ASX/Media Release 17 December, 2015

COMPANY UPDATE

Entek Energy Limited is pleased to provide the following update on its recent operations and corporate activity.

Battle Mountain AMI

As previously announced the Cobb 12-7 well has been temporarily abandoned without a successful completion within the Niobrara section. A shallow gas sand in the well is a potential completion candidate for 2016.

The McKee 5-16 well was completed in the Niobrara although the well was significantly out of zone and no significant open fractured reservoir was intersected. The subsequent test did not yield economic flow rates and the well has now been plugged and abandoned (P&A).

The State 15-8 well intersected the stratigraphic section as predicted, with hydrocarbon shows seen in the primary zone being confirmed by wireline logs. Although testing was anticipated this year the operator has been unable to test the well prior to winter and wildlife related operating restrictions. Accordingly, this well has now been scheduled for testing during the 2016 operating season.

Focus Ranch Unit (FRU)

Testing of the FRU 12-1 well has been completed for the year, with the well being shut in and secured for winter. Samples have been collected through the testing period and these are currently being analysed. By integrating this data with the flow test and pressure build up results we should be able to determine the production potential of the FRU 12-1 well and how it relates to the prospectivity of the play. This work is well underway and preliminary conclusions are summarised below:

Gas and pressure build ups during operations suggest that near wellbore faults are acting as conduits for gas and water from the Frontier level which sits below the Niobrara formation. These faults could be allowing gas and water to preferentially flow into the wellbore. Previous operations and a significant period of dormancy is now believed to have resulted in near wellbore damage or damage at the sill/shale interface resulting in reduced flow of oil into the well, as evidenced by particulate matter, emulsions and asphaltenes being recovered from the well. These were not evident during previous successful testing operations of this well dating back to 2009.

Planning has now commenced for all possible 2016 activities and options available to Entek. The success of regaining access to the prospective area within the Focus Ranch Unit earlier this year is a major step forward for Entek to finally being able to explore and prove the production potential of this geologically unique area.

It also facilitates the introduction of a new potential partner into the Focus Ranch Unit to assist funding of future exploration and appraisal activities.

www.entekenergy.com.au

Recent Niobrara Transaction

The Company is encouraged by a recent transaction in this low part of the commodity cycle. Sand Ridge Energy Inc. has purchased 136,000 net acres in the North Park Basin from EE3 LLC for $190 million. The metrics being $40,000 per flowing BOE and $1,100 per net acre for undeveloped acreage, which is encouraging for Entek's 66,000 net acre position in the play adjacent to this area.

Corporate

An internal review of the year's Battle Mountain AMI drilling program has been completed. In early 2016 joint venture meetings will be held with the operator with a view to determining both the operational and geological significance and implications of the recent program, which will assist in and facilitate the framing of the coming year's strategy and budget. All options available to the Company in relation to its various Green River Basin (GRB) investments will be considered subsequent to these meetings and discussions.

Meanwhile, the Board of Entek is implementing further cost reduction measures across operations and overheads in the current difficult industry environment. The sale process of non-core assets has also commenced in earnest and the Company expects to be able to provide an update on these activities during the first quarter of 2016.

For further information contact: TRENT SPRY

Competent Persons Statement:

Information in this report that relates to Hydrocarbon Reserves / Resources is based on information compiled by Mr. Trent Spry, Executive Director of Entek Energy Limited who has consented to the inclusion of that information in the form and context in which it appears. Mr. Spry is highly qualified and has over 20 years experience in geoscience in the petroleum industry, both in Australia and internationally.

ENTEK AT A GLANCE DIRECTORS CONTACT

Entek is US focussed with a substantial acreage position in the Niobrara Oil Resource Play, including an area of enhanced potential due to embedded Igneous Intrusive Sills. Entek's US portfolio is balanced with non-operated production and royalty interests in the Gulf of Mexico.

Graham Riley Chairman Trent Spry

CEO/Managing Director

Andrew Padman

Non-Executive Director Alexander Forcke Non-Executive Director

338 Hay Street

Subiaco, WA 6008 Australia

+61 8 9213 4388

[email protected] www.entekenergy.com.au ASX Code: ETE