#1TEMPIRE energy UNLOCKING AUSTRALIA'S ENERGY FUTURE BLUE OCEAN EQUITIES ENERGY INVESTOR DAY#2Corporate Snapshot Capital Structure ASX Code Shares on Issue Share price Market Cap Cash at bank Net debt Enterprise Value Corporate Structure EMPIRE energy EEG 2,313.1m A$0.02 A$46.3m A$4.5m A$31.8m A$78.1m Share Price EMPIRE energy - EEG price EEG volume 0.04 Jun '16 Oct '16 Apr '17 Oct '17 Feb '18 Jun '18 Oct '18 Source: ASX 100% EEEN EMPIRE ENERGY GROUP LTD (EEG:ASX) EMPIRE energy EMPIRE ENERGY E&P, LLC USA 100% IMPERIAL COIL & GAS IMPERIAL OIL & GAS PTY LTD AUSTRALIA Top 5 Shareholders (25 March 2019) Macquarie Bank Limited Global Energy and Resources Development Limited Liangrove Media Pty Limited HSBC Custody Nominees (Australia) Limited Elphinstone Holdings Pty Limited Feb '19 0.04 0.03 0.03 0.02 0.02 0.01 0.01 0.00 OM Price Volume 14.7% 10.7% 5.3% 3.0% 3.0% 2#3Board of Directors EMPIRE energy Paul Espie AO Non-Executive Chairman Alex Underwood Chief Executive Officer Managing Director John Gerahty Non-Executive Director Professor John Warburton Non-Executive Director David Sutton Non-Executive Director Founding principal of Pacific Road Capital, a global private equity manager investing in resources Former Chairman of Oxiana Limited during the development of the Sepon copper / gold project in Laos Former Chairman of Cobar Mines Pty Limited after a management buyout Former Head of Bank of America operations in Australia, New Zealand and PNG Non-Executive Director of Aurelia Metals Limited Former Director Natural Resources Division of Commonwealth Bank of Australia (Singapore) Former Associate Director Energy Markets Division of Macquarie Bank Limited (Sydney and Singapore) Former Financial Analyst BHP Billiton Petroleum (Perth) Extensive experience investing debt and equity in the upstream oil and gas sector and the identification of value creation opportunities for upstream oil and gas development / production assets Former investment banker with wide experience in business and commerce A founding director of Macquarie Bank Former director of numerous public companies including Chairman of AFP Group PLC and MPI Mines Ltd Chairman of Hardie Grant Pty Limited, its major shareholder Associated Media Investments Pty Limited and AMI Advertising Media Pty Limited Highly regarded petroleum geoscientist 30 years technical & leadership experience in major E&P companies including BP, LASMO-Eni & Oil Search Previously Chief of Geoscience & Exploration Excellence for Oil Search Non-Executive Director of Senex Energy Significant experience in stockbroking and investment banking Career focus on the resources sector including positions as a director of several ASX listed companies CEO of APC Securities Pty Ltd, a boutique financial services company 3#4Global Operations Asset Location and Acreage Mid-Con (Kansas / Oklahoma) ~16,000 acres USA Appalachia (New York/Pennsylvania) ~275,000 acres Northern Territory ~14.5m acres AUSTRALIA USA Conventional Oil & Gas > 13.7 mmboe 2P reserves4 ~1,200 boe per day USA Potential NY Shale5 NT Shale Exploration & Appraisal >14.5m acres >13,000 Pj eq Prospective Resource P(50)1 > 500 mmboe Prospective Resource potential5 EMPIRE energy Commentary Australia Very large footprint in a world class emerging petroleum shale play in Northern Territory Over 14.5m acres including the Beetaloo sub-Basin and McArthur Basin 100% working interest and operatorship in all tenements Independent Prospective Resource Estimate P(50) >13,000Pj eq¹ • Shales in the basin up to 3km thick USA Strategically located near pipeline infrastructure Strong market dynamics - tight East Coast gas and LNG markets Santos and Origin on track to drill fracked horizontal appraisal wells in adjacent tenements in 2019 390 barrels oil per day net and ~5 mmcf gas per day net production Forecasted FY19 EBITDAX of US$4m - US$5m Positive stable cash flow with over 2,000 long life oil & gas wells PDP reserves² 1P reserves³ NPV10 US$34m NPV10 US$55m NPV10 US$59m 2P reserves4 Debt facility with Macquarie Bank US$25.7m drawn balance Maturity February 2022 Sales process underway for part or all of the US assets with proposals under consideration 1: Prospective Resource P(50) - unrisked, is the estimated quantities of petroleum that may potentially be recovered by the application of future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons - see slide 21 2: PDP reserves - Proved Developed Producing Reserves. See Appendix "US Reserves and Resources" on slide 22 3: 1P reserves - Total Proved Reserves. See Appendix "US