Licence PL001, North Falkland Basin De-risked Prospects Next Door to Sea Lion

APPEX, 7th March 2013

2

Location & Licence Maps

3

The Prize FI Government Fiscal Take

0%

20

%40

%60

%80

%10

0%

(Source: Bernstein Research 2012)

Iraq

Kazakhstan

Nigeria

Algeria

Norway

Angola Congo

Brazil USA

UK

Falklands

• 26% CT & 9% Royalty

• High net-back to Licensees

• NPV10/BBL >$12 at $100/bbl oil price

• Sea Lion 2C 320 MMBO; NPV10 > $4.1 billion

4

Drilling History 1998 6 wells drilled, 5 encountered oil and gas shows. Both Argos wells had oil shows

All encountered a world class Early Cretaceous oil source rock up to 1,000m thick

Higher organic carbon content than North Sea oil source rocks

Estimate over 70 billion barrels of oil generated

No prospects tested within or below source rock

Gas discovery in Johnson indicated an additional older, deeper source rock

2010/2011 15 wells drilled; 7 exploration; 8 appraisal

Multiple successes: • 1 oil discovery, Sea Lion

• 2 oil & gas discoveries, Casper & Casper South

• 2 gas condensate discoveries, Beverley & Liz

CPRs attribute 396 MMB oil & 1.145 TCF gas 2C recoverable resources

Potentially a bypassed major oil province

5

Operating Conditions, NFB

(WOW – Waiting on Weather)

(Source: AGR)

2010/11 Operating Experience

• Water depths 400-500m

• Typical cost c.US $30m/well (@

$275K/day rig rate)

• Downtime for weather: 2 days/well

• Downtime for logistics: zero

WOW Vs. North Sea

6

Argos Licence 2011 CPR Prospect Overview

22 stratigraphic prospects

6 structural prospects

2.1 billion barrels Most Likely prospective resource; 7.3 billion barrels Upside

Since 2011,over 30 new prospects added. New CPR commissioned

7

Paleogeography

Upper Early Post-Rift

Time of deposition of Sea Lion sands Lower Early Post-Rift, pre-Sea Lion sands

8

GeoSeismic Section

Argos Eastern Graben Prospects

9

Argos prospects are analogues to Sea Lion stacked fans

ARG (Mar 2012)

RKH (Feb 2012)

10

Rhea

Stack MMBO

P90 66

P50 346

P10 1,198

11

Rhea Stack (Selene, Kratos D&E, Rhea & Poseidon B,C,D&E)

Selene

Kratos

Rhea

Poseidon

12

Helios

Stack MMBO

P90 61

P50 790

P10 2,990

13

Helios Maximum Fan Extent W – E Line

14

Big Metis - Poseidon

24,600 acres 8,730 acres

15

Tyche

6,029 acres

16

Big Selene

19,172 acres

17

Summary

Potential of Argos Licence PL001

• Adjacent to Sea Lion / A significant piece of Johnson – A Good Address

• Rich in sands and rich in prospects, supported by excellent 3D seismic data

• Several prospects with seismic anomalies similar to Sea Lion

• Vertical wells & simple side-tracks can test multiple targets

• Ongoing work is identifying significant additional prospectivity

Operating Environment

• Top Quartile Fiscal Terms

• Transparent & Supportive Business Environment

• Infrastructure & Logistics Established for Year-Round Operations

• Sea Lion Success will Stimulate Further Exploration