1. Healthcare

Corporate Presentation
January 2015
www.sterlingenergyplc.com
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Slide 2
Overview – Targeting High Impact Exploration
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Africa focused portfolio
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Significant exploration assets
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Strong balance sheet
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Odewayne (Somaliland)
Ntem (Cameroon)
Ampasindava & Ambilobe (Madagascar)
Cash of ~$107m, debt free
Cash equivalent to 32p/share
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Experienced management team
Slide 3
Board of Directors -
Track Record of Managing Value Creation
Executive Directors
Non-executive Directors
Alastair Beardsall
Keith Henry
Executive Chairman and Interim CEO
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35 years of international oil industry experience
As Executive Chairman of Emerald Energy, refinanced
Emerald at 25p/share (2003) and sold at 750p/share
(2009)
Non-exec Director of Jupiter Energy (AIM/ASX)
Philip Frank
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Nick Clayton
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Exploration Director
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38 years of international exploration experience
Senior exploration & management positions at BP,
Clyde, Monument, LASMO and Emerald Energy.
Resigned Q4 2014, expect to leave Q1 2015
Chairman of Regal Petroleum and Greenko Group, and
a non-executive director of KSK Power Ventur.
Previously CEO Brown & Root, National Power,
Kvaerner Engineering and Construction
Non-executive Director of Circle Oil and Alpha Petroleum
Resources Limited and adviser to Geopark.
Former Global Head of Oil & Gas Corporate Finance for
Dresdner
Malcolm Pattinson
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Chairman of GTO Ltd
Previously Director of Aurelian Oil and Gas Plc and
Exploration Director at Ranger Oil and Hamilton Oil
Slide 4
Capital Structure
Sterling Energy PLC - listed on AIM 2002
Shares in issue
LTIP (exercise 40p/43p)
FULLY DILUTED
Significant Shareholders
220.1 million
12.7 million
232.8 million
Waterford
Soyuzneftegas Capital Limited
YF Finance Limited
Denis O’Brien
Sprott US Holdings Inc.
~6% of issued share capital under option
Sub Total
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Board and Management
29.9%
15.2%
9.5%
7.4%
5.3%
67.3%
~1%
Corporate re-structuring 2009
Board and management changes
Raised £81m at 52p/share
Slide 5
Cameroon, West Africa - Country Overview
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Oil & Gas *
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Oil production ~63,000 bopd
Proved oil reserves ~200 million barrels
Proved gas reserves ~5 trillion cubic feet
Government
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Independence in 1960
Multi-party presidential system
President Paul Biya
− Held office since Nov 1982
− Elected for further 7 year term in Oct 2011
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* Source: US Energy Information Administration
Slide 6
Cameroon - Ntem Block
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Sterling Energy
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Murphy Oil
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50% interest and operator
Experienced in deep water drilling operations
Ntem - deep water exploration play
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50% non-operated interest
3D seismic over 2/3rd of the block
Water depth 400 – 2,000 metres
All commitments now met for current period
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Exploration Well Bamboo -1
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Total depth 4,747 m in 1,600 m of water
Encountered well developed, high porosity, water- bearing
sandstones in all submarine fan targets
Sterling costs carried by Murphy for Bamboo -1
Slide 7
Cameroon – Bamboo-1 result
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Bamboo -1 results
− Targeted stratigraphically trapped Upper Cretaceous submarine fans
− All targets were found to be well developed high porosity sandstones
− No significant hydrocarbon shows were recorded
W
E
Upper Cretaceous stacked
fan complex
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Pliopleistocene
R
Lwr.
Cretaceous
R
R
Miocene
s
Palaeogene
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Maast-Campanian
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Santonian
s
Turonian
CenomanianAlbian
Migration route
s
s
Source Interval
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Reservoir
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Base Post rift
4 km
Ntem
Additional Cretaceous and Tertiary prospects in the block are being reevaluated by incorporating the significant new data from Bamboo-1
Slide 8
Cameroon - Exploration Setting
Ebome Fields
Perenco operated
production, principally
from Lower Cretaceous.
