Inves estor P Presen enta tati tion December 2 2019 Oil-Focus used ed, B , Balanced ed Po Portfolio io Pur Pure e Pl Play Delivering both steady productio ion growth and high impact explo loratio ion Feb ebruar uary 2 2020 0
PetroTal H l Highlights A full-cycle, sustainable E&P enhanced by an accretive, synergistic acquisition Fu Full-Cycle le, Hi High-Imp mpact E& E&P Co Company in in Peru ru Block 192 ■ Peruvian E&P, benefiting from stable, pro-business fiscal regime Block 8 ■ Second largest crude oil producer in Peru, developing towards plateau production with high impact exploration Iquitos PS#1 Talara Block 95 El MIlagro Bretaña Field Bre retaña bro rought on-stre ream under budget get and nd ahe head of sche hedule Yurimaguas Bayovar ■ 2019 exit rate of 13,300 bbl/d oil, with clear line of sight to 20,000 bbl/d oil by end of 2020, funded from free cash flow Pucallpa LEGEND Block 107 Lima –Pucallpa Road ■ Recent 18% upgrade of 2P reserves to 46.4 mmbbl by NSAI 1 River System PetroTal Oil Pipe Gas Pipe o 11% increase in 2P OOIP to 364 mmbbl Pump Station o 13% increase in 2P recovery factor to 13.2% PetroTal Blocks Blocks under Contract Lima Area Approved for TEA- Contract ■ Bretaña operating netbacks increase with production: Area in Negotiation Blocks in Simplified Process TEA = Technical Evaluation Agreement Production Rates @5,000 b/d @10,000 b/d @15,000 b/d Br Brent $65.00 $65.00 $65.00 minus Quality Discount ($6.86) ($5.92) ($5.62) Bretaña Oil Production by Quarter minus Marketing Fee ($3.00) ($3.00) ($3.00) 900,000 minus Royalty* ($2.36) ($2.73) ($3.10) 800,000 minus Lifting Costs ($10.00) ($5.20) ($4.40) Quarterly Oil Production (BBL) minus Transportation ($10.94) ($11.97) ($12.31) 700,000 Operating ng N Netbacks $31.84 $36.18 $36.58 600,000 (*) Royalty rate of 5% at 5,000 bbl/d; 5.8% at 10,000 bbl/d, and 6.6% at 15,000 bbl/d 500,000 400,000 Robust finan Ro ancial ials and nd stro rong fre free cash sh flo flow generat atio ion 300,000 200,000 ■ No existing debt and fully funded 2020 development program 100,000 ■ Maiden dividend paid in January 2020 – policy to maintain regular dividends 7 0 1Q’20 E 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 1) NSAI CPR as of December 31, 2019 based on 2019YE Brent strip prices Note: In this presentation, all reserves and NPV10 values are based on 2019YE Brent strip prices. 1
ESG ESG Empowering local communities and promoting sustainable development for unlocking the value of our assets ENVIRONM NMENT NTAL SOCIA IAL GOVE VERNA NANC NCE Breteña pad (7.9ha) – single well pad Projects to encourage and mentor 9 full time CSR employees, 4 full and no encroachment on primary sustainable local development time HS employees, and 5 full time rainforest 1 o Fabrication of new pontoon dock environmental and permits o $2.3 million annual budget 3 employees 5 Land cleared in 2012, direct access dedicated to social efforts from river 1 manager of Government relations o Development project scoping and and 1 manager of communications 5 No spills or pollution 2 engineering assistance HSE and CSR team with +200 years Multiple programmes to preserve local Significant local employment of combined experience bio-diversity as well as flora and fauna o 100 employment positions split Active and consistent social and over 355 people, or 15% of total o Agreement with Sernamp for environmental investment local workforce 4 Pacaya-Samiria National Reserve programme, focused in empowering Working with a network of NGOs, o San Matías–San Carlos Forest the local communities producers, and local and central Reserve We have implemented a Claims and government organizations o Oxampampa-Ashaninka-Yanesha Response System to address any Helping indigenous communities and Biosphere Reserve issues with the local communities organizations CSR, HS and Environment are part of the Key Performance Indicators of all employees and management Commitment at Board level. HSE & CSR Committee approves the policies, and the Board directs ethos and controls 1, 2 , 3, 4, 5, 6) See Endnotes 2
