[PPT] - Investor Presentation January 2011 Contents Corporate strategy PowerPoint Presentation

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Investor Presentation

January 2011

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Corporate strategy

Aim Development Acquisitions Exploration

Fields that have

produced previously

Undeveloped discoveries
Producing assets with

significant upside

Leveraging technical

expertise

Conventional
Unconventional

Achieve production

Bring Well #201 on stream – on track for Jan 2011
Commence Well #1 on Chernetska - on track for Apr 2011

Short Term Medium term – increase reserve base

Commence second Well at Sorochynska – mid 2011
Progress one or more current acquisition targets

Medium Term

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Hawkley Oil & Gas – at a glance

Oil and gas development and exploration company with assets in Ukraine’s prolific

Dnieper Donets Basin

Extensive operating experience in Ukraine – over 100 years combined
2 licenses

– Both 100% owned with multiple targets – A number of new targets identified

120m* barrels (unrisked recoverable) in current licences
Successful well #201 – A producer

– One of the best wells drilled in Ukraine in years – Gas plant connection complete – Production imminent

Next well site preparation underway

– To be funded from cash flow

Extensive deal flow pipeline

* Source: Independent Technical Specialist’s Report, Moyes & Co

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SLIDE 5

E&P in Ukraine

Risk Mitigation Subsurface risk Assets with discovery/production history Title risk 100% ownership through state auctions Operational risk Operational control Route to market Close to infrastructure Commodity Price Long term contract prices, net-back parity

ASX Code HOG

Shares on Issue 211.7M Market Cap (Fully Diluted) AU$125 Cash (as at end Q4 2010) AU$650k Debt US$1m

Strategic focus on de-risking E&P Major Shareholders

Founders 33.55% Ballure (seed) 5.84% J.P Morgan Nominees 2.65% Citicorp Nominees 2.51%

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SLIDE 6

Board and Management Team

Experienced Management Team

Paul Morgan

Chairman Co-founder

35 years public company experience
14 years with Chevron Oil Company, qualified geologist
Former Chairman/CEO Regal Petroleum Plc Goldbelt Resources

Richard Reavley

Chief Executive Officer Co-founder

Over 10 years experience working in the London capital markets
Growth capital focus
Former director Goldbelt resources

David Riekie

Non-Executive Director

Currently MD of Avonlea Minerals
More than 14 years experience as an Executive Director
Experience in the resource sector at the exploration and production level

John Hopkins

Non-Executive Director

Corporate Lawyer with 20 years public company experience in Australia and Canada
Currently Chairman of ASX listed Wolf Minerals
Significant major resource project experience

Viktor Dmitriyev

President Ukrainian operations Co-founder

25 years in the Oil Industry.
Chief Engineer of Ukranafta (Ukrainian State Oil and Gas Company).
Former President of Regal Petroleum (Ukraine) Limited.

Sergey Galchenko

Chief Geologist

25 years in the Petroleum Industry in Ukraine.
Graduate in Geophysics from the University of Kiev.
Former Chief Geologists of Chernigivnaftagasgeology.

John Garden

Drilling and Completions

Founder and Director of Deadeye Engineering
Drilled in excess of 600 wells In Central and Eastern Europe
Drilled in excess of 500 horizontal wells

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SLIDE 7

Ukraine

Huge potential 24tcf undiscovered resources in the basin Strong domestic demand 2.6tcf/year – Europe’s 4th largest gas market 700 bcf/year produced in Ukraine Rising prices Currently US$9.20 gross/ US$7.70 net per mcf Parity pricing with Europe approaching Extensive infrastructure One of the world’s largest gas transportation networks Attractive fiscal terms Typical EBITDA margins 55 - 65% Typical NOPAT margin 38 – 45%

A modern European country with a clear policy to attract foreign oil and gas investment and expertise 7

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Operating in Ukraine

Earnings Analysis Typical breakdown at current prices Assuming 800boepd, of which 80% gas, 20% condensate 1 boe : 6mcf Successful Ukrainian Operators Operational control Clean title 100% ownership of assets Strong Ukrainian team on the ground Blend of local and western expertise

US$ / boe

Market Market Cap US$ millions Production boepd Earnings multiple LSE 750 12,500 8.7 JKX Oil and Gas A good example of what is achievable in Ukraine

20 40 60 Gross Revenue VAT Net Revenue Rent Geological Survey Tax Subsurface Tax Operating Costs Overheads EBIT Corp tax Earnings

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SLIDE 9

License 1 - Sorochynska

Licence Interest

100%

Acquired

August 2007

Licence Duration

5 Years

Licence Area

104.6 km2

Wells Drilled

9

Production Wells

2

Production Market

Local Pipeline

* Source: Independent Technical Specialist’s Report, Moyes & Co * *Subject to revision following well #201 completion

Reserves *

13.6 bcf gas** 400,000 bbls condensate**

Resources *

203.4 bcf gas 5.2 million bbls condensate

Close to major trunkline, multiple targets, production history

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SLIDE 10

License 1 - Sorochynska

B18 horizon

7.6bcf gas 248,000 bbls condensate Up to 12.8mmcfgpd (well #469)

B17, 19, 20 horizons

New prospect identified Productive in nearby fields

B24/25 horizon

Limestone 2 faulted blocks Drilled and flowed gas

Production profile – Well #110 Production profile – Well #469

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Sorochynska – Production

Well #469

Previous production (1983-88) Gas - 4.5 bcf Condensate - 130,000 bbl Up to 12.5mmcfgpd

Well #110

Previous production (1989-91) Gas - 3.1 bcf Condensate - 118,000 bbl Up to 4.5mmcfgpd

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Choke Size Gas Condensate Total mm thousands cubic feet Barrels Barrels of Oil Equivalent* 8 10,389 296 2,028 9 12,570 392 2,488 10 15,003 616 3,117 11 17,678 836 3,782 12 19,284 878 4,092

Well #201 – Commercial test results

Sales Gas/ millions

f cubic feet per day

8.0 10.0 12.0 15.0 Condensate barrels per day 200.0 300.0 400.0 600.0 Gross Revenue US$ per annum 32.2 41.9 51.6 67.8

Expected Gross Revenue Outcomes of Various Production Scenarios

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Project Schedule - Sorochynska

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2011 2012

Mobilisation Drilling Testing Demobilisation Completion Production Permitting Connection

Sorochynska Well #202 Sorochynska Gas Plant

Cost $7.5m $2.0m

Further Well(s) to be drilled this year at Sorochynska subject to realised revenue from Well #201

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License 2: Chernetska

Licence Interest

100%

Acquired

July 2007

Licence Duration

5 Years

Licence Area

51.7km2

Wells Drilled

6

Production wells

3 tested at commercial rates

Production Market

Local Pipeline

* Source: Independent Technical Specialist’s Report, Moyes & Co

Resources *

378.8 bcf gas 15.1 million bbls condensate

Trunkline intersects the property, discovery history, multiple targets

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Chernetska

Surrounding fields producing from B21/22, B24/25, B26 horizons B24/25

3 wells tested for gas

B-20

1 well flowed oil – 640bbls per day

Well #1 commencing Q1 2011: 4 Conventional Horizons

B20, B21, B26 - Oil B24/25 - Gas

1 Unconventional Horizon

High pressure gas in carbonaceous shale

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SLIDE 15

Project Schedule - Chernetska

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Mobilisation Drilling Testing Demobilisation Completion Production

Chernetska Well #1

Plans to spud Well #1 in Q1 2011

― Well plan – approved ― Environmental approval - granted ― Land access - granted ― Drilling contract – completed ― Pipe, casing, mud, additives, drilling bits etc, contracts and supply – in progress ― Site preparation – commenced

Chernetska Well #1 to be funded from cash flow from the production of Sorochynska Well #201 Cost $10.0m

2011 2012

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Summary

A clear strategy to become a leading

independent E&P company – Development – Acquisition – Exploration

Imminent production
Development wells planned
Next well targeting multiple zones
Further growth targets identified

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SLIDE 17

Summary

Hawkley find one of the best for a junior in years

Barry FitzGerald November 29, 2010 All the signs are positive as the ASX-listed company's Ukrainian oil and gas

perations exceed expectations.

THERE is a bit of excitement building over the results being achieved by ASX- listed Hawkley Oil & Gas (ASX: HOG) in the Dnieper-Donets Basin to the east of Kiev in the Ukraine. Notwithstanding the recent run in the group's share price from 14.5¢ on November 1 to 26¢ a share on Friday, the success that Hawkley has notched up with the drilling of the Sorochynska #201 well is yet to be fully appreciated by the market. That's because the results suggest Hawkley - currently valued by the market at $55 million - has quite possibly made one of the best finds by a junior oil and gas company in the last five years or so. As noted by Garimpeiroback in March, Hawkley is the renamed and redirected immunology research and development company Incitive. Its Ukraine oil and gas push involved an entry into the Sorochynska and Chernetska oil and gas fields in the Dnieper-Donets Basin, where there is a long production history and a government that is keen as mustard to encourage more production to help deal with the country's debt

woes. More to the point, Hawkley is applying state-of-the-art well

engineering techniques to achieve better results from known fields like Sorochynska and Chernetska than achieved by others in the past. Results from the Sorochynska #201 well have exceeded the company's

expectations. Instead of the expected daily flow of 4 million cubic feet
f gas and 120 barrels of condensate (light oil), the well (on a nine

millimetre choke size) has come in at 12.5 million cubic feet of gas and close to 400 barrels of condensate. With the help of Europe's high gas prices, those sorts of flows would be worth about $US150,000 a day or close to $US55 million annually. Just as important is that the field lies just nine kilometres from a local gas plant, with a linking pipeline already under construction. Cash flows from production are to be used to improve the Ukraine business, with a well now planned for Chernetska early in the new year. If that comes in too, a market rerating of the stock will be on for sure.

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Hartleys Initiate Coverage Valuation $1.14

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Contact information

Australia 45 Ventnor Avenue, West Perth Western Australia T: +61 8 9429 8803 F: +61 8 9429 8800 E: theal@hawkleyoilandgas.com Ukraine Boulevard Tarassa Shevchenka 35 Kyiv 01032 Ukraine T: +380445697418 F: +380445697416 E: office@primegas.com.au www.hawkleyoilandgas.com 18

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Disclaimer

This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that Hawkley Oil and Gas Ltd believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend” and statements that an event or result “may”, “will”, “can”, “should”, “could”, or “might” occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Hawkley Oil and Gas Ltd based on information currently available to Hawkley Oil and Gas

Ltd. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from

time to time in filings made by Hawkley Oil and Gas Ltd with securities regulatory authorities, that may cause the actual results of Hawkley Oil and Gas Ltd to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Hawkley Oil and Gas Ltd. Hawkley Oil and Gas Ltd expressly disclaims any obligation to update or revise any such forward-looking statements. Not for distribution to United States newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.

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