ASX Announcement / Media Release – 13 May 2014

Operations update

Petrel Energy and JV Partner Bernum Petroleum Seek Expressions of Interest for Cardium assets

Petrel and its Lochend Cardium Joint Venture partner, Bernum Petroleum Ltd, have engaged Macquarie Capital Markets Canada Ltd. to seek proposals for the sale of their Lochend Cardium assets.

Bernum and Petrel will offer approximately 6,541 and 3,019 net acres respectively, including 2 producing Cardium oil wells and 2 licenced well locations and associated infrastructure.

During the past year Petrel has worked with its partner to identify well and facility locations with a number of well locations recently approved by the regulatory authorities giving the JV or purchaser the opportunity to pursue development drilling later in the year.

Petrel initially acquired its interest with the purpose of leveraging off a proven operator to establish commerciality and optimise near term reserve certification for a relatively quick turnaround and exit strategy.

On the back of very successful programmes in Uruguay and Spain the decision to sell its interest with Bernum enables Petrel to focus its technical and financial resources on its core assets.

Petrel Energy’s Managing Director, David Casey said “Although we are happy with our initial investment and still see potential for further value creation, we are of the view, on the back recent industry rationalisation, that the timing is right for Petrel to monetise this asset in order to focus capital on our core projects in Uruguay and Spain, where ultimately we expect a better return.”

For further information contact:

David Casey - Managing Director Stephen Mitchell - Chairman Phone +61 2 9254 9000 Phone +61 3 9642 2899 Media contact: Ian Howarth Collins Street Media Mobile 0407 822 319

Petrel Energy Limited | Level 3, 10 Bridge Street, Sydney NSW 2000 | T: +612 9254-9000 | F: +612 9252-0255 E: office@petrelenergy.com | www.petrelenergy.com | ABN 82 125 394 667

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MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014 MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014

FOR FURTHER INFORMATION

Macquarie Tristone2020, 335 8th Avenue S.W.Calgary, Alberta, T2P 1C9

ROB COLCLEUGHManaging Director,Macquarie CapitalTel: (403) 539-4363rob.colcleugh@macquarie.com

LOUIE MARCHESINSenior Vice President,Head of Technical Group -Canadian Oil & GasMacquarie TristoneTel: (403) 303-8654louie.marchesin@macquarie.com

MATT JENKINSVice President,Macquarie CapitalTel: (403) 539-4344matt.jenkins@macquarie.com

ADDITIONAL TRANSACTION INFORMATION

Confidentiality Agreement

Download at www.macquarietristone.com

Evaluation Materials

Available early May 2014

Data Rooms (Calgary, AB)

Open early May 2014Shelly Hopp (403-539-4348) will contact you

to schedule a Data Room appointment afterreceipt of TWO signed copies of the Confidentiality Agreement

Proposals Due

Date to be announced

ABOUT MACQUARIE TRISTONEMacquarie Tristone has completed more than 300 energy asset packages valued at over US$35 billion since 2001. As a leading Acquisitions & Divestitures (A&D) team, it provides advisory services in energy asset transactions worldwide to a range of clients in the oil and gas energy industry.

With a sophisticated suite of asset divestment processes, coupled with superior senior-level industry relationships, Macquarie Tristone brings together an unparalleled combination of disciplines in engineering, geoscience and economics.

Macquarie Tristone’s specialist A&D professionals work within the Macquarie Capital Advisors division of Macquarie Capital Markets Canada Ltd., the Macquarie Group’s corporate advisory and capital markets division.

Macquarie Tristone’s expertise extends across all phases of the disposition process, including, deal strategy, financial and value analysis, technical evaluations, buyer identification and qualification, and other deal-related logistics.

Combined with the Macquarie Group’s global resources activities, the result is a seamless, integrated offering, providing top-tier financial and execution experience with superior, specialist technical expertise.

Additional Questions and InquiriesSubmit to bernum@macquarie.comThis timetable is subject to revision at any time, at the discretion of Bernum, Petrel and Macquarie Tristone. Interested parties who have executed the Confidentiality Agreement will be notified of any changes to this timetable. BERNUM AND PETREL PERSONNEL MAY NOT BE CONTACTED UNDER ANY CIRCUMSTANCES UNLESS THE PRIOR APPROVAL OF MACQUARIE TRISTONE HAS BEEN OBTAINED.

