Company Presentation Q3 - 2020

This Presentation has been prepared by PetroNor E&P Limited (Company).

Summary information

This Presentation contains summary information about the Company and its subsidiaries (Company Group) and their activities. The information in this Presentation does not purport to be complete or comprehensive, and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with the Company's other periodic and continuous disclosure announcements lodged with Oslo Axess, which are available at www.oslobors.no

Not financial product advice

This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other offer document under Australian law or the law of any other jurisdiction. This Presentation is not financial advice, a recommendation to acquire Company shares or accounting, legal or tax advice. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs and seek such legal, financial and/or taxation advice as they deem necessary or appropriate to their jurisdiction. The Company is not licensed to provide financial product advice in respect of Company shares.

Future performance

This Presentation contains certain forward looking statements. The words anticipated, expected, projections, forecast, estimates, could, may, target, consider and will and other similar expressions are intended to identify forward looking statements. Forward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. This difference may be due to various factors, including, among others: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; the outcome of negotiations, conclusions of economic evaluations and studies; changes in project parameters and returns as plans continue to be refined; future price of oil and gas; drilling risks; political instability; insurrection or war; arbitrary changes in law; delays in obtaining governmental approvals or financing or in the completion of development activities. The forward looking statements in this Presentation speak only as of the date of this Presentation. To the full extent permitted by law, the Company and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. Nothing in this Presentation will under any circumstances create an implication that there has been no change in the affairs of Company Group since the date of this Presentation.

Investment risk

An investment in the Company shares is subject to investment and other known and unknown risks, some of which are beyond the control of the Company Group. The Company does not guarantee the performance of the Company or any particular rate of return on the performance on the Company Group, nor does it guarantee the repayment of capital from the Company or any particular tax treatment. Due to the widespread Covid-19 virus, the situation is highly volatile implying significant risk on forward looking statements.

Not an offer

This Presentation is not and should not be considered an offer or an invitation to acquire Company shares or any other financial products and does not and will not form any part of any contract for the acquisition of the Company shares. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. Company shares have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.

Competent person statements

The information in this Presentation relating to hydrocarbon resource estimates for Gambia and Senegal includes information compiled by Dr Adam Law, Geoscience Director of ERC Equipoise Ltd. Dr Law, is a post-graduate in Geology, a Fellow of the Geological Society and a member of the Society of Petroleum Evaluation Engineers. He has 18 years relevant experience in the evaluation of oil and gas fields and exploration acreage, preparation of development plans and assessment of reserves and resources. Dr Law has consented to the inclusion in this Presentation of the matters based on the information in the form and context in which it appears. The information in this Presentation relating to hydrocarbon resource estimates for Congo-Brazzaville includes information compiled by AGR Petroleum Services AS ("AGR"). AGR has consented to the inclusion in this Presentation of the matters based on the information in the form and context in which it appears.

Disclaimer

The Company's advisers have not authorised, permitted or caused the issue, lodgement, submission, despatch or provision of this Presentation and do not make or purport to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by the advisers. To the maximum extent permitted by law, the Company, its representatives, advisers and their respective officers, directors, employees, agents or controlling persons (collectively, the Representatives) expressly disclaim all liabilities in respect of, and make no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this Presentation or in any other documents furnished by the foregoing persons.

Statements made in this Presentation are made only at the date of this Presentation. The information in this Presentation remains subject to change without notice.

