Company  Presenta.on  

October  2011  

Disclaimer  

The  informa,on  contained  in  this  presenta,on  (“Presenta.on”)  has  been  prepared  by  Orca  Energy  Limited  (“the  Company”)  and  is  being  delivered  for  informa,onal  purposes  only  to  a  limited  number  of  persons  to  assist  them  in  deciding  whether  or  not  they  have  an  interest  in  inves,ng  in  the  Company.    The  Presenta,on  has  not  been  independently  verified  and  the  informa,on  contained  within  is  subject  to  upda,ng,  comple,on,  revision,  verifica,on  and  further  amendment.    The  Presenta,on  does  not  purport  to  contain  all  informa,on  that  a  prospec,ve  investor  may  require.    While  the  informa,on  contained  herein  has  been  prepared  in  good  faith,  neither  the  Company  nor   its  shareholders,  directors,  officers,  agents,  employees,  or  advisors  give,  has  given  or  has  authority  to  give,  any  representa,ons  or  warran,es  (express  or   implied)  as  to,  or   in  rela,on  to,  the  accuracy,  reliability  or  completeness  of  the  informa,on  in  this  Presenta,on,  or  any  revision  thereof,  or  of  any  other  wriJen  or  oral  informa,on  made  or  to  be  made  available  to  any  interested  party  or  its  advisers  (all  such  informa,on  being  referred  to  as  “Informa.on”)  and  liability  therefore  is  expressly  disclaimed.    Accordingly,  neither  the  Company  nor  any  of  its  shareholders,  directors,  officers,  agents,  employees  or  advisers  take  any  responsibility  for,  or  will  accept  any  liability  whether  direct  or  indirect,  express  or  implied,  contractual,  tor,ous,  statutory  or  otherwise,  in  respect  of  the  accuracy  or  completeness  of  the  Informa,on  or  for  any  of  the  opinions  contained  herein  or  for  any  errors,  omissions  or  misstatements  or  for  any  loss,  howsoever  arising  from  the  use  of  this  Presenta,on.    In  furnishing  this  Presenta,on,  the  Company  does  not  undertake  or  agree  to  any  obliga,on  to  provide  the  recipient  with  access  to  any  addi,onal  informa,on  or  to  update  this  Presenta,on  or  to  correct  any  inaccuracies  in,  or  omissions  from,  this  Presenta,on  which  may  become  apparent.    Informa,on  contained   in   this  Presenta,on   is  confiden,al   informa,on  and  the  property  of   the  Company.     It   is  made  available  strictly   for   the  purposes   referred  to  above.    The  Presenta,on  and  any   further  confiden,al  informa,on  made  available  to  any  recipient  must  be  held  in  complete  confidence  and  documents  containing  such  informa,on  may  not  be  reproduced,  used  or  disclosed  without  the  prior  wriJen  consent  of  the  Company.    This  Presenta,on  shall  not  be  copied,  published,  reproduced  or  distributed  in  whole  or  in  part  at  any  ,me  without  the  prior  wriJen  consent  of  the  Company.    By  accep,ng  delivery  of  this  Presenta,on,  the  recipient  agrees  to  return  it  to  the  Company  at  the  request  of  the  Company.        This  Presenta,on  should  not  be  considered  as  the  giving  of  investment  advice  by  the  Company  or  any  of  its  shareholders,  directors,  officers,  agents,  employees  or  advisors.    Each  party  to  whom  this  Presenta,on  is  made  available  must  make  its  own  independent  assessment  of  the  Company  aOer  making  such  inves,ga,ons  and  taking  such  advice  as  may  be  deemed  necessary.    In  par,cular,  any  es,mates  or  projec,ons  or  opinions  contained  herein  necessarily  involve  significant  elements  of  subjec,ve  judgment,  analysis  and  assump,on  and  each  recipient  should  sa,sfy  itself  in  rela,on  to  such  maJers.    Neither  the  issue  of  this  Presenta,on  nor  any  part  of  its  contents  is  to  be  taken  as  any  form  of  commitment  on  the  part  of  the  Company  to  proceed  with  any  transac,on  and  the  right  is  reserved  to  terminate  any  discussions  or  nego,a,ons  with  any  prospec,ve  investors.  In  no  circumstances  will  the  Company  be  responsible  for  any  costs,  losses  or  expenses  incurred  in  connec,on  with  any  appraisal  or  inves,ga,on  of  the  Company.    The  informa,on  included  in  this  Presenta,on  that  relates  to  resources  was  prepared  by  Mr.  Mark  A.  PaJerson.  Mr.  PaJerson  has  over  30  years  of  oil  and  gas  experience  and  is  a  member  of  the  American  Associa,on  of  Petroleum  Geologists,  the  Society  of  Explora,on  Geophysicists,  and  the  Council  of  Energy  Advisors.  Es,mates  as  to  recoverable  hydrocarbon  volumes  contained  in  this  Presenta,on  are  based  upon  certain  assump,ons.  Accordingly,  actual  results  will  differ,  and  may  differ  significantly  and  materially,  from  those  presented.    Forward  Looking  Statements  Certain  statements  contained  in  this  presenta,on,  including  informa,on  as  to  the  future  financial  or  opera,ng  performance  of  Orca  Energy  Limited  and  its  projects,  are  forward  looking  statements.  Such  forward  looking  statements:  §  are  necessarily  based  upon  a  number  of  es,mates  and  assump,ons  that,  while  considered  reasonable  by  Orca  Energy  Limited,  are  inherently  subject  to  significant  technical,  business,  economic,  compe,,ve,  