OVERVIEW MEMORANDUM ASSET OPPORTUNITY

MAY 2014

BERNUM PETROLEUM LTD. AND PETREL ENERGY LIMITEDLOCHEND ASSET OPPORTUNITYBernum Petroleum Ltd. and its joint venture partner Petrel Energy Limited (“JV”) have engaged Macquarie Tristone to seek proposals for the disposition of all their respective Lochend assets.

HIGHLIGHTSOver 11,500 gross acres of mostly operated

lands with working interests ranging from 40 to 100%

Recent Cardium development drilling directly offsetting lands; 60 wells drilled to the north of the lands with average type well of 132 Mbbl EUR

The JV has been proactive in preparing for development around the rural community of Springbank; development efforts involve extensive communication and community relations, including non-routine applications

Drilling trends toward two-mile horizontal wells and use of multi-well pads will minimize surface constraints going forward

Six surface leases signed to date; two more pending

Two 100% wells licensed on the pad at 01-18-025-03W5 to bottom hole at 01-07-025-03W5 and 04-08-025-03W5

A third 40% well is likely to be licensed this year in Section 04-026-03W5

An option agreement is signed and in place for a facility site at 12-31-024-03W5

Current production of 31 bbl/d 40°API oil from two horizontal wells (April field estimate)

Current reserves bookings include only reserves associated with the two drilled wells; no future locations have been booked

R3W5R4R5

T24

T25

T26

Lochend

Lochend Land Map

Bernum LandBernum/Petrel JV Land

Bernum/Petrel Lands

GrossBernum

NetPetrel

NetTotalNet

Average W.I.

Developed Acres 644 386 130 516 80%Undeveloped Acres 10,937 6,155 2,889 9,044 83%Total Acres 11,581 6,541 3,019 9,560 83%

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MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014 MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014

LOCHEND - CARDIUM FORMATION

COCHRANE

CALGARY

Bow

Rive r

SpringbankAirport

R2W5R3R4R5

T24

T25

T26

T27

T28

Lochend - Cardium Regional Production Trend MapLand

Cardium Conglomerate Trends

Deformation Front SurfaceDeformation Front Paleozoic

Major Water Bodies

Native ReservesCities

Cardium Penetrations

The 06-33-025-03W5 type log shows the typical Cardium profile coarsening upwards

A DST was performed isolating the top portion of the Cardium sandstone and recovered 53 m of light oil (40°API)

Core analysis shows maximum porosity of 16% and permeability of 2.7 mD

Cumulative Production (Mboe)

1.5 259

Oil Gas

06-33-025-03W5 Cardium Type Log

The Lochend acreage is situated directly south of recent Cardium horizontal development

The majority of the land resides east of the disturbed belt, greatly reducing operational risk and costs

Drilling and completion techniques are evolving in the Lochend Cardium play resulting in lower capital costs and improved results

