Petsec Energy Ltd Investor Presentation Resources Rising Stars - PowerPoint PPT Presentation

Petsec Energy Ltd Investor Presentation Resources Rising Stars Conference May 2017

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. To the maximum extent permitted by law, the company and its personnel:  disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions;  do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this presentation, or likelihood of fulfilment of any forward looking statement or any event or results expressed or implied in any forward looking statement; and  disclaim all responsibility and liability for these forward looking statements (including, without limitation, liability for negligence). Nothing contained in this presentation constitutes investment, legal, tax or other advice. The Information does not take into account the investment objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of this presentation should make its own assessment and take independent professional advice in relation to the information and any action taken on the basis of this presentation. The reserves assessment follows guidelines set forth by the Society of Petroleum Engineers – Petroleum Resource Management System (SPE-PRMS). The USA and Yemen reserve estimates provided within this presentation are based on information contained within the following releases to the ASX: Announcements on 24 February 2017; and the 2016 Annual Report. The Company confirms that it is not aware of any new information or data that materially affects the information included within the above releases, and that all the material assumptions and technical parameters underpinning the estimates therein continue to apply and have not materially changed.

Petsec Energy: Corporate Objective and Strategy 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 Louisiana, USA (offices Houston & Lafayette), and onshore in Yemen (offices Sanaa & Dubai-UAE). Corporate Objective To increase shareholder value through successful oil and gas exploration, development and production, and by oil and gas reserve acquisitions, thereby building Petsec Energy into a significant mid-tier oil and gas exploration and production company. Corporate Strategy To drill high impact exploration prospects, predominately for oil and develop those discoveries, and to acquire oil and gas reserves, developed/producing or undeveloped, in onshore leases which hold significant development, low risk exploitation and high exploration potential, that make a major positive impact on the value of Petsec Energy. The geographical focus is onshore and offshore Louisiana and Texas, USA , the Republic of Yemen, and the MENA region generally.

Petsec Energy: USA Operations USA  USA Net 2P reserves (1 January 2017): 3.9 MMboe 1 / NPV 10 US$25.7MM (Cawley, Gillespie & Associates) / Mystic Bayou - 1 well; Hummer - 1 well  Operated in USA Gulf of Mexico and Louisiana since 1991.  Drilling success: 109 wells / 81 successful / 74% success – net production > 214 Bcfe, US$555MM EBITDAX.  Active Projects: Mystic Bayou & Hummer (Main Pass 270/273/274) , both discovered 2015.  Mystic Bayou: 1 well producing, 3 further well locations;  Hummer: Discovery well production tested in Nov 2016 at flow rates >20 MMcfgpd + 400 BOPD, production due Sept 2017, 3 to 8 further well locations.  2017 Development - Hummer: Fabrication of production facilities, installation of platform deck, hook- up of pipelines to gas and oil sales pipelines. First production expected in late September 2017. 1 Calculated using deterministic method and conversion to BOE was calculated using ratio of six thousand cubic feet of natural gas to one barrel of oil

Petsec Energy: Yemen Operations YEMEN  Commenced operations 2014. Acquired 100% Block S-1 ( 2016) and Block 7 (2014-2016).  Damis (Block S-1) Production Licence (100% working interest / 82.5% participating interest): Acquired February 2016:  Holds five oil & gas discoveries – An Nagyah (developed/productive) and Osaylan, Harmel, An Naeem & Wadi Bayhan (undeveloped). An Nagyah Oilfield 2P reserves 1 (1 January 2017): 12.8 MMbbl oil gross / 5.6 MMbbl net (NPV 10  U$155.4MM).  The four undeveloped oil & gas fields hold resource potential 2 : ~ 35 MMbbl oil + 550 Bcf gas gross.  Block 7 (Al Barqa) 100% working interest (85% participating interest) 3 acquired 2014/2015/2016:  Al Meashar undeveloped oil discovery – 2 wells / target 11 MMbbl oil gross (9.3 MMbbl net) / > 50 MMbbl potential  Eight prospects / leads: target sizes range from 2 to 900 MMbbl oil gross 1 Source: DeGolyer and McNaughton Canada Limited 2 Source: Wood Mackenzie Asia Pacific Pty Ltd 3 The Company has agreements with Oil Search Limited (40% W.I.) and KUFPEC (25% W.I.) to acquire their respective interests in Block 7, and assume operatorship. The agreements are pending completion and are subject to customary approvals from the Government of Yemen and the Ministry of Oil and Minerals .

Petsec Energy: Corporate Structure & Share Price Capital Structure Market Listing ASX: PSA / OTC ADR: PSJEY Shares on issue 320.3 MM Successful Market cap’n at 23/5/17 @ 15.0 c/s ~ A$48 MM Hummer Production Test Cash at 31/3/17 US$10.2 MM US$15MM convertible note facility – 31/3/17 (available) US$10.0 MM Net oil & gas reserves (2P) as of 1/1/17 9.5 MMBoe NPV 10 reserves (2P) as of 1/1/17 US$180.7 MM or A$0.75/share Mystic Bayou Discovery Damis (Block S-1) Hummer Yemen Discovery Acquisition

Petsec Energy: USA Production / Development Mystic Bayou Field Hummer Development LAFAYETTE NEW ORLEANS ASF #4 Mystic Bayou Ouiski Bayou KEY: Producing Field VENICE Leases/Prospects “Hummer” - Main Pass Blks. 270,273,274

Petsec Energy: USA Production / Development Mystic Bayou Gas/Oil Field – Onshore Louisiana Mystic Bayou Gas / Oil Field – Onshore Louisiana  Petsec Energy: 25% W.I. (18.5% N.R.I.) – 1 producing well.  Discovered and brought into production in 2015.  Net 2P reserves as at 1 January 2017: 8.8 Bcf of gas + ~ 162.6 Mbbl (1.6 MMboe)  Currently producing at a gross rate of ~ 4.2 MMcfgpd and ~ 95 bcpd (1 well)  Net Revenue of US$1.2 MM – US$1.5 MM p.a.  3 additional development well locations

Petsec Energy: USA Production / Development Hummer Gas/Oil Field – Main Pass 270, 273, 274 Discovery: Nov 2015 / Commercial Production: Sep 2017  Petsec Energy: 12.5% working interest (10.24% net revenue interest)  Field discovered in Nov 2015. Platform installed. Well completed and production tested in Nov 2016.  Well tested > 20 MMcfgpd + 400 BOPD on 16/64th inch choke with an average flowing WHP of 9753 psi.  Net 2P reserves (1 January 2017): 9.2 Bcf of gas + 600 Mbbl of oil (2.2 MMboe); discovery well.  Commercial production late Q3 2017, well production > 20 MMcfgpd + 400 BOPD, Petsec net cash flow ~ US$2.5 million p.a. per well.  Field has 5 gas/oil reservoirs extending over 3 offshore leases (15,000 acres).  Potential reserves likely to exceed upper mapped target of 183 Bcf gas & 3.7 MMbbl oil. 3 – 8 additional well locations.  Appraisal and development drilling likely to commence late 2017/ early 2018 Main Pass 270 #3 Flow Test - November 18, 2016