 3 Year Plan 2015-2017 Update February 12, 2015 Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Confidential: Subject to NDA OPERATIONAL UPDATE |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Key Business Highlights – January 26, 2015 Update Production 3 Confidential: Subject to NDA Q4 2014 physical production 12,100 boe/d, up 25% over 9,700 boe/d in Q3 2014. 2014 annual production 11,000 boe/d represents an 11% increase from 9,900 boe/d in 2013. Cash Received $12.7 million for a portion of Alba insurance proceeds in 4Q 2014. Realized $15 million in annual 2014 cash savings from consolidated offices and staff. Pursuing areas to reduce G&A and operating costs. Ending global cash balance of $82 million, $20 million higher than projections. Future upside through existing U.K. and U.S. portfolios Positive results in Colorado. Progressing farm-in partner on primary U.K. prospects. |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 U.K. Operations – January 26, 2015 Update Rochelle Gas production capacity at Scott platform of over 100 mmcf/d gross has been available for Rochelle since May 2014. Consistently producing at above 100 mmcf/d gas gross with over 4,000 bbl/d gross associated liquids. Reliability studies ongoing to further improve. [February 27, 2015 Update] – Rochelle was shut in January 31 for a planned 7 day shutdown to tie-in an additional compressor on the Scott Platform to increase reliability. Issues with the existing compressor has delayed the restart, which is now expected early March 2015. Alba A69 well completed and online in December 2014. Production currently averaging 22,000 boe/d gross. Repair of subsea water injection planned for 1st Quarter 2015, resuming production from all subsea wells in May 2015. Bacchus Production declining more slowly than forecast. Two gas lifted wells online producing at 6,000 bbl/d gross. Identified future opportunity at shallow prospect above Bacchus reservoir. Exploration Continue pursuing farm-in partners on existing prospects. Identifying positive opportunities on Mabry and Rossini as technical work progresses. 4 Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 U.S. Operations – January 26, 2015 Update Marcellus 5 producing wells with 4 horizontal wells waiting on tie-in. 2 recently completed horizontals IP 4.5-6.5 mmcf/d gross. 10 mmcf/d gross take-away capacity on the EQT line recently tied in to Daniel Gathering System. Liquids-rich, Niobrara/Frontier plays in Piceance Basin, NW Colorado Wiley Initial horizontal drilled, 5,000’ lateral with multi-stage fracs completed. Flowback producing at significant oil plus gas rates. Wiley Hz completion confirms Niobrara volatile oil / wet gas play. [February 27, 2015 Update] – Wiley was shut-in late December to install and hook-up production facilities. First production expected to commence in March 2015. Hunter/Garvey Volatile oil play. Targeting structure with open fractures. Strong oil flows from Niobrara while drilling in area. Waiting on BLM drilling permit. 