KENYA PROJECTS ASX : PCL CANNING BASIN EP 104 / R1 L15 NAMIBIA WALVIS BASIN EL 0037 KENYA LAMU BASIN L6 L8 L10A L10B

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1 ASX : PCL PANCONTINENTAL OIL & GAS NL KENYA PROJECTS March 2012 NAMIBIA WALVIS BASIN EL 0037 KENYA LAMU BASIN L6 L8 L10A L10B AUSTRALIA CARNARVON BASIN EP 424 EP 110 AUSTRALIA CANNING BASIN EP 104 / R1 L15

2 Disclaimer These materials are strictly confidential and are being supplied to you solely for your information and should not be reproduced in any form, redistributed or pass on, directly or indirectly, to any other person or published, in whole or part, by any medium or for any purpose. Failure to comply this restriction may constitute a violation of applicable securities laws. These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, or any offer to underwrite or otherwise acquire any securities, nor shall any part of these materials or fact of their distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision whatsoever in relation thereto. The information included in the presentation and these materials is subject to updating, completion, revision and amendment, and such information may change materially. No person is under any obligation to update or keep current the information contained in the presentation and these materials, and any opinions expressed in relation thereto are subject to change without notice. The distribution of these materials in other jurisdictions may also be restricted by law, and persons into whose possession these materials come should inform themselves about, and observe, any such restrictions. This presentation includes forward-looking statements that reflect the company s intentions, beliefs or current expectations. Forward looking statements involve all matters that are not historical fact. Such statements are made on the basis of assumptions and expectations that the Company currently believes are reasonable, but could prove to be wrong. Such forward looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing industry. Additional factors could cause actual results, performance or achievements to differ materially. The company and each of its directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in the presentation or these materials, and any change in the Company s expectations or any change in the events, conditions or circumstances on which these forward-looking statements are based, expected as required by applicable law or regulation. By accepting any copy of the materials presented, you agree to be bound by foregoing limitations. The summary report on the oil and gas projects is based on information i compiled by Mr R B Rushworth, h BSc, MAAPG, MPESGB, MPESA, Chief Executive Officer of Pancontinental Oil & Gas NL. Mr Rushworth has the relevant degree in geology and has been practising petroleum geology for more than 30 years. Mr Rushworth is a Director of Pancontinental Oil & Gas NL and has consented in writing to the inclusion of the information stated in the form and context in which it appears. 2

3 Pancontinental Snapshot Pancontinental Oil & Gas is listed on the Australian Securities Exchange (ASX) under code PCL Market Capitalisation of about A$ 170 million Projects in KENYA (18,000 sq km), NAMIBIA (17,000 sq km) and AUSTRALIA Growing Portfolio of East & Southwest African Assets Recognised Partners with Successful African Track Record Defined & Funded Work Programme 3

4 Pancontinental KENYA is a very favourable country for oil and gas projects- No indigenous oil or gas production--- hence a strong need for local energy production Transparent and encouraging legislation and fiscal regime Enthusiastic and supportive Ministry and national oil company (NOCK) Physical exploration opportunities in exciting geology 4

5 Apache, Tullow, Origin FAR Ophir BG Group, Premier KENYA PANCONTINENTAL Anadarko, Total Cove Shell Petrobras Ophir TANZANIA Statoil, ExxonMobil PANCONTINENTAL OIL & GAS EAST AFRICA MAIN OFFSHORE OIL & GAS PLAYERS* February 2012 *Not definitive, not complete MOZAMBIQUE Petrobras BG Group, Ophir ENI Anadarko, Mitsui, Bharat, Videocon, ENH Cove

6 Pancontinental Offshore Kenya Ethiopia Somalia PANCONTINENTAL OFFSHORE KENYA Four blocks totalling >18,000 sq km Significant long term holdings in prime areas Major partners with successful African track records Very large prospect potential (> 1 Billion Bbls) KENYA Tanzania Mozambique Pate 1 Wet Gas Flow Pemba Island Oil Seep Gas Discoveries Songo Songo Gas Field Mnazi Bay Gas Field Gas Discoveries Oil d G Di 0 Km 400 KENYA Tanzania L6 L8 Somalia L6-3,100km 2 FAR 60% Pancontinental 40% L8 5,123km 2 Apache 50% Origin 20% Pancontinental 15% Tullow 15% L10A 4,962km 2 BG 40% Cove 25% Premier 20% P i l 15% Oil and Gas Discovery L10A Pancontinental 15% L10B 0 Km L10B 5,585km 2 BG 45% Premier 25% Pancontinental 15% Cove 15% 6

