gas Reserves by Group of Ithaca Energy Inc. Escalated Prices and Costs (As of December 31, 2017) Solution, Associated and Condensate and Natural Gas Oil Non-Associated Gas Liquids Total BOE Net Present Values (Mbbl) (MMcf) (Mbbl) (MBOE) Before and After Income Taxes (M$ US) Company Company Company Company At Various Discount Rates Gross Gross Gross Gross Gross Gross Gross Gross At 0% At 5% At 10% At 15% At 20% GSA Fields - Before Tax Total Proved 13,828 5, ,516 55,574 4,653 2,157 37,900 16, , , , , ,759 Total Probable 16,174 10, ,954 91,016 5,337 3,292 46,003 28, , , , , ,505 Total Proved + Probable 30,003 15, , ,590 9,989 5,449 83,904 45,551 1,385,392 1,097, , , ,265 Total Possible 18,409 11, , ,092 5,852 3,337 52,992 31,856 1,657, , , , ,599 Total Proved + Probable + Possible 48,412 26, , ,682 15,841 8, ,895 77,406 3,043,047 2,088,691 1,500,426 1,128, ,864 Non-GSA Fields Before Tax Total Proved 55,517 7,653 88,635 9,944 12, ,023 10,262 58,573 83,884 95, , ,202 Total Probable 55,247 11, ,481 18,549 13, ,777 15, , , , , ,844 Total Proved + Probable 110,764 19, ,116 28,493 25,849 1, ,799 26, , , , , ,046 Total Possible 62,151 11, ,761 15,119 11, ,343 14, , , , , ,145 Total Proved + Probable + Possible 172,915 30, ,878 43,612 37,081 2, ,142 40,602 1,510,867 1,111, , , ,191 Grand Total - Before Tax Total Proved 69,345 13, ,151 65,518 17,386 3, ,923 27, , , , , ,961 Total Probable 71,422 21, , ,565 18,452 4, ,779 44,521 1,632,000 1,233, , , ,349 Total Proved + Probable 140,767 35, , ,083 35,839 7, ,702 71,736 2,116,465 1,694,889 1,370,471 1,126, ,311 Total Possible 80,560 22, , ,211 17,084 4, ,334 46,273 2,437,450 1,505, , , ,744 Total Proved + Probable + Possible 221,326 57, , ,294 52,922 11, , ,008 4,553,915 3,200,226 2,355,913 1,813,824 1,450,055 Income Tax Total Proved Total Probable Total Proved + Probable Total Possible , , ,244 99,627 58,132 Total Proved + Probable + Possible , , ,244 99,627 58,132 Grand Total - After Tax Total Proved 69,345 13, ,151 65,518 17,386 3, ,923 27, , , , , ,961 Total Probable 71,421 21, , ,565 18,452 4, ,779 44,521 1,632,000 1,233, , , ,349 Total Proved + Probable 140,766 35, , ,083 35,839 7, ,702 71,736 2,116,465 1,694,889 1,370,471 1,126, ,311 Total Possible 80,560 22, , ,211 17,084 4, ,334 46,273 1,874,760 1,190, , , ,612 Total Proved + Probable + Possible 221,326 57, , ,294 52,922 11, , ,008 3,991,225 2,885,801 2,180,669 1,714,197 1,391,923 Values may not or be consistent from one presentation to the next due to rounding. Company Gross means the Company's working interest share of the remaining reserves, before deduction of royalties. Company Net volumes for oil, gas and condensate and natural gas liquids, which are not shown on this table, are equal to Company Gross volumes as there are no royalties to be applied to the volumes. Please refer to Appendix B for more detail. Income taxes are deducted from the Grand Total Before Tax values to arrive at the Grand Total After Tax values.

11 Table 3 Summary of Selected Pricing, Inflation and Exchange Rate Assumptions 1 (Effective December 31, 2017) Year Historical UK Brent 38 o API (2,4) ($US/bbl) IPE Britain NBP (3,4,5) ($/MMBtu) Operating Cost Inflation Rate (6) (%/Yr) Capital Cost Inflation Rate (6) (%/Yr) Exchange Rate (7) ($US/ UK) % 0.7% % -1.0% % -23.2% % -3.4% 1.29 Forecast % 0.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% 1.35 (1) UK Brent and IPE British NBP pricing forecasts above, were provided by the Company. The Company has advised that the price forecasts are based on the average of a number price forecasts obtained from independent third party sources. (2) 38 degrees API, 1.0 percent Sulphur. (3) International Petroleum Exchange British National Balancing Point. (4) Product sale prices will reflect these reference prices with further adjustments for quality and transportation to point of sale. (5) IPE British NBP pricing forecast provided to Assumed constant thereafter. (6) Inflation rates for forecasting costs. (7) Exchange rates applied to convert input data to output currency.

