Proposed Reverse Takeover by Warrego Energy Limited and AIM Listing David Casey Managing Director & CEO 1
Why? Area 11 Area 6 Area 12 Area 15 Tullow Oil Area 14 Total Area 13 BG 2
Why consider a merger? Diversify risk Enhance capabilities Greater scale increases funding optionality Provide certainty Ultimately combined entity provides greater scope and scale and return for existing and new shareholders 3
Why Warrego? Area 11 Area 6 Area 12 Area 15 Tullow Oil Area 14 Total Area 13 BG 4
Why Warrego? Very material company making asset $11M carry on very near term high impact drilling activity Accomplished and credentialed corporate and technical team Committed to adding shareholder value through the drill bit Provides funding optionality in Australia and UK Combined entity not only has complementary assets and skillsets but a pathway of very material projects 5
Who is Warrego? What are the terms? Area 11 Area 6 Area 12 Area 15 Tullow Oil Area 14 Total Area 13 BG 6
Proposed Transaction subject to shareholder approval Warrego UK Private company Assets: West Erregulla - Perth Basin WA Strike farming in - $11m for 50% Latest see ASX:STX news Petrel ASX Listed - PRL Assets: Tesorillo Southern Spain North Perth Basin WA Uruguay medium term optionality 77% 23% Reverse take over / raising $10m-$16m / dual listed on AIM and ASX by Feb 2019 Approved activities 1st half 2019: Planned activities 2 nd half 2019: Drilling West Erregulla-2 in WA Drilling Tesorillo Spain 7
Proposed Transaction Petrel has negotiated a non binding term sheet for a reverse takeover with Warrego Energy (UK) Limited (subject to customary conditions precedent) RTO requires shareholder approval in January 2019 Warrego shareholders will own approximately 77% of Petrel following the RTO Petrel shareholders will own approximately 23% of Petrel following the RTO The company will be renamed Warrego Energy Limited On completion of the RTO the board will consist of Mr Greg Columbus and five newly appointed directors nominated by Warrego see next slide for the 4 Warrego nominees Immediately after the RTO, Warrego Energy Limited, will list on AIM with a capital raising of approximately A$10m See Transaction Details later in presentation 8
Proposed Warrego Directors Dennis Donald Managing Director Co-Founder Left Shell to form Leading Edge Advantage ( LEA ). Built this to a global business. Sold LEA and formed Warrego to bring new technology and techniques to play in unconventional onshore gas. Educated to Masters level at Robert Gordon s University. Duncan MacNiven Executive Director Co-Founder Mark Routh Non-executive Chairman Former corporate/oil & gas lawyer Co-founded LEA in 1998 and Warrego in 2007. Invested in and sold out of a number of asset and technology projects. Graduate of Aberdeen University. Over 30 years experience. Chairman of Independent Oil &Gas plc. Previously MD of CH4 Energy Ltd.10 years with Hess, 6 years with and 5 years with Schlumberger. Msc in Petroleum Engineering from Imperial College. Owain Franks Chief Operating Officer Formerly Commercial Director Independent Resources Group plc. Previously a senior partner in PwC in the UK for 21 years. Former Senior Adviser to the Board of Dana Petroleum plc. LLB University of Southampton, Post Graduate Diploma in Corporate Strategy, Harvard Business School. Warrego Management bring a breadth of technical and corporate expertise 9
Warrego brings experience Warrego brings proven management and entrepreneurial history. Also deep knowledge of innovative drilling, production techniques/processes. and technologies to the Perth Basin and to the combined entity. Warrego has particular skills and networks in: Underbalanced, coiled tubing and managed pressure drilling techniques. Access to proven cutting edge technologies as example in the following areas Ballistics, Perforator with proven capability to dramatically reduce fracture breakdown pressure and improve productivity in suitable reservoirs by 20%. Fibre Optic Logging Tool for Well and Field Evaluation. Disposable fibre optic logging tool can be deployed to give well logs and extrapolation onto filed characteristics. Cuttings evaluation technology that can give real time well characteristics and the ability to extrapolate into successful field management and development. Warrego s technical skills are ideally suited to West Erregulla and WA s unlocked unconventional potential 10
