IΠB. IPB Petroleum INVESTOR PRESENTATION. ASX Code: IPB ASX ANNOUNCEMENT

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1 IΠB IPB Petroleum ASX Code: IPB 31 October 2014 ASX ANNOUNCEMENT INVESTOR PRESENTATION Please find attached, a presentation on IPB Petroleum provided to institutional investors on October Lee Anne Harris Company Secretary For Further information contact Brendan Brown, Managing Director or admin@ipbpet.com.au. IPB Petroleum Limited (ABN ) 23 Small Street, Hampton, Victoria 3188 Australia P: F: W:

2 ΙΠB IPB Petroleum (ASX Code : IPB) BROWSE FLNG Proposed Development 15.5 TCF Gas 417 MMbbls Condensate PRELUDE FLNG Under Development 2-3 TCF Gas 130 MMbbls Condensate ICHTHYS LNG Under Development 12.8 TCF Gas 527 MMbbls Condensate (IPB 100%*) (IPB 100%) Pryderi-1 (IPB 75%*) Investor Presentation : October 2014

3 Important Notice This presentation has been prepared by IPB Petroleum Limited (IPB) and is provided on the following basis. This presentation does not constitute or form part of any offer or invitation to purchase or subscribe for any securities in IPB or an invitation or inducement to engage in investment activity. All persons should consider seeking appropriate professional advice in reviewing the presentation and IPB. No representation or warranty, express or implied, is made by IPB or any of its directors, officers, employees, advisers, related bodies corporate or any other person as to the accuracy, reliability, relevance or completeness of the material contained in this presentation and nothing contained in this presentation is, or may be relied on, as a promise, representation or warranty, whether as to the past or future. Except for statutory liability which cannot be excluded, each of IPB, its directors, officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence, either directly or indirectly, of the use of any information in this presentation or any error or omission there from. IPB accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. Any forward looking statements speak only as at the date of this presentation and are based on current expectations and belief. No representation or warranty, express or implied, is made by IPB that the material contained in this presentation will be achieved or prove to be correct. Unless otherwise stated information, opinions and conclusions contained within this presentation has been provided by IPB Petroleum Limited and may not necessarily represent those of our other joint venture partners. RESOURCES The resources evaluation of petroleum permits is subject to uncertainty because it involves judgments on many parameters that cannot be precisely assessed and which may change as new information becomes available. Prospective Resources are estimated quantities of petroleum that may be potentially recovered by the application of future development project(s) that relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration and appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. All resources quantities contained in this presentation have been independently estimated by ISIS Petroleum Consultants Pty Ltd (ISIS) for and on behalf of IPB Petroleum Ltd. Further the resources quantities contained within this presentation have been prepared in full compliance and adherence to The Society of Petroleum Engineers Guidelines for the application of the Petroleum Resources Management System (SPE-PRMS). The qualification of the ISIS persons who prepared the resources estimates for and on behalf of IPB Petroleum Ltd and contained within this presentation are as follows: Dr Douglas Gillies holds a BSc and a PhD in Geology. He is a member of the Society of Petroleum Engineers (SPE) and has over 25 years experience in the petroleum industry in Europe, USA, FSU, Middle East, Asia and Australia; Mr Richard Carter holds a BAppSc (Geophysics), and a Graduate Diploma in Applied Physics (Geophysics). He has 18 years experience in petroleum exploration and development and a further 6 years as a full time independent investor in the Australian oil and has industry. He worked as a Senior Geophysicist with BHP Petroleum for 14 years; Mr Werner Ribul holds a MSc in Petroleum Engineering. He has over 24 years of petroleum and reservoir engineering experience with specific focus on recovery optimisation opportunities, reserves determination and classification. Dr. Enrique Carballido is the Chief Operating Officer of ISIS. He holds a Bachelors degree in Geological Engineering, and a Ph.D. in Geology. He has over 20 years of exploration, appraisal and development experience in the petroleum industry in the, USA, FSU, Asia and Australia, including 17 years with Shell. For further information, including assumptions, limitations and qualifications relating to the estimation of resources contained within this presentation, please refer to the Independent Technical Expert s Report by ISIS in IPB s Prospectus dated 1 March 2013, and IPB s ASX Release IPB gains additional prospective resources from WA-485-P dated 27 May 2013 available on the Company website 2

