re: evaluation of the petroleum and natural gas …...the oil reserves are presented in thousands of...

Ref.: 3683.70922

March 26, 2018

Mr. John Horsburgh Ithaca Energy Inc. 8 Rubislaw Terrace Aberdeen, Scotland AB10 1XE

Re: Evaluation of the Petroleum and Natural Gas Reserves of Ithaca Energy Inc. As of December 31, 2017

Dear Mr. Horsburgh:

This letter report (the “Report”) was prepared by Sproule International Limited (“Sproule”) at your request for Ithaca Energy Inc. Ithaca Energy Inc. is hereinafter referred to as "the Company". This letter report was prepared on March 26, 2018 and is effective as of December 31, 2017. It consists of an evaluation of the petroleum and natural gas reserves of the Company's interests located onshore and offshore United Kingdom.

The UK Brent crude oil and IPE Britain NBP natural gas price forecasts used in this report were provided by the Company.

The Report, has been prepared for the Company’s use in filing with the Israel Securities Authority (ISA). In our opinion the assumptions, data, methods and procedures used in the preparation of the Report are appropriate for such a purpose.

Report Contents

For the purposes of summarizing the results, the Company’s 16 fields have been divided into two groups; the Greater Stella Area (GSA) fields and the Non-GSA fields.

140 Fourth Avenue SW, Suite 900 Calgary, AB, Canada T2P 3N3 Sproule.com T +1 403 294 5500 F +1 403 294 5590 TF +1 877 777 6135

Ithaca Energy Inc. 2 March 26, 2018 Sproule International Limited

The following tables are included in this report:

• Table 1 - presents the grouping of the fields and ranking of the properties based on reserveswithin each field grouping, before income taxes, for the total proved plus probable reservescategory, as of December 31, 2017.

• Table 2 - summarizes our evaluation, before and after income taxes, by group and by reservescategory, of the petroleum and natural gas reserves of Ithaca Energy Inc., as of December 31,2017.

• Table 3 - presents a summary of selected pricing, inflation and exchange rate assumptions.• Table 4 - presents detailed forecasts of production and net revenue for the various reserves

categories for the GSA and non-GSA fields.• Table 5 – presents a summary of the historical production, unit cost and revenue data, using data

provided by the Company.

The following Appendices were also included:

• Appendix A – Abbreviations, Units and Conversion Factors• Appendix B – Petroleum Fiscal Terms

Report Standards

The Report was prepared by Sproule using current geological and engineering knowledge, techniques and computer software. It was prepared within the Code of Ethics of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”). This report adheres in all material aspects to the “best practices” recommended in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) which are in accordance with principles and definitions established by the Calgary Chapter of the Society of Petroleum Evaluation Engineers.

The use of the Report, in part or in whole, outside the scope of which it has been prepared may not be appropriate.

Sproule reserves the right to review all calculations made, referred to or included in this Report and to revise the estimates as a result of erroneous data supplied by the Company or information that exists but was not made available to us, which becomes known subsequent to the preparation of this Report.

The reserve estimates and net present values prepared in this evaluation have also been reviewed in relation to the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (“SPE-PRMS”), approved by the Society of Petroleum Engineers (“SPE”), the World Petroleum Council (“WPC”), the American Association of Petroleum Geologists (“AAPG”), and the Society of Petroleum Evaluation Engineers (“SPEE”), and in accordance with international recognized standards, as stipulated


by the Israel Securities Authority (ISA). The reserves as presented herein were found to comply in all material respects with the definitions and guidelines set forth in the 2007 SPE-PRMS.

The oil reserves are presented in thousands of barrels, at stock tank conditions measured at standard conditions of 14.65 psi and 60 degrees Fahrenheit. The natural gas reserves are presented in millions of cubic feet, at base conditions of 14.65 psia and 60 degrees Fahrenheit. The condensate and natural gas liquids reserves are presented in thousands of barrels, at base conditions of 60 degrees Fahrenheit and equilibrium pressure. For barrels of oil equivalent (BOE) a conversion ratio of 6 Mcf:1 bbl was assumed, based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additional units and conversion factors are included in Appendix B.

The net present values of the reserves are presented in United States dollars and are based on annual projections of net revenue, which were discounted at various rates. These rates are 5, 10, 15 and 20 percent and undiscounted. For your reference the closing exchange rate on Friday December 29, 2017 was 3.4670 Israeli Shekels per United States Dollar, sourced from the historical exchange rate data from the Bank of Israel.

All historical production, revenue and expense data, product prices received, property descriptions, details of interests held, well data and other data that were obtained from the Company were accepted as represented, without any further investigation by Sproule. No investigation was made into either the legal titles held or any operating agreements in place relating to the subject properties. The Company provided their estimated operating, capital and abandonment and reclamation cost estimates, as well as historical cost statements. Sproule checked these for reasonableness and made adjustments where considered appropriate. The Company’s estimates were considered reasonable relative to other evaluations Sproule has conducted in the United Kingdom North Sea.

In the preparation of this report, a field inspection of the properties was not performed. The relevant geoscience and engineering data were made available by the Company or obtained from public sources and the non-confidential files at Sproule. No material information regarding the reserves evaluation would have been obtained by an on-site visit.

There was no investigation into environmental liability included in the scope of the report, and we are unaware of any environmental liabilities that would have a material effect on the reserves estimated in this report. No costs were included to account for any environmental liabilities.


Technically Recoverable Volumes and Production Forecasts

The technically recoverable oil and gas volumes were estimated using a combination of volumetrics, decline curve analysis, analogues, material balance and numerical simulation methods, depending on data available for each field and maturity of each field. In-place volumes were estimated using the net pay encountered at the wellbore and an assigned drainage area or, where sufficient well data was available, detailed geological models constructed using Schlumberger’s Petrel software. Reservoir rock and fluid property data were obtained from available core analyses, well logs, PVT data, gas analyses, and published information, either from the pool in question or from a similar reservoir producing from the same zone. Recovery factors for technically recoverable oil volumes were selected from the results of detailed analytical reservoir analyses, the results of detailed numerical reservoir analyses, or by comparing the reservoir under study with similar reservoirs that have more firmly established recovery factors from extended production histories.

The technically recoverable solution gas volumes were estimated based on historical and forecast producing gas-oil ratios and oil production or volumetric calculations. Similarly, the technically recoverable natural gas by-product volumes were based on historical and forecast recoveries and gas production.

Annual technically recoverable oil and gas production was forecast considering historical production trends of the Company’s producing wells, applicable regulatory conditions, existing or anticipated contract rates, and by comparison with other wells in the vicinity producing from similar reservoirs.

Economic Input Parameters

The economic parameters used in the Report were those obtained from the Company in field summary documents and those obtained during communications with Company personnel.

The operating costs, which were applied at the field level, included annual fixed field costs, tariffs and processing costs, and allocated platform costs, where applicable. Capital costs were scheduled based on development plans supplied by the Company and included cost for drilling, completion and tie-in of wells, workover operations, pipeline construction, and facility installation/modification. Costs were converted to United States dollars using the exchange rate included in Table 3.

The Company has an interest in the floating production unit, FPF-1, located at the Stella Field. The processing income from the facility, which forms a material portion of the economic calculations, was identified as “Additional Taxable Revenue” and “Additional Non-taxable Revenue” in Table 4. Further discussion of the processing income is provided in Appendix B.


Abandonment and reclamation costs represent all costs associated with the process of restoring a company’s properties, which have been disturbed by oil and gas activities, to a standard imposed by applicable government or regulatory authorities. Pursuant to guidance provided by regulatory agencies (such as the Alberta Securities Commission), the costs included in this report do not represent the total decommissioning liabilities of the Company but only those costs related to abandonment and reclamation of active wells and material dedicated facilities associated with the Company’s active oil and gas activities in a property. Abandonment and reclamation costs for existing wells with economic developed reserves, and future economic proposed development have been included in this report as prepared by the Company. No allowances for salvage were incorporated into the abandonment and reclamation costs contained in this report.

The price forecasts that formed the basis for the revenue projections in the evaluation were provided by the Company, with adjustments for quality estimated from historical revenue data. Table 3 presents a summary of selected forecasts.

Royalties and Fiscal Regime

The Stella and Harrier properties are subject to a third-party royalty for a portion of the revenue from the two fields. There are no other properties subject to royalties.

Further discussion of the petroleum fiscal regime applicable to the Company is provided in Appendix B.

Forward-Looking Statements

For greater clarity, we point out that the Report may contain forward-looking statements including expectations of future production revenues and capital expenditures. Information concerning reserves may also be deemed to be forward-looking as estimates involve the implied assessment that the reserves described can be profitably produced in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e., corporate commitment, regulatory approval, operational risks in development, exploration and production); potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimations; the uncertainty of estimates and projections relating to production; costs and expenses; health, safety and environmental factors; commodity prices; and exchange rate fluctuation.


