Sequa Petroleum Company overview Private & Confidential March - PowerPoint PPT Presentation

Sequa Petroleum Company overview Private & Confidential March 2016

Management team Jim Benjamin Peter Robin Jelte Luke Lee Haynes Storey Bosma MD Jacob MD MD Broekhuijsen MD CEO CFO (interim) Business Dev. COO Technical GC & Company Sec 20 years’ experience 26 years’ experience 22 years’ experience 26 years’ experience 33 years’ experience 35 years’ experience • Senior management • Senior management • Senior management • Senior management • Senior management • Senior management • Legal • Project development • Operations • Corporate governance • Business • Corporate • Petroleum engineering • Production • JV management • Corporate governance development development • M&A • Marketing • Engineering • Operations • Commercial • Corporate gov. • Financing • Drilling • Exploration structures • Financing, M&A • Geoscience • Field development • Investor relations ► A team of six executives with an Oil Major pedigree, deal execution track record and financial discipline ► Extensive leadership experience in Majors, IOCs and Service Industry ► Experienced local management teams in the UK, Norway and Kazakhstan ► Advanced technical and engineering capabilities enable the unlocking of maximum value ► Strong understanding of commodity cycles and M&A dynamics 1

Sequa Petroleum – a unique oil and gas company positioned for success Unprecedented opportunity to acquire high quality assets at distressed valuations  Temporary oversupply and major oil price collapse due to shale oil growth and Saudi change of strategy Opportunity  Liquidity distress causes outsized CAPEX cuts across industry, and availability of assets at distressed valuations  Market fundamentals dictate medium term supply shortfall and equilibrium prices in excess of $70 per barrel Create value in a cyclical industry through asset acquisition, optimisation and monetisation  Identify material assets with proven resources, current or near term production, and value upsides Strategy  Acquire, optimise and monetise assets throughout the cycle through technical and financial excellence  Pursue balanced portfolio in select areas with low marginal cost and exploit growth potential and synergies Highly skilled management with technical, operational, financial and M&A capability  Strong global and local industry relationships through Sequa Petroleum and its local business units  M&A pipeline with 8 targets with potential for deal execution within a year  Pipeline includes public and private companies, distressed corporates and direct asset purchases Execution capability proven by deal track record in a changing market  Gina Krog – highly attractive development play at historic discount to comparable transactions Edge  Wintershall assets – disciplined approach terminated transaction before completion  Kazakhstan licence – upside potential with no immediate capital commitment Privileged access to capital  Sapinda has top financial expertise and a track record of supporting companies’ growth through cycles  Stable, committed and aligned shareholders work closely with management to fully exploit the industry opportunity  Public market listing gives investors liquidity, and provides flexibility to deploy strategy 2

Market environment creates an unparalleled investment opportunity A historic change in the oil market environment Expected rebalancing towards the end of 2016  Oil prices are at an unprecedented new low since 2001 as a result  Global average of c. 6% annual production decline from of OPEC’s collapsed pricing model current fields requires over 5 MMbbl per day replacement capacity, every year  Major players have announced capital investment reductions of c.  New capacity requirement is over 25bn bbl total for 5 years, $400bn to date; additional capex at risk at sustained low oil price growing to 100bn bbl for 10 years  OPEC spare production capacity is currently at an all-time low of c.  Mid and long term average oil price has to exceed the 1%, which limits its capability to prolong oversupply marginal incentive cost of new supply (over $70 per bbl to  Mounting expectation of medium term supply shortage, starting in exceed 15bn bbl of new capacity) 2017 and increasing towards 2020 Decline ~5 mbopd per annum  Geopolitical risk premiums are likely to return and add to the  Distressed sellers are matching distressed market bids, forming a oil price once oversupply is diminished buyer’s market Global production decline of producing fields Marginal cost of new oil supply 2015-20 (kb/d new production, $) Implications Depletion effect over 5 MMbbl / year Exceptional asymmetric risk-reward profile for buyers to accelerate portfolio and value growth Source: Deutsche Bank 3 Source: UBS Global Research, 12 January 2016