4 IPB Placement October 2014 Raise 3.6m shares at 0.32 = A$1.15m IPB Market Cap at 36c is $39.6m, 28 October 2014 (109.9m shares on issue) Sources: AUD $M Cash Balance end September 2.10 Raise this Placement 1.15 Available Funds Total 3.25 Uses of funds (coming 12 months): Ongoing G&G (existing Permits) 0.39 Potential new Permits 0.68 Administration 12 months 1.32 Fees 0.06 Contingency Funding 0.80 Use of Funds Total

5 Carnarvon Basin Large Gas/Condensate Fields (Structural development) Deeper part of basins Browse Basin Approx 1.6 billion bbls oil produced from oil fields along southern margin of Carnarvon Basin. Oil trapped in well defined structural traps. Basins drawn to same scale Browse Basin of similar area. Southern margin underexplored drilling/3d Oil discoveries at Cornea and Gwydion. Limited geological structural development Relies on 3D seismic (DHIs) to identify stratigraphic trapping mechanisms. 3D IS KEY (IPB First to acquire) Carnarvon & Browse Basins 4

6 IPB Petroleum Key Points: Attractive Economics Large Success Based Upside Strategic Browse Basin Position (14,000 sqkm) Offshore NW Australia Shallow water (~ 80m) Shallow Target Reservoirs (~ 700m) Potential new Oil Fairway Large Prospective Resource (net IPB) Best Estimate 619 MMbbls of oil - Independent assessment (ISIS) High Potential Value Up to $32.4 million of Funding available from CalEnergy (a subsidiary of Berkshire Hathaway Energy) 2 stage Farm-in WA-424-P - IPB residual interest 40% Pryderi exploration well (spud early November) IPB 100% free carried Pryderi NPV10 $765 m (100%) IPB diluted share $306m + 27 additional Prospects/Leads in 2 permits Market = $ 39.6m 28 October Lower Exploration Risk Proven Oil discovered at Gwydion in WA-424-P - Charge, Seal, Reservoir (7 km away) Stratigraphic traps DHI s: - 3D seismic is key - unlock potential/play - Direct Hydrocarbon Response ( DHI ) Upside - substantial legacy 2D 27 leads DHI s readily observable Experienced Executive Team & Board Pryderi 45% chance of oil - early Nov

7 Experienced Board Bruce G McKay BSc (Hons), FAICD, FIEAust Chairman Over 40 years experience in exploration, operation and executive management in Australia and overseas (AWE / ExxonMobil) Fellow of the Australian Institute of Company Directors and Engineers Australia Honorary Life Member of the Australian Petroleum Production and Exploration Association and was Chairman between A member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Australia. Brodrick Wray B.E. (Chem) SPE Non-Executive Director Geoffrey King BSc (Hons) Non-Executive Director Brendan Brown BSc, BE(Hons), MBA(Melb), F Fin Managing Director Graduated from Adelaide University and has worked for more than 28 years in engineering, commercial, executive management and consulting roles in the Energy Industry. Spent 5 years in a variety of commercial management roles in the electricity industry during the privatisation of the South Australian Electricity business before rejoining Santos in 2001 in gas marketing and undertook a number of different commercial roles, including Manager of LNG marketing during the evolution of Santos substantial LNG business Since 2012 he has pursued a variety of personal interests including consulting to the oil and gas industry. 30 years experience in oil and gas industry, commenced career with Esso Australia Numerous management and senior exploration positions with BHP Petroleum, directly involved in the Macedon Pyrenees, Montara, Argus and Gwydion discoveries Substantial experience in Australia, in particular offshore Western Australia, SE Asia and United States. Established IPB Petroleum in early 2009 and has 25 years experience in the Oil and Gas and Finance industries Commenced career as an engineer with BHP Petroleum - heavily involved in the Jabiru, Challis and Skua projects and operations, and Griffin oil field developments Previously an analyst and corporate advisor with ANZ Investment Bank Was General Manager of finance and business development with Nexus Energy (2006- mid 2008) - responsible for substantial financing, secured by the company and the negotiation and maintenance of its key commercial agreements and relationships. Philip Smith BSc Physics(Hons), Msc Geophysics, Grad Dip App Fin & Inv Technical Director Has over 30 years experience working as an exploration geoscientist Previously worked in London with Phillips Petroleum and Kufpec and in Australia with Woodside Petroleum and BHP Petroleum During his 15 year tenure with BHP Petroleum he held senior technical and managerial roles in offshore basins around Australia and was involved in oil and gas discoveries at Elang, Laminaria, Maple and Argus Most recently with Nexus Energy where he was responsible for building the exploration portfolio and was involved in the Longtom and Crux appraisal and development projects.

