HYDROCARBON DYNAMICS LIMITED — AGM Information 2013

Apr 23, 2013

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Pryme Energy Limited ASX Code: PYM OTCQX Code: POGLY Annual General Meeting of Shareholders

24 April 2013

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Drilling the Rosewood Plantation 21H well in Turner Bayou

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Disclaimer, Forward Looking Statements and Competent Person Statement

This presentation has been prepared by Pryme Energy Limited (the “Company”). This presentation is being provided to investors for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Company.

The information presented in this presentation may contain predictions, estimates and other forward-looking statements. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about the estimates of reserves, competition, government regulation and the ability of the company to meet its stated business goals.

Prospective investors should make their own independent evaluation of an investment in the Company or seek advice from their financial adviser, accountant, lawyer, stockbroker or other professional adviser. Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act, or otherwise. This presentation does not amount to, involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product.

Technical information contained in this presentation in relation to the projects of the Company have been reviewed by Mr Greg Short, BSc. Geology (Hons), a Director of Pryme who has more than 33 years’ experience in the practise of petroleum geology. Mr Short consents to the inclusion in this presentation of the information in the form and context in which it appears.

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ASX Code: PYM

Shares on issue

289,708,568

$10m $0.021-$0.14 $0.034

Market Cap

Price Range 12 months Current Price (as of 22 April 2013)

Major Shareholders Panorama Ridge Pty Ltd 13.28% Belmont Park Investments Pty Ltd 13.11% BT Portfolio Services Limited 4.29% Mr Anthony Rispoli 3.81% Mr Peter Daniels Adams 2.38% Forstu Pty Ltd 1.62% Pettett Pty Ltd 1.51% Jojeto Pty Ltd 1.45%

Top 20 Hold

Top 20 Hold 52.00% Cash position A$2.5 million Debt Facility with Macquarie Bank A$6.5 million

Non-Recourse (recourse to Turner Bayou project only)

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Flaring gas while drilling the Rosewood Plantation 21H well

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Company Snapshot

Underpinned by stable oil and natural gas production

Current Daily Production (Net to Pryme) Oil 96 Bbls/day Natural Gas 120 Mcf/day*

Total /Day 116 BOE/day Total /Month 3,480 BOE/month Annual net revenues A$2.7m

Revenue from the Rosewood Plantation 21H well is not included in these figures *Natural gas is converted at a ratio of 6.1:1 into barrels of oil equivalent.

Results of 2012 Drilling and Exploration

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• Disappointing result in Turner Bayou for Pryme shareholders, the Board and management team

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• Company wide production flat compared to 2011 without including Catahoula Lake sold in Jan 12

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• Management focus on executing in Turner Bayou

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• Stable oil and gas exploration and production from mature projects continue to underpin the Company

C o m a n S n a s h o t p y p

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Turner Bayou Rosewood Plantation 21H (61.53% WI / 46.15% NRI)

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Well drilled to 19,168 feet (5,842 metres) including a 4,480 feet (1,365 metre) lateral

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• Strong oil response during drilling from significant fractured/faulted zone in toe of lateral

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• Currently flowing unassisted 50 Bbls of oil per day (23 Bbls net to Pryme.) Formation damage may be impeding production

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• Bottom hole pressure testing supports damage to formation during drilling and completion

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• Mud weights and drill cuttings a major issue during completion; high risk of intrusion into natural fractures

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• Remediation options being considered

Oil being produced while drilling the Rosewood Plantation 21H well in Turner Bayou

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Deshotels 20H (40% WI)

Deshotels 13H (40% WI)

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• 12 major oil and gas bearing fracture zones, many smaller fractures intersected

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• 128 oil bearing fractures indicated by fracture identification log

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• Gas shows and oil over shakers while drilling

• Currently producing 45 barrels of oil per day gross (14 barrels per day net to Pryme).

• Well damaged – low production rates due to mechanical problems during completion and stimulation which were not encountered in second well

• Plan to install lift system on well once well stops flowing to improve production in future

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• Burning up to a 70 foot flare and oil produced to surface

• Currently producing 40 barrels of oil per day gross (12 barrels per day net to Pryme)

• Mechanical failures with the installation of Packers Plus production liner

• Currently working toward increasing efficiency of pump to increase production

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Pump jack on the Deshotels 13H

Oil being sold from the Deshotels 20H

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Austin Chalk Regional Trend Map and Project Location

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The higher the fracture density the higher the oil potential of the Austin Chalk

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Horizontal drilling increases the chance of intersecting vertical fractures

• Several vertical wells were drilled on our survey in the period from the late 1970’s to the mid 1990’s and include one of the best vertical wells in the trend which produced 572,000 Bbls of oil and 0.58 Bcf of natural gas from one fracture network

Interpretation indicates an erosional event occurred during the Upper Cretaceous age resulting in chalk thinning from 1,000 feet to 450 feet in some sections

• Complex drilling primarily due to depth and dealing with heavy drilling mud intruding into naturally occurring fractures

• Future drilling and completion, or remediation must focus on establishing higher sustainable production rates