5 Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 BUSINESS PLAN UPDATE Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 UK COMMODITY PRICES - OIL ONE YEAR: BRENT 7 POST PETITION: BRENT BRENT SPOT AND FORWARD CURVE AS OF 1/14/2015 Confidential: Subject to NDA BRENT SPOT AND FORWARD CURVE AS OF 2/6/2015 |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 UK COMMODITY PRICES - GAS ONE YEAR: NORTH SEA NAT GAS 8 POST PETITION: NORTH SEA NAT GAS NORTH SEA NAT GAS SPOT/FORWARD CURVE AS OF 1/14/2015 Confidential: Subject to NDA NORTH SEA NAT GAS SPOT/FORWARD CURVE AS OF 2/6/2015 |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 BASE CASE: GLOBAL FREE CASH FLOW COMPARISON 9 3 YEAR PLAN IN DISCLOSURE STATEMENT UK Average Price Deck Oil ($/bbl) 54.68 $ 62.49 $ 67.65 $ Gas ($/mcf) 7.01 $ 7.20 $ 8.08 $ US Average Price Deck Oil ($/bbl) 52.16 $ 58.34 $ 63.11 $ Gas ($/mcf) 3.20 $ 3.48 $ 3.66 $ UPDATE (PRICING AS OF 1/14/15) UK Price Deck Oil ($/bbl) 90.00 $ 90.00 $ 90.00 $ Gas ($/mcf) 9.00 $ 9.00 $ 9.00 $ US Price Deck Oil ($/bbl) 80.00 $ 80.00 $ 80.00 $ Gas ($/mcf) 4.00 $ 4.00 $ 4.00 $ ($ in thousands) BUSINESS SUMMARY 2015 2016 2017 MBOE/D 12.12 11.78 12.69 Total Revenue 206,393 $ 210,884 $ 242,265 $ Global LOE 92,685 94,507 84,991 G&A 14,625 14,625 14,625 EBITDA 99,083 $ 101,752 $ 142,649 $ ($ in thousands) BUSINESS SUMMARY 2015 2016 2017 MBOE/D 12.30 12.24 13.1 Total Production Revenue 306,868 $ 299,357 $ 310,860 $ Global LOE 92,525 92,592 87,098 G&A 13,600 13,600 13,600 EBITDA 200,744 $ 193,164 $ 210,162 $ Confidential: Subject to NDA 1) Updated case assumes emergence from bankruptcy on June 30, 2015. 2) Used for cash interest, principal payments and UK LC's for abandonment as needed. Less: PRT 3,232 7,102 1,792 Less: Restructuring Costs 1 (42,523) - - Less: Capex (48,674) (79,919) (64,004) Less: Abandonment (32,000) (36,800) - Plus: Insurance Proceeds (PD) 7,000 - - Plus: Sale of Assets - 25,000 - Plus: Working Capital Adjustment (4,516) 1,876 (2,304) Unlevered FCF 2 (18,399) $ 19,010 $ 78,133 $ Less: PRT (17,459) (12,099) (11,708) Less: Restructuring Costs (17,916) - - Less: Capex (61,811) (99,733) (101,380) Less: Abandonment (32,000) (36,800) - Plus: Insurance Proceeds 9,000 - - Plus: Sale of Assets - 25,000 - Plus: Working Capital Adjustment (12,963) 3,020 2,543 Unlevered FCF 2 67,595 $ 72,552 $ 99,616 $ |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 FORECAST ASSUMPTIONS UPSIDE Changes in commodity prices. Improvement to operational efficiency ratio. Operating costs soften. Purchases of reserves in place – at historically strong metrics. DOWNSIDE Changes in commodity prices. Erosion to operation efficiency ratios. Forecasted sales or farm outs are not executed or not at expected economics. Capex overruns. OPERATING ASSUMPTIONS UK Operating Assumptions US Operating Assumptions TALKING POINTS A $1 move in Global Oil Prices changes EBITDA in the three year forecast by $6.8MM and an average of $2.3MM/year. A $0.50 move in Global Gas Prices changes EBITDA in the three year forecast by $19.0MM and an average of $6.3MM/year. A 1% move in the efficiency ratio changes the forecast by $2.3M/year. UK PLAN (PRICING AS OF 1/14/15) US PLAN (PRICING AS OF 1/14/15) MBOE/day 10.7 10.3 10.7 ($ in thousands) BUSINESS SUMMARY 2015 2016 2017 Total Revenue 196,611 $ 199,964 $ 225,061 $ UK LOE 89,478 91,729 81,817 G&A 12,902 12,882 12,318 EBITDA 94,231 $ 95,353 $ 130,926 $ ($ in thousands) BUSINESS SUMMARY 2015 2016 2017 Total Revenue 9,783 $ 10,920 $ 17,204 $ US LOE 3,207 2,778 3,174 G&A 1,723 1,743 2,307 EBITDA 4,853 $ 6,399 $ 11,723 $ MBOE/day 1.4 1.4 2.0 Confidential: Subject to NDA 10 Ongoing development at Alba. Ongoing production and infrastructure maintenance at Bacchus and Rochelle. Complete decommissioning program. Development required to maintain interest in Marcellus. Continued development of Wiley in Colorado. Farm out of interest in Colorado. |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 BASE CASE: UK FREE