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PANCONTINENTAL OIL & GAS NLPANCONTINENTAL OIL & GAS NLKENYA PROJECTS

March2012March 2012

AUSTRALIAAUSTRALIACANNING BASIN• EP 104 / R1• L15NAMIBIA

WALVIS BASIN• EL 0037

AUSTRALIACARNARVON BASIN

EP 424

KENYALAMU BASIN• L6• L8• L10A

EL 0037

• EP 424• EP 110

• L10A• L10B

DisclaimerThese materials are strictly confidential and are being supplied to you solely for your information and should not be reproduced in any form,redistributed or pass on, directly or indirectly, to any other person or published, in whole or part, by any medium or for any purpose. Failure tocomply this restriction may constitute a violation of applicable securities laws.

These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for,These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for,or any offer to underwrite or otherwise acquire any securities, nor shall any part of these materials or fact of their distribution or communicationform the basis of, or be relied on in connection with, any contract, commitment or investment decision whatsoever in relation thereto. Theinformation included in the presentation and these materials is subject to updating, completion, revision and amendment, and such information maychange materially. No person is under any obligation to update or keep current the information contained in the presentation and these materials,and any opinions expressed in relation thereto are subject to change without notice.

The distribution of these materials in other jurisdictions may also be restricted by law, and persons into whose possession these materials comeshould inform themselves about, and observe, any such restrictions.

This presentation includes forward-looking statements that reflect the company’s intentions, beliefs or current expectations. Forward lookingstatements involve all matters that are not historical fact. Such statements are made on the basis of assumptions and expectations that theCompany currently believes are reasonable, but could prove to be wrong. Such forward looking statements are subject to risks, uncertainties andassumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects oropportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, theseforward-looking statements. Important factors that could cause those differences include, but are not limited to: changing industry. Additionalfactors could cause actual results, performance or achievements to differ materially. The company and each of its directors, officers, employees andadvisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in the presentationadvisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward looking statements in the presentationor these materials, and any change in the Company’s expectations or any change in the events, conditions or circumstances on which theseforward-looking statements are based, expected as required by applicable law or regulation.

By accepting any copy of the materials presented, you agree to be bound by foregoing limitations.

h h il d j i b d i f i il d b h hThe summary report on the oil and gas projects is based on information compiled by Mr R B Rushworth, BSc, MAAPG,MPESGB, MPESA, Chief Executive Officer of Pancontinental Oil & Gas NL. Mr Rushworth has the relevant degree ingeology and has been practising petroleum geology for more than 30 years.Mr Rushworth is a Director of Pancontinental Oil & Gas NL and has consented in writing to the inclusion of theinformation stated in the form and context in which it appears.

2http://www.pancon.com.au

Pancontinental Snapshot

• Pancontinental Oil & Gas is listed on theAustralian Securities Exchange (ASX) undercode PCLcode PCL

• Market Capitalisation of about A$ 170 million

P j i KENYA (18 000 k ) NAMIBIA• Projects in KENYA (18,000 sq km), NAMIBIA(17,000 sq km) and AUSTRALIA

• Growing Portfolio of East & Southwest African• Growing Portfolio of East & Southwest AfricanAssets

• Recognised Partners with Successful AfricangTrack Record

• Defined & Funded Work Programme


Pancontinental

KENYA is a very favourable country for oil and gas projects-projects

• No indigenous oil or gas production--- hence a strong need for local energy productionstrong need for local energy production

• Transparent and encouraging legislation and fiscal regimeregime

• Enthusiastic and supportive Ministry and national il (NOCK)oil company (NOCK)

• Physical exploration opportunities in exciting geology


PANCONTINENTALApache, Tullow, Origin KENYA

Anadarko, TotalFAR

OphirCove

ShellBG Group, Premier

Ophir

Petrobras

Shell

Ophir

PetrobrasTANZANIA

BG Group, Ophir Statoil, ExxonMobil

TANZANIA

PANCONTINENTAL OIL & GAS

Anadarko, Mitsui, Bharat Videocon ENH

ENIPANCONTINENTAL OIL & GASEAST AFRICAMAIN OFFSHORE OIL & GAS PLAYERS*February 2012 Bharat, Videocon, ENH