100/06-33 type well

DST 53 m light oil

100/16-19

100/04-03

Two wells licensed

2 mile long HZs

DISCLAIMERThis Overview Memorandum is based on information provided by Bernum Petroleum Ltd. and Petrel Energy Limited and their affiliates (“Companies”) and is delivered on behalf of the Companies by Macquarie Capital Markets Canada Ltd. (“Macquarie”), which operates its acquisitions and divestitures business under the name Macquarie Tristone. This Overview Memorandum is delivered to interested parties (“Interested Parties”) for the sole purpose of providing an overview of an asset opportunity with the Companies (“Transaction”).The Companies and Macquarie Tristone have the right to qualify Interested Parties. Interested Parties who are not known to Macquarie Tristone or the Companies may be requested to supply references and/or information as to financial capability prior to, or concurrent with, delivery of an executed Confidentiality Agreement. Confidentiality Agreements will not be accepted from agents acting for undisclosed parties. The offering procedure and other conditions of the Transaction are available in the Data Room or from Macquarie Tristone. The Companies or Macquarie Tristone may modify the offering procedure or withdraw from the process at any time without notice to, or liability to, any Interested Party.The information contained in this Overview Memorandum and in any data room coordinated by Macquarie Tristone in connection with this Transaction (“Data Room”) (“Information”) is for informational purposes only, and does not under any circumstances constitute (a) an offering or solicitation for the sale of securities; (b) a recommendation to purchase, sell, or hold any securities; (c) an offering memorandum as contemplated by applicable securities laws; (d) an obligation by the Companies to enter into any proposed transaction; or (e) investment, legal, financial, tax, accounting or other advice of any kind. The Information should not be relied upon by the recipient in considering the merits of any particular transaction. The recipient should consider its own financial situation, objectives and needs, and conduct its own independent investigation and assessment of the Information, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate.The Information has been prepared on the basis of publicly available information and information made available to Macquarie Tristone by the Companies. Macquarie Tristone has relied upon and assumed, without independent verification, the accuracy or completeness of all such Information. It contains selected information and does not purport to be all-inclusive or to contain all of the information that may be relevant to the Transaction. The recipient acknowledges that circumstances may change and that the Information may become outdated as a result. Macquarie Tristone is under no obligation to update or correct the Information. The Companies and Macquarie Tristone are under no obligation to provide the recipient with access to any additional information.Macquarie, its related bodies corporate and other affiliates, and their respective directors, employees, consultants and agents (“Macquarie Group”) make no representation or warranty as to the accuracy, completeness, timeliness or reliability of the contents of this Overview Memorandum or any Information contained in any Data Room. To the maximum extent permitted by law, no member of the Macquarie Group accepts any liability (including, without limitation, any liability arising from fault or negligence on the part of any of them) for any loss whatsoever arising from the use of this Overview Memorandum or its contents or otherwise arising in connection with it or from the use of any Information contained in any Data Room. The Companies and the Macquarie Group shall have no liability for any representations (expressed or implied) other than, in the case of the Companies, those given by the Companies in any definitive purchase and sale agreement, for any written or oral communications with any Interested Parties in the course of their review of the Transaction, or for any implied terms or obligations arising from operation of law or otherwise.Certain statements contained herein may constitute forward-looking statements which involve risks and uncertainties that could cause actual events or results to differ materially from the estimated or anticipated events or results implied or expressed in such forward-looking statements. Forward-looking statements are not a guarantee of future performance. In particular, statements concerning oil and gas reserves may involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. No independent third party has reviewed the reasonableness of any such statements, estimates or assumptions. No member of the Macquarie Group represents or warrants that such forward-looking statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the forward-looking statements. Similarly, no representation or warranty is made that the assumptions on which the forward-looking statements are based may be reasonable. No audit, review or verification has been undertaken by the Macquarie Group or an independent third party of the assumptions, data, results, calculations and forecasts presented or referred to herein. The recipient acknowledges that neither it nor Macquarie intends that Macquarie act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person. Each of the recipient and Macquarie, by accepting and providing this Overview Memorandum respectively, expressly disclaims any fiduciary relationship and agrees that the recipient is responsible for making its own independent judgments with respect to any transaction and any other matters regarding this Overview Memorandum. The Macquarie Group may have interests in the securities and other investment products referred to herein, including being directors of, or may have or may in the future act in various roles including as underwriter, dealer, broker, lender or financial advisor to their issuers and may receive fees, brokerage or commission for acting in those capacities. A list of these roles is available on the Macquarie Group’s website at http://www.macquarie.com.au/macsec/equitiesresearch/InstitutionalHomeServlet?nav=disclosure_disc. Further, the Macquarie Group may act as a market maker or buy or sell those securities and other investment products as principal or agent and as such may effect transactions which are not consistent with this information. None of the entities noted in this presentation are authorised deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited (ABN 46 008 583 542). Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

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MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014 MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014

LOCHEND - CARDIUM FORMATION

COCHRANE

CALGARY

Bow

Rive r

SpringbankAirport

R2W5R3R4R5

T24

T25

T26

T27

T28

Lochend - Cardium Regional Production Trend MapLand

Cardium Conglomerate Trends

Deformation Front SurfaceDeformation Front Paleozoic

Major Water Bodies

Native ReservesCities

Cardium Penetrations

The 06-33-025-03W5 type log shows the typical Cardium profile coarsening upwards

A DST was performed isolating the top portion of the Cardium sandstone and recovered 53 m of light oil (40°API)

Core analysis shows maximum porosity of 16% and permeability of 2.7 mD

Cumulative Production (Mboe)

1.5 259

Oil Gas

06-33-025-03W5 Cardium Type Log

The Lochend acreage is situated directly south of recent Cardium horizontal development

The majority of the land resides east of the disturbed belt, greatly reducing operational risk and costs

Drilling and completion techniques are evolving in the Lochend Cardium play resulting in lower capital costs and improved results