Exclusivity

We confirm that the Report has been prepared for the exclusive use of Ithaca Energy Inc. It may not be reproduced, distributed or made available to any other company or person, regulatory body, or organization without the knowledge and written consent of Sproule, and without the complete contents of the Report being made available to that party.

Sproule Independence

Sproule is one of the world’s premier petroleum consulting and advisory firms, anchored by over 60 years of experience assisting companies with the evaluation of oil and gas reserves and resources, M&A related due diligence and reservoir studies.

Sproule’s integrated approach covers all subsurface disciplines coupled with a strong commercial understanding, which underpin our role as a trusted advisor to our clients.

In any given year Sproule completes approximately 600 projects for over 300 clients worldwide. Our staff is experienced in providing consulting services to clients with operations or assets in any country of the world. Sproule offers a full range of consulting services to the oil and gas industry and to clients ranging from financial organizations to government agencies.

The company is widely recognized for its expertise and independence in providing clients with reserve and resource assessments for conventional and/or unconventional oil and natural gas assets utilizing the guidance in NI 51-101, SEC, SPE-PRMS or other regulatory regimes. These assessments are often complemented by an economic evaluation of the future cash flows.

Sproule has been engaged to perform year end reserves evaluations for the Company since 2006, most recently for December 31, 2017. Sproule has no relationship with the Company, the Company’s senior management or Board of Directors or any of its subsidiaries that, to our knowledge, might be viewed as affecting our independence. Sproule has no interest, direct or indirect, nor do we expect to receive any interest, direct or indirect, in the properties described in this Report or in the securities of the Company.

In our opinion, we had access to all information we felt was relevant to perform the December 31, 2017 evaluation. The Company provided full and timely data. To the best of our knowledge, no potentially negative data was withheld or misrepresented.


Staff Qualifications

Sproule International Limited is a member of the Association of Professional Engineers and Geoscientists of Alberta and our permit number is P06151.

The report entitled “Evaluation of the Petroleum and Natural Gas Reserves of Ithaca Energy Inc. (As of December 31, 2017)”, was prepared by the following Sproule personnel:

Individual Designation Sproule Position

Years of Experience

(Years at Sproule)

Core Project Team Alec Kovaltchouk M.Sc., P.Geo. VP, Geoscience 34 (21)

Alexey G. Romanov Ph.D., P.Geo. Senior Geoscientist 16 (9)

Vladimir Torres Hernandez M.Sc., P.Geo. Senior Geoscientist 26 (12)

Suryanarayana Karri P.Geoph. Petrophysical Specialist 34 (11)

Vladimir Iglesias P.Eng. Manager, Latin America 21 (3)

Miles Hughes P.Eng. Manager, Strategic Advisory 18 (4)

Oluyemisi O. Jeje P.Eng. Senior Petroleum Engineer 17 (8)

Michael Owens P.Tech.(Eng.), P.L.(Eng.) Senior Technologist 30 (10)

Tamara Warren P.Eng. Petroleum Engineer 5 (4)

Jeffrey McKeeman P.Eng. Petroleum Engineer 5 (5)

Senior Advisory Scott W. Pennell P.Eng. Senior VP, Engineering and Director 24 (18)

The above are all qualified reserves estimators, as defined in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the SPE. Seven of the above are also qualified reserves auditors, as defined in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the SPE.

Oil Gas NGL and Cond. BOE% Mbbl MMcf Mbbl Mbbl

GSA FieldsHarrier 54.66 3,358 52,660 1,896 14,030 Austen 100.00 4,361 31,104 1,120 10,665 Stella 54.66 2,424 34,326 1,236 9,381 Vorlich 34.00 4,454 18,968 854 8,470 Hurricane 54.66 1,073 9,533 343 3,005

Non-GSA FieldsCook 61.35 8,879 13,950 - 11,204 Pierce 7.48 2,167 14,500 1,775 6,358 Wytch Farm 7.43 4,029 43 157 4,193 Don Southwest 40.00 2,099 - - 2,099 Don Northeast 40.00 951 - - 951 Ythan 40.00 618 - - 618 West Don 21.40 241 - - 241 Fionn 100.00 235 - - 235 Broom 8.00 165 - - 165 Conrie 40.00 103 - - 103 Wareham 7.50 18 0 1 19

Total, All Fields 35,174 175,083 7,381 71,736

Values may not or be consistent from one presentation to the next due to rounding.1. Company Gross means the Company's working interest share of the remaining reserves.

Before Income Tax

Table 1Summary of Remaining Reserves

Total Proved Plus Probable ReservesRanked by Reserves and Field by Group

(As of December 31, 2017)

Field/GroupWorking Interest

Company Gross Reserves1

Company Company Company Company

Gross Gross Gross Gross Gross Gross Gross Gross At 0% At 5% At 10% At 15% At 20%

GSA Fields - Before TaxTotal Proved 13,828 5,534 116,516 55,574 4,653 2,157 37,900 16,953 425,892 377,039 332,683 294,300 261,759 Total Probable 16,174 10,137 146,954 91,016 5,337 3,292 46,003 28,598 959,500 720,740 547,370 423,430 334,505 Total Proved + Probable 30,003 15,670 263,470 146,590 9,989 5,449 83,904 45,551 1,385,392 1,097,779 880,053 717,730 596,265 Total Possible 18,409 11,003 172,383 105,092 5,852 3,337 52,992 31,856 1,657,656 990,912 620,373 410,823 287,599 Total Proved + Probable + Possible 48,412 26,673 435,853 251,682 15,841 8,786 136,895 77,406 3,043,047 2,088,691 1,500,426 1,128,553 883,864

Non-GSA Fields Before TaxTotal Proved 55,517 7,653 88,635 9,944 12,734 952 83,023 10,262 58,573 83,884 95,458 100,122 101,202 Total Probable 55,247 11,851 128,481 18,549 13,116 981 89,777 15,923 672,500 513,226 394,960 308,592 244,844 Total Proved + Probable 110,764 19,504 217,116 28,493 25,849 1,933 172,799 26,185 731,075 597,110 490,418 408,714 346,046 Total Possible 62,151 11,058 125,761 15,119 11,232 839 94,343 14,418 779,794 514,424 365,069 276,557 220,145 Total Proved + Probable + Possible 172,915 30,562 342,878 43,612 37,081 2,772 267,142 40,602 1,510,867 1,111,535 855,487 685,271 566,191

Grand Total - Before TaxTotal Proved 69,345 13,186 205,151 65,518 17,386 3,108 120,923 27,214 484,465 460,924 428,140 394,422 362,961 Total Probable 71,422 21,988 275,435 109,565 18,452 4,273 135,779 44,521 1,632,000 1,233,966 942,331 732,022 579,349 Total Proved + Probable 140,767 35,174 480,586 175,083 35,839 7,381 256,702 71,736 2,116,465 1,694,889 1,370,471 1,126,445 942,311 Total Possible 80,560 22,061 298,145 120,211 17,084 4,177 147,334 46,273 2,437,450 1,505,337 985,442 687,379 507,744 Total Proved + Probable + Possible 221,326 57,235 778,731 295,294 52,922 11,558 404,037 118,008 4,553,915 3,200,226 2,355,913 1,813,824 1,450,055

Income TaxTotal Proved - - - - - - - - - - - - - Total Probable - - - - - - - - - - - - - Total Proved + Probable - - - - - - - - - - - - - Total Possible - - - - - - - - 562,690 314,425 175,244 99,627 58,132 Total Proved + Probable + Possible - - - - - - - - 562,690 314,425 175,244 99,627 58,132

Grand Total - After TaxTotal Proved 69,345 13,186 205,151 65,518 17,386 3,108 120,923 27,214 484,465 460,924 428,140 394,422 362,961 Total Probable 71,421 21,988 275,435 109,565 18,452 4,273 135,779 44,521 1,632,000 1,233,966 942,331 732,022 579,349 Total Proved + Probable 140,766 35,174 480,586 175,083 35,839 7,381 256,702 71,736 2,116,465 1,694,889 1,370,471 1,126,445 942,311 Total Possible 80,560 22,061 298,145 120,211 17,084 4,177 147,334 46,273 1,874,760 1,190,911 810,198 587,752 449,612 Total Proved + Probable + Possible 221,326 57,235 778,731 295,294 52,922 11,558 404,037 118,008 3,991,225 2,885,801 2,180,669 1,714,197 1,391,923

Values may not or be consistent from one presentation to the next due to rounding.Company Gross means the Company's working interest share of the remaining reserves, before deduction of royalties.Company Net volumes for oil, gas and condensate and natural gas liquids, which are not shown on this table, are equal to Company Gross volumes as there are no royalties to be applied to the volumes. Please refer to Appendix B for more detail. Income taxes are deducted from the Grand Total Before Tax values to arrive at the Grand Total After Tax values.