Reserves and Resources" on slide 22 4: 2P reserves - Total Proved plus Probable Reserves. See Appendix "US Reserves and Resources" on slide 22 5: NY Shale acreage currently subject to NY State regulations which do not allow high volume hydraulic fracturing of shale reservoirs 4#5IMPERIAL OIL & GAS Australian Operations Overview#6McArthur Basin - The Opportunity I Empire's Northern Territory Acreage Carnarvon Basin Perth Basin. Canning Basin Bonaparte Basin Beetaloo The Greater Basin McArthur Basin Officer Basin Amadeus Basin Georgina Basin Galilee Basin Drummond Basin Pedirka Eromanga Basin Warburton Basin Maryborough Basin Cooper Basin Adavale Basin Bowen Basin Basin Otway Basin Surat Basin Clarence-Moreto Basin Gunnedah Basin Darling Basin Sydney Basin Gippsland Basin 3 Legend Prospective Area McArthur Basin Commentary Northern Territory Geological Survey estimated Gas In Place for Beetaloo Basin Middle Velkerri Shale is > 500 TCF1 • Santos and Origin planning to drill large scale fracked horizontal appraisal wells in H2 20191 • Beetaloo and Greater McArthur Basins on the verge of becoming a major gas production province 1: Scientific Inquiry into Hydraulic Fracturing in the Northern Territory EMPIRE energy 1 North McArthur Prospective development targets include Primary organic rich unconventional targets -Velkerri, Kyalla, Wollogorang, McDermott and Barney Creek shales 2 3 5 Glyde Primary organic rich unconventional targets would include the Velkerri, Barney Creek and Kyalla shales Beetaloo 4 Primary organic rich unconventional targets would include the Velkerri, Barney Creek and Kyalla shales Carpentaria/Southern McArthur The Barney Creek, Velkerri, Wollogorang and McDermott shales are key prospective targets 5 South Nicholson The Lawn Hill and Riversleigh shales identified as significant development horizons 6#7GE EMPIRE energy McArthur Basin - The Opportunity 100% LA Darwin Katherine KEY OPERATORS EMPIRE energy 75% Santos 25% Tennant Creek Nhulunbuy Commentary Numerous large independent oil and gas companies hold substantial acreage positions in the Greater McArthur Basin. This includes: - Origin Energy/ Falcon Oil & Gas JV - Santos/ Tamboran Resources JV - Hancock Prospecting - Pangaea Resources - Empire Energy - Armour Energy Following the lifting of the fracking moratorium, the NT Government is proactively implementing regulations to allow industry activity to recommence imminently Drilling activity is ramping up materially Santos to drill up to 2 fracked horizontal wells in 2019 testing Velkerri Shale¹ Origin to drill up to 2 fracked horizontal wells in 2019 testing Velkerri Shale and Kyalla Formation² Hancock Prospecting has indicated the potential to invest A$150m - A$200m in exploration³ 70% Origin energy HANCOCK 100% PROSPECTING TAMBORAN 30% N Alice Springs 82.5% PANGAEA 17.5% ENERGY & MINERALS 100% armour energy GROUP 1: Santos 2018 Full Year Results Presentation 21 February 2019 2. Origin Energy Half Year Results Presentation 21 February 2019 3: Hancock Prospecting Submission #461 to the Fracking Inquiry (6 September 2017) 7#8EMPIRE energy McArthur Basin - Substantial Committed Investment Numerous farm-out deals have been carried out resulting in capital commitments of hundreds of millions of dollars by major oil and gas companies1 Year Vendor Investor WI Basin Cash Upfront Carried expenditure Acres (mm) 2011 OIL & GAS FALCON HESS 62.5% Beetaloo A$27m A$162m 6.2 2013 2014 FALCON OIL & GAS TAMBORAN Resources Limited Santos O Beetaloo / 75.0% A$10m A$71m 6.4 McArthur SASOL reaching new frontiers 70.0% Beetaloo A$20m A$185m 4.6 origin 20152 EMPIRE EMPIRE energy 80.0% AMERICAN ENERGY PARTNERS Beetaloo / McArthur A$20m A$80m A$133m 14.5 2015 75.0% armour energy McArthur / Nicholson A$31m A$173m A$133m 31.3 AMERICAN ENERGY PARTNERS • A number of large farmout deals have been carried out across the basin • Major oil companies globally recognize that the Beetaloo / McArthur Basin shales have world scale potential The lifting of the fracking moratorium and recommencement of appraisal drilling activities pave the way for a resumption of corporate activity Empire is one of the only tenement holders in the basin with 100% equity and substantial acreage footprint 1: Company filings/press releases 2. Transactions did not proceed due to passing of founder of AEP 8 00#9McArthur Basin - Vast & Proven Petroleum System EMPIRE energy Multiple well tests and core holes have encountered oil, gas and liquids across the basin including in and immediately adjacent to Empire's tenements McManus 1 Pacific