Investor Presentation September 2011 Disclaimer This presentation - PowerPoint PPT Presentation

Investor Presentation September 2011

Disclaimer This presentation contains certain “forward - looking statements.” All statements, other than statements of historical fact, that address activities, events or developments that Hawkley Oil and Gas Ltd believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward- looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend” and statements that an event or result “may”, “will”, “can”, “should”, “could”, or “might” occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Hawkley Oil and Gas Ltd based on information currently available to Hawkley Oil and Gas Ltd. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Hawkley Oil and Gas Ltd with securities regulatory authorities, that may cause the actual results of Hawkley Oil and Gas Ltd to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Hawkley Oil and Gas Ltd. Hawkley Oil and Gas Ltd expressly disclaims any obligation to update or revise any such forward-looking statements. Not for distribution to United States newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available. Hawkley Oil & Gas 2

Why Ukraine?  Undeveloped discoveries  Minimal competition  Favourable terms  Market prices Favourable commercial terms Contractor receives 100% of sales revenue directly ‘Contractor Take’ is high relative to many PSA’s Prices not fixed by government Minimal competition Hawkley was the only bidder for its two licences Hawkley Oil & Gas 3

Hawkley Key Elements of Business Model  Assets in a prolific hydrocarbon basin  Appraisal of undeveloped discoveries  100% ownership of assets  Operating subsidiary with local expertise Focus on generating revenue Hawkley’s first well is generating revenue Appraisal well drilling in second licence Production infill well to spud in Nov11 Hawkley Oil & Gas 4

Sorochynska Appraisal Success (well 201) Legacy wells 469 and 110 produced gas condensate from the B18 reservoir 110 produced 3 BCF (1988-91) at no more than 4 MMCF/d (Shut-in after water invaded from higher zone) Hawkley’s well 201 produced at >7 MMCF/d at startup Horizontal Scale Hawkley Oil & Gas 5

Presentation Outline Top Team Milestones Capital Structure & Share Price History Snapshot Production & Sales Assets Reserves & Upside Forward Programme Strategic Development Overview Hawkley Oil & Gas 6

Top Team Hawkley Oil & Gas 7

Milestones Company formed Jun 2006 Licences acquired Jul 2007 Drilling began in Sorochynska Licence Nov 2009 ASX Listing via RTO raises $5.5 million Jun 2010 2.75 million shares @ $0.20ea Production & first revenue Feb 2011 Drilling began in Chernetska Licence May 2011 Placement raised $15.1 million Jun 2011 40.86 million shares @ $0.37ea Hawkley Oil & Gas 8

Capital Structure & Share Price History Market Sorochynska-1 Feb downturn announcements & testing 0.24 Market Downturn % OF In August, the AIM Oil and Gas Index HOLDER NAME ISSUED SHARES was down 44% on 7 th February ( Edison ) Avenger Inv Holdings Ltd 9.1 Acetone Ltd 8.9 Paul Morgan 6.4 Lextrop Wealth Inc 6.3 Ballure Trading Ltd 4.3 Citicorp Nom PL 4.2 HSBC Custody Nom Aust Ltd 3.6 Ogden Grp PL 1.7 Ticker Symbol Mainplay PL 1.7 Dove Nom Ltd 1.5 HOG Hawkley Oil & Gas 9

Snapshot Producing 1,300 BOE/d PRODUCTION  6.8 MMCF/d gas, plus  230 bbl/d condensate Limitations at the processing plant Hawkley to build own plant in 2012 SALES September  US$11.2/MCF gas FINANCIALS average  Revenue running at >US$25 million/yr  US$90/bbl condensate  Operating cashflow margin c50% Production taxes, variable  Aus$13 million cash reserves  No debt 2011 and 2012 programme funded Figures are net of 20% VAT Hawkley Oil & Gas 10

Production & Sales Hawkley Oil & Gas 11

Sales Hawkley Oil & Gas 12

Processing Facilities  Current arrangement delivered early revenue  But cost penalty and design limitations Alternative solution needed for growth and efficiency: A new plant dedicated to Hawkley production Plast Gas Handling Plant Estimating Q3 2012 commissioning Hawkley Oil & Gas 13

Assets Exploration & Pilot Production Licences SOROCHYNSKA CHERNETSKA Licence Interest 100% 100% Acquired August 2007 July 2007 Term 5 Years 5 Years Licence Area 105km 2 52km 2 Historical Wells Drilled 9 6 Hawkley Wells Drilled 1 1 (drilling) After 5yrs, a licence can be renewed for 5yrs, or converted to a 20yr production licence Hawkley Oil & Gas 14

Asset Diversity Assets have exploration, appraisal and production diversity TIME-MATURITY Exploration & Appraisal New Sorochynska Ventures B24/25 B18 B20 Chernetska B24/25 Work in B21-22 Progress… B26 B17 B19 Development & Production B20 Non-Operated Business ‘B’ reservoir plays : 6 billion boe reserves in 160 fields 40% of basins’ reserves (85% as gas condensate) Hawkley Oil & Gas 15

Chernetska Appraisal Programme Chernetska-1 Well  Drilling ahead @2,807m (Sept 18)  B20 reservoir target prognosed at 4,360m  Expecting to reach B20 mid-October Chernetska-1  Deeper targets: B21/22, B24/25, B26 2011 2012 Mobilisation or ? Drilling Testing & Comp. Connection Production ? ? B20 oil Gas Hawkley Oil & Gas 16

Reserves & Upside 66% Chernetska 78% Gas (130bcf) By Licence By Type 16% Condensate 34% Sorochynska 06% Oil By Category By Reservoir 28 MMboe unrisked Source: RISC (Hawkley Prospectus, 2010) Hawkley Oil & Gas 17

Chernetska Upside Potential: B24/25 carbonates Lak-2 flowed Chernetska-1 at 2 MMCF/d target Lak-7 flowed at 1.5 MMCF/d Hawkley Oil & Gas 18

Forward Programme In progress Update reserves assessment (CPR) TD the Chernetska-1 well Next 12 months  Drill and complete Sorochynska infill well  Design & build Sorochynska gas plant  Convert Sorochynska to Production Licence Appraise B24/25 Diversify Hawkley Oil & Gas 19

Strategic Development: Intent Hawkley Oil & Gas 20

Overview Good foundation established: A platform to create a sustainable business in Ukraine  Revenue achieved from first well drilled  2011 and 2012 work programme fully funded  New wells could take production to 3,000 BOE/d and gross revenue to $50-$100 million/yr  Exploration upside in both licences Strategic aim, opportunity and capability to diversify and develop into a mid-cap multinational E&P company Hawkley Oil & Gas 21

Contact Information Australia 45 Ventnor Avenue West Perth, WA Australia Tel +61 8 9429 8803 Fax +61 8 9429 8800 Email theal@hawkleyoilandgas.com Ukraine Boulevard Tarassa Shevchenka 35 Kyiv 01032 Ukraine Tel +380445697418 Fax +380445697416 Email office@primegas.com.ua www.hawkleyoilandgas.com Hawkley Oil & Gas