CASH FLOW 11 3 YEAR PLAN IN DISCLOSURE STATEMENT (UK) UPDATE (PRICING AS OF 1/14/15) (UK) ($ in thousands) 2015 2016 2017 EBITDA 94,231 $ 95,353 $ 130,926 $ Less: PRT 3,232 7,102 1,792 Less: Capex (40,921) (52,555) (48,798) Less: Abandonment (32,000) (36,800) - Plus: Property Insurance Proceeds 7,000 - - Unlevered FCF 31,541 $ 13,100 $ 83,919 $ ($ in thousands) 2015 2016 2017 EBITDA 189,554 $ 176,088 $ 187,960 $ Less: PRT (17,459) (12,099) (11,708) Less: Capex (43,303) (68,136) (64,380) Less: Abandonment (32,000) (36,800) - Plus: Property Insurance Proceeds 9,000 - - Unlevered FCF 105,792 $ 59,052 $ 111,872 $ Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 GLOBAL EBITDA RECONCILIATIONS 12 3 YEAR PLAN IN DISCLOSURE STATEMENT (GLOBAL) UPDATE PLAN (USING PRICING AS OF 1/14/15) (GLOBAL) Confidential: Subject to NDA ($ in thousands) 2015 2016 2017 Net income (loss) (157,817) $ (111,705) $ (104,208) $ Depreciation, depletion and amortization 186,069 181,340 187,637 Tax expense (58,963) (49,628) (5,889) Amortization of loan costs and discount 4,590 4,590 - Interest expense 82,681 77,156 65,109 Restructuring cost 42,523 - - Adjusted EBITDA 99,083 $ 101,752 $ 142,649 $ ($ in thousands) 2015 2016 2017 Net income (loss) (98,889) $ (69,589) $ (90,355) $ Depreciation, depletion and amortization 186,565 182,614 188,901 Tax expense 7,881 (1,607) 46,506 Amortization of loan costs and discount 4,590 4,590 - Interest expense 82,681 77,156 65,109 Restructuring cost 17,916 - - Adjusted EBITDA 200,744 $ 193,164 $ 210,162 $ NOTES Based on current pricing, YOY 2015 EBITDA is expected to be down approximately 55%. UK G&A is allocated from the US. ($ in thousands) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Total Revenue 61,968 $ 50,079 $ 38,808 $ 55,538 $ Global LOE (23,896) (23,809) (21,346) (23,634) G&A (3,656) (3,656) (3,656) (3,656) PRT (1,348) (7,413) 653 11,340 Restructuring Costs (11,668) (30,856) - - Capex (8,967) (24,199) (6,819) (8,689) Abandonment (12,573) (12,082) (5,444) (1,901) Insurance Proceeds (PD) 7,000 - - - Sale of Assets - - - - Working Capital Adjustment (5,370) 14,660 (8,646) (5,160) UK Average Price Deck Oil ($/bbl) 52.80 $ 52.33 $ 55.62 $ 57.97 $ Gas ($/mcf) 7.38 $ 6.73 $ 6.61 $ 7.33 $ US Average Price Deck Oil ($/bbl) 51.32 $ 50.36 $ 52.48 $ 54.48 $ Gas ($/mcf) 3.15 $ 3.13 $ 3.20 $ 3.32 $ QUARTERLY STATISTICS (USING PRICING AS OF 1/14/15) (GLOBAL) |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 EBITDA RECONCILIATIONS 13 3 YEAR PLAN IN DISCLOSURE STATEMENT (UK) UPDATE PLAN (USING PRICING AS OF 1/14/15) (UK) Confidential: Subject to NDA 3 YEAR PLAN IN DISCLOSURE STATEMENT (US) UPDATE PLAN (USING PRICING AS OF 1/14/15) (US) ($ in thousands) 2015 2016 2017 Net income (loss) (44,713) $ (42,556) $ (55,144) $ Depreciation, depletion and amortization 182,108 177,446 182,081 Tax expense (830) (11,792) 27,795 Amortization of loan costs and discount 4,590 4,590 - Interest expense 48,400 48,400 33,970 Restructuring cost - - - Adjusted EBITDA 189,554 $ 176,088 $ 188,703 $ ($ in thousands) 2015 2016 2017 Net income (loss) (54,176) $ (27,034) $ (35,211) $ Depreciation, depletion and amortization 4,457 5,168 6,820 Tax expense 8,712 10,186 18,711 Amortization of loan costs and discount - - - Interest expense 34,281 28,756 31,139 Restructuring cost 17,916 - - Adjusted EBITDA 11,190 $ 17,076 $ 21,459 $ 2014 year end cash in the UK is approximately $50 million. 