Oil & Gas Pty Ltd November 1989 Oil shows Velkerri. Gas Shows Lower Velkerri. Bleeding oil from Velkerri core Wyworrie #1 Pangaea Pty Ltd August 2015 Tarlee $3 Pangaea Pty Ltd September 2014 Birdum Creek #1 Pangaea Pty Ltd July 2015 Kalala S-1 Origin Sasol Falcon JV September 2015 Elevated gas shows Amungee NW-1 Origin Sasol Falcon JV October 2015 Excellent gas shows Amungee NW-1H horizontal currently underway ఎ BCF SC 04 Imperial Oil & Gas July 2014 Oil staining in the Looking Glass Sands Legend Prospective Area McArthur Basin Beetaloo Sub-Basin Glyde Sub-Basin North McArthur Sub-Basin Carpentaria Sub-Basin South Nicholson Sub-Basin Altree 2 Pacific Oil & Gas Pty Ltd December 1988 Oil shows Bessie Creek SS Cow Lagoon 1 Armour Energy Ltd June 2012 Significant gas shows & flares from Lynott, Reward & Coxco dolomites ONP Tanumbirini 1 Santos Ltd October 2014 Total depth of 3,945 meters, Multiple thick intervals of organic- rich rock, significant mud gas shows. 90 meter core taken Glyde 1 ST1 Armour Energy Ltd August 2012 Offset from GRNT 79-09 Natural fractures, Free flowed @ 3.3 MMscf/d Shenandoah 1 Falcon Oil & Gas Australia October 2011 Excellent lower Kyalla gas shows. Up to 1000unit or 11% gas 100 Miles Jamison 1 Pacific Oil & Gas Pty Ltd November 1990 Cored. Gas & free oil DST of Jamison SS Jamison 1 Kyla Fm Burdo 1 Pacific Oil & Gas Pty Ltd September 1993 Oil shows in the Kyalla. cored taken Burdo 1 Kyala Fm#10Beetaloo Basin - Amungee Discovery Well1 EMPIRE energy Amungee NW-1H, the first fracked horizontal well in the Beetaloo Basin, flowed at similar rates to the US wells that commercialised shale in 1998... Flow rates are almost certain to improve as completion designs are optimised Key Highlights • Drilled in Dec 15 - TD 3,808m, incl. 1,100m horizontal section in the B Shale of the Middle Velkerri formation I • . • Hydraulically fracture simulated in Nov 2016 11 Hydraulic stimulation stages completed across approx. 600m 95% of programmed proppant placed Successful production test in February 2017 Av TOC ~4%; Porosity 4% to 7.5%; Permeability 50 to 500 nD IP averaged 1.10MMscf/d over 57 days Final production rate 1.07mmscfd Cumulative production 63mmscf Estimated dry gas composition of 92% methane, 3% ethane, 5% carbon dioxide 2C Contingent Resource Estimate is 6.6TCF (486,000 acres) Amungee NW-1H flow rate in relation to 1998 US shale wells² The S.H. Griffin #4 produced 1.3million cubic feet of natural gas per day for the first 90 days, an unbelievable amount for the time. Steinsberger, in an interview with The Atlantic, said, "This was the 'aha moment' for us, it was our best well ever in the Barnett, and it was a slick water frack. And it was my baby!" This was a revolutionary moment, marking the beginning of modern-day fracking in shale as we know it. Since the S.H. Griffin, more than a hundred thousand wells have been fracked in the United States, and most of them use a technique similar to what was first done in the Barnett Shale. Steinsberger had finally figured out how to get shale rock formations to give up their natural i gas and do so in an economical way. L 1: Falcon Oil & Gas, Origin Energy 2. Extract page 7 - An Energy Fracking Revolution: 35 Years of Fracking in the Barnett Shale - How North Texas Fracking Turned America into an Energy Superpower (1 June 2016) • • Kalala S-1 Amungee NW-1 GR Res Gas show GR Res Gas show 2,000m C B B A 2,600m A 3 organic rich shale intervals (A, B & C shales) within the Middle Velkerri Formation Gross thickness of mid-Velkerri up to 500m with net pay in B & C shales >30m each • Average TOC 3% to 4% Favorable geo-mechanics for hydraulic stimulation 20% to 25% overpressure, excellent for volumetric and reservoir productivity Good porosity and gas storage 10#11Fracking - Transformational Impact on Market US fracking has changed the oil and gas market forever Monthly shale gas production in the US since 2004¹ billion cubic feet per day • eia Commentary • Shale oil and gas has transformed the US oil and gas industry Shale basins now produce over 60 billion cubic feet of gas per day 70% of total US gas production from shale in December 2018 100 90 80 70 60 50 40 30 20 10 0 2004 2006 2008 2010 2012 2014 2016 2018 rest of U.S. other U.S. shale gas Marcellus (Pa., W.Va., Ohio, N.Y.) Permian (Texas, N.M.) Utica (Ohio, Pa., W.Va.) Haynesville (La., Texas) Eagle Ford (Texas) Barnett (Texas) Woodford (Okla.) Bakken (N.D., Mont.) Niobrara-Codell (Colo., Wyo.) Mississippian (Okla.) Fayetteville (Ark.) Monthly shale oil production in the US since 