7 Offshore Kenya- Bathymetry Sediment and Nutrient (Source Rocks) Input by Tana River Why is Pancontinental in Kenya s offshore Lamu Basin? A simple beginning----- BATHYMETRY KENYA NE SW Prevailing Currents imply. Counterclockwise Oceanic Circulation Tana River Delta progrades to the SSE Bulge in bathymetric contours off southern Kenya suggests a delta prograding to the south Interpreted NNE- SSW predominant current direction during delta formation 7

8 PalaeoceneDepth&Residual Gravityoffshore Why is Pancontinental offshore in Kenya s Lamu Basin? A simple beginning---- Tana River Sediment and Nutrient input GRAVITY DATA Basement Trough Axis L6 Basement Trough Axis L8 KENYA L10A Mbawa Trend - Tertiary Inversion Axis Gravity data supports location of oil kitchen troughs, shown in Dark Blue PANCONTINENTAL L10A Davie Ridge- Basement High Pemba Simba Ridge- Basement High

9 Offshore Kenya- Exploration Model Sediment and Nutrients (Source Rocks) Input by Tana River KENYA L6 L8 NE SW Prevailing Currents imply. Conterclockwise Oceanic Circulation L10A Mbawa Trend L10B Tana River Delta progrades to the SSE Pancontinental exploration areas optimally located in delta, over generating troughs and on Mbawa inversion trend 9

10 Plate Tectonics- PANCONTINENTAL M. Jurassic Plate Tectonic Reconstruction - Close-up Pancontinental Area of Interest Restricted seaway during continental separation- Good for hydrocarbon source rock deposition and preservation since?early Jurassic

11 Plate Tectonics- Late Cretaceous Plate Tectonic Reconstruction PANCONTINENTAL Madagascar India Separation SAUDI ARABIA AFRICA Restricted Circulation MGR WB NEOTETHYS OCEAN Enclosed seaway continues into Late Cretaceous Restricted Circulation SR INDIAN OCEAN PNG OCEANIC CRUST, DEEP AUSTRALIA DISTAL SHELF/BASIN PROXIMAL SHELF ANTARCTICA ACTIVE SPREADING RIDGE ACTIVE CONTINENTAL MARGIN CONTINENTAL MARG GIN DELTAIC- NEARSHORE-SHELF LIMESTONE NEARSHORE- SHELF EVAPORITES NON-MARINE COMPRESSION/COLLISION SEDIMENT INPUT WESTERN BURMA WB NON-DEPOSITION SIGNIFICANT EROSION, MOUNTAINS PRESENT DAY COASTLINE/BLOCK BOUNDARY MAXIMUM GLACIATION

12 KENYA L6, L8, L10A & L10B Source Kitchens and Migration Recent & Tertiary Regional Isopach Map Tertiary depocentres; source kitchens; and generalised migration pathways Thick Tertiary loading means relatively recently KENYA maturity and generation S Oceanic current organic matter dilution (poor Source Rock quality) S S Ponded lower delta Source Rock areas (excellent Source Rock quality) TANZANIA Nutrient Rich Delta S Main Migration Pathway PANCONTINENTAL

13 Pancontinental De-risking The Concept (i) Depositional model (ii) Oil Seeps (iii) Fluid Inclusions (iv) Seismic Character Structures Depositional features Flat spots, AVO s Prospects! 13

14 Satellite Synthetic Aperture Rd Radar (SAR) KENYA L6 & L8 Interpreted natural oil sea surface slicks. L6, L8 - best areas for slicks offshore Kenya from available data Natural oil seep on Pemba Island, south of L10B L6 L8 PANCONTINENTAL

15 KENYA L6 & L8 L8 Mbawa Jurassic prospect outline (2D) ~ 500+ SQ KM Mbawa sea surface slicks interpreted as light oil or condensate Mbawa Base Tertiary prospect outline (2D) ~180 SQ KM PANCONTINENTAL SEA-SURFACE SLICKS OVER MBAWA PROSPECT