Table 2Summary of the Evaluation of the Petroleum and Natural Gas Reserves

by Group of Ithaca Energy Inc.Escalated Prices and Costs

Net Present ValuesBefore and After Income Taxes (M$ US)

At Various Discount Rates

Oil(Mbbl)

Solution, Associated and Non-Associated Gas

(MMcf)

Condensate and Natural Gas Liquids(Mbbl)

Total BOE (MBOE)

Table 3 Summary of Selected Pricing, Inflation and Exchange Rate Assumptions1

(Effective December 31, 2017)

Year

UK Brent

38oAPI(2,4)

($US/bbl)

IPE

Britain NBP(3,4,5)

($/MMBtu)

Operating

Cost

Inflation

Rate(6)

(%/Yr)

Capital Cost

Inflation

Rate(6)

(%/Yr)

Exchange

Rate(7)

($US/£UK)

Historical2014 99.51 8.39 1.0% 0.7% 1.65

2015 53.64 6.50 2.0% -1.0% 1.53

2016 45.04 4.73 1.8% -23.2% 1.36

2017 54.83 5.86 1.2% -3.4% 1.29

Forecast2018 59.22 5.90 0.0% 0.0% 1.35

2019 58.82 5.70 2.0% 2.0% 1.35

2020 67.23 5.80 2.0% 2.0% 1.35

2021 73.66 6.10 2.0% 2.0% 1.35

2022 77.91 6.60 2.0% 2.0% 1.35

2023 81.59 7.10 2.0% 2.0% 1.35

2024 82.98 7.70 2.0% 2.0% 1.35

2025 84.87 8.10 2.0% 2.0% 1.35

2026 86.83 8.30 2.0% 2.0% 1.35

2027 89.88 8.60 2.0% 2.0% 1.35

2028 93.20 8.90 2.0% 2.0% 1.35

2029 95.92 9.40 2.0% 2.0% 1.35

2030 98.39 9.70 2.0% 2.0% 1.35

2031 101.03 10.00 2.0% 2.0% 1.35

2032 104.72 10.40 2.0% 2.0% 1.35

2033 108.18 10.70 2.0% 2.0% 1.35

2034 112.43 10.90 2.0% 2.0% 1.35

2035 115.77 11.20 2.0% 2.0% 1.35

(1) UK Brent and IPE British NBP pricing forecasts above, were provided by the Company. The Company has advised that the price forecasts

are based on the average of a number price forecasts obtained from independent third party sources.

(2) 38 degrees API, 1.0 percent Sulphur.

(3) International Petroleum Exchange British National Balancing Point.

(4) Product sale prices will reflect these reference prices with further adjustments for quality and transportation to point of sale.

(5) IPE British NBP pricing forecast provided to 2040. Assumed constant thereafter.

(6) Inflation rates for forecasting costs.

(7) Exchange rates applied to convert input data to output currency.

Table 3, continued Summary of Selected Pricing and Exchange Rate Assumptions1

(Effective December 31, 2017)

Year

UK Brent

38oAPI(2,4)

($US/bbl)

IPE

Britain NBP(3,4,5)

($/MMBtu)

Operating

Cost

Inflation

Rate(6)

(%/Yr)

Capital Cost

Inflation

Rate(6)

(%/Yr)

Exchange

Rate(6)

($US/£UK)

2036 118.08 11.40 2.0% 2.0% 1.35

2037 120.44 11.60 2.0% 2.0% 1.35

2038 122.85 11.90 2.0% 2.0% 1.35

2039 125.31 12.10 2.0% 2.0% 1.35

2040 127.82 12.30 2.0% 2.0% 1.35

2041 130.37 12.30 2.0% 2.0% 1.35

2042 132.98 12.30 2.0% 2.0% 1.35

2043 135.64 12.30 2.0% 2.0% 1.35

2044 138.35 12.30 2.0% 2.0% 1.35

2045 141.12 12.30 2.0% 2.0% 1.35

2046 143.94 12.30 2.0% 2.0% 1.35

2047 146.82 12.30 2.0% 2.0% 1.35

2048 149.76 12.30 2.0% 2.0% 1.35

2049 152.75 12.30 2.0% 2.0% 1.35

2050 155.81 12.30 2.0% 2.0% 1.35

(1) UK Brent and IPE British NBP pricing forecasts above, were provided by the Company. The Company has advised that the price forecasts

are based on the average of a number price forecasts obtained from independent third party sources.

(2) 38 degrees API, 1.0 percent Sulphur.

(3) International Petroleum Exchange British National Balancing Point.

(4) Product sale prices will reflect these reference prices with further adjustments for quality and transportation to point of sale.

(5) IPE British NBP pricing forecast provided to 2040. Assumed constant thereafter.

(6) Inflation rates for forecasting costs.

(7) Exchange rates applied to convert input data to output currency.

Ithaca Energy Inc.As of December 31, 2017

Total Proved + Probable + Possible Total, All Fields

Evaluation ParametersReserves Category Total Proved + Prob. + Poss.PlanReference DateDiscount Date

CountryStateCompany SharePrice DeckPrice SetEconomic LimitScenarioBOE RatioChance of Success

WorkingJanuary-01-18January-01-18

United KingdomN/A29.2 %SIL as of December 31, 2017 N/AN/AReserves6:1 Mcf/bbl100.0 %

Chance of Occurrence 100.0 %Oil Reserves Type Light and Medium OilGas Reserves Type <multiple>

Remaining Reserves Net Revenue NPV (MM$US)Gross WI RI Net 0.00 % 5.00 % 10.00 % 15.00 % 20.00 %

Total MBOE 404,037 118,008 - 118,008 8,298.1 5,423.4 3,875.1 2,956.4 2,367.2

Cash Flow NPV (M$US)

BT Cash Flow 4,553,915 3,200,226 2,355,913 1,813,824 1,450,055Tax Payable 562,690 314,425 175,244 99,627 58,132AT Cash Flow 3,991,225 2,885,801 2,180,669 1,714,197 1,391,923

Cash Flow (MM$US)

Economic Indicators (Comp. WI)

Co. Share

Revenue 8,298.164.3

3,252.7365.7695.2756.8

Royalties (Stella, Harrier)

Operating Cost Abandonment/Salvage Oth. Rev./Oth. Deduct. Capital (Credit)/Surcharge -

BT Cash Flow 4,553.9

WI

Tax Paid 562.7

27.56

AT Cash Flow 3,991.2

6.41

Annual Company Share Cash Flow

Year Rate Comp Sales

Revenue Royalty

GOR(non

Reserve)

RevenueAfter

Royalty

AdditionalTaxable

Revenue

AdditionalNon-

TaxableRevenue

Otherexpenses Opex Capex Aband

BTaxCash Flow Total Taxes

ATaxCash Flow

BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US2018 19,307 352,488 - 4,733 347,755 - 35,932 - 147,866 95,180 - 140,641 - 140,6412019 22,404 403,356 - 5,057 398,299 - 40,454 - 151,840 71,891 - 215,022 - 215,0222020 25,078 521,023 - 3,599 517,424 12,521 38,481 - 146,788 106,128 - 315,512 - 315,5122021 23,353 535,182 - 2,078 533,104 17,855 30,802 - 135,868 2,143 - 443,749 - 443,7492022 21,888 530,982 - 4,771 526,211 11,967 39,800 - 146,873 3,784 - 427,321 - 427,3212023 20,439 501,744 - 5,249 496,496 8,406 39,709 - 146,156 28,987 - 369,468 - 369,4682024 18,540 459,801 - 5,570 454,231 5,902 39,666 - 145,023 7,909 - 346,867 - 346,8672025 17,298 431,395 - 5,768 425,627 4,104 39,928 - 147,018 182,017 3,194 137,431 - 137,4312026 16,941 431,564 - 4,718 426,847 2,887 42,171 - 153,458 2,366 9,588 306,492 - 306,4922027 15,988 410,749 - 3,402 407,346 2,473 42,578 - 133,754 220,219 8,664 89,760 3,606 86,1552028 22,062 607,837 - 2,659 605,178 10,852 35,480 - 170,726 2,462 17,075 461,246 86,956 374,2902029 18,546 521,066 - 2,260 518,806 9,394 25,987 - 158,593 2,511 37,801 355,281 117,697 237,5842030 13,912 395,426 - 1,939 393,487 6,738 19,817 - 140,418 2,561 23,134 253,929 99,883 154,0462031 11,044 318,740 - 1,604 317,136 5,161 15,641 - 129,112 2,613 - 206,214 81,872 124,3422032 9,223 275,778 - 1,479 274,300 4,104 13,485 - 122,462 2,665 - 166,763 66,118 100,6452033 7,703 235,545 - 1,354 234,191 3,326 11,126 - 114,627 2,718 - 131,297 52,313 78,9832034 6,591 208,194 - 1,180 207,015 2,755 9,630 - 110,966 2,772 - 105,660 41,458 64,2022035 5,754 187,609 - 1,052 186,557 2,328 8,525 - 108,562 2,828 - 86,020 33,293 52,7262036 5,172 172,858 - 1,000 171,857 1,999 7,997 - 107,331 2,884 - 71,638 27,124 44,5142037 4,706 160,290 - 957 159,332 1,726 7,567 - 106,520 2,942 - 59,163 22,062 37,1022038 4,305 149,845 - 915 148,930 1,510 7,190 - 106,104 3,001 - 48,525 17,716 30,8102039 3,944 140,249 - 870 139,380 1,332 6,832 - 105,987 3,061 - 38,496 13,765 24,7312040 3,604 131,072 - 830 130,242 1,187 6,530 - 106,191 3,122 - 28,646 9,925 18,7202041 2,540 95,475 - 788 94,687 1,058 6,225 - 93,157 - - 8,813 3,574 5,2392042 1,680 66,718 - 442 66,276 567 3,509 - 67,627 - 5,847 -3,121 -1,423 -1,6982043 304 14,604 - - 14,604 - - - 13,043 - 14,910 -13,349 -4,621 -8,729