20042 million barrels per day 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2004 2006 2008 2010 2012 2014 2016 2018 rest of U.S. other U.S. tight oil Eagle Ford (Texas) Spraberry (Texas Permian) Bakken (N.D., Mont.) eia Wolfcamp (Texas and N.M. Permian) Bonespring (Texas and N.M. Permian) Niobrara-Codell (Colo. and Wyo.) Mississippian (Okla.) Austin Chalk (La., Texas) Woodford (Okla.) 1: US Energy Information Administration 2: US Energy Information Administration, https://www.eia.gov/todayinenergy/detail.php?id=38372 • Shale basins now produce over 7 million barrels of oil per day • • EMPIRE energy 60% of total US oil production from shale in December 2018 Commercial production is derived from numerous US shale basins Technological advancements in hydraulic fracturing and horizontal drilling have opened up a significant number of shale basins in the US Key Takeaway • US fracking technology and experience is being used to commercialise other shale basins around the world US basins are not the only ones in the world that can be successfully fracture stimulated New shale basins outside of the US are being developed • Empire believes this will be the case with the Northern Territory shales basins 11#12Export Domestic McArthur Basin - Gas Commercialisation LNG processing infrastructure available well beyond current gas supply Strong Gas Demand • Massive buildout of East Coast LNG has created substantial domestic gas shortfall • LNG plant expansions could double installed capacity • Rapidly increasing Asian demand for LNG with strong prices Darwin City Gate D to Berrimah (LNG Pipeline DARWIN LNG 1 train/0.5Bcf/d 2 trains/1.4Bcf/d Wadeye ICHTHYS LNG 2 trains/1.2Bcf/d 6 trains/3.6Bcf/d WIN Wickham Point Pipeline McArthur River Pipeline Daly Waters Australia very strategically located to fulfil Asian demand with low sovereign risk NORTHERN GAS PIPELINE Pipeline Infrastructure There is already a pipeline in place going directly through Empire's EP187 tenement which allows for near-term commercialisation. Rights of way in place to build new, larger pipeline alongside existing pipeline. A 1.0 Bcf/d pipeline to Darwin would cost $1.5b, and could be expanded to 2 to 3 Bcf/d with compression. This cost could be borne by pipeline operators upon reserve certification by Santos / Origin / Pangaea / Empire Jemena has publicly stated that following lifting of the NT Fracking Moratorium it will increase its $800m investment in the Northern Gas Pipeline by up to $4bn to increase installed capacity from 90 Tj/day to 700 Tj / day¹ "Santos is focused on further exploring and appraising the McArthur Basin in the NT, a multi-TCF prospective resource position analogous to US shale plays. Santos' focus for this region is to support Darwin LNG backfill, expand our acreage footprint and explore and appraise the McArthur Basin."2 Amadeus Gas Pipeline Tennant Creek Alice Springs Mereenie Palm Valley Palm Valley to Alice Springs Pipeline 1: Jemena Media Release: Jemena welcomes decision to lift fracking moratorium (17 April 2018) 2: www.santos.com/what-we-do/assets/northern-Australia/ Mt Isa Cannington Townsville North Queensland Gas Pipeline - Moranbah AUS-PACIFIC LNG 2 trains / 1.3Bcf/d 4 trains / 2.6 Bcf/d EMPIRE energy Carpentaria Gas Pipeline Barcaldine GLNG Gas Transmission Pipeline Dawson Valley Pipeline Queensland Gas Pipeline Peabody Mitsui Gas Pipeline Dawson Valley Fairview Scotia Cheeple- Barcaldine Pipeline Comet Ridge to Wallumbilla Pipeline Glentullocke Heedy Creek Cheeple Spring Gully Wallumbill Pipeline Ballera South West Queensland Pipeline Current Total: 9 trains / 5.3Bcf/d Potential Total: 18 trains / 10.8Bcf/d LNG hampton LNG CURTIS LNG 2 trains / 1.2Bcf/d 3 trains / 1.8Bcf/d tis Island LNG LNG Gladstone APLIN GLADSTONE LNG Pipeline Bund 2 trains/1.1Bcf/d Wallumbilla Bellevue 3 trains/1.4Bcf/d Gladstone Maryborough Pipeline Berwyndale to Wallumbilla Pipeline Berwyndale South Darling Downs Kinco Silver Springs Darling Downs Pipeline Kincora to Wallumbilla Pipeline Australian Gas Networks (Qld) BRISBANE Allgas Gast Network Roma-Brisbane Pipeline Plant Status COP's Darwin Online QCLNG Online Operator ConocoPhillips Capacity 0.5 Bcf/d 1.2 Bcf/d GLNG Online Santos 1.1 Bcf/d APLNG Online 1.3 Bcf/d Ichthys LNG Commissioning INPEX 1.2 Bcf/d Total 5.3 Bcf/d 12#13Beetaloo / McArthur Basin - Empire Shale Targets Empire is targeting significant shale zones Empire Shale Targets Velkerri Formation Bamey Creek Formation or Equivalent Wollogorang and/or McDermott Formations གགཡུཟུ་༣་ Absolute Lithology Stratigraphy