and a potential world class asset $11m farm-in by Strike Energy Ltd for 50% of EP469 signed in June 2018 West-Erregulla 2 well scheduled to commence drilling during H1 2019 to test 3 horizons including the Kingia-High Cliff sand sequence (the Waitsia conventional gas prospect) Significant additional unconventional potential also identified subject to lifting of moratorium on fracking Exploration and appraisal agreements already in place with indigenous communities 11
North Perth Basin Australia s next gas province North West Shelf to Perth Pipeline Waitsia-2P Reserves recently increased to 811PJ (gross); 78% higher than AWE s 2P Waitsia Reserves as at 30 June 2017 Waitsia-2 42m perf. avg. rate of 38.5Mmscf/d Waitsia-3 42m perf. avg. rate of 49.5Mmscf/d Waitsia-4 50m perf. avg. rate of 89.6Mmscf/d Waitsia now ranked in the top 5 largest gas fields ever discovered onshore Australia 12
Targets COOLCALALAYA 1 st Unconventional target STP-EPA-0127 EP-469 & Waitsia Conventional target 2 nd Unconventional target STP-EPA-0127 Multiple conventional and unconventional targets 13
Strike Energy (STX) agrees On 8 June 2018 Warrego completed the farm-out of part of EP469 to Strike Energy Limited ( Strike ), an ASX listed company on the following terms: 50% of EP469 was transferred to Strike Strike became operator Strike has paid A$600,000 to Warrego and operations are under way Strike carries Warrego for the first A$11,000,000 of expenditure on the West Erregulla Deep well Warrego has equal representation on the Operating and Technical Committees of the joint venture ( JV ). 14
Third Party Validation Area 11 Area 6 Area 12 Area 15 Tullow Oil Area 14 Total Area 13 BG 15
AWE Valuation of Waitsia vs. West Erregulla 1. Source: Mitsui & Co presentation dated 18 May 2018 TOB of AWE Limited. 2. Assumes 100% of the acquisition value is attributable to 2P Reserves. Calculated as AWE acquisition value $605m x 83% = $503m. 3. West Erregulla Kingia- High Cliff Prospective Resource as disclosed by Strike Energy Limited in an announcement entitled West Erregulla Update released on the 13th June 2018. 83% of the AWE s 2P Reserves were attributable to Waitsia providing a market valuation of $503m for its 50% of Waitsia. 16
Waitsia buyer is preparing the LNG supply side 17
West Erregulla A tier 1 asset in the making Source: West Erregulla Kingia- High Cliff Prospective Resource as disclosed by Strike Energy Limited in an announcement entitled West Erregulla Update released on the 13 th June 2018. West Erregulla is a material standalone conventional gas prospect with prospective volumes up to 1.24 TCF 18
West Erregulla Additional Prospectivity Source: West Erregulla Lower Dongara Prospective Resource as disclosed by Strike Energy Limited in an announcement entitled October 2018 Update released on the 12 th October 2018. 19
West Erregulla - Advanced reprocessing Source: West Erregulla Advanced reprocessing as disclosed by Strike Energy Limited in an announcement entitled October 2018 Update released on the 12 th October 2018. Advanced reprocessing & spacial stacking yields further confidence in Kingia-High Cliff 20
West Erregulla-2 Well Delivery Source: Waitsia drill rig photo from AWE presentation to WA Petroleum Club on 28 March 2018 21
In Summary with complementary assets and exploration philosophies this clearly represents a compelling opportunity for existing shareholders in both companies, Area 11 where the whole is definitely worth more than the parts. Area 6 Area 12 Area 15 Tullow Oil Area 14 Total Area 13 BG 22
Transaction details Area 11 Area 6 Area 12 Area 15 Tullow Oil Area 14 Total Area 13 BG 23
Pro Forma Capital Structure The indicative capital structure of Petrel following completion of the RTO, based on the current securities on issue, including the Convertible Note issue, and AIM Listing (each assuming full subscription), will be as follows: 24
Preliminary Timetable A preliminary timetable for the Transaction and associated events is set out below and is subject to change: Event Date Execution of definitive agreements 5 December 2018 Dispatch of Notice of General Meeting for Petrel 19 December 2018 Petrel General Meeting to approve share issue for RTO 31 January 2019 Finalisation of AIM Public Offer fundraise 1 February 2019 Target date for AIM Admission 15 February 2019 25
Contact Level 6, 10 Bridge Street, SYDNEY NSW 2000 Ph. +61 2 9254 9000 www.petrelenergy.com 26