Beetaloo Energy Australia Limited · ASX:BTL

Beetaloo Energy Australia — Empire Energy Group — Investor Presentation (March 2011)

18 slides from Beetaloo Energy Australia's investor presentation, March 2011

1. Slide 1: Achieving Significance in the Oil & Gas Industry

   ACHIEVING SIGNIFICANCE IN THE OIL & GAS INDUSTRY March 2011 EMPIRE ENERGY GROUP LIMITED 1

2. Slide 2: Disclaimer

   Disclaimer The purpose of this presentation is to provide general information about Empire Energy Group Limited (“Empire Energy”). The presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only predictions and are subject to inherent risks an

3. Slide 3: Mission Statement

   Mission Statement • Opportunistic upstream acquisitions • Target production assets with attached low risk development • Hedging to 2015: 75% Oil @ $90/Bbl; Gas 75% @ $5.85/Mcf Build a „Low • Debt deleverage from internally generated cash flow Risk‟ E&P • Seek internal generated funding of acquisitio

4. Slide 4: Corporate Snapshot

   Corporate Snapshot Corporate Structure ASX:EEG Australian Securities Exchange (previous ASX:IMP) Shares on issue (SOI) 162.3 mm Share Price A$0.14 EBITDA - 2011 A$17.5 mm Market Capitalisation A$22.7 mm Cash & liquids A$3.5 mm Debt A$72.1 mm Enterprise Value A$91.3 mm Total Assets A$112.4 mm PV10 A$

5. Slide 5: Key Milestones

   Key Milestones Over last 12 month period, US$120 million in oil and gas transactions 2006 – Dec 2007 – Dec 2009 – July 2010 – Dec 2010 – Initial USA entry US$8.85MM US$38.0MM US$24.6MM US$56.25MM in gas JV: 20 wells acquisition: 160 gas acquisition: 1,800 gas partial sale of shale acquisition: 245 o

6. Slide 6: Empire Development Pipeline

   Empire Development Pipeline Australia, NT Appalachia, US Appalachia (gas), US Williston Basin, US Kansas (oil), US Shale oil/gas Shale oil +70mmbbls 1,520 Boe/d (36% oil) Multi Bbl/tcf targets Gas +5tcf (GIP) 2P: 16.8mmboe Farm-in & Acquisitions Greenfields Exploration Development Production Minimal

7. Slide 7: 2P Reserve Growth

   2P Reserve Growth 2P RESERVES - mmBoe 20.00 18.00 16.00 2P RESERVES - mm Boe 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2007 2008 Acquisition 2009 Production Acquisition 2010 + Writedown Oil:gas ratio utilised is energy equivalence ratio of 6:1 7

8. Slide 8: ASX Comparables

   ASX Comparables $35.00 Substantial onshore US reserves Empire clearly undervalued in terms of peers $30.00 Horizon EV/2P Reserves (US$/Boe) $25.00 $20.00 Stuart Nido Roc $15.00 Antares NZ Oil and Gas Amadeus Cooper Tap $10.00 Energy Carnarvon Petsec 8 $5.00 EMPIRE PanPacific ENERGY $0.00 0 5 10 15 2

9. Slide 9: Reserves & Operations

   Reserves & Operations  Current Average Equiv Production (6:1 oil:gas)  1,520 Boe/d (36% Oil) 3P Reserves = 18 mmBoe  Current Average Net Production:  KS - 550 Bbl/d  PA, NY - 5,800 Mcf/d PDP  Lifting Costs PDNP  $21.47 /Bbl PUD  $1.86 /Mcf (2010) PROB POSS  Preliminary EBITDA = $17.5mm (201

10. Slide 10: Proposed Expenditure - 2011

    Proposed Expenditure - 2011 Summary of Expenditure Uses of Funds - $15 mm NY - Marcellus Expl Drilling Capex ROI Av payout State Type Wells $mm (undisc) Years KS - Oil Development Drilling $1.25 NY Expl. 2 to 3 $ 1.25 n/a n/a $2.00 $0.85 ND - Williston Basin Expl Drilling $2.00 KS PDNP 14 $ 1.00 6.5

11. Slide 11: Acquisition – Dec 2010

    Acquisition – Dec 2010  (1) Acquisition Detail - Kansas Acquisiton History  Alloc. Price $= $54.2 mm 60000 2000 $/(2P) = $11.82/Bbl 1800 Daily Prouduction (Boe/d)  Acquisition Cost (US$000s) 50000 1600  PV10 = $115.5 mm 40000 1400  $/PV10 (1P) = 76% 1200 30000 1000  $/flowrate = ~$97,000 800 R

12. Slide 12: Central Kansas Uplift

    Central Kansas Uplift Oil Production  Net production=~550 Bbls/d  Water driven reservoir 400 Production - MBbls  ~18,000 gross acres 350  Reservoirs: Shawnee, Arbuckle 300 & Lansing-Kansas City, Mississippian 250 MBbls pa  Average WI = 74.5%; NRI = 63% 200  HBP = ~100% properties 150  Operato

13. Slide 13: Appalachia

    Appalachia Gas Production  Net production=5,800 Mcf/d  ~312,000 acres (NY, PA) Production - MMcf  Reservoirs: Medina, Queenston, Speechley 6,000 5,000  WI = 96.5%; NRI = 76.5%  HBP = 75% properties 4,000 MMcf pa  Operator = ~99% properties 3,000  ~80% production hedged at $5.85/Mcf 2,000  Re

14. Slide 14: North Dakota – Williston Basin

    North Dakota – Williston Basin Shale Oil Resource  Area: 17,000 acres  AMI: 247,000 acres  WI/NRI: 35%/27.0%+  Reservoirs: Sherwood & Bluell  Trap: Stratigraphic- updip pinchout  Depth: 7,000ft  Active wells:2 well commitment  Est AFE: $1.3MM (Empire share for 2 wells)  Drilling: Mid 2011 

15. Slide 15: Marcellus Shale - Oil

    Marcellus Shale - Oil Prospective Resource  Prospective Resource = 70+mm Bbls  150,000+ acres  Calculated to produce 2-5,000 Bbls/5 ac  Recovery Factor = 3%  WI = ~97%; NRI = ~77%  Exploratory drilling 2011  Increasing demand for condensate acreage in PA and WV  NYS review of fracking morato

16. Slide 16: Utica Shale - Gas

    Utica Shale - Gas Prospective Resource  Prospective Resource = 5 Tcf+ GIP (unrisked)  100,000+ acres  Additional acreage to be included (Current resource in pink area)  Successful Utica wells drilled in PA  NYS review of fracking moratorium around May 2011 *Natural gas & oil reserves/resources

17. Slide 17: Frontier shale play

    Frontier shale play Northern Territory - Australia  100% held by Imperial Oil & Gas (subsidary)  Large scale shale oil & gas exploration play  Very low historic exploration maturity EP(A) 180  14.6mm acres in the MacArthur Basin  Target - organic rich black shales EP(A) 181 2  Oil bleeds in co

18. Slide 18: Executive Management

    Executive Management Bruce McLeod – Executive Chairman & CEO, Empire Energy Group Background in Corporate and Resource Capital markets since mid 1980’s. Managed and/or raised over $1.5bn in resource, property development and portfolio funds. As a director of Imperial Corporation established brown fi

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