Thickness Oil & gas potential HC Source shows Unconventional Conventional reservoir reservoir Gas O Chambers River Fm <300 m 1492 14 Ma 1493+4 Mal 1589+3 Ma 16093 Ma 1613 ± 4 Ma Fm Kyalla Mb ca 250 m Sherwin Mb Moroak Mb Velkerri Fm Bessie Creek Sandstone Corcoran Fm Abner Fm Crawford Fm Mainoru Fm Limmen Sandstone Dungaminnie Fm Balbirini Fm Smythe Sandstone up to 100 m 2.5-6m 330-600 m 20-367 m 180-225 m 80-500 m 0-235 m ca 130->1000 m 20-100 m <240 m <1500 m <100-250 m Karns Dolostone 100-250 m T 161414 Ma Amos and I Looking Glass Fms 16252 Ma Stretton Sandstone I 1636t4 Ma Yalco Fm Donnegan Mb Hot Spring Mb Caranbirini Mb 30-<140 m <5-270 m <50-250 m 0-140 m 50-350 m 0-300 m ° • Reward Dolomite 30.350 m 1640+4 Ma Barney Creek Fm. 10-900 m 16414 Ma Coxco Dolomite Mb Lower Teena Dolomite Emmerugga Dolomite 15-70 m <5-270 m ca 620 m Palaco-Proterozoic 1641 14 Ma 1708±5 Ma 17137 Ma Myrtle Shale Leila Sandstone Tooganinie Fm Tatoola Sandstone Amelia Dolomite Mallapunyah Fm Masteron Sandstone Echo Sandstone Burash Sandstone Nyanantu Fm Tanumbirini Rhyolite Warramana Sandstone 50-180 m 100-ca 450 m 40-650 m 265-365 m <370 m ca 450 m ca 450 m >250 m 40-60 m <10-30 m ca 200 m 80-350m Packsaddle Microgranite Hobblechain Rhyolite 70-100 m Gold Creek Volcanics 15-230 m 1723 14 Ma Wollogorang Fm >350 m Settlement Creek Dolerite 100-200 m - - EMPIRE energy Target Regions . Total 33,867 km² (8.4mm acres) of identified shale for Independent Prospective Resource identification Velkerri Shale / Kyalla (Beetaloo sub-Basin) - 628,000 acres (>2,500km²) - Independent Prospective Resource (P50) 1.2TCF gas + 24 mmbbls oil / condensate Barney Creek Formation (McArthur Basin) - 6.2mm acres (>25,000km²) - Independent Prospective Resource (P50) 8.7TCF gas + 174 mmbbls oil/ condensate - Shales up to 3km thick Wollogorang Formation (McArthur Basin) - 1.5mm acres (>6,000km²) - Independent Prospective Resource (P50) 1.2TCF gas + 24 mmbbls oil / condensate 13#14Beetaloo Sub Basin - Empire Initial Target Empire's 1-3 TCF target on trend with major Origin discovery and Santos work program 2 IOG 2014 shallow core holes! Key Highlights EP183 • Empire -2,543km² (630,000 acres) in eastern Beetaloo sub-basin • Amungee NW-1H - TD 2,500m considered Beetaloo sub-basin Prince of Wales-1 Friendship-16 Shea-1 Borrowdale-1,-2 Golden Grove-1 Lawrence-1 Lady Penrhyn-1,-2 Scarborough-T -Alexander-1 Sevar-1 Supply-1 Beetaloo Sub-basin Walton-1,-2 EP184 EP 188 Tawalla Broadmere-1,-1ST McManus-1. Chanin-1- Shenandoah-1,-1A- Balmain-1. Altree-1,-2 Ronald 1 82/1 Burda Tanumbirini 1 Mason Shortland-1- Jamison-1 100 km Erott-1 Carpentaria Basin EP187 MD4 Existing sealed all weather EMPIRE VELKERRI SHALE TARGET road and gas pipeline 1: American Energy Partners pre-drill estimate • EMPIRE energy Tanumbirini-1 well encountered Velkerri shale from 2,400m to >3,800m Santos to undertake major fracked horizontal development program in adjacent block Empire EP187 Work Program • • • Velkerri Shale in EP187 will be Empire's initial exploration, appraisal and development target 231 line km 2D seismic will delineate the shape of the basin and identify drilling targets Initial drilling program to comprise stratigraphic wells and a core well to confirm hydrocarbon content and rock characteristics Thereafter, fracked horizontal production wells will be drilled and put into production EP 187 is located on an existing sealed road and gas pipeline which reduces drilling costs and allows for near term commercialisation Expected volume per typical 10,000 ft Hz Velkerri producing >10 Bcf/well1 1 14#15Scale of Empire Beetaloo Initial Exploration Target Empire's initial Beetaloo Basin target has significant scale EMPIRE energy 20 km GLNG, Roma Field Santos seismic sectiion Strike Line Taloona Gas Plant APLNG Fields WESTERN SURAT GAS PROJECT Roma Hub Subcrop line for base of Velkerri Fm 187-Bb INSET Hermitage Coxon Pleasant Hills Creek EP(A) 188 EP184 Velkerri Fm Target ODD94RK2 W3 W2 W1 Oil Dry gas Wet gas + 187 Aa Top Vekem 2000 in Top Velkem 1000 m Top Velkeri 0 m MD4 Baso Veikers Initial drill targets Senex Western Surat Gas Project • A company making development project • 395Pj 2P Reserves¹ • 110 well development program² . Potential for 425 wells over > 20 years¹ Empire EP187 Beetaloo Basin Initial Target • 1,200 3,000+ Pj prospective resource estimate (P50 - P10) with liquids potential Sufficient scale to be a major development project for an incoming industry major This target contains only a small subset of Empire's total prospective resources in the Northern