Petsec Energy Ltd

Proactive Investors Presentation

April 2018

Forward Looking Statement DisclaimerThis presentation contains predictions, estimates and other forward looking statements that are subject to risk factors associated with the oil and

gas industry. Although the company believes that the expectations reflected in these statements are reasonable, it can give no assurance that its

expectations and goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward

looking statements include, but are not limited to, commodity prices for oil and gas, currency fluctuations, the need to develop and replace

reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about reserve estimates,

competition, loss of market, government regulation, economic and financial conditions in various countries, political risks, project delay or

advancement, and approvals and cost estimates.

All references to dollars in this presentation are to US currency, unless otherwise stated.

To the maximum extent permitted by law, the company and its personnel:

❖ disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in expectations or

assumptions;

❖ do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this

presentation, or likelihood of fulfilment of any forward looking statement or any event or results expressed or implied in any forward looking

statement; and

❖ disclaim all responsibility and liability for these forward looking statements (including, without limitation, liability for negligence).

Nothing contained in this presentation constitutes investment, legal, tax or other advice. The Information does not take into account the investment

objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of this presentation should

make its own assessment and take independent professional advice in relation to the information and any action taken on the basis of this

presentation.

The reserves assessment follows guidelines set forth by the Society of Petroleum Engineers – Petroleum Resource Management System (SPE-

PRMS). The USA and Yemen reserve estimates provided within this presentation are based on information contained within the announcements to

the ASX on 22 February 2018 and the 2017 Annual Report.

The Company confirms that it is not aware of any new information or data that materially affects the information included within the above releases,

and that all the material assumptions and technical parameters underpinning the estimates therein continue to apply and have not materially

changed.

Corporate Objective

To increase shareholder value by increasing the net asset value of the Company through successful oil and

gas exploration, development and production, thereby building Petsec Energy into a significant mid-tier oil

and gas exploration and production company, respected for is technical skills, timely and cost effective

delivery of projects, and the integrity with which it conducts its business.

Corporate Strategy

To maximise the value of its current reserves, pursue participation in high quality, high impact exploration

drilling opportunities, and to acquire leases with undeveloped or producing oil and gas reserves, which also

hold significant development and exploration potential.

The geographical focus is onshore and offshore Louisiana and Texas, USA , the Republic of Yemen, and the

MENA region generally.

Petsec Energy

Corporate Objective and Strategy

Petsec Energy is an independent oil and gas exploration and production company listed on the Australian Stock

Exchange with operations in the shallow waters of the Gulf of Mexico and onshore Louisiana, USA (offices

Houston & Lafayette), and onshore in Yemen (offices Sanaa & Dubai-UAE).

USA Net 2P oil and gas reserves as of 1 January 2018 were 15.9 Bcf of gas and 1.137 MMbbl

of oil (equivalent to 3.8 MMboe) with an NPV10 value of US$34.8MM 1 or A$0.14 cents/share

❖ Operated in USA Gulf of Mexico and Louisiana since 1991.

❖ Drilling success: 109 wells / 81 successful / 74% success – net production > 216 Bcfe,

US$548MM EBITDAX.

❖ Active Projects: Jeanerette, Mystic Bayou & Hummer (Main Pass 270/273/274).

❖ Jeanerette: 1 well producing intermittently (pending workover/sidetrack when commodity prices

allow)

❖ Mystic Bayou: 1 well producing, 3 further well locations; Currently producing at a gross rate of

~2.1 MMcfgpd and ~42 bcpd (0.4 MMcfpd and 7.8 bcpd, net to Petsec).

❖ Hummer: Discovery well commenced production in November 2017. Currently producing at a

gross rate of 18.1 MMcfpd and 370 bopd (1.9 MMcfpd and 37 bopd, net to Petsec) on a restricted

choke (20/64th inch).

❖ Hummer Development: The existing deck facilities have an initial capacity of 50 MMcfpd and

1,000 bopd with a view to accommodating additional production wells. A further 3 to 8 well

locations to be drilled.

1 Cawley, Gillespie & Associates

Petsec Energy

USA Operations

“Hummer”- Main Pass Blks. 270,273,274

ASF #4

Ouiski Bayou

Mystic Bayou

KEY:Producing FieldLeases/Prospects

NEW ORLEANSLAFAYETTE

VENICE

Petsec Energy

USA Production / Development

Mystic Bayou Field

Hummer Development

Hummer Field

❖ Petsec Energy: 25% non operating working interest (18.5% net revenue interest).

❖ Discovered and brought into production in 2015.

❖ Currently producing at a gross rate of ~ 2.1 MMcfgpd and ~ 42 bcpd (one well).

❖ Expected to generate net revenue of ~ US$0.5MM in FY2018.

❖ Three additional development well locations.

