CORPORATE PRESENTATION May 2015 Energy Resources Inc.
Disclaimer the actual remaining quantities recovered will exceed the estimated proved assigned for enhanced recovery processes which have been demonstrated reservoirs are known to be economically productive. Proved reserves are also may be assigned on the basis of log and/or core analysis if analogous actual production or formation testing. In certain instances proved reserves be recovered. In general reserves are considered proved only if supported by produced, i.e. there is only a 10% probability that less than these reserves will reserves and there is a 90% confidence that at least these reserves will be generally means, for the purposes of reserve classification, that it is likely that testing or by analogy to installed projects in analogous reservoirs. geological, geophysical and engineering data. A high degree of certainty with a high degree of certainty on the basis of an analysis of drilling, Proved Reserves: Proved reserves are those reserves that can be estimated reasonable doubt as to its chance of success. an enhanced recovery scheme that is not in operation and where there is recovered. This category includes those reserves that may be recovered by recovered, i.e. there is a 90% probability that less than these reserves will be classification there is a 10% probability that more than these reserves will be to be economically and technically successful in the reservoir either by pilot Probable Reserves: Probable reserves are quantities of recoverable probable reserves. Possible reserves are less certain to be recovered than recovery process which has yet to be established and pilot tested but appears 2 shares or other securities. Energy Resources Inc (the “Company”) otherwise acquire or dispose of any Oando invitation to underwrite, subscribe for, or This presentation does not constitute an OER to have favorable conditions recovery; reserves that require infill drilling and reserves from an enhanced hydrocarbons estimated on the basis of engineering and geological data that reserves that depend on successful work-over or mechanical changes for mechanism develops than was assumed in estimating proved reserves; These include reserves that would be recoverable if a more efficient recovery than the Proved plus Probable Additional reserves will actually be recovered. purposes of reserves classification, that there is 50% probability that more are less certain to be recovered than proved reserves; which means, for the certainty required to classify the reserves are proved. Probable reserves are similar to those used for proved reserves but that lack, for various reasons, proved or probable reserves which means for purposes of reserves are less complete and less conclusive than the data used in estimates of This presentation includes certain forward looking statements with respect to which could cause the Company’s actual results and developments to differ advice should consult an independent financial adviser. All estimates of Past performance is no guide to future performance and persons needing other than is required by law. statements, whether as a result of new information, future events or otherwise, hereof. The Company will not publicly update or revise any forward looking this presentation are based on information known to the Company on the date Company’s annual report and other filings. All forward looking statements in materially from those forward looking statements are discussed in the expressed or implied. The significant risks related to the Company’s business Canadian Oil & Gas Evaluation Handbook standards. All estimates are from cause actual results and developments to differ materially from those very nature forward looking statements involve risk and uncertainty that could achieve production targets, and any revenue and profit guidance. By their launch dates for new projects, ability to successfully integrate acquisitions or revenues from projects, both current and under development, possible particular and without limitation, the statements regarding potential sales operations and certain plans and objectives of the Company including, in certain development projects, potential collaborative partnerships, results of reserves and resources are classified in line with NI 51-101 regulations and st hydrocarbons estimated on the basis of engineering and geological data that Reserves: Reserves are volumes of hydrocarbons and associated Possible Reserves: Possible reserves are quantities of recoverable conditions in the case of escalated price and inflated cost forecasts. regulatory authorities) or they may be reasonably anticipated economic constant price and un-inflated cost forecasts (as required by many financial economic conditions may be current economic conditions in the case of specified economic conditions and government regulations. Specified accumulations from a given date forward by established technology under substances estimated to be commercially recoverable from known revenue for all properties, due to the effects of aggregation. Independent Reserves Evaluator Report having an effective date of not reflect the same confidence level as estimates of reserves and future net The estimates of reserves and future net revenue for individual properties may does not represent a value equivalency at the wellhead. equivalency conversion method primarily applicable at the burner tip and bbl [or an McfGE conversion ratio of 1 bbl: 6 Mcf] is based on an energy misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 BOEs [or McfGEs, or other applicable units of equivalency] may be 31 December 2014.
