Petrel Energy : Cerro Padilla Update 4 July 2017

4th July 2017

• Onsite operations have resumed
• Drilling to recommence later in the week

• 4 well low cost conventional programme will address:

  • multiple wells different targets

  • significant conventional potential with very material upside

  • oil and gas targets

  • non-binary outcome, 3 of 4 wells have multiple objectives

    Petrel Energy Limited (ASX:PRL) announces that the crew have returned with drilling to commence later in the week following on site start up preparations.

    Managing Director David Casey said "it's good to be staying on site with the crew to see the recent changes implemented and drilling kick off again. Further updates will be released as required."

    Petrel's overarching vision for Uruguay is to drill four wells to cover as much of the concession area as possible while targeting multiple and different conventional exploration objectives within and across each well. More specifically the programme will seek to answer questions from the 2015 partner process such as:

• confirm source rock maturity, quality and extent

• confirm conventional reservoir quality and extent - Darcy permeability (>1000md) already measured in core samples 30km apart

• confirm migration and potential trap integrity - while not the primary objective 3 of the 4 wells are also targeting conventional structures for oil and gas trapped in either the same sequence or up-dip of oil shows and/or weeping core samples as well as provide new insights into the regional geology of this largely unknown sub-basin of the larger Parana Basin

• confirm validity of AVO anomalies identified on seismic

Ultimately Petrel would like to see this as yet another significant step for Uruguay along the path to potential energy self-sufficiency and possible energy exporter at some point in the future.