Corporate Objective and Strategy

Corporate Objective and Strategy

Petsec Energy’s corporate objective is to increase shareholder value by increasing the net asset value of the Company through successful oil and gas exploration, development and production, thereby building Petsec Energy into a significant mid-tier oil and gas exploration and production company, respected in the industry for its technical skills, timely and cost effective delivery of projects, and the integrity with which it conducts its business.

The Company’s strategy is to meet the above objective is to maximise the value of its current reserves, pursue participation in high quality, high impact exploration drilling opportunities, and to acquire leases, with undeveloped or producing oil and gas reserves, which hold significant development, low risk exploitation and exploration potential.

Prior to 2014, the strategic and geographical focus of the Company was predominately in Louisiana, USA. This focus shifted in 2014 to include oil reserve acquisitions in the MENA region. In Yemen, the Company holds two leases: Block 7 holds undeveloped oil resources (11 to 110 MMbbls target resources) in the Al Meashar discovery, and substantial exploration potential; and Block S-1 a production licence over five oil and gas discoveries holding in excess of 54 MMbbls oil and 550 Bcf gas one of which is developed (An Nagyah Oilfield – 25 MMbbls remaining recoverable) and was in production until late in February 2014 when the field was shut-in due to political unrest.