2015 Half-Yearly Results 20 August 2015

Forward looking statements

This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements.

August 2015 | P1

Agenda

August 2015 | P2

Introduction

Tony Durrant

UK

Stuart Wheaton

Sea Lion

Neil Hawkings

Exploration

Robin Allan / Dean Griffin

Finance

Richard Rose

Outlook

Tony Durrant

2015 1H performance Operating cash flow of $513 million

Increased cash flows: strong production, lower costs and hedging benefits (which continue into 2H and 2016)

Production of 60.4 kboepd

Above budget and guidance year-to-date driven by 94% operating efficiency

Opex per barrel reduction

Many initiatives on-going; 1 bn boe August 2015 | P19

Balance of wells targeting Mature verses Emerging plays 2012 well campaign 2015 well campaign

100% Mature

100% Emerging

2015 North Falklands Basin campaign Aim • Demonstrate exploitation potential of F2 • Explore upside potential of F3 2015 1H highlights

Two discoveries from two wells

• Zebedee oil & gas discovery (36% op interest) – adds c. 50 mmbbls to Phase 2 • Isobel Deep oil discovery (36% op interest) – de-risks the Isobel/Elaine fan complex (unrisked Pmean resource of 400 mmbbls) – opens up potential Phase 3 development

PL032 prospects

Chatham Pmean

47 mmbbls

Jayne East Pmean

Zebedee

50 mmbls

2015 2H look ahead

Phase 2 prospects

• Jayne East (36% op interest) – would add resource to Phase 2 • Chatham (40% op interest) – would add resource to Phase 1b

Beyond 2015 • Additional exploration/appraisal prospects identified for drilling in 2017/2018 August 2015 | P20

39 mmbbls

Southern exploration leads

Isobel / Elaine Pmean

400 mmbbls

Jayne East and Isobel Deep Full stack amplitude at F3G horizon

Jayne East

• Jayne East targets northern end of F3 fan sequence and shallower F2 horizons • Further drilling at Isobel / Elaine complex to confirm significant resource potential of southern F3 fan system (unrisked Pmean 400 mmbbls)

Zebedee

Jayne East

North Falkland Graben Isobel / Elaine Re-drill

Isobel Deep

Isobel Deep Isobel / Elaine

10Km

August 2015 | P21

Brazil – high quality address • Limited drilling in the deeper water parts of the northern Brazil basins

• Recent significant discoveries in the Ceará, Potiguar and Sergipe Basins • Success of West African Transform Margin (WATM) not yet fully tested in Brazilian basin equivalents

Foz do Amazonas Basin Para-Maranhao Basin Harpia discovery?

WATM Basins Jubilee – 771 MMboe Baobab – 356 MMboe Enyenra – 200 MMboe

Barreirinhas Basin 1-MAS-036 gas discovery?

Keta-Togo-Benin Basin Ojo oil discovery

Ceará Basin Pecem & 1-CES-161

Douala Basin

Offshore Potiguar Basin Pitu discovery

Rio Muni Basin Ceiba – 264 MMboe Okume – 107 MMboe

Pernambuco Paraíba Basin Sergipe-Alagoas Basin Sergipe discoveries (x5) 795 MMboe total

• Regional play work to identify sweet spots within high graded basins with proven active petroleum systems Source IHS/Petroview

August 2015 | P22

Brazil Ceará Basin – expanding acreage footprint Brazil Focus Basin Outline of new 3D survey being acquired 3Q15

• Strong analogies with West African Tano basin discoveries

Cretaceous sand channel systems

• Proven light oil petroleum system

• Multiple play types Mean gross unrisked resource > 2 bn bbls Pecem discovery • Flowed light oil to surface when tested in 2014 • De-risks key play elements

• Attracted supermajors to make significant operational commitments Opportunity • Dominant position in basin • Low cost farm-in to 661 • 3 wells drilling late 2017/18

• Premier coordinating rigshare

August 2015 | P23

Mexico – low cost entry Low cost entry to high quality acreage • Awarded 10% in Blocks 2 & 7, shallow water Sureste Basin • Option to increase interest to 25% prior to drilling • Numerous leads in established and emerging plays • Fully carried to first well on each block Block 2 Salt stock

Closure

Miocene Depth Structure Map – Poblano Prospect August 2015 | P24

Block 2 • Primary target – 100 mmbbls • 3 follow on prospects of c. 80-100 mmbbls each Block 7 • Primary target – 130 mmbbls • 4 follow on prospects of c. 40-150 mmbbls each

