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Investor Presentation Q3 2015 Investor Presentation Q3 2015 SLIDE 1 Building a mid-cap Mediterranean gas company Regional gas strategy Map: key assets Strong European gas fundamentals Building political momentum across the region


  1. Investor Presentation Q3 2015 Investor Presentation – Q3 2015 SLIDE 1

  2. Building a mid-cap Mediterranean gas company Regional gas strategy Map: key assets • Strong European gas fundamentals • Building political momentum across the region to stimulate Producing / Development Assets domestic demand Low risk discoveries Balanced portfolio focused on game changing drills High upside exploration • Tendrara appraisal wells Q4 2015 & Q2 2016 Italy • Badile exploration well Q1 2016 • Laura appraisal well Strong funding position • EUR 26M cash balance (excluding open ofger) • Supportive cornerstone investor with strong relationships across Morocco the Mediterranean • First gas at Nervesa (2015) secures signifjcant annual cash fmows • Strong liquidity • EUR 17M deferred and contingent consideration (Indonesia) Investor Presentation – Q3 2015 SLIDE 2

  3. The team London: Growth, funding, investor relations and compliance 5 people: 1 exec / 4 stafg James Parsons, Chief Executive Offjcer • 23 years in Oil/Gas across Europe, South America and Central America • 12 years with Royal Dutch Shell • Specialising in restructuring, funding and growing small listed upstream companies • Strong background in upstream strategy, M&A and fjnance; qualifjed accountant Milan/Rabat: Subsurface, operations and permitting 21 people: 2 exec / 13 stafg / 6 contractors Luca Madeddu, Managing Director, Morocco • 25 years upstream experience across Europe, Asia and South America • Reservoir geologist with extensive experience in production operations, fjeld development, petroleum/reservoir engineering and supply chain management • Expertise in management of complex reservoirs Leonardo Spicci, Managing Director, Italy • 25 years upstream experience in Europe, Kazakhstan and North Africa • Reservoir geologist with extensive experience in production operations and petroleum/reservoir engineering • Former ENI Managing Director for Northern Italy portfolio • Able to navigate Italian approval processes Investor Presentation – Q3 2015 SLIDE 3

  4. Balanced portfolio Key Assets Tendrara Zibido Exploration Badile (CPR underway) Risk Nervesa* SMG Tendrara Appraisal Rapagnano Dora/Dalla (CPR underway) Laura Reward Low Risk Existing Discoveries High Upside Exploration Cost Covering Production NPV 10 EUR 711M (Italy), NPV 10 EUR 162M (Italy), plus multiple Tcf (Morocco) plus Tendrara TBC (Morocco) NPV10, Mid-case / Best Estimate 2,500 2,000 TBC EUR M 486 1,500 1,000 225 500 TBC 66 40 56 8 * 3 Rapagnano Nervesa Laura Dora/Dalla Tendrara Zibido Badile Tendrara Portfolio SMG Appraisal Exploration total * Excludes Nervesa II side (Illustrative) (Illustrative) Source: CPR track (under evaluation) Investor Presentation – Q3 2015 SLIDE 4

  5. Key development assets: “building material cash fmows” Up to EUR 24M NPV 10* (Best Estimate EUR 8M) NERVESA GAS DISCOVERY, OWNED 100% * Excludes Nervesa II side • Veneto region track (under evaluation) • Play type: anticline structure, multiple gas 2P bearing Miocene sand intervals €8M 2P (TD 1,500-1,800m) 3.0 Recoverable resource • 1st well drilled July 2013; expected to fmow 3P 8.5 Bscf +5.5 1.8 MMscf/d ; fjrst gas 2015 3P +€16M • Side-track on second well under evaluation NPV10 (Eurocent 31/cbm) Recoverable resource (bscf) Up to €4M NPV 10 3P (Best Estimate €3M) RAPAGNANO GAS DISCOVERY, OWNED 100% +€0.4M • Marche region (Central Italy) 2P 3P +€0.5M +0.2 • First gas achieved 15 May 2013 from the Sabbie reservoir Recoverable resource 2P 1.3 Bscf • 12 years production remaining +0.3 1P 0.8 1P €2.9M Investor Presentation – Q3 2015 SLIDE 5

  6. Drilling existing discoveries (1 of 2) TENDRARA I & II, OWNED 55% Tahaddart Mediterranean Power plant Oued • First well Q4 2015 (£6M) to prove up to 200-300 Bscf El Makhazine Dhar Doum 4 x 400 MW Al Wahda recoverable resource Oujda Atlantic • Key play type: Gas discovery with condensate-light oil Rabat SAMIR shows in the Lower Triassic sequence (TD 2,600m); TAGI Casablanca sand objective Existing discovery I Existing discovery II • Previous wells sub-optimally perforated Algeria Morocco • CPR to be commissioned Marrakech Gas Maghreb-Europe Pipeline Gas pipeline project in LAURA, OWNED 100% Up to €65M NPV 10 Prospective (Best Estimate €40M) €6M • Gulf of Taranto (4km ofgshore, 200m water depth) Prospective 4.2 • Play type: inverted fault block, gas in Pleistocene Recoverable (MVD 1,300m) 1C 3C 1C resource +€24M 12.3 €27M 3C 25.6 Bscf • Long reach deviated well from onshore +7.2 • €16.2M well cost 2C +1.9 Recoverable resource (bscf) 2C +€7M NPV10 (Eurocent 31/cbm) Investor Presentation – Q3 2015 SLIDE 6