8 3D Result Pryderi Prospect Pr (Oil discovery) : 45% (ISIS) Prospective resource Pryderi : (78, 32, 12) MMbbls oil (P10, P50, P90) Testing a play as well as a prospect Spud date first week Nov 2014 (~11-15 day well) Well Free carried - CalEnergy NPV10 100% ($765m) IPB 40% diluted interest 27 other leads in permits held 40% - 100% 7

9 2D Data - Amplitude Anomalies Gwydion-1, drilled 1995 Oil discovery 5 MMBBL P50 Contingent Resource in M.australis age Reservoir 3D coverage Cornea Oil Field WA-485-P Prospective Resource (P10, P50, P90) (235,157, 108) MMbbls oil (7 km to Pryderi) Gwydion-1 Pryderi-1 Proven Oil, working Seal, Good Reservoir Pryderi Prospect Prospective Resource (P10, P50, P90) (78, 32, 12) MMbbls oil Cornea Oil Field Discovered 1997 Pryderi-1 3D coverage To be drilled Nov 2014 Oil Migration Pathway WA-424-P Prospective Resource (P10, P50, P90) (373, 271, 204) MMbbls oil

10 Pryderi-1 Drill Rig Secured Recent Timeline Q Environmental Approval received 16 Dec 2013 (NOPSEMA) Q Completed Geophysical site survey Jan 2014 Long Lead Items ordered Appointed AGR as Well Service Operations Manager Commenced final rig negotiations Q2/ Q Floating Drill rig Stena Clyde under tow Well is short duration days Shallow objective (oil) ~ 680m MD well Full Logs, evaluate potential resource No DST Plug and Abandon after logging Testing prospect and play Source: Nicolas Reid Stena Rig contracted Completing all other prepartory well activities Best estimate of spud date 1st week Nov 2014 Following Sinopec (Timor Sea) IPB estimated cost A$25m (fully carried) 9

11 Indicative Work Program (current assets) 10

12 Future Outcomes What if Pryderi-1 is successful: Pryderi-1 Potential NPV10 40 MMBBLS ~ $765m (100%) (fully funded by CalEnergy Farmout) IPB diluted interest 40% ($306m NPV) 27 Other follow up Prospects and Leads in IPB Permits Upside is Seismic can see the hydrocarbons- in particular oil Additional 3D seismic will be required followed by drilling Upside potential - By way of example: Assuming a conversion of 50% of 27 leads following additional new 3D seismic and drilling 11 leads in WA-424-P (IPB diluted interest 40%), 16 leads in WA-485-P (IPB 100%) If they convert to similar size to Pryderi, upside could be in the order of 13x that of Pryderi on a 100% permit basis or possibly more. IPB Market Cap at 36c is $39.6m, 28 October 2014 (109.9m shares on issue) Note: In order to fund the exploration and appraisal and Development IPB will be required to either farmdown further equity in its permits, issue additional equity capital, take on debt or obtain vendor finance, or most likely a combination of all of the above. What if Pryderi- 1 is not successful: Company has existing small oil discovery in its WA-424-P permit at Gwydion with 40% working interest Has bid on a additional permits in recent government gazettal rounds October 2014 placement funds shore-up Balance Sheet to fund contingencies, ongoing permit activities and potential new permit activities Company to continue with strategy of early entry with high equity including working up existing and new permits to farmout and carry future programmes as it did with WA-424-P 11

