KEC May 2012 Corporate Presentation

Corporate Presentation May 2012

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The Kuwait Energy Story

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Kuwait Energy – The Background Facts  The Middle East has remaining proved oil reserves of more than 750 billion

barrels¹  Most of the large fields are mature and in the phase of decline management

 Most of that resource is managed by National Oil Companies (NOCs) that have

monopoly over the resources (the US in the mid 1900’s)  There is no established independent oil and gas sector in this part of the world

Note: Map sourced from Wood Mackenzie data ¹ Source: BP Statistical Review June 2011

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Oil fields

Gas fields

Overview  An indigenous company, established in 2005 and headquartered in Kuwait  One of the fastest growing, independent, oil and gas exploration & production companies in the Middle East  Assets in 8 countries; Egypt, Iraq, Yemen, Oman, Ukraine, Latvia, Russia and Pakistan

In the past five years, the Company has:  Demonstrated its ability to grow production year-on-year.  Been profitable since inception.  Increased its operatorship of assets and demonstrated operator capability.  Established a qualified and experienced management team.  Developed an extensive contact network within regional governments and industry.

 Developed and implemented a Health, Safety, Environment and Social Responsibility (HSESR) policy and processes to meet industry/regulatory requirements as an international operator of oil & gas fields.

3

Kuwait Energy Strategic Priorities Kuwait Energy is targeting significant growth and has identified key strategic priorities by end 2015:

4



Achieve 400 million boe of reserves and 75,000 boepd of production



Pursue business development opportunities (capturing new MENA focused projects leveraged of good relationships)



Promote excellent health, safety and environment performance and culture



Deliver efficient and cost effective operations with a high level of technical competence

Corporate Targets Our vision for growth will transform Kuwait Energy’s 2015 profile 500 Kuwait Energy 2015 Targets

400

300

Kuwait Energy YE11

Tullow Oil

Premier Oil

75,000 boepd

WI Reserves (mmboe)

400 mmboe

1

200

SOCO International 100

Heritage Oil

0

Kuwait Energy YE10 Gulfsands Petroleum

Dana Gas Melrose Resources

TransGlobe Energy 25

50

75

WI Production (kboepd)

5

Source: Company 2010 Annual Reports & published information NB: All companies are Kuwait Energy peers

100

125

Kuwait Energy Team

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Board of Directors

Dr. Manssour Aboukhamseen Chairman & Managing Director

Rachel English Independent Director

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Sara Akbar Chief Executive Officer

Dr. Youssef Al Awadi Independent Director

Roger Phillips Chief Financial Officer

Mohammed Yousof Rafie Independent Director

Executive Management Team

Sara Akbar CEO

Mohammad Al Howqal COO

BS in Chemical Eng. Kuwait University, Kuwait

BS in Petroleum Eng. Univ. of W.Virginia, USA

Over 30 years in oil and gas industry

Over 31 years in oil and gas industry

Roger Phillips CFO

Michael Andersen Sr. VP Strategic Planning

Mohammad Aboush Sr. VP Iraq

Chartered Accountant England & Wales

Bachelor in Geology Univ. of Macquarie, Australia

BS in Mechanical Eng. Univ. College of Swansea, UK

Over 28 years in oil and gas industry

Over 35 years in oil and gas industry

Over 27 years in Petroleum Eng.

Ibrahim Abdelgawad Country President - Egypt

Abdulsalam Al Kabab Country President - Yemen

German Leppke General Manager - Russia

BS in Petroleum Eng. Suez Canal University, Egypt

BS in Petroleum Eng. Baghdad University, Iraq

Ph.D in Economics University of Oil & Gas, Russia

Over 27 years in oil and gas industry

Over 20 years in oil and gas industry

Over 18 years in oil and gas industry

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Sergiy Burov General Manager - Ukraine

Ahmed Haidar General Manager – Iraq

BS in Economics BS in Mechanical Eng. Kiev State Economic Univ, Ukraine California State Univ, USA Over 15 years in oil and gas industry

Over 12 years in oil and gas industry

Performance & Achievements

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Assets Kuwait Energy Worldwide Concessions Russia:

Latvia:

Producing

Exploration

 Luskoye, 100%*  Chikshina, 100%*

 License 1, 45%*  North Block , 45%*

Ukraine:

Iraq:

Producing

Development

 BC, 100%*

 Mansuriya, 22.5%  Siba, 45%*

Non-Producing  NY, 100%*

Pakistan: Exploration

Egypt: Producing  Burg El Arab, 75%*  Area A, 70%*  East Ras Qattara, 49.5%

Yemen: Producing  Block 43, 28.33%

Exploration Non-Producing  Abu Sennan, 50%*

* Denotes Kuwait Energy operated Block

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Exploration  Block 6 (Mesaha), 15%

