#12nd Quarter 2015 E&P QGEP: A unique Brazilian play queiroz galvão EXPLORAÇÃO E PRODUÇÃO#2Agenda queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset High Potential Development & Exploration Portfolio Strong Financial Position Strategic Growth Plans#3A UNIQUE BRAZILIAN E&P PLAY 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP3 NOVO MERCADO Listed independent Brazilian E&P company with a strong financial position BM&FBOVESPA INVESTOR PRESENTATION Present in multiple offshore Brazilian basins Balanced portfolio offers exposure across assets in different stages of maturity •Production: Manati Field •Development: Atlanta Field •Exploration: Carcará Discovery, Equatorial margin, among others Success as operator in deep waters P. 3#4A UNIQUE BRAZILIAN E&P PLAY 334 97 INVESTOR PRESENTATION 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Management and operating team with decades of domestic and international experience Multiple partnerships with regional and global players Solid balance sheet with net cash position and steady cash flow to fund Capex Part of QG Group, with presence across O&G sector P. 4#5STRONG FOOTPRINT IN THE OIL&GAS SEGMENT OF THE QUEIROZ GALVÃO GROUP The QG Group 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO DRILLING & FPSO SHIPPING queiroz galvão ÓLEO E GÁS Leading Brazilian oil & gas services company with world class standards of efficiency ESTALEIRO 1AB Atlânticosul Largest shipyard in the Americas E&P queiroz galvão EXPLORAÇÃO E PRODUÇÃO Only Brazilian independent company to operate in the pre- salt premium area of the Santos Basin EPC QUIP One of the leading EPC providers in Brazil ENGINEERING queiroz galvão CONSTRUÇÃO One of the largest engineering companies in Brazil with a proven track record ▸ Sponsorship of the Queiroz Galvão Group, one of the largest conglomerates in Brazil with an extensive footprint and 30 years experience across the Oil & Gas and Infrastructure industry ▸ Consolidated Group Gross Revenues of R$10.7 billion in 2014 ▸ Arms length transaction between the Group's companies INVESTOR PRESENTATION P. 5#6Agenda queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset High Potential Development & Exploration Portfolio Strong Financial Position Strategic Growth Plans#7EXPERIENCED LEADERSHIP TEAM Education Technical team includes 48 highly qualified professionals International experience in USA, Libya, Iraq, Angola, Nigeria, Colombia, among others Vast experience in Brazil's most important basins Leadership positions in important discoveries in Brazil, Gulf of Mexico and West Africa Experience in successful development of challenging fields INVESTOR PRESENTATION Experience Background PhD 10% M.S. 35% MBA 10% Ex Petrobras 46% Other companies 54% 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO B.S. 45% More than 30 years 44% From 21 to 30 years 6% From 11 to 20 years 19% Up to 10 years 31% P. 7#8Agenda queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset High Potential Development & Exploration Portfolio Strong Financial Position Strategic Growth Plans#9BALANCED & DIVERSIFIED PORTFOLIO OF ASSETS 9queiroz galvão Macapá EXPLORAÇÃO E PRODUÇÃO Belém São Luís Fortaleza Rio de Janeiro 3 Salvador Vitória Recife - 1st independent Brazilian Oil & Gas Company to operate in the pre-salt premium area of Santos Basin - - 14 Concessions in 8 different basins Operator of 7 concessions, 6 in the exploratory phase and 1 in the development phase. - 1 producing Field: Manati - 3 Fields Under Development - Atlanta, Oliva and Camarão Norte - 2 discoveries - Carcará and Alto de Canavieiras São Paulo D 0 125 250 500 750 1.000 INVESTOR PRESENTATION km P. 9#10Agenda queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset High Potential Development & Exploratory Portfolio Strong Financial Position Strategic Growth Plans#11< MANATI FIELD: HIGH QUALITY ASSET WITH PREDICTABLE PRODUCTION Largest shareholder of the Manati Field = 45% working interest Partners: • Petrobras 