european gas ltd

European Gas Ltd: Preparing for Growth

OIL BARREL CONFERENCE

London, October 2011

Johannes Niemetz, COO/CFO

October 2011 • EGL PRESENTATION Slide 2

This Presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.These forward looking statements are based on our current expectations about our company, our properties, our estimates of required capital expenditures and our industry. You can identify these forward-looking statements when you see us using words such as "expect”, "will", "anticipate," "indicate," "estimate," "believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward looking statements. Such uncertainties include the success of our project financing efforts, accuracy of well test results, well refurbishment efforts, successful production of indicated reserves, satisfaction of well test period requirements, successful installation of required permanent processing facilities, receipt of all required permits, results of seismic data acquisition efforts, and the successful management of our capital expenditures, and other normal business risks. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements. . We may use certain terms in this presentation such as “contingent” and “prospective” resources. The definitions of Contingent and Prospective Resources have been excerpted from the Petroleum Resources Management System approved by the Society of Petroleum Engineers (SPE) Board of Directors, March 2007. Proved, Probable and Possible Reserves are denoted by P1, P2 and P3, respectively. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity. Contingent resources are those quantities of petroleum estimated, as of a given date, to 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. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status. The volume and parameters associated with low, best and high estimates scenarios of contingent resources are referred to as 1C, 2C and 3C, respectively. The Company provides certain information in the format required, and at the times required, by the Australian Stock Exchange since the Company is listed on that exchange and the Company urges interested investors and third parties to review the Company’s filings with the ASX before making an investment decision.

FORWARD LOOKING STATEMENTS


AGENDA

• COMPANY OVERVIEW

• THE TEAM

• POSITIONING FOR GROWTH

• OPERATIONAL UPDATE

• NEW GROWTH INITIATIVES


• European Gas Limited is an ASX listed unconventional gas explorer with European focus

– Europe is a premium market for gas: high market price and growing demand due to import dependence

– EGL is the biggest acreage holder in France and has one of the largest unconventional gas resources portfolio assembled in western Europe

• Substantial resources base

– Earn-in rights to Probable and Possible Reserves of over 200 BCF (EGL net)

– Significant Gas in Place (Lorraine) • Low: 0.4 Tcf Best: 2.3 Tcf High: 7.9 Tcf

• Large growth potential

– The Company is actively evaluating additional European opportunities in Western and Central Eastern Europe

OVERVIEW - STRATEGY & PORTFOLIO


OVERVIEW - HISTORY & CORPORATE UPDATE

• 1998 Listed on to the Australian Securities Exchange (ASX Code: EGP)

• 2003 Company name changed to European Gas Limited to reflect main focus and strategy of the business and divestment of its Australian assets

• 2007 Acquisition of joint venture partner and first exploration well in Lorraine

• 2008 Completed acquisition of Gazonor SA, a CMM producer based in Northern France

• 2011 Restructuring of EGL organisation, debt and share register successfully completed

• 2011 AUD $15m Fund raising completed

• 2011 New Tier 1 Management team in place

• 2011 Restart of operations


OVERVIEW – CURRENT ASSETS

LARGE CBM ASSETS IN FRANCE

• Lorraine

2 operated licences

1 licence application

• Nord Pas de Calais

Farm-in rights for 70% in 2 exploration licences

Farm-in rights for 70% in existing gas production licence

• Jura and Gardanne

2 exploration licences


NEW MANAGEMENT TEAM

• Dr. FREDERIC BRIENS, CEO

– Former COO and CSO of BPZ Resources;

– Ex Geosciences and BD Manager for Perenco Venezuela S.A;

– Former Manager and technical leader at Lundin Petroleum, Conoco, Schlumberger and Chevron

• JOHANNES NIEMETZ, COO & CFO

– Former Principal at Strata Partners;

– Executive at General Electric (GE Infrastructure, GE Energy, GE O&G)

ACTIVE SUPPORT FROM JULIEN MOULIN, CHAIRMAN OF THE BOARD

– Former MD European Gas Ltd.;

– Co- Founder of Maoming Investment Manager;

