Valeura Energy Inc. · TSX:VLE

Valeura Energy — Investor Presentation (April 2012)

54 slides from Valeura Energy's investor presentation, April 2012

1. Slide 1: Building Momentum in Turkey – Corporate Presentation April 2012

   A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION BUILDING MOMENTUM IN TURKEY CORPORATE PRESENTATION APRIL 2012

2. Slide 2: Profile

   PROFILE  Valeura Energy Inc. (VLE – TSX) Canada-based oil and gas E&P company with assets in Turkey and Western Canada  Executed six transactions in Turkey in 2010 & 2011 and invested $77 MM: − Interests in 22 leases & licences: 2.1 MM acres (gross); 0.75 MM acres (net)  Corporate 1st quarter 201

3. Slide 3: Capital Structure April 1, 2012

   CAPITAL STRUCTURE APRIL 1, 2012 Basic shares outstanding at April 1, 2012 46,406,135 Common shares purchasable pursuant to: Financial warrants outstanding ($5.50 exercise price per share) 13,269,217 Performance warrants outstanding ($2.00 wt’d average exercise price per share) 2,796,750 Options outs

4. Slide 4: Why Turkey?

   WHY TURKEY? Prospective TBNG-PTI TBNG-PTI acquisition  Proven petroleum systems Acquisition (natural gas & light/heavy oil)  Under-explored & under-exploited conventional opportunity & unconventional plays  Opportunity to deploy modern technology  Anatolian Basin main oil producing region in Zag

5. Slide 5: Valeura Pro Forma Land Position in Turkey

   VALEURA PRO FORMA LAND POSITION IN TURKEY PETROLEUM LEASES & LICENCES GROSS AREA VALEURA NET AREA TRANSACTION DISTRICT (#) (acres) (acres) (1) THRACE BASIN TBNG-PTI – Onshore (2) I (MARMARA) 9 507,853 203,141 TBNG-PTI – Offshore (2)(7) I (MARMARA) - 116,508 17,476 Marhat/TransAtlantic (3) I (MARMARA

6. Slide 6: Thrace Basin Transactions

   THRACE BASIN TRANSACTIONS Bulgaria Otto asset purchase 3839 (35% WI) TBNG-PTI asset purchase Licences 4322, 4323, 4324, GYP Asset Turkey (40% onshore; purchase 4459 & 4460 expected to (24% WI) 15% shallow offshore) be relinquished prior to 4187 3659 Mar ‘12 2926 3999 3861 3998 Greece 3734 3860 4126

7. Slide 7: Thrace Basin TBNG-PTI Acquisition

   THRACE BASIN TBNG-PTI ACQUISITION TURKEY AME-GYP FARM-IN Kahta 17 Well Tekirdag Processing Station 7 7

8. Slide 8: TBNG-PTI Assets

   TBNG-PTI ASSETS  Large acreage position with interests in 19 leases & licences at the effective date: - Relinquished one Gaziantep licence in November 2011 - Relinquished five deep offshore licences in Sea of Marmara in February 2012  Established shallow gas production and marketing business in Th

9. Slide 9: TBNG-PTI & Farm-in Lands – 1Q2012 Operations

   TBNG-PTI & FARM-IN LANDS – 1Q2012 OPERATIONS Kazanci/ Hayrabolu Osmanli Kilavuzlu/ Bekirler Karaevli Tatarli Kayi Yagci/ Nustratli Gazi Dagdere-1 Aydede (drilled & cased as Tekirdag potential Mezardere gas well) 10 km 10 km  1Q2012 production on TBNG-PTI lands 20.1 MMcf/d (gross) or Cumulative Prov

10. Slide 10: Unconventional Gas Opportunity

    UNCONVENTIONAL GAS OPPORTUNITY  Thick Tertiary-aged sediments in Thrace Basin prospective for unconventional tight sands and shale gas exploitation: - Thermally mature source rocks exist in deeper parts of basin (depth to basement up to 9,000 m) - Existing well control indicates Mezardere, Ceylan a

