Europa Oil & Gas (Holdings) plc Investor Presentation June 2011 1
Asset Base Presentation Structure – Strategy – Appraisal • France, Romania – Exploration • UK, Romania, New Ventures – Production • UK – Reserves and Resources 2
Strategy • European Focus • Concentrate Corporate Growth into: – Developing existing ‘company - making’ assets with up to 300mmboe upside contingent resources – Berenx and Voitinel – Exploring in two key oil plays in next 12 months – Carpathians and East Midlands – Exploration new ventures • New Venture Strategy – High impact plays in the European region: Atlantic Margin and Mediterranean • Existing Asset Strategy – Concentrate on higher impact parts of the portfolio – Work the UK as a sustainable business 3
Maturing existing Resources - Appraisal Company-making Reserves Potential – France • Berenx project in SW France could potentially hold up to 2TCF gas in-place (1.7TCF recoverable) • Reprocessed 3D volume shows the value of properly acquired and processed data • 3D seismic acquisition to pave way for appraisal well • Additional field re-development potential at Osmets – Romania • Voitinel gas discovery in Romania to be appraised in Q4 2011 • Upside to 415bcf in-place on-block 4
Maturing the Resource Numbers Berenx - Big gas project with company-making potential Main play is deep HPHT gas play west of 9TCF Lacq Tested in early 1970’s with the Berenx-1 and 2 wells – numerous gas shows, flowed dry gas on test Test did not access fracture permeabilities – a key to Lacq’s success New 3D survey extending Lacq Ouest coverage New well required to Approximately 60km 2 , € 2.4mm cost adequately test natural Acquisition Q4 2011 fracture flow potential Drilling HPHT well in 2012/13 Looking to farm-down for the well Gas in place up to 2TCF Development options: In discussions with (1.7TCF rec.) SOBEGI (planned successor to Total at Lacq) 5
Data improvement at Berenx Modern seismic techniques image the reservoir architecture Before After Thrusted anticline Structure almost clearly imaged on invisible on earlier new processing processing 6
Maturing the Resource Numbers Berenx project timelines with key events 2011 2012 2013 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Licence Renewal 3D Seismic planning 3D Seismic Acquisition 3D Interpetation Initial Well Planning Long Lead Items Site Construction Farmout Drilling Berenx-3 Testing and Interpretation Key Milestones/RNS events 7
Maturing the Resource Numbers Voitinel trend - Initial low risk appraisal to prove minimum gas-in-place for development Upside contingent resources in trend on-block of 415bcf in- 2 km place (290bcf recoverable) Voit-1 Voit-2 proposed Voitinel-1 flowed 3mmscfpd Voitinel-2 planned for Q4 2011 Will prove up core gas-in-place of c.35bcf This will allow first phase development to take place Mapped horizon: with pilot production (2-3 Top Badenian Anhydrite wells, tied back 15km) and first gas estimated in late 2012* Net Interest 28.75% 8 * Subject to conclusions of JV commercial sub-committee
Exploration Assets Summary – UK – Wressle Prospect to receive 3D seismic coverage ahead of finalising a drilling location – Proposed agreement to participate in Broughton Prospect, situated between Wressle and Crosby Warren – Holmwood Prospect – expected to appeal planning decision – Romania – Voitinel trend exploration well on Solca Prospect in early 2012 – Oil play exploration planned over the next 18 months – New Ventures – 2 applications in Atlantic Frontier Play have been submitted – UK 14 th Onshore Licensing Round opportunity 9
Quantifying Portfolio Upside • Exploration UK • Total identified reserve potential of up to 17 mmbo net • Anticipated discovery sizes will benefit fully from Supplementary Charge relief • Tax efficiencies due to existing UK production revenues Romania • 2011 Drilling up to 30mmbo net prospective resources at Barchiz • Romanian Oil Play upside could be significant – 150-300mmbo in leads identified so far in Cuejdiu Licence • Work progressing to push next phase of exploration in 2012 10