poli,cal  and  social  uncertain,es  and  con,ngencies;  §  involve  known  and  unknown  risks  and  uncertain,es  that  could  cause  actual  events  or  results  to  differ  materially  from  es,mated  or  an,cipated  events  or  results  reflected  in  such  forward  looking  statements;  and  §  may  include,  among  other  things,  statements  regarding  targets,  es,mates  and  assump,ons  in  respect  of  produc,on  and  prices  opera,ng  costs  produc,on  prices,  and  results,  capital  expenditures,  reserves  and  

resources  and  an,cipated  flow  rates,  and  are  or  may  be  based  on  assump,ons  and  es,mates  related  to  future  technical,  economic,  market,  poli,cal,  social  and  other  condi,ons.    Orca  Energy  Limited  disclaims  any  intent  or  obliga,on  to  update  publicly  any  forward  looking  statements,  whether  as  a  result  of  new  informa,on,  future  events  or  results  or  otherwise.    The  words  “believe”,  “expect”,  “an,cipate”,  “indicate”,  “contemplate”,  “target”,  “plan”,  “intends”,  “con,nue”,  “budget”,  “es,mate”,  “may”,  “will”,  “schedule”  and  similar  expressions  iden,fy  forward  looking  statements.  All  forward  looking  statements  made  in  this  presenta,on  are  qualified  by  the  foregoing  cau,onary  statements.  Investors  are  cau,oned  that  forward  looking  statements  are  not  guarantees  of  future  performance  and  accordingly  investors  are  cau,oned  not  to  put  undue  reliance  on  forward  looking  statements  due  to  the  inherent  uncertainty  therein.  

2  

Capital  Structure  

ASX  Listed  –  ASX:  OGY    §  Previously  Monitor  Energy    

–  ASX:  MHL      

§  Current  Shares  on  Issue  –  9,100,671,434  

 §  Current  Share  Price  

–  0.2c    

§  Market  Capitalisa,on  –  $18m    

§  Cash  –  Circa  A$1m  

 

3  

Management  

Senior  Management    §  Greg    Bandy    –    Execu.ve    Director  

  Over   12   years   broking   &   corporate   experience   in   Australia.   Senior   Advisor   with   Patersons   Securi,es.    Execu,ve  Director  of  dual   listed  Red  Emperor  Resources   (ASX/AIM:  RMP)  and  responsible   for  managing  and  facilita,ng  the  acquisi,on  of  the  Seabiscuit  asset  in  the  US  

 §  Jason  Bontempo    –    Non-­‐Execu.ve    Director        

 Highly    experienced  ASX  director    with    over  10    years  experience  at    senior    board    level    in    Australia  and  the  UK.  Current   Execu,ve  Director  of   Interna,onal  Goldfields   Limited   (ASX:   IGS),  Glory  Resources   (ASX:  GLY)  and  Chameleon  Mining  NL  (ASX:  CHM)  

 §  Tony    King    –    Execu.ve    Consultant              

  Managing   Director   of   Max   Capital   Pty   Ltd.   Tony   has   in   excess   of   15   years   of   corporate   experience,  specifically  with   publically   listed  Australian   companies   and   capital  markets   and   responsible   for   advising  Monitor/Orca  on  the  Seabiscuit  acquisi,on  in  the  US  