2014 year end cash in the US is approximately $32 million. ($ in thousands) 2015 2016 2017 Net income (loss) (79,553) $ (70,903) $ (75,997) $ Depreciation, depletion and amortization 182,108 177,446 182,081 Tax expense (61,314) (64,180) (9,128) Amortization of loan costs and discount 4,590 4,590 - Interest expense 48,400 48,400 33,970 Restructuring cost - - - Adjusted EBITDA 94,231 $ 95,353 $ 130,926 $ ($ in thousands) 2015 2016 2017 Net income (loss) (78,264) $ (40,802) $ (28,210) $ Depreciation, depletion and amortization 3,962 3,894 5,555 Tax expense 2,351 14,552 3,239 Amortization of loan costs and discount - - - Interest expense 34,281 28,756 31,139 Restructuring cost 42,523 - - Adjusted EBITDA 4,853 $ 6,399 $ 11,723 $ |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 2/6/2015 UPDATE Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 2/6/2015 UPDATE 15 GLOBAL UPDATE (PRICING AS OF 2/06/15)¹ Confidential: Subject to NDA UPDATE UK (PRICING AS OF 2/06/15)¹ UPDATE US (PRICING AS OF 2/06/15) UK Average Price Deck Oil ($/bbl) 59.76 $ 68.40 $ 71.72 $ Gas ($/mcf) 7.03 $ 7.38 $ 7.57 $ US Average Price Deck Oil ($/bbl) 54.74 $ 62.48 $ 64.88 $ Gas ($/mcf) 2.79 $ 3.21 $ 3.53 $ ($ in thousands) BUSINESS SUMMARY 2015 2016 2017 MBOE/D 12.12 11.78 12.69 Total Revenue 216,916 $ 224,828 $ 244,851 $ Global LOE 92,701 91,693 92,957 G&A 14,625 14,625 14,625 EBITDA 109,590 $ 118,509 $ 137,269 $ ($ in thousands) BUSINESS SUMMARY 2015 2016 2017 MBOE/D 10.7 10.3 10.7 Total Revenue 208,313 $ 214,545 $ 228,779 $ UK LOE 89,494 88,915 89,783 G&A 12,902 12,882 12,318 EBITDA 105,918 $ 112,748 $ 126,678 $ ($ in thousands) BUSINESS SUMMARY 2015 2016 2017 MBOE/D 1.4 1.4 2.0 Total Revenue 8,603 $ 10,282 $ 16,072 $ US LOE 3,207 2,778 3,174 G&A 1,723 1,743 2,307 EBITDA 3,673 $ 5,761 $ 10,591 $ Less: PRT 1,392 3,994 2,284 Less: Capex (40,921) (52,555) (48,798) Less: Abandonment (32,000) (36,800) - Plus: Property Insurance 7,000 - - Free Cash Flow 41,389 $ 27,387 $ 80,163 $ 1) Forecast and productions assumptions updated based on 2/6/2015 pricing and updated reserve report details. 2) Updated case assumes emergence from bankruptcy on June 30, 2015. 3) Used for cash interest, principal payments and UK LC’s for abandonment as needed. 1 Less: PRT 1,392 3,994 2,284 Less: Restructuring Costs 2 (42,523) - - Less: Capex (48,674) (79,919) (64,004) Less: Abandonment (32,000) (36,800) - Plus: Insurance Proceeds (PD) 7,000 - - Plus: Sale of Assets - 25,000 - Plus: Working Capital Adjustment (5,927) 1,938 (522) Unlevered FCF 3 (11,143) $ 32,722 $ 75,027 $ |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 2/6/2015 PRICING UPDATE CONTINUED 16 Confidential: Subject to NDA 1) Forecast and productions assumptions updated based on 2/6/2015 pricing and updated reserve report details. ($ in thousands) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Total Revenue 60,436 $ 54,419 $ 42,219 $ 59,841 $ Global LOE (23,900) (23,814) (21,349) (23,637) G&A (3,656) (3,656) (3,656) (3,656) PRT (1,348) (7,413) 370 9,784 Restructuring Costs (11,668) (30,856) - - Capex (8,967) (24,199) (6,819) (8,689) Abandonment (12,573) (12,082) (5,444) (1,901) Insurance Proceeds (PD) 7,000 - - - Sale of Assets - - - - Working Capital Adjustment (6,931) 14,776 (7,987) (5,785) UK Average Price Deck Oil ($/bbl) 52.00 $ 59.67 $ 62.52 $ 64.87 $ Gas ($/mcf) 7.14 $ 6.79 $ 6.72 $ 7.47 $ US Average Price Deck Oil ($/bbl) 48.69 $ 53.67 $ 57.11 $ 59.49 $ Gas ($/mcf) 2.80 $ 2.65 $ 2.76 $ 2.94 $ ($ in thousands) 2015 2016 2017 Net income (loss) (142,603) $ (102,047) $ (105,249) $ Depreciation, depletion and