For personal use only Petsec Energy Ltd (ASX: PSA / OTC ADR: PSJEY) - PDF document

PETSEC ENERGY LTD ACN 000 602 700 A A 22 May 2013 Petsec Energy Ltd 2013 AGM Presentation N N For personal use only Petsec Energy Ltd (ASX: PSA / OTC ADR: PSJEY) N N Attached is a copy of the presentation to be delivered today by Petsec Energy Ltd’s Chairman and Managing Director Mr. Terry Fern at the 2013 Annual General Meeting of members of Petsec Energy Ltd, held at the Museum of Sydney, corner Bridge and O O Phillip Streets, Sydney. Key Highlights U U  Marathon gas/condensate Field estimated reserves now in excess of 200 Bcfe.  Petsec Energy net daily production from the Company’s fields in the Gulf of N N Mexico and Gulf Coast, USA, increased from an average of 5.7 MMcfepd for the first nine months of 2012 year to 12 MMcfepd by end 2012. Current production is approximately 13.5 MMcfepd. C C  2013 full year production and revenues expected to be in excess of 3.0 Bcfe and US$12 million. E E  Net reserves (2P) at 31 December 2012 of 11.1 Bcfe; PV10 US$31.8 million, expected to increase from Marathon performance through this year.  Cash at 31 March 2013: US$25.9 million. M M  Shale Oil: JV with shale experts established, 3 major shale basin studies completed. , Leases acquired in Alberta, Canada, where one vertical science well E and one horizontal well drilled and hydraulically fractured for production. Rock E quality and oil potential has been determined. Completion quality now to be determined. N N  Gulf of Mexico: Preparations to drill high impact prospects in early 2014. A copy of the presentation will also be made available on the Company’s website, T T www.petsec.com.au. For further information, please contact: Paul Gahdmar Company Secretary & Group Financial Controller Petsec Energy Ltd Tel: 612 9247 4605 Fax: 612 9251 2410 Petsec Energy Ltd is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. It has operations in the shallow waters of the Gulf of Mexico and state waters of the Louisiana Gulf Coast region of the USA, and exploration activities in Shale Oil projects in Canada and the USA. Level 13, Gold Fields House, 1 Alfred Street, Sydney NSW 2000, Australia PO Box R204, Royal Exchange NSW 1225, Australia Telephone (61 2) 9247 4605 Facsimile (61 2) 9251 2410 Company information is available on: petsec.com.au

PETSEC ENERGY LTD ANNUAL For personal use only GENERAL MEETING 2013

Forward Looking Statement Disclaimer PETSEC ENERGY LTD ANNUAL GENERAL MEETING 2013 For personal use only This presentation contains predictions, estimates and other forward looking statements that are subject to risk factors associated with the oil and gas industry. Although the company believes that the expectations reflected in these statements are reasonable, it can give no assurance that its expectations and goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward looking statements include, but are not limited to, commodity prices for oil and gas, currency fluctuations, the need to develop and replace reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about reserve estimates, competition, loss of market, government regulation, economic and financial conditions in various countries, political risks, project delay or advancement, and approvals and cost estimates. All references to dollars in this presentation are to US currency, unless otherwise stated.

CONTENTS PETSEC ENERGY LTD ANNUAL GENERAL MEETING 2013 For personal use only  Petsec Energy Corporate Profile  Petsec Energy Oil & Gas Assets o Conventional: Production/Exploration o Unconventional: Shale Oil – Exploration  2012: Key Achievements o Operations o Financials  Strategy for Growth: 2011-2013 Plan o Progress of 2011 - 2013 Plan o Strategy for Growth 2013 - 2014  2013 Exploration & Development Programme

CORPORATE PROFILE PETSEC ENERGY LTD ANNUAL GENERAL MEETING 2013 For personal use only Petsec Energy is an independent oil and gas exploration and production company operating in the shallow waters of the Gulf of Mexico (“GoM”) and Gulf Coast region of the USA for conventional oil and gas, and in Canada and the USA for Shale Oil.  Conventional: Gas/Condensate; Oil Operated in USA Gulf of Mexico since 1991  Drilling success: 98 wells / 77 successful / 79% success  Discovered reserves: > 500 Bcfe   Producing Reserves (2P) 31.12.2012: 5 fields/ 11.1 Bcfe/ PV10 US$31.8 million. Exploration prospect inventory: 10 large, deep prospects, mapped potential 400 - 750 Bcfe.   2013 estimated production: > 3 Bcfe from existing producing fields  2010 – Refocused exploration to State waters Gulf Coast and onshore due to GoM moratorium 2010/11/12 – Major discovery, drilling and development of Marathon Field - 200 Bcfe+  2012 – Significant growth in oil and gas production – 5.7 MMcfepd to 12 MMcfepd.  2013 – Further development drilling and projected growth in production.   Unconventional: Shale Oil  2011 – Commenced studies & technical evaluation of exploratory shale oil projects USA & Canada  2012 – Continued studies and entered into 2 JVs in Canada  2012 – Canada: Acquired leases - net 6,434 acres. Drilled 2 science wells; 1 vertical and 1 horizontal  2012/2013 – Commenced extensive testing of wells; testing is ongoing