Territory Initial exploration program to comprise seismic acquisition and core hole drilling (subject to final investment decision and government approvals) . Gas pipeline Carpentaria Highway Cape Crawford EP187 WEST EP187 VELKERRI FM SHALE PLAY (-1000 km2) 1: Senex Energy, ASX Announcement - Driving Growth with Gas, 28 November 2018 2: Senex Energy, ASX Announcement - FY19 Half year results, 19 February 2019 20 km Tablelands Highway 15#16Velkerri Shale - Marcellus Equivalent EMPIRE energy A major unconventional opportunity with the Velkerri/Kyalla shales, with original gas in place equivalent to 3 stacked Marcellus shale plays Effective Porosity (%) Equivalent porosity and maturity 3x gas per square mile With millions of acres in the core Gas In Place 300 (Bcf/sq mi) 7.0% Ro (%) 1.9% Equivalent depositional environment 6.7% 1.8% Velkerri Marcellus Velkerri 'B' interval alone equivalent to the Marcellus Net Thickness (ft) 450' 45% 40% Equivalent minerology Quartz (%) 150' 100 25% 25% Sw (%) 6% 8% TOC (%) 65% 7,500 0.6 65% 9,500 Equivalent deliverability 0.6 Frackability (1-Clay %) TVD (ft) Slightly deeper in core areas Pressure Gradient (psi/ft) Identical pressure gradient Minimal water production Similar organic content Source: American Energy Partners Clear USA shale analog of Marcellus shale identified for the Velkerri shale 16#17Barney Creek Shale - Utica Equivalent EMPIRE energy A major unconventional opportunity with the Barney Creek shale, with original gas in place equivalent to 50% more than Utica shale plays Source: American Energy Partners Equivalent porosity and maturity Effective Porosity (%) 10.0% 50% more gas per square mile Gas In Place (Bcf/sq mi) Ro (%) 9.0% 1.9% 2.0% Equivalent depositional environment Barney Creek Utica 3x the net Net Thickness (ft) Sw (%) 90 thickness Slightly higher water saturation 300' 60 20% 10% 100' 25% 20% Equivalent mineralogy Quartz (%) 4% 4% TOC (%) Equivalent organic content 70% 80% 9,000' Equivalent deliverability 0.7 Frackability (1-Clay %) 9,500' TVD (ft) Equivalent Depth 0.8 Pressure Gradient (psi/ft) Similar pressure gradient psi/ft Clear USA shale analog of Utica shale identified for the Barney Creek shale 17#18Prospective Resource Overview The below overlay illustrates the size of Empire's acreage in the McArthur Basin US Prospective Resource Estimates Prospective Area km² (million acres) 246,000 (61 mm) 36,894 (9.1 mm) 12,950 (3.2 mm) 23,309 (6 mm) Basin Marcellus Eagle Ford Barnett Fayetteville Un-risked Prospective/ Technically Recoverable Resource (TCF) Basin Overlay Comparison Empire's acreage in the ■ McArthur Basin is I approximately 1.5x the size of the entire Eagle Ford Shale 300 262 250 200 150 134 100 50 44 42 250 0 Marcellus Eagle Ford Barnett Fayetteville McArthur Basin "Prospective Resource" is the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons Basin scale comparison for illustrative purposes only. Not geographic overlap. Fayetteville Basin - USA Carboniferous 6 million acres (gross thickness up to 550 ft) Marcellus Basin - USA Devonian 61 million acres (gross thickness up to 890 ft) Eagle Ford - USA Late Cretaceous 9.1 million acres (gross thickness up to 950 ft) EMPIRE energy 18#19Key Takeaways Empire has substantially reduced debt, increased cash balance and renewed the Board of Directors ✓ Strategy is to focus on the substantial value creation potential of Empire's Northern Territory assets ✓ The Middle Velkerri Shale of the Beetaloo Basin is a world class resource with over 500 TCF gas in place ✓ Northern Territory Government is proactively implementing fracking regulations Major industry appraisal expenditure is expected to recommence in the coming months Beetaloo Basin operators are likely to commence flow testing of appraisal wells later in 2019 Empire is the only ASX listed junior with Beetaloo Basin and McArthur Basin assets EMPIRE energy 19#20APPENDICES EMPIRE energy 20#21Northern Territory Resource Estimate Independently certified estimated Prospective Resource Formation Barney Creek Permits EMPIRE energy Geological factor discount Area m acres Units P90 P50 PV10 EP 184, EPA 180, 181, 182, 183, 188 50-90% 3,559 Bcf 3,304 8,699 20,172 50-90% MMBO 66 174 403 Velkerri EP184, 187, EPA 188 50% 315 Bcf 383 1,192 3,086 50% MMBO 8 24 62 Wollogorang EP 184, 187, EPA 188 90% 1,384 Bcf 524 1,185 2,371 90% Total MMBO 10 24 47 MMBOe 851 2,238 5,183 I I Significant prospective resource - P50 13,000 Pj equivalent I Conversion Factor: 5.485 Mcf: 1 Bbl Northern Territory Resources by: Muir & Associates P/L and Fluid