amortization 186,069 181,340 187,637 Tax expense (63,671) (42,529) (10,228) Amortization of loan costs and discount 4,590 4,590 - Interest expense 82,681 77,156 65,109 Restructuring cost 42,523 - - Adjusted EBITDA 109,590 $ 118,509 $ 137,269 $ ($ in thousands) 2015 2016 2017 Net income (loss) (63,159) $ (60,607) $ (73,162) $ Depreciation, depletion and amortization 182,108 177,446 182,081 Tax expense (66,021) (57,081) (16,211) Amortization of loan costs and discount 4,590 4,590 - Interest expense 48,400 48,400 33,970 Restructuring cost - - - Adjusted EBITDA 105,918 $ 112,748 $ 126,678 $ ($ in thousands) 2015 2016 2017 Net income (loss) (79,444) $ (41,440) $ (32,086) $ Depreciation, depletion and amortization 3,962 3,894 5,555 Tax expense 2,351 14,552 5,983 Amortization of loan costs and discount - - - Interest expense 34,281 28,756 31,139 Restructuring cost 42,523 - - Adjusted EBITDA 3,673 $ 5,761 $ 10,591 $ RECONCILIATION UPDATE (USING PRICING AS OF 2/06/15) (GLOBAL) 1 RECONCILIATION UPDATE PLAN (USING PRICING AS OF 2/06/15) (UK) 1 RECONCILIATION UPDATE PLAN (USING PRICING AS OF 2/06/15) (UK) 1 QUARTERLY STATISTICS (USING PRICING AS OF 2/06/15) (GLOBAL) 1 |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 ADDITIONAL PLAN UPDATES Confidential: Subject to NDA |
   Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 FORECAST AND PRODUCTION UPDATES 18 Confidential: Subject to NDA ASSUMPTIONS Alba • Drilling program includes one to two wells per year. • Approx. 20 infield drilling opportunities currently identified. • Pre-tax 2P IRR in excess of 45% at $60/Bbl on drilling opportunities and up to Bacchus • Capital budgeted for gas lift efficiency and an additional well. • Operating costs are predominately tied to throughput charges and are not Rochelle • Deploy capital needed in order to sweep reservoir’s remaining • Operating cost are predominately tied to throughput charges and are not Potential Decommissioning LC Requirements • Cost estimates are based on current cost, inflated to the forecasted • IVRR and Renee/Rubie collateral amounts should be released after 12 • Current exposure of cash decommissioning liabilities in the form of collateral 2015 2016 2017 2018 2019 3 Year Plan +2 Year Prod Assum Global MBOE 4,424 4,298 4,633 3,734 3,374 Revenue 216.9 $ 224.8 $ 244.9 $ 201.9 $ 187.9 $ Opex 92.7 91.7 93.0 84.3 80.2 Capex 48.7 79.9 64.0 69.7 84.7 PRICING UPDATE (AS OF 2/6/15) ($ in millions) 1) Forecast and productions assumptions updated based on 2/6/2015 pricing and updated reserve report details. Alba MBOE/day 3.9 3.8 3.3 3.5 3.6 Total MBOE 1,419 1,386 1,201 1,269 1,301 Revenue 77.4 $ 87.9 $ 80.1 $ 87.9 $ 93.5 $ Opex 56.2 56.1 55.4 55.6 55.8 Capex 25.1 23.9 18.7 20.0 65.0 PRT Tax (1.4) (4.0) (2.3) (1.1) (16.6) Bacchus MBOE/day 1.1 0.7 1.2 0.6 0.4 Total MBOE 398 254 455 222 161 Revenue 23.3 $ 17.3 $ 32.4 $ 16.4 $ 12.3 $ Opex 4.3 3.0 4.8 2.7 2.1 Capex 7.6 12.5 5.0 - - Rochelle MBOE/day 5.4 5.6 5.9 4.1 3.4 Total MBOE 1,983 2,052 2,161 1,509 1,249 Revenue 93.6 $ 103.2 $ 110.3 $ 78.0 $ 65.8 $ Opex 21.6 22.2 23.2 17.1 14.6 Capex 2.5 10.8 20.6 30.0 - UK Average Price Deck Oil ($/bbl) 59.76 $ 68.40 $ 71.72 $ 74.34 $ 76.90 $ Gas ($/mcf) 7.03 $ 7.38 $ 7.57 $ 7.60 $ 7.69 $ US Average Price Deck Oil ($/bbl) 54.74 $ 62.48 $ 64.88 $ 66.80 $ 68.46 $ Gas ($/mcf) 2.79 $ 3.21 $ 3.53 $ 3.67 $ 3.76 $ Major Asset Summary 60% on work overs. expected to be highly variable to commodity prices. hydrocarbons; return on capital is favorable, forecasting IRR’s in excess of 100% at $60 oil and $7 gas. expected to be highly variable to commodity prices. decommissioning date and discounted to the present. months post DECC approved completion. are approximately $40 million. 