 §  Mark  A.  PaRerson  –  Technical  Advisor  

 Mr.  PaJerson  has  over  30  years  of  oil  and  gas  experience  and  is  a  member  of  the  American  Associa,on  of  Petroleum  Geologists,   the   Society   of   Explora,on  Geophysicists,   and   the   Council   of   Energy   Advisors.   He  currently  advises  Range  Resources  Limited  (ASX:  RRS  ;  AIM:  RRL)  and  helped  introduce  and  facilitate  the  acquisi,on  of  the  Seabiscuit  asset  in  the  US.  Mark  resides  in  Dallas,  Texas  

 

4  

Overview  

§  Orca  Energy  have  a  20%   interest   in   the  highly  prospec,ve  “Seabiscuit  Project”,  acquired   in  August  2011  and  announced  to  the  market  on  12  July,  2011  

§  The  Seabiscuit  Project  covers  an  area  of  approx.  1,750  acres  and  has  the  poten,al  to  contain  up  to  1Tcf  and  10MMbo  

§  Drilling  expected  to  commence  in  Q1,  2012    §  Orca  also  holds  key  interests  in  two  highly  prospec,ve  Cooper  Basin  blocks,  one  of  which  has  

already  had  an  oil  discovery  (PEL  115)  

§  PEL  115  (OGY  –  42%)  -­‐  Oil  discovery  in  Dec  2009.  13m  gross  oil  column.  Range  of  volumes  of  oil  in  place  (7.99MMbo  -­‐  17.44MMbo)*  

 §  PEL  115  also  presents   significant  unconven,onal   shale  gas  poten,al  and   is  adjacent   to  PEL  

516   [100%   owned   by   JV   partner   Senex   Energy   (ASX:   SXY)   which   es,mates   over   100Tcf  poten,al  Gas-­‐in-­‐Place]  –  ASX  Presenta,on,  October  2011  

§  PEL  110  (OGY  –  20%)  -­‐  seismic  work  to  begin  in  2012                  *Independent  report  by  MBA  Petroleum  Consultants,  Brisbane  based  petroleum  consultancy  company    

5  

 Seabiscuit  Acquisi.on  &  Partners  

§  Orca  Energy  acquired  its  20%  interest  in  the  Seabiscuit  Project  through  the  acquisi,on  of  100%  of  the  issued  capital  of  Sugarbay  Investments  Pty  Ltd,  the  current  assignee  and  JV  par,cipant   in  the  project  

§  Sugarbay  was  assigned  their  interest  by  Crest  Resources,  a  prominent  oil  &  gas  operator  in  the  Gulf  Coast  and  responsible  for  introducing,  drilling  and  discovering  Range  Resources’  (ASX:  RRS)  current  producing  field  in  East  Texas,  North  Chapman  Ranch  

§  Orca’s  major  partner  and  operator  of  the  Seabiscuit  Project  will  be  Dan  A.  Hughes  Co.,  a  prominent,  independent  petroleum  explora,on  and  produc,on  company  with  a  43-­‐year  record  of  success   in  drilling,  discovering  and  producing  hydrocarbons  in  the  Gulf  Coast  

§  With  over  $400m  in  annual  revenue,  Dan  A.  Hughes  has  been  credited  with  discoveries   in  excess  530MMbo  &  1.6Tcf  

 §  Hughes  holds  a  50%  working  interest  in  the  Seabiscuit  Project.  

§  Other  US  oil  &  gas  companies  and  their  management  hold  the  remaining  30%  working  interest.    

6  

Seabiscuit  Loca.on  

Texas  Gulf  Coast    

Geological  Map  of  Texas  

7  

Seabiscuit  Loca.on  (cont.)  

§  The  Seabiscuit  Project  is  located  along  the  Texas  Gulf  Coast  in  Matagorda  County,  within  the  expanded  Frio  producing  trend  

§  The  prospect  is  on  trend  with  several  recent  discoveries  and  world  class  oil  and  gas  fields  

Regional  Produc,on  Map  

8  

Seabiscuit  Structure  

§  The  Seabiscuit  Project  is  a  large  structural  closure  with  an  area  of  approximately  1,750  acres  on  the  Gulf  Coast  

§  It   is   located   in   an   ideal   geological   sewng   on   trend   with   recently   drilled   wells   flowing   at  sustained  rates  of  20  million  cubic  feet  of  natural  gas  and  200  barrels  of  oil  per  day,  without  any  fracture  s,mula,on  

§  A  17,500  O.  well  has  been  proposed  to  test  the  Seabiscuit  trap  that  is  es,mated  to  contain  prospec,ve  resources  of  more  than  300  billion  cubic   feet  of  natural  gas   (Bcf)  and  3  million  barrels  of  oil  (MMbo)  or  condensate  (mid  case  scenario)  

§  Depending   on   reservoir   thickness   and   column,   Seabiscuit   could   contain   prospec,ve  resources  more   than   1   trillion   cubic   feet   of   natural   gas   (Tcf)   and   10  million   barrels   of   oil  (MMbo)  or  condensate  (high  case  scenario)  

 §  The   Seabiscuit   project   was   delineated   from   high   quality   3D   seismic   data,   the   oil   and   gas  

industry's  best  tool  for  imaging  hydrocarbon  traps      

9  

Seabiscuit  Structure  (cont.)  

