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ASX Spotlight Presentation Hong Kong & Singapore

May 2014

David Casey, Managing Director

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Disclaimer

Important Notice

• This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation,

solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

• Shareholders should not rely on this presentation. This presentation does not take into account any person's particular investment objectives, financial

resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations

of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or

unanticipated market, financial or political developments.

• The information set out in this presentation does not purport to be all inclusive or to contain all the information which its recipients may require in order

to make an informed assessment of Petrel. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as

to the accuracy and completeness of the information, statements and opinions contained in this presentation.

• To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or

completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility

for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

• This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and

assumptions which are outside the control of Petrel. These risks, uncertainties and assumptions include commodity prices, currency fluctuations,

economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments,

political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those

expressed or implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements.

• Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under

applicable law and the ASX Listing Rules, Petrel does not undertake any obligation to update or revise any information or any of the forward looking

statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

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Petrel Energy’s Diversified Global Portfolio

Norte Basin Uruguay Cordobes Shale and Cerrezeulo and

La Paloma SS

Targeting unconventional and

conventional oil targets in Piedra Sola &

Salto Concessions (3.5M acres)

Betic Alps Spain – Aljibe

Formation Targeting conventional sandstone gas

reservoirs in 94,000 acres in Southern

Spain.

Lochend Cardium Alberta,

Canada Targeting “tight oil” in lower siltstone and

sandstone in 6,400 acres. (sales process

commenced)

Petrel Energy’s objective is to create shareholder wealth through the acquisition, exploration,

appraisal and development of a diversified portfolio of substantial oil and gas projects

Conventional and unconventional oil and gas project diversity

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Corporate Profile

Capital Structure

Cash: $8.6m (March 2014)

Issued Cap: 443.2m Shares

Market Cap: $80m (at $0.18)

Debt: $0

ASX Code: PRL

Uruguay & Spain Acquired

Coring Programme commenced

Shareholders

David Casey* 8.7%

Stephen Mitchell* 7.3%

Alexander Sundich* 5.0%

Cameron Richard Pty Ltd 6.6%

Smithley Super Pty Ltd 4.8%

Linwierik Super 3.9%

Top 20 55.0%

Board & Management

Stephen Mitchell* Chairman

David Casey* Managing Director & CEO

Alexander Sundich* Non-Executive Director

Ian Kirkham Company Secretary

Share price has increased up to 5 fold at times since Uruguay and Spain assets acquired

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Share Performance

$0.18

ResourceInvest - AOGR Report - 22 May 2014

Petrel best performing ASX oil & gas company by share price for 2013

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URUGUAY

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Uruguay Background

Stable democracy, population 3 million and ranked among the least corrupt countries in the world

Increasing international attention turning to Uruguay after recent successful offshore licencing round

with companies such as BP, BG and Total acquiring extensive offshore and more recently onshore permits

“…Total joins independents Schuepbach Energy and Petrel Energy.”

TOTAL & ANCAP acquired concessions after Petrel’s entry in late 2012

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Uruguay Ideal Operating Environment

Ready local market for oil and gas at international prices – Uruguay currently imports 40,000 bopd into La Teja Refinery in Montevideo

Attractive PSC terms. ANCAP (Energy Ministry) involved in upstream and downstream activities

Ideal operating conditions with ready access to equipment in neighbouring Brazil and Argentina – 2 Coreholes drilled by local contractors, seismic about to commence

Politically stable democracy with excellent fiscal terms and proactive business environment

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Uruguay Concessions

Extensive acreage position in Piedra

Sola and Salto concessions totaling

14,000 km2 (~3.5 million acres)

Magnetotelluric (MT) programme

confirmed existence of rift basin

extending across both permits with

Devonian and Permian sediments

Successful corehole programme has

confirmed the existence of oil

producing source and reservoir rocks

Both unconventional and

conventional reservoir targets.