Table 4-Total

0.00 % 5.00 % 10.00 % 15.00 % 20.00 %

Op. Cost ($US/BOE) Cap. Cost ($US/BOE)


Total Proved + Probable + Possible Total, All Fields

2044 256 12,674 - - 12,674 - - - 11,571 - 42,338 -41,235 -13,397 -27,8382045 247 12,442 - - 12,442 - - - 11,813 - 91,479 -90,850 -31,624 -59,2272046 238 12,260 - - 12,260 - - - 12,059 - 69,135 -68,934 -35,367 -33,5672047 21 1,098 - - 1,098 - - - 1,077 - 10,589 -10,568 -14,037 3,4692048 1 58 - - 58 - - - 58 - - 1 -1,409 1,4102049 (1) 1 5 - - 5 - - - 5 - 5,599 -5,599 -12,795 7,1962050 - - - - - - - - - - 14,277 -14,277 - -14,2772051 - - - - - - - - - - 9,397 -9,397 - -9,3972052 - - - - - - - - - - 1,682 -1,682 - -1,6822053 - - - - - - - - - - 1,029 -1,029 - -1,02931.08 yr 8,298,129 - 64,274 8,233,855 120,155 575,064 - 3,252,655 756,765 365,739 4,553,915 562,690 3,991,225

Year RateComp Sales

Revenue Royalty

GOR(non

Reserve)

RevenueAfter

Royalty

AdditionalTaxable

Revenue

AdditionalNon-

TaxableRevenue



ATaxCash Flow

BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US

Table 4-Total

As requested by the Company, the abandonment and reclamation costs were applied starting 2 years after the cessation of production, over a 3 year period. For the year immediately following the cessation of production, all cashflow values (revenue, costs, etc) are therefore zero. The software which generated the economic output automatically hides rows that contain no values.

Ithaca Energy Inc.As of December 31, 2017 Total Proved + Probable Total, All Fields

Evaluation ParametersReserves Category Total Proved + ProbablePlanReference DateDiscount Date






Total MBOE 256,702 71,736 - 71,736 4,573.7 3,439.6 2,702.5 2,198.5 1,839.1


BT Cash Flow 2,116,465 1,694,889 1,370,471 1,126,445 942,311Tax Payable - - - - -AT Cash Flow 2,116,465 1,694,889 1,370,471 1,126,445 942,311

Cash Flow (MM$US)Co. Share

Revenue 4,573.732.4

1,861.4308.0397.3652.7




WI

Tax Paid -

25.95

AT Cash Flow 2,116.5

9.10



Revenue Royalty

GOR(non

Reserve)

RevenueAfter

Royalty

AdditionalTaxable

Revenue

AdditionalNon-

TaxableRevenue



ATaxCash Flow

BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US2018 17,822 324,506 - 4,395 320,112 - 33,615 - 143,649 95,180 - 114,898 - 114,8982019 19,396 345,911 - 4,624 341,287 - 37,369 - 143,815 71,891 - 162,950 - 162,9502020 20,828 424,862 - 3,426 421,436 10,375 35,576 - 138,665 106,128 - 222,595 - 222,5952021 19,567 436,007 - 1,978 434,029 16,226 28,895 - 129,396 2,143 - 347,611 - 347,6112022 18,099 423,683 - 3,778 419,905 10,026 35,045 - 134,962 110,814 - 219,200 - 219,2002023 18,266 435,712 - 3,124 432,589 6,128 39,026 - 143,076 230,206 3,070 101,389 - 101,3892024 20,537 508,711 - 2,435 506,276 10,171 32,154 - 143,551 2,274 7,830 394,946 - 394,9462025 15,948 400,642 - 1,898 398,744 7,996 21,829 - 128,070 2,320 20,107 278,071 - 278,0712026 11,364 289,455 - 1,529 287,926 5,036 15,794 - 111,088 2,366 39,032 156,270 - 156,2702027 8,189 214,334 - 1,211 213,122 2,500 11,275 - 101,338 2,414 23,874 99,271 - 99,2712028 6,322 170,897 - 1,050 169,847 1,836 8,542 - 94,148 2,462 - 83,615 - 83,6152029 5,124 143,409 - 884 142,525 1,392 7,081 - 90,745 2,511 - 57,742 - 57,7422030 4,271 123,300 - 759 122,541 1,090 6,078 - 88,690 2,561 - 38,458 - 38,4582031 3,693 109,253 - 704 108,549 873 5,604 - 87,655 2,613 - 24,759 - 24,7592032 3,158 97,052 - 635 96,416 715 5,060 - 87,068 2,665 - 12,458 - 12,4582033 1,239 41,096 - - 41,096 - - - 31,684 2,718 - 6,694 - 6,6942034 857 28,450 - - 28,450 - - - 20,824 2,772 25,889 -21,036 - -21,0362035 739 25,087 - - 25,087 - - - 19,537 2,828 71,583 -68,861 - -68,8612036 502 16,002 - - 16,002 - - - 11,630 2,884 54,596 -53,109 - -53,1092037 472 15,304 - - 15,304 - - - 11,807 2,942 13,101 -12,547 - -12,5472038 - - - - - - - - - - 11,767 -11,767 - -11,7672039 - - - - - - - - - - 13,699 -13,699 - -13,6992040 - - - - - - - - - - 14,846 -14,846 - -14,8462041 - - - - - - - - - - 8,599 -8,599 - -8,59920.00 yr 4,573,672 - 32,430 4,541,242 74,365 322,943 - 1,861,396 652,694 307,995 2,116,465 - 2,116,465

Table 4-Total



0.00 % 5.00 % 10.00 % 15.00 % 20.00 %


Total ProvedTotal, All Fields

Evaluation ParametersTotal ProvedReserves Category

PlanReference Date Discount Date






Total MBOE 120,923 27,214 - 27,214 1,541.9 1,310.8 1,137.6 1,004.2 899.0


BT Cash Flow 484,465 460,924 428,140 394,422 362,961Tax Payable - - - - -AT Cash Flow 484,465 460,924 428,140 394,422 362,961


Revenue 1,541.913.2

766.4217.7173.2233.3



BT Cash Flow 484.5

WI

Tax Paid -

28.16

AT Cash Flow 484.5

8.57



Revenue Royalty

GOR(non

Reserve)

RevenueAfter

Royalty

AdditionalTaxable

Revenue

AdditionalNon-

TaxableRevenue



ATaxCash Flow

BOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US2018 16,514 301,045 - 3,909 297,136 - 30,006 - 137,378 46,394 - 143,369 - 143,3692019 12,029 213,782 - 2,728 211,054 - 22,503 - 114,076 33,337 - 86,143 - 86,1432020 11,708 239,299 - 1,789 237,510 7,733 21,210 - 109,077 105,921 - 51,455 - 51,4552021 11,581 252,613 - 1,348 251,265 12,875 21,701 - 103,716 2,143 - 179,983 - 179,9832022 6,847 154,564 - 1,041 153,523 7,535 14,443 - 69,862 2,186 3,010 100,443 - 100,4432023 5,212 120,239 - 804 119,435 4,422 9,909 - 54,851 28,987 20,743 29,186 - 29,1862024 3,819 91,080 - 667 90,414 2,661 7,217 - 51,413 2,274 41,909 4,695 - 4,6952025 2,969 71,967 - 589 71,378 1,646 5,724 - 50,259 2,320 31,098 -4,928 - -4,9282026 1,842 45,949 - 306 45,643 587 3,014 - 38,814 2,366 6,986 1,077 - 1,0772027 897 23,458 - - 23,458 - - - 16,819 2,414 - 4,225 - 4,2252028 588 14,729 - - 14,729 - - - 10,041 2,462 13,392 -11,165 - -11,1652029 509 13,179 - - 13,179 - - - 10,126 2,511 37,917 -37,375 - -37,3752030 - - - - - - - - - - 30,943 -30,943 - -30,9432031 - - - - - - - - - - 11,692 -11,692 - -11,6922032 - - - - - - - - - - 12,671 -12,671 - -12,6712033 - - - - - - - - - - 7,339 -7,339 - -7,33912.00 yr 1,541,905 - 13,180 1,528,724 37,461 135,725 - 766,431 233,316 217,700 484,465 - 484,465

Table 4-Total



0.00 % 5.00 % 10.00 % 15.00 % 20.00 %

Ithaca Energy Inc.GSA

As of December 31, 2017Total Proved + Prob. + Poss.