KH field is nearest Upper
Cretaceous discovery to
Ntem
Block I, O and Yo-Yo
Miocene discoveries made by
Noble Energy
Bamboo-1 well encountered
thick, porous sandstones in
Upper Cretaceous target, but
water-bearing
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CM-1A & Eboni-1
Good quality sands. CM1A reported thin net pay
and oil shows while
Eboni-1 saw gas shows
Okume Complex & Ceiba
Field
Hess operated production from
Upper Cretaceous
stratigraphic/structural closures
1H 2013 Production ~75kbopd
Slide 9
Cameroon & Equatorial Guinea Maritime Border
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Maritime Border Claim
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Declaration of Force Majeure
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In 2005 Sterling Energy declared force majeure
suspending the work obligations under the Ntem
concession.
Lifting of Force Majeure
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Equatorial Guinea made claims over Cameroon’s
maritime territory;
The western and southern boundaries of the
Ntem concession potentially affected.
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In January 2014 Sterling, Murphy and SNH (the
national oil company of Cameroon), agreed to lift
force majeure to allow exploration activity to
resume.
Declaration of Force Majeure
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On 6th May 2014 Sterling Energy declared force
majeure suspending the work obligations under
the Ntem concession.
Slide 10
Somaliland (East Africa) – Country Overview
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Oil & Gas
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Very little exploration to date
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No production
Government
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Somaliland was a protectorate of the UK until
1960
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Declared independence from Somalia in 1991;
allowed development of a stable, democratic
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government
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Not recognised as an independent country but
favourable political contacts with a number of
countries including UK
Slide 11
Somaliland - Odewayne Basin Overview
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Odewayne block is 22,840 km2 , equivalent to +/- 100 UKCS Blocks
No seismic control and no drilling to date
Basin interpreted to be deep enough for Jurassic source rocks to be mature (3.5km+)
Active hydrocarbon system confirmed by oil seeps within the block
Sub-surface basin structure identified by 2013 aero-magnetic survey; multiple 3-way faultcontrolled traps likely.
Structural style expected to be similar to the Nugaal Basin located to east of Odewayne
Slide 12
Somaliland – Odewayne Block Play Elements
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Working petroleum system with
multiple shows and oil seeps
Excellent quality Jurassic source
rock seen in outcrop
Jurassic and Tertiary clastic
reservoirs seen at outcrop
Potential for Jurassic carbonate
reservoir (proven in Ethiopia)
Excellent Cretaceous reservoirs
identified regionally in Ethiopia and
Yemen may be present in
Odewayne.
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Slide 13
Somaliland - Odewayne Block
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Partners
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Genel (50% and operator)
Sterling (40%)
Petrosoma (10%)
Licence Terms and Commitments
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Sterling carried by Genel for all costs in
Periods 3 & 4
Period 3: May 2012 – Nov 2016
− Acquire airborne gravity and magnetics survey
− Acquire 500km 2D seismic data
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Period 4: Nov 2016 – May 2018
− Acquire 1000km 2D seismic data
− Drill one exploration well
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Current Status
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Operations suspended following a security
threat
Somaliland Government setting up Oilfield
Protection Unit (OPU), expected to be
operational 2016
Slide 14
Madagascar– Country Overview
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Economy
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Government
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GDP (2012): $10.1 billion ($451 per capita)
Agriculture 29%
Industry 16%
Elections held in Dec 2013
Hery Rajaonarimampianina was elected President for
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a 5 year term
Oil & Gas
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Heavy oil discovered onshore ~100 years ago, No
material production
Offshore unexplored
Slide 15
Madagascar – Regional Potential
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Exploration of East African conjugate
margins focused on Jurassic
petroleum system
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Jurassic identified as major source rock
Gas discoveries in Tertiary submarine fan
and channel sandstone reservoirs
Additional potential in Cretaceous deep
water sandstones
Madagascar highly prospective
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Jurassic source rocks well-developed at
outcrop on conjugate margin
Jurassic, Cretaceous & Tertiary
depocenters identified
Working petroleum systems
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− Oil discovered onshore in 1901, not yet
developed
− Multiple oil & gas shows in wells
− Multiple seeps
Slide 16
Madagascar – Ampasindava
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Sterling 30%, Exxon 70% and operator
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Large offshore block
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Area 7,379 km2, water depth 200-2000m
3,000 km 2D seismic acquired and interpreted
Additional 1,300 km 2D seismic acquired in 2013
Sifaka prospect
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Sterling carried by Exxon for ~US$30m future gross costs
Large 4-way dip structure
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Stacked hydrocarbon systems
Independent ‘best estimate’ (100%) unrisked prospective
resources of 1.2 billion barrels*
Located in a frontier, undrilled, basin, a high risk prospect
with a chance of success of ~8%*
Forward activities
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Phase 3 of exploration period runs to Sept 2015, minimum
work obligation of 1 exploration well.