11. Slide 11: Southern Thrace Basin Mezardere X-Section

    SOUTHERN THRACE BASIN MEZARDERE X-SECTION FORMATION MEZARDERE PARAMETER LOW HIGH A A’ Depth (m) 1,000 3,500 Aydede-1 Yagci-8 BTD-1 BTD-2 DTD-3 DTD-7 DTD-9 Kuzey Kayi-1 Gross H (m) 500 2,500 Gross sand H (m) 240 900 Net pay H (m) 32 120 Ф (%) 3 15 DTD-7,9 K (md) 0 2 Frac’d Mezardere Perforations TOC

12. Slide 12: DTD-1 Well – Example of Stacked Gas Sands

    DTD-1 WELL – EXAMPLE OF STACKED GAS SANDS GR (API) Total Gas (Units) Mezardere Shale Mezardere shale  Isolated sands with high mud gas readings  Teslimkoy Sands  Continuous mud gas readings to total depth of DTD-1 well (1,395 metres) Teslimkoy  DTD-1 twin well (named Baglik-1) sands is currently

13. Slide 13: Tight Gas – Proof-of-Concept Program Phases

    TIGHT GAS - PROOF-OF-CONCEPT PROGRAM PHASES 1. Recompletion fracs (750-2,000 m depth) − Identify zones which are gas bearing in Mezardere that require fracs to achieve commercial rates focusing initially on areas within structural closure − 8 well re-entry fracs completed in 2nd half of 2011 and 7 c

14. Slide 14: 2011 Mezardere Frac Results

    2011 MEZARDERE FRAC RESULTS INITIAL 7-DAY INITIAL 30-DAY PEAK 24-HOUR CUMULATIVE AVERAGE AVERAGE FRAC DATE NET PAY POROSITY ON-STREAM PRODUCTION TO WELL ON-STREAM ON-STREAM (d/m/y) (m) (%) RATE MARCH 18, 2012 RATE RATE (MMcf/d) (1) (MMcf) (MMcf/d) (1) (MMcf/d) (1) Yazir-2; 1st stage 18/07/2011 27 8.

15. Slide 15: 2012 YTD Mezardere Frac Results

    2012 YTD MEZARDERE FRAC RESULTS INITIAL 7-DAY INITIAL 30-DAY PEAK 24-HOUR CUMULATIVE AVERAGE AVERAGE FRAC DATE NET PAY POROSITY ON-STREAM PRODUCTION TO WELL ON-STREAM ON-STREAM (d/m/y) (m) (%) RATE April 12, 2012 RATE RATE (MMcf/d) (1) (MMcf) (MMcf/d) (1) (MMcf/d) (1) DTD-11 7/01/2012 4 14 1.1 0.8 0

16. Slide 16: Teslimkoy Single Stage Frac – Projected Type Curve

    TESLIMKOY SINGLE STAGE FRAC – PROJECTED TYPE CURVE (1) TBNG Teslimkoy 1-Yr Forecast Single Zone Completions 5,000 BTD 2 4,500 Kayi 14 4,000 DTD 11 3,500 DTD 7 Gas Rate (Mcfd) 3,000 Hyperbolic Forecast 2,500 Established Teslimkoy Average 2,000 1,500 Teslimkoy Average 1,000 excludes DTD-7, COS = 75% 5

17. Slide 17: Teslimkoy Single Stage Frac – Estimated Ultimate Recovery

    TESLIMKOY SINGLE STAGE FRAC – ESTIMATED ULTIMATE RECOVERY (1) (1) Preliminary type curve analysis based on three wells with at least 50 days of production (excluding DTD-7). Internal company projection of estimated ultimate recovery of gas from a single stage frac based on type curve decline analysi

18. Slide 18: Teslimkoy Multi-Stage Frac – Estimated Ultimate Recovery

    TESLIMKOY MULTI-STAGE FRAC – ESTIMATED ULTIMATE RECOVERY (1) (1) Preliminary type curve analysis based on three wells with at least 50 days of production (excluding DTD-7). Internal company projection of estimated ultimate recovery of gas from a multi-stage frac based on type curve decline analysis.