Uruguay represents a rare company transforming “first mover” opportunity for Petrel

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Uruguay Corehole Success

Corehole results confirm existence of an active petroleum system

Multiple mature source rocks identified

Free oil identified across majority of Piedra Sola block

Uruguay Corehole Achar E-1; Oil leaching from Devonian sandstones just below Cordobes Shales (306-315m)

Permian and Devonian source rocks and very high quality sandstone reservoirs represent

significant conventional and unconventional reservoir targets

Cardozo Chico E1 Permeability = 20.5 darcies

Cardozo Chico E1 Permeability = 30.9 darcies

Excellent porosity and permeability measured from sandstone core samples. Porosities commonly greater than 20% with measured permeability in the Darcy (1000md) range in some samples

Significant conventional reservoir potential

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Uruguay Corehole Success

Corehole results confirm active petroleum system across most of Piedra Sola and very likely

deeper Salto block.

75kms

Piedra Sola

Corehole Results

Parameter SEI Cerro

Padilla E-1 SEI Cardozo

Chico E-1 SEI

Achar E-1

ANCAP Cañada

Charrua E-2

TOC Max. 4.5% * 11.60% 2.5% 9%

TOC average TBC 3.30% 1.5% 2.8%

Amorphous kerogen 70% 40%-70% 95% 50% - 90%

Vitrinite reflectance 0.74 0.76 to 0.78 0.65 0.75

Reservoir permeability (max)

TBC 1,000 -

3,000md (30,000md)

1,000 - 2,000md

(7,600md) n/a

Reservoir porosity TBC ~20% ~20% n/a

Streaming UV Yes Yes Yes Yes

Free oil Yes Yes Yes Yes

* Preliminary results

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Uruguay 2014 Seismic Program

580km 2D seismic program on track to commence in June.

Seismic (red lines) will be conducted on public roads where possible.

Piedra Sola Salto

Proposed seismic programme (red) Roads (yellow)

Concessions (pink)

Seismic will assist with reservoir and resource extent and delineation

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Uruguay How does the Norte Basin Compare?

Bakken Analogue

Currently producing more than 800,000 bopd and anticipated to increase to more than 1-2 MM bopd by 2020

USGS estimates 7.4 billion bbls recoverable oil potential

Current areal extent of US producing play area 28,000km2

Vaca Muerta Analogue

First shale oil discovered Nov 2010 by YPF, partnered with Exxon / EOG / Total / Shell, current production 16,000 bopd

US EIA estimates total recoverable hydrocarbons to be 16.2 billion bbls and 308 TCF

Current areal extent of play area 30,000km2

Comparable Bakken analogue is largest US oil development in decades

Similarities Same Devonian-age shales

Similar geological environments

Both have condensed organic rich sections

Kerogens are mainly amorphous and hydrogen rich – more oil and liquids prone

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Uruguay How does the Norte Basin Compare?

“Energy gurus Wood Mackenzie recently called Argentina’s shales the best in the world”

www.oilandgas-investments.com February 2014

“U.S. oil company Chevron Corp signed an agreement with Argentina’s YPF to invest $1.24 billion in the Vaca Muerta shale oil and gas formation, thought to be one of the biggest reserves in the Western Hemisphere”

Reuters, 16 July 2013

* Preliminary results from limited sampling

The Vaca Muerta is proof that very large shale plays are being found and developed outside

the USA

Uruguay Argentina USA (ND) USA (PA - NY)

Cordobes San Gregorio Mangrullo Vaca Muerta Bakken Marcellus

Hydrocarbon Type Oil Oil Oil Oil Oil Gas

Depth, feet 1000' - 10,000' 1500' - 8000' 2500' - 7000' 5500' - 10,000' 4000' - 11,000' 4800' - 8500'

Net Pay 300' 70' 270' 325' 10 - 60' 50-250'

TOC 1% - 4%* 1% - 11.5% 1% - 4.5%* 3% - 14% 10% - 15% 3% - 11%

Ro% 0.67 - 0.85 0.75 - 0.8 0.73 - 0.8 0.45 - 0.6 0.8 - 3.0

Recoverable Oil bbbls Unknown Unknown Unknown 16 7 1

Recoverable Gas TCF 308 6 84

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SPAIN

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Spain Background

Two contiguous license areas total 38,000ha (94,000 acres), Cadiz province, southern Spain

License contains 1956 Almarchal-1, which flowed gas from stacked porous & permeable

conventional sandstones at shallow depths

Thinly populated rural area, good relationship with local authorities & land owners

Access to 40” gas pipeline with excess

capacity 3km from well

USD10+ spot gas price

Known gas accumulation with ready access to high priced European gas markets

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Spain Highlights

Detailed formation evaluation suggests

upwards of 500m of net pay with gas

columns in excess of 400m.

