CORPORATE PRESENTATION FEBRUARY 2018 · With a BEng and an MSc in investment analysis, Edward has...

C O R P O R AT E P R E S E N TAT I O N F E B R U A R Y 2 0 1 8

Investor Presentation February 2018

DISCLAIMER

This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any

part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or constitute

an invitation or inducement to engage in investment activity under section 21 of the UK Financial Services and Markets Act 2000.

No representation or warranty, express or implied, is made or given by or on behalf of the Company, its advisers or any of their respective parent or

subsidiary undertakings or the subsidiary undertakings of any such parent undertakings or any of the directors, officers or employees of any such person as

to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any

person for such information or opinions. No person has been authorised to give any information or make any representations other than those contained in

this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorised. The contents of this

Presentation are not to be construed as legal, financial or tax advice. The information has not been verified nor independently verified by the Company’s

advisers and is subject to material updating, revision and further amendment.

Forward-Looking Statements. Information contained in this Presentation may include 'forward-looking statements'. All statements other than statements of

historical facts included herein, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of

management for future operations (including development plans and objectives relating to the Company's business) are forward-looking statements.

Such forward-looking statements are based on a number of assumptions regarding the Company's present and future business strategies and the

environment in which the Company expects to operate in future. Actual results may vary materially from the results anticipated by these forward-looking

statements as a result of a variety of factors. These forward-looking statements speak only as to the date of this Presentation and cannot be relied upon as

a guide to future performance. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-

looking statements contained in this Presentation to reflect any changes in its expectations with regard thereto or any change in events, conditions or

circumstances on which any statement is based.

The Company’s ordinary shares have not been registered under the US Securities Act of 1933, as amended (the Securities Act) and may not be offered or

sold in the United States absent registration or an exemption form the registration requirements of the Securities Act. No public offering of the ordinary

shares is or will be made in the United States. In addition, the Company’s ordinary shares have not been and will not be registered under the applicable

laws of Australia, Canada, Japan and South Africa and, subject to certain exceptions, may not be offered or sold within Australia, Canada, Japan or South

Africa or to any national, resident or citizen of Australia, Canada, Japan or South Africa.

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SNAPSHOT

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Proven team

European focused

A I M t r a d e d o i l a n d g a s i n v e s t m e n t c o m p a n y f o c u s e d o n h i g h i m p a c t o n s h o r e a n d s h a l l o w o f f s h o r e E u r o p e a n o p p o r t u n i t i e s w i t h s h o r t t i m e l i n e s t o p r o d u c t i o n

Mult ip le Value Tr iggers in 2018

Portfo l io of latestage projects

Rapid Growth in 2017

• 3 a c q u i s i t i o n s • 2 w e l l s d r i l l e d• 2 g a s d i s c o v e r i e s

H i g h l y e x p e r i e n c e d t e a m w i t h p r o v e n v a l u e c r e a t i n g c r e d e n t i a l s

• T e s o r i l l o P r o j e c t i n S p a i n w i t h a u d i t e d g r o s s u n r i s k e dP r o s p e c t i v e R e s o u r c e s o f 8 3 0 B c f o f g a s

• P o d e r e G a l l i n a E x p l o r a t i o n P e r m i t i n t h e P o V a l l e y , o n s h o r e n o r t h e r n I t a l y w h i c h h o l d s t h e h i s t o r i c S e l v a g a s f i e l d

• E I V - 1 S u c e a v a C o n c e s s i o n , R o m a n i a w h i c h h o l d s t h e B a i n e t g a s d i s c o v e r y

• F i r s t p r o d u c t i o n i n R o m a n i a• F l o w t e s t i n g i n I t a l y• W o r k p r o g r a m m e i n S p a i n• D r i l l i n g a c t i v i t y• A c q u i s i t i o n s


TEAM

Edward DawsonCEO & MD

With a BEng and an MSc in investment analysis, Edward has over 15 years' experience in the oil and gas sector. He has financed,managed and been a key investor in several oil and gas companies. Positions held include: MD of Peppercoast Petroleum plc andBlack Star Petroleum plc; Analyst for RAB Capital's Energy Fund; Business Development and Finance Manager for Oilexco Incorporated; and a fund manager for Park Place Capital.