§  3D  seismic  data  clearly  indicate  the  presence  of  a  large,  3-­‐way  dip  closure  at  the  Upper  Tex  Miss  objec,ve  

§  Up-­‐thrown  fault  traps  such  as  Seabiscuit  are  well  known  to  be  produc,ve  along  the  prolific  Texas  Gulf  Coast  

10  

Seabiscuit  Geological  Summary  

§  Nearby   wells   have   confirmed   hundreds   of   feet   of   high   quality   reservoir   sandstones,   and   the  proposed  well  is  expected  to  penetrate  the  objec,ve  forma,on  approximately  500  feet  higher  than  the  closest  well  which  is  4  km’s  away  and  produced  gas  and  condensate  from  the  very  top  of  the  objec,ve  sec,on  

 §  All  of  the  nearby  wells  have  encountered  thick,  high  quality  porous  sandstones,  indica,ng  that  the  

risk  of  poor  reservoir  rock  is  low  

§  Seismic   interpreta,on   indicates   that   the   reservoir   rocks   were   in   a   trapping   posi,on   in   ,me   to  receive  hydrocarbon  charge,  and  this  is  supported  by  other  discoveries  along  trend  

§  Once  formed,  the  Seabiscuit  trap  was  buried  beneath  an  es,mated  8500  O.  of  impermeable  shale,  which  formed  an  ideal  seal  to  keep  the  oil  and  gas  in  place  

§  The   targeted   objec,ves   at   Seabiscuit   are   the   same   age   as   those   found   produc,ve   in  Old  Ocean  Field   (4.9   Tcf)   approximately   53   km  northeast   of   the   prospect,   and  East   Bay   City   Field   (500  Bcf)  approximately  43  km  to  the  northeast.    The   latest  discovery  along  trend  at  the  Silverspoon  Field,  located   approximately   24   km   northeast   of   Seabiscuit,   came   on   line   at   over   18  MMcfd   and   has  produced  9.9  Bcf  and  100,000  barrels  of  oil  in  just  over  2  years  

11  

Seabiscuit  Seismic  

§  Seabiscuit  was  mapped  on  high  quality  3D  seismic  data,  processed  with  state-­‐of-­‐the-­‐art  Pres-­‐stack  ,me  migra,on  

§  NW-­‐SE  dip  lines  show  the  main  trapping  fault  and  posi,on  of  Seabiscuit  updip  to  produc,ve  wells  

3D  Seismic  Dip  Line  

12  

Seabiscuit  Seismic  (cont.)  

§  NE-­‐SW  strike  lines  show  the  cri,cal  dip  reversal  on  strike  necessary  for  a  large,  up-­‐thrown  fault  trap.  

§  3D  seismic  supports  the  interpreta,on  that  the  Seabiscuit  trap  was  in  place  well  before  hydrocarbon  migra,on  occurred.  

3D  Seismic  Strike  Line  

13  

Tex  Miss  Target:  World  Class  Reservoir  

§  As  evidenced  by  the  Devon  Harrington  #1  well  in  the  nearby  Silverspoon  Field  (type  well),  the  Tex  Miss  has  the  poten,al  for  massive  sand  development  with  excellent  porosity  and  permeability  

 §  The  Devon  well  produced  

approximately  9.9  Billion  Cubic  Feet  of  natural  gas  and  100,000  barrels  of  oil  in  its  first  25  months  of  produc,on  

14  

Drilling  Timetable  &  Fiscal  Terms  

§  The  first  well  is  expected  to  be  drilled  in  Q1,  2012  

§  Orca’s  share  of  drilling  costs  (OGY  -­‐  20%)  will  be  circa  $US1.8m  

§  NRI  –  72%  (Standard  for  US  oil  &  gas  plays  of  this  nature)    §  Mid  case  success  scenario  would  call  for  6-­‐10  development  wells  to  be  drilled  

§  NPV  on  “mid  case  scenario”  is  circa  $US360MM  (gross)  –  refer  appendix  on  page  20  

