For personal use only - ASX · Investor Presentation. David Casey, Managing Director. July 2015. 1....

Investor PresentationDavid Casey, Managing Director

July 2015 1

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Investor Presentation I July 2015

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

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

ShareholdersDavid 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%

Board & ManagementAlexander 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

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The road to success

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Background…

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

2013 2014 2015

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 coreholeprogramme

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…

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Performance Drivers…

Oil Price below US$100

1 Nov 2012 = 100

Oil Price below US$80Uruguay and Spain Assets

Acquired (Oct 2012)

Petrel Energy

Excellent Corehole Results & Resource Certification for Spain

Delays with Seismic Programme and Spain Farmout

Excellent Seismic Results and Resource Certification for Uruguay

PRL Share Price versus Equal Weighted Index of 20 Company PRL Peer Group by Market Capitalisation

Resource Invest: Australian Oil & Gas Research, July 2015

Commence CoreholeProgramme

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…and relative to broader Market?

(Oil & Gas Market Cap: $100m – $1000m)

Petrel Energy

(Oil & Gas Market Cap: $10m - $100m)

Resource Invest: Australian Oil & Gas Research, June 2015

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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

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This raise sets up medium term funding position

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The road to success

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URUGUAY

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Seismic Upside…Gas & Oil

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Seismic has confirmed potential of resource scope and scale

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

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…more you look…more you find…

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Ongoing analysis and interpretation continues to identify significant upside

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

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Evidence of Gas?

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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

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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

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Uruguay…the journey thus far

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In a short space of time, oil generation has been confirmed and possible targets identified

Salto

Potential Resource Targets 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

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)

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SPAIN

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Spain…awaiting approvals

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Joint Venture is currently seeking a suspension of activities until approval is granted for the Tesorillo - 1 well

Salto

Acquisition Potential Resource Partner

Well site located 3km from 40” gas pipeline with excess capacity

Access to high priced European gas prices

Prospective Resource of up to 2.3TCF (Petrel 1TCF) certified by Netherland, Sewell & Associates, Inc. (NSAI)

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

Detailed formation evaluation indicates upwards of 500m of net pay

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Appendices

List of Appendices

1. Experienced Board and Management Team

2. Research

3. Simplified Fiscal Flowcharts

4. Comparison of Fiscal terms

5. Disclaimer

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1. Experienced Board and Management Team

Highly experienced management and technical team in place to achieve its strategic objectives

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 GastarExploration Inc (withcurrent 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.

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2. 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

Research

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3. Simplified Fiscal Flowcharts

No royalties in Spain

No royalty in Uruguay

35% for O&G companies in Spain

25%

60%40%

ANCAP has right to back in for 50% on a heads up basis.

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4. Comparison of Fiscal Terms

Spain is considered the world’s most competitive fiscal regime

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5. DisclaimerImportant 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 inthis 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 includecommodity 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, approvalsand 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.

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CONTACTOffice Location

Level 3, 10 Bridge Street

Sydney NSW 2000

P (02) 9254 9000

www.petrelenergy.com

23July 2015

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For personal use only - ASX · Investor Presentation. David Casey, Managing Director. July 2015. 1....

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