GSA Fields




United KingdomN/A56.5 %SIL as of December 31, 2017 N/ANot AppliedReserves6:1 Mcf/bbl100.0 %


Remaining Reserves Net Revenue NPV (MM$US)

Total MBOE 136,895 77,406 - 77,406 5,220.1 3,362.6 2,350.7 1,751.4 1,371.2


BT Cash Flow 3,043,048 2,088,691 1,500,426 1,128,553 883,864


Revenue 5,220.164.3

2,043.5169.7695.2594.8




WI26.40

7.68



Revenue RoyaltyGOR (nonReserve)

RevenueAfter Royalty

AdditionalTaxable

Revenue

AdditionalNon-Taxable

RevenueOther

expenses Opex Capex AbandBTax

Cash FlowBOE/d M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US M$US

2018 11,023 184,882 - 4,733 180,149 - 35,932 - 76,429 33,874 - 105,7792019 12,105 197,549 - 5,057 192,492 - 40,454 - 83,386 54,432 - 95,1292020 13,878 270,524 - 3,599 266,926 12,521 38,481 - 82,956 101,717 - 133,2562021 12,623 270,132 - 2,078 268,053 17,855 30,802 - 73,894 - - 242,8162022 13,730 313,214 - 4,771 308,444 11,967 39,800 - 86,325 1,597 - 272,2882023 12,725 295,623 - 5,249 290,374 8,406 39,709 - 85,976 - - 252,5132024 12,024 282,136 - 5,570 276,565 5,902 39,666 - 86,552 5,634 - 229,9472025 11,636 274,347 - 5,768 268,579 4,104 39,928 - 88,529 179,697 - 44,3862026 11,921 289,614 - 4,718 284,897 2,887 42,171 - 94,594 - - 235,3612027 12,202 302,817 - 3,402 299,415 2,473 42,578 - 99,927 217,805 - 26,7342028 18,596 505,422 - 2,659 502,762 10,852 35,480 - 136,283 - - 412,8112029 15,345 423,975 - 2,260 421,715 9,394 25,987 - 123,524 - - 333,5722030 10,935 302,925 - 1,939 300,986 6,738 19,817 - 104,703 - - 222,8382031 8,262 230,233 - 1,604 228,629 5,161 15,641 - 92,734 - - 156,6972032 6,634 190,409 - 1,479 188,931 4,104 13,485 - 85,389 - - 121,1322033 5,289 153,848 - 1,354 152,494 3,326 11,126 - 76,845 - - 90,1012034 4,311 128,462 - 1,180 127,282 2,755 9,630 - 72,472 - - 67,1952035 3,589 109,867 - 1,052 108,815 2,328 8,525 - 69,343 - - 50,3252036 3,118 97,462 - 1,000 96,461 1,999 7,997 - 67,384 - - 39,0742037 2,749 87,286 - 957 86,329 1,726 7,567 - 65,820 - - 29,8022038 2,439 78,935 - 915 78,020 1,510 7,190 - 64,632 - - 22,0882039 2,172 71,684 - 870 70,814 1,332 6,832 - 63,728 - - 15,2492040 1,945 65,710 - 830 64,880 1,187 6,530 - 63,095 - - 9,5032041 1,749 60,157 - 788 59,370 1,058 6,225 - 62,570 - - 4,0842042 (7) 1,612 32,882 - 442 32,441 567 3,509 - 36,410 - - 1072044 - - - - - - - - - - 33,213 -33,2132045 - - - - - - - - - - 84,694 -84,6942046 - - - - - - - - - - 51,833 -51,833

Table 4-GSA Fields

0.00 % 5.00 % 10.00 % 15.00 % 20.00 %Gross WI RI Net



0.00 % 5.00 % 10.00 % 15.00 % 20.00 %

24.58 yr 5,220,098 - 64,274 5,155,824 120,155 575,064 - 2,043,498 594,756 169,740 3,043,048


As of December 31, 2017Total Proved + Probable

GSA Fields




United KingdomN/A54.3 %SIL as of December 31, 2017 N/ANot AppliedReserves6:1 Mcf/bbl100.0 %



Total MBOE 83,904 45,551 - 45,551 2,745.4 2,077.6 1,630.2 1,318.6 1,094.1


BT Cash Flow 1,385,392 1,097,779 880,053 717,730 596,265


Revenue 2,745.432.4

1,092.7132.3397.3499.9




WI23.9910.97





AdditionalTaxable

Revenue


RevenueOther



2018 10,319 171,664 - 4,395 167,269 - 33,615 - 73,107 33,874 - 93,9052019 11,187 180,616 - 4,624 175,992 - 37,369 - 78,972 54,432 - 79,9582020 12,632 240,150 - 3,426 236,724 10,375 35,576 - 78,394 101,717 - 102,5652021 11,776 246,502 - 1,978 244,523 16,226 28,895 - 70,746 - - 218,8982022 12,065 264,509 - 3,778 260,731 10,026 35,045 - 79,600 108,628 - 117,5752023 12,293 277,878 - 3,124 274,754 6,128 39,026 - 87,233 201,219 - 31,4562024 16,211 394,218 - 2,435 391,783 10,171 32,154 - 111,574 - - 322,5352025 12,213 299,963 - 1,898 298,065 7,996 21,829 - 95,598 - - 232,2922026 8,105 199,846 - 1,529 198,317 5,036 15,794 - 78,090 - - 141,0582027 5,330 133,283 - 1,211 132,071 2,500 11,275 - 67,786 - - 78,0612028 3,822 97,566 - 1,050 96,516 1,836 8,542 - 60,009 - - 46,8862029 2,922 77,136 - 884 76,252 1,392 7,081 - 56,020 - - 28,7052030 2,302 62,559 - 759 61,799 1,090 6,078 - 53,365 - - 15,6022031 1,928 53,496 - 704 52,792 873 5,604 - 51,717 - - 7,5532032 1,595 45,976 - 635 45,341 715 5,060 - 50,461 - - 6542034 - - - - - - - - - - 25,889 -25,8892035 - - - - - - - - - - 66,017 -66,0172036 - - - - - - - - - - 40,403 -40,40315.00 yr 2,745,362 - 32,430 2,712,932 74,365 322,943 - 1,092,671 499,869 132,309 1,385,392

Table 4-GSA Fields

Gross WI RI Net

0.00 % 5.00 % 10.00 % 15.00 % 20.00 %Economic Indicators (Comp. WI)


0.00 % 5.00 % 10.00 % 15.00 % 20.00 %


As of December 31, 2017Total ProvedGSA Fields








Total MBOE 37,900 16,953 - 16,953 903.3 770.2 667.8 587.4 523.2


BT Cash Flow 425,892 377,039 332,682 294,300 261,759


Revenue 903.313.2

409.168.4

173.2159.9



BT Cash Flow 425.9

WI24.13

9.43





AdditionalTaxable

Revenue


RevenueOther



2018 9,220 152,695 - 3,909 148,786 - 30,006 - 67,878 33,874 - 77,0402019 6,719 106,566 - 2,728 103,838 - 22,503 - 57,251 24,325 - 44,7652020 7,766 148,060 - 1,789 146,271 7,733 21,210 - 55,180 101,717 - 18,3172021 8,924 185,586 - 1,348 184,238 12,875 21,701 - 58,126 - - 160,6892022 5,527 119,437 - 1,041 118,395 7,535 14,443 - 45,373 - - 95,0012023 3,456 78,053 - 804 77,249 4,422 9,909 - 37,692 - - 53,8892024 2,329 54,258 - 667 53,591 2,661 7,217 - 34,026 - - 29,4422025 1,719 40,530 - 589 39,941 1,646 5,724 - 32,635 - - 14,6772026 (8) 1,138 18,134 - 306 17,828 587 3,014 - 20,915 - - 5142028 - - - - - - - - - - 13,392 -13,3922029 - - - - - - - - - - 34,149 -34,1492030 - - - - - - - - - - 20,899 -20,8998.67 yr 903,319 - 13,180 890,138 37,461 135,725 - 409,076 159,915 68,441 425,892