Bill SmithNon-Executive Chairman

Bill is a director of a number of listed and private companies including: Orca Exploration Group (TSXV); Mosaic Capital Corporation (TSXV); PFB Corporation (TSX). He holds a license to practice law in Alberta and was a senior partner at McCarthy Tetrault LLP in Canada. He has extensive corporate experience including a number of start-up ventures in the oil and gas sector.

Richard MaysNon-Executive Director

Richard is a solicitor in Scotland and has extensive industry, commercial and legal experience. He is VP and General Counsel atCanadian Overseas Petroleum Limited (TSX and FTSE) and has leadership and senior management experience of other LSE listed companies, including DEO Petroleum plc and Oilexco North Sea Limited. He has also served as Executive Chairman of Peppercoast Petroleum plc and Black Star Petroleum plc. Formerly Professor and Deputy Dean of the Aberdeen Business School.

James SmithNon-Executive Director

James holds a MSc in Petroleum Geology and has over 25 years’ experience in the oil and gas sector. Having started his career as a petroleum geophysicist with Chevron UK in 1988, he became Vice President of Exploration for PanOcean Energy (‘PanOcean’) and in this capacity was instrumental in building the value of PanOcean from US$20m to its eventual sale to Addax Petroleum for US$1.4 billion in 2006. He has extensive experience in exploration, appraisal and development, with proven success in finding oil, delivering positive, high impact results and ultimately building value.

Carlos VenturiniExploration Manager

Carlos is a geologist (BSc) with an MSc in structural geology and over 25 years’ experience in geophysical interpretation and oil prospect generation gained with Schlumberger, ENI, Sipetrol, and from his own Libya-based consultancy working for Petrobras, GDF, OMV amongst others. He is an expert in Mediterranean and African petroleum geology.

Peter ElliottBusiness Development

Peter holds a degree in geology and an MSc in petroleum geology. He has 22 years’ experience in the international oil and gas industry working in new ventures and business development, most recently building oil company JVs in West Africa, including Senegal AGC, Liberia and Equatorial Guinea. He has also managed exploration contracts and work programmes.

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Major Shareholders %*

B Hale - 3.2%

Bill Smith 0.8%

James Smith - 0.3%

Edward Dawson 0.2%

Richard Mays 0.2%

T I C K E R M A R K E T C A P S H A R E P R I C ES H A R E S

I N I S S U EJ O I N T B R O K E R S N O M A D

P X O G . L £ 7 . 4 m 0 . 6 1 p 1 , 2 1 3 , 5 9 3 , 1 3 6P e t e r h o u s e &

B e a u f o r t S e c u r i t i e s

S t r a n d H a n s o n L t d

6 month Share Price Graph

KEY DATA

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As at 22.01.2018

*Management hold 95,584,220 options representing 7.8% of the enlarged issued share capital

£0.20

£0.30

£0.40

£0.50

£0.60

£0.70

£0.80


Uti l ise Team’s proven track

record of creating

value*

Take advantage of present industry opportunities

in Europe with a preference for:

Createtangible value in core

projects within 12 months

Maximiseimpact of capital;

balance risk/reward

* 2013 Peppercoast Petroleum: divested LB-13, an offshore Liberia exploration block for $107m - now in the hands of Canadian Overseas (17%) and ExxonMobil (83%); 2014 Black Star Petroleum: Guinea Bissau 4B (800m barrel lead/prospect) and Namibia 2913B, the follow on vehicle sold to Impact Oil and Gas for £5.1m - up 90% from summer 2013 raise** The full investment policy is available on the Company’s website

+ + + +

STRATEGY

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+

Bui lda sizable portfolio of

oil and gas holdings

+

TransformBecome an operator in own right.