Identification of attractive assets in the current oil price cycle… Sequa Petroleum leverages current market conditions Sequa’s principal investment Conventional approach of a Junior E&P Company by building company on Production & Cash-flow criteria  High quality assets with known hydrocarbons Monetise  Assets with current or near-term Assets production and cash flow  Assets in the lower 50% of the Market valuation of assets industry marginal cost curve  Undervalued assets that can be Effect of Low produced, developed, optimised oil price and monetized  Avoid areas with high geopolitical risk Buy Assets Aksai Gina Krog Conventional E&P approach  Companies are built from exploration over a long period with highly uncertain outcomes Exploration Appraisal Develop Construct Production Market Strategy takes into account cyclical business nature to ensure shareholders’ value 4

Norway: excellent tax environment Country overview Oil & Gas in Norway  An attractive and stable investment environment for oil and  Strong sovereign government rated AAA and highly stable gas companies  Europe’s largest oil and gas producer and having the highest o Strong government support for new independent oil and remaining commercial reserves of c. 25bn boe gas companies  Low geopolitical risk and rare isolation from geopolitical crises o A tax regime that provides strong investment incentives  Lowest risk environment for oil and gas globally and significant downside protection: up to 94% of development CAPEX can be refunded by the Government o Transparent joint venture friendly regulation Norway offers a superior Norway is in a sweet spot country risk environment 1 in a low oil price environment 2  The NCS is an area with huge resource volume potential o Prospectivity proven by ongoing large discoveries Rank Overall Rank Country Change Score 1 0 Norway 90.12 Tax relief for c. 94% of field investments 2 0 CH 89.02 3 0 SG 88.73 100% Non refundable 4 +4 DK 85.07 Backstopped by Norwegian state 80% 5 -1 LU 84.77 Uplift 16% Uplift 15% 60% 6 -1 SE 84.53 Special Petroleum Tax Special Petroleum Tax 7 -1 FI 83.62 40% 53% 50% 8 -1 NL 83.23 20% Corporate Tax 25% Corporate tax 28% 9 0 CA 80.91 0% 10 +1 DE 80.86 Investment Tax position Norway provides a secure platform for growth in a unique investor friendly environment Source: Rystad Energy, Norwegian Government 5 1 Sovereign Risk Index, Euromoney 2 Adapted from “Straws in the sand”, The Economist. Figures are 2015 break-even oil price (price at which profit is made, $ per bbl)

Gina Krog – at a glance Gina Krog overview Asset location  An oil and gas field in the central part of the North Sea on the Norwegian Continental Shelf (NCS), located 250 km west of Stavanger and 30 km northwest of the Sleipner A installation  Field discovered in 1974 in the Middle Jurassic Hugin reservoir, with additional oil volumes discovered in 2007  After 15% acquisition from Total, partners are Statoil (operator, 58.7%), Total (15%), PGNiG (8.0%) and Det Norske (3.3%)  Gina Krog is among the largest field developments currently ongoing on the NCS  Experienced operator Statoil has progressed development and expect Gina Krog to become key area infrastructure on the NCS  Project over halfway, planned completion remains within budget and on schedule with first production Q2 2017 Contingent resources are 47 mmboe 1 in addition to the 2P reserves of 260 mmboe  Gina Krog 2P estimated production profile (gross kboe/day) 1,2 Reserves metrics (100%, PDO area only) 1 '000 boepd gross Reserves (mmboe) 80 400 70 330-360 60 300 260 50 40 200 160-190 30 20 100 10 0 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1P 2P 3P Oil and condensate NGL Sales gas Gina Krog is amongst the largest field developments on the NCS 1 Source: Rystad Energy; WoodMackenzie; Gina Krog EIA; Statoil publications; Company estimates; Independent Evaluation of Gina Krog for Tellus Petroleum by AGR Petroleum Services AS 2 Source: Statoil NPF conference presentation profile 2014 (scaled up to 260 million boe reserves) 6