CORPORATE PRESENTATION 2 SNAPSHOT BACKGROUND STRATEGY A - PowerPoint PPT Presentation

2013 AGM CORPORATE PRESENTATION

2 SNAPSHOT BACKGROUND STRATEGY  A profitable E&P business, focused  Continue to deliver revenue from on the exploitation of existing discoveries underdeveloped discoveries in the  Cash flow to support business prolific Dnieper-Donets basin in development activity Ukraine  Identify advanced pre-  Sales from Gas and Condensate in development or producing assets, FY2013 totalled AU$14.2m primarily in Former Soviet Union  100% owned gas plant – increased  Participation in the Myanmar revenue and earnings security offshore bid round.  AU$2.3m cash balance at end  Further assessment of owned assets FY2013 – no debt • Potential partnerships  Incentivised, focussed, experienced management team – local • Farm out activity knowledge CORPORATE PRESENTATION November 2013

3 MANAGEMENT  Highly experienced management team with a strong profile in Ukraine NON-EXECUTIVE NON-EXECUTIVE NON-EXECUTIVE EXECUTIVE CHAIRMAN CEO & MD DIRECTOR DIRECTOR DIRECTOR Glenn Featherby Richard Reavley Bill Foster Lord Risby Graham Lyon - Highly experienced in - Experienced manager - More than 40 years’ - 20 years’ financial - 30 years’ international corporate advisory of European oil and gas experience services experience oil & gas experience assets - Chartered accountant - Senior advisor to - Chairman of British - Extensive FSU - Former Director of Marubeni Corp Ukrainian Society experience - Chairman of dual listed Goldbelt Resources Ltd Forte Energy - Extensive FSU - Petroleum Engineer - Petroleum Engineer experience PRESIDENT UKRAINIAN CFO SUBSIDIARY - PRIMEGAS LLC Victor Eriksen Viktor Dmitriyev - 19 years FSU - Engineer with 30 years experience experience in the Ukraine - Fluent Russian Speaker - Co-founder CORPORATE PRESENTATION November 2013

4 UKRAINE Premier European Postcode Significant growth potential  Undeveloped discoveries SUPPLY est. 39 Tcf gas & 395 mmbl oil resources* •  Favourable commercial terms DEMAND  Strong product pricing $11.16 gross / mcf ($9.30 net) •  Hawkley’s local advantage Focused team with strong network • Highly experienced – proven ability • Incentivised • Wholly owned gas plant • Sector Snapshot  Dynamics in the European gas market  Improving operating environment for foreign companies  Growing availability of modern rigs  A real need to increase domestic production More modern operational techniques • Equipment importation process simplified • Recent entry of majors – Shell, Exxon, Chevron • * Source: Edison Investment Research CORPORATE PRESENTATION November 2013

5 ASSET OVERVIEW Operator and 100% owner of two production licences (Sorochynska & Stoliarovska) and an exploration licence (Chernetska) in Ukraine’s premier gas basin Sorochynska  Well 201 produced 1.35 Bcf gas and 33,870 Bbls condensate in FY2013  20 year production licence awarded April 2012  Wholly-owned gas plant acquired, refurbished and commissioned with 99.8% uptime Next Step:  Installation of gas compressor to maximise recovery from the field Stoliarovska  Acquired in March 2013 with 20 year production licence  Total unrisked prospective recoverable resource of 193 Bcf Next Step: Diverse portfolio of production,  Re-process existing 2D data & acquire further seismic data to identify optimal well locations – expected Q2 FY2014 appraisal & exploration opportunities Chernetska  Exploration licence with significant upside Substantial advanced exploration  5 year licence extension for exploration and pilot upside in all licences production Next Step:  Evaluation of data obtained in Chernetska-1 well CORPORATE PRESENTATION November 2013

6 DEVELOPMENTS IN FY13 Operational  Acquisition and upgrades of Eurocrimea gas plant for $2.5 million • 99.8% uptime in June quarter  Acquisition of 20 year production license, Stoliarovska • Ukrainian State Geological Department estimates prospective resources of (Russian category C3) 89.7Bcf Gas and 29.2million barrels of oil in Visean sandstones, further potential in the Serpuchovian  Production from Sorochynska-201 totalling 1.35 Bcf gas and 33,870 Bbls condensate • Average daily production of 3.7 mmscf gas and 94 Bbls of condensate  Testing of Sorochynska-202 • Determined to be uneconomic – plugged and abandoned after FY13 close  Five-year exploration extension at Chernetska  Identification of potential M&A targets • Focus on mature pre-development or producing assets Financial  Pre-tax gross profit of $7,150,000 Corporate  Appointment of Lord Richard Risby to the Board • Extensive experience in financial markets with institutions including Merrill Lynch and Lehman Brothers • Chairman of the British Ukrainian Society  Appointment of Graham Lyon to the Board • 30 years of experience in the oil and gas industry, including time with supermajors Chevron and Shell CORPORATE PRESENTATION November 2013

