The document summarizes Arenite Petroleum's assets and exploration prospects in the Cleveland Basin, UK. Arenite has identified multiple hydrocarbon plays including: 1. A discovered Carboniferous gas field at Cloughton with a potential 580 Bcf of gas initially in place based on appraisal drilling. 2. Multiple Plattendolomit gas discoveries across the basin trending into Arenite's acreage with potential billions of cubic feet of gas initially in place. 3. Additional hydrocarbon prospects in the Hauptdolomit, Bunter Sandstone, and Jurassic formations. 4. Unconventional resource potential across multiple formations with estimated total gas initially in place of multiple trillion cubic

1. The Maxwell Gasfield
“A Giant Hiding in the Open”
Mike Cooper, CEO, Arenite Petroleum
10th December 2015
Cleveland
Basin

2. Incorporated Mar 14
Privately-owned E&P Company
Aberdeen-based
Current focus - Cleveland Basin (“onshore & offshore” sic.)
Assets:
About Arenite…....
Gasfield
Maxwell (Zechstein) Five wells tested gas at significant rates
Cloughton (Carboniferous) Tight gas discovery

3. 41/24
NTS Pipeline
0 10 20km
Arenite Petroleum Limited Acreage Position
SE99a
&
TA09
,2 & 3

4. Three stacked petroleum systems
North South
S
R
T
R
S
R
T
S R T
S R T
After Roc Oil 2005
Cloughton-1
Plattendolomit (Brotherton)
Hauptdolomit (Kirkham Abbey)
LIAS
MIDDLE JURASSIC
T
R
S
R
T

5. A Brief History of the Cleveland Basin
Simplified
Preservation <> HC Generation & Re-migration

6. “All maps stop at the coast” (sic)
DATAGAP
DATAGAP
?
?
?
Discovered 1969 (Total)
Appraised 1981 (Total)
Horizontal 1992 (Conoco)
“Small gas discoveries”
Little activity for last 23 years
Plattendolomit & Hauptdolomit Discoveries

7. Planned 3000ft horizontal well (41/24-3, 1992) drilled in a fault zone
• Only drilled 370ft AHL.
• Losses & kicks. Well killed 6 (six) times.
• “Gunk” – Diesel, bentonite & cement.
• Perfed only ~10% TVT of Plattendolomit.
Despite drilling issues, flowed 34mmscfgd & 1280bcpd
• Pressure decline was evident.
• DST reports by John Underwood (SRE), ERC & RPS all concluded
a ~9.5Bcf connected GIIP.
The licence was relinquished.... but let’s relook at the geology....
The Way Forward - Horizontal Appraisal

8. Plattendolomit TWT map showing 41/24-3 horizontal well
Area – 0.88 km2
Connected GIIP (from DST) = 9.5 Bcf
Right well. Wrong location.
41/24a-1
41/24a-2
41/24-3

9. 41/24-1,2 & 3
within “blue”
fault zone
A
A’A A’
C41/19-19
Plattendolomit
TWT Map
Dinantian
Bowland Shale
Millstone Grit
Westphalian
Hauptdolomit
Plattendolomit
Bunter
Rheatic

10. An intriguing graph in the Underwood 2005 Report
Bunter in 41/24-3 is
hydrostatic (RFT’s)
Carboniferous
reportedly hydrostatic.
A ~5800ftss FWL
yields an “apparent
overpressure”
gradient of 0.71psi/ft
to surface at top of
Maxwell gasfield.

11. Regional Zechstein Hydrocarbon Occurrences (Incomplete)
Cuttings gas <0.5scf/min at 10bbl mud/min. Minor condensate & mineral fluorescence

12. Large Regional High
DATAGAP
DATAGAP
?
?
?

13. “All maps stop at the coast” - again
TO OUTCROP
TOOUTCROP

14. A map that does not stop at the coast…...
22
15
10
34
1
3
6
39
11
9
2.3
18
Discovery
– no rates
18
Ralph Cross-1 Produced
– no rates
Lockton
Gasfield
Ebberston
Moor
Gasfield
Eskdale
Gasfield
Fordon
Gasfield
Wykeham-1
discovery
Pickering
Gasfield
Malton
Gasfield Marishes
Gasfield
Kirby
Misperton
Gasfield
8
Top Plattendolomit TWT Map
34 DST flow rate (mmscfgd)
39 Production rate (mmscfgd)

15. Basin Architecture & Gas Column beneath Spill Point
After DECC, 2009
Cloughton-Maxwell High
Dinantian & Older
10km
1,768mSS
Post-Alpine exposure.
Gas lost to atmosphere
Updip strat seal in tight carbonates
Unlikely hydrodynamics
Lockton Anticline
Butterknowle
Fault
Seaton Carew
Fault
2500
0
Depth(mss)
2500
0
Depth(mss)
Vale of Pickering
(VOP) Fault
Stratigraphic Trap
Plattendolomit facies change to anhydrite in west.
Hauptdolomit – TBC. More complex, near Carboniferous aquifer/FWL. Fill & Spill??

16. Carboniferous
Cloughton Gasfield & 41/24 Prospect

17. Cloughton-1 Results
Intra-Namurian TWT Structure Map Roc Oil, 2005

18. GIIP - Conventional (Bcf)
580
Bcf
GIIP
Roc Oil, 2005

19. Field Development Plan & Production Profile

20. Top Dinantian TWT Map
41/24
41/24a-2

21. SNS Carboniferous Field Analogues

22. SNS Carboniferous Field Size

23. Bunter nitrogen-rich gas discovery

24. Live oil shows at 180ftMD in Cloughton-1
Jurassic Oil Play
Regional Mesozoic HC Shows
Arenite is sponsoring a geochemistry MSc at Newcastle University in 2016.

25. 41/24
NTS Pipeline
SE99a
&
TA09
Summary
Onshore
Carboniferous 84 Bcf
Plattendolomit TBC Bcf
Hauptdolomit: WIP
Unconventionals: “Multi-Tcf” GIIP
Offshore
Plattendolomit TBC Bcf
Carboniferous WIP
Hauptdolomit: WIP
Bunter Gas Discovery
(Nitrogen-rich heavy gas)
Jurassic Live Oil Lead
Well TD: 200ft. Live Oil?
Also Rhaetic Oil Shows
Block 41/24 Licence P.2304 28th Round Promote Licence
50%
50%
Dataroom open Jan-Feb 2016
Seek Experienced Operator & Promote. 50% equity available.

26. James Clerk Maxwell
1831-1879
Electromagnetism & Kinetic
Theory of Gases

27. Acknowledgements
Roc Oil - High quality regional studies
Jamie Vince, M.Sc. Graduate Geologist
Work experience at Arenite
For more information:
Europa Stand 67
info@arenitepetroleum.com