Q3 Highlights

Growth

Production in PNGF Sud continues to grow despite delayed infill drilling program

Re-instated a strong exploration portfolio

Financials Continue to deliver a solid EBITDA despite depressed oil price

Governance

Registered with the Extractive Industries Transparency Initiative (EITI)

PetroNor is a full-cycle Africa-focused independent

Current production of ~2,650 bopd targeting a ten-fold increase by YE-2023
Strong ambitions of further regional growth with focus on Sub-Saharan Africa
Experienced management team with proven track record of industry leading value creation
Supportive strategic shareholder in Petromal (38%), part of National Holding (Abu Dhabi)

Latest update

Production at PNGF SUD with a gross production of ~22,924 bopd in Q3 2020
Re-instated the A4 license in The Gambia
Further suspension of the arbitration in Senegal with 3 months
Initiated "market maker" agreement with SB1
Acquired the Sinapa and Esperança licenses in Guinea Bissau

Portfolio Overview

Key Metrics

resources²

Highlights Q3 2020

Maintained positive EBITDA in year to date despite reduction in oil prices during spring and summer with strict cost discipline during the ongoing pandemic
PNGF Sud continued steady oil production during Q3 2020, with an average of 2,407 bopd net to PetroNor
New 30-year Gambian A4 licence to be awarded as part of settlement agreement for past arbitration for A1 & A4 licences, prior A4 licence costs were impaired during the arbitration process, however A4 past exploration costs will carried into the new A4 licence.
New USD 3.9m loan facility provided by related party Symero Ltd on terms equivalent to other sources of external finance in settlement of dividend payable to minority interest

Financial Position - 30 September 2020

Cash and bank balances USD 18.0m (Dec 2019: USD 27.9m)

Positive working capital USD 20.7m (Dec 2019: USD 8.4m)

Interest bearing debt USD 18.9m (Dec 2019: USD 12.9m)

USD 2.5m (Dec 2019: USD 12.9m) Non-current USD 16.4m (Dec 2019: nil)

Current

Total revenue USD 30.3m (2019: USD 48.1m)

EBITDA* USD 10.6m (2019: USD 6.9m)

Net profit* USD 2.9m (2019: USD 11.3m)

Average selling price USD 43.6/bbl (2019: 62.7/bbl)

Quantity of oil lifted 320,406/barrels (2019: 296,875/barrels) Nine months to 30 Sep 2020

Total revenue USD 50.7m (2019: USD 76.4m)

EBITDA* USD 24.3m (2019: USD 37.2m)

Net profit* USD 7.9m (2019: USD 11.7m)

Operating cash flow USD (0.6)m (2019: USD 31.3m)

Quantity of oil lifted 787,409/barrels (2019: 628,948/barrels)

Average selling price USD 39.9/bbl (2019: 66.2/bbl)

* - Figure adjusted for USD 19.4m share based payment for merger transaction with African Petroleum Corporation Ltd in August 2019

Congo Brazzaville

Congo Brazzaville – Country Overview

Country fundamentals

Large number of opportunities in Contingent resources and Exploration Licensing
A combination of a mature province and underexplored opportunities
Attractive fiscal terms compared to country's peers
Oil production started in 1960 with the small onshore field Pointe Indienne

1 2 3

Production Base – PNGF Sud¹

High Margin Producer With Growth Potential

Mature oil asset which came on stream in 1987 and holds a significant remaining potential
Located in shallow waters (80-100m) with significant infrastructure in place
- Seven steel jackets as drilling or processing centers
- 62 producing wells across five fields
New partnership established in Jan. 2017 operated by Perenco² , a world leading operator of mature assets in emerging markets
Asset revamped with new partnership with further potential to increase production through workovers and infill drilling
- Substantial scope for increased oil recovery
- Strong IRR from incremental low-effort measures

1) Consisting of three Production sharing Agreements: Tchibouela II, Tchibeli–Litanzi II and Tchendo II
2) A private held French oil & gas company with current production of 465.000 boepd
3) PNGF Sud indirect interest of 10.5% to PetroNor through Hemla E&P Congo's 20% interest
4) Independent competent person's report prepared by AGR (oct 2019) as of 1 Jan 2019, volumes above adjusted to 1 Jan 2020 by subtracting 2019 production

2017 – 2020 PNGF production growth

Production has increased from <15 kbopd late 2016 to 22.9 kbopd in 2020
CAPEX (\$44m) related to current production growth
- Well workovers
- Surface debottlenecking
- Studies
- Equivalent CAPEX cost = \$0.8/bbl
Additional 2019-20 spent CAPEX (\$89m) associated with infill drilling and related infrastructure for 2021 infill drilling program

Budget discipline - OPEX

2020 PNGF production

PNGF continue to perform above expectations

The average 2020 production inclusive Q3 is 22,957 bopd including allocation corrections for the year
- Corresponds to increase of 4% from the average 2019 production (21,941)
- PetroNor Net ~2,410 bopd
- Shutdowns include control system failures and minor interruptions due to gaslocks
- Workover capacity to prioritize if critical wells fail i.e. on ESP (Electrical Submersible Pumps)
Seen from the production graph, there are few significant shut -downs and a very stable production ^> Wells uptime >92% ⁰

- > Facility regularity ~96%

PNGF Sud: Upcoming Drilling Program to Fuel Production Growth

Litanzi Infill Drilling Program Approved Drilling Targets

Infill drilling targeting proven undeveloped reserves in un-swept fault terraces
- Currently one producing well and one water injector
- Targeting to increase production from ~1,000 bopd to ~3,000 bopd (gross)
- Increases field recovery factor from 13% to 27%, adding 9.3 mmbbl (gross)
Drilling of 4 new wells (2 producers + 2 injectors)
Includes re-purposing of jack-up rig as a low-cost wellhead platform

Tchendo Infill Drilling Program

Development Plan Schedule ^> 19 producing wells and one water injector currently
2019: New workover unit installed allows fast & cheap workovers
2020: New wellhead platform w/ 12 new slots & drilling rig to be installed
- Creating new area hub annual opex savings of USD 2.2m
2021: Initial 6-7 infill wells production from ~4,500 to 6,500 bopd (gross)
- Significant further resource potential, particularly for Senonian reservoir due to low current recovery factor (3%)

Tchibeli Infill Drilling Program

Infill programme to follow

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PNGF Bis – Near Field Opportunity Adjacent to PNGF Sud

Near Field Development tie-back to PNGF Sud

Located ~11km from existing PNGF Sud fields, containing the Louissima discoveries – gross 2C contingent resources of 29 mmbbl
PetroNor has right to enter the license (14.7% indirect WI) together with Perenco (operator), negotiations expected to conclude late 2020 or early 2021
Early production scheme planned prior to decision to proceed with full development, expected to commence in 2021
Field planned developed using low-cost jack-up with minimum topside upgrading and catenary pipeline to Tchibouela
Less than USD 10/bbl development capex

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The Gambia, Senegal and Guinea Bissau

West African Exploration "Hotspot" – the MSGBC Basin

Exploration Hotspot

The MSGBC Basin
- Mauritania Senegal Gambia Guinea Bissau - Guinea Conakry
Extensive drilling activity expected in the region
- BP : Gambia, A1
- FAR / Petronas : Gambia, A2
- CNOOC / Impact : AGC
- PetroNor / FAR : Guinea-Bissau, Sinapa
- PetroNor : Gambia, A4

	2020					2021									2022
Month	inf																			방송 일 등 일 일 일 후 후 일 일 일 일					gmt	dəş	തി 1900 1900	Dec
MSGBC																		- 31 8 0 -

Sangomar Field Operated by Woodside – First Oil 2023

APCL 2017

Attractive licenses acquired from SPE

PetroNor acquired the SPE Guinea Bissau AB from Svenska
A significant addition to the MSGBC portfolio
- The Sinapa license (Block 2)
- The Esperança license (Block 4A and 5A)
- 78.6% and Operator in both licenses

Atum prospect is ready to drill

Similar structure to SNE field in Senegal
Significant prospect size
- Atum and Anchova with a net P50 recoverable prospective resource of 568 mmbo (PDC CPR report Dec 2019)
Drilling location proposed by SPE

		Block 2	Blocks 4A & 5A
Svenska		78.6%	78.6%
FAR		21.4%	21.4%
				22.94
Petroguin	Petroguin with 10% back in right on DOC - interest upon determination of commercial discovery, Svenska 70.71% and FAR 19.28%, Petroguin	0%	0%
10%.	Key characteristics
			Block 2 (Sinapa) Blocks 4A & 5A Esperanca)
Area (km²)	2348		2.615	11.76

Courtesy Svenska Petroleum Exploration

The Gambia Block A4 Prospectivity

APC Corporate Presentation

APC Corporate presentation 2017

Acacia Senonian 137 mmbo*

Albian 460 mmbo+ Aptian 1140 mmbo*

Lamia

SNE-1 Discovery

Nigeria – Country Overview

Various Woodmac sources

Country fundamentals

Largest liquid producer in Africa at ~2.2 million b/d
Gas production at 8 bcf/d of which 30% is flared, 70% of sales to NLNG, 30% to domestic market
First commercial oil discovery in 1956 at Shell D'Arcy's Oloibiri field in today's OML-29
Well developed infrastructure and service industry

Production 2,240,000 bliq/day 3,200,000 boe/day	Reserves 9,790 mmbliq 15,455 mmboe	Cont Resource 15,744 mmbliq 38,296 mmboe

The Aje Field: Intention to Revitalize License

Key redevelopment

Producing asset¹ with significant upside potential to be unlocked through new partnership and different technical approach
During Q4 2019, PetroNor acquired an interest in OML 113 through two separate transactions:
- Acquisition of Panoro's non-operated interest for USD 10m payable in PetroNor shares²
  - Share consideration to be spun off to Panoro shareholders
- Partnership with existing operator YFP to revitalize the Aje field through Aje Petroleum SPV
  - PetroNor to hold 45% interest in Aje Petroleum SPV economic interest in OML 113 starting at 13.08% and expected to reach 17.4% within 3 years based on projected payout phases
  - PetroNor to be engaged by YFP as the operator of OML 113, serving as a technical service company
Field redevelopment being planned with replacement of FPSO, increased liquids production and extraction of large gas resources
- FPSO could become regional field center substantial proven resources nearby such as Ogo and Albian

Aje field location and partnership overview

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New SPV being formed with Operator (YFP) to provide technical assistance, align partners and progress development of liquid and gas resources

¹⁾ Assumed 2020 production of 260 bopd (net)

²⁾ 6.502% participating interest, with 16.255% cost bearing interest, representing an economic interest of 12.1913% in OML 113. Option to pay partly in cash should the PetroNor share price fall below USD 0.13 per share; Future consideration of up to USD 25M based on gas production royalty in a success case

Targeting Improved Gas and Condensate Recovery

Bring-in new FPSO with increased gas processing capacity

Improve operational efficiencies and provide sufficient gas processing capacity
Three suitable replacements have been identified; two vessels have been inspected

Infill drilling & Increase liquids production

Drilling of three new wells for oil and gas production
Offshore condensate stripping and export of wet-gas to shore

Development of gas resources

Onshore gas plant (land identified)
Gas to be sold to nearby WAGP and Lagos/Lekki gas-to-power market
Power production through a barge solution
Produced LPGs and propane to be sold in the domestic market

Forward Plan for Aje New field development

2021: Drilling of two new gas producers and one oil producer (in addition to the existing two wells)

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Expected to increase production to 15 kboepd (gross)
2021: Bring in a cost effective FPSO with + 110 mmscfd gas capacity
- OPEX USD ~30m/yr including FPSO bareboat, O&M and G&A
2024: Expand gas production capacity to 110 mmscfd through drilling of additional two gas wells
Project planned split in upstream and midstream parts to maximize access to non-dilutive capital

Production Profile (gross, kboepd)

PetroNor Flare Gas Reduction Initiative

Partnership with Aragon on Gas Technology

Prequalified together with Aragon for the ongoing flare-gas tender in Nigeria