1 |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 UK – MABRY AND COLUMBUS Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 14/28 Mabry Upper 2016 Well as Per 3yr Business Plan Primary Target: Jurassic Piper Sandstone Mean Reserves 125 mmboe / Pg 29% Secondary Target: Jurassic Dirk Sandstone Mean Reserves 192mmboe / Pg 8% Single well to hit both targets NPV 15 $209mm (Dec 2014) EEUK 50% Equity 1 2 2 1 Expl 20 MABRY EXPLORATION OVERVIEW Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 2016 Well as Per 3yr Business Plan Primary Target: Jurassic Piper Sandstone Mean Reserves 125 mmboe / Pg 29% Secondary Target: Jurassic Dirk Sandstone Mean Reserves 192mmboe / Pg 8% Single well to hit both targets NPV 15 $209mm (Dec 2014) EEUK 50% Equity 21 Inner/Outer Moray Firth Upper Jurassic Field Size Distribution Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 22 Columbus Field Overview Confidential: Subject to NDA Company (1) Equity Serica (Operator) 50% Endeavour 25% EOG 25% Blocks 23/16f & 23/21, 275ft water depth Discovered 2006 Palaeocene reservoir at ~9,800ft SS Stratigraphic trap in submarine fan 50% NTG / ~19% porosity / ~1 to 50mD permeability GIIP ~170 Bcf Gas condensate with CGR ~40 bbl/MMscf Proposed Facilities Subsea development 2 horizontal production wells, depletion Evaluating development / offtake solutions Field Development Plan draft pending agreement on host solution DECC agreed 2 year License extension to December 2015 ________________________________________________ (1) Block 23/16f only, extension into block 23/21. |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 US - OVERVIEW Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 US Portfolio Details Active Projects Haynesville Marcellus Heath Colorado Totals WI (%) 50 50 25 100/75 Fluid type dry gas dry gas oil mixed Impact Gross/Net Acres (1,000's) 7.2/3.3 26/13 211/37 46/31* 290/84 Gross Unrisked Locations 70-100 130-180 150-300 150-200+ 500-800+ Net Unrisked Resource (BCFe) 70-100 250-350 25-50 450-1000+ 800-1500+ US Y/E 2014 Totals 300,300 gross / 83,650 net acres 4.5 MMCFe/D net production 39 BCFe net proved reserves 68 BCFe 3P with significant upside * Colorado leasehold total includes ~10,200 “drill-to-earn” net acres 24 Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 US - WILEY OVERVIEW Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Endeavour - NW Colorado Piceance Basin Rim Play Buck Peak Niobrara trend 20-30 mmbo Encana’s Orchard Niobrara gas development WPX 12mmcf/d Niobrara well Rangely Niobrara 15 mmbo NBRR Petroleum System: Proven HC productive areas Oil window Wet gas window Dry gas window Wiley Prospect Hz well completed 10/14 Hunter-Garvey Prospect Cored pilot 9/13 26 Confidential: Subject to NDA Pursuing liquids-rich, stacked Niobrara/Frontier plays in the Piceance Basin, NW Colorado Play 1: Wiley (3-5N – 97W) Piceance Basin Colorado Net unrisked resource potential of 75 – 200+ mmboe 16,350 gross / 10,200 net ac “drill-to-earn” Volatile oil play Targeting structure with open fractures Strong oil flows from Niobrara while drilling in area 29,600 gross / 21,100 net ac Volatile oil / wet gas play via multi-stage fracs Initial horizontal drilled, completed, producing Endeavour is Operator with a 80% NRI Wiley 23-day initial flowback average rate