 Block 15, 41.56%*  Block 35, 83.82%*  Block 49, 64%*  Block 74, 32%*  Blocks 82 & 83, 21.25%

Oman: Producing  Karim Small Fields, 15%

 Kunri 40%  Jherruck 40%

Kuwait Energy’s hands-on approach in practice  Target undervalued regional opportunities  Thorough seismic and technical

reinterpretation  Operating expertise  Rapid turnaround in production/conversion

of resource to reserves  Low risk and cost efficient appraisal and

development  Prudent capital management

 Turn

around underperforming assets

 Area A (Egypt)

development

 BEA (Burg

El Arab, Egypt) and Abu Sennan (Egypt)

 Luzskoye  Re-aligned

(Russia) operatorships

 BEA (Egypt),

Block 49 (Yemen)

 Regional

relationships providing advantaged access

 Proven MENA management team  Iraq, Egypt

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&Yemen

Production Growth Current production 27% above 2011 annual average 20,000

Daily Average WI Production (boepd)

18,000 16,000

13,258

14,000

17,260

YTD April 2012 Country

13,624

Asset

(boepd)

Area A

4,649

ERQ

6,972

Burg El Arab

901

Oman

KSF

3,048

Yemen Ukraine

Block 43

513

Rudis BC

308

Russia

Luzskoye

869

Total

17,260

11,499

12,000

Egypt

10,000

8,160

8,000 6,000 4,000

3,215

2,000 2007

2008

2009

2010

2011

2012 YTD

Drilling activities in the 2H 2011 have led to increase in production from Area A and ERQ fields, Egypt Current Production by Country Yemen 3% Russia 5%

Current Production by Product Gas

Oman 18%

Egypt 72% Ukraine 2%

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Oil

Condensate

Financial Highlights US$ Million

2006

2007

2008

2009

2010

2011

Sales Revenue

2.4

25.9

90.8

88.3

141.8

178.9

Operating Cash Flow

1.4

17.9

50.8

51.1

85.6

111.9

Net Profit

1.0

20.6

29.9

5.6

21.9

34.8

Capital Expenditure*

10.8

45.7

381.0

174.7

110.0

141.3

Total Assets

87.3

239.6

577.7

680.9

771.5

884.1

-

-

-

28.0

53.0

53.0

84.9

193.7

525.7

580.1

631.3

734.3

Debt Shareholder Equity

* Includes acquisition costs

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2011 Exploration Success rate of 63%

 5 discoveries from 8 exploration wells  Booked 9.3mmboe 2P reserves and 2.9mmboe 2C*  Spent US$36.3million, 2P Finding cost of US$3.9/boe All 2011 Exploration drilling took place in Egypt Field

Operator

Karma-1

ERQ

SiPetrol

Oil

O

Dry Hole

Saady-1

ERQ

SiPetrol

Oil

O

Dry Hole

Shebyl East-1

ERQ

SiPetrol

Oil

P

Oil

P

Oil Producer, tested at 1,500 bopd gross Gas & Cond. discovery, Initial flow rates of 800 bopd cond. and13mmscfd gas gross Oil Producer, Initial flow rates of 900 bopd gross

Al Ahmadi-1

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Abu Sennan Kuwait Energy

Target Result

Ahmad-1

Area A

Kuwait Energy

Oil

P

Fatema-1

Area A

Kuwait Energy

Oil

O

El Salmiya-1

Abu Sennan Kuwait Energy

Oil

P

Al Jahraa-1

Abu Sennan Kuwait Energy

Oil

P

Comments

Dry Hole Gas & Cond. discovery, Initial flow rates of 2555 bopd cond. &16.6mmscfd gas gross Oil Producer, Initial flow rate of 835 bopd gross

* Need to submit field development plan for Abu Sennan gas to move to 2P

Future Outlook

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Yemen Gas Project Yemen gas development for power generation

Current Project status:

1. The Yemen Gas Master Plan (YGMP) study was completed in April 2011 as per an MOU with the Yemen Government.

2. PEPA*, Yemen has granted approval to Kuwait Energy to implement stage 1 of the YGMP by executing a small scale LNG project utilizing flared gas

The Natural Gas in place as estimated by the PEPA, Yemen is 18.2tcf

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* Petroleum Exploration and Production Authority

Key Focus Area for Inorganic Growth Expansion Core areas of focus for future upside in the Middle East

Iraq  Kuwait Energy has interests in two twenty year gas development contracts in

Iraq.  Currently preparing to bid in the Iraq 4th Bid round in May 2012  Kuwait Energy has a MOU with the Oil Ministry in Iraq that is an umbrella

agreement under which KEC or Iraq can propose projects  World’s fourth largest proven oil reserves

