Reissued Presentation includes updated timetable and excludes AVO Mcf valuation. Opportunity to fund Petrel in a staged exploration programme in 3.5m acres in Uruguay, with world class source rocks and NSAI resource already certified. Low cost conventional programme: multiple wells different targets addresses conventional potential and resource upside not binary 3 of 4 wells have multiple objectives opportunity to acquire more of asset Conventional Resource Certification by NSAI (1) Salto & Piedra Sola Concessions 100% Prospective Resource (MMbbl) Prospective Resource (BCF) Low Estimate (P90) 148 575 Best Estimate (P50) 405 1472 High Estimate (P10) 910 3104 1) The unconventional resource potential was not considered/included in the scope of the NSAI evaluation at this time Uruguay Corehole Achar E-1; Oil leaching from Devonian sandstones just below Cordobes Shales (306-315m) 1
Corporate Overview OVERVIEW Highly experienced ASX listed board, management team and advisory team with a strong track record in discovering, developing and monetising oil and gas resources globally Board, Management & Shareholdings: Alexander Sundich Chairman 4.8% David Casey Managing Director & CEO 7.3% Russell Porter Non-Executive Director Andrew Williams Non-Executive Director Ian Kirkham Company Secretary 2.6% Stephen Mitchell Founder & External Advisor 6.2% Top 20 shareholders hold 55% of shares CAPITAL STRUCTURE Post Rights Issue Pre Rights Issue Cash: $5.2m $0.5m (30 June) Issued Cap: 1,060.1m Shares 265m Listed Options at 4c 18.9m Unlisted Options at 5c Market Cap: $10.6m (at $0.01) $7.4m 529.1m Shares - 18.9m Unlisted Options at 5c Debt: $0 external debt $0 external debt ASX Code: PRL PRL CORPORATE TIMELINE 2007 SEI founded Feb 12 Salto and Piedra Sola exploration concessions awarded to SEI Oct 12 Petrel acquires 25% in SEI for US$2.5m Sep 13 Cardozo Chico E-1 and Cerro Padilla E-1 spudded Oct 13 Cardozo Chico E-1 confirms oil Dec 13 Petrel increases the SEI stake to 51% for US$5.5m (via an earlier option) Feb 14 Uruguay corehole sample confirm excellent permeability and porosity Nov 14 580km Uruguay 2D seismic completed May 15 910 MMBBL oil and 3.1TCF gas resource certified by NSAI Mar 16 Drilling permits submitted for approval Uruguay Developments SEI Corporate Developments Petrel holds Uruguay and Spanish assets through 51% shareholding in SEI 2
Rights Issue Terms THE OFFER The Company intends to raise up to ~$5.3m by way of Rights Issue priced at 1 per share. Rights Shares issued on the basis of one new Rights Share for every one share held Rights Options issued on the basis of one free listed Attaching Option for every two Rights Shares subscribed for exercisable at 4 with a 1-year expiry. Patersons Securities Limited are Lead Manager and Underwriter to the Rights Issue Minimum $3.0m underwritten with book still open Existing Securities Rights Issue (1:1) Shares Listed Options* Amount Raised (A$) 530,055,992 - - 530,055,992 265,027,996 Total 1,060,111,984 265,027,996 * Listed options on issue with a 4 exercise price and 1 year expiry date (max raise) $5,300,559 (Mkt Cap) $10,601,118 Indicative Rights Issue Timetable Lodgement of Documents 12 August 2016 Letter to Shareholders re Rights Issue 15 August 2016 Ex Date and Rights trading commences on a deferred settlement basis 16 August 2016 Record Date for Rights Issue 17 August 2016 Prospectus and Personalised Application Forms dispatched to all Shareholders 19 August 2016 Rights Issue Opening Date 19 August 2016 Rights trading ends 23 August 2016 Shares quoted on a deferred settlement basis 24 August 2016 Rights Issue Closing Date Amount of shortfall notified to ASX and Underwriter Rights Issue shares allotted and issued to Shareholders 5.00pm (AEST) on 30 August 2016 1 September 2016 5 September 2016 Normal trading commences 6 September 2016 Expected dispatch of Holding Statements 8 September 2016 Note: All the dates and times are indicative only and subject to change at the discretion of the Company. 3