12 Year Table 3, continued Summary of Selected Pricing and Exchange Rate Assumptions 1 (Effective December 31, 2017) UK Brent 38 o API (2,4) ($US/bbl) IPE Britain NBP (3,4,5) ($/MMBtu) Operating Cost Inflation Rate (6) (%/Yr) Capital Cost Inflation Rate (6) (%/Yr) Exchange Rate (6) ($US/ UK) % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% % 2.0% 1.35 (1) UK Brent and IPE British NBP pricing forecasts above, were provided by the Company. The Company has advised that the price forecasts are based on the average of a number price forecasts obtained from independent third party sources. (2) 38 degrees API, 1.0 percent Sulphur. (3) International Petroleum Exchange British National Balancing Point. (4) Product sale prices will reflect these reference prices with further adjustments for quality and transportation to point of sale. (5) IPE British NBP pricing forecast provided to Assumed constant thereafter. (6) Inflation rates for forecasting costs. (7) Exchange rates applied to convert input data to output currency.

13 Table 4-Total Ithaca Energy Inc. As of December 31, 2017 Total Proved + Probable + Possible Total, All Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved + Prob. + Poss. Working United Kingdom 29.2 % SIL as of December 31, 2017 Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type <multiple> Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 404, , ,008 8, , , , ,367.2 Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 4,553,915 3,200,226 2,355,913 1,813,824 1,450,055 Tax Payable 562, , ,244 99,627 58,132 AT Cash Flow 3,991,225 2,885,801 2,180,669 1,714,197 1,391,923 Cash Flow (MM$US) Co. Share Revenue 8,298.1 Royalties (Stella, Harrier) 64.3 Operating Cost 3,252.7 Abandonment/Salvage Oth. Rev./Oth. Deduct Capital (Credit)/Surcharge - BT Cash Flow 4,553.9 Tax Paid AT Cash Flow 3,991.2 Annual Company Share Cash Flow Year Rate Comp Sales Revenue GOR (non Royalty Reserve) Revenue After Royalty Additional Taxable Revenue Additional Non- Taxable Revenue Other expenses Opex Capex Aband BTax Cash Flow Total Taxes ATax Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , ,488-4, ,755-35, ,866 95, , , , ,356-5, ,299-40, ,840 71, , , , ,023-3, ,424 12,521 38, , , , , , ,182-2, ,104 17,855 30, ,868 2, , , , ,982-4, ,211 11,967 39, ,873 3, , , , ,744-5, ,496 8,406 39, ,156 28, , , , ,801-5, ,231 5,902 39, ,023 7, , , , ,395-5, ,627 4,104 39, , ,017 3, , , , ,564-4, ,847 2,887 42, ,458 2,366 9, , , , ,749-3, ,346 2,473 42, , ,219 8,664 89,760 3,606 86, , ,837-2, ,178 10,852 35, ,726 2,462 17, ,246 86, , , ,066-2, ,806 9,394 25, ,593 2,511 37, , , , , ,426-1, ,487 6,738 19, ,418 2,561 23, ,929 99, , , ,740-1, ,136 5,161 15, ,112 2, ,214 81, , , ,778-1, ,300 4,104 13, ,462 2, ,763 66, , , ,545-1, ,191 3,326 11, ,627 2, ,297 52,313 78, , ,194-1, ,015 2,755 9, ,966 2, ,660 41,458 64, , ,609-1, ,557 2,328 8, ,562 2,828-86,020 33,293 52, , ,858-1, ,857 1,999 7, ,331 2,884-71,638 27,124 44, , , ,332 1,726 7, ,520 2,942-59,163 22,062 37, , , ,930 1,510 7, ,104 3,001-48,525 17,716 30, , , ,380 1,332 6, ,987 3,061-38,496 13,765 24, , , ,242 1,187 6, ,191 3,122-28,646 9,925 18, ,540 95, ,687 1,058 6,225-93, ,813 3,574 5, ,680 66, , ,509-67,627-5,847-3,121-1,423-1, , , ,043-14,910-13,349-4,621-8,729

14 Table 4-Total Year Rate Comp Sales Revenue GOR (non Royalty Reserve) Ithaca Energy Inc. As of December 31, 2017 Total Proved + Probable + Possible Total, All Fields Revenue After Royalty Additional Taxable Revenue Additional Non- Taxable Revenue Other expenses Opex Capex Aband BTax Cash Flow Total Taxes ATax Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , , ,571-42,338-41,235-13,397-27, , , ,813-91,479-90,850-31,624-59, , , ,059-69,135-68,934-35,367-33, , , ,077-10,589-10,568-14,037 3, ,409 1, (1) ,599-5,599-12,795 7, ,277-14, , ,397-9, , ,682-1, , ,029-1, , yr 8,298,129-64,274 8,233, , ,064-3,252, , ,739 4,553, ,690 3,991,225 As requested by the Company, the abandonment and reclamation costs were applied starting 2 years after the cessation of production, over a 3 year period. For the year immediately following the cessation of production, all cashflow values (revenue, costs, etc) are therefore zero. The software which generated the economic output automatically hides rows that contain no values.

15 Table 4-Total Ithaca Energy Inc. As of December 31, 2017 Total Proved + Probable Total, All Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved + Probable Working United Kingdom 27.9 % SIL as of December 31, 2017 Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type <multiple> Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 256,702 71,736-71,736 4, , , , ,839.1 Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 2,116,465 1,694,889 1,370,471 1,126, ,311 Tax Payable AT Cash Flow 2,116,465 1,694,889 1,370,471 1,126, ,311 Cash Flow (MM$US) Co. Share Revenue 4,573.7 Royalties (Stella, Harrier) 32.4 Operating Cost 1,861.4 Abandonment/Salvage Oth. Rev./Oth. Deduct Capital (Credit)/Surcharge - BT Cash Flow 2,116.5 Tax Paid - AT Cash Flow 2,116.5 Annual Company Share Cash Flow Year Rate Comp Sales Revenue GOR (non Royalty Reserve) Revenue After Royalty Additional Taxable Revenue Additional Non- Taxable Revenue Other expenses Opex Capex Aband BTax Cash Flow Total Taxes ATax Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , ,506-4, ,112-33, ,649 95, , , , ,911-4, ,287-37, ,815 71, , , , ,862-3, ,436 10,375 35, , , , , , ,007-1, ,029 16,226 28, ,396 2, , , , ,683-3, ,905 10,026 35, , , , , , ,712-3, ,589 6,128 39, , ,206 3, , , , ,711-2, ,276 10,171 32, ,551 2,274 7, , , , ,642-1, ,744 7,996 21, ,070 2,320 20, , , , ,455-1, ,926 5,036 15, ,088 2,366 39, , , , ,334-1, ,122 2,500 11, ,338 2,414 23,874 99,271-99, , ,897-1, ,847 1,836 8,542-94,148 2,462-83,615-83, , , ,525 1,392 7,081-90,745 2,511-57,742-57, , , ,541 1,090 6,078-88,690 2,561-38,458-38, , , , ,604-87,655 2,613-24,759-24, ,158 97, , ,060-87,068 2,665-12,458-12, ,239 41, , ,684 2,718-6,694-6, , , ,824 2,772 25,889-21, , , , ,537 2,828 71,583-68, , , , ,630 2,884 54,596-53, , , , ,807 2,942 13,101-12, , ,767-11, , ,699-13, , ,846-14, , ,599-8, , yr 4,573,672-32,430 4,541,242 74, ,943-1,861, , ,995 2,116,465-2,116,465

16 Table 4-Total Ithaca Energy Inc. As of December 31, 2017 Total Proved Total, All Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved Working United Kingdom 22.5 % SIL as of December 31, 2017 Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type <multiple> Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 120,923 27,214-27,214 1, , , , Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 484, , , , ,961 Tax Payable AT Cash Flow 484, , , , ,961 Cash Flow (MM$US) Co. Share Revenue 1,541.9 Royalties (Stella, Harrier) 13.2 Operating Cost Abandonment/Salvage Oth. Rev./Oth. Deduct Capital (Credit)/Surcharge - BT Cash Flow Tax Paid - AT Cash Flow Annual Company Share Cash Flow Year Rate Comp Sales Revenue GOR (non Royalty Reserve) Revenue After Royalty Additional Taxable Revenue Additional Non- Taxable Revenue Other expenses Opex Capex Aband BTax Cash Flow Total Taxes ATax Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , ,045-3, ,136-30, ,378 46, , , , ,782-2, ,054-22, ,076 33,337-86,143-86, , ,299-1, ,510 7,733 21, , ,921-51,455-51, , ,613-1, ,265 12,875 21, ,716 2, , , , ,564-1, ,523 7,535 14,443-69,862 2,186 3, , , , , ,435 4,422 9,909-54,851 28,987 20,743 29,186-29, ,819 91, ,414 2,661 7,217-51,413 2,274 41,909 4,695-4, ,969 71, ,378 1,646 5,724-50,259 2,320 31,098-4, , ,842 45, , ,014-38,814 2,366 6,986 1,077-1, , , ,819 2,414-4,225-4, , , ,041 2,462 13,392-11, , , , ,126 2,511 37,917-37, , ,943-30, , ,692-11, , ,671-12, , ,339-7, , yr 1,541,905-13,180 1,528,724 37, , , , , , ,465

17 Table 4-GSA Fields Ithaca Energy Inc. GSA As of December 31, 2017 Total Proved + Prob. + Poss. GSA Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved + Prob. + Poss. Working United Kingdom 56.5 % SIL as of December 31, 2017 Not Applied Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type <multiple> Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 136,895 77,406-77,406 5, , , , ,371.2 Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 3,043,048 2,088,691 1,500,426 1,128, ,864 Cash Flow (MM$US) Co. Share Revenue 5,220.1 Royalties (Stella, Harrier) 64.3 Operating Cost 2,043.5 Abandonment/Salvage Oth. Rev./Oth. Deduct Capital (Credit)/Surcharge - BT Cash Flow 3,043.0 Annual Company Share Cash Flow Additional Additional Comp Sales GOR (non Revenue Taxable Non-Taxable Other BTax Year Rate Revenue Royalty Reserve) After Royalty Revenue Revenue expenses Opex Capex Aband Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , ,882-4, ,149-35,932-76,429 33, , , ,549-5, ,492-40,454-83,386 54,432-95, , ,524-3, ,926 12,521 38,481-82, , , , ,132-2, ,053 17,855 30,802-73, , , ,214-4, ,444 11,967 39,800-86,325 1, , , ,623-5, ,374 8,406 39,709-85, , , ,136-5, ,565 5,902 39,666-86,552 5, , , ,347-5, ,579 4,104 39,928-88, ,697-44, , ,614-4, ,897 2,887 42,171-94, , , ,817-3, ,415 2,473 42,578-99, ,805-26, , ,422-2, ,762 10,852 35, , , , ,975-2, ,715 9,394 25, , , , ,925-1, ,986 6,738 19, , , , ,233-1, ,629 5,161 15,641-92, , , ,409-1, ,931 4,104 13,485-85, , , ,848-1, ,494 3,326 11,126-76, , , ,462-1, ,282 2,755 9,630-72, , , ,867-1, ,815 2,328 8,525-69, , ,118 97,462-1,000 96,461 1,999 7,997-67, , ,749 87, ,329 1,726 7,567-65, , ,439 78, ,020 1,510 7,190-64, , ,172 71, ,814 1,332 6,832-63, , ,945 65, ,880 1,187 6,530-63, , ,749 60, ,370 1,058 6,225-62, , (7) 1,612 32, , ,509-36, ,213-33, ,694-84, ,833-51, yr 5,220,098-64,274 5,155, , ,064-2,043, , ,740 3,043,048

18 Table 4-GSA Fields Ithaca Energy Inc. GSA As of December 31, 2017 Total Proved + Probable GSA Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved + Probable Working United Kingdom 54.3 % SIL as of December 31, 2017 Not Applied Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type <multiple> Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 83,904 45,551-45,551 2, , , , ,094.1 Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 1,385,392 1,097, , , ,265 Cash Flow (MM$US) Co. Share Revenue 2,745.4 Royalties (Stella, Harrier) 32.4 Operating Cost 1,092.7 Abandonment/Salvage Oth. Rev./Oth. Deduct Capital (Credit)/Surcharge - BT Cash Flow 1,385.4 Annual Company Share Cash Flow Additional Additional Comp Sales GOR (non Revenue Taxable Non-Taxable Other BTax Year Rate Revenue Royalty Reserve) After Royalty Revenue Revenue expenses Opex Capex Aband Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , ,664-4, ,269-33,615-73,107 33,874-93, , ,616-4, ,992-37,369-78,972 54,432-79, , ,150-3, ,724 10,375 35,576-78, , , , ,502-1, ,523 16,226 28,895-70, , , ,509-3, ,731 10,026 35,045-79, , , , ,878-3, ,754 6,128 39,026-87, ,219-31, , ,218-2, ,783 10,171 32, , , , ,963-1, ,065 7,996 21,829-95, , , ,846-1, ,317 5,036 15,794-78, , , ,283-1, ,071 2,500 11,275-67, , ,822 97,566-1,050 96,516 1,836 8,542-60, , ,922 77, ,252 1,392 7,081-56, , ,302 62, ,799 1,090 6,078-53, , ,928 53, , ,604-51, , ,595 45, , ,060-50, ,889-25, ,017-66, ,403-40, yr 2,745,362-32,430 2,712,932 74, ,943-1,092, , ,309 1,385,392

19 Table 4-GSA Fields Ithaca Energy Inc. GSA As of December 31, 2017 Total Proved GSA Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved Working United Kingdom 44.7 % SIL as of December 31, 2017 Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type <multiple> Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 37,900 16,953-16, Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 425, , , , ,759 Cash Flow (MM$US) Co. Share Revenue Royalties (Stella, Harrier) 13.2 Operating Cost Abandonment/Salvage 68.4 Oth. Rev./Oth. Deduct Capital (Credit)/Surcharge - BT Cash Flow Annual Company Share Cash Flow Additional Additional Comp Sales GOR (non Revenue Taxable Non-Taxable Other BTax Year Rate Revenue Royalty Reserve) After Royalty Revenue Revenue expenses Opex Capex Aband Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , ,695-3, ,786-30,006-67,878 33,874-77, , ,566-2, ,838-22,503-57,251 24,325-44, , ,060-1, ,271 7,733 21,210-55, ,717-18, , ,586-1, ,238 12,875 21,701-58, , , ,437-1, ,395 7,535 14,443-45, , ,456 78, ,249 4,422 9,909-37, , ,329 54, ,591 2,661 7,217-34, , ,719 40, ,941 1,646 5,724-32, , (8) 1,138 18, , ,014-20, ,392-13, ,149-34, ,899-20, yr 903,319-13, ,138 37, , , ,915 68, ,892

20 Table 4-Non-GSA Fields Ithaca Energy Inc. Non-GSA Fields As of December 31, 2017 Total Proved + Prob. + Poss. Non-GSA Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved + Prob. + Poss. Working United Kingdom 15.2 % SIL as of December 31, 2017 Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type Solution Gas Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 267,142 40,602-40,602 3, , , , Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 1,510,867 1,111, , , ,191 Cash Flow (MM$US) Co. Share Revenue 3,078.0 Royalties - Operating Cost 1,209.2 Abandonment/Salvage Oth. Rev./Oth. Deduct. - Capital (Credit)/Surcharge - BT Cash Flow 1,510.9 Annual Company Share Cash Flow Additional Additional Comp Sales GOR (non Revenue Taxable Non-Taxable Other BTax Year Rate Revenue Royalty Reserve) After Royalty Revenue Revenue expenses Opex Capex Aband Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , , , ,437 61,306-34, , , , ,454 17, , , , , ,832 4, , , , , ,974 2, , , , , ,549 2, , , , , ,180 28, , , , , ,472 2, , , , , ,489 2,320 3,194 93, , , , ,864 2,366 9,588 71, , , , ,828 2,414 8,664 63, , , , ,443 2,462 17,075 48, ,201 97, , ,069 2,511 37,801 21, ,976 92, , ,715 2,561 23,134 31, ,782 88, , ,378 2,613-49, ,589 85, , ,073 2,665-45, ,415 81, , ,783 2,718-41, ,281 79, , ,495 2,772-38, ,164 77, , ,219 2,828-35, ,054 75, , ,947 2,884-32, ,958 73, , ,700 2,942-29, ,867 70, , ,472 3,001-26, ,772 68, , ,258 3,061-23, ,659 65, , ,096 3,122-19, , , , , , , ,216-5,847-3, , , ,043-14,910-13, , , ,571-9,125-8, , , ,813-6,785-6,157