Share Structure S/N Dec 21, 2012 July 31,2012 Conoco Phillips OER announces Nigerian Government approval of $1.65 billion Acquisition of OER Completes US$50 Million Private Placement and converts Loan to Equity EHGC Oando announces the execution of a Share Purchase Agreement for the sale of OER announces additional production capacity from Ebendo Field OER signs Agreements to Acquire Conoco Phillips Nigerian Assets for US$1.79bn Reverse take-over of Exile Resources Inc Date Event/Activity Dec 24, 2013 2 May-2015 2 Apr-2015 2 Mar-2015 2 Feb-2015 2 Jan-2015 2 Dec-2014 2 Nov-2014 2 Oct-2014 2 Sep-2014 2 Aug-2014 2 Jul-2014 May 17, 2013 Feb 27, 2014 2 May-2014 g k j i a b h k j i h May 01, 2015 Feb 27, 2014 Apr 09, 2015 Mar 09, 2015 Dec 05, 2014 July 30, 2014 Releases Q1, 2015 Results Increase in Reserves; Announces YE 2014 Results Production Commencement in Qua Iboe Completes Umugini Pipeline OER Completes Acquisition of Nigeria Upstream Business of Conoco Philips S/N Date Event/Activity 2 Jun-2014 2 Apr-2014 1,562 M 1.5 2 2.5 Share Trading History 3 OER Information as at 15 May 2015 Capital Market Overview M $ M 0.5 $ 545 $ 1,017 Net Debt Market Capitalization Enterprise Value 8,410,000 344,673,441 2.29/0.75 1.47 1 0 2 Mar-2014 2 Apr-2013 2 Feb-2014 2 Jan-2014 2 Dec-2013 2 Nov-2013 2 Oct-2013 2 Sep-2013 2 Aug-2013 2 Jul-2013 2 Jun-2013 2 May-2013 2 Mar-2013 c 30 Jan-2013 30 Dec-2012 30 Nov-2012 30 Oct-2012 30 Sep-2012 30 Aug-2012 30 Jul-2012 g f e d 796,049,213
Historical Context Ebendo production ramp up OER Formation of the largest indigenous oil and gas producer in Nigeria 4
Asset Portfolio Operator OML 56 - Ebendo Field OML 90 - Akepo Field OML 122 - Bilabri Field OML 134 OPL 321 & 323 NIGERIA OML 125 W.I. EQUATORIAL Asset ExxonMobil OER KNOC TBD OER 20% 100% CAMEROON GUINEA N/A OML 145 OER *OER is Technical Partner OML 13 - Qua Ibo Field OML 63 OML 61 OML 60 OML 131 EEZ Block 12 EEZ Block 5 GABON JOINT DEVELOPMENT ZONE SAO TOME & PRINCIPE - NIGERIA Exploration Phase Development Phase Production Phase & PRINCIPE SAO TOME 30% 100% OML 60 15% Energia ENI AGIP AGIP AGIP AGIP 42.75% 20% W.I. 20% 20% 20% OML 56 OML 125 OML 63 OML 62 OML 61 Asset Operator OML 145 OML 90* OML 131 OML 321& 323 EEZ 12 EEZ 5 Operator W.I. Asset Peak ENI Network E&P Sogenal 5% Oil, 12% Gas 15% 40% 40% OML 122* OML 134 OML 13* 5 OML 62
Production, Reserves & Resources OML125 OML 61 66% boepd OML 125 5% OML 60 16% 420.3 MMboe OML 56 2% OMLs 60-63 95% 2% OML 56 OML 13 1% OML 13 1% 2C Resources Oil & Condensate 37% NGL 7% Gas Sales 56% 53,731 5% 6% All reserves & resources estimates are classified in line with NI 51-101 regulations and Canadian Oil & Gas Evaluation Handbook standards MMboe st All estimates are from Independent Reserves Evaluator Report dated 31 December 2014 Average Net Production as at May 12, 2015 for OML 60-63 and May 13 for OML 56, OML 125 and OML 13 OER 6 2P Reserves 2C Resources Production OMLs 60-63 32% OML 145 28% 121.9 OML 131 OML 63 34% OML 13 0% OML 134 1% OML 122 0% OML 56 1% OML 125 0% 53,731 OML 62 1% boepd
Capital Structure 65% M Enterprise Value 1,562 Debt 35% Market Capitalization US$ 5.5 Year Tenor Senior Corporate Facility LIBOR + 9.5% 6 Year Tenor Oando PLC Convertible Loan Facility 7 US$ + 8.5% Assumes closing share price of US$1.41 as at 08 May 2015 Public All information in US Dollars OER Market Capitalisation 1,017 Oando PLC 93.8% 6.2% RBL Facility LIBOR US$ M Net Debt 545 Senior Structured Facility LIBOR + 5% 1 Year Tenor M
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