19. Slide 19: TBNG-PTI Lands – Planned 1st Half 2012 Drilling

    TBNG-PTI LANDS – PLANNED 1st HALF 2012 DRILLING (1) SPUD RIG RELEASE TD WELL LICENCE WELL TYPE STATUS (d/m/y) (d/m/y) (m) Baglik-1 3931 10/03/2012 - Exploration 3,600 Drilling Dogu Karya-1 3934 04/04/2012 23/04/2012 Exploration 2,022 Cased TSK-1 3931 05/04/2012 10/04/2012 Exploration 657 Cased Guney

20. Slide 20: Turkey Year-End 2011 Reserves (Company Gross)

    TURKEY YEAR-END 2011 RESERVES (COMPANY GROSS) (1)(2) TOTAL OIL RESERVES LIGHT OIL NATURAL GAS PV10 BEFORE TAX (3) EQUIVALENT CATEGORY (Mbbl) (Bcf)) (US$MM) (MBOE) PROVED 1 5.0 842 14.7 PROBABLE 3 5.3 892 23.9 TOTAL PROVED PLUS PROBABLE 4 10.4 1,733 38.5 POSSIBLE 2 4.5 751 19.0 TOTAL PROVED, PROBABLE

21. Slide 21: Thrace Basin Contingent Resources Assessment

    THRACE BASIN CONTINGENT RESOURCES ASSESSMENT Contingent Prospects Resources and Leads (5 structures)  D&M assessed contingent resources in five fields on TBNG-PTI lands as at December 31, 2011  Aggregate area (best estimate) of discovered structural closures 10,982 acres (17 sections) (gross)  Ar

22. Slide 22: Turkey Year-End 2011 Contingent Resources (Company Gross)

    TURKEY YEAR-END 2011 CONTINGENT RESOURCES (COMPANY GROSS) (1) CONTINGENT RESOURCES (40% WORKING INTEREST) (2) FORMATION/UNIT LOW ESTIMATE BEST ESTIMATE HIGH ESTIMATE MEZARDERE - Bcf 0.2 5.7 18 TESLIMKOY - Bcf 2.2 156 378 TOTAL - Bcf 2.4 162 396 TOTAL - MBOE 401 26,987 65,977 (1) D&M estimates of con

23. Slide 23: SE Anatolian Basin Transactions

    SE ANATOLIAN BASIN TRANSACTIONS GAZIANTEP KARAKILISE Source: IHS Energy Group 2010 23

24. Slide 24: SE Anatolian Basin Licences

    SE ANATOLIAN BASIN LICENCES 2677 Gaziantep TURKEY Licences 2674 (26% WI) Karakilise Licences 4656 (27.5% WI) 4607 4648 4649 100 km SYRIA IRAQ 24

25. Slide 25: AME-GYP Licences 2674 & 2677 – Karakilise Area

    AME-GYP LICENCES 2674 & 2677- KARAKILISE AREA Karakilise-1 Shell/TPAO recompletion Joint Venture (currently producing 20-30 bopd) TPAO Ciksor-3 Perenco (ndicated oil discovery) Kastel oil field Altinakar-1 Mardin Play Fairway EUR: 15 MMbbl (1) deepening (spudded Jan 6 ’12) TransAtlantic Goksu-1R (oi

26. Slide 26: Licence 2674 – Bedinan Prospects & Leads

    LICENCE 2674 – BEDINAN PROSPECTS & LEADS  119,265 gross acres N  10+ Bedinan prospects & leads identified 2674 with new 2D seismic (tilted fault blocks)  Altinakar-1 discovered heavy oil in Mardin  GDPA approved 3-year extension of Licence Altinakar-1 2674 to May 30, 2014 Bedinan prospects & lea

