Europa Oil & Gas

The Berenx Discovery An Overlooked Opportunity in the Aquitaine,

Rowland Thomas Chief Geophysicist- Europa Oil & Gas APPEX London 10-13 March 2014

www.europaoil.com

1 | EUROPA OIL AND GAS PLC | March 2014 Location Map

Area of interest Aquitaine Basin, Southwest France

Bearn des Gaves permit Europa Oil & Gas (100%) Held until Mar 2017

* Licence map not up to date 2 | EUROPA OIL AND GAS PLC | March 2014 Regional Structural Setting

• Bearn des Gaves permit is set within the proven petroleum province of the North Pyrenean foothills formed by the overthrust Saint Suzanne nappes and foreland Arzacq sub-basin.

Area: 528 km2 DEEP SHALLOW

B

A Line of cross section

3 | EUROPA OIL AND GAS PLC | March 2014 Regional Structural Setting

• Regional cross section illustrating structural style over Bearn des Gaves Licence within the foreland Arzacq sub-basin and over thrust Saint Suzanne nappes

A B

4 | EUROPA OIL AND GAS PLC | March 2014 General Geological Setting

Berenx autochthonous discovery Sainte Suzanne thrust fault

Berenx 1,2

Lacq Field 8.9TCF

Seismic line Barremian & Neocomian Senonian oil 125mmbbl

Berenx allochthonous prospect

Saucede -1 Field 2.1TCF -1 Barremian & Necomian

5 | EUROPA OIL AND GAS PLC | March 2014 Bearn Des Gaves The Prize

Shallow ~ $1.5 billion of drillable potential gas resource identified

S N

Salt

Berenx 1 20% gas shows in Neocomian

Aptian Unc. GWC

Top Neocomian Top Kimmeridgian. Berenx Shallow Triassic Salt 416 bcf mean unrisked Deep resource NPV(10) $774 million

Berenx Deep 524 bcf mean unrisked resource NPV(10) $773 million

6 | EUROPA OIL AND GAS PLC | March 2014 Berenx Shallow Top Neocomian TWT map

Northern prospect margin defined The eastern margin is bound Allochthonous Cretaceous by the Ste Suzanne thrust fault by the Ste Suzanne-Menaut- crest 4 to 5 km WNW of the High. Berenx wells.

The gas bearing Berenx and Salies Westernmost extension wells appear to be positioned downdip beyond present seismic on the flanks of the structure coverage. Re-processing vintage data initiated. Closure against Salies Seismic line – previous slide salt diapir / salt blade?

Culmination of allochthonous panel, Prospect outline, dip collapsed and fractured by a quantity closed to east and south of listric faults, forms the Berenx- Salies structure. Orientation of faults not definitive.

7 | EUROPA OIL AND GAS PLC | March 2014 Berenx Shallow Berenx-1 & 2 Well Correlation

Berenx-1 Berenx-2

Range (MD) : 2000.00m - 3100.00m Range (MD) : 2000.00m - 3100.00m Scale : 1:5000 Up to 20% gas in Scale : 1:5000 Berenx-1 (red line)

GR GR Calliper & DT Images

0 api 100 Depth

GR#2 Depth Europa Strat Europa

Casing Strat Europa

Depth TVDSS Depth TVDSS Depth 0 - 150 Sub-sequence SP RES Total Gas CALI LL7 Total Gas

Stage Reserv oir Geology Stage Lithology -100 mv 0 0.2 ohmm 20000 0 % 50 8 in 18 Lithology 0.2 ohmm 20000 0 % 5 2000 2000

1900 1900

Albian Albian 2100 2100

2000 2000

2200 Faulting? 2200

2100 2100

Upper Upper Aptian Upper Upper Aptian

2300 2300

Note that the gas shows 2200 Lower Aptian 2200 seem to start at the top of a major washout zone 2400 (calliper frequently 25° 2400

2300 saturated) and decline 2300

N1 where the hole starts to Lower Aptian

Neocomian come back into gauge. 2500 2500 N1 2400 2400 GWC?

2600 N1 2600

Barremian K1 2500 2500

K1 Kimmeridgian 2700 2700

Marnes noires à Ammonites 2600

Calcaires à filaments 2600

K1

L1 Kimmeridgian

2800 2800 Lias

Lower L1

2700 2700 L1 2900 Lias 2900 13 3/8"

2800 2800 Trias 3000 3000

2900 2900 Trias TVD scaling

8 | EUROPA OIL AND GAS PLC | March 2014 Proven Hydrocarbon Play

• Reservoirs: Main reservoirs proven regionally in Jurassic and Cretaceous sections

In Bearn Des Gaves Permit Barremian, Neocomian, Kimmeridge are the main potential targets.

Note: no direct analogues for gas zone in Berenx 1 but Portlandian & Kimmeridgian dolomites exist up dip within Berenx shallow closure.

