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1 UNLOCKING THE VALUE OF AUSTRALIA S LARGEST UNDEVELOPED ONSHORE GAS FIELD Ian Cockerill Executive Director

2 TRANSERV ENERGY (ASX : TSV) Warro 5 drilling ahead at 1857mRT in a side track hole (Warro-5ST) to a prognosed TD of 4295mRT Warro 6 anticipated spud date late September Warro Gas In-Place estimate of 8-10 TCF WARRO GAS - PERTH BASIN RL 6 / 7 67,000 net acres WARRO FIELD WESTERN AUSTRALIA Located in the Perth Basin 30km from existing infrastructure All costs fully funded by Alcoa under an existing A$100m farm-in agreement PERTH EP ,500 net acres DANDARAGAN DEEP LEAD 100km

3 TRANSERV ENERGY (ASX : TSV) MONTNEY LIQUIDS - CANADA WARRO GAS - PERTH BASIN ALBERTA RL 6 / 7 67,000 net acres BRITISH COLUMBIA MONTNEY LIQUIDS NE BRITISH COLUMBIA 35,000 net acres WARRO FIELD WESTERN AUSTRALIA EP ,500 net acres DANDARAGAN DEEP LEAD PERTH 500km 100km

4 TRANSERV ENERGY (ASX : TSV) Price A$/share Share Price Vol. (M) 9 8 Capital Structure Existing ordinary shares Management options ex 2.5c Implied Market Cap at 4.2c (undiluted) 807m 28m $33.9m Current cash and liquid assets $4.6m Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug Directors and Management Craig Burton Executive Chairman Ian Cockerill Executive Director Stephen Keenihan Executive Director Shareholders C Burton 12.54% S Keenihan 9.04% C Morgan 8.94% Argonaut 7.29% Top %

5 MONTNEY LIQUIDS PLAY - CANADA West Canadian Deep Basin Cross Section BRITISH COLUMBIA 500km Modified after Masters, 1984 Burnie et al, 2005 Zaitlin and Moslow, 2006

6 DISCIPLINED MONTNEY NEW VENTURE LAND APPROACH CAPTURE 3 Liquids-rich focus areas 35,000 net acres Caribou Liquids (2015) 7.3mmcfd + 130bbls/d Discovery (followed by Black Swan $200MM corporate acquisition) Inga Liquids (2015) >1200 BOEPD Tower Liquids (2014) 440 MBOE EUR/Well

7 MONTNEY COMMERCIAL ROBUSTNESS Montney Break-even US$/bbl $46 $25 (US$1 = C$1.3) (Oil prices: North American oil plays breakeven analysis. October 2014)

8 WESTERN AUSTRALIA GAS MARKET WA gas consumption has historically been driven by the mining/mineral processing sector ALCOA (TSV JV Partner at Warro) is the largest gas user (85> PJ per year) Current WA gas prices in the range of $5 to $9/mcf Sources: Gas Bulletin Board, IMO, Gas Statement of Opportunities, December 2014, NIEIR and forecast to increase to an average $8- $10/mcf by 2020

9 WARRO SUMMARY Giant gas accumulation with a Gas-In-Place estimate between 8-10 TCF (independently assessed) Warro 5 and 6 appraisal wells drilling in August/ September 2015 Fully funded by Alcoa under an existing $100MM farm-in agreement Post completion, Alcoa will earn a 65% interest in the field. TSV will retain a 35% interest and remain as operator

10 WARRO NORTH PERTH BASIN KM 0 GEOLOGICAL CROSS SECTION YARRAGADEE FM WARRO FIELD R6 / 7 Mory and Iasky, 1996, Stratigraphy and structure of the onshore northern Perth Basin, Western Australia

11 WARRO EXPLORATION HISTORY Warro-2/1 Warro Prospect Warro-2 (1977) mud log Top Yarragadee Intra-Yarragadee Top Reservoir Cadda Cattamara Warro Structure Map at Cattamarra Coal Measures (from Warro-1 Well Completion Report) Warro 1 and 2 intersected a 500m gross gas bearing section of low permeability fluvial-lacustrine sandstones