§  NPV  on  “high  case  scenario”  is  circa  $US1.8B  (gross)  –  refer  appendix  on  page  20  

§  Operator  es,mates  the  geological  chance  of  success  (CoS)  at  between  50%  -­‐  75%  

§  Independently  reviewed  by  RISC  Pty  Ltd  whose  geological  CoS  was  between  50%  -­‐  60%  

§  Both  es,mates  represent  a  very  low  risk  for  such  an  explora,on  prospect  

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Cooper  Basin  

§  PEL  115  (OGY  42%)  –  Oil  discovery  in  December  2009  (Fury-­‐1)  –  13m  gross  oil  column  with  an  interpreted  range  of  volumes  of  oil  in  place  from  a  

mean  7.99MMbo  to  a  highside  17.44MMbo*  –  Tes,ng  and  comple,on  delayed  due  to  heavy  rain  &  flooding  in  the  Cooper  Basin  –  JV  review  of  economics  currently  underway  –  Significant  unconven,onal  shale  gas  resource  poten,al  –  Adjacent  to  JV  partner  and  operator’s  100%  owned  block,  PEL  516  –  Senex  Energy  Limited  (ASX:  SXY)  is  drilling  up  to  3  wells  on  PEL  516  in  the  next  9  

months  and  es,mates  over  100Tcf  Gas-­‐in-­‐Place  resource  poten,al  (ASX  presenta,on  –  October  2011)  

§  PEL  110  (OGY  20%)  –  Highly  prospec,ve  explora,on  block  –  Seismic  work  planned  for  2012    

               *Independent  report  by  MBA  Petroleum  Consultants,  Brisbane  based  petroleum  consultancy  company  

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PEL  115  Loca.on  

PEL  115  –  Orca  Energy  42%    

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PEL  115  –  Large  Shale  Poten.al  

Coal Seam Methane & Shale Gas Potential §  Extensive gas zones have been identified in deep coal/shale units throughout the

Cooper Basin. §  Endorsed and promoted by major Cooper basin players: Santos, Drillsearch, Beach §  Senex have estimated over 100 Tcf Gas-in-Place resource potential §  PEL 115 contains previous drilling with intersections of coal seams. §  PEL 115 located in the heart of prospective CSM/Shale Gas acreage. Paleochannel “stranded” oil prospects §  Recent discoveries nearby – analogous to Growler, Snatcher. §  Previously ignored in Cooper Basin §  Large scale potential identified on PEL 115.

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Summary  

§  Orca  Energy  has  managed  to  secure  a  world  class  oil  &  gas  explora,on  project  with  “company  making”  upside  

§  The  Seabiscuit  JV  partners  and  operator  are  significant  players  in  the  Gulf  Coast,  USA  and  provide  the  exper,se  and  funding  required  to  achieve  success  

§  Drilling  is  imminent  with  work  having  already  begun  to  prepare  for  Q1,  2012  ac,vity  

§  The  Cooper  Basin  assets  and  specifically  PEL  115  provides  Orca  with  a  strategically  valuable  block  in  the  current  shale  gas  environment  

§  Strong  corporate  management  team  with  history  of  success  and  focused  on  delivering  results  

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Assump.ons  for  Seabiscuit  NPV’s  

§  Most  likely  Case    –  Assumes  a  10-­‐well  development  averaging  20  Bcf  &  200  Mbo  per  well  –  Average  well  cost  of  $9MM  –  Oil  price  of  $85  per  barrel  and  gas  price  of  $4.50  per  Mcf  –  Current  state  severance  tax  assump,ons  used  –  Opera,ng  expenditure  of  $5,000  per  month  –  Discount  rate  of  10%  –  NRI  of  72%  –  Gross  NPV  of  the  project  =  $360m      

§  Upside  Case    –  Assumes  a  30-­‐well  development  averaging  30Bcf  &  300  Mbo  per  well    –  Average  well  cost  of  $9MM  –  Oil  price  of  $85  per  barrel  and  gas  price  of  $4.50  per  Mcf  –  Current  state  severance  tax  assump,ons  used  –  Opera,ng  expenditure  of  $5,000  per  month  –  Discount  rate  of  10%  –  NRI  of  72%  –  Gross  NPV  of  the  project  =  $1.8b      It  should  be  noted  that  these  assump,ons  are  based  on  prospec,ve  resources  that  OGY  has  not  yet  delineated  and  are  subject  to  drilling  confirma,on    

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Orca  Energy  Limited    

ASX:  OGY    

35  Richardson  Street    |    West  Perth    WA    6005      

www.orcaenergy.com.au  info@orcaenergy.com.au    

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