30th October, 2015

ACTIVITIES REPORT SEPTEMBER 2015 QUARTER

SUMMARY

Philippines

• SC 44 currently in 2 Year Technical moratorium until 27th January, 2017

• Studies continue aimed at determining the best well drilling and completion technology to maximise oil production

• Plan on deepening Nuevo Malolos-1 and completing for oil production in First Quarter, 2016

• Proposed drilling program to be funded by farmout

  France

• St. Griede licence first renewal refused and Company seeking advice

• 3 new petroleum exploration licence applications reaching final processing stage before approval

PHILIPPINES: SERVICE CONTRACT 44 (100%), Onshore Cebu

The Philippine Department of Energy ('DOE') approved a 2 year technical moratorium in order to provide sufficient time to complete studies and establish the appropriate completion technology for maximising sustainable oil production that if successful will lead to full oil field appraisal/development.

The Company is finalising technical work being conducted with industry experts. The aim is to analyze all available technical data to identify the completion technology that will minimize sand and clay production to avert production blockage and maximize oil production rates. Results of this work indicate the preferred method to complete the new wells will be with standard industry screens. The installation of screens as opposed to perforated casing should maximize and sustain oil production whilst retaining the reservoir sand and producing the clay fines.

Studies are also being conducted on the open-hole mud and hydraulic program which is designed to minimize formation damage and maintain well-bore stability.

The Company, subject to availability of funding, is planning on deepening the Nuevo Malolos-1 well to the two known oil bearing reservoirs tested in Malolos-1. The well is programmed to deviate slightly so as to intercept the oil bearing reservoirs slightly updip from Malolos-1. The new program will incorporate better open drilling technologies to avoid formation damage. It is planned to cut a rock

core through the upper oil bearing sandstone and run a suite of electrical logs. The well will then be completed with screens and placed into oil production.

Recent surface geological mapping has also been completed and integrated with previous work leading to a more detailed understanding of the surface geological structure. The crest of the Malolos anticline has been confidently located approximately 2.5 to 3 kilometres south-southwest of Malolos-1.

The Company, subject to availability of funding, would like to drill a new well to test the known oil bearing reservoirs in a crestal location on the anticline. Due to structural uplift all known sandstone reservoirs would be intercepted at a significantly shallower depth on the crest of the anticline, relative to Malolos-1.

The Company is also reviewing the benefits that could be achieved by the stimulation of the upper oil bearing sandstone in Malolos-1.

Farmout

The Company still considers the best way to fund the full appraisal and development of the Malolos Oil Field is by securing a farmin partner. Farmout presentations are continuing and the Company is now pitching farmin terms that reflect the current lower oil price in order achieve a farmout.

The Malolos Oil Field still represents an attractive investment opportunity despite the recent oil price drop and the immediate effect that it has had on the oil industry Worldwide. The Malolos Oil field has a

20.4 million barrel 'Best Estimate (P50) Contingent Resource' of good quality, low sulphur crude oil that is located onshore, close to transportation in a country with excellent fiscal terms. This could result in very low development and operating costs which will leave a healthy profit margin, even at the current low oil price.

Cross-Section: Malolos Oil Field

Map: Malolos, Aloguinsan and Barili Surface Anticlines

FRANCE: ST. GRIEDE (100%), Onshore Aquitaine Basin

The St Griede licence (100% working interest) located within the Aquitaine Basin, France was due for its first renewal in May, 2013 after an initial 5 year term. With the terms and conditions of the work and expenditure commitments having been met for the first 5 year term, a renewal application for a second 5 year term was submitted in January 2013 in order to continue the work program towards the drilling of a well. Normally, a first renewal is expected as a matter of course if the initial commitments have been met. That application was processed by French Government officials who recommended renewal and submitted it to the Minister of Energy for signature and issue. The renewal document has remained in the Minister's office, along with many other licence renewals, for a very long time.

The Directors of Gas2Grid Limited met with high level French Government officials on 9th October 2015 in Paris to follow up on the licence status. The Directors were then verbally advised that the French Government has decided not to grant the renewal and a formal written notification was forthcoming. That written notification has since been received. We understand that the decision is based solely on local elected members' and risks to public order considerations within the area where the licence is located. We note an inconsistency in the governmental process as an approval was already granted in August 2014, by local authorities, for Gas2Grid to conduct a seismic acquisition survey with the aim to target a well location with no reference to any societal issues.

Gas2Grid Limited is seeking advice on its options regarding the recent decision.

FRANCE: NEW APPLICATIONS (100%), Onshore Aquitaine Basin

Gas2Grid has 3 licence applications, namely Tartas, Eauze and Mirande (all 100% interest), in the Aquitaine Basin that are awaiting grant. Tartas, having been fully processed, has been recommended for grant by the French Government officials and is awaiting the Minister of Energy's approval. Eauze and Mirande have some more procedures to be carried out by the officials before a recommendation for grant can be expected.