13 Summary and Strategy Very Large Oil Resource 619 MMbbls of oil Best Estimate Prospective Resource level Shallow Depths Early November 2014 drilling activity e.g. Pryderi-1 Potential NPV10 40 MMBBLS ~ $765m (100%) (fully funded by CalEnergy Farmout) - IPB diluted interest 40% ($306m NPV) 27 Other follow up Prospects and Leads 2 Permits Highly qualified Board & Management Team Market Capitalisation at 36c, 28 Oct. 2014: $39.6m Strategy Early entry with high equity strategic position Manage downside risk - Gwydion Mathonwy (GMG ) Potential commercialisation ~ 5 MMbbls Contingent, and 2 MMbbls Prospective, Oil Resources (P50) 100% ie potential for 7 MMbbls New Ventures/ New Potential Permits (Ongoing) Early part of E&P life-cycle very high reward, but with a plan to manage risks Operate only up to FID / Introduce Value Add Partners 12

14 Appendix Additional Back-up Slides 13

15 Farmout to CalEnergy IPB has Farmout agreement with CalEnergy Resources (Australia) Ltd ( "CE") CE has upstream hydrocarbon assets in Australia, UK, and Poland Key details of the Farmout are that CE: Will fund 100% of the cost of drilling the Pryderi Prospect exploration well in our WA- 424-P permit to earn a 25% interest in the whole Permit. (Except a 60% interest in the Permit s current Gwydion Discovery and the neighbouring Mathonwy/Gilfaithwy structures ("GMG") Area.) CE has become the operator of WA-424-P. Have an option for 3 months after drilling the Pryderi well to increase their interest in the balance of the WA-424-P permit to 60% by spending further funds as they determine on exploration, appraisal and or development activities up to an amount = ($32.4m less the cost of the Pryderi well). Have the option to participate at a 25% interest in our WA-471-P permit which can be exercised for nominal cost within 3 months of the date of the Pryderi well being drilled. IPB will remain operator of this permit. IPB Estimates the Pryderi-1 well to cost approximately A$25m. Based on 25% interest in WA- 424-P (excluding GMG Area), implies an approximate pre-drill value on IPB s 75% of WA-424-P at A$75m - based on capital at risk. 14

16 Pryderi (WA-424-P) Indicative Development Model & Economics MID CASE: 40 MMbbls Recoverable - 10 years Development drilling jack-up Dry Trees 2 well head platforms (Stag field concept) Processing/Export FPSO leased Lift Electrical Submersible Pumps 8 production wells (dry) (5MMbbls recoverable per well) 4 Water Injection wells (dry) Peak Production 20,000 bbls/day (Revenue $2 million per day) IPB share is 40% Power & control umbilical not shown for simplicity Production Oil off-loaded to shuttle tanker Water Injection Wellhead Platforms Assumes 2018 start-up 100% Project $ $ per bbl CAPEX USD DoD $607 million $15.17 OPEX USD (per annum) $91 million $13.08 NPV 10 (AUD) $765 million $18.3 PRYDERI Oil Price $102 (2014 real) (tapis) After deduction of NXS 3-4% (Sales Receipts less PRRT) AUD/USD $ $0.85 flat after 4 years Based on 2 third party independent design concepts, and IPB analysis Potential Upside -tie in Gwydion, Mathonwy, 27 other M.australis leads in 2 permits identified 15