• Sources Upper Jurassic Kimmeridge Clay Fm, Fm Lower Cretaceous Barremain lime- stones and dolostones

• Seal Lower Aptian shales & Albian shales. Lime-mudstones (intra-formational & unconformities)

9 | EUROPA OIL AND GAS PLC | March 2014 Multiple proven trap types

Multiple proven trap types

• Salt induced naturally fractured Barremian- Neocomian carbonates at • Eroded and faulted Berenx Barremian- Neocomian carbonates at Meillon • Fold and thrust Salt induced structures at Saucede faulted anticline and Ledeaux 8.9TCF • Isolated eroded Eroded & faulted monocline 2.1 TCF uncomformity traps in Jurassic carbonates at Rousse, Ucha - and Cassourat

Fold thrust structures Saucede 2 BCF Erosional unconformity traps & Leduix 4BCF isolated Jurassic carbonates Rousse 150BCF, Ucha Lac. 67BCF Cassourat 7BCF 10 | EUROPA OIL AND GAS PLC | March 2014 Gas discoveries and composition

• Autochthonous (sub thrust) and foreland produces sour, dry gas • Allochthonous (supra thrust) sweet, wet gas

11 | EUROPA OIL AND GAS PLC | March 2014 Lacq / Meillion processing plant

• Permit 20km from major industrial complex which processed gas from the Meillon and Lacq fields. Sulphur export. • Rare opportunity to explore and appraise significant gas resources close to existing infrastructure. • Rapid commercialisation possible into premium gas market

• Permit located over flat lying farm land • Access and suitable drilling and development sites are not considered problematic. • Area has a long history of field development

12 | EUROPA OIL AND GAS PLC | March 2014 Berenx Shallow summary

. Previous exploration (1950’s -1970’s) focussed on autochthonous structure Allochthonous plays generally overlooked. . Prospect closure of ~40Km2 (most likely) . Sweet, wet gas most likely hydrocarbon phase . Source: (Lons Fm) Kimmeridgian limestone . Reservoirs: Kimmeridgian to Barremian, limestones and dolomites, . Dual porosity system Matrix & Fractures . Seals: Intra formational Lime-mudstones, Aptian & Albian shales. . Range of prospective resources estimated 263 – 408 - 579 BCF . Risk: Trap definition / effectiveness, reprocessing initiated & additional seismic data? Allochthonous analogues: Saucede, Ledeuix discoveries . Risk : Reservoir effectiveness , target open fracture system . Scoping Economics suggest a value of ~ 14.1 $/boe . Mean unrisked potential NPV(10) of 774 $mm

13 | EUROPA OIL AND GAS PLC | March 2014 Bearn des Gaves forward plan

. Re-processing vintage data to improve western definition of trap.

. Preference to drill shallow prospect rather than shoot more 2D seismic.

. Berenx Shallow well cost ~ $6million. Goal to spud well early 2015.

. Preparations for well planning have commenced.

. In event of shallow success: acquire 200km2 3D seismic to evaluate shallow discovery and map Berenx deep. Acquisition late 2015, cost ~ US$ 5-7 million

. If deep prospectivity confirmed: drill Berenx Deep well 2H 2016. Cost ~US$ 52 to 65 million

. Permit expires in March 2017

14 | EUROPA OIL AND GAS PLC | March 2014 Suggested Farm-in Strategy

. Two stage process.

STAGE 1 . Farm-in to shallow prospectivity <4000m section. . Pay share of back costs currently at ~US$ 1.65 million. . Promote on well costs (~US$ 6 million) targeting Berenx Shallow prospect to earn 50%

STAGE 2 . At farminees discretion pay 100% of acquisition and processing of 200km2 3D seismic survey (~US$ 5-7 million) to earn 50% equity in Berenx Deep >4000m section . Subsequent drilling discretionary and on ground floor terms. A deep well is likely to cost ~US$ 52-65 million

15 | EUROPA OIL AND GAS PLC | March 2014 Opportunity Summary

. Onshore France: Aquitaine Basin - proven hydrocarbon province with ~ 12 TCF developed gas to date . Appraisal of the Berenx discovery in north Pyrenean foothills - proven gas accumulations in allochthonous and autochthonous reservoir sequences . Two accumulations with ~ 1TCF of resource potential . Naturally fractured carbonate reservoirs . Potential NPV(10) drilling success case (deep + shallow) ~ US$1.5 billion . Gross dry hole cost shallow prospect ~US$ 6 million + back costs.

16 | EUROPA OIL AND GAS PLC | March 2014 For further information contact:

Europa Oil & Gas (Holdings) PLC Porter Street, London, W1U 6DD UK

Telephone +44 20 7224 3770

[email protected] www.europaoil.com

17 | EUROPA OIL AND GAS PLC | March 2014