For personal use only N N Petsec Energy Ltd 2015 AGM Presentation - PDF document

PETSEC ENERGY LTD ACN 000 602 700 A A 14 May 2015 N N For personal use only N N Petsec Energy Ltd 2015 AGM Presentation O O Petsec Energy Ltd (ASX: PSA / OTC ADR: PSJEY) U U 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 2015 Annual General Meeting (“AGM”) of members of Petsec Energy Ltd, held at the Museum of Sydney, corner N N Bridge and Phillip Streets, Sydney. A copy of the presentation will also be made available on the Company’s website, C www.petsec.com.au. C E E M M E For further information, please contact: E Paul Gahdmar N Company Secretary & Group Financial Controller N Petsec Energy Ltd Tel: 612 9247 4605 T Fax: 612 9251 2410 T 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

Annual General Meeting 2015 Petsec Energy Ltd For personal use only

For personal use only Forward Looking Statement Disclaimer 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. The reserves assessment follows guidelines set forth by the Society of Petroleum Engineers – Petroleum Resource Management System (SPE-PRMS). The estimates of USA oil and gas reserves provided within this presentation are based on the information contained within the Financial Statements given to the ASX on 24 February 2015 and reproduced in the 2014 Annual Report. The Company confirms that it is not aware of any new information or data that materially affects the information included within the Financial Statements and the Annual Report, and that all the material assumptions and technical parameters underpinning the estimates therein continue to apply and have not materially changed.

For personal use only Contents  Petsec Energy’s Corporate Objective and Strategy  Petsec Energy Corporate Profile Operations o Capital Structure o Board of Directors o USA & MENA Management o  Petsec Energy Oil & Gas Assets USA Production/Exploration – Onshore Louisiana and shallow waters of the Gulf of Mexico o MENA Operations – Block 7, Al Barqa Permit in the Republic of Yemen o  2014 Key Achievements Corporate o Operations – Production, Exploration, Acquisitions o Financials o  2015 Exploration & Development Programme USA – Onshore Louisiana and shallow waters of the Gulf of Mexico o Yemen – Block 7, Al Barqa Permit o

For personal use only Petsec Energy’s Corporate Objective and Strategy Petsec Energy’s corporate objective is to increase shareholder value through successful oil and gas exploration, development and production, and acquisitions, thereby building Petsec Energy into a significant mid-tier oil and gas exploration and production company, respected in the industry for its technical skills, timely and cost effective delivery of projects, and the integrity with which it conducts its business. The Company’s strategy is to maximise the value of its current reserves, pursue participation in high quality, high impact exploration drilling opportunities in the Gulf Coast onshore and bay areas of Texas and Louisiana, USA, and to acquire onshore leases, with undeveloped or producing oil and gas reserves, which hold significant development, low risk exploitation and high exploration potential. The geographical focus is predominantly in the USA in Texas and Louisiana, and increasingly in the Republic of Yemen.

Corporate Profile Petsec Energy For personal use only

For personal use only Petsec Energy Corporate Profile – Operations Petsec Energy is an independent oil and gas exploration and production company listed on the Australian Stock Exchange with operations in the shallow waters of the Gulf of Mexico and onshore Texas and Louisiana, USA, and onshore in the Republic of Yemen. USA Operated in USA Gulf of Mexico and Louisiana since 1991 o Drilling success: 102 wells / 79 successful / 77% success – net production 213.8 Bcfe, US$568 MM o EBITDAX Current producing 2P Reserves as of 1/1/15: 1.9 Bcfe* / PV10 US$1.4MM o Net cash @ 31/3/15: US$28.9 MM o Remaining 2015 drilling programme: Six wells; US$7.8 MM net DHC; success case net development o cost US$21.1 MM; targeting 1.76 MMbo & 14.5 Bcfg net to Petsec Five wells to be spud/drilled May/June 2015 o Yemen Acquired 63.75% P.I. interest and operatorship in Block 7 – subject to approvals o Undeveloped Al Meashar oil discovery (target 11 MMbo gross, 7 MMbo net @ 63.75%) o High potential oil prospects in large lease area (5000 sq. km) o Eight prospects / leads: target sizes 2 to 900 MMbo gross o * Calculated using deterministic method and conversion to Bcfe was calculated using ratio of six thousand cubic feet of natural gas to one barrel of oil

For personal use only Petsec Energy Corporate Profile – Capital Structure Capital Structure Capital Structure at 21 April 2015 Market Listing ASX: PSA / OTC ADR: PSJEY Shares / Options on issue 231.2 MM / 30,000 Market capitalisation at 8/5/15 A$26.7 MM Cash at 31/3/15 US$28.9 MM Net oil & gas reserves (2P) as of 1/1/15 1.9 Bcfe PV10 reserves (2P) as of 1/1/15 US$1.4 MM PSA Share Price vs. S&P/ASX200 Energy Index (XEJ)

For personal use only Petsec Energy Corporate Profile – Board of Directors David Mortimer AO, Terry Fern, Non-Executive Director Chairman &  Over 40 years experience in corporate finance Managing Director  Bachelor of Economics Degree (First Class  Over 35 years experience Honours), University of Sydney in petroleum & minerals exploration, development  Ex CEO of TNT Limited Group and Chairman of and financing Leighton Holdings, Chairman of Australia Post  Bachelor of Science  Current Chairman of Opera Australia, Crescent Degree, University of Capital Partners Limited, Buildcorp Advisory Sydney Board, University of Sydney Senate Investment and Commercialisation Committee, and MySale Group PLC  Current Director of Clayton Utz Foundation, the Grant Samuel Advisory Board and is on the Alan Baden, CEDA’s Board of Governors Non-Executive Director Mark Lober,  Over 35 years experience in Non-Executive Director the U.S. oil & gas industry  Over 35 years experience in the U.S. oil &  Juris Doctor Degree from gas industry Case Western Reserve  Master of Science (Geophysics) Degree University, and a Bachelor of from the Boston College, and a Bachelor of Science (Economics) Degree Science (Geology) Degree from the State from the University of of New York at Brockport Pennsylvania  Ex Senior Geophysicist, Exploration  Ex Partner at Vinson & Elkins Manager and New Ventures Manager with  Current Senior Commercial a number of U.S. entities including Amoco Lawyer with Thompson & Production Company, Standard Oil Knight Production Company, Amerada Hess Corporation.

For personal use only Petsec Energy Corporate Profile – USA Management Dick Smith Ross Keogh Ron Krenzke Chief Executive Officer of President of Petsec Energy Inc. & Group Executive Vice President Exploration of Chief Financial Officer Petsec Energy Inc . Petsec Energy Inc.   Over 30 years of experience in the oil & gas 40 years of experience in the oil & gas industry  Over 35 years experience in the U.S. industry  and international oil & gas industry Bachelor of Science Degree (Geophysics),  Bachelor of Economics Degree, Macquarie Texas A&M University  Master of Science (Geology) from the University  University of Tennessee, Knoxville, Ex Mobil, Amerada Hess, VP Exploration  Tennessee and a Bachelor of Science Ex Total Oil Company & Bridge Oil Limited Gryphon Exploration Company (Geology) from SUNY at Brockport, Brockport, New York  Ex Amerada Hess Corporation, Amoco Production Company, Pedernales Production LLC, Houston Energy LLC, Prime Natural Resources (formerly F-W Oil Interests, Inc.), and F-W Oil Exploration LLC/F-W Oil Trinidad LLC