Exploration to date & next step Potential Resource Targets Drilling & Partner 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 NSAI independently certify the Prospective resource in the Salto and Piedra Sola concessions of up to 910 MMBBL oil and 3.1TCF gas AVO s increase propsectivity Test Prospects with potential for oil and gas Confirm conventional reservoir development and test closures identified from seismic and MT programmes Confirm source rock & maturation modelling to validate resource upside potential Active oil and gas system confirmed and drillable targets identified 4
Prerequisites to success are in place Management Experienced team who have done it before. First class technical capabilities Asset Material acreage position encapsulating entire Salto Graben first mover advantage Technical World class source rock World class reservoir rock Darcy permeability measured in core samples Risk Management/Mitigation Diversified portfolio Oil & Gas Conventional & Unconventional Staged appraisal programme Low cost high upside Favourable jurisdiction Low sovereign risk and positive stakeholder support Markets Permeability = 20.5 darcies Local oil refinery currently consumes in excess on 40,000bopd and high regional gas prices Permeability = 30.9 darcies Petrel ticks all the boxes 5
Wells to be drilled on existing seismic 4 well conventional programme: multiple wells different targets addresses conventional and unconventional not binary 3 of 4 wells have double objectives opportunity to acquire more of asset Well locations based on results of recent seismic, core and MT analysis 6
Overview of conventional Plays Source Rocks The source rocks have good TOCs and maturity consistent with oil generation: Reservoir Rocks Reservoir Rocks with high permeability and porosity have been identified at two horizons ~1,500m and ~3,000m: Mangrullo (Permian) Cordobes (Devonian) TOC: ~5.5% Maturity: Oil TOC: ~3.0% Maturity: Oil- Gas Tres Islas (Permian) Cerrezuelo (Devonian) Thickness: 3-10 meters Porosity: ~24% Permeability: ~120 md Thickness: 100-150 meters Porosity: ~26% Permeability: > 3,000 md Mangrullo Frayle Muerto Tres Islas La Paloma Salto - Deeper Play - ~3,000-3,500 m deep - 6 leads identified to date - Oil/Condensate prone Mangrullo Salto & Piedra Sola Shallow Play - ~1,500 m deep - 14 leads identified to date - Oil prone Tres Islas La Paloma High quality source and reservoir rocks, with excellent permeability and porosity identified across Permian and Devonian sequences 7
4 Well Programme objectives are Confirm source rock maturity, quality & extent resource upside Confirm conventional reservoir quality & extent Darcy permeability (1000+md) already measured in core samples 30km apart While not the primary objective, 3 of 4 wells are also targeting structures for oil and gas trapped in either the same sequence or up-dip of (fluorescence) oil shows and/or oil weeping from core samples Fourth well to test large AVO gas target. 30+ additional AVO s already identified Address key questions of maturity and source rock quality and extent raised by Majors in farmout process Current focus is on shallow targets to minimize costs but significant upside exists at depth 8
Use of Funds Min Raise Max Opt. 1 Max Opt. 2 51% of 2 Wells 51% of 4 Wells 100% of 2 Wells Well 1- Archar 1 - - Well 2 - Cerro Padilla 1 - - Well 3 - J Structure Well 4 - Shallow AVO Wells /mob/demob 2,417 3,500 2,417 Project G&A 400 600 400 Follow up wells or seismic - 1,100 - Uruguay Project USD 2,817 5,200 2,817 Uruguay Project AUD @.75 3,756 6,933 3,756 Petrel % 51% 51% 100% Petrel s Share in AUD @.75 1,360 3,536 3,756 G&A and Other Projects 970 1,360 970 Total 2,886 4,986 4,726 A 4 well programme funded 51% by Petrel, with new rig mobilised from US will answer key questions across both permits and move project to next stage. A minimum 2 well programme funded 100% by Petrel will still answer key questions and increase Petrel s JV interest. With the new rig in Uruguay future mobilisation charges will be significantly reduced and, if successful, funding for future wells should be achievable at much higher share prices. Note: Petrel expects its partner in Uruguay to fund most or all of its 49% interest in the four well programme but would be able to fully fund rig mobilisation and the J Structure well and Shallow AVO well if required see Max Opt. 2. Both 2 and 4 well programmes will address key questions of maturity and source rock quality and extent raised by Majors in farmout process 9