Egypt

Libya  Kuwait Energy is seeking

opportunities to develop fields under service agreements, utilizing its operational experience based on the model it has deployed in Iraq post war

— 115bn barrels

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Kuwait

 Kuwait Energy is seeking to expand

its asset base in Egypt capitalizing on its operational capability in Egypt since 2007

 New opportunities to introduce international investment

and technology to Kuwait  Global scale resource opportunity

Yemen  Kuwait Energy has excellent relationships with various high-level decision

makers  Undeveloped reserves of natural gas and oil (onshore and offshore)  Intensified exploration efforts to compensate natural depletion of older oil

and gas fields

Also pursuing opportunities with exploration potential in Lebanon & Somalia 17

1

BP Statistical Review June 2011

Target Countries

Existing Presence

Appendix 1 – Assets Summary

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Appendix 1: Overview of Assets As of March 2012 Region

Licence

Iraq

Egypt

Yemen

Oman Pakistan

Ukraine

EA

Exploration Asset

PAEP Producing Assets with Exploration Potential

Russia

ADEP Awaiting Development with Exploration Potential

Latvia

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Interest

Operator

Status

Siba

45.00%

KEC

ADEP

Mansuriya

22.50%

TPAO

ADEP

Area A (5 Blocks)

70.00%

KEC

PAEP

Mesaha

15.00%

Melrose

EA

Abu Sennan

50.00%

KEC

ADEP

BEA

75.00%

KEC

PAEP

ERQ

49.50%

Sipetrol

PAEP

Block 15

41.56%

KEC

EA

Block 35

88.24%

KEC

EA

Block 43

28.33%

DNO

PAEP

Block 49

64.00%

KEC

EA

Block 74

34.00%

KEC

EA

Block 82

21.25%

Medco

EA

Block 83

21.25%

Medco

EA

KSF

15.00%

Medco

PAEP

Jherruck

40.00%

NHEPL

EA

Kunri

40.00%

NHEPL

EA

BC

100.00%

KEC

PAEP

NY

100.00%

KEC

ADEP

Chikshina

100.00%

KEC

EA

Luzskoye

100.00%

KEC

PAEP

License 1 - 2004

45.00%

KEC

EA

License 1 - 2009

45.00%

KEC

EA

Iraq Siba & Mansuriya Two 20 year gas development contracts signed 05 June 2011, added 140mmboe in 2P WI reserves Siba Field Overview: Location: Type: Operator: KE Interest: Other Parties:

Contract Date: Contract Type: Remuneration Fee: Plateau Rate:

Basra Governorate Onshore Kuwait Energy 45% TPAO (30%), South Oil Company (25%) June 2011 Service Agreement US$7.5/boe 100 mmscfd

Mansuriya Field Overview: Location: Diyala Province Type: Onshore Operator: TPAO (37.50%) KE Interest: 22.50% Other Parties: KOGAS (15%), Midland Oil Company (25%) Contract Date: June 2011 Contract Type: Service Agreement Remuneration Fee: US$7.0/boe Plateau Rate: 320 mmscfd

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Egypt Location of KEC Egyptian Blocks

KEC Blocks and Working Interests Producing  Burg El Arab, 75% *  Area A, 70% *  East Ras Qattara, 49.5% Non-Producing  Abu Sennan, 50% *

Exploration  Mesaha (Block 6), 15% * Denotes KEC Operated Blocks

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Egypt Area A

Field Overview: Location: Area: Type: Blocks:

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Operator: KEC Interest: Other Participants:

Eastern Desert 350 km2 Onshore 4 Development + 2 Exploration Areas KEC 70% Petrogas (30%)

Acquisition Date :

Aug 2008

Contract Type:

Exploration Service Agreement (ESA) & Production Service Agreement (PSA)

Egypt Mesaha (Block 6) 200 000 E

400 000 E

600 000 E

800 000 E

M E D I T E R R A N EA N

1000000 E

1200000 E

S E A

1000000 N

32° N

000 000 E

El salum 31 ° N

Mersa Matruh

N

Alexandria

Marina

Tanta

Sinai N

Cairo Suez

Kareem

Kheir

Ras Shukeir

Abu Sennan

Shukheir

EAST ERN DESERT

28 ° N

0

5

10

15 Km.

W. DARA

27 ° N

LIBYA

Area “A” Asyut

600 000 N

Ras Dib

Minya

Hurgada

Farafra Oasis 400 000 N

26 ° N

Sohag

Qena

25 ° N

Western Desert

Luxor

Idfo

24 ° N

200 000 N

Mesaha

Eastern Desert

23 ° N

Aswan

22 ° N

000 000 N

0 25 ° E

100 Km. 26 ° E

S UD AN

S UD AN 27 ° E

28 ° E

29 ° E

30 ° E

31 ° E

Field Overview:

Ayun

East Ras Qattara

Siwa Oasis

29 ° N

E. UM EL YUSR

800 000 N

30 ° N

Burg El Arab

32 ° E

33 ° E

34 ° E

35 ° E

36 ° E

Location: Area: Type: Operator: KEC Interest: Other Partners:

37 ° E

Acquisition Date: Contract Type:

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Western Desert 42,697 km2 Onshore Melrose Resources (40%) 15% Hellenic Petroleum (30%) Beach Energy (15%) Aug 2008 PSA

Egypt Abu Sennan Field Overview: Location: Area: Type: Blocks: Operator: KEC Interest: Partners:

Western Desert 1,589 km2 Onshore Development/Exploration KEC 50% Dover (28%) Beach Energy (22%) Acquisition Date: Jun 2007 Contract Type: Concession

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Egypt Burg El Arab (BEA)

60

Field Overview: -76

-7720

-766 0

74 0

-7700

Depth Structure Map (Upper Bahariya Top) 412000

414000

416000

418000

420000

422000 894000

894000

-766

-7660

890000

-76 890000

60

-7800

-77

60

892000

892000

-7660

-76

-7700

BEA-N1X

1

416000

2

-76

00

3km

-77

418000

40

420000

-762

0 Depth Structure Map (Upper Bahariya Top)-7600 0 72

422000

80

-7

416000

00 416500 -77

417000

889500

-76

80

60

BEA-N1X

-7640

-7640

-7620

-7

888500 888000 887500 887000

-76

80

-760 -76 0 20 -76 4 -76 0 60

886500 886000

0 70 -7 -7720 -7740

-7760

-7940 416000

416500

417000

417500

418000

418500

419000

419500

80

BEA-2

0.75km

40

0.5

-77

0.25

886000

0

BEA-1

0

-7860

-77

-7560

-7780

-7660 -7680

886500

0

-7700

BEA-1ST 58 -7

BEA-8

-780

-7640

-7540

0

0

0

62

-7

BEA-3

82

-7720

BEA-5

-7 -776

-7600

-7620

-7680

887000

20

-7580

-76

887500

-7600

BEA-7

BEA-6

Depth

-7560

60 40 -78 -78

888000

00

-7640

BEA-4

-7620

-76

0

0

62

80

0

66 -7

-7

-75

70

888500

-7640

-7660

0

889000

889000

64

-

-7620

-76 60

-7

419500

889500

0

8 -76

419000

0

-766 0

-7700

418500

75

-756

-7740 -772 0

41800080

417500

-76

-7760

80

-7780

886000 884000

-77

414000

884000

0

412000

0 64

0

6 77

-7660

-7

886000

BEA-1ST BEA-1 BEA-8 BEA-2

-7680

80

-7 6

888000

-7640 -7620

888000

-7780 BEA-5 BEA-6 BEA-7 BEA-3

25

-7680

0

BEA Concession Boundary

BEA-4

Western Desert 72 km2 Onshore 2 Development + Exploration Areas KEC 55% Gharib Oil Fields (25%), East West Petroleum (20%) Acquisition Date: Jun 2006 Contract Type: PSA

-7700

20

-7

0

-7 8

Location: Area: Type: Blocks: Operator: KEC Interest: Partners:

-7680

60

-77 60

-7700

00

-76

40

0 -772

-77

-76

0 -780

8 -77

-7 68 0

80 -77

-7760

Egypt East Ras Qattara (ERQ) Field Overview: Location: Area: Type: Blocks: Operator: KEC Interest: Acquisition Date: Contract Type:

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Western Desert 4,326 km2 Onshore 3 Development + Exploration Areas Sipetrol (50.5%) 49.5% Aug 2008 PSA

Yemen Location of KEC Yemen Blocks

Block 35 Block 83 Block 82 Block 49

Block 43

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Block 74

Block 15

Yemen Block 15

Block Overview: Location: Area: Type: Operator : KEC Interest: Other Partners: Block 15: Acquisition Date: Contract Type:

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Mukalla-Saylut Basin 10,043 km2 Offshore KEC 41.56% KUFPEC (53.44%) TYC (5%) Leads and Prospects Aug 2008 PSA

Yemen Block 35

Block Overview:

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Location: Area: Type: Operator: KEC Interest : Other Partners:

Jeza Basin 5,533 km2 Onshore KEC 88.24% Dragon Oil (11.76%), TYC (5% carry)

Acquisition Date: Contract Type:

Aug 2008 PSA

Yemen Block 43

Field Overview: Location: Area: Type: Block:

Operator: KEC Interest: Other Partner: Acquisition Date: Contract Type:

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Sayun-Masila Basin 933 km2 Onshore Exploration & Development License containing the Nabrