PILOT ENERGY LIMITED — Capital/Financing Update 2015

Aug 31, 2015

EMPIRE OIL & GAS NL

1 September 2015

ABN 55 063 613 730 Ground Floor 229 Stirling Highway CLAREMONT 6010 WESTERN AUSTRALIA Telephone: + 61 8 9286 4600 Facsimile: + 61 8 9284 6588 Email: admin@empireoil.com.au Web: www.empireoil.com.au

The Manager Company Announcements Office Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000

Empire further sharpens exploration focus on core North Perth Basin acreage with farm-out of South Perth Basin permits

Please find attached an Empire Oil & Gas NL (ASX: EGO) ASX announcement regarding the focus on core North Perth Basin acreage with farm-out of South Perth Basin permits.

Yours sincerely For Empire Oil & Gas NL

Rachel Rees Company Secretary

Empire further sharpens exploration focus on core North Perth Basin acreage with farm-out of South Perth Basin permits

Empire Oil & Gas (ASX: EGO) is pleased to advise that it has continued to rationalise its exploration portfolio with a farm-out agreement covering its South Perth Basin acreage, enabling Empire to focus on its exploration campaign in the highly prospective North Perth Basin permits.

Under the agreement, Pilot Energy (ASX: PGY) will earn 60 per cent equity in Empire's South Perth Basin permits EP 416 and EP 480. Pilot Energy will also assume operatorship and Empire will maintain a 40 per cent non-operated interest.

Pilot Energy will pay Empire a total of \$450,000 in two instalments, subject to various government approvals being obtained prior to 31 March 2016. Empire will also be freecarried by Pilot Energy through the first two years of expenditure, excluding any field-based operations.

A core element of Empire's exploration strategy was to rationalise its exploration portfolio to allow the Company to focus on the proven North Perth Basin. In line with this strategy, Empire has already divested its interests in WA's onshore Carnarvon Basin.

Empire continue to process and interpret data from the Black Swan Airborne Geophysical Survey conducted over Empire's North Perth Basin permits. Interpretive results should be available late in the December Quarter, 2015 and will be integrated into the existing geological and geophysical data base for EP 416 and EP 480 to determine the next step in the work program.

Empire is also preparing to drill the Red Gully North-1 well in EP 389 later this year.

Media: Read Corporate Paul Armstrong +61 8 9388 1474