CoveMOZAMBIQUE

y*Not definitive, not complete

Pancontinental Offshore KenyaPANCONTINENTAL OFFSHORE KENYA• Four blocks totalling >18,000 sq km

• Significant long term holdings in prime areas

Ethiopia

Somalia

• Major partners with successful African track records

• Very large prospect potential (> 1 Billion Bbls)

Somalia

KENYA

L6 - 3,100km2

FAR 60%Pancontinental 40%

L8 5 123km2

KENYA

L6Pemba Island Oil Seep

Pate 1 Wet Gas Flow

L8 – 5,123km2

Apache 50%Origin 20%Pancontinental 15%Tullow 15%

L8TanzaniaGas Discoveries

Songo Songo Gas Field

Oil d G Di

Mnazi Bay Gas FieldGas Discoveries

Pemba Island Oil Seep

L10A – 4,962km2

BG 40%Cove 25%Premier 20%P i l 15%

0 Km 400

Tanzania

L10A

L10B

0 Km 100 -------------

Mozambique

Oil and Gas Discovery Pancontinental 15%

L10B – 5,585km2

BG 45%Premier 25%


0 Km 400 ---------- Pancontinental 15%

Cove 15%

Offshore Kenya- BathymetrySediment and Nutrient (Source Rocks)Input by Tana River

Why is Pancontinental in Kenya’s offshore L B i ?Lamu Basin?A simple beginning-----BATHYMETRY

NE – SW Prevailing Currents imply …….CounterclockwiseCounterclockwise Oceanic Circulation

KENYA

Tana River Delta progrades to the SSE • Bulge in bathymetric contours off

southern Kenya suggests a delta


southern Kenya suggests a delta prograding to the south• Interpreted NNE- SSW predominant current direction during delta formation

Why is Pancontinental offshore in Kenya’s Lamu

Palaeocene Depth & Residual Gravity

offshore in Kenya s Lamu Basin?A simple beginning----

Tana River Sediment and Nutrient input

GRAVITY DATA Basement Trough Axis L6

Basement Davie Ridge-

Basement High

g L6

L8Trough AxisBasement HighL8

KENYA

Mbawa Trend -Tertiary

Inversion AxisL10A

Gravity data supports location of oil “kitchen” troughs, shown in Dark Blue

Pemba – Simba

L10A

e ba S baRidge-

Basement HighPANCONTINENTAL

Offshore Kenya- Exploration Model Sediment and Nutrients (Source Rocks)Input by Tana Riverp y

NE – SW Prevailing Currents imply …….Conterclockwise

L6

KENYA

Conterclockwise Oceanic Circulation

Mbawa Trend

L8

L10AL10A

L10B

Tana River Delta progrades to the SSE

Pancontinental exploration areas optimally located in delta , over generating troughs and on Mbawa inversion trend


M. Jurassic Plate TectonicReconstruction - Close-up

Plate Tectonics- PANCONTINENTAL

PancontinentalArea of Interest

Restricted seaway during continental separation- Good for hydrocarbon source rock deposition and preservationsince ?Early Jurassic

Late Cretaceous Plate Tectonic Reconstruction

Plate Tectonics-Reconstruction

Madagascar India Separation

PANCONTINENTAL

g p

WB

SAUDIARABIA

AFRICA

NEOTETHYS OCEAN

WB

RestrictedCirculation Enclosed seaway continues into Late

Cretaceous

OCEANIC CRUST, DEEP

SR

MGR

PNGRestrictedCirculation

INDIAN OCEAN

Cretaceous

OCEANIC CRUST, DEEP

DISTAL SHELF/BASIN

DELTAIC- NEARSHORE-SHELF

GIN

PROXIMAL SHELF

ANTARCTICA

Circulation

AUSTRALIA

CO

NTI

NEN

TAL

MA

RG

LIMESTONE NEARSHORE- SHELF

EVAPORITES

NON-MARINEACTIVE CONTINENTAL MARGIN

ACTIVE SPREADING RIDGE

ANTARCTICA

C

SIGNIFICANT EROSION, MOUNTAINS

NON-DEPOSITION

MAXIMUM GLACIATIONPRESENT DAY COASTLINE/BLOCK BOUNDARY

SEDIMENT INPUT

COMPRESSION/COLLISION

WBWESTERN BURMA

SourceKitchensandMigrationKENYA L6, L8, L10A & L10B

Source Kitchens and Migration• Recent & Tertiary Regional Isopach Map –

• Tertiarydepocentres;sourcekitchens;andTertiary depocentres; source kitchens; and generalised migration pathways

