Investor Presentation David Casey, Managing Director July 2015 1
Company Information Key Assets Norte Basin, Uruguay - Targeting conventional and unconventional oil targets in Piedra Sola & Salto Concessions (3.5M acres) Betic Alps, Spain - Targeting conventional sandstone gas reservoirs in 94,000 acres in Southern Spain Lochend Cardium, Alberta, Canada - Targeting tight oil in siltstone and sandstone units in 9,500 acres Board & Management Alexander Sundich* Chairman David Casey* Managing Director & CEO Russell Porter Non-Executive Director Andrew Williams Non-Executive Director Ian Kirkham* Company Secretary Stephen Mitchell* Founder & External Advisor Capital Structure Cash: $2.0m (30 June 15 + Placement ) Issued Cap: 485.1m Shares Market Cap: $24.2m (at $0.05) Debt: $0 ASX Code: PRL Shareholders David Casey* 8.4% Stephen Mitchell* 7.1% Cameron Richard Pty Ltd 6.3% Alexander Sundich* 5.0% Smithley Super Pty Ltd 4.6% Linwierik Super 3.9% Ian Kirkham* 2.8% Top 20 54.0% 2
The road to success 3
Background 2013 2014 2015 Share price low of $0.045 Market cap $12.2m New strategic direction to build a portfolio of high quality resource assets with acquisition of Uruguay and Spanish assets Share price $0.255 Market cap $113m Significantly outperformed the ASX Energy Index & Peers for CY2013 Prospective resource for Spain of up to 2.3TCF, independently certified by NSAI (1TCF net to Petrel) Successful corehole programme Share price $0.05 Market cap $23.1m Prospective resource for Uruguay, up to 910 MMBBL oil and 3.1TCF gas (464 MMBBL of oil and 1,583 BCF of gas net to Petrel) Significant upside potential 12 months can appear a long time 4
Performance Drivers PRL Share Price versus Equal Weighted Index of 20 Company PRL Peer Group by Market Capitalisation 1 Nov 2012 = 100 Excellent Corehole Results & Resource Certification for Spain Delays with Seismic Programme and Spain Farmout Commence Corehole Programme Uruguay and Spain Assets Acquired (Oct 2012) Petrel Energy Oil Price below US$100 Oil Price below US$80 Excellent Seismic Results and Resource Certification for Uruguay Resource Invest: Australian Oil & Gas Research, July 2015 5
and relative to broader Market? Petrel Energy (Oil & Gas Market Cap: $100m $1000m) (Oil & Gas Market Cap: $10m - $100m) Resource Invest: Australian Oil & Gas Research, June 2015 6
Purpose of Recent Capital Raising To maintain Petrel s negotiating position with regard to next steps in Uruguay which could include: potential completion of farmin negotiations currently underway for 2016 and 2017 work programmes an enhanced percentage interest in Uruguay concessions in return for funding possible corporate activity to enhance medium/long term funding position This raise sets up medium term funding position 7
The road to success 8
URUGUAY 9
Seismic Upside Gas & Oil Identified multiple new large conventional targets, significantly, many at relatively shallow depths NSAI certified resources estimates of up to 910 MMBBL oil and 3.1TCF gas in place Currently 20 conventional leads (one prospect) with estimates of up to 700MMBBL OOIP and over 900BCF OGIP for individual structures Seismic has identified a deeper pre- Devonian sedimentary sequence which could contain additional hydrocarbon potential Seismic has confirmed potential of resource scope and scale 10
more you look more you find Ongoing analysis of seismic data continues to enhance our knowledge of the geological and structural evolution of this basin Recently identified very large structures provide significant TCF upside potential not covered in previous scope of work undertaken by NSAI Ongoing analysis and interpretation continues to identify significant upside 11
Evidence of Gas? Recent amplitude versus offset analysis (AVO) particularly at the top of structural highs as seen here may represent the presence of gas-filled sandstone reservoirs Where there s gas theirs's oil This prospect alone has over 700BCF of OGIP potential 12
Is there a market? Uruguay LNG imports on hold Uruguay, Argentina and Brazil have gas deficits Uruguay s new Punta del Tigre power plant on outskirts of Montevideo will consume ~0.14 bcf/day Buenos Aires consumes ~1.4 bcf/day (and up to 5x in winter peaks) South Brazil consumes ~3.5 bcf/day (50% imported) Access to pipeline Ready access into South American pipeline network Minimal land access and topographic issues Very attractive oil & gas marketing opportunities 13
Uruguay the journey thus far Potential Resource Targets Partner Salt o Ideal operating environment with local and regional oil & gas markets Petrel acquires concessions in Uruguay MT survey carried out - confirms northwest rift basin Enabled refinement of corehole programme Corehole programme confirms oil generation and active petroleum system Evidence of free oil in coreholes more than 100km apart Results support seismic acquisition programme Seismic programme successfully completed Numerous structural leads identifed, ranging from 2 241 MMBBL AVO s increase propsectivity NSAI have independently certified an unrisked Prospective Resource in the Salto and Piedra Sola concessions of up to 910 MMBBL oil and 3.1TCF gas (464 MMBBL of oil and 1,583 BCF of gas net to Petrel) In a short space of time, oil generation has been confirmed and possible targets identified 14