Farm-out process to reduce Sterling’s exposure to drilling
costs on-going
Drilling expected in 2015-2016
* RISC 2008
Slide 17
Madagascar – Ambilobe
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Sterling 50% (operator), Pura Vida 50%
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Large under explored offshore block
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Sterling carried by Pura Vida through 3D
seismic programme, with gross costs capped
at $15 million
Area 17,650 km2, water depths 0 -2000m
5,500 km 2D seismic acquired and interpreted
Leads in Cretaceous & Jurassic plays
Forward activities
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Phase 2 of exploration period runs to Sept
2015
No outstanding work obligations
Sterling planning for 3D seismic in 2015, to
mature leads to drill ready prospects
No commitment for drilling exploration well
expected until after Sifaka well in
Ampasindava Block
Slide 18
Other Assets - Mauritania
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Chinguetti Field
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Sterling net financial interest in H1 2014
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~8% financial interest via funding agreement
Current gross field production of ~ 6,000 bopd
Remaining field life ~3 years
Production averaged 436 bopd
Net cash inflow for H1 2014 of ~$4 million
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Royalty on Premier’s interest:
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Up to 6% of Premier’s interests (3% to 6%) in
Chinguetti production
Slide 19
Anticipated Activity Schedule
Note: Company estimates
2015
Q1
Q2
Q3
2016
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Cameroon
Ntem
Somaliland
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2D
Odewayne
well
Madagascar
Ampasindava
well
3D
Ambilobe
Seismic
Well
Other
Firm
Contingent
Slide 20
New Ventures
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Previous projects
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Cash resources of ~$107m
New ventures focused on
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Exploration in areas where team has technical
and geographical experience
Broaden asset portfolio
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Sangaw North #1 (Kurdistan) drilled and
tested a potential resource of 804mmboe
(gross) at $18m cost to Sterling.
Bamboo #1 (Ntem, Cameroon) drilled and
tested a potential resource of 450mmboe
(gross) at no cost to Sterling
Diversify assets and activity
Opportunities
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Assets: farm-in or acquire
Licence rounds
Corporate transactions
Slide 21
Summary of Q3 2014
Q3 2014
H1 2014
FY 2013
Production
463 bopd
436 bopd
527 bopd
Average realised oil price
$97.5 /bbl
$103.9 /bbl
$101.1 /bbl
Revenue
$4.2 million
$9.1 million
$18.4 million
EBITDA
$1.2 million
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$4.7 million
$9.1 million
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$4.3 million
G&A - net of re-charges & capitalisation
($0.2) million
($0.8) million
($3.2) million
Profit / (Loss) after tax
$(0.4) million
$1.7 million
$8.3 million
$3.0 million
$3.6 million
$2.7 million
$107.5 million
$110.9 million
$120.8 million
Impairment reversals
Inventories of oil for resale
Cash
Slide 22
Summary
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Focusing on high upside exploration
programme
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Ntem (Cameroon) – forward plans under
review
Odewayne (Somaliland) - 2D seismic in
2015/16 (carried by Genel)
Ampasindava (Madagascar) - drilling
possibly 2015/16 (part carried by Exxon)
Ambilobe (Madagascar) - 3D seismic in
2015 (carried by Pura Vida)
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New Ventures
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Strong balance sheet
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Frontier Exploration
Production Interest
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Cash of ~$107 million
Debt free
2015 work programme fully funded
High Impact Exploration
High Impact Exploration
Slide 23