27. Slide 27: Turkey Indicative Well Economics

    TURKEY INDICATIVE WELL ECONOMICS (1) PHYSICAL PARAMETERS PER WELL (9) PV10 ATAX (7) RECYCLE PROGRAM IP (3) ATAX RESERVES (2) CAPEX (4) F&D COST (6) ($MM) RATIO (8) (MMcf/d or NETBACK (5)(7) (Bcf or Mbbl) ($MM) ($/BOE) bbl/d) ($/BOE) Thrace Basin - Gas Shallow Gas Drilling 0.4 0.7 0.7 25.68 11.64 0.6

28. Slide 28: Turkey Capital Budget Outlook 2012

    TURKEY CAPITAL BUDGET OUTLOOK 2012 (1) DRILLING NON DRILLING TOTAL BUSINESS SEGMENT GROSS WELLS NET WELLS WI AMOUNT WI AMOUNT WI AMOUNT (#) (#) (US$MM) (US$MM) (US$MM) THRACE BASIN - GAS TBNG-PTI Acquisition 42 16.8 16.3 7.9 24.2 Otto Acquisition - - - 0.1 0.1 Marhat/TransAtlantic Farm-in 3 3.0 4.3

29. Slide 29: Summary

    SUMMARY  TBNG-PTI acquisition in Turkey in 2011 transformed Valeura: - Acquired an established shallow gas production & marketing business - Realized average wellhead price in Turkey of US$7.74/Mcf in 1Q2012 (TBNG-PTI & Edirne) (expected increase to $9.00-$9.20/Mcf in 2Q2012) - Boosted corporate pr

30. Slide 30: Disclaimer/Forward Looking Information

    DISCLAIMER/FORWARD LOOKING INFORMATION Certain information contained herein constitutes forward-looking information under applicable securities legislation. Such forward- looking information is provided for the purpose of providing information about management's current expectations and plans relati

31. Slide 31: Disclaimer/Forward Looking Information (Cont'd)

    DISCLAIMER/FORWARD LOOKING INFORMATION (CONT’D) inherent in pursuing oil and gas opportunities in foreign countries; the state of the capital markets; the ability of the Corporation to obtain financing on acceptable terms; the ability of the Corporation to obtain qualified staff, equipment and servi

32. Slide 32: Oil and Gas Terms and Advisories

    OIL AND GAS TERMS AND ADVISORIES "reserves" are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on analysis of drilling, geological, geophysical and engineering data; the use of established

33. Slide 33: Supplementary Information

    A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION SUPPLEMENTARY INFORMATION

34. Slide 34: Our Heritage

    OUR HERITAGE Senior Management Board of Directors 34

35. Slide 35: Recent Successes of Management & Board

    RECENT SUCCESSES OF MANAGEMENT & BOARD Sold 2009 $360 mm Market Cap 3x ROI (’04-’09) ~$898 mm CAGR 22% Market Cap at Trust Conversion Sold in 2008 $916 mm $202 mm 35x ROI (‘94-’03) 4x ROI (’05-’08) CAGR 51% CAGR 89% Sold in 2006 Sold in 2005 $306 mm $122 mm 1.4x ROI (’03-’06) 3x ROI (’02-’05) CAGR 1

36. Slide 36: Organization Structure

    ORGANIZATION STRUCTURE BOARD OF DIRECTORS Abby Badwi Jim McFarland Bill Fanagan Ken McKay Claudio Ghersinich Ron Royal Stephanie Stimpson, Corporate Secretary PRESIDENT & CEO Jim McFarland ASSISTANTS Kumari Campbell Shari Lemon MANAGER MANAGER VP VP CFO BUSINESS GEOSCIENCES ENGINEERING OPERATIONS DE