Move from an investment company to fully fledged E&P company**

• late stage, drill-ready exploration; or

• reworking of existing fields and “failed” exploration using technology


PORTFOLIO

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Focused on the Foredeep play, which Prospex successfully tested in 2017 with two gas discoveries

Italy17% Interest in PodereGallina Exploration Permit

Romania50% Interest in 1,734 sq km Exploration Area of the EIV-1 Suceava Concession

SpainUp to 49% Interest in Tesorillo Project

Multiple targets, including the Selva

Gas-Field, which historically

produced 83Bcf and was

successfully tested by the Podere

Maiar-1d well in Q4 2017

Includes the Bainet gas discovery

which is due to come online in H1

2018, the Granicesti SE-1

discovery, and multiple prospects

and leads

Contains a gas discovery with

audited gross unrisked

Prospective Resources of 830 Bcf

and upside of over 2 Tcf


THE FOREDEEP PLAY

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Foredeep basins typically host Tertiary turbidite sandstone reservoirs at the foothills of the Alpine systems in central and southern Europe


FOREDEEP BASINS HC sourcing and trapping

Reservoir/source pairs can have different positions around FAT belts.Often have turbidite sequences (flysch) that prograded from hinterland to foreland.Source rocks are shallow and typically BIOGENIC.Optimum for HC generation and entrapment: they host biogenic source rocks and high porosity(30%) turbidite multi-pay reservoirs, sealed by same interlayered shales.

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hinterland foreland

PO VALLEY – ADRIATIC FOREDEEPCARPATHIANS – SLOVAQUIA BASIN

CARPATHIANS – FOCSANI BASINEXTERNAL BETIC FLYSCH TROUGH – TESORILLO


ITALY: PODERE GALLINA LICENCE

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Previously producing licence in the prolific

Po Valley region

Shut-in Selva gas-field produced 80+Bcf

1960 to 1984: successfully tested by the

Podere Maiar-1d well in Q4 2017

Location

Resource

Multiple targets identified

Considerable upside potential:29.1 to

40.6 BCFG prospective resources

assigned by CPR (Cembalina + Fondo Perino + East Selva)

Development

Cash flow targeted in the short term

Excellent infrastructure

Partners: PVE and United Oil & Gas plc

Monestirolo Field 0.7 Bcf Prooduced

BovaDiscovery

Malalbergo Field

Minerbio Field 0.49 TCF Produced.

Now gas storage CemballinaProspect

Selva Stratigraphic

East Selva

Fondo Pierino

Selva Field 83 Bcf Produced

Shut-in Gas Field

Producing Gas Field

ProspectSillaro Field (Saffron)

producing now


ITALY: PODERE MAIAR WELL

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Selva 5

High quality reservoir interval

Water bearing interval

Drilled into the Selva Gas-Field (previously operated by ENI) in Dec 2017

Two gas bearing sandstone reservoirs, C1 and C2, within the Porto Garibaldi Fm

of Medium-Upper Pliocene age

Total gross reservoir pay of 62m and net pay of 41m:

C2 is expected to be the primary producer

Results in line with extensive historic well data

Completed for production: flow testing on a rig-less basis to commence in

January 2018

Interval Top-Bottom(m TVD)

Perforation(m)

Flow Rates(3/8”)

Porosity(%)

Permeability(mD)

C1 (gas bearing) 1245-1260 2.5 4.5 MMscf/d 35.5

100-300 mD(excluding

shale)

C1 (water bearing)

(1260-1268) 35.5

Shale (1268-1276) N/A

C2 (gas bearing) (1276-1298) 8.5 5.3 MMscf/d 38.8

C2 (water bearing)

(1298-1308) 37.1

C1 reservoir

(gas)

C1 reservoir(water)

C2 reservoir

(gas)

shale

Modern CMR logs (PM-1)