35% (Operator) Geopark: 10% • Brasoil: 10% 2P Reserves net to QGEP: 38.9 million boe(1) (1) As of December 31, 2014 INVESTOR PRESENTATION Manati Camarão Norte Gasene SALVADOR 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP's Gas Fields Valdemir Ferreira Gas Treatment Plant Petrobras Blocks Compression Plant 05 10 20 KM P. 11#12CONSISTENT, VISIBLE PRODUCTION AT MANATI FIELD ୬ queiroz galvão EXPLORAÇÃO E PRODUÇÃO Daily Gas Production (MMm³ per day) 6,6 6,7 6,6 6,1 5,2 6,2 6,1 6,0 5,9 5,9 5,9 5,7 5,0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Average 2012: 6.1MMm³ per day Average 2013: 6.0MMm³ per day 3Q14 4Q14 1Q15 Average 2014: 5.9MMm³ per day Construction of a surface compression plant on schedule and on budget. The plant will be operational in mid-2015 Production capacity to return to ~6.0MMm³ per day after the compression plant is completed For 2015, production capacity estimated to average 5.5MMm³ per day INVESTOR PRESENTATION P. 12#13Agenda queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset High Potential Development & Exploratory Portfolio Strong Financial Position Strategic Growth Plans#14PROLIFIC SANTOS BASIN < More than 30 billion barrels already discovered Area of focus for more than 50% of Petrobras' future investments Multi-Play Basin: Post-salt (sandstones and carbonates), Pre-salt (sandstones, biolitites and carbonates) Presence of high quality oil Important discoveries include: Lula, Iara, Carioca, Libra, Franco, Jupiter, Sapinhoá, Atlanta and Carcará INVESTOR PRESENTATION SÃO PAULO BM-S-8 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO RIO DE JANEIRO CARIOCA QGEP Blocks Petrobras Bocks --- Pre-Salt Ring Fence Pre-Salt Oil Discoveries TUPI (Lula) GUARÁ -BS-4 LIBRA FRANCO IARA 0 50 100 200 KM P. 14#15BS-4: OPERATORSHIP IN DEEP WATERS 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Atlanta and Oliva post-salt Fields 80% of the recoverable oil in Atlanta QGEP: Operator and 30% stake ATLANTA FIELD 14° API heavy oil with certified GCA reserves of1P reserves of 147 MM bbl, 2P of 191 MM bbl and 3P of 269 MM bbl Tests at first two horizontal wells of Atlanta's EPS indicated production capacities close to 12Kbbl/d per well Petrojarl I FPSO chartered from Teekay Offshore Partners L.P. for the Early Production System (EPS): The vessel is being customized to the Field's specifications The unit is to arrive on site during 1H16 First oil in Atlanta is expected in the beginning of 3Q16 INVESTOR PRESENTATION 239 LIBRA Atlanta Oliva S-M-330 20 10 0 20 KM S-M-172 2000 P. 15#16ATLANTA FIELD PRODUCTION AND FINANCIALS 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Atlanta Field Development Plan calls for an Early Production System (EPS), followed by a Full Development (FD) System, as follows: EPS: Oil production of 25-30 kbpd for 3 years Two production wells are drilled, equipped to produce 25kbbl/d for the first three years; a 3rd well to increase average production capacity to 30kbbl/d is contemplated EPS Capex: US$728 million (for 3 wells) | Opex: US$480k/d, including charter, services, logistics, abandonment fund and others FD: Maximum oil production capacity of 80 kbpd, with production up to 2033 Addition of 10 horizontal wells, totalling 12 production wells Production Estimate - based on 2P reserves, as stated in the Field's Development Plan: Estimated Atlanta Field Production Profile (kbpd) 80 70 60 50 40 30 20 10 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 INVESTOR PRESENTATION ■FD Production (kbpd) ■EPS Production (kbpd) P. 16#17queiroz galvão BM-S-8: MAJOR COLUMN OF AT LEAST 471 METERS OF EXPLORAÇÃO E PRODUÇÃO OIL OF 31° API AT CARCARÁ PROSPECT < 10% stake Contingent and Prospective Resources Carcará discovery: A A Major column of at least 471 meters of 31° API oil exclusive of any contaminants such as CO2 and H2S Excellent quality of reservoirs High estimated potential flow rate Next steps: A < January 2015: Drilling of the second Carcará appraisal well started