of 602 BOPD + 1.3- 1.8 MMCF/D, peak daily oil rate of 805 BOPD Once well is established as commercial with BLM then the Unit acreage will be held with no further well obligations for five years PV10 well development break even at approximately $50 oil Play 2: Hunter/Garvey (8S – 100-101W) Structure on top Rollins Ss, c.i. 500’ |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 US – MARCELLUS OVERVIEW Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 26,200 net JV acres (majority HBP) 50/50 Samson JV 500-700+ BCFE net JV Marcellus potential 1 TCF potential with adjacent State Lands included 1+ TCF additional potential in Utica Shale 10 MMCFD take-away capacity on EQT line; first production expected in Feb 2015 4 new horizontal wells coming on-line 5 existing marginal producers Two recent wells with intial production rates ranging from 4.5 – 6.5 mcf/d Contiguous acreage blocks with 3D seismic, no new drilling required until late 2015 Marcellus Assets 28 Confidential: Subject to NDA CAMERON COUNTY, PA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Target: Utica Shale where Point Pleasant is present – various facies, generally porous and brittle Point Pleasant 100’ – 140’ thick across western PA, thins toward southern NY Shell announced two Utica discoveries in Tioga Co. – 11.2mmcf/d and 26.5mmcf/d END Shell (Isopach Point Pleasant, c.i. = 10’) Utica Point Pleasant Potential – Estimate 1+ TCF 29 Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Industry Activity in END Play Area END EOG Seneca Shell Ultra PGE/Exxon Reported Marcellus EURs 4 – 8+ Bcf Seneca – Cameron County Reported 7.8 mmcf/d, 7 Bcf EUR EUR range 4.5 – 8.6 Bcf Ultra – Potter & Tioga Counties 5 Bcf EURs EOG/Seneca – Northern Clearfield Co. Recent IP’s 7 - 9+ mmcf/d PGE/Exxon – SE McKean County Multiple wells with 5000’ – 7600’ laterals. Rumored rates for 5000+’ = 6-9 mmcf/d Multi-pay Upside Shell – Tioga Co. Utica tested 26.5 and 11.2 mmcf/d @ 11,500’ TVD Seneca – McKean Co. Utica Shale test well “encouraging” with 400’ gross reservoir at 10,000’ depth Seneca – Central Potter Co. Geneseo Shale IP’s of 2 - 4.5 mmcf/d Seneca Geneseo Seneca Utica well Ultra 5 Bcf Seneca 3-5 Bcf EOG PGE long laterals 7000+’ 5000+’ Isopach of Marcellus Shale, c.i. = 50’ Seneca 7 Bcf 7.8 mmcf/d Shell Utica wells 26.5 & 11.2 mmcf/d Daniel 30 Confidential: Subject to NDA |
 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 RESERVE UPDATE Confidential: Subject to NDA |
    Privileged & Confidential Prepared at the Request of Counsel Subject to FRE 408 2014 Reserve Update 32 Confidential: Subject to NDA Net (BOE) PV10 ($000) Net (BOE) PV10 ($000) 1P 14,992,502 423,316 $ 8,973,263 275,629 $ 2P 29,233,428 851,191 $ 27,674,544 439,662 $ 3P 43,663,064 1,466,995 $ 43,663,064 887,566 $ 1P 6,521,245 38,433 $ 5,819,593 21,019 $ 2P 9,027,906 52,252 $ 8,161,371 28,565 $ 3P 11,402,160 70,112 $ 9,665,190 40,082 $ 1P 21,513,748 461,750 $ 14,792,856 296,647 $ 2P 38,261,334 903,443 $ 35,835,914 468,227 $ 3P 55,065,225 1,537,108 $ 53,328,255 927,648 $ Contingent and Prospective Reserves 610,000,000 190,000,000 US UK SEC Price Case Strip Price Case Source: 2014 year end reserve report (as of 12/31/2014), SEC case audited by external independent engineer. 1) PV10 amounts are prior to PRT, Corporate Taxes, Supplementary Corporate Taxes, and other local taxes. 2) Strip Price is as of February 10, 2015, based on 12/31/2014 reserve report. 3) Contingent and prospective resources are unrisked and net to Endeavour. |