Energy Consultants Prospective Resource - unrisked, is the estimated quantities of petroleum that may potentially be recovered by the application of future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons 21 21#22USA Reserves and Resources As at December 31, 2018 EMPIRE energy Reserves (NYMEX STRIP - DEC 31, 2018) Oil (Mbbls) Gas (MMcf) MBoe Capex US$M PVO US$M PV10 US$M Region (Reserves) - USA Proved Developed Producing Proved Developed Non-producing Proved Behind Pipe Proved Undeveloped Total 1P Probable Total 2P Possible Total 3P US Reserves certified by Graves & Co Consulting 2,561 60,745 12,685 29 97,645 34,337 779 779 1,403 14,145 7,340 483 483 583 13,617 5,054 1,402 5,217 2272 14,806 31,603 8,172 5,225 65,962 16,219 16,821 157,010 54,903 407 8,213 1,776 8,977 23,930 3,986 5,632 74,175 17,995 25,798 180,940 58,889 2,068 5,447 2,976 24,590 63,185 11,967 7,700 79,622 20,970 50,388 244,125 70,856 22 22#23EMPIRE energy Definitions & Reserves Information Notes to Reserves • The scope of the Reserve Studies reviewed basic information to prepare estimates of the reserves and contingent resources. The quantities presented are estimated reserves and resources of oil and natural gas that geologic and engineering data demonstrate are "In-Place", and can be recovered from known reservoirs. Oil prices for Reserve calculations are based on NYMEX West Texas Intermediate (WTI) as at December 31, 2018. Including hedging. Gas prices for Reserve calculations are based on NYMEX Henry Hub (HH) as at December 31, 2018. Including hedging. Prices were adjusted for any pricing differential from field prices due to adjustments for location, quality and gravity, against the NYMEX price. This pricing differential was held constant to the economic limit of the properties. All costs are held constant throughout the lives of the properties. The probabilistic method was used to calculate P50 reserves. The deterministic method was used to calculate 1P, 2P & 3P reserves. The reference point used for the purpose of measuring and assessing the estimated petroleum reserves is the wellhead. "PVO" Net revenue is calculated net of royalties, production taxes, lease operating expenses, and capital expenditures but before Federal Income Taxes. "PV10" is defined as the discounted Net Revenues of the company's reserves using a 10% discount factor. "1P Reserves" or "Proved Reserves" are defined as Reserves which have a 90% probability that the actual quantities recovered will equal or exceed the estimate. "Probable Reserves" are defined as Reserves that should have at least a 50% probability that the actual quantities recovered will equal or exceed the estimate. "Possible Reserves" are defined as Reserves that should have at least a 10% probability that the actual quantities recovered will equal or exceed the estimate. Prospective Resource P(50) - unrisked, is the estimated quantities of petroleum that may potentially be recovered by the application of future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. Utica shale gas potential resources have only been calculated for the region where drill data is available. Very few wells have been drilled into the Utica in Western NY and NW Pennsylvania. Estimates for GIP have been made were the few existing wells have been drilled. Empire holds additional acreage outside the current potential resource region. It is expected that as with shale characteristics, the shale formations will continue within the remaining acreage. The potential GIP may increase if more data was available. "Bbl" is defined as a barrel of oil. "Boe" is defined as a barrel of oil equivalent, using the ratio of 6 Mcf of Natural Gas to 1 Bbl of Crude Oil. This is based on energy conversion and does not reflect the current economic difference between the value of 1 Mcf of Natural Gas and 1 Bbl of Crude Oil. "D&C" means drilled and completed and "F&D" means cost of finding and developing a project. "EBITDAX" means Earnings Before Interest, Tax, Depreciation/Depletion, Amortization & Exploration. "LOE" means lease operating expenses. "M" is defined as a thousand. "MM" is defined as a million & "MMBoe" is defined as a million barrels of oil equivalent. "Mcf" is defined as a thousand cubic feet of gas & "MMcf" is defined as a million cubic feet of gas. All volumes presented are net volumes and have had subtracted associated royalty burdens which means the Net revenue interest or "NRI".. Qualified petroleum reserves and resources evaluators The information in this report which relates to the Company's reserves is