Table 4-GSA Fields

0.00 % 5.00 % 10.00 % 15.00 % 20.00 %



Ithaca Energy Inc.Non-GSA Fields


Non-GSA Fields





Chance of Occurrence 100.0 %Oil Reserves Type Light and Medium OilGas Reserves Type Solution Gas


Total MBOE 267,142 40,602 - 40,602 3,078.0 2,060.8 1,524.5 1,205.0 996.0


BT Cash Flow 1,510,867 1,111,535 855,487 685,271 566,191


Revenue 3,078.0-

1,209.2196.0

-162.0

RoyaltiesOperating Cost Abandonment/Salvage Oth. Rev./Oth. Deduct. Capital(Credit)/Surcharge -


WI29.78

3.99





AdditionalTaxable

Revenue


RevenueOther



2018 8,284 167,606 - - 167,606 - - - 71,437 61,306 - 34,8622019 10,299 205,807 - - 205,807 - - - 68,454 17,460 - 119,8942020 11,199 250,499 - - 250,499 - - - 63,832 4,411 - 182,2562021 10,730 265,051 - - 265,051 - - - 61,974 2,143 - 200,9332022 8,158 217,768 - - 217,768 - - - 60,549 2,186 - 155,0332023 7,715 206,121 - - 206,121 - - - 60,180 28,987 - 116,9542024 6,516 177,665 - - 177,665 - - - 58,472 2,274 - 116,9192025 5,662 157,048 - - 157,048 - - - 58,489 2,320 3,194 93,0452026 5,019 141,950 - - 141,950 - - - 58,864 2,366 9,588 71,1312027 3,786 107,931 - - 107,931 - - - 33,828 2,414 8,664 63,0262028 3,467 102,416 - - 102,416 - - - 34,443 2,462 17,075 48,4352029 3,201 97,091 - - 97,091 - - - 35,069 2,511 37,801 21,7102030 2,976 92,501 - - 92,501 - - - 35,715 2,561 23,134 31,0912031 2,782 88,507 - - 88,507 - - - 36,378 2,613 - 49,5172032 2,589 85,369 - - 85,369 - - - 37,073 2,665 - 45,6312033 2,415 81,697 - - 81,697 - - - 37,783 2,718 - 41,1962034 2,281 79,732 - - 79,732 - - - 38,495 2,772 - 38,4652035 2,164 77,742 - - 77,742 - - - 39,219 2,828 - 35,6952036 2,054 75,396 - - 75,396 - - - 39,947 2,884 - 32,5642037 1,958 73,003 - - 73,003 - - - 40,700 2,942 - 29,3612038 1,867 70,911 - - 70,911 - - - 41,472 3,001 - 26,4372039 1,772 68,566 - - 68,566 - - - 42,258 3,061 - 23,2462040 1,659 65,361 - - 65,361 - - - 43,096 3,122 - 19,1432041 792 35,317 - - 35,317 - - - 30,588 - - 4,7302042 744 33,836 - - 33,836 - - - 31,216 - 5,847 -3,2282043 304 14,604 - - 14,604 - - - 13,043 - 14,910 -13,3492044 256 12,674 - - 12,674 - - - 11,571 - 9,125 -8,0212045 247 12,442 - - 12,442 - - - 11,813 - 6,785 -6,157

Table 4-Non-GSA Fields

0.00 % 5.00 % 10.00 % 15.00 % 20.00 %





Non-GSA Fields

2046 238 12,260 - - 12,260 - - - 12,059 - 17,302 -17,1022047 21 1,098 - - 1,098 - - - 1,077 - 10,589 -10,5682048 1 58 - - 58 - - - 58 - - 12049 (1) 1 5 - - 5 - - - 5 - 5,599 -5,5992050 - - - - - - - - - - 14,277 -14,2772051 - - - - - - - - - - 9,397 -9,3972052 - - - - - - - - - - 1,682 -1,6822053 - - - - - - - - - - 1,029 -1,02931.08 yr 3,078,032 - - 3,078,032 - - - 1,209,156 162,009 195,999 1,510,867




AdditionalTaxable

Revenue


RevenueOther





As of December 31, 2017Total Proved + Probable

Non-GSA Fields







Total MBOE 172,799 26,185 - 26,185 1,828.3 1,362.0 1,072.3 879.9 744.9


BT Cash Flow 731,073 597,110 490,418 408,714 346,046


Revenue 1,828.3-

768.7175.7

-152.8


BT Cash Flow 731.1

WI29.36

5.84





AdditionalTaxable

Revenue


RevenueOther



2018 7,503 152,842 - - 152,842 - - - 70,542 61,306 - 20,9942019 8,209 165,295 - - 165,295 - - - 64,843 17,460 - 82,9922020 8,196 184,711 - - 184,711 - - - 60,270 4,411 - 120,0302021 7,791 189,506 - - 189,506 - - - 58,650 2,143 - 128,7132022 6,033 159,174 - - 159,174 - - - 55,362 2,186 - 101,6252023 5,973 157,834 - - 157,834 - - - 55,843 28,987 3,070 69,9342024 4,325 114,492 - - 114,492 - - - 31,978 2,274 7,830 72,4112025 3,735 100,678 - - 100,678 - - - 32,471 2,320 20,107 45,7802026 3,259 89,609 - - 89,609 - - - 32,998 2,366 39,032 15,2132027 2,859 81,051 - - 81,051 - - - 33,553 2,414 23,874 21,2102028 2,499 73,331 - - 73,331 - - - 34,139 2,462 - 36,7302029 2,202 66,273 - - 66,273 - - - 34,725 2,511 - 29,0372030 1,969 60,741 - - 60,741 - - - 35,324 2,561 - 22,8562031 1,765 55,757 - - 55,757 - - - 35,938 2,613 - 17,2072032 1,563 51,076 - - 51,076 - - - 36,607 2,665 - 11,8042033 1,239 41,096 - - 41,096 - - - 31,684 2,718 - 6,6942034 857 28,450 - - 28,450 - - - 20,824 2,772 - 4,8532035 739 25,087 - - 25,087 - - - 19,537 2,828 5,566 -2,8442036 502 16,002 - - 16,002 - - - 11,630 2,884 14,194 -12,7062037 472 15,304 - - 15,304 - - - 11,807 2,942 13,101 -12,5472038 - - - - - - - - - - 11,767 -11,7672039 - - - - - - - - - - 13,699 -13,6992040 - - - - - - - - - - 14,846 -14,8462041 - - - - - - - - - - 8,599 -8,59920.00 yr 1,828,309 - - 1,828,309 - - - 768,725 152,825 175,686 731,073


Gross WI RI Net 0.00 % 5.00 % 10.00 % 15.00 % 20.00 %




As of December 31, 2017Total Proved

Non-GSA Fields








Total MBOE 83,023 10,262 - 10,262 638.6 540.7 469.8 416.8 375.9


BT Cash Flow 58,573 83,884 95,458 100,122 101,202


Revenue 638.6-

357.4149.3

-73.4


BT Cash Flow 58.6

WI34.82

7.15





AdditionalTaxable

Revenue


RevenueOther



2018 7,294 148,350 - - 148,350 - - - 69,500 12,520 - 66,3302019 5,310 107,216 - - 107,216 - - - 56,824 9,012 - 41,3792020 3,942 91,239 - - 91,239 - - - 53,897 4,204 - 33,1382021 2,657 67,027 - - 67,027 - - - 45,590 2,143 - 19,2942022 1,319 35,128 - - 35,128 - - - 24,489 2,186 3,010 5,4432023 1,756 42,186 - - 42,186 - - - 17,159 28,987 20,743 -24,7032024 1,491 36,823 - - 36,823 - - - 17,387 2,274 41,909 -24,7472025 1,250 31,437 - - 31,437 - - - 17,624 2,320 31,098 -19,6052026 1,085 27,815 - - 27,815 - - - 17,899 2,366 6,986 5632027 897 23,458 - - 23,458 - - - 16,819 2,414 - 4,2252028 588 14,729 - - 14,729 - - - 10,041 2,462 - 2,2272029 509 13,179 - - 13,179 - - - 10,126 2,511 3,768 -3,2262030 - - - - - - - - - - 10,043 -10,0432031 - - - - - - - - - - 11,692 -11,6922032 - - - - - - - - - - 12,671 -12,6712033 - - - - - - - - - - 7,339 -7,33912.00 yr 638,586 - - 638,586 - - - 357,355 73,400 149,259 58,573


Gross WI RI Net 0.00 % 5.00 % 10.00 % 15.00 % 20.00 %



MBOE $US/BOE $US/BOE $US/BOE $US/BOE Percent

2017 5,077 47.13 0.50 22.93 23.70 7.12016 3,407 41.09 0.00 22.96 18.13 6.42015 4,404 51.91 0.00 26.35 25.56 6.32014 3,996 93.82 0.00 55.26 38.56 6.9

1- The production, price and cost estimates shown above were provided by Ithaca Energy Inc. The estimates are based on historical data as of January 1, 2014 and include oil, gas, condensate data.