  7. Drilling existing discoveries (2 of 2) SANTA MARIA GORETTI, OWNED 100% Up to €105M NPV 10 Low (Best Estimate €56M, €8M at Eurocent 31/cbm) • Marche Region (Central Italy) Low 9.7 • Play type: inverted fault block, gas in Pleistocene Recoverable High (TD 3,800m) Best +34.4 resource +€36M 67.7 Bscf High Best • Southern +€61M of two producing gas fjelds +23.7 Recoverable resource (bscf) NPV10 (Eurocent 28/cbm) DORA/DALLA, OWNED 100% Potential >€81M NPV 10 (Best Estimate €66M) 2C €19M • Adriatic Sea (21km ofgshore) High • Play type: faulted anticline, Gas-condensate tbc 2C 17.6 3C High +€15M in Scaglia Formation (TD 1,400m) +25.9 Recoverable resource 3C • Dora gas discovery previously drilled 1972, 74.5 Bscf +6.4 Low tested 20MMScf/d Low tbc Best 8.9 +15.7 • €13M well cost Recoverable resource (bscf) Best €47M NPV10 (Eurocent 31/cbm) Investor Presentation – Q3 2015 SLIDE 7

  8. Exploration assets: Italy BADILE, OWNED 100% Up to €1,745M NPV 10 Low (Best Estimate €486M) €101M • Po Valley (Northern Italy) Badile drill Low • Play type: Inverted fault block; Best 46 +€385M Gas-condensate in Mesozoic (TD 4,200m) Best +132 Recoverable • 45km South West of analogous resource 673 Bscf “Malossa” gas fjeld High +495 • EIA recently approved Lacchiarella 2 • €22.6M (dry hole case) previously High +€1,259M NPV10 (Eurocent 31/cbm) Recoverable resource (bscf) ZIBIDO, OWNED 100% • Po Valley; Zibido is adjacent to Badile prospect • Play type: Downthrown fault terrace Gas/oil in Mesozoic (TD 5,600m) • Zibido P50 NPV10 €225M (Eurocent 31/cbm) Investor Presentation – Q3 2015 SLIDE 8

  9. Exploration assets: Morocco TENDRARA, OWNED 55% Tahaddart Mediterranean Power plant 2 x 400 • Continuity of the Algerian Triassic Province and Saharan Hercynian platform Oued El Makhazine 2 x 400 MW Dhar Doum • Eight blocks, 14,500km 2 acreage, seven wells drilled, fjve of which were gas bearing, 4 x 400 MW Al Wahda 2 x 400 MW Oujda two tested gas GME Atlantic • Multiple Tcf potential across multiple prospects / leads Tendrara Rabat SAMIR Raffjnery • CPR to be commissioned Casablanca Existing discovery I Existing discovery II Algeria Morocco Marrakech Gas Maghreb-Europe Pipeline (GME) Gas pipeline project in 2018 Investor Presentation – Q3 2015 SLIDE 9

  10. Building a mid cap Mediterranean gas company Strong thematic positioning News fmow Summary • Nervesa concession award • Balanced portfolio including European gas fundamentals Carbon consciousness and fjrst gas (2015) production • Pricing sheltered from oil price decline • Gas as bridge to low carbon future • Price upside from deteriorating • Oil Majors shifting to gas • Existing discoveries equivalent • Laura fjnancing / farm-in European / Russian relationship (Shell / BG merger) to 25 pence per share (mid- • Strong regional infrastructure • Badile permitting and case) farm-in (2015) • Multiple game changing • Tendrara fjrst appraisal exploration wells across Italy well (Q4 2015) Mediterranean and Morocco Gas • Q1 2016 Badile exploration well (NPV €486M) Strategy • Euro 26M cash balance • Producing the Laura fjeld • Organic and inorganic growth (NPV €40M) opportunities Regional geopolitics Growth opportunities • Building political momentum to • Vendor price expectations falling stimulate domestic production • Cash constrained peers, resulting • Pro-gas permitting process in Italy in opportunistic M&A and limited • Competitive fjscal terms competition for assets Investor Presentation – Q3 2015 SLIDE 10

  11. For more information please contact James Parsons, Chief Executive Offjcer j.parsons@soundoil.co.uk Detailed information on our investor website www.soundoil.co.uk Disclaimer: The investment mentjoned in this document may not be suitable for all recipients or be appropriate for their personal circumstances. The informatjon in this document is believed to be correct but cannot be guaranteed. Opinions constjtute our judgment as of this date and are subject to change without warning. This document is not intended as an ofger or solicitatjon to buy or sell securitjes. Past performance is not necessarily indicatjve of future performance and the value of investments may fall as well as rise and the income from them may fmuctuate and is not guaranteed. Investors may not recover the amount invested. Some securitjes carry a higher degree of risk than others. The levels and basis of taxatjon can change. The contents of this document have been prepared by, are the sole responsibility of, and have been issued by the Company. Investor Presentation – Q3 2015 SLIDE 11

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