16 KENYA L8 MBAWA SEA FLOOR POCKMARKS AND SEA SURFACE SLICKS SEA FLOOR 3D OBLIQUE VIEW SEA FLOOR POCK MARKS POCK MARKS= EXPULSION CRATERS SLICKS BASE TERTIARY PROSPECT OUTLINE Mbawa Prospect slicks coincide with interpreted sea-floor expulsion craters -consistent with minor natural leakage on N flank of Prospect PANCONTINENTAL

17 KENYA L6 & L8 Oil inclusions occur in two samples in Maridadi 1B exploration oil well Maridadi Fluid Inclusion Oil The 4,190 m sample with a GOI value of 3.2% is interpreted to have moderately good evidence for palaeo-oil zone. The 4,110 m sample is interpreted to reflect the presence of oil in trace amounts in water or gas saturated reservoir at the time fluid inclusions formed. Flourescing oil inclusions from Maridadi 1B Evidence of Upper Cretaceous or younger oil from fluid inclusions in Maridadi 1 MCI analysis shows the Maridadi-1B FI oil is likely to be derived from Upper Cretaceous or younger calcareous source rocks This is an important finding as some geologists thought that only Jurassic or older rocks were viable oil source rocks PANCONTINENTAL The pristane/ phytane ratio assesses the redoxconditions within the depositional environment. The ratio is < 1 for oils of marine origin related to sapropelic plankton organic matter, while it Is > 1 for oils of coastal marine or continental origin

18 Kenya L6 & L8 Slicks KENYA L6 & L8 L6 L6 + L8 Total 8,200km2 Water depths 0 to 1300m & onshore Major Cretaceous / Tertiary geological trough thought to be oil generating Prospects associated with slicks in both areas supporting concept of oil generation Slicks L8 Variety of large Prospects Slicks associated with Prospects support Pancontinental oil concepts 18

19 Thick Tertiary deposition (>4,000m) cooked up mature oil source rocks in the adjacent Trough 800m WATER DEPTH KENYA L8 0 Km ((approx) pp ) 2 MBAWA PROSPECT PANCONTINENTAL POSSIBLE TERTIARY FLAT SPOTS TERTIARY / CRETACEOUS FLAT SPOT Possible Gas-over Oil interface MAIN DRILLING TARGET Possible thick Oil column POSSIBLE LOWER FLAT SPOT - Possible Oil-over-Water interface JURASSIC CHANNEL SANDS Dual Seismic Flat Spots in Mbawa Inversion popped up good channel and turbidite sands in central Mbawa- Best reservoir rocks should be in the crestal zone

20 Kenya L8 KENYA L8 SLICKS SLICKS PCL 15% 5,100 Km2 Water depth 0 to 1,300m Mbawa drilling planned mid / Q PCL free carried by Tullow Farmins by Apache and Tullow 2011 New operator Apache looking at rig availability Slicks coincide with sea floor expulsion craters L8 * NOTE - Potential volumes are Pancontinental projections and do not necessarily reflect those of other joint venture participants and may nott necessarily il prove to t be b correctt in i the future. Mbawa potential approx 5 Billion Bbls oil in place (P10) Mbawa drilling planned mid / Q MBAWA POTENTIAL * Tertiary / Cretaceous (P10): 4.9 Billion Barrels oil in place plus 284 Billion Cubic Feet gas in place plusjurassic (P10) 323 Million Barrels oil in place or 525 Bcf in place gas cap plus-tertiary has further potential 20

21 Kenya L8 Mbawa MBAWA DRILLING One Mbawa well to 3,500m will test multiple targets Water depth of approximately 800m - easily accessible with modern equipment Main target- Lower Tertiary / Upper Cretaceous Sea floor 800m Sea 1,000m Lamu Limestone Secondary targets- Upper Jurassic & shallower Tertiary EARLY PALAEOGENE BASIN FLOOR TURBIDITE FAN SANDS (Kipini Sands) LATE CRETACEOUS BASIN FLOOR TURBIDITE FAN SANDS (Kofia Sands) * * * 2,000m 2,140m EARLY CRETACEOUS DELTAIC SANDS (Ewaso Sands) 2,800m * Simba Shale Kipini Shale Kipini Sands Kofia Sands Kofia Shale Walu Shale Ewasu Sands Tertiary Primary Targets 1,800m 2,200m Cretaceous * CARBONATES SHALE SANDSTONE EXPLORATION TARGET JURASSIC SANDSTONES & / OR CARBONATES (Mbuo / Isalo II Sands, Amboni Limestone) 3,000m Mbawa potential approx 5 Billion Bbls oil in place (P10) Mbawa drilling planned mid / Q *? Secondary Targets 2,700m 3,400m Jurassic 21