with testing to follow 3Q15: second phase of drilling of Carcará appraisal well planned with testing to follow End of 2015: Results for tests at second appraisal well are expected by the, and for the first in 2016 Extended Well Test (EWT) planned for 2017 Drilling at the Guanxuma prospect expected to begin in late 2015 CARCARÁ CARIOCA GUANXUMA BM-S-8 O CARAMBA Prospects Discovery/Field INVESTOR PRESENTATION GUARÁ. LULA 0 10 20 40 P. 17 KM#18EMERGING CAMAMU AND JEQUITINHONHA BASINS Similar geological context Post-salt and pre-salt targets Sandstones and potentially carbonate reservoirs 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO SALVADOR 0 15 30 60 Manati KM Previous discoveries in the Basins include: Pinaúna (oil), Sardinha (oil and gas), Manati (gas), and Camarão/ Camarão Norte Camarão Norte (gas) Notice of discovery filed with ANP in the pre-salt section Alto de Canavieiras well at Block BM-J-2 INVESTOR PRESENTATION BM-J-2 Gasene QGEP's Blocks Petrobras Blocks CAL-M-372 P. 18#19BLOCKS AWARDED IN THE 11th ANP BIDDING ROUND 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO ▸ 8 Blocks acquired in 11th ANP Bidding Round: total area of 5,785 km² ▸ Operatorship in 5 of the 8 blocks ▸ 5 new partnerships including: Statoil, Total, Premier Oil, Pacific Rubiales and Petra Energia Basin Block Other Consortium Members QGEP Operator Working Interest Foz do Amazonas FZA-M-90 Premier Oil Pacific Brasil QGEP 35% Espírito Santo ES-M-598 Statoil Brasil Petrobras Statoil 20% US$39 Espírito Santo Pará- Maranhão Pará- Maranhão ES-M-673 Statoil Brasil Petrobras Statoil 20% PAMA-M-265 Pacific Brasil QGEP 30% PAMA-M-337 Pacific Brasil QGEP 50% ▸ Total of R$94.9 million in signature bonuses ▸ Ongoing acquisition of seismic data ~ million net to QGEP for the next two years ▸ Four exploratory wells committed to begin in 2017 ~ US$200 million net to QGEP Total Ceará CE-M-661 Total 25% OGX Pernambuco -Paraíba Pernambuco -Paraíba PEPB-M-894 Petra Energia QGEP 30% PEPB-M-896 Petra Energia QGEP 30% INVESTOR PRESENTATION P. 19#20Agenda queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset High Potential Development & Exploratory Portfolio Strong Financial Position Strategic Growth Plans#21QGEP'S FINANCIAL PERFORMANCE Gas Production (Millions of m³) Net Revenue (R$ million) 1.010,6 982,3 973,1 III 243,7 -4,6% 232,6 2012 2013 2014 1Q14 1Q15 EBITDAX (R$ million) 285,1 271,4 285,1 57% 65% 62% 56% 462,3 486,1 503,2 9queiroz galvão -1,0% 127,3 126,0 2012 2013 2014 1Q14 1Q15 Net Income (R$ million) 192,2 166,1 40% 92,1 58% 82,5 73,1 18% T 36% 20% 25,1 28,9 2012 2013 2014 1Q14 1Q15 2012 2013 2014 1Q14 1Q15 EBITDAX Margin Net Margin INVESTOR PRESENTATION EXPLORAÇÃO E PRODUÇÃO 23% P. 21#22STRONG NET CASH POSITION A A < 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Cash balance R$1.3 billion as of March 31, 2015 Net cash of R$852 million as of March 31, 2015 R$375 million the cash invested in exchange funds R$233 million credit line with BNB to fund the projects in the northeast of Brazil R$266 million financing package from Brazil's Financiadora de Estudos e Projetos (FINEP) Goal: to support the development of the Atlanta Field EPS Terms: Two credit lines: one fixed rate, one floating 3-year grace period and amortization period of 7 years Investment Distribution ■Santander 10,8% ■Government Securities 53,8% Ratings* Caixa Econômica 9,5% ■Bradesco 8,9% ■ BNB 6,0% ■ HSBC 4,5% ■ Votorantim 2,2% ■ Itaú 1,5% Other 2,7% ■ AA 1% AAA 99% INVESTOR PRESENTATION *Does not include Government Securities P. 22#23CAPEX 2013-2015 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Capex needs of US$ 352 million for 2015 and 2016 are fully funded BS-4 Development and BM-S-8 Exploration will absorb 30% and 35% of the investment, respectively CAPEX net to QGEP (US$ million) 187 11 165 10 93 62 112 42 21 1 2015 2016 ■Production ■Development Exploration ■ Other INVESTOR PRESENTATION CAPEX net to QGEP (US$ million) 187 11 1222 165 9 10 27 33 12 55 62 