• Thick Tertiary loading means relatively recently KENYAy g y ymaturity and generation

Oceanic current organic matter

S

Sgdilution (poor Source Rock quality)

Ponded lower delta Source Rock TANZANIA

S

areas (excellent Source Rock quality)S

Nutrient Rich Delta S

Main Migration Pathway

PANCONTINENTAL

Pancontinental

De-risking The Concept

(i) Depositional model(ii) Oil Seeps(iii) Fluid Inclusions(iii) Fluid Inclusions(iv) Seismic –

CharacterStructuresStructuresDepositional featuresFlat spots, AVO’sP !Prospects!


Satellite Synthetic Aperture R d (SAR)Radar (SAR) KENYA L6 & L8

•Interpreted natural oil sea surface slicks. •L6, L8 - best areas for slicks offshoreL6, L8 best areas for slicks offshore Kenya from available data•Natural oil seep on Pemba Island, south of L10B

L6

L8PANCONTINENTALPANCONTINENTAL

KENYA L6 & L8

L8Mbawa Jurassic prospect outline (2D) ~ 500+ SQ KM

Mbawa sea surface slicks interpreted as light oil or condensate

Mbawa Base Tertiary prospect outline (2D)~180 SQ KM

SEA-SURFACE SLICKS OVER MBAWA PROSPECTPANCONTINENTAL OVER MBAWA PROSPECTPANCONTINENTAL

SEA FLOOR 3D OBLIQUE VIEW

KENYA L8 – MBAWA SEA FLOOR POCKMARKS AND SEA SURFACE SLICKS

SEA FLOOR POCK MARKS

POCK MARKS= EXPULSION CRATERS

SLICKS

BASE TERTIARY PROSPECT OUTLINE

Mbawa Prospect slicks coincide with interpreted sea-floor expulsion craters -consistent with pminor natural leakage on N flank of Prospect

PANCONTINENTAL

Maridadi Fluid Inclusion Oil•Oil inclusionsoccur in twosamples inMaridadi

KENYA L6 & L8

•Oil inclusions occur in two samples in Maridadi1B exploration oil well

–The 4,190 m sample with a GOI value of 3.2% is interpreted to have moderately good evidence for palaeo-oil zone.

–The 4,110 m sample is interpreted to reflect the presence of oil in trace amounts in water or gas saturated reservoir at the Flourescing oil inclusions from Maridadi 1Bin water or gas saturated reservoir at the time fluid inclusions formed.

Evidence of Upper Cretaceous or younger oil

•MCI analysis shows the Maridadi-1B FIoil is likely

Evidence of Upper Cretaceous or younger oil from fluid inclusions in Maridadi 1

y yto be derived from Upper Cretaceous or younger calcareous source rocks

•This is an important finding as some geologists thought that only Jurassic or older rocks were viable oil source rocks

The pristane/ phytane ratio assesses the redoxconditions within the depositional environment.

The ratio is < 1 for oils of marine origin related to sapropelic plankton organic matter, while it Is > 1 for oils of coastal marine or continental origin

PANCONTINENTAL

Kenya L6 & L8 Slicks

KENYA L6 & L8

• L6 + L8 Total 8,200km2

• Water depths 0 to 1300m & onshore

• Major Cretaceous / Tertiary geologicaltrough thought to be oil generating

L6• Prospects associated with slicks in

both areas –supporting concept of oilgeneration

Slicks

L8• Variety of large Prospects• Slicks associated with Prospects


• Slicks associated with Prospects support Pancontinental oil concepts

800m WATER DEPTH

0 Km (approx) 2

KENYA L8Thick Tertiary deposition (>4,000m) “cooked up” mature oil source rocks in the adjacent Trough

MBAWA PROSPECT

( pp )

PANCONTINENTAL

POSSIBLE TERTIARY “FLAT SPOTS”