Mystic Bayou Gas/Oil Field – Onshore Louisiana

Petsec Energy

USA Production / Development

16,700’ Sand Map with reservoir outlines

❖ The Mystic Bayou Field has

produced in excess of 3.4

MMbbl and 39 Bcf of gas in

the target horizons.

❖ The Williams #2 Alt well was

drilled to a total measured

depth of 5,263 metres

(17,266’), equivalent to

5,143 metres (16,873’) true

vertical depth.

❖ Future development drilling:

Three well locations of

proved undeveloped and

probable reserves as

defined by Petsec’s third

party reserve auditors –

white circles shown on the

plan.

Petsec Energy

USA Production / Development

Mystic Bayou Gas/Oil Field – Onshore Louisiana

Hummer Gas/Oil Field – Main Pass 270, 273, 274

Discovery Nov 2015/Production Commenced Nov 2017

❖ The Main Pass Block 270 B-1 discovery well was drilled in June-

December 2015 to a total depth of 4,800 metres (15,748’) TVD

❖ Five pay zones intersected, 129 feet (~39 metres) of gross gas & oil

pay in main target pay zone..

❖ Well was cased and mud-line suspended December 2015.

❖ Well production tested in late November 2016.

❖ Well tested > 20 MMcfpd + 400 bopd, on 16/64th inch choke with an

average flowing WHP of 9753 psi.

❖ The nearby analogue fields producing from age equivalent intervals

have peak production rates exceeding 25 MMcfpd and 1,000 bopd.

❖ Production commenced 21 November 2017. Currently producing

at 18 MMcfpd and 370 bopd gross (1.9 MMcfpd & 37 bopd, net)

❖ Expected to generate net revenue of ~ US$3MM in FY2018.

❖ Potential for additional 3 to 8 well locations to be drilled.

❖ Appraisal and development drilling to commence in 2018.

Petsec Energy

USA Production / Development

Main Pass 270 “B” Production Platform

❖ Well results exceed pre-drill resource estimates.

❖ Additional 4 pay sands to that of main target sand.

❖ Test results confirm high production rates: > 20 MMcfgpd + 400 bopd in target sand.

❖ Large structural closure within 3 offshore leases which cover 15,000 gross acres.

❖ Upside potential for the structure exceeds pre-drill prospect potential, 183 Bcf + 3.7 MMbbl.

❖ Multiple development well locations (3 to 8 wells).

Hummer Gas/Oil Field – Main Pass 270, 273, 274Structural Map - Target Sand

Petsec Energy

USA Production / Development

❖ The initial well was drilled as a straight hole and was not designed to test all potential reservoirs in the most advantageous structural positions

❖ One sand was tested and completed for production

❖ Significant upside potential exists in additional reservoirs that have hydrocarbon shows and log calculated pay but were not tested

❖ Future development and delineation wells will test the reservoirs in more optimum locations

Hummer Gas/Oil Field – Main Pass 270, 273, 274Discovery Well – Schematic Cross-Section

Petsec Energy

USA Production / Development

Petsec Energy

Yemen Operations

YEMEN

❖ Commenced operations 2014. Acquired 100% - Block S-1 ( 2016) and Block 7 1 (2014-2016).

❖ Damis (Block S-1) Production Licence (100% working interest / 82.5% participating interest):

Acquired February 2016:

Holds five oil & gas discoveries – An Nagyah (developed/productive) and Osaylan, Harmel, An Naeem

& Wadi Bayhan (undeveloped).

An Nagyah Oilfield 2P reserves 2 (1 January 2016): 12.8 MMbbl oil gross / 5.6 MMbbl net (NPV10

US$155.4MM).

The four undeveloped oil & gas fields hold target resource: > 34 MMbbl oil & 550 Bcf gas gross 3.

❖ Block 7 (Al Barqa) 1 100% working interest (85% participating interest) acquired 2014/2015/2016:

Al Meashar undeveloped oil discovery – two wells / target 11 MMbbl oil gross (9.3 MMbbl net) / > 50

MMbbl potential

Eight prospects / leads: target sizes range from 2 to 900 MMbbl oil gross

1 75% owned and awaiting approval of remaining 25% working interest.

2 Source: DeGolyer and McNaughton Canada Limited

3 Source: Wood Mackenzie Asia Pacific Pty Ltd

.

❖ Approximately 53% of the world's proven oil reserves are located in the Middle East Source: OPEC Annual Statistical Bulletin 2015.

❖ Yemen, located on the Arabian Plate, contains geology comparable to that of Saudi Arabia, comprising the equivalent Petroleum Systems to those of Saudi Arabia.

❖ Yemen is under explored & under developed holding the potential for large oilfields.

❖ Block S-1 has 5 oil & gas fields (target potential > 55 million barrels of oil and 550 Bcf of gas).

❖ Block 7 contains the Al Meashar oil field (target potential 11-50 MMbbl) to be appraised and further developed.