42 21 2015 ■Manati ■BM-S-8 ■CAL-M-372 ■ Other 67 41 1 2016 BS-4 Development Blocks Round 11 ■BM-J-2 P. 23#24Agenda queiroz galvão EXPLORAÇÃO E PRODUÇÃO QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset High Potential Development & Exploration Portfolio Strong Financial Position Strategic Growth Plans#25CALENDAR: EXPLORATORY ASSETS 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Asset 2014 2015 2016 2017 2018 2019 Operator Carcará Guanxuma CAL-M-372 On hold due to environmental license BM-J-2 Round11 ES-M-598 ES-M-673 PEPB-M-894 PEPB-M-896 CE-M-661 PAMA-M-265 PAMA-M-337 FZA-M-90 Seismic Acquisition Seismic Processing G&G Interpretation Exploratory Drilling (Firm well) Extended Well Test (EWT) INVESTOR PRESENTATION P. 25#26EVOLUTION Goals 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Deliver Develop current portfolio to generate a production flow 5 years Create successful E&P track record Geography Brazil (SE basins); and opportunistically on frontier basins Technology Deep water and ultra-deep water Growth Operating model Development of Atlanta and Carcará; opportunistic M&A Operate ~50% of assets; Substantial outsourcing (seismic, platforms); Target share up to ~30-40%/asset Partnerships Petrobras (Carcará); Independent (Atlanta); Majors/Int'l (risked portfolio) Financing INVESTOR PRESENTATION Manati, IPO resources and debt; Discipline and Consistent performance P. 26#27EVOLUTION LONG TERM Goals Geography Growth 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO Consolidate Invest in new blocks to ensure sustainability 10+ years Top Brazilian player Brazil (producing and frontier basins: Santos, Espírito Santo, Foz de Amazonas, Pará-Maranhão) Develop risked portfolio Acquisition via ANP auctions/ exploratory blocks Robust partners with strategic fit (deep water, other markets) Partnerships Financing Cashflow from Atlanta and Carcará; Debt; Selective farm-outs INVESTOR PRESENTATION P. 27#28CONTACT US Investor Relations QGEP Participações S.A. Av. Almirante Barroso, nº 52/sala 1301, Centro, Rio de Janeiro, RJ CEP: 20031-918 Phone IR: 55 21 3509-5959 - Fax: 55 21 3509-5958 E-mail: [email protected] www.qgep.com.br/ri INVESTOR PRESENTATION 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO P. 28#29DISCLAMER 9queiroz galvão EXPLORAÇÃO E PRODUÇÃO This document contains some statements and information about the Company that reflect the current views and/or expectations of the Company and its managers with regard to its activities. These include all statements containing forecasts and projections or that indicate or imply future results, performance or achievements, which may include such words as "believe", "predict", "expect", "contemplate", "will probably result", or any other words or expressions of similar meaning. Such statements are subject to a series of expressive risks, uncertainties and assumptions. Readers are warned that several important factors may lead actual results to significantly diverge from the plans, targets, expectations, estimates and intentions expressed herein, there can be no assurance that the Company will achieve or is likely to achieve the future results or projections contained herein. Under no circumstances shall the Company or its directors, officers, representatives or employees be liable to any third parties (including investors) should they make decisions, investments or business acts based on information and statements presented herein, nor shall the Company be liable for any indirect damages, loss of profit, or similar consequences thereof. The Company does not intend to provide shareholders with any revised versions of the statements or analysis of differences between the statements and actual results. This presentation does not contain all the necessary information for a complete investment assessment on the Company. Investors must produce their own assessments, including the associated risks, before making an investment decision. INVESTOR PRESENTATION P. 29