Exhaustive data compilation and analysis

of the Almarchal-1 well confirms

excessive formation damage likely due

to heavy fresh water drilling fluids

The Joint Venture continues to appraise

farmout opportunities for the Tesorillo

prospect.

Joint Venture is attempting to gain

access to core from original well.

Prospective Resource of up to 3TCF certified by Netherland, Sewell & Associates, Inc. (NSAI)

Prospective Resource may be conservative if drilling confirms more extensive oil water

contact than assumed in certification

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Spain Almarchal -1 Well

Drilled by Valdebro in 1956/57

Almarchal-1 Well location selected on basis of field geology and gravimetry, not seismic

Took 12 months to drill

Many problems due to swelling shales, four sidetracks, gas flared from leaky surface casing

39 DST’s, most recovered small amounts of gas (max 93% CH4), little to no water

Good reservoir quality indicated

61 cores drilled

41 good quality porosity and permeability measurements by IFP (Paris)

Gas flowed to the surface on multiple occasions

Despite reservoir damage from poor drilling methods i.e. the use of fresh water drilling fluids

Twin of Almarchal-1 to be drilled & tested

Using inhibited mud system to protect reservoirs & ensure optimal gas rates

DST13: flowed 7Mscf/d Gas

DST36: flowed 5Mscf/d Gas

DST5: rec 793m gas & mud

DST6: rec 1055m gas & mud DST7: rec gas cut mud

DST8: rec gas cut mud & fm water

DST14, 19: swabbed mud & fm water

DST21: rec 114m slightly gas cut mud DST12: rec 366m gas cut mud

DST23: rec 274m gas cut mud

DST27: rec 76m gas cut mud

Miocene Aljibe SS

Gross interval 1180m

(1030-2210m)

Net reservoir >500m

Almarchal-1

Recent petrographic studies support notion of excessive reservoir damage from swelling clays

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CANADA

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Canada Background

In March 2013 Petrel acquired a 40% interest in 5,120 gross acres and a producing well in the Lochend Cardium immediately west of Calgary

Unconventional “tight oil” play targeting siltstone and sandstone reservoir

Renewed focus in the area came with the development of horizontal wells and multi-stage fraccing

IP’s range from 100-1,000 boe/d - 38°API (Lochend 100-350 boe/d)

Macquarie Capital Markets is currently seeking proposals for the sale of Petrel’s Cardium assets allowing Petrel to focus capital on its core projects in Uruguay and Spain

Ground floor, no promote, entry to low risk light oil play

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Canada Cardium Production Potential

Well 16-19-25-3W5M at Lochend yielded a 30 day initial production (IP 30) rate of 150 boed.

Joint venture has licenced 2 new well locations including associated infrastructure

On trend development drilling immediately to the north averages 132,000bbl EUR (recoverable)

Drilling trending toward two-mile horizontal wells and use of multi-well pads to minimize surface constraints

Experience and Technology readily applicable to other projects in Petrel’s portfolio

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Canada Joint Venture Expressions of Interest

Potential Cardium sale enables Petrel to consider active participation in

upcoming well in Spain

Extract from full Overview Memorandum released to ASX on 13 May 2014

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Looking forward…the year ahead

Continue to underpin value by realising large upside in Spain and Uruguay projects with tailored appraisal programmes

Monetise recently consolidated Cardium acreage through sales process with JV partners

Str

ate

gic

URUGUAY

Continue detailed core analysis & geological modelling

Increased interest to 51% (Spain 43.3%)

Commence seismic mid 2014 to enable resource delineation with possible follow up corehole programme

CANADA

Seek expressions of interest for Cardium assets with JV partner Bernum Petroleum

Focus capital on our core projects with likely better returns

SPAIN

Progress well permitting & approvals

Continue farmout process seeking well and possible seismic commitment

Permit MT programme to assist with pre-drilling appraisal

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THANK YOU

www.petrelenergy.com