Pe Peru – Stab able, e, Pr Pro-Busines iness and and Tax ax-Friendly dly Talara R Refinery: K Key Market f for or Br Bretaña O Oil Stab St able & Growin ing Pro ro-Bu Busi siness ss Co Country ■ – Peru is one of the fastest growing economies in Latin America. Since 2000, it achieved an impressive accumulated growth rate of 147.3% GDP 1 – Democratic, investment grade government with stable/positive outlook: A3 (Moody’s) / BBB+ (S&P and Fitch) – Standardized contracts signed into law by supreme decree – Excellent fiscal/royalty terms and tax regime • Royalty 5-20% based on production (est. 8.25% at peak) • Corporate tax 32% ($305 million in NOL’s to offset tax liability for next 4-5 years) ~$3B expansion & upgrade, expected completion 2021 Establi lishe hed Oi Oil & Gas as Industr try ■ Peru Oi Oil Consumpt ption 2 – Domestic production during 2019 of 139.7k b/d with domestic consumption of 267k b/d – Established infrastructure with capacity and transparent pricing – Operators include Pluspetrol, CEPSA, CNPC, Repsol, Hunt, Frontera, Perenco, Ecopetrol, Occidental, Tullow, Shell, GeoPark – Oilfield services: Baker Hughes, Sertecpet, Halliburton, Schlumberger, Weatherford, ENI / Petrex 1) E&Y 2020 Peru Oil and Gas Industry 2) 2020 BP Statistical Review of World Energy 3
Inves estor P Presen enta tati tion December 2 2019 Bretaña aña Fiel Field Oil-Focus used ed, B , Balanced ed Po Portfolio io Pur Pure e Pl Play Delivering both steady productio ion growth and high impact explo loratio ion 4
Bretaña Fiel aña Field Profitable oil field with high netbacks and significant upside potential Asse sset Overvi view 3P Plateau A Above 1 10,0 ,000 bbl bbl/d L Lasting 9 9 Years 100% owned Bretaña Field, located in Block 95, in 100 ■ the Marañón Basin, north east Peru On trend with the prolific Marañón Basin, across ■ 10 Peru, Ecuador and Colombia, which has produced Mbbl/d 9 years a above 1 e 10,000 b 000 bb/d more than 2.88 billion barrels to date Pr Produ duction 1 2019 exit production of 13,300 bbl/d ■ Cumulative Oil Production to YE2019: 1.68 mmbbl 0.1 ■ 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 8x increase in output over <10 months o History 2P 3P Reserves S Summary a and E Econ onom omic M Metrics 1 Targeting 2020 exit oil rate production of 20,000 o bbl/d from ten horizontal wells, and two water OOIP P Reser serves es Reco covery Net Net-to G o Gros oss YE R Reser serve e Catego gory disposal wells (mmb mmbbl) (mmb mmbbl) Facto tor Pay ( ay (Est.) 4 Incr crease Fully financed $99 million 2020 capital plan 1P 1P 235 20.1 9.3% 56% 12% ■ 2P 2P 364 46.4 13.2% 72% 18% Reserves 3P 3P 579 82.4 14.5% 92% 5% 2P reserves of 46.4 mmbbl ■ Significant upside through increased recovery, NPV a at 1 10% F& F&D C Costs RLI LI o Catego gory ($mm) ($bbl bbl) ($mm) ($/bbl bbl) (yea ears) s) supported by analogue fields in Blocks 8 and 192, which have achieved recoveries of +20% 1P 1P $280 $13.93 $123 $13.09 7.2 2P 2P $722 $15.56 $192 $5.38 16.6 High netback of ~$36/bbl with Brent at $65/bbl o 3P 3P $1,194 $14.49 $295 $4.11 29.4 1) NSAI CPR as of December 31, 2019 based on 2019YE Brent strip prices Note: In this presentation, all reserves and NPV10 values are based on 2019YE Brent strip prices. 5
Bretaña’s aña’s Inc Increas easing ing OOIP IP and and Rec. F Fac actor E Estim imat ates es Though Management always guides to the 2P case, the 2020 drilling campaign will help define the true OOIP ■ In general, the new wells came in with 1P 1P: 235 235 m mmbbl 2 2P: 364 mm mmbbl 2 3P: 579 m mmbbl bbl 2 reservoir thickness and quality at or in excess of NSAI’s expectation ■ NSAI’s understanding of true water saturation within the reservoir is the biggest outstanding uncertainty in our current characterization of reservoir parameters. As a result, a broad range in both Net-to-Gross water saturations are carried between the low, mid and high cases ■ The 2P recovery factor has increased from 12% to 13.2%. However, based on the prior OOIP of 329 mmbbl, the recovery factor would be 14.6% ■ Analog fields in region 1 with similar reservoir characteristics have achieved >20% recovery factors. Field API Gravity OOIP mmbbl EUR/2P mmbbl Recovery Factor Bretaña 19.4 .4° 364 48.0 .0 13.2 .2% Capahuari N. 35.2° 48 20.0 41.7% Shiviyacu 20.2° 331 120.8 36.5% Carmen 19.7° 45 13.5 30.0% Yanayacu 19.0° 65 23.6 36.3% San Jacinto 12.5° 209 46.3 22.2% Jibaro/Jibarito 10.8° 414 103.2 24.9% 1) January 2014 Maximum Recovery Efficiency reports for Blocks 8 and 1AB (now 192), submitted by Pluspetrol to Perupetro 6
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