⚫

⚫ Exploring the prolific Rona

Ridge West of Shetland,

UK Continental Shelf

⚫ Mark Pay

⚫ Spark Exploration, Technical Director

⚫ APPEX 2020 Conference

⚫ 5th March 2020

1

Disclaimer

⚫ This document has been prepared by Spark Exploration Pty Ltd (“Spark”) in connection with providing an overview of its business to interested parties/analysts/investors.

⚫ This presentation is being provided for the sole purpose of providing preliminary background information to enable recipients to review the business activities of Spark. This presentation is thus by its nature

limited in scope and is not intended to provide all available information regarding Spark. This presentation is not intended as an offer, invitation, solicitation, or recommendation with respect to the purchase or

sale of any securities. This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating Spark.

⚫ Spark and its affiliates, subsidiaries, directors, agents, officers, advisers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness

of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability or responsibility for any statement made in, or omitted from, this presentation. No

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⚫ Any statements, estimates, forecasts or projections with respect to the future performance of Spark and/or its subsidiaries contained in this presentation are based on subjective assumptions made by Spark's

management and about circumstances and events that have not yet taken place. Such statements, estimates, forecasts and projections involve significant elements of subjective judgement and analysis

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accuracy of such information; such statements, estimates, forecasts and projections should not be relied upon as indicative of future value or as a guarantee of value or future results; and there can be no

assurance that the projected results will be achieved.

⚫ Prospective investors and interested parties should make their own independent evaluation of an investment in Spark or its assets.

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2

Spark Exploration – An Introduction

⚫ Spark Exploration is a privately owned company focused on exploring

the prolific Rona Ridge, West of Shetland

⚫ Currently holds two innovate licences on the ridge with 100% equity

and a 32nd Round application pending

⚫ Attractive portfolio of fractured basement and conventional prospects

(>1.7 bn bbls mean recoverable), imaged on excellent 3D seismic

⚫ Looking for partners to go drilling (Dry hole cost approx. US$ 10-15M)

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Why the Rona Ridge?

⚫ A long lasting regional structural high adjacent to a

world class oil-rich petroleum system

⚫ 20+ billion bbls STOIIP discovered to date in the

surrounding accumulations (Clair, Lancaster-

Halifax, Foinaven, Schiehallion etc.)

⚫ The area is underexplored compared to other

similar basins, with significant recent discoveries

and appraisal/development activity

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⚫ Two 100% licences, plus pending 32nd Round application

⚫ Diverse opportunities including:

▪ Fractured Basement (Bader)

▪ Devonian (Marmaduke, Ginger)

▪ Lower Cretaceous (Cherry)

▪ Upper Cretaceous (Tuck)

⚫ Possibility to test multiple plays with one well

Portfolio Overview

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Bader – Extension of Basement Mega-Closure

⚫ Lancaster-Halifax-Bader forms a single depth structural

mega-closure with > 1,000 m relief. The structural crest

is at 800 mTVDss

⚫ This ‘buried mountain range’ is being actively charged

from its flanks by a rich, mature oil-prone Kimmeridge

Clay source rocks

⚫ The Lancaster-Halifax-Bader mega-closure expected to:

▪ share the same deep oil water contact proven at

Lancaster-Halifax; and

▪ share the same oil quality (38°API)

Lancaster Early Production System (Hurricane)

Lancaster contains resources of 523 MMstb (2P & 2C)3

of 38.2° API oil. Production commenced in May 2019

>3.5mmbbls produced so far, at an average of 12,900

bopd. Production has increase to 20,000 bopd.

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Fractured Basement Exceeding Expectations on Rona Ridge

⚫ Hurricane has progressively removed industry

scepticism in the play on the Rona Ridge

⚫ Early Lancaster EPS production data is rapidly de-

risking remaining challenges

Source: Hurricane Energy CMD Presentation July 2019Source: Hurricane CMD Presentation July 2019

Since start-up in May 2019 Lancaster EPS has produced over 3.4 mmbbls

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Fractured Basement Reservoir Model

⚫ Granodiorite-tonalitic gneisses with

faults and fractures that extend from

the palaeo-surface hundreds of meters

into the basement

⚫ Forms a dual fracture porosity system:

1. Fault Zones – seismically identified

features forming highly permeable zones

20-70m wide

2. Fractured Basement – connected

permeable fractures and joints between

Fault Zones

⚫ Network naturally propped open with

sediment and hydrothermal minerals

(Holdsworth et al., 2019)

⚫ Seismically mapped fault and fracture

patterns within Bader are similar to

Lancaster-Halifax and in outcrops

onshore Scotland

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Devonian Clair Group Reservoir Distribution

⚫ Clair Field contains STOIIP >7 billion

bbls oil. Clair development phases I & II

target reserves of c. 1 billion bbls. Clair

Phase III is currently being planned

⚫ Lower Clair Group clastic reservoirs are

up to 600 m thick and infill basement

topography on the south-eastern flanks

of the Rona Ridge

⚫ Devonian play fairway extends further

south-west along the flanks of the Rona

Ridge

⚫ Ginger and Marmaduke prospects are

combination structural/truncation traps.