– Ex-UBS Global Asset Management;

– Former Barclays Asset Management


NEW TECHNICAL TEAM • Dr. CHRIS CORNELIUS, Advisor (unconventional oil & gas)

– Founder of Cuadrilla Resources;

– Former Technical Director of Evergreen Resources;

– Former Engineering Manager at NOWSCO Well Services

• ERIC ALLEN, Technical Manager

– More than 30 years of engineering and project management experience in the energy industry in the Americas, Europe and Asia;

– Experience includes design, management and coordination of exploration programs and development of a variety of projects with particular emphasis on coal bed methane (“CBM”)

• Dr. BERNARD MICHAUD, Sr. Exploration Geologist

– IFP professor and Senior Geologist with over 30 years experience in exploring evaluating and modelling oil and gas reservoirs;

– Formerly Chief Geologist for Triton North Sea and Senior Geologist for Conoco Philips;

– Has been evaluating CBM projects in Europe since 1991


POSITIONING FOR GROWTH

• SUCCESSFULL DEBT RESTRUCTURING AND STRENGTHENED SHARE REGISTER

– Clean balance sheet with no outstanding debt

– New substantial shareholder with Transcor Astra group (Albert Frere group)

– Solid share register with +75% of the shares in long term UK and European institutional investors

• AUD $15 MILLION RAISED IN JUNE 2011, FULLY FUNDED FOR – Exploration in the Lorraine and Nord Pas de Calais permits (seismic

reprocessing, drilling, testing)

– Continued evaluation on Jura and Gardanne permits

– New business development: Western and Central Eastern Europe


LORRAINE – PROVING OUR RESERVES

GAS IN PLACE* as of December 2010 (Alsting Anticline only)

Category C1 C2 C3

Bcm 11 67 224

Bcf 400 2,350 7,910

* Numbers as per MHA independent report, Dec 2010

• EGL has 2 exploration permits and 1 pending application

• Work program in Lorraine targets establishing gas flow rates from the coals


NORD PAS DE CALAIS LARGE RESERVES AND RESOURCES UPSIDE

• EXISTING GAS RESERVES*

P2: 85 BCF

P3: 226 BCF

• EGL HAS THE RIGHT TO FARM-IN FOR 70% OF INCREMENTAL GAS PRODUCTION

• EGL HAS ALSO THE RIGHT TO FARM-IN FOR 70% OF 2 EXPLORATION LICENCES WITH LARGE UPSIDE

• GAS IN PLACE POTENTIAL OF 8 TCF

* Numbers as per DMT independent report, Jul 2008


WORK PROGRAM - SUMMARY

• LORRAINE

FOLSCHVILLER-2 WELL TEST

FOLSCHVILLER2 RE-ENTRY DRILLING

INTEGRATED STUDIES

FURTHER APPRAISAL TO BE DEFINED

• NORD PAS DE CALAIS WELL TESTING CAMPAIGN

SEISMIC REPROCESSING AND INTERPRETATION

INTEGRATED STUDIES

FURTHER APPRAISAL TO BE DEFINED


OPERATIONAL UPDATE – LORRAINE

Latéral 1

Latéral 2

• Testing in Lateral No. 2

– Pump change

– Dewatering

– Gas flow test

WELL TESTING FOLSCHVILLER 2


NEW GROWTH INITIATIVES

• Germany

– CBM: Westphalian Coals

– Tight Gas Sands charged by Namurian Shales

• Turkey

– Tight Gas Sands

– Tight Oil Sands charged by Silurian Shales

• Central / Eastern Europe

– Tight Oil Sands


CONCLUSION

• Company fully funded, no debt

• New management team in place

• On-going operations in France

• Largest CBM assets in Western Europe

• New growth initiatives started

For further information

Frederic Briens Chief Executive Officer

2 rue de Metz

Freyming-Merlebach 57800 France

[email protected]

P: +33 3 87 04 32 11

F: +33 3 87 93 52 37

W: www.europeangas.fr


European Gas Ltd: Preparing for Growth

OIL BARREL CONFERENCE

London, October 2011


european gas ltd

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