ITALY: SUBSTANTIAL EXPLORATION UPSIDE

East Selva prospect on trend with Selva and Minnerbio fields

CPR by CGG indicates 35 Bcf recoverable

3D Seismic acquisition proposed

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SELVA-5

SELVA-22

A

A’

SELVA-6


ROMANIA: SUCEAVA CONCESSION

Climauti Well Head and tie in

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Location

Resource

Development

Located in a proven hydrocarbon basin in

North East Romania – Production Area

includes two producing gas fields, Climauti

and Dornesti South

Aggregate gross recoverable gas (un-risked)

of between 17 and 56 bcf using standard

probabilistic methods

Gas production from Bainet discovery targeted

for Q2 2018 by operator Raffles Energy S.R.L.,

an established gas producer in Romania


ROMANIA: BAINET GAS DISCOVERY

Bainet-1 Well drilled to a total depth of 600m and

encountered 9m of reservoir with 8m of net gas

pay

Good quality Sarmatian sandstone reservoir,

similar to that found in nearby producing fields

Natural gas containing over 99% methane flowed

at a rate of ~33,000 cubic metres/day through a

8mm choke during 11-hour test

Bainet 1 to be connected to the Raffles operated

Bilca gas processing plant in the adjoining EIII-1

Brodina Block via a 1,500m flowline tie back

Experimental production expected to commence in

Q2 2018, subject to permitting and approvals

Pre-drill Bainet was assigned internal gross

prospective resources of ~1.5bcf recoverable

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Bilca Gas Plant

Drilling rig at Bainet


ROMANIA: MULTIPLE PROSPECTS

Pipeline of low cost, low risk targets mapped on a 1,600km line 2D seismic grid, includes GrancestiSE-1 discovery:

flowed at 1.2MMscfpd during limited short test from the Sarmatian reservoir at a depth of ~550m

lies 1.5km from a high-pressure pipeline grid operated by Transgaz

Plan to workover and recomplete the well as a gas producer once land access secured

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ROMANIA: ADDITIONAL PROSPECTS IDENTIFIED

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Suceava offers significant scope to drill additional low cost, low risk wells targeting gas

To date four additional prospects and one lead have been identified by Raffles

Prospex estimates the aggregate gross recoverable gas (un-risked) in a range of between 17 and 56 bcf using standard probabilistic methods


SPAIN: TESORILLO PROJECT

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Location

Resource

Development

Covers 38,000ha in a proven hydrocarbon region in the Cadiz Province of southern Spain

Contains the Almarchal-1 discovery well

Upcoming work programme planned to further delineate and de-risk the Project's prospectivity

Excellent access to infrastructure:3.9 km from the North African Maghreb gas pipe line European landing point providing access to high priced European markets

CPR estimates gross unrisked Prospective Resources of 830 billion cubic feet of gas (Best Estimate), with upside in excess of 2 Tcf

GibraltarJust off map


SPAIN: ALMARCHAL-1 DISCOVERY WELL

Drillstem tests and log analysis confirm48m of proven gas pay from two MioceneAljibe Formation sandstone intervals

Further 492m of probable gas payinterpreted from logs

Located on a seismically delineated thrustramp anticline with closure areaexceeding 70 km2

Multi-TCF gas-in-place indicated in whatis thought to be a large by-passed gasfield

1957 Puerto de Ojen-1 well, 15km to theeast in Ruedalabola licence, displayedsimilar gas shows to Almarchal-1

Appears to be on a separate large thrustfeature but could not be tested formechanical reasons

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SPAIN: COMPANY-MAKING POTENTIAL

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In May 2015 Netherland Sewell and Associates independently certified an unrisked Prospective Resource of 830 Bcf of gas (best estimate) with upside of over 2 TCF for the TesorilloProject as outlined below:

Tesorillo Prospective Resource BCF (Gross) Original Gas In Place BCF (Gross)

