CORPORATE PRESENTATION March 2015 Energy Resources Inc. - PowerPoint PPT Presentation

CORPORATE PRESENTATION March 2015 Energy Resources Inc.

Disclaimer generally means, for the purposes of reserve classification, that it is likely that 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 the actual remaining quantities recovered will exceed the estimated proved geological, geophysical and engineering data. A high degree of certainty to be economically and technically successful in the reservoir either by pilot 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 proved or probable reserves which means for purposes of reserves assigned for enhanced recovery processes which have been demonstrated testing or by analogy to installed projects in analogous reservoirs. are less complete and less conclusive than the data used in estimates of recovery; reserves that require infill drilling and reserves from an enhanced 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 process which has yet to be established and pilot tested but appears reserves that depend on successful work-over or mechanical changes for Probable Reserves: Probable reserves are quantities of recoverable 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, hydrocarbons estimated on the basis of engineering and geological data that probable reserves. Possible reserves are less certain to be recovered than hydrocarbons estimated on the basis of engineering and geological data that This presentation includes certain forward looking statements with respect to which could cause the Company’s actual results and developments to differ 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 reserves and resources are classified in line with NI 51-101 regulations and 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, the 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 advice should consult an independent financial adviser.All estimates of Canadian Oil & Gas Evaluation Handbook standards. All estimates are from Possible Reserves: Possible reserves are quantities of recoverable revenue for all properties, due to the effects of aggregation. 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 Reserves: Reserves are volumes of hydrocarbons and associated not reflect the same confidence level as estimates of reserves and future net st 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 Petrenel Report having an effective date of 31 December 2013. 2

Share Structure 615 OER Information as at 09 March 2015 Capital Market Overview M $ M M $ $ 1,348 733 Net Debt Market Capitalization Enterprise Value 8,506,666 344,673,441 2.29/0.75 1.06 3

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 OML 62 OML 122 2% OML 134 1% OML 13 8% 37% OML 56 OML 131 16% OML 61 16% OML 145 5% OML 60 2% 1% OML 63 Production by Product (boepd) 547.3 MMboe 230.6 boepd 53,256 1% OML 13 53% OML 125 Gas Sales 7% NGL 40% Condensate Oil & 1% 12% 2C Resources (MMboe) All reserves & resources estimates are classified in line with NI 51-101 regulations and Canadian Oil & Gas Evaluation Handbook standards OML 62 9% OML 62 66% OML 61 boepd 53,256 1% 6% 15% OML 63 Production by OML 6 OER Average Net Production as at Feb 28, 2015 for OML 60-63 and as at Mar 03 for OML 125, OML 56 and OML 13 All estimates are from Independent Reserves Evaluator Report dated 31 December 2013 st OML 60 OML 90 16% 3% OML 60 5% OML 125 5% OML 56 0.4% OML 13 OML125 0.3% 5% OML 56 58% OML 61 10% OML 63 2P Reserves (MMboe) MMboe

Capital Structure 48% US$ MM Enterprise Value 1,348 Debt 52% Market Capitalization US$ + 8.5% Senior Corporate Facility LIBOR + 9.5% 6 Year Tenor Oando PLC Convertible Loan Facility 7 5.5 Year Tenor RBL Facility LIBOR Assumes closing share price of US$0.92 as at 10 Mar, 2015 Public All information in US Dollars OER Market Capitalisation 733 Oando PLC 93.8% (746.1m shares held) 6.2% 1 Year Tenor (49.3m shares) US$ MM Debt 615 Senior Structured Facility LIBOR + 5% MM

Information dated as at 10 Mar 2015 30 2.07 3.33 1.73 0 5 10 15 20 25 35 4.08 40 45 Tullow Afren Seplat Eland Heritage Mart OER 0 5 10 15 1.86 9.94 25 31.08 9.94 4.49 3.71 4.63 7.80 5.84 86.07 44.73 132.26 44.65 4.81 37.59 29.96 13.31 9.66 3.69 3.59 5.01 0.54 3.17 20 30 Enterprise Value calculated as Market Capitalization plus Net Debt 160 Enterprise Value / 2P (US$/boe) 0 20 40 60 80 100 120 140 180 OER Tullow Seplat Eland Heritage Mart Afren OER Enterprise Value / Daily Production (US$/boepd) 8 OER Peer Valuation Last reported production and reserves numbers used for Peers Market Capitalization / 2P (US$/boe) Afren 35 5 40 45 Tullow Eland Heritage Mart Seplat Afren OER Enterprise Value / 2P+2C (US$/boe) 0 10 Seplat 15 20 25 30 35 40 45 Tullow Eland Heritage Mart 19.77