Investor Presentation Q3 2015 Slide 1 Investor Presentation Q3 2015 - - PowerPoint PPT Presentation

Slide 1 Investor Presentation Q3 2015

Investor Presentation Q3 2015

I T A L Y M O R O C C O

SMG Nervesa Zibido Badile Rapagnano Tendrara I Exploration Tendrara II Dora / Dalla Laura Producing / Development Assets Assets Low risk discoveries High upside exploration = Other Assets

Slide 2 Investor Presentation Q3 2015

Regional gas strategy

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Strong European gas fundamentals

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Building political momentum across the region to stimulate domestic demand

Balanced portfolio focused on game changing drills

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Tendrara appraisal wells Q4 2015 & Q2 2016

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Badile exploration well Q1 2016

→

Laura appraisal well

Strong funding position

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Supportive cornerstone investor with strong relationships across the Mediterranean

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First gas at Nervesa (2015) secures significant annual cash flows

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Strong liquidity

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Euro 17M deferred and contingent consideration (Indonesia)

Building a Mid-cap Mediterranean Gas Company

Slide 3 Investor Presentation Q3 2015

The Team

London Growth, funding, investor relations and compliance

5 PEOPLE · 1 EXEC · 4 STAFF

Rabat & Milan Subsurface, operations and permitting

21 PEOPLE · 2 EXEC · 13 STAFF · 6 CONTRACTORS

James Parsons

Chief Executive Officer

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23 years in Oil/Gas across Europe, South America and Central America

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12 years with Royal Dutch Shell

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Specialising in restructuring, funding and growing small listed upstream companies

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Strong background in upstream strategy, M&A and finance; qualified accountant

Luca Madeddu

Managing Director, Morocco

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25 years upstream experience across Europe, Asia and South America

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Reservoir geologist with extensive experience in production

• perations, field development,

petroleum/reservoir engineering and supply chain management

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Expertise in management of complex reservoirs

Leonardo Spicci

Managing Director, Italy

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25 years upstream experience in Europe, Kazakhstan and North Africa

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Reservoir geologist with extensive experience in production

• perations and petroleum/

reservoir engineering

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Former ENI Managing Director for Northern Italy portfolio

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Able to navigate Italian approval processes

Slide 4 Investor Presentation Q3 2015

Balanced Portfoilo

KEY ASSETS NPV10, MID-CASE / BEST ESTIMATE

(CPR underway) 2500 500 3 8 40 56 66 225 486 1000 1500 2000 Rapagnano Nervesa EUR M Laura SMG Dora/Dalla Tendrara Appraisal Zibido Badile Tendrara Exploration Portfolio Total TBC

*Excludes Nervesa II-side track (under evaluation)

TBC Cost Covering Production Low Risk Existing Discoveries

NPV 10 EUR 162M (Italy), plus Tendara TBC (Morocco)

High Upside Exploration

NPV 10 EUR 711M (Italy), plus multiple Tcf (Morocco)

Reward Risk Rapagnano Nervesa* Laura SMG Dora/Dalla Tendrara Appraisal (CPR underway) Zibido Badile Tendrara Exploration (CPR underway)

Slide 5 Investor Presentation Q3 2015

RAPAGNANO SITE

Rapagnano

Owned 100%

→ Marche region (Central Italy) → First gas achieved 15 May 2013 from the Sabbie reservoir → 11 years production remaining

Key Development Assets: Building Material Cash Flows

Nervesa

Owned 100%

→ Veneto region → Play type: anticline structure, multiple gas bearing Miocene sand intervals → (TD 1,500-1,800m) → 1st well drilled July 2013; expected to flow → 1.8 MMscf/d; first gas 2015 → Side-track on second well under evaluation

NERVESA SITE UP TO EURO 24M NPV 10* (BEST ESTIMATE EURO 8M)

*Excludes Nervesa II side track (under evaluation)

UP TO €4M NPV 10 (BEST ESTIMATE €3M)

Recoverable resource 1.3 Bscf 1P €2.9M 1P 0.8 2P +€0.5M 2P +0.3 3P +€0.4M 3P +0.2

Recoverable resource (Bscf) NPV10 (Eurocent 31/cbm)

Recoverable resource 8.5 Bscf 2P €8M 2P 3.0 3P +€16M 3P +5.5

Recoverable resource (Bscf) NPV10 (Eurocent 31/cbm)

Slide 6 Investor Presentation Q3 2015

Oued El Makhazine 2 x 400 MW Al Wahda 4 x 400 MW Dhar Doum 4 x 400 MW Oujda Casablanca Marrakech

M O R O C C O M E D I T E R R A N E A N A L G E R I A A T L A N T I C

Rabat Tahaddart Power 2 x 400 MW

Tendrara I Tendrara II

• ject

Online power station eb-Europe Pipeline

• ject

ducing / Development Assets xploration

Laura

Owned 100%

→ Gulf of Taranto (4km offshore, 200m water depth) → Play type: inverted fault block, gas in Pleistocene (MVD 1,300m) → Long reach deviated well from onshore → €16.2M well cost

Drilling Existing Discoveries (1 of 2)

Tendrara I & II

Owned 55%

→ First well Q4 2015 (£6M) to prove up to 200-300 Bscf recoverable resource → Key play type: Gas discovery with condensate - light oil shows in the Lower Triassic sequence (TD 2,600m); TAGI sand objective → Previous wells sub-optimally perforated → CPR underway

LAURA RESERVOIR MAP UP TO €65M NPV 10 (BEST ESTIMATE €40M)

Recoverable resource 25.6 Bscf 1C €27M 2C +€7M 1C 12.3 3C +€24M 3C +7.2 2C +1.9 Prospective €6M Prospective +4.2