Oil and Gas Markets. Gas Pipeline Infrastructure Project Infrastructure Total Areas Brazil Salto Piedra Sola ANCAP Uruguay ANCAP Gas Pipeline Project Gas Pipeline Project Oil Pipeline La Teja Refinery Area 11 BP Uruguay, Argentina and Brazil have gas deficits Uruguay s new Punta del Tigre power consumes ~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) Buenos Aires Argentina Montevide o Area 12 BP Area 15 Tullow Oil Current Small Scale Area 6 Gas Import Pipelines BP Area 14 Total Area 4 Petrobas Area 3 YPF Onshore Active Block Area 8 BG Area 9 BG Area 13 BG Offshore Active Block ANCAP currently imports in excess of 40,000bopd into the La Teja Refinery in Montevideo 10
Management s Project Experience David Casey s time as CEO of Eastern Star Gas (ESG) has shown that small companies can successfully develop very large resource opportunities by progressing the Gunnedah project from a little explored basin to a gas field for potential LNG export. Gunnedah Basin was much like the Norte Basin challenge un Uruguay: Large concession 9.2 million acres Unsuccessfully drilled by US companies years earlier Small company (<$3m cash) with large challenge Raised $234m from shareholders to follow his Gunnedah Basin vision As operator spent $162m on exploration in NSW Australia Tested more than 6 different completion techniques to optimise gas production 11
Management s Project Experience Teamed with Hitachi and Toyo Engineering to develop a $2 billion LNG export facility utilising modular design for low cost quick delivery. Submitted approvals to Government for 300 well field development, 300km pipeline and LNG plant Partner ultimately bought project for its own LNG plant Value created over 5 years was $1.4 billion moving much faster than oil majors Management has track record of grassroots project development to completion 12
Why invest in Petrel? Positive early results in Uruguay and third party validation of conventional resource potential World class source rocks: based on core holes and field work and lab testing Proof of maturity: based on vitrinite reflectance, maturation modelling and AVOs World class reservoir rock: based on core holes, field work and lab testing Traps and seals: seismic generated leads with interpretation and volumes validated by NSAI NSAI P50 Prospective Resource of 405MMbbl and 1472Bcf in part limited by existing seismic and potentially conservative Very low cost, high upside opportunity to: Take large basin controlling position in a prospective onshore basin Grow resource and attract large partner Increase 51% controlling interest to mitigate dilution Uruguay asset is divisible several different ways, future partners can come into the asset: Conventional or unconventional Salto or Piedra Sola concessions Favourable jurisdiction with ready oil & gas market and transportation options Pipeline of other projects at various stages of exploration and appraisal 13
Appendix-1 Why Uruguay? 14
Why Uruguay? Asset Country 3.5 million acres provides a basin controlling position in one of Uruguay s most prospective onshore basins NSAI estimated P50 recoverable resource of 405 MMbbl oil and 1.5 TCF of gas in conventional plays Unconventional upside World class reservoir rock high permeability, high porosity, oil shows Attractive regulatory and fiscal regime Large unexplored opportunity in a low risk country 15
Comparison of fiscal terms 16
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 may 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 may 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 may 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. 17
CONTACT Office Location Level 6, 10 Bridge Street Sydney NSW 2000 Phone: + 61 2 9254 9000 www.petrelenergy.com 18