AusTex Oil : Presentation to Shareholders

PowerPoint Presentation

Annual General Meeting Presentation

May 2016

Annual General Meeting Presentation - May 2016

Disclaimer

Disclaimer

Not an offer This presentation and the information contained in it does not constitute a prospectus or product disclosure statement, disclosure document, offering memorandum or other offer document relating to AusTex Oil Limited A.C.N. 118 585 649 (AusTex), under Australian law or under any other law. This presentation is not and does not constitute an offer, invitation, or recommendation to subscribe for, or purchase any securities in AusTex in any jurisdiction, nor does it form the basis of any contract or commitment. The information in this presentation is provided for informational purpose only in relation to marketing to institutional and professional investors. The information in this presentation is subject to change without notice. No liability Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out in the "Disclaimer" section of this presentation. To the maximum extent permitted by law, none of AusTex and its related entities or their respective directors, officers, employees, advisors or representatives:

1. make any representation or gives any warranty, express or implied, as to the accuracy, fairness, reliability or completeness of the information, opinions and conclusions contained in this presentation including any forecast or prospective information; and

2. accept any responsibility for any errors or omissions or accept any liability for any loss howsoever arising from any use of this presentation whether arising out of negligence or otherwise.

Summary information The information in this presentation is a general overview and does not contain all information investors may require to evaluate an investment in AusTex. In making such investment decisions investors should rely on their own examination of AusTex, AusTex's continuous disclosure and periodic announcements lodged with the ASX and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition of securities. Nothing contained in this presentation constitutes investment, legal, tax or other advice. No verification Although all reasonable care has been undertaken to ensure that the facts stated and opinions given in this presentation are accurate, the information provided in this presentation has not been independently verified. Forward-looking statements

Statements contained in this material, particularly those regarding possible or assumed future performance, costs, prices, resources, production or potential growth of AusTex or, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations, and as such, involve known and unknown risks and uncertainties. Actual future events may vary materially from the forward looking information on which those statements are based. This presentation should not be relied upon as a recommendation or forecast by AusTex. AusTex disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Statements relating to "reserves" are deemed to be forward looking statements as they involve the implied assessment, based on current estimates and assumptions that the reserves can be profitably produced in the future. Readers are cautioned that disclosure of any well test results or initial well production rates are not necessarily indicative of long-term performance.

The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties,

due to the effects of aggregation.

Annual General Meeting Presentation - May 2016

1. Please refer to the disclosures page for relevant context about this presentation

   Executive Summary

   Focused Vertical Producer in Northern Oklahoma Mississippi Lime

   Capitalization, Liquidity and Directors
   Ordinary Shares (mm)	562.6
   Preferred Shares (mm)	220.1
   Total Issued Shares	782.7
   Options Out (mm)	38.0
   Wtd. Avg. Option Price.	A$0.18
   Cash on hand (31/5)	USD$25M
   Michael Stone, Non-Executive Chairman Richard Adrey, Co-Managing Director Nick Stone, Co-Managing Director Russell Krause, Non-Executive Director Justin Clyne, Non-Executive Director & Corp. Secretary

   Company Highlights - May 2016

   • Targeting the Mississippi Lime in Northern Oklahoma
   • Disciplined activity in 2015 and 2016 to match the price environment
   • USD$25M of cash on the balance sheet

     • Creates substantial drilling runway when prices warrant activity

     • Maturity of USD$20M debt facility in 4th quarter 2017

   • Active M&A effort underway looking to deploy capital in acquisitions in the current environment

     − Areas of interest: Oklahoma, Kansas and non-Permian Texas

   • ~10,500 net acres in Kay County with solid infrastructure

     − Refinery located 5 miles away in Ponca City

   • ~70% liquids by volume today (~50% oil and ~20% NGLs)
   • In current environment, USD$400k - USD$500k all-in well cost
   • $35M of 1P PV10 in 12/15 reserve report, 3.5mm BOE of proved reserves based on NYMEX strip pricing at 31/12/15
   Vertical producer in the Mississippian Lime play in Kay County. Strong balance sheet, disciplined focus on capital allocation and operational focus on risk adjusted returns

   Annual General Meeting Presentation - May 2016

2. Please refer to the disclaimer page for relevant context about this presentation

   Acreage Overview - ~10,500 acres outside Ponca City

   Infrastructure in place for full field development

   NORTH

   Highlights

   • Significant acreage yet to be drilled but in a concentrated area with more finite geological risk

     SOUTHEAST

     SOUTHWEST

   • Density likely in the ~30 acre per well range

   • Acreage density and attendant market share yielding commercial benefits

   • Departure of NYSE listed Range Resources from the area leaves substantial infrastructure support which is only minimally utilized

     Note: Exact acreage no longer shown due to competitive activity utilizing our maps to lease

     Substantial inventory of undrilled PUD locations.

     Annual General Meeting Presentation - May 2016

3. Please refer to the disclaimer page for relevant context about this presentation