Capital Structure & Share Price PETSEC ENERGY LTD ANNUAL GENERAL Performance MEETING 2013 For personal use only Capital Structure (20 May 2013) Market Listing ASX: PSA, OTC ADR: PSJEY Shares/Options on issue 237.7 million / 0.9 million Market capitalisation A$33.3 million Cash at 31 Mar 2013 US$25.9 million Oil & gas reserves (2P) – 31.12.12 11.1 Bcfe PV10 reserves (2P) – 31.12.12 US$31.8 million PSA Share Price vs. S&P/ASX200 Energy Index (XEJ)

Board of Directors PETSEC ENERGY LTD ANNUAL GENERAL MEETING 2013 For personal use only Terry Fern, Chairman & CEO  Over 35 years experience in petroleum & minerals exploration, development and financing  Bachelor of Science Degree, University of Sydney David Mortimer AO, Non-Executive Director  Over 35 years experience in corporate finance  Bachelor of Economics Degree (First Class Honours), University of Sydney  Ex CEO of TNT Limited Group and Chairman of Leighton Holdings. Current Chairman of Australia Post Michael Harvey, Non-Executive Director  Over 30 years experience in the establishment and successful growth of E&P companies in South East Asia and the Gulf of Mexico, USA  Bachelor of Business Administration in Finance Degree, Texas A&M  Ex Shell, Huffington, CEO Gryphon Exploration Inc. Current Chairman and CEO of Stonegate Production Company, which was an early entrant to the Eagle Ford shale oil play in Texas.

Management Team PETSEC ENERGY LTD ANNUAL GENERAL MEETING 2013 For personal use only Ross Keogh President of Petsec Energy Inc. & Group Chief Financial Officer  Over 30 years of experience in the oil & gas industry  Bachelor of Economics Degree, Macquarie University  Ex Total Oil Company & Bridge Oil Limited Ron Krenzke Executive Vice President Exploration of Petsec Energy Inc.  Over 35 years of experience in the oil & gas industry  Bachelor of Science Degree, Texas A&M University  Ex Mobil, Amerada Hess, VP Exploration Gryphon Exploration Company. Paul Gahdmar Company Secretary & Group Financial Controller  Over 20 years of experience in the oil & gas industry  Master of Business and Technology Degree, University of New South Wales; Diploma in Investor Relations, Australasian Investor Relations Association  Ex Australian Oil and Gas Corporation

PETSEC OIL & GAS ASSETS PETSEC ENERGY LTD ANNUAL GENERAL Conventional: GoM & Gulf Coast MEETING 2013 For personal use only PSA: 5 oil / gas fields; 2P Reserves: 11.1 Bcfe (31.12.12); 10 exploration prospects 400-750 Bcfe mapped potential.  Prolific oil and gas producing region  1,094 fields / 34.5 billion barrels / 437 trillion cubic feet gas (Source: BOEMRE)  High industry drilling success – 53% successful; 41,892 wells drilled with 22,322 productive

PETSEC OIL & GAS ASSETS PETSEC ENERGY LTD ANNUAL GENERAL Conventional: GoM & Gulf Coast MEETING 2013 For personal use only Main Pass 270 Main Pass 18/19 Chandeleur 31/32 Marathon  Five Producing fields:  Net reserves (2P): 11.1 Bcfe (31/12/12) PV10: US$31.8m  Net daily production: ~ 13 MMcf gas & 80 bbls oil per day  2013 production (net): > 3.0 Bcfe Revenue > US$12m  GoM prospect inventory:  10 mapped prospects with gross potential: 400 to 750 Bcfe Individual gross target sizes: 20 – 200 Bcfe 

PETSEC OIL & GAS ASSETS PETSEC ENERGY LTD ANNUAL GENERAL Marathon Field MEETING 2013 For personal use only Major Gas/Condensate Discovery  Petsec share: WI 8%, NRI 5.84%  Discovered Oct 2010, Atchafalaya Bay, Louisiana  8 feet water depth; > 18,000 feet drill depth  Four wells drilled: 1 in 2010, 1 in 2011, 2 in 2012  Production facilities 2012/2013 to deliver capacity of ~ 200 MMcfpd  Current field production: > 150 MMcfpd + 550 bopd  5 th well spud May 2013 Marathon rig & production facilities  In-house estimated reserves (2P): > 200 Bcfe (PSA share: >12 Bcfe)