7 SOROCHYNSKA: OVERVIEW  Drilled successful #201 in 2010  #201 put into production in Feb 2011  Produced total of 4.76 Bcf and 153,570 Bbls condensate  20 year production licence awarded in 2012  March 2013 completed acquisition & commissioning of wholly owned gas plant  Gas plant achieved 99.8% uptime in Q4 B19 appraisal - development  Planned installation of gas compressor to increase recovery B18 U B18 L B19 L B22 from field CORPORATE PRESENTATION November 2013

8 SOROCHYNSKA GAS PLANT Major Milestone – Significant Cost Savings – Rapid Payback  Wholly owned by Hawkley – commissioned in March 2013  Total cost US$2.25m – payback expected in 11 months  Delivery of cost savings of US$9.10 per boe  Favourable logistics – 8km from Sorochynska SOROCHYNSKA GAS PLANT and 1km from trunk line  Currently handles all production from Sorochynska #201 following “ramp - up” period  Current capacity of 11 mmscfgpd  Scalable model with estimated upper limit of capacity at 90 mmscfgpd  Significant milestone demonstrating long term confidence in Sorochynska Licence CORPORATE PRESENTATION November 2013

9 STOLIAROVSKA LICENCE Diversifying Asset Portfolio  Acquired 100% for $2.6m – completed in March 2013  Operated with full title  20 year production licence  On trend with major producing fields & deposits  Excellent infrastructure, trunk line close by & gas plant ~4km from the licence  Relatively shallow targets - significantly reduces drilling costs and times  Area covered by 2003 vintage grid of 2D seismic data  Hawkley intends to reprocess and acquire additional seismic to identify optimal well locations CORPORATE PRESENTATION November 2013

10 STOLIAROVSKA LICENCE Production Licence with Significant Upside Potential  Total unrisked prospective recoverable resource of 193 Bcf gas  Ukrainian State Geological Department estimates prospective resources of (Russian category C3) 89.7 Bcf gas and 10.4 million barrels of oil in Visean sandstones  Three possible plays identified in Carboniferous sands Stratigraphic channel play 1. (Serpukhovian age) Fault closures on downthrown 2. side of normal faults Fault closure – below reverse 3. faults  Additional prospect identified in the Serpukhovian has the potential to contain 42 Bcf gas CORPORATE PRESENTATION November 2013

11 CHERNETSKA UPSIDE: B24/25 CARBONATES Multiple Hydrocarbon Bearing Horizons  1 st well on Chernetska Licence (Well #1) completed in May 2012  Inconclusive test results – further testing with workover rig possible Lak-2 flowed  B20 sandstone target at 2 MMCF/d encountered two thin sandstones with oil shows Lak-7 flowed  Gas shows from B24/25 & at 1.5 oil recovered from B26 MMCF/d CORPORATE PRESENTATION November 2013

12 GROWTH STRATEGY  Hawkley Board and Management have extensive experience in asset identification 1. LOCAL GROWTH and corporate transactions 2. FSU EXPANSION • Leverage recent technical • Strategic Russian partner top 3  Strategy to add low-cost appointments to increase efficiency investment bank - assets, equity, of operations in Ukraine production and operating debt finance • Continue to pursue production • Acquire pre-development and/or efficiencies to portfolio growth opportunities across asset RUSSIA production assets in Russia base • Development capital injection  Immediate focus on growth (equity/debt) UKRAINE opportunities in Ukraine and Former Soviet Union  Several high priority targets 3. DRILLING & OPERATIONS identified and under assessment 4. ACQUISITION / EVALUATION ACTIVITES • Ongoing evaluation of potential •  Reprocessing of 2D seismic data Aim to partner with large well- acquisitions, with a view to adding low following Stoliarovska licence cost production and boosting operating funded investors at project level acquisition efficiencies • Commence operations in Russia with debt arrangement.  Opportunities further afield also under consideration • Participation in Myanmar 2013 Offshore bid round • Partnership with Azimuth Ltd, experienced offshore explorer CORPORATE PRESENTATION November 2013