2- The GSA fields, excluding Stella, were not yet on commercial production as of December 31, 2017. Therefore the above table only includes Stella and the Non-GSA fields.

3- The 2015 value presented in the table excludes onerous contracts related to fields with no reserves assigned. The value including the effect of those contracts is 32.67 $US/BOE.

4- The reserves depletion rate is the quotient of the Company working interest production for a given year and the Sproule estimates of the proved plus probable reserves for the beginning of that year.

Average Net Revenue Per

Production UnitReserves

Depletion Rate4

Table 5Summary of Historical Production, Unit Cost and Revenue Data1

Stella and Other Non-GSA Fields2


Year

Company Working Interest

Production

Average Price Received Per

Production Unit

Average Royalties Paid Per

Production Unit

Average Production Costs Per Production

Unit3

Appendix A — Page 1

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Appendix A — Abbreviations, Units and Conversion Factors

This appendix contains a list of abbreviations found in Sproule reports, a table comparing Imperial and Metric units, and conversion tables used to prepare this report.

Abbreviations

A&R abandonment and reclamation AFE authority for expenditure AOF absolute open flow APO after pay out Bg gas formation volume factor Bo oil formation volume factor BOE barrels of oil equivalent bpd barrels per day bopd barrels of oil per day boepd barrels of oil equivalent per day bfpd barrels of fluid per day BPO before pay out BS&W basic sediment and water BTU British thermal unit bwpd barrels of water per day CF casing flange CGR condensate-gas ratio D&A dry and abandoned DCQ daily contract quantity DPIIP discovered petroleum initially-in-place DSU drilling spacing unit DST drill stem test EOR enhanced oil recovery EPSA exploration and production sharing agreement FPSO floating production, storage and off-loading vessel FVF formation volume factor g/cc gram per cubic centimetre GIIP gas initially-in-place GOR gas-oil ratio GORR gross overriding royalty GRV gross rock volume GWC gas-water contact HCPV hydrocarbon pore volume ID inside diameter IOR improved oil recovery


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IPR inflow performance relationship IRR internal rate of return k permeability KB kelly bushing LKH lowest known hydrocarbons LKO lowest known oil LNG liquefied natural gas LPG liquefied petroleum gas McfGE thousands of cubic feet of gas equivalent Mcfpd thousands of cubic feet per day md millidarcies MDT modular formation dynamics tester MPR maximum permissive rate MRL maximum rate limitation NCI net carried interest NGL natural gas liquids NORR net overriding royalty NPI net profits interest NRA no reserves assigned NRI net revenue interest NPV net present value NRV net rock volume NTG net-to-gross OD outside diameter OGIP original gas in place OIIP oil initially-in-place OOIP original oil in place ORRI overriding royalty interest OWC oil-water contact P1 proved P2 probable P3 possible P&NG petroleum and natural gas PI productivity index ppm parts per million PSU production spacing unit PSA production sharing agreement PSC production sharing contract PVT pressure-volume-temperature RFT repeat formation tester RT rotary table SCAL special core analysis


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SS subsea TPIIP total petroleum initially-in-place TVD true vertical depth UPIIP undiscovered petroleum initially-in-place WGR water-gas ratio WI working interest WOR water-oil ratio 2D two-dimensional 3D three-dimensional 4D four-dimensional 1P proved 2P proved plus probable 3P proved plus probable plus possible oAPI degrees API (American Petroleum Institute)


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Imperial and Metric Units

Imperial Units Metric Units

M (103) thousand Prefixes k (103) kilo

MM (106) million M (106) mega

B (109) billion G (109) giga

T (1012) trillion T (1012) tera

Q (1015) quadrillion P (1015) peta

in. inches Length cm centimetres

ft feet m metres

mi miles km kilometres

ft2 square feet Area m2 square metres

ac acres ha hectares

cf or ft3 cubic feet Volume m3 cubic metres

scf standard cubic feet

gal gallons L litres

Mcf thousand cubic feet

MMcf million cubic feet

Bcf billion cubic feet e6m3 million cubic metres

bbl barrels m3 cubic metres

Mbbl thousand barrels e3m3 thousand cubic metres

stb stock tank barrels stm3 stock tank cubic metres

bbl/d barrels per day Rate m3/d cubic metre per day

Mbbl/d thousand barrels per day e3m3/d thousand cubic metres

Mcf/d thousand cubic feet per day e3m3/d thousand cubic metres

MMcf/d million cubic feet per day e6m3/d million cubic metres

Btu British thermal units Energy J joules

oz ounces Mass g grams

lb pounds kg kilograms

ton tons t tonnes

lt long tons

psi pounds per square inch Pressure Pa pascals

kPa kilopascals (103)

psia pounds per square inch absolute

psig pounds per square inch gauge

°F degrees Fahrenheit Temperature °C degrees Celsius

°R degrees Rankine K degrees Kelvin

M$ thousand dollars Dollars k$ 1 kilodollar


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Imperial and Metric Units (Cont’d)

Imperial Units Metric Units

sec second Time s second

min minute min minute

hr hour h hour

d day d day

wk week week

mo month month

yr year a annum


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Conversion Tables

Conversion Factors — Metric to Imperial

cubic metres (m3) (@ 15°C) x 6.29010 = barrels (bbl) (@ 60°F), water

m3 (@ 15°C) x 6.3300 = bbl (@ 60°F), Ethane

m3 (@ 15°C) x 6.30001 = bbl (@ 60°F), Propane

m3 (@ 15°C) x 6.29683 = bbl (@ 60°F), Butanes

m3 (@ 15°C) x 6.29287 = bbl (@ 60°F), oil, Pentanes Plus

m3 (@ 101.325 kPaa, 15°C) x 0.0354937 = thousands of cubic feet (Mcf) (@ 14.65 psia, 60°F)

1,000 cubic metres (103m3) (@ 101.325 kPaa, 15°C) x 35.49373 = Mcf (@ 14.65 psia, 60°F)

hectares (ha) x 2.4710541 = acres

1,000 square metres (103m2) x 0.2471054 = acres

10,000 cubic metres (ha.m) x 8.107133 = acre feet (ac-ft)

m3/103m3 (@ 101.325 kPaa, 15° C) x 0.0437809 = Mcf/Ac.ft. (@ 14.65 psia, 60°F)

joules (j) x 0.000948213 = Btu

megajoules per cubic metre (MJ/m3)

(@ 101.325 kPaa, 15°C)

x 26.714952 = British thermal units per standard cubic foot (Btu/scf)

(@ 14.65 psia, 60°F)

dollars per gigajoule ($/GJ) x 1.054615 = $/Mcf (1,000 Btu gas)

metres (m) x 3.28084 = feet (ft)

kilometres (km) x 0.6213712 = miles (mi)

dollars per 1,000 cubic metres ($/103m3) x 0.0288951 = dollars per thousand cubic feet ($/Mcf) (@ 15.025 psia) B.C.