❖ The Company’s potential working interest in Block 7 is 100% (25% W.I. acquired from KUFPEC in 2016 is pending approval from the Ministry of Oil & Minerals).

Petsec Energy

Yemen Operations

Block 7

Block S-1

Houthi

Glencore lifts 3-4 million bbls in August 2016& 2-3 million bbls in January 2017 Glencore commenced crude oil

lifting in Aug 2016

Petsec Energy

Truck / Pipeline Routes

OMV’s Habban

Oilfield 350 MMbbl

of oil recoverable

Block 4 Yicom

Block 7

Block S-1

An Nagyah Field/Marib-Shabwah Basin Production Hub

❖ The An Nagyah Oilfield holds 12.8 MMbbl of oil gross to Petsec Energy (5.6 MMbbl net to Petsec with a NPV10 in the order of US$155MM at 1.1.2016).

❖ Additional four undeveloped oil and gas fields – Osaylan, An Naeem, Wadi Bayhan, and Harmel which hold in excess of 34 MMbbl of recoverable oil and 550 Bcf of gas.

❖ The An Nagyah Oilfield, shut-in since February 2014, at a restricted rate of over 5,600 BOPD., was producing 10,000 BOPD at an unrestricted rate two years earlier.

Petsec Energy

❖ An Nagyah is connected by 80,000 bopd pipeline to the Marib-Shabwah production hub which delivers crude for export directly to the Ras Isa Terminal on the Red Sea via a 610-910mm diameter 438 km export pipeline, capacity 400,000 bopd.

❖ An Nagyah Central Processing Facilities capacity of 20,000 bopd can be readily increased to accommodate development of the four undeveloped fields within the block.

Block S-1

Block 7

Marib Export Pipeline to Ras Isa

Terminal in the Red Sea

An Nagyah Oilfield

12.8 MMbbl Gross to Petsec with

Central Processing Facility

Osaylan Target recoverable oil

5 MMbbl

An NaeemTarget recoverable 12 MMbbl Cond.

550 bcf Gas

HarmelTarget recoverable oil

17 MMbbl

Wadi BayhanTarget recoverable

1 MMbbl Cond.+ 50 bcf Gas

The CPF connected to the Marib Export Pipeline (300,000 BOPD capacity) to the

Export Terminal at Ras Isa on the Red Sea.

OMV’s Habban Oilfield350 MMbbl Oil recoverable

Al Meashar OilfieldTarget recoverable oil11 - 50 MMbbl gross

❖ The An Nagyah Oilfield contains a 50 metre oil column and up

to a 135 metre gas cap at its structural crest.

❖ Oil is produced through vertical and horizontal wells drilled

across the sandstone reservoir.

❖ Production in the field is maintained through an active aquifer

in the north-west flank of the field and via gas expansion in the

up dip South-Eastern crest where there is a significant gas

cap.

❖ Peak production has exceeded 12,000 bopd but has been

limited by gas compression capacity for the re-injection of

produced gas back into the reservoir.

❖ The re-injected gas maintains reservoir pressure and allows

for greater recovery of oil from the field.

A

BE

E’

East Side – gas cap expansionCentral – early gas cap expansion, and bottom water driveWest Side: bottom water drive

BA

Oil

Gas

Water

An Nagyah Oilfield - Geological Cross Section

Petsec Energy

Pipe Laydown Yard

Central Processing Facility

30m

An Nagyah Oilfield - Central Processing Facility (CPF)

❖ The previous operator has invested over US$450 MM

developing the An Nagyah Oilfield;

❖ The An Nagyah production facility has been well maintained during the shut-in period and remains in good condition

❖ A recent survey of well heads, pumping station, generators, compressors, control room, pipelines and warehouse confirmed there

is no damage and the field can readily be restarted.

Generators & Office Block

Generators & Office Block

Petsec Energy

An Nagyah Oilfield – CPF / Trucking / Offloading

Petsec Energy

Block S-1 - Truck loading gantry

tie-in point

Block 14 - Offloading Arms

Trucking

Block S-1 – Crude Processing Train

HabbanEUR 350mmbbls

Block 3

Block 7

3D Volume

Omega Lead

West Irema Lead

East Irema Lead

Habban FieldHabban Oilfield

Al Meashar Oilfield

Source: Oil Search Limited

❖ The Al Meashar 1 & 2 discovery wells intersected an oil

column in excess of 800m❖ The block also contains 8 seismically (3D and 2D) defined prospects

and leads with mapped target sizes ranging from 2 – 900 MMbo❖ Significant potential is recognised in Cretaceous sands of the Lam

formations (An Nagyah) - extensive shows in the wells drilled in Block 7 and flowed over 1000 BOPD in the neighbouring Habban Oilfield