TERTIARY / CRETACEOUS “FLAT SPOT”-Possible Gas-over –Oil interface

POSSIBLE LOWER “FLAT

MAIN DRILLING TARGETPossible thick Oil column

SPOT”- Possible Oil-over-Water interface

JURASSIC CHANNEL SANDS

Dual Seismic Flat Spots in Mbawa Inversion “popped up” good channel and turbidite sands in central Mbawa- Best reservoir rocks should be in the crestal zone

Kenya L8

KENYA L8• PCL 15%• 5,100 Km2

• Water depth 0 to 1,300m• Mbawa drilling planned mid / Q3 2012 –

PCL free carried by Tullow• Farmins by Apache and Tullow 2011SLICKS Farmins by Apache and Tullow 2011• New operator Apache looking at rig

availability• Slicks coincide with sea floor expulsion

craters

SLICKS

SLICKS

L8MBAWA POTENTIAL *MBAWA POTENTIAL *Tertiary / Cretaceous (P10):• 4.9 Billion Barrels oil in place

plus-• 284 Billion Cubic Feet gas in

* NOTE - Potential volumes arePancontinental projections and donot necessarily reflect those of otherjoint venture participants and may

t il t b t i

284 Billion Cubic Feet gas inplace plus-

Jurassic (P10)• 323 Million Barrels oil in place or• 525 Bcf in place gas cap plus--

• Mbawa potential approx5 Billion Bbls oil in place(P10)

• Mbawa drilling planned


not necessarily prove to be correct inthe future.

Tertiary has further potential• Mbawa drilling plannedmid / Q3 2012

Kenya L8 – Mbawa MBAWA DRILLING

• One Mbawa well to 3,500m will test multipletargets

Water depth of approximately 800m easilySea

• Water depth of approximately 800m - easilyaccessible with modern equipment

• Main target- Lower Tertiary / Upper Cretaceous

• Secondary targets- Upper Jurassic & shallower

Sea floor – 800m

1,000m Lamu Limestone

Secondary targets Upper Jurassic & shallowerTertiary Simba Shale

Kipini ShaleTertiary

*EARLY PALAEOGENE BASIN FLOOR TURBIDITE ‘FAN’ SANDS (Kipini Sands)

2 000m

Cretaceous

**

LATE CRETACEOUS BASIN FLOOR TURBIDITE ‘FAN’ SANDS (Kofia Sands)

Kipini Sands

Kofia SandsKofia Shale

Primary Targets1,800m – 2,200m

2,000m

2,140m

Walu Shale

CARBONATES Jurassic

*

*JURASSIC SANDSTONES & / OR CARBONATES (Mb o / Isalo II Sands

EARLY CRETACEOUS DELTAIC SANDS (Ewaso Sands) 2,800m

3,000m

Walu ShaleEwasu Sands

?

*

SANDSTONE

SHALE

EXPLORATION TARGET

JurassicCARBONATES (Mbuo / Isalo II Sands, Amboni Limestone)

Secondary Targets2,700m – 3,400m

• Mbawa potential approx 5Billion Bbls oil in place (P10)


* EXPLORATION TARGETp ( )

• Mbawa drilling planned mid/ Q3 2012

Why is Pancontinental offshore in Kenya’s Lamu

Palaeocene Depth & Residual Gravity

offshore in Kenya s Lamu Basin?A simple beginning----

GRAVITY DATA- Basement Trough Axis L6

Followed-up with L10A & L10 Projects in 2011

Basement Davie Ridge-

Basement High

g L6

L8Trough AxisBasement HighL8

•Gravity data supports location of oil “kitchen” troughs•Play concept followed up with new