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Turner Bayou acreage over 3D seismic survey

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What have we learned

Turner Bayou

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• Technical data shows significant resource potential, but exposure to risk (range and nature) deemed very challenging for a small company with limited resources

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• The attraction of drilling a well offset from two wells with mechanical problems and known hydrocarbons with LLS oil market pricing led to Pryme committing to and drilling the Rosewood Plantation 21H at a higher working interest of 61.5%

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• In an effort to provide shareholders with a greater exposure to potential value creation through drilling, Pryme management focused all of its efforts on Turner Bayou and became increasingly reliant on near term drilling success to replenish invested capital and grow the company

Strategic Review and Vision

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• Strategic review of Pryme’s business model and investment policy with some initial changes in direction outlined in the later part of this presentation

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• The Board’s vision for Pryme remains to grow into a high quality independent US oil and gas company capable of delivering high return on investment for shareholders over the next 3-5 years through the exploration and development of projects throughout the USA

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History

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• 2006 Listed on ASX with producing Middle Wilcox oil asset with a mission to build a profitable exploration company

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• 2007 Pryme shot 80 square mile (52,000 acre) 3D survey in Avoyelles Parish LA (Turner Bayou)

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• Pryme acquires 25,000 gross acres, 10,000 net acres around Austin Chalk fracture anomaly

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• 2009 Pryme begins Austin Chalk drilling program in Turner Bayou drilling the Deshotels 20H, completion complications hinder production

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• 2010 Pryme focuses on organic growth strategy by exploring in Middle Wilcox trend (Four Rivers); increased cash flow by 34%

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• 2011 Pryme completes second Austin Chalk well (Deshotels 13H) with additional mechanical problems hindering production

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• 2012 Pryme takes over as operator of Turner Bayou project and drills third Austin Chalk well (Rosewood Plantation 21H)

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• Possible formation damage limiting production from Rosewood Plantation 21H well, evaluating options for remediation/stimulation

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• 2013 Optimize value in Turner Bayou and review the business model, business processes and investment policy of Pryme

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Strategic Direction

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Extract value from Turner Bayou assets, i.e. source partner to drill or acquire production, acreage and or seismic

Engage marketing firm with industry reach to find strategic partner for asset acquisition or development

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Wilcox and Austin Chalk farm out potential

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Project consists of 25,000 gross acres, proprietary 3D survey and three producers at 150-200 BOPD (with remediation upside)

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Negotiate debt facility terms

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Grow production and cash flow through re-engaging in Middle Wilcox trend exploration with definable risk profile

Leverage existing relationship with exploration and land team in the trend

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• Continuously evaluate exploration team’s generated prospects and new acquisition opportunities

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Manageable risk profile with limited financial exposure

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Acquisition of strategic conventional Louisiana and/or Texas Gulf Coast assets (could include PDP (Proved Developed Producing) component)

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Take advantage of LLS (Louisiana Light Sweet pricing) market

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Strengthen technical team and management

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Four Rivers Middle Wilcox – Stacked Oil Sand Targets

• 15 opportunities to test multiple stacked pay reservoirs are defined, eight are ready to drill

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• All prospects are drilled on a “turn key” basis through the logging point, minimizing exposure

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• 4,000-7,000 feet depth range in the Middle Wilcox Trend

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Primary phase oil/liquids

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• Located in Louisiana and Mississippi on land

• Generally conventional in nature by way of smaller well defined reservoirs in a stacked pay environment where serendipity usually occurs with other zones

• Drilling and completion cost up to $600,000 gross

• Estimated Ultimate Recoveries (EUR) 50,000 to 250,000 Bbls of oil per well gross

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Typical pumping unit on a Four Rivers well

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Gulf Coast Acquisitions Multiple Zones – Oil and Liquids Rich Gas

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• Objective is to expand the range of access to large resources, while managing exposure to risk

• Opportunities consist of all resource and reserve classes and provide a more balanced approach to commodities with focus on liquids rich gas and oil. No dry gas.

• Most prospects are drilled on a “turn key” basis through the logging point, lowering mechanical risk exposure

• Multiple projects identified from shallow salt domes and other conventional prospects through to deeper “Tex Miss” type prospects (11,000 feet or deeper) conventional wells

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Rosewood Plantation 21H well head

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In Summary

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Producer with exploration and development upside

• Optimize value in Turner Bayou

• Reinstate Four Rivers program – Middle Wilcox oil

Add Gulf Coast exploration opportunities – focus on shallow oil Strengthen technical team

Deliver significant year-on-year share price growth for the next 3-5 years

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Site of Rosewood Plantation 21H with well head on the right hand side and flare stack in the distance to the left

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Contact Details

For further information please contact:

Australia

USA

Justin Pettett Managing Director Pryme Energy Limited Telephone: +61 7 3371 1103

Website: www.prymeenergy.com

Ryan Messer Chief Operating Officer Pryme Energy Limited Telephone: +1 713 401 9806 ASX Code: PYM OTCQX Code: POGLY

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