SPAIN 15
Spain awaiting approvals Acquisition Potential Resource Partner Well site located 3km from 40 gas pipeline with excess capacity Access to high priced European gas prices Detailed formation evaluation indicates upwards of 500m of net pay Prospective Resource of up to 2.3TCF (Petrel 1TCF) certified by Netherland, Sewell & Associates, Inc. (NSAI) Salt o New core analysis using modern techniques has confirmed up to 212m of net pay Testing also confirmed excessive reservoir damage in original well as likely cause of inhibited gas flow Joint Venture is currently seeking a suspension of activities until approval is granted for the Tesorillo - 1 well 16
Appendices List of Appendices 1. Experienced Board and Management Team 2. Research 3. Simplified Fiscal Flowcharts 4. Comparison of Fiscal terms 5. Disclaimer 17
1. Experienced Board and Management Team Alex Sundich David Casey Russell Porter Andrew Williams Ian Kirkham Chairman Managing Director & CEO Non-Executive Director Non-Executive Director Company Secretary & CFO Alex has over 20 years' experience in the financial services industry in M&A, capital markets and funds management working for investment banks in New York and Australia. Alex was previously a Non Executive Director of Eastern Star Gas Limited and Executive Director of Harvest Capital Partners, an investment firm that he co-founded in 2008. Alex is also a Director of Burleson Energy Ltd. David Casey graduated with an Honours degree in Geology from the University of Sydney. David has over 20 years experience in the management and evaluation of all aspects of unconventional exploration and appraisal, from initial reservoir characterisation and fairway identification through to drilling, testing and production operations. Previously Managing Director of Eastern Star Gas Limited, the subject of a $924m takeover by Santos Limited valuing the Narrabri Project at $1.42b. Over a 30-year career, Russell has obtained a unique background with substantial exposure to the international natural resources industry and capital markets. Russell was/is CEO of Gastar Exploration Inc (with current EV of $1.0b) when it held a 35% interest in the Narrabri Gas Project operated by Mr David Casey then Managing Director of Eastern Star Gas Limited. The Narrabri Gas Project was ultimately sold to Santos Limited with Gastar and Eastern Star Gas Limited shareholders realising $320m and $924m respectively. Andrew has a Masters Degree in Applied Geology and Grad Dip (Finance) from RMIT University. Andrew has been an equity research analyst in the top echelons of Australian capital markets for over 20 years focusing on the global energy sector and in particular across oil and gas markets. His formal education in geology and finance put Andrew at the vanguard of analysis of unconventional energy, which has only inhabited the listed space for the past decade. Ian is a Chartered Accountant with 20 years experience in CFO & CoSec roles; assisting listed companies to evaluate, finance and construct resource projects. Ian has experience in oil & gas, gold and copper projects. Most recently Ian was CFO & CoSec of Eastern Star Gas Limited, the subject of a $924m takeover by Santos Limited. Highly experienced management and technical team in place to achieve its strategic objectives 18
2. Research Research Up to date research, recent investor presentations, regularly updated share price graphs and information on our projects can be found at www.petrelenergy.com 19
3. Simplified Fiscal Flowcharts No royalties in Spain No royalty in Uruguay 40% 60% 35% for O&G companies in Spain 25% ANCAP has right to back in for 50% on a heads up basis. 20
4. Comparison of Fiscal Terms Spain is considered the world s most competitive fiscal regime 21
5. Disclaimer Important Notice This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. Shareholders should not rely on this presentation. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. The information set out in this presentation does not purport to be all inclusive or to contain all the information which its recipients July require in order to make an informed assessment of Petrel. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation. To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted. This presentation July include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Petrel. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events July be materially different to those expressed or implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Petrel does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based. 22
CONTACT Office Location Level 3, 10 Bridge Street Sydney NSW 2000 P (02) 9254 9000 www.petrelenergy.com July 2015 23