12 WARRO EXPLORATION HISTORY Warro asset acquired (2007) Emergence and success of North American technology Potential for significant gas price increases in Western Australia Base Reservoir (Top Cadda) TWT Structure Map Warro-3 (2009) To confirm the presence of moveable gas Fracked in 4 with Gel, flowed gas 1-3 mmcfd with water Hole problems, limited horse-power and poor frack emplacement Warro-4 (2011) Better well design and impact of slick-water frack Excellent hole and frack placement Gas and water production Warro 3D Seismic (2011) Post-drilling due to prolonged process for seismic approvals

13 WARRO STRUCTURE AND FAULT IMAGE ANALYSIS Base Reservoir (Top Cadda) TWT Structure TWT (msec) Amplitude

14 WARRO STRUCTURE AND FAULT IMAGE ANALYSIS Base Reservoir (Top Cadda) 3D Amplitude TWT (msec) Amplitude

15 WARRO STRUCTURE AND FAULT IMAGE ANALYSIS WARRO-3 (2009) Fracked in 4 casing with gel Limited frac capacity and poor frac penetration Flowed 1-3mmcfd Gas with water WARRO-4 (2011) Fracked in 7 casing with Slick-water Excellent hole and frac placement Flowed 0.6mmcfd Gas with water WARRO 3D (2011) Base Reservoir (Top Cadda) Incoherence

16 WARRO RESERVOIR PROPERTIES WARRO-6 WARRO-5 WARRO-4 WARRO-2 WARRO-3 WARRO m 3800m For personal use only A SANDS Porosity = 8-12% md Sg - 50% 3700m 3800m 3900m 4000m B SANDS Porosity = 8-10% md Sg - 60% 3900m 4000m 4100m 4200m C SANDS (PRIMARY OBJECTIVE) Porosity = 6-10% md Sg - 70% 4100m 4200m 249m 4300m 4300m Sg = Gas Saturation ANTICIPATED TD MID-OCT ANTICIPATED TD MID-SEPT CENTRAL PARK PERTH

17 WARRO APPRAISAL TIMELINE AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY WARRO-5 SPUDDED 15 th AUGUST DRILLING DFIT ENCOURAGE EXTENDED WELL TEST WARRO-6 DRILLING DFIT ENCOURAGE EXTENDED WELL TEST DANDARAGAN 3D LANDOWNER AGREEMENTS SPRING SURVEY LODGEMENT OF PRELIMINARY ENVIRONMENT PLAN DFIT - Diagnostic Fracture Injection Test

18 DANDARAGAN DEEP PROSPECT Dandaragan Deep Prospect WARRO W Dandaragan-1 (1995) TD 1103m Otorowiri 819m-834m 10 o API biodegraded Oil E Otorowiri DANDARAGAN DEEP LEAD Upper Yarragadee 62km Closure 1.6 Tcf Mean EUR Intra-Yarragadee Lower Yarragadee 4 4 Cadda Intra-Yarragadee Time Structure 5km

19 WARRO STAKEHOLDER SUPPORT All Government approvals in place Native Title completed Three years of environmental monitoring to date soil, air, and water CSIRO monitoring project in place Local Community support - The community association is completely supportive of the project and recognises the benefits that have already come to our community

20 CONCLUSIONS Robust commercial environments in the Montney Liquids and Warro Projects Aiming to unlock the immense value of Warro with a fully funded two well appraisal program Warro has the key ingredients for success Substantial reserve potential Proximity to infrastructure Strong market and robust prices WA s largest gas consumer as JV partner

21 DISCLAIMER No representation or warranty, expressed or implied, is made by Transerv that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, Transerv, their officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence if any information in this presentation or any error or omission there from. Transerv do not have any responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. This presentation contains certain statements which may constitute "forward-looking statements". Transerv believe that the expectations reflected in these statements are reasonable. However such statements are only predictions and are subject to inherent risks and uncertainties and changes in the underlying assumptions which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions investors should rely on their own due diligence and consult with their own technical, legal, tax, business and/or financial advisers. All dates in this presentation are for calendar years unless stated FY for financial year and all references to $ are in Australian currency, unless stated otherwise.

22 UNLOCKING THE VALUE OF AUSTRALIA S LARGEST UNDEVELOPED ONSHORE GAS FIELD Ian Cockerill Executive Director