100/06-33 type well

DST 53 m light oil

100/16-19

100/04-03

Two wells licensed

2 mile long HZs

DISCLAIMERThis Overview Memorandum is based on information provided by Bernum Petroleum Ltd. and Petrel Energy Limited and their affiliates (“Companies”) and is delivered on behalf of the Companies by Macquarie Capital Markets Canada Ltd. (“Macquarie”), which operates its acquisitions and divestitures business under the name Macquarie Tristone. This Overview Memorandum is delivered to interested parties (“Interested Parties”) for the sole purpose of providing an overview of an asset opportunity with the Companies (“Transaction”).The Companies and Macquarie Tristone have the right to qualify Interested Parties. Interested Parties who are not known to Macquarie Tristone or the Companies may be requested to supply references and/or information as to financial capability prior to, or concurrent with, delivery of an executed Confidentiality Agreement. Confidentiality Agreements will not be accepted from agents acting for undisclosed parties. The offering procedure and other conditions of the Transaction are available in the Data Room or from Macquarie Tristone. The Companies or Macquarie Tristone may modify the offering procedure or withdraw from the process at any time without notice to, or liability to, any Interested Party.The information contained in this Overview Memorandum and in any data room coordinated by Macquarie Tristone in connection with this Transaction (“Data Room”) (“Information”) is for informational purposes only, and does not under any circumstances constitute (a) an offering or solicitation for the sale of securities; (b) a recommendation to purchase, sell, or hold any securities; (c) an offering memorandum as contemplated by applicable securities laws; (d) an obligation by the Companies to enter into any proposed transaction; or (e) investment, legal, financial, tax, accounting or other advice of any kind. The Information should not be relied upon by the recipient in considering the merits of any particular transaction. The recipient should consider its own financial situation, objectives and needs, and conduct its own independent investigation and assessment of the Information, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate.The Information has been prepared on the basis of publicly available information and information made available to Macquarie Tristone by the Companies. Macquarie Tristone has relied upon and assumed, without independent verification, the accuracy or completeness of all such Information. It contains selected information and does not purport to be all-inclusive or to contain all of the information that may be relevant to the Transaction. The recipient acknowledges that circumstances may change and that the Information may become outdated as a result. Macquarie Tristone is under no obligation to update or correct the Information. The Companies and Macquarie Tristone are under no obligation to provide the recipient with access to any additional information.Macquarie, its related bodies corporate and other affiliates, and their respective directors, employees, consultants and agents (“Macquarie Group”) make no representation or warranty as to the accuracy, completeness, timeliness or reliability of the contents of this Overview Memorandum or any Information contained in any Data Room. To the maximum extent permitted by law, no member of the Macquarie Group accepts any liability (including, without limitation, any liability arising from fault or negligence on the part of any of them) for any loss whatsoever arising from the use of this Overview Memorandum or its contents or otherwise arising in connection with it or from the use of any Information contained in any Data Room. The Companies and the Macquarie Group shall have no liability for any representations (expressed or implied) other than, in the case of the Companies, those given by the Companies in any definitive purchase and sale agreement, for any written or oral communications with any Interested Parties in the course of their review of the Transaction, or for any implied terms or obligations arising from operation of law or otherwise.Certain statements contained herein may constitute forward-looking statements which involve risks and uncertainties that could cause actual events or results to differ materially from the estimated or anticipated events or results implied or expressed in such forward-looking statements. Forward-looking statements are not a guarantee of future performance. In particular, statements concerning oil and gas reserves may involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. No independent third party has reviewed the reasonableness of any such statements, estimates or assumptions. No member of the Macquarie Group represents or warrants that such forward-looking statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the forward-looking statements. Similarly, no representation or warranty is made that the assumptions on which the forward-looking statements are based may be reasonable. No audit, review or verification has been undertaken by the Macquarie Group or an independent third party of the assumptions, data, results, calculations and forecasts presented or referred to herein. The recipient acknowledges that neither it nor Macquarie intends that Macquarie act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person. Each of the recipient and Macquarie, by accepting and providing this Overview Memorandum respectively, expressly disclaims any fiduciary relationship and agrees that the recipient is responsible for making its own independent judgments with respect to any transaction and any other matters regarding this Overview Memorandum. The Macquarie Group may have interests in the securities and other investment products referred to herein, including being directors of, or may have or may in the future act in various roles including as underwriter, dealer, broker, lender or financial advisor to their issuers and may receive fees, brokerage or commission for acting in those capacities. A list of these roles is available on the Macquarie Group’s website at http://www.macquarie.com.au/macsec/equitiesresearch/InstitutionalHomeServlet?nav=disclosure_disc. Further, the Macquarie Group may act as a market maker or buy or sell those securities and other investment products as principal or agent and as such may effect transactions which are not consistent with this information. None of the entities noted in this presentation are authorised deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited (ABN 46 008 583 542). Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