Block 7

Al Barqa (Block 7) - Development & Exploration Potential

OMV’s Habban Oilfield

350 MMbbl of oil

recoverable

Petsec Energy

Omega Lead target

439 MMbbl of oil

Lead E (Lam + Basement)

target 174 MMbbl of oil

West Irema target

241 MMbbl of oil

East Irema target

164 MMbbl of oil

Al Meashar Oilfield

11 - 50 MMbbl of oil

Lowest Closing Contour

Al Meashar-2 Oil Down To

2C Reserves

Al Meashar Oilfield Structure Map

EW

❖ The Al Meashar 1 & 2 discovery wells intersected an oil column in excess of 800m in the Kuhlan Sandstone and Basement formations, the same formationsas in OMV’s Habban Oilfield which has an oil column of 945m and has been producing ~20,000 BOPD.

❖ The Al Meashar undeveloped oil discovery within the drilled fault block – two well intersection targets 11 MMbbl oil gross (9.3 MMbbl net) with potential toincrease to > 50 MMbbl within the currently mapped red Lowest Closing Contour.

❖ The oil column in the Al Meashar wells exceeds the mapped structural closure by more than 200m as defined by the red LCC contour in the mapbelow. Current estimates of oil target within the oil-down-to (ODT) green contour exceeds 110 MMbbl.

❖ The Company’s first objective in this block is to bring the two suspended discovery wells of the Al Meashar Oilfield (target resource of 11 MMbbl-50 MMbbl)into production. Short-term testing of the wells in 2010-11 delivered flow rates ranging from 200 to 1,000 BOPD/well.

Reserves Estimate

LCCOil Down To TD

February 2016

EW

Lowest Closing ContourTarget Potential >50MMbbl

Oil Down To TDTarget Potential >110MMbbl

Al Meashar 1&2 Fault BlockTarget Potential >11MMbbl

Al Barqa (Block 7) - Al Meashar Oilfield Development

Petsec Energy

Petsec Energy - Yemen Reserves Potential

6 Oil/Gas Fields, 8 Exploration Prospects

West Irema

An Nagyah

AL Meashar Upside

HarmelOsaylan

An Naeem

Al Meashar Discovery

Omega Prospect

East Irema

Katana

Sabre

Alpha Lam

Lead E Lam

Lead E Basement

0%

20%

40%

60%

80%

100%

1 10 100 1,000 10,000

Pro

bab

ilit

y o

f Su

cce

ss

Unrisked NPV10 (US$MM)

NPV vs. PoS vs. Net Reserves (bubble size)

West Irema

Osaylan

Omega Prospect

East Irema

Katana

Sabre

Alpha Lam

Lead E Lam

Lead E Basement

0%

20%

40%

60%

80%

100%

1 10 100 1,000 10,000

Pro

bab

ilit

y o

f Su

cce

ssUnrisked NPV10 (US$MM)

NPV vs. PoS vs. Net Reserves (bubble size)

Developed

Undeveloped

Block 7

Petsec Yemen PortfolioSix Oil/Gas Fields

An Nagyah

An Nagyah Oilfield: NPV10 of US$188MM net to Petsec Energy ( 1.1.2016 reserve audit engineers DeGolyer Naughton)

439MMbbl

An Nagyah Oilfield: NPV10 of US$155.4MM net to Petsec Energy (1.1.2016 reserve audit engineers DeGolyer and McNaughton Canada Limited)

Petsec Energy

Capital Structure & Valuation

Capital Structure

Market Listing ASX: PSA / OTC ADR: PSJEY

Shares on issue 323.6 MM

Market capitalisation at 3/4/18 @ 10.0 c/s ~ A$32 MM

Cash at 31/12/17 US$3.5 MM

US$10 million convertible note facility – 31/3/18 (available) US$5.0 MM

Net oil & gas reserves (2P) as of 1/1/18 9.4 MMboe

NPV10 reserves (2P) as of 1/1/18 US$189.8 MM or A$0.77/share

Valuation

2P MMboe

NPV10 US$189.8MM Market Capitalisation A$32MM (A$0.10/share)

❖ Audited Net 2P Reserves 9.4 MMboe (6.9 MMboe developed + 2.5 MMboe undeveloped)

❖ NPV10 US$189.8MM (A$250MM)

❖ Petsec Energy value per share ~ A$0.77/share

❖ Yemen undeveloped fields – resources 43 MMbbl + 550 Bcf

Key drivers to unlock latent value

Petsec Energy

Significant Discount to NPV of Oil & Gas Reserves

YEMEN❖ An Nagyah Oilfield restart of production - Government approvals❖ Trucking 5,000 bopd expected to generate company revenues of US$5MM/month, net cashflow of

US$2.5MM/month

USA❖ Development drilling Hummer Gas/Oil Field (mid-2018?)❖ Development drilling Mystic Bayou Gas/Oil Field (mid-2019?)