($/103m3) x 0.02817399 = $/Mcf (@ 14.65 psia) Alta.

dollars per cubic metre ($/m3) x 0.158910 = dollars per barrel ($/bbl)

gas/oil ratio (GOR) (m3/m3) x 5.640309 = GOR (scf/bbl)

kilowatts (kW) x 1.341022 = horsepower

kilopascals (kPa) x 0.145038 = psi

tonnes (t) x 0.9842064 = long tons (LT)

kilograms (kg) x 2.204624 = pounds (lb)

litres (L) x 0.2199692 = gallons (Imperial)

litres (L) x 0.264172 = gallons (U.S.)

cubic metres per million cubic metres (m3/106m3) (C3) x 0.177496 = barrels per million cubic feet (bbl/MMcf) (@ 14.65 psia)

m3/106m3) (C4) x 0.1774069 = bbl/MMcf (@ 14.65 psia)

m3/106m3) (C5+) x 0.1772953 = bbl/MMcf (@ 14.65 psia)

tonnes per million cubic metres (t/106m3) (sulphur) x 0.0277290 = LT/MMcf (@ 14.65 psia)

millilitres per cubic meter (mL/m3) (C5+) x 0.0061974 = gallons (Imperial) per thousand cubic feet (gal (Imp)/Mcf)

(mL/m3) (C5+) x 0.0074428 = gallons (U.S.) per thousand cubic feet (gal (U.S.)/Mcf)

Kelvin (K) x 1.8 = degrees Rankine (°R)

millipascal seconds (mPa.s) x 1.0 = centipoise

density (kg/m3), ρ ρ÷1000x141.5-

131.5

= °API


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Conversion Tables (Cont’d) Conversion Factors — Imperial to Metric

barrels (bbl) (@ 60°F) x 0.15898 = cubic metres (m3) (@ 15°C), water

bbl (@ 60°F) x 0.15798 = m3 (@ 15°C), Ethane

bbl (@ 60°F) x 0.15873 = m3 (@ 15°C), Propane

bbl (@ 60°F) x 0.15881 = m3 (@ 15°C), Butanes

bbl (@ 60°F) x 0.15891 = m3 (@ 15°C), oil, Pentanes Plus

thousands of cubic feet (Mcf) (@ 14.65 psia, 60°F) x 28.17399 = m3 (@ 101.325 kPaa, 15°C)

Mcf (@ 14.65 psia, 60°F) x 0.02817399 = 1,000 cubic metres (103m3) (@ 101.325 kPaa, 15°C)

acres x 0.4046856 = hectares (ha)

acres x 4.046856 = 1,000 square metres (103m2)

acre feet (ac-ft) x 0.123348 = 10,000 cubic metres (104m3) (ha.m)

Mcf/ac-ft (@ 14.65 psia, 60°F) x 22.841028 = 103m3/m3 (@ 101.325 kPaa, 15°C)

Btu x 1054.615 = joules (J)

British thermal units per standard cubic foot (Btu/Scf)

(@ 14.65 psia, 60°F)

x 0.03743222 = megajoules per cubic metre (MJ/m3)

(@ 101.325 kPaa, 15°C)

$/Mcf (1,000 Btu gas) x 0.9482133 = dollars per gigajoule ($/GJ)

$/Mcf (@ 14.65 psia, 60°F) Alta. x 35.49373 = $/103m3 (@ 101.325 kPaa, 15°C)

$/Mcf (@ 15.025 psia, 60°F), B.C. x 34.607860 = $/103m3 (@ 101.325 kPaa, 15°C)

feet (ft) x 0.3048 = metres (m)

miles (mi) x 1.609344 = kilometres (km)

dollars per barrel ($/bbl) x 6.29287 = dollars per cubic metre ($/m3)

GOR (scf/bbl) x 0.177295 = gas/oil ratio (GOR) (m3/m3)

horsepower x 0.7456999 = kilowatts (kW)

psi x 6.894757 = kilopascals (kPa)

long tons (LT) x 1.016047 = tonnes (t)

pounds (lb) x 0.453592 = kilograms (kg)

gallons (Imperial) x 4.54609 = litres (L) (.001 m3)

gallons (U.S.) x 3.785412 = litres (L) (.001 m3)

barrels per million cubic feet (bbl/MMcf) (@ 14.65 psia) (C3) x 5.6339198 = cubic metres per million cubic metres (m3/106m3)

bbl/MMcf (C4) x 5.6367593 = (m3/106m3)

bbl/MMcf (C5+) x 5.6403087 = (m3/106m3)

LT/MMcf (sulphur) x 36.063298 = tonnes per million cubic metres (t/106m3)

gallons (Imperial) per thousand cubic feet (gal (Imp)/Mcf) (C5+) x 161.3577 = millilitres per cubic meter (mL/m3)

gallons (U.S.) per thousand cubic feet (gal (U.S.)/Mcf) (C5+) x 134.3584 = (mL/m3)

degrees Rankine (°R) x 0.555556 = Kelvin (K)

centipoises x 1.0 = millipascal seconds (mPa.s)

°API (°APIx131.5)x

1000/141.5

= density (kg/m3)

Appendix B — Page 1

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Appendix B – Petroleum Fiscal Terms

The following is a summary of the petroleum fiscal terms applicable to the Company’s lands in the United Kingdom (“UK”).

Royalties

Except for the Harrier and Stella properties, no royalties are applied to the fields. Thus, revenue less costs are taxed, with allowances provided for as appropriate.

A third-party royalty of 5 percent (2.56 percent Company share) of the revenue from the Stella and Harrier fields is paid by the Company. The royalty owner has no volume entitlement under the agreement.

The royalty is shown as “GOR (non Reserve)” in Table 4 for the “GSA Fields” group.

Taxes

The ring fence fiscal regime applies to the exploration for, and production of, oil, gas and gas by-products in the UK and UK Continental Shelf (UKCS) and is comprised of three taxes, namely Petroleum Revenue Tax, Ring Fence Corporation Tax and Supplementary Charge Tax.

The Company is subject to United Kingdom Ring Fence Corporation Tax at 30 percent of profits and Supplementary Charge at 10 percent of profits. The Supplementary Charge Tax is calculated on the same basis as the Ring Fence Corporation Tax. Payments are scheduled so that two thirds of the payments are made the year the liability is incurred and one third is paid the following year.

The premise of the ring fence is that corporate tax on profits from oil and gas extraction activities should be paid in full, undiluted by any losses or any other form of relief arising from any other business activities whether in the United Kingdom or elsewhere. Oil and gas extraction activities are treated as a separate trade (ring-fenced), distinct from all other activities carried out by the Company. An enhanced first year capital allowance (i.e., 100 percent write-down) is available for ring fence operating and capital expenditures. Acquisition costs and losses from other non-ring-fenced activities are not allowed. A Ring Fence Expenditure Supplement (RFES) increases the value of unused qualifying expenditures carried forward from one period to the next by a compound 10 percent per year for a maximum of ten years.

Petroleum Revenue Tax (PRT) is a field based tax on profits arising from individual oil and gas fields that were given development authorization prior to March 16, 1993. Fields which were given development


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authorization after that date are not liable for PRT. Any PRT paid by the Company is an allowable deduction against ring fence profits for the purpose of calculating Ring Fence Corporation Tax and Supplementary Charge Tax. The PRT rate was reduced to 0 percent from January 1, 2016.

Allowances

In December 2014, the UK government announced a new basin-wide investment allowance to simplify and replace the previous system of offshore field allowances over time. The investment allowance operates in a similar manner as the previous system and exempts 62.5 percent of qualifying capital expenditures made by the Company from its adjusted ring fence profits which are subject to Supplementary Charge Tax. The investment allowance applies to qualifying capital expenditures the Company makes on or after April 1, 2015 in a field that is considered to be materially complete. First commercial production is usually used to determine if a field is materially complete, except in phased projects where much of the originally contemplated expenditure is scheduled after first production (such as brownfield projects on producing fields).

For an existing field that was in receipt of a Small Field Allowance, any unactivated field allowance is converted to an investment allowance pool. If a field is not materially complete, only the portion of capital expenditures that exceeds 160 percent of the gross field allowance spent between April 1, 2015 and the date it is deemed to be materially complete, can be applied as an investment allowance. The same methodology applies for a field in receipt of a brownfield allowance.

For a field that is not producing by the effective date of this report and is not eligible for field value allowances, all capital required to develop the field is eligible to be included in the calculation of an investment allowance.

Previously, several fields were eligible for the former United Kingdom Small Field Tax Allowance, which was applicable to fields with oil reserves under 6.25 million tonnes (roughly 20 to 45 MMBOE). The maximum allowance for a field was £UK 150 million ($US 203 million), with a maximum £UK 30 million ($US 41 million) usable in a single year. The allowance was offset against the income subject to the supplementary charge payable by the companies with interests in each of these fields.


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The following table summarizes the investment allowance pools still outstanding as of December 31, 2017.

Summary of Outstanding Investment Allowance Pools Field Gross Investment Allowance Pool (M£) Causeway 16,000 Fionn 109,000 Stella 16,000 Harrier 150,000 Ythan 32,000

The Company also reported carry-forward losses of $US1.8 billion (£UK1.3 billion), as of December 31, 2017.

Processing Income

The Company has an interest in the FPF-1 floating production, storage and off-loading vessel (FPSO), located at the Stella field, following an agreement with Petrofac in 2011. The Company plans to produce all the Greater Stella Area fields through FPF-1. A processing income was included in the evaluation, based on a connected field’s share of the total throughput. For some of the GSA fields (Harrier, Hurricane and Stella), the processing income, is not subject to United Kingdom taxes.

For the other GSA fields, Austin and Vorlich, a portion of the processing income is taxable with the remainder not subject to United Kingdom taxes.

As shown in Table 4, the processing income was divided for the “GSA Fields” group into “Additional Taxable Revenue” and “Additional Non-taxable Revenue”.

re: evaluation of the petroleum and natural gas …...the oil reserves are presented in thousands of...

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