Recoverable resource (Bscf) NPV10 (Eurocent 31/cbm)

Slide 7 Investor Presentation Q3 2015

Dora / Dalla

Owned 100%

→ Adriatic Sea (21km offshore) → Play type: faulted anticline, gas-condensate in Scaglia Formation (TD 1,400m) → Dora gas discovery previously drilled 1972, tested 20MMScf/d → €13M well cost → Exploration potential from Dalla prospect

Drilling Existing Discoveries (2 of 2)

Santa Maria Goretti

Owned 100%

→ Marche Region (Central Italy) → Play type: inverted fault block, gas in Pleistocene (TD 3,800m) → Southern

• f two producing gas fields

→ €8.5M well cost (dry hole)

DORA / DALLA RESERVOIR MAP SMG RESERVOIR MAP UP TO €105M NPV 10 (BEST ESTIMATE €56M, AT EUROCENT 31/CBM) POTENTIAL >€81M NPV 10 (BEST ESTIMATE €66M)

Recoverable resource 67.7 Bscf Best +€36M Low €8M Best +23.7 Low 9.7 High +€61M High +34.4

Recoverable resource (Bscf) NPV10 (Eurocent 28/cbm)

Recoverable resource 74.5 Bscf 2C €19M 2C 17.6 3C +6.4 Low 8.9 Best +15.7 3C +€15M Low TBC Best €47M High TBC High +25.9

Recoverable resource (Bscf) NPV10 (Eurocent 31/cbm)

Slide 8 Investor Presentation Q3 2015

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)

Exploration Assets: Italy

Badile

Owned 100%

→ Po Valley (Northern Italy) → Play type: Inverted fault block; gas-condensate in Mesozoic (TD 4,200m) → 45km South West of analogous ‘Malossa’ gas field → EIA recently approved → €22.6M (dry hole case)

BADILE DRILL TARGET LACCHIARELLA 2 PREVIOUSLY DRILLED ZIBIDO 1 PROPOSED LOCATION ZIBIDO RESERVOIR MAP BADILE RESERVOIR MAP UP TO €1,745M NPV 10 (BEST ESTIMATE €486M)

Recoverable resource 673 Bscf Low €101M Best +€385M Low 46 Best +132 High +€1,259M High +495

Recoverable resource (Bscf) NPV10 (Eurocent 31/cbm)

Slide 9 Investor Presentation Q3 2015

Exploration Assets: Morocco

Oued El Makhazine 2 x 400 MW Al Wahda 4 x 400 MW Dhar Doum 4 x 400 MW Oujda Casablanca Marrakech

M O R O C C O

W E S T E R N S A H A R A

M E D I T E R R A N E A N A L G E R I A A T L A N T I C

Rabat Tahaddart Power 2 x 400 MW

Tendrara I Exploration Tendrara II Exploration

Tendrara

Owned 55%

→ Continuity of the Algerian Triassic Province and Saharan Hercynian platform → Eight blocks, 14,500km2 acreage, seven wells drilled, five of which were gas bearing, two tested gas → Multiple Tcf potential across multiple prospects / leads → CPR underway

Slide 10 Investor Presentation Q3 2015

Building a Mid Cap Mediterranean Gas Company...

Summary

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Balanced portfolio including production

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Existing discoveries equivalent to 25 pence per share (mid-case)

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Multiple game changing exploration wells across Italy and Morocco

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Strong funding position

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Organic and inorganic growth opportunities

News flow

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Nervesa concession award and first gas (2015)

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Laura financing / farm-in

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Badile permitting and farm-in (2015)

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Tendrara first appraisal well (Q4 2015)

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Q1 2016 Badile exploration well (NPV €486M)

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Producing the Laura field (NPV €40M)

...with strong thematic positioning

Mediterranean Gas Strategy

Regional geopolitics

Building political momentum to stimulate domestic production Pro-gas permitting process in Italy Competitive fiscal terms

Growth opportunities

Vendor price expectations falling Cash constrained peers, resulting in opportunistic M&A and limited competition for assets

Carbon consciousness

Gas as bridge to low carbon future Oil Majors shifting to gas (Shell / BG merger)

European gas fundamentals

Pricing sheltered from

• il price decline

Price upside from deteriorating European / Russian relationship Strong regional infrastructure

Slide 11 Investor Presentation Q3 2015

For more information please contact:

James Parsons Chief Executive Officer j.parsons@soundoil.co.uk

Detailed information on our investor website:

www.soundoil.co.uk

Disclaimer: The investment mentioned in this document may not be suitable for all recipients or be appropriate for their personal circumstances. The information in this document is believed to be correct but cannot be guaranteed. Opinions constitute our judgment as of this date and are subject to change without warning. This document is not intended as an

• ffer or solicitation to buy or sell securities. Past performance is not necessarily indicative of future performance and the value of investments may fall as well as rise and the income

from them may fluctuate and is not guaranteed. Investors may not recover the amount invested. Some securities carry a higher degree of risk than others. The levels and basis of taxation can change. The contents of this document have been prepared by, are the sole responsibility of, and have been issued by the Company.

Milan Rome Venice High pressure gas pipeline network ITALIAN HIGH PRESSURE GAS PIPELINE NETWORK MOROCCAN GAS PIPELINE NETWORK

Oued El Makhazine 2 x 400 MW Al Wahda 4 x 400 MW Dhar Doum 4 x 400 MW Oujda Casablanca Marrakech

M O R O C C O

W E S T E R N S A H A R A

M E D I T E R R A N E A N A L G E R I A A T L A N T I C

Rabat Tahaddart Power 2 x 400 MW

Tendrara I Exploration Tendrara II Exploration

Slide 12 Investor Presentation Q3 2015

Strong Regional Infrastructure