37. Slide 37: Management - Officers

    MANAGEMENT - OFFICERS President & CEO: Jim McFarland, P. Eng. 39 years Oil & Gas Experience  Former President & CEO, director and co-founder, Verenex Energy (successful Libya oil and gas explorer)  Former Managing Director, Southern Pacific Petroleum (Australian shale oil)  Former President & COO

38. Slide 38: Management - Officers (Cont'd)

    MANAGEMENT - OFFICERS (CONT’D) VP Engineering: Don Shepherd, P. Eng. 40 years Oil & Gas Experience  Former General Manager, Verenex Energy Area 47 Libya based in Tripoli  Former VP Engineering & Operations, Calvalley Petroleum (Yemen)  13 years with Saudi Aramco as Asset Management Team Leader an

39. Slide 39: Senior Technical Employees

    SENIOR TECHNICAL EMPLOYEES Manager Business Development: Barry Wihak, P. Geol. 30 years Oil & Gas Experience  Former President & CEO, director and co-founder, Cangea Energy (private, Colombia focus)  5 years with Vermilion Energy Trust as Business Development Advisor (acquisitions in France, Nethe

40. Slide 40: Board of Directors

    BOARD OF DIRECTORS Abby Badwi, P. Geol. President & CEO, Bankers Petroleum Ltd. Geological background Bill Fanagan, CA (Chair) Former Chairman, Verenex Energy Inc. Former President & CEO, Gulf Indonesia Resources Limited Financial background (Audit Chair) Claudio Ghersinich, P. Eng. Co-founder & for

41. Slide 41: Valeura's Corporate Strategy

    VALEURA’S CORPORATE STRATEGY  Target creation of large global E&P company in 5 - 7 years - Goal to achieve NAV growth rate of 20 - 25% per annum  Build E&P portfolio in 1 or 2 regions of the world - Mediterranean Basin/Central Europe/MENA regions are of prime interest currently but may pursue oppo

42. Slide 42: Financial Highlights at December 31, 2011

    FINANCIAL HIGHLIGHTS AT DECEMBER 31, 2011 3 MONTHS ENDED YEAR ENDED RESULTS DECEMBER 31, 2011 DECEMBER 31, 2011 Production Crude oil & NGLs (bbl/d) 56 59 Natural gas (Mcf/d) 10,801 6,192 BOE/d (@6:1) (1) 1,856 1,091 Financial ($ except per boe amounts) P & NG revenues (net) 7,619,255 16,725,345 Fund

43. Slide 43: TBNG-PTI Acquisition

    TBNG-PTI ACQUISITION  Transaction with TransAtlantic Petroleum Ltd. ("TransAtlantic") to take 40% of TransAtlantic’s acquisition of all of the shares of Thrace Basin Natural Gas Turkiye Corporation ("TBNG") and Pinnacle Turkey, Inc. ("PTI"): - Total purchase price for 100% of TBNG-PTI was US$100MM

44. Slide 44: Thrace Basin Seismic

    THRACE BASIN SEISMIC 3842 4187 2926 3751 4632 3776 3659 4655 3998 3302 3999 3864 3411 3808 3411 3734 3406 4126 3096 3934 3858 4201 3861 3860 4532 3931 4323 4322 3852 4094 10 km 4459 4398 4397 PETRA 14/12/2011 9:50:44 AM  Drilling on 2D seismic only prior to 2012 Legacy 2D Seismic (5,100 km)  2011

45. Slide 45: Otto Producing Asset Purchase

    OTTO PRODUCING ASSET PURCHASE  Definitive agreement signed Dec 14, 2010 to acquire 35% interest in Edirne Licence 3839 in Thrace Basin held by Edirne Enerji (wholly owned by Australia-based Otto Energy Ltd.)  Purchase price US$3.1MM (including taxes) with effective date Oct 1, 2010  Acquisition c