Strong partnership

Proven but under-explored hydrocarbon basin Low cost entry

Finance Richard Rose Finance Director

Strong cash flows in 2015 1H 6 months to 30 June 2015

6 months to 30 June 2014

Working Interest production (kboepd)

60.4

64.9

Entitlement production (kboepd)

55.7

59.7

Realised oil price (US$/bbl) - post hedge

83.7

107.9

7.2

9.1

$m

$m

Cash flow from operations

570

609

Taxation

(57)

(110)

Operating cash flow

513

499

Capital expenditure

(518)

(506)

83

-

(49)

(49)

Dividends

-

(44)

Share buy back

-

(33)

29

(236)

Realised gas price (US$/mcf) - post hedge

Disposals Finance and other charges, net

Net cash in (out) flow

August 2015 | P26

Capital expenditure ($m) 2015 1H

FY 2015 E

Exploration

$115

$240

Development

$403

$900

Total

$518

$1,140

Comprises $49m from the Block A Aceh sale and ~$34m positive adjustment from Scott area disposal Liquids hedging 1H 2015

2H 2015

2016

Barrels hedged

2.7 m

2.85 m

3.5 m

Average price ($/bbl)

$103

$92

$69

Significantly reduced costs Committed capex ($m)

Gross G&A ($m)

P&D Capex

1500

350

Exploration

Significantly reduced capex commitments from 2016

1000

500

Forecast Actual

300 250 200 150 100 50

0

0 2014

2015

2016

2017

2018

Opex ($m)

Forecast

500

Actual

2019

FY 2014 (actual)

2015 initial 2015 final budget budget (Oct 14) (Feb 15)

2015 forecast (Aug 15)

30% reduction in opex • Sale of Scott area

400

• Renegotiation of contracts

300

2015 1H: $14/bbl opex

200

• Operating efficiencies • Lower insurance & fuel costs

100

• Reduced headcount

0 FY 2014 (actual)

August 2015 | P27

2015 initial 2015 final 2015 forecast budget (Oct 14) budget (Feb 15) (Aug 15)

• Contractor rate cuts

Income statement Operating costs ($/boe) 6 months to 30 June 2015 $m

6 months to 30 June 2014 $m

577

885

Cost of sales

(684)

(646)

Gross profit/(loss)

(107)

239

(52)

(50)

(8)

(13)

-

(84)

(167)

92

(48)

(41)

Profit/(loss) before taxation

(215)

51

Tax credit/(charge)

(160)

122

Profit/(loss) after taxation

(375)

173

Sales and other operating revenues

Exploration/New Business General and administration costs Disposals Operating profit/(loss) Financial items

2015 1H

2014 1H

UK

$28.8

$34.9

Indonesia

$8.9

$10.1

Pakistan

$3.2

$2.7

Vietnam

$10.1*

$15.5

Group

$13.7

$18.5

* excludes insurance receipts of $4.7m Cost of sales breakdown 750

500

250

Profit before tax and impairments

171

195 Non-cash items

0 Operating Stock Royalties costs underlift

DD&A

Impairment

Cost of sales

$3.3 bn of UK tax losses and allowances August 2015 | P28

Liquidity and balance sheet position At 30 June 2015 $m

At 31 Dec 2014 $m

372

292

Drawn debt maturities ($m) 1400

1238

1200 1000

Cash Bank debt

(1,482)

(1,230)

Bonds

(753)

(955)

Convertibles1

(230)

(229)

(2,093)

(2,122)

Covenant headroom

$417

$700

Gearing2

59%

53%

1,446

1,940

Net debt position

Cash and undrawn facilities 1 Maturity 2 Net

value of US$245 million debt/net debt plus equity

800

558

600

400

307

362

2017

2018

200 0 2015

2016

2019 20202024

Average debt costs of 4.7% (fixed) and 2.2% (floating)

Old covenants Amended covenants

Net debt/ EBITDAX 5 4 3 2 1 0 2015 1H

August 2015 | P29

2015 FY

2016 1H

2016 FY

2017 1H

2017 FY

Summary Tony Durrant CEO

Outlook Opex ($/boe) 20 20

1.

• Robust, low cost production generates good cash flow

19

15

17

16

14 10 5 0

2013

2014

2015 budget

2015 1H

2015 forecast

Committed capex $m 1500

2.

• Growing production profile – Intense focus on execution – Reducing level of spend

P&D Capex

1000

Exploration

500

0

2014

2015F

2016

2017

2018

Illustrative capital allocation @ $60/bbl

3. August 2015 | P31

• Free cash flow will be directed at debt reduction

P&D committed capex Cash available for debt reduction Exploration commitments

2019

August 2015

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