PILOT ENERGY LIMITED — Capital/Financing Update 2017

Feb 5, 2017

Pilot Energy Ltd ABN 86 115229 984 Level 2, 55 Carrington Street Nedlands, WA 6009, Australia T: +61 8 9423 3200

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Announcement to ASX

6 February, 2017

WA-481-P Technical Update

Pilot Energy Ltd (the Company , ASX: PGY) is pleased to provide the attached technical update further to the Company’s announcement of 30 January 2017, in which the major prospective oil and gas resources for exploration permit WA-481-P were announced.

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Enquiries

Iain Smith, Managing Director, Tel: +61 412 638019, email: ismith@pilotenergy.com.au

About Pilot Energy : Pilot Energy Ltd is an emerging junior oil and gas exploration company that is implementing a low-cost, counter-cyclical strategy to develop a portfolio of high quality oil and gas exploration assets. The Company’s aggressive new ventures program has rapidly resulted in acquisition of material working interests in the WA-481-P, WA-507-P, WA-503-P and EP416/480 exploration permits, located offshore and onshore Western Australia, in addition to a minor working interest in the EP437 permit. Key to Pilot Energy’s strategy is minimisation of project entry cost and work commitments, while allowing sufficient time to add value through desktop studies prior to seeking farmin partners to fund seismic and/or drilling. Pilot Energy works closely with industry partners such as seismic contractors in order to develop creative pricing models for services that help to reduce the Company’s upfront cash investment.

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WA-481-P Prospective Resources Assessment

Disclaimer

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This presentation may contain certain statements and projections provided by or on behalf of Pilot Energy Ltd (PGY) with respect to anticipated future undertakings. These forward-looking statements reflect various assumptions by or on behalf of PGY. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of PGY which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and resource estimation, environmental risks, physical risks, legislative and regulatory changes, political risks, project delay or advancement, ability to meet additional funding requirements, factors relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Consequently, there can be no assurance that such statements and projections will be realised. Neither PGY, or any of its affiliates, advisers, consultants, agents or any of their respective officers or employees ( Relevant Parties ) make any representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved.

Additionally, PGY makes no representation or warranty, express or implied, in relation to, and to the fullest extent permitted by law, no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted by PGY as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this Presentation or any omission from this Presentation or of any other written or oral information or opinions provided now or in the future to any Recipient or its advisers. In furnishing this presentation, PGY undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

Prospective Resources are those quantities of petroleum estimated as of a given date to be potentially recoverable from undiscovered accumulations by the application of future projects. Contingent Resources are the estimated quantities of petroleum that may be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies.

Refer to the Company’s announcement of 30 January 2017 for details of prospective and contingent resources.

WA-481-P Introduction

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• § Highly prospective permit with numerous oil & gas prospects

• § Total prospective resources of up to 435 MMBOE

• § Four hydrocarbon trends, three of which are de-risked by existing discoveries

• § Prospects to south of Cliff Head oilfield are significant, and situated directly on oil migration path

• § Dunsborough oil discovery and adjacent prospects could lead to an oil production hub

• § Largest oil prospect offers potential for up to 78 MMBbls

• § Frankland gas discovery with nearby potential could lead to a gas production hub , via Dongara facilities

• § Even a small oil discovery could be commercialised , via Cliff Head facilities

• § Leander Reef trend remains untested and offers significant upside

WA-481-P Location

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• § Very large permit (17,745 km[2] )

• § Pilot Energy 60% (Operator)

• § Proven petroleum system

§ Located over offshore extension of north Perth Basin hydrocarbon province

• § Shallow water

§ Highly prospective for both oil and gas

§ Close to existing oil & gas facilities with spare capacity

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Dongara
gas field
450 Bcf
EP437
Waitsia
gas field
344 Bcf
WA-481-P
Hovea oil
field
10 MMBbls
Cliff Head
oil field
18 MMBbls
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A Proven Petroleum System

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• § On trend with numerous oil and gas fields

• § Permit surrounds Cliff Head oil field (18 MMBbls)

• § Dunsborough oil discovery has 2C contingent resources of 6 MMBbls

• § Potential tieback to future discovery

• § Frankland gas discovery has 2C contingent resources of 42 Bcf

• § Additional potential on-trend

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Dunsborough oil
discovery
Dongara
6 MMBbls
gas field
Waitsia
450 Bcf
gas field
344 Bcf
Frankland gas
discovery
42 Bcf
Hovea oil
field
10 MMBbls
Cliff Head
oil field
18 MMBbls
Xanadu
prospect
(NWE)
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Structural Setting