based on, and fairly represents, information and supporting documentation prepared by or under the supervision of the following qualified petroleum reserves and resources evaluators, all of whom are licensed professional petroleum engineer's, geologists or other geoscientists with over five years' experience and are qualified in accordance with the requirements of Listing Rule 5.42: Name Mel Hainey Organisation Graves & Co Consulting, LLC John P Dick Pinnacle Energy Services, LLC Wal Muir Muir and Associate P/L * SPE: Society of Petroleum Engineers *PESA: Petroleum Exploration Society of Australia Qualifications BPE BPE BSc, MBA Professional Organisation SPE* SPE* PESA** None of the above evaluators or their employers have any interest in Empire Energy E&P, LLC or the properties reported herein. The evaluators mentioned above consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. 23#24Disclaimer & Confidentiality EMPIRE energy This presentation has been prepared by Empire Energy Group Limited ("Empire" or the "Company"). The information in this presentation is information of a general nature and is subject to change without notice. The information in this presentation does not purport to be complete, nor does it contain all of the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth). It contains information in a summary form only and should be read in conjunction with Empire's other periodic disclosure announcements to the ASX available at www.asx.com.au. This presentation contains summary information about EEG and its activities as of March 2019. Investment Risk An investment in Empire shares is subject to known and unknown risks, many of which are beyond the ability of Empire to control or predict. These risks may include, for example, movements in oil and gas prices, a failure to acquire some or all of the targeted acreage, risks associated with the development and operation of the acreage, exchange rate fluctuations, an inability to obtain funding on acceptable terms or at all, loss of key personnel, an inability to obtain appropriate licences, permits and or/or other approvals, inaccuracies in resource estimates, share market risks and changes in general economic conditions. Such risks may affect actual and future results of Empire and its shares. Projections have potential inaccuracy This presentation contains statements, opinions, projections, forecasts, and other material ("forward looking statements"). These statements can be identified by the use of works like 'anticipate', 'believe', 'intend', 'estimate', 'expect', 'may', 'plan', 'project', 'forecast', 'will', 'should', 'could', 'seek' and other similar expressions. Forward looking statements may be based on assumptions which may or may not prove to be correct. None of Empire, its respective officers, employees, agents, advisers or any other person named in this presentation makes any representation as to the accuracy or likelihood of fulfilment of the forward looking statements or any of the assumptions upon which they are based and disclaim any obligation or undertaking to revise any forward looking statement, whether as a result of new information, future event or otherwise. Disclaimer Maps and diagrams contained in this presentation are provided to assist with the identification and description of Empire's lease holdings and Empire's intended targets and potential exploration areas within those leases. The maps and diagrams may not be drawn to scale and Empire's intended targets and exploration areas may change in the future. All share price information is in Australian dollars (AU$) and all other dollars values are in United States dollars (US$) unless stated otherwise. The information contained in this presentation does not take into account the investment objectives, financial situation or particular needs of any recipient and is not financial product advice. Before making an investment decision, recipients of this presentation should consider their own needs and situation and, if necessary, seek independent professional advice. Representation To the maximum extent permitted by law, Empire and its respective officers, employees, agents and advisers give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this presentation. Further, none of Empire nor its respective officers, employees, agents or advisers accept, to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this presentation. Any recipient of this presentation should independently satisfy themselves as to the accuracy of all information contained herein. 24 24