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MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014 MACQUARIE TRISTONE BERNUM PETROLEUM / PETREL ENERGY OVERVIEW MEMORANDUM MAY 2014

FOR FURTHER INFORMATION

Macquarie Tristone2020, 335 8th Avenue S.W.Calgary, Alberta, T2P 1C9

ROB COLCLEUGHManaging Director,Macquarie CapitalTel: (403) 539-4363rob.colcleugh@macquarie.com

LOUIE MARCHESINSenior Vice President,Head of Technical Group -Canadian Oil & GasMacquarie TristoneTel: (403) 303-8654louie.marchesin@macquarie.com

MATT JENKINSVice President,Macquarie CapitalTel: (403) 539-4344matt.jenkins@macquarie.com

ADDITIONAL TRANSACTION INFORMATION

Confidentiality Agreement

Download at www.macquarietristone.com

Evaluation Materials

Available early May 2014

Data Rooms (Calgary, AB)

Open early May 2014Shelly Hopp (403-539-4348) will contact you

to schedule a Data Room appointment afterreceipt of TWO signed copies of the Confidentiality Agreement

Proposals Due

Date to be announced

ABOUT MACQUARIE TRISTONEMacquarie Tristone has completed more than 300 energy asset packages valued at over US$35 billion since 2001. As a leading Acquisitions & Divestitures (A&D) team, it provides advisory services in energy asset transactions worldwide to a range of clients in the oil and gas energy industry.

With a sophisticated suite of asset divestment processes, coupled with superior senior-level industry relationships, Macquarie Tristone brings together an unparalleled combination of disciplines in engineering, geoscience and economics.

Macquarie Tristone’s specialist A&D professionals work within the Macquarie Capital Advisors division of Macquarie Capital Markets Canada Ltd., the Macquarie Group’s corporate advisory and capital markets division.

Macquarie Tristone’s expertise extends across all phases of the disposition process, including, deal strategy, financial and value analysis, technical evaluations, buyer identification and qualification, and other deal-related logistics.

Combined with the Macquarie Group’s global resources activities, the result is a seamless, integrated offering, providing top-tier financial and execution experience with superior, specialist technical expertise.

Additional Questions and InquiriesSubmit to bernum@macquarie.comThis timetable is subject to revision at any time, at the discretion of Bernum, Petrel and Macquarie Tristone. Interested parties who have executed the Confidentiality Agreement will be notified of any changes to this timetable. BERNUM AND PETREL PERSONNEL MAY NOT BE CONTACTED UNDER ANY CIRCUMSTANCES UNLESS THE PRIOR APPROVAL OF MACQUARIE TRISTONE HAS BEEN OBTAINED.

OVERVIEW MEMORANDUM ASSET OPPORTUNITY

MAY 2014

BERNUM PETROLEUM LTD. AND PETREL ENERGY LIMITEDLOCHEND ASSET OPPORTUNITYBernum Petroleum Ltd. and its joint venture partner Petrel Energy Limited (“JV”) have engaged Macquarie Tristone to seek proposals for the disposition of all their respective Lochend assets.

HIGHLIGHTSOver 11,500 gross acres of mostly operated

lands with working interests ranging from 40 to 100%

Recent Cardium development drilling directly offsetting lands; 60 wells drilled to the north of the lands with average type well of 132 Mbbl EUR

The JV has been proactive in preparing for development around the rural community of Springbank; development efforts involve extensive communication and community relations, including non-routine applications

Drilling trends toward two-mile horizontal wells and use of multi-well pads will minimize surface constraints going forward

Six surface leases signed to date; two more pending

Two 100% wells licensed on the pad at 01-18-025-03W5 to bottom hole at 01-07-025-03W5 and 04-08-025-03W5

A third 40% well is likely to be licensed this year in Section 04-026-03W5

An option agreement is signed and in place for a facility site at 12-31-024-03W5

Current production of 31 bbl/d 40°API oil from two horizontal wells (April field estimate)

Current reserves bookings include only reserves associated with the two drilled wells; no future locations have been booked

R3W5R4R5

T24

T25

T26

Lochend

Lochend Land Map

Bernum LandBernum/Petrel JV Land

Bernum/Petrel Lands

GrossBernum

NetPetrel

NetTotalNet

Average W.I.

Developed Acres 644 386 130 516 80%Undeveloped Acres 10,937 6,155 2,889 9,044 83%Total Acres 11,581 6,541 3,019 9,560 83%

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