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• § Abrolhos sub-basin runs north-south through the permit

• § Structural highs flank the sub-basin to east and west

• § Major oil & gas source kitchen

• § Basin is thermally mature and generative

• § Migration of hydrocarbons from Abrolhos sub-basin, eastwards up to structural high

• § Faulting along structural high has created numerous structural closures for entrapment of hydrocarbons

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Oil & Gas
Migration
Source
Kitchen
Abrolhos
sub-basin
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Stratigraphy

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§ Good quality clastic reservoirs in Dongara Sandstone and Irwin River Coal Measures (e.g. Cliff Head)

• § High quality source rocks in Irwin River Coal Measures (gas and some oil) and the Kockatea Shale (oil)

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Reservoir
Oil Source
Reservoir
Reservoir
Gas Source
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Prospects & Leads

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• § Seismic interpretation completed

• § 13 structural prospects identified

• § Significant prospective resources determined

• § Four main focus areas

• § Cliff Head oil trend

• § Dunsborough oil trend

• § Frankland gas trend

• § Leander Reef oil trend

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Wye Knot-1
Dunsborough
Drilling
Trend
Location
EP437
Frankland
Trend
Leander
Reef
Trend
Cliff Head
Trend
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Cliff Head Oil Trend

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• § Three prospects located in vicinity of Cliff Head oil field (18 MMbbl)

• § Two southerly prospects located directly on oil migration path from source kitchen to Cliff Head

• § Good potential for large discoveries

§ Even small discoveries of order of 3 MMbbls could be commercialised via Cliff Head facilities, just 10km to the northeast

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Cliff Head Oil
Field
Cliff Head
South
Cliff Head Prospect
SW Prospect
Oil Migration
Pathway
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Cliff Head Oil Trend Seismic Example

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Top Cattamarra Fm
Top Dongara Fm
Cliff Head
Oilfield
Cliff Head
South
Cliff Head SW Prospect
Prospect
Data Gap
Between
Seismic Lines
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Composite Seismic Line

Cliff Head Oil Trend Resources

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Best estimate prospective resources over 3 prospects 101.7 MMBbls

Largest prospect has potential for up to 78 MMBbls

	Prospect	Prospective Resources MMbbl
		Low	Best	High
	Cliff Head SW Dongara	11.0	20.0	35.0
	Cliff Head SW IRCM	14.0	24.8	43.4
	Cliff Head SW Total	25.0	44.8	78.4
	Cliff Head S Dongara	2.1	4.0	7.3
	Cliff Head S IRCM	4.8	8.7	15.4
	Cliff Head S Total	6.9	12.7	22.7
	Twin Lions W Dongara	13.0	24.6	43.4
	Twin Lions W IRCM	11.5	19.6	32.4
	Twin Lions W Total	24.5	44.2	75.8
	Twin Lions UpdipDongara	0.7	1.3	2.5
	Twin Lions UpdipIRCM	2.0	3.8	7.0
	Twin Lions Updip Total	2.7	5.1	9.5
	TOTAL ALL PROSPECTS OIL	Prospective Resources MMbbl
		Low	Best	High
		59.1	106.8	186.4

Dunsborough Oil Trend

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• § Dunsborough-1 oil discovery has 2C contingent resources of 6 MMBbls

• § Three additional structures mapped on trend – Yungarra, Burney and Bootenal

• § Prospects substantially derisked by Dunsborough-1 discovery

• § Discovery of incremental oil resources could well create a hub for commercial development

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Bootenal
Prospect
Burney
Prospect
Yungarra
Prospect Dunsborough
oil discovery
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Dunsborough Oil Trend Seismic Example

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Top Cattamarra Fm
Top Dongara Fm
Bootenal
Prospect
Burney
Prospect
Dunsborough
Oilfield
Data Gap
Between
Seismic Lines
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Composite Seismic Line

Dunsborough Oil Trend Resources

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2C contingent resources 6 MMBbls

Best estimate prospective resources over 4 prospects 35 MMBbls ~~Largest prospect has potential for up to 31 MMBbls~~

	Prospect	Contingent Resources MMbbl			Prospective Resources MMbbl
		1C	2C	3C	P90	P50	P10
					Low	Best	High
	Dunsborough-1 Dongara	2.4	4.2	6.8
	Dunsborough-1 IRCM	0.9	1.8	3.0
	Total	3.3	6.0	9.8
	Bootenal Dongara				2.3	4.8	9.1
	Bootenal IRCM				1.8	3.1	5.0
	Total Bootenal				4.1	7.9	14.1
	BurneyDongara				1.1	2.7	6.6
	BurneyIRCM				0.7	1.4	3.2
	Total Burney				1.8	4.1	9.8
	Batavia Updip Oil				8.8	15.4	31.3
	Yungarra Dongara				3.0	6.3	11.9
	Yungarra IRCM				0.9	1.6	2.7
	Total Yungarra				3.9	7.9	14.6
	TOTAL ALL PROSPECTS OIL	Contingent Resources MMbbl			Prospective Resources MMbbl
		1C	2C	3C	Low	Best	High
		3.3	6.0	9.8	18.6	35.3	69.8

Frankland Trend

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• § Frankland-1 gas discovery contains 2C contingent resources of 42 Bcf

• § Minimum economic field size estimated at 60 Bcf, assuming gas sales price of A$6.50 per mmbtu

• § Frankland-2 appraisal well was drilled in structurally low position but did encounter gas

• § Two look-alike structures mapped on trend

• § Gas play de-risked by Frankland-1 discovery

• § Discovery of additional gas resources would likely result in commercial resource

• § Dongara gas infrastructure located just 20km to east

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Frankland NE2
Prospect
Frankland
Gas Field
Frankland NE
Prospect
Frankland -2
Appraisal
Well
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Frankland Trend Seismic Example

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Top Cattamarra Fm
Top Dongara Fm
Frankland NE2
Prospect
Frankland
Frankland Gas
NE Prospect
Field
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Frankland Trend Resources

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2C contingent resources 41.6 Bcf

Best estimate prospective resources over 2 prospects 45.6 Bcf Largest prospect has potential for up to 46 Bcf

	Prospect	Contingent Resources Bcf			Prospective Resources Bcf
		1C	2C	3C	Low	Best	High
	Frankland-1 Dongara	23.4	33.0	46.1
	Frankland-1 IRCM	6.0	8.6	12.8
	Total	29.4	41.6	58.9
	Frankland NE Dongara				7.4	12.0	18.6
	Frankland NE IRCM				2.3	3.8	6.0
	Total Frankland NE				9.7	15.8	24.6
	Frankland NE 2 Dongara				13.5	21.8	33.5
	Frankland NE 2 IRCM				4.8	8.0	12.2
	Total Frankland NE 2				18.3	29.8	45.7
	TOTAL ALL PROSPECTS GAS	Contingent Resources Bcf			Prospective Resources Bcf
		1C	2C	3C	Low	Best	High
		29.4	41.6	58.9	28.0	45.6	70.3

Leander Reef Trend

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• § Three structures, all significantly larger than Cliff Head oil field

• § Each exhibits structural closure an area of over 20 km[2]

• § Leander Reef-1 well was drilled in 1983

• § Well drilled in to fault, missing the target reservoir horizon

• § Leander Reed Trend therefore remains untested

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Leander Reef-1 Well
Leander Reef
Upthrown
Cliff Head Oil
Field
Leander Reef
West
Leander Reef
Downthrown
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Leander Reef Trend Seismic Example

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Top Cattamarra Fm
Leander Reef-1
Well
Well intersects fault,
missing Dongara
reservoir
Top Dongara Fm
Leander Reef
Upthrown
Leander Reef Prospect
Downthrown
Prospect
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Leander Reef Trend Resources

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Best estimate prospective resources over 3 prospects 98 MMBbls Largest prospect has potential for up to 78 MMBbls

	Prospect	Prospective Resources MMbbl
		Low	Best	High
	Leander Reef Upthrown	26.5	46.1	78.1
	Leander Reef Downthrown	21.4	38.0	66.3
	Leander Reef West	8.0	14.0	23.6
	TOTAL ALL PROSPECTS OIL	Prospective Resources MMbbl
		Low	Best	High
		55.9	98.1	168.0

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www.pilotenergy.com.au

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