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Investor Presentaiton

Armour Energy and controlled entities armourenergy.com.au Review of operations and activities continued for the year ended 30 June 2020 OPERATIONS REVIEW CONTINUED SURAT BASIN ASSETS CONTINUED Kincora Production Drilling continued Also, during the December 2019 Quarter, Armour successfully fractured stimulated the Myall Creek #5A Permian sandstones across the lower Bandana and Upper Tinowon formations. The well was brought online and achieved an initial production wellhead rate (IP30) of 3.2 TJ/d. The well continues to exceed expectations and follow-up candidates are being considered. In addition to new production wells, Armour has continued to restart existing well stocks and optimise the gathering system, with the addition of field compression. Low costs efforts to connect and restart Kungarri 1 and Riverside 1 have resulted in an initial Ⓒ combined wellhead rate (IP30) of 0.37 TJ/d. Further intervention and workover efforts continue to be considered for other existing wells in the gathering network. Sell Kincora Gas Reserves Upgrade On 12 June 2020, Armour provided an update on the Company's gas growth and development plans for the Kincora Gas Plant which highlighted: AD). 2P gas reserves increased by 22% to 150.3 PJ. Material long term potential demonstrated across the wider Kincora Project. Reserves independently verified. The following numbers in Table 1 and Figure 4 have been evaluated in accordance with the Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS) and independently certified and documented in Armour Energy's Hydrocarbon Reserves (as at 31 December 2019) report. Armour's successful hydraulic stimulation of Myall Creek 5A, the drilling of the Horseshoe 4 gas well and ongoing geological and reservoir studies across the greater Kincora Project have contributed to the upgrade in reserves. Armour has re-evaluated existing discovery wells and identified significant tight gas from the Myall Creek area and south along the western flank of the Roma Shelf in its operated authority-to-prospect, potential-commercial-areas and petroleum licences. Multiple hydrocarbon saturated tight liquid rich gas reservoirs are present in cased/suspended wells and offer further opportunities to accelerate production. Armour has commenced plans to hydraulically stimulate existing well stock in 2020 and in 2021. These efforts are expected to contribute to gas production and further characterise the fields for future drilling and ultimately contribute to the reserve's maturation strategy. Kincora Oil Reserves and Resources Initial Booking Armour completed an extensive review of its acreage for oil exploration, appraisal, and development potential. During the financial year, Armour's technical staff progressed geological and engineering studies across the greater Kincora Project. As a result of these studies, Armour has identified a previously unbooked oil reserves and resources. Refer to Armours' ASX announcement of 18 February 2020 for more information. The following numbers in Table 2 and Table 3 have been evaluated in accordance with the Society of Petroleum Engineers - Petroleum Resources Management System (SPE-PRMS) guidelines, independently assessed and approved. Kincora Oil Project - Reserves Estimated Total Oil (BBL) 1P 2P 3P 245,600 1,220,600 2,639,500 Table 2 Armour Energy Bowen-Surat estimated net aggregate quantities of Oil Reserves Notes Kincora Gas Project Gas (Bscf) Sales Gas (PJ) LPG (T) Condensate (Bbl) Table 1 Combined Armour Energy Gas Reserves 1P 59.33 67.4 139,000 670,000 For 350 Armour's Kincora Gas Reserves (PJ) 300 250 200 150 294 321.1 100 50 123.6 150.3 169.1 67.4 61.7 35.2 39.6 0 12 Dec-17 Dec-18 Dec-19 Dec-17 Dec-18 Dec-19 Dec-17 1P 1P 1P 2P 2P 2P 3P " Reserve numbers in Table 1 only reflect new Oil Reserves Reserves are classified according to SPE-PRMS Reserves are stated on a risked net basis with historical production removed Reserves can be lifted and sold on behalf of any minority interest holder Reserves are stated inclusive of previous reported estimates 2P 132.2 3P 282.4 . • 150.3 321.1 . Bbl 310,000 1,493,000 663,000 3,191,000 . barrels, kbbl = thousand barrels, mmbbl = million barrels 1P = Total Proved, 2P = Total Proved + Probable, 3P = Total Proved + Probable + Possible Kincora Oil Project - Contingent Resources Estimated Total Oil (BBL) 1C 2C 3C 1,231,000 3,696,000 8,019,000 Notes Petroleum reserves are classified according to SPE-PRMS. Petroleum reserves are stated on risked net basis with historical production removed Petroleum Reserves have no deduction applied for gas used to run the process plant estimated at 7% Table 3 Armour Energy Bowen-Surat estimated net aggregate quantities of Oil Contingent Resources Notes Contingent Resources numbers in Table 2 only reflect new Oil Reserves Contingent Resources are classified according to SPE-PRMS Contingent Resources are stated on a risked net basis with historical production removed, where applicable Contingent Resources can be lifted and sold on behalf of any minority interest holder Contingent Resources are stated inclusive of previous reported estimates The aggregate 1C may be very conservative and the 3C very optimistic because of arithmetic summation Dec-18 Dec-19 3P 3P Petroleum Reserves can be sold on behalf of any minority interest holder " Petroleum Reserves are stated inclusive of previous reported estimates . Bbl barrels, kbbl = thousand barrels, mmbbl = million barrels ■1P Dec-17 1P Dec-18 ■1P Dec-19 ■ 2P Dec-17 ■2P Dec-18 Figure 4 Armour Energy Reserves growth as per 31 December 2019 BSCF billion cubic feet, PJ = petajoules, bbls barrels, gas conversion 1.137 PJ/BCF 1P Total Proved; 2P = Total Proved + Probable; 3P Total Proved + Probable + Possible. LPG Yield 2065 tonnes/petajoules, Condensate Yield 9938 barrels/petajoules 13
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