21 Table 4-Non-GSA Fields Year Rate Comp Sales Revenue Ithaca Energy Inc. Non-GSA Fields As of December 31, 2017 Total Proved + Prob. + Poss. Non-GSA Fields GOR (non Revenue Royalty Reserve) After Royalty Additional Additional Taxable Non-Taxable Revenue Revenue Other expenses Opex Capex Aband BTax Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , , ,059-17,302-17, , , ,077-10,589-10, (1) ,599-5, ,277-14, ,397-9, ,682-1, ,029-1, yr 3,078, ,078, ,209, , ,999 1,510,867

22 Table 4-Non-GSA Fields Ithaca Energy Inc. Non-GSA Fields As of December 31, 2017 Total Proved + Probable Non-GSA Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved + Probable Working United Kingdom 15.2 % SIL as of December 31, 2017 Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type Solution Gas Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 172,799 26,185-26,185 1, , , Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 731, , , , ,046 Cash Flow (MM$US) Co. Share Revenue 1,828.3 Royalties - Operating Cost Abandonment/Salvage Oth. Rev./Oth. Deduct. - Capital (Credit)/Surcharge - BT Cash Flow Annual Company Share Cash Flow Additional Additional Comp Sales GOR (non Revenue Taxable Non-Taxable Other BTax Year Rate Revenue Royalty Reserve) After Royalty Revenue Revenue expenses Opex Capex Aband Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , , , ,542 61,306-20, , , , ,843 17,460-82, , , , ,270 4, , , , , ,650 2, , , , , ,362 2, , , , , ,843 28,987 3,070 69, , , , ,978 2,274 7,830 72, , , , ,471 2,320 20,107 45, ,259 89, , ,998 2,366 39,032 15, ,859 81, , ,553 2,414 23,874 21, ,499 73, , ,139 2,462-36, ,202 66, , ,725 2,511-29, ,969 60, , ,324 2,561-22, ,765 55, , ,938 2,613-17, ,563 51, , ,607 2,665-11, ,239 41, , ,684 2,718-6, , , ,824 2,772-4, , , ,537 2,828 5,566-2, , , ,630 2,884 14,194-12, , , ,807 2,942 13,101-12, ,767-11, ,699-13, ,846-14, ,599-8, yr 1,828, ,828, , , , ,073

23 Table 4-Non-GSA Fields Ithaca Energy Inc. Non-GSA Fields As of December 31, 2017 Total Proved Non-GSA Fields Evaluation Parameters Reserves Category Plan Reference Date Discount Date Country State Company Share Price Deck Price Set Economic Limit Scenario BOE Ratio Chance of Success Total Proved Working United Kingdom 12.4 % SIL as of December 31, 2017 Reserves 6:1 Mcf/bbl % Chance of Occurrence % Oil Reserves Type Light and Medium Oil Gas Reserves Type Solution Gas Remaining Reserves Net Revenue NPV (MM$US) Gross WI RI Net 0.00 % 5.00 % % % % Total MBOE 83,023 10,262-10, Economic Indicators (Comp. WI) Op. Cost ($US/BOE) Cap. Cost ($US/BOE) WI Cash Flow NPV (M$US) 0.00 % 5.00 % % % % BT Cash Flow 58,573 83,884 95, , ,202 Cash Flow (MM$US) Co. Share Revenue Royalties - Operating Cost Abandonment/Salvage Oth. Rev./Oth. Deduct. - Capital 73.4 (Credit)/Surcharge - BT Cash Flow 58.6 Annual Company Share Cash Flow Additional Additional Comp Sales GOR (non Revenue Taxable Non-Taxable Other BTax Year Rate Revenue Royalty Reserve) After Royalty Revenue Revenue expenses Opex Capex Aband Cash Flow BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US , , , ,500 12,520-66, , , , ,824 9,012-41, ,942 91, , ,897 4,204-33, ,657 67, , ,590 2,143-19, ,319 35, , ,489 2,186 3,010 5, ,756 42, , ,159 28,987 20,743-24, ,491 36, , ,387 2,274 41,909-24, ,250 31, , ,624 2,320 31,098-19, ,085 27, , ,899 2,366 6, , , ,819 2,414-4, , , ,041 2,462-2, , , ,126 2,511 3,768-3, ,043-10, ,692-11, ,671-12, ,339-7, yr 638, , ,355 73, ,259 58,573