L10A

•Play concept followed up with new L10A & L10B projects- 2011

Mbawa Trend -Tertiary

Inversion AxisPemba – Simba

L10A

e ba S baRidge-

Basement HighPANCONTINENTAL

Kenya L10A & L10B – Leads

Extension of Mbawa TrendSimba Trend

KENYA L10A & L10B• Pancontinental 15%• 5 Play Types

KENYAChannel Trend

5 Play Types• > 10 Leads• 3D & 2D late 2011• 2 wells 2013 -2014

A d d M 2011Mombasa L10A

• Awarded May 2011• 10,000 km2

• “Fast Track” explorationprogramme

• Water depth 200-1,800mp ,• Interpreted oil “kitchen”

troughs in Blocks• Notable partners-

BG GroupPremier Oil

L10B

Premier OilCove Energy

---------------0 Km 20

L10B

Jurassic TrendMiocene Reef T d

• “Fast Track” Exploration• Multiple leads and play types


Jurassic TrendTrendp p y yp

• 3D and 2D already acquired• Drillable prospects expected Q4 ‘12

Kenya L10A & L10B – Leads

High Amplitudes +?Phase Reversal

Amplitude Shutoff

Olkaria Lead

Miocene reefMiocene reef

Tertiary / Upper C t ti li

Rollover into Fault – Amplitude Supported

Miocene Reefs

Cretaceous anticline Supported

KENYA L10A & L10B• Pancontinental 15%• 5 Diverse Play Types

Upper Jurassic reefUpper Jurassic Reef or

Mounded Basin Floor T bidit Pil

5 Diverse Play Types• > 10 Leads• 3D & 2D late 2011• 2 wells planned•Several Prospect expected to be

d t d ill b Q4 2012


Turbidite Pile ready to drill by Q4 2012

Kenya L10B – Windjammer Look-alike

Thrust - related Antiform

Kenya L10B Lead

Undrilled

Flat events, phase reversals




Amplitude

Windjammer / Lagosta etc –

Offshore AmplitudeCut-offsMozambique

Gas Discovery -30 to 50+ Tcf in

place

KENYA L10A & L10BA large Kenya L10B lead is similar on seismic to the


place Windjammer gas discovery off Mozambique

Kenya L6 Kifaru ProspectKENYA L6• PCL 40%• 3,134 Km2

• Water depth 0 to 300m• Kifaru- main prospect adjacent to interpretedKifaru- main prospect adjacent to interpreted

hydrocarbon kitchen / trough• Farming out 2012• 3D over 2+ prospects 2012• Drilling 2012 / 2013

KENYA L6 EXPLORATION PLAY•Lamu Basin has >10km of sediments•Various good source rocks sampled along the East African margin.Many wells intersected good oil and gas shows; 3 wells flowed gas.•Thick Tertiary deposition brings potential source rocks into play as•Thick Tertiary deposition brings potential source rocks into play asmature oil sources. Migration pathways are short and direct.•Lamu Basin- part of a failed Late Cretaceous to Tertiary rift, withgood analogues of prolific oil prone Early Tertiary source rocks inIndia’s Bombay and Cambay basins. Cretaceous and Tertiarydepocentres in restricted marine settings between structural highs.•Eocene source rock samples range up to 11% TOC and hydrogenindices up to 688 - this interval could be an excellent oil source•L6 has a variety of structural leads- E trend has leads clustered onadjacent to Maridadi Trough.•Almost 8tcf unrisked recoverable resource identified and mapped atthe Eocene Kipini sands level Most structures are closed in the

KIFARU

the Eocene Kipini sands level. Most structures are closed in thedeeper Cretaceous where additional resource potential exists. Twoof the main leads are Kifaru and Tembo. Kifaru is old featureadjacent to interpreted generating trough.

KENYA L6


KIFARUPROSPECT

KENYA L6• Numerous Prospects / Leads•Kifaru 3D mid 2012

Pancontinental

What’s Next ?

• Mid year / Q3 2012 - drilling Mbawa in L8, with some 5 billion barrels of oil potential in place

• In L10 Blocks - 3D and 2D results later this year and planning a• In L10 Blocks - 3D and 2D results later this year and planning a minimum of 2 wells in these blocks once we get the data

• In L6 we will be acquiring about 1000 sq km of 3D mid year

• We look forward to a very exciting year, starting with the possibility of finding the first ever commercial oil offshore Kenya in the giant Mbawa PProspect


Pancontinental Oil & Gas NLPancontinental Oil & Gas NL

Ground Floor, 288 Stirling Street

Perth, WA 6000

Australia

Tel: +61 (8) 9227 3220

Fax: +61 (8) 9227 3211

http://www.pancon.com.au

Barry Rushworth CEO of Pancontinental Oil & GasCEO of Pancontinental Oil & Gas


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