Quantifying Portfolio Upside UK 2012 Exploration Drilling in Core Area HUMBER BASIN Europa Egdon Crosby Warren Field 0.4mmbo rem. 2P Europa Wressle Prospect 7mmbo gross hi PR Wressle Prospect Area 3D seismic acquisition late 2011 Plan to acquire joint 3D seismic survey with Potential Drilling in 2012 50% WI Egdon Group later in 2011 11
Quantifying Portfolio Upside Additional Core Area Venture HUMBER BASIN Europa Broughton Prospect 8.9mmbo gross hi PR Egdon Crosby Warren Field 0.4mmbo rem. 2P Europa Wressle Prospect 7mmbo gross hi PR Agreement in principle reached to cross- assign interests with Egdon Group Resulting in 33% WI for Europa in both Wressle Prospect and Broughton Discovery Reduces play risk for both groups 12
Quantifying Portfolio Upside Barchiz-1 Exploration Well Deepening Barchiz-1 drilled in late 2010 Oligocene oil zone encountered shallow oil-bearing BARCHIZ-1 Oligocene sands similar to that in the Geamana Field to the south Recovered modest amounts of oil on test Poor cement bond prevented drilling beyond 1450m Structure untested at depth could be Well failed to reach lower structure similar to the repeat section of Requires deepening to reservoir seen in nearby well PN-223 test repeat section of Oligocene oil zone Consequently, the prospect remains Original well cost € 2.9mm Main prospect – up effectively untested – plan to drill late to 30mmbo – Estimated deepening cost € 1.26mm remains untested 2011* 13 * Subject to NAMR approvals
Quantifying Portfolio Upside Romania 2011-12 Exploration Activity CARPATHIAN OIL BASIN VOITINEL-SOLCA GAS PLAY Solca well to the south of Voitinel drilling Q1/2012 to explore the undrilled fairway between Voitinel and Paltinu Discoveries Contingent on result of Voitinel-2 well OIL PLAY Brodina (28.75% WI) and Cuejdiu (17.5% WI) Seismic acquisition programmes 2011 Potential drilling on Cuejdiu leads 2012 14 *subject to NAMR approvals
Building the Revenue Stream • Production – East Midlands remains core cash-generating asset • May11 revenue $760,000 • Drilling at West Firsby Field has lifted total UK production to 250bopd • Crosby Warren, with its relatively high oil cut, is a clear candidate for re-fraccing to boost production 300 Further near-term upside: Group Production last 6 months 250 Planned frac at Crosby Warren Field expected to add further 200 50-150bopd from August 150 100 50 0 12/2010 01/2011 02/2011 03/2011 04/2011 05/2011 06/2011 15
Reserves and Resources Estimates Million Barrels of oil equivalent 1P/1C/Lo 2P/2C/Med 3P/3C/Hi Total Reserves 1.2 2.0 2.5 Total Contingent Resources 60 173 314 Total Unrisked Prospective Resources 14 32 52 Total Risked Prospective Resources 4 10 17 Of which 28mmboe are drillable in next 12 months And 170mmboe in the following 12 months 16
Newsflow Firm Contingent 2011 2012 2013 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Appraisal Berenx 3D acquisition and interpretation Berenx -3 well Voitinel-2 well Voitinel-3 well Voitinel Pilot Development Exploration Wressle Area 3D Acquisition Wressle-1 well Barchiz-1 well deepening Cuejdiu 2D Seismic Acquisition Brodina 2D Seismic Acquisition Cuejdiu well Production CW-1 frac stimulation West Firsby water shutoff treatment 17
Summary • Concentrate Corporate Growth into three areas: – Developing existing ‘company - making’ assets with up to 300mmboe upside potential – Berenx, Voitinel – Exploring in two key oil plays in next 12 months – Carpathians and East Midlands – High impact exploration new ventures • Where we expect to be in 24 months time: – Having drilled up to 3 exploration wells with 48 mmboe of high case prospective resources – Drilled up to 2 Voitinel appraisal wells and have a pilot development in progress – Drilled or drilling ultra-high impact Berenx-3 appraisal well – Have a strong exploration conveyor belt of prospects going forward 18
Thank You Europa Oil & Gas (Holdings) plc Investor Presentation June 2011 19
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