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Ginger Prospect Regional seismic line to the Clair Field

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Ginger Prospect (Devonian)

BCU Depth Structure Map (m TVDss)

⚫ The Ginger Prospect has a combination

structural / stratigraphic trap to the south-

west of the Clair Field spill point

⚫ Updip well 205/20-1 penetrated

Kimmeridgian shales unconformably above

Lewisian Basement

⚫ The prospect straddles P2412 and Block

205/20 (subject to a 32nd Licensing Round

award)

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Lower Cretaceous Ssts Play

⚫ Lower Cretaceous reservoirs have been

targeted by a recent multi-well appraisal

campaign to evaluate the potential for Clair

Phase III development.

⚫ Sandstones have been comprehensively

evaluated including coring and successful

testing via MDT and DST – good quality

⚫ The 2018 Achmelvich oil discovery well

successfully tested Lower Cretaceous

reservoirs in an independent fault bounded

structure, beyond the greater Clair spill point

to the east

⚫ The SW Clair wells have a higher proportion

of later lighter undegraded oil with an

average API value of 26°in 206/12a-5

BADER

CLAIR

RIDGE

205/20-1Significant oil staining in Lwr Cretaceous Ssts

S h e t l a n d P l a t f o r m

F a r o e S h e t l a n d

B a s i n

206/13-1 TD in intrusive volcanics

Poor seismic image due to intrusive volcanics

W e s t S h e t l a n d

B a s i n

P2407

P2412

Top Victory Sands TWT (ms)

SW Clair appraisal targeting Lower

Cretaceous reservoirs

Achmelvich oil discovery in Lwr Cretaceous Ssts

Cherry Prospect

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Cherry Prospect (Lower Cretaceous)

P2407

Crest @

1050m TVDss

Victory Sands juxtaposed against

Jurassic shales

⚫ Cherry is located updip from 205/20-1

where cored Lower Cretaceous Victory

Ssts were strongly oil stained

⚫ Trap created by onlap onto the flank of

the Rona Ridge basement high with 42

km2 closure

⚫ 205/20-1 drilled in 1974 on 2D seismic

and did not penetrate reservoir within a

structural closure

205/20-1 Significant oil staining in Victory Ssts ~700m downdip from

crest of Cherry Prospect

Top Victory Sands (m TVDss)

205/20-1 oil stained core

P10 OWC @ 1600m TVDss

C

C’

Victory Sstsonlap Rona Ridge

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Cherry Prospect - Updip of oil-stained Ssts in 205/20-1

Basement

Base Balder

Top Balder

205/19-B Cherry(Proposed)

C C’

TGS RR13 Full Stack

BCU

Top Victory

Sands

205/20-1

Relayed fault No reservoir offset and no lateral seal

Cherry ProspectBader

Bland seismic character, sand prone section

205/20-1 Significant oil staining in Victory Ssts ~700m downdip from

crest of Cherry Prospect

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Tuck Prospect - Upper Cretaceous Ssts updip of proven gas

⚫ Upper Cretaceous Macbeth sandstones encountered on

north-west flank of the Rona Ridge. 206/11-1 flowed

1.65 MMSCFD gas. Same sandstones also gas charged

in 205/15-1

⚫ Tuck Prospect is an updip stratigraphic trap of the same

sandstones where a far offset amplitude anomaly

indicates better developed reservoir

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⚫ Two 100% held Licences with a diverse portfolio

of opportunities

⚫ Exploring a regional high adjacent to a world

class petroleum system

⚫ Continuation of the Lancaster-Halifax fractured

basement play

⚫ Possibility to test multiple plays with one well

Portfolio Summary

⚫

⚫Thank You

⚫ Visit us at Stand 28

⚫ Contact Details:

⚫ Mark Pay

⚫ Spark Exploration, Technical Director

⚫ mp@sparkexploration.com