46. Slide 46: Edirne Licence (35%) 2011 Program

    EDIRNE LICENCE (35%) 2011 PROGRAM Kayapa-1 Ortakci -4 Ikihoyuk field 3D seismic coverage Ortakci field D&A Gas Well Ortakci field 200 km2 Ikihoyuk field Follow-up locations on original 3D Follow-up locations on original 3D Arpaci-2 Prospects and leads Workover Dokuztepe-1 Kirmizihoyuk Karayusuf-1 fi

47. Slide 47: Licence 2674, 2677 & 2678 – Earning Program

    LICENCE 2674, 2677 & 2678 – EARNING PROGRAM Seismic  Completed 227 km 2D seismic shoot N  US$2.7MM (net – 100% basis) cost 2678  Identified 20+ prospects & leads on 2674 & 2677 2678 Karakilise-1 2D seismic grid New 2D seismic grid in Bedinan and Mardin formations recompletion  Licence 2678 relin

48. Slide 48: Natural Gas Infrastructure

    NATURAL GAS INFRASTRUCTURE 48

49. Slide 49: Oil Infrastructure

    OIL INFRASTRUCTURE Map of Turkey’s Oil Infrastructure, 2008 ed or " r GREECE i P : ee __!sta + AKS fray YAAN 162 1.4 mb/d ( SS Eis r Black Sea ~<a é ig SOS 3 ee RUSSIA BULGARIA % ‘ La ~~ ds \\ GEORGIA ee 2 Kirktareli ai ) air a Samsun ®/ Oe go ee eSakarya Rnasya Ordu Trabzon ARMENIA ae ¥ e yae Gumts

50. Slide 50: Thrace Basin Turkey – Stratigraphic Column

    THRACE BASIN TURKEY - STRATIGRAPHIC COLUMN  Tertiary basin  9,000 m of tertiary age sediments  Depositional environment − Deltaic sands − Turbidite sands − Reef development on Paleozoic highs  Key reservoirs − Danismen - gas − Osmancik – gas − Mezardere - gas − Ceylan – gas − Sogucak – oil − Ham

51. Slide 51: SE Turkey – Stratigraphic Column

    SE TURKEY - STRATIGRAPHIC COLUMN Reservoirs  Sinan/Garzan reefs (Tertiary/Upper Cretaceous)  Karabogaz & Mardin (Mid Cretaceous)  Bedinan (Ordovician) Source Rocks  Karabogaz (Cretaceous)  Dadas (Silurian) Seals  Germav (Upper Cretaceous)  Dadas (Silurian) Play Types  Structural - Reverse an

52. Slide 52: Canada Year-End 2011 Reserves (Company Gross)

    CANADA YEAR-END 2011 RESERVES (COMPANY GROSS) (1) LIGHT & NATURAL GAS TOTAL OIL PV10 BEFORE HEAVY OIL NATURAL GAS CATEGORY MEDIUM OIL LIQUIDS EQUIVALENT TAX (2) (Mbbl) (Mbbl) (Bcf) (Mbbl) (MBOE) ($MM) PROVED 102 8 0.7 16 236 3.0 PROBABLE 164 5 1.3 53 444 4.9 TOTAL PROVED PLUS PROBABLE 266 13 2.0 70

53. Slide 53: Verenex Energy Inc. Share Price Performance

    VERENEX ENERGY INC. SHARE PRICE PERFORMANCE $100MM financing $20 Amalgamated 10.0 Confirmed 1st Libya Offshore France Prairie Fire. Libya non-consent discovery well D&A $31MM financing. Strategic to CNPC deal Commenced alternatives review 8.0 $15 trading on TSXV $30MM financing CNPC acquisition @ $2

54. Slide 54: Verenex Experience in Libya

    VERENEX EXPERIENCE IN LIBYA  "Go where the oil is"  Seek out first mover advantage  Operate and choose partners wisely  Invest in good science, data capture and quality of technical analysis  Aggressively apply "western" technology and work processes in operations  Ensure experienced, on-the-g

Valeura Energy — Investor Presentation (April 2012) on 6ix