LowEstimate (P90) 220 734

Best (Median)Estimate (P50) 830 1,661

HighEstimate (P10) 2,289 3,270

2018 programme to test known gas bearing sandstone sequences within a variant of the foredeep play that was successfully tested with two recent discoveries in Romania and in Italy


INVESTMENT CASE

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RAPIDLY GROWING PORTFOLIO OF LATE STAGE PROJECTS

COMPANY-MAKING RESOURCES

HIGH IMPACT NEWSFLOW IN H1 2018

ADDITIONAL UPSIDE

EXPERIENCED MANAGEMENT

• Podere Gallina Licence, Italy -includes historic gas field and new discovery

• Exploration Area of the EIV-1 Suceava Concession, Romania -includes two gas discoveries

• Tesorillo Project in Spain contains substantial gas discovery

• 830 Bcf gross unrisked prospective gas resources at Tesorillo (CPR)

• 29.1 and 40.6 Bcf prospective resources at Podere Gallina (CPR)

• Q1 2018: Flow testing of gas discovery in Italy

• Q2 2018: Commencement of gas production at Bainet discovery in Romania

• H1 2018: Work programme on 830Bcf gas discovery in Spain commences

• Multiple targets across portfolio and additional project pipeline being evaluated

• Proven track record of successfully identifying and advancing assets and generating significant value for investor


CONTACT DETAILS/ADVISERS

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PROSPEX OIL AND GAS PLC

Edward Dawson, Managing Director Tel: +44 (0) 020 3766 0325

STRAND HANSON ASSET MANAGEMENT (Nominated Adviser)

Rory Murphy / Ritchie Balmer / Jack Botros Tel: +44 (0) 20 7409 3494

PETERHOUSE CORPORATE FINANCE LIMITED (Joint Broker)

Duncan Vasey Tel: +44 (0) 20 7220 9797

BEAUFORT SECURITIES LIMITED (Joint Broker)

Jon Belliss

ST BRIDES PARTNERS (Financial PR)

Tel: +44 (0) 20 7382 8300

Frank Buhagiar / Charlotte Page Tel: +44 (0) 20 7236 1177


APPENDICES

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E&P VALUE & RISK CRITERIA

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Regions with proven working petroleum

systems

Favourable fiscal system with low

political risk

Resource materiality - scale for acquirers

and returns for shareholders

Line of sight catalysts for

value re-rating

Where technology can unlock latent

value

Clear monetisation opportunity after

value creation

Fit within the Investing Policy*

* The full investment policy is on the Company’s website


WIDER DEVELOPMENT PORTFOLIO

Providing strategic exposure to a range of upstream and downstream activities, offering further value uplift potential:

Hutton Poland

Prospex has a 49% interest in Hutton Poland, the 100% holderof the 1,150 sq km Kolo Licence, which is located in theproductive Polish Central Basin. A low cost well was drilledand spudded December 2016 but no recoverablehydrocarbons were indicated. Additional conventional gastargets and an oil target identified within the licence area.

MOL Hungarian Oil and Gas Public Limited Company (MOL)

MOL is an integrated oil and petrochemicals group, headquarteredin Budapest, Hungary, with operations in Romania, Serbia andSlovenia. The company has both upstream and downstreamoperations, providing Prospex with exposure to Central Europe’sstrong GDP growth rates, and is part of multinational oil and gascompany MOL Group

OMV Aktiengesellschaft (OMV)

OMV is the parent company of the OMV Group, an integrated groupof oil and gas companies headquartered in Austria. Its upstreamoperations are focused on Central Eastern Europe, the North Sea,and the Middle East & Africa. Its downstream operations havesignificant refining capacity, filling stations and a gas pipeline

network and storage facilities.

Elephant Oil Limited

Prospex holds a 2.54% interest in Elephant Oil, a UK basedoil exploration company with a focus on onshore WestAfrica. Elephant Oil’s primary asset is Block B, anexploration block in Benin, which Prospex believes hasmade good exploration progress and with continuedinterest, could generate significant value.

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