22 PalaeoceneDepth&Residual Gravityoffshore Why is Pancontinental offshore in Kenya s Lamu Basin? A simple beginning---- GRAVITY DATA- Followed-up with L10A & L10 Projects in 2011 Basement Trough Axis Basement Trough Axis L6 L8 Davie Ridge- Basement High Gravity data supports location of oil kitchen troughs Play concept followed up with new L10A & L10B projects PANCONTINENTAL L10A L10A Pemba Simba Ridge- Basement High Mbawa Trend - Tertiary Inversion Axis

23 Kenya L10A & L10B Leads KENYA Simba Trend Channel Trend Extension of Mbawa Trend KENYA L10A & L10B Pancontinental 15% 5PlayTypes > 10 Leads 3D & 2D late wells Mombasa L10A Awarded d May ,000 km 2 Fast Track exploration programme Water depth 200-1,800m Interpreted oil kitchen troughs in Blocks Notable partners- BG Group Premier Oil Cove Energy Km 20 L10B Miocene Reef Trend Jurassic Trend Fast Track Exploration Multiple leads and play types 3D and 2D already acquired Drillable prospects expected Q

24 Kenya L10A & L10B Leads High Amplitudes +?Phase Reversal Amplitude Shutoff Olkaria Lead Miocene Reefs Miocene reef Miocene reef Tertiary / Upper Cretaceous anticline Rollover into Fault Amplitude Supported KENYA L10A & L10B Pancontinental 15% 5 Diverse Play Types > 10 Leads Upper Jurassic Reef Upper Jurassic reef 3D & 2D late 2011 or 2 wells planned Mounded Basin Floor Several Prospect expected to be Turbidite Pile ready to drill by Q

25 Kenya L10B Windjammer Look-alike Kenya L10B Lead Thrust - related Antiform Undrilled Flat events, phase reversals Windjammer / Lagosta etc Offshore Mozambique Gas Discovery - 30 to 50+ Tcf in place Amplitude Cut-offs KENYA L10A & L10B A large Kenya L10B lead is similar on seismic to the Windjammer gas discovery off Mozambique 25

26 Kenya L6 Kifaru Prospect KENYA L6 PCL 40% 3,134 Km 2 Water depth 0 to 300m Kifaru- main prospect adjacent to interpreted hydrocarbon kitchen / trough Farming out D over 2+ prospects 2012 Drilling 2012 / 2013 KENYA L6 EXPLORATION PLAY Lamu Basin has >10km of sediments Various good source rocks sampled along the East African margin. Many wells intersected good oil and gas shows; 3 wells flowed gas. Thick Tertiary deposition brings potential source rocks into play as mature oil sources. Migration pathways are short and direct. Lamu Basin- part of a failed Late Cretaceous to Tertiary rift, with good analogues of prolific oil prone Early Tertiary source rocks in India s Bombay and Cambay basins. Cretaceous and Tertiary depocentres in restricted marine settings between structural highs. Eocene source rock samples range up to 11% TOC and hydrogen indices up to this interval could be an excellent oil source L6 has a variety of structural leads- E trend has leads clustered on adjacent to Maridadi Trough. Almost 8tcf unrisked recoverable resource identified and mapped at the Eocene Kipini sands level. Most structures are closed in the deeper Cretaceous where additional resource potential exists. Two of the main leads are Kifaru and Tembo. Kifaru is old feature adjacent to interpreted generating trough. KIFARU PROSPECT KENYA L6 Numerous Prospects / Leads Kifaru 3D mid

27 Pancontinental What s Next? Mid year / Q drilling Mbawa in L8, with some 5 billion barrels of oil potential in place In L10 Blocks - 3D and 2D results later this year and planning a minimum of 2 wells in these blocks once we get the data In L6 we will be acquiring about 1000 sq km of 3D mid year We look forward to a very exciting year, starting with the possibility of finding the first ever commercial oil offshore Kenya in the giant Mbawa Prospect 27

28 Pancontinental Oil & Gas NL Ground Floor, 288 Stirling Street Perth, WA 6000 Australia Tel: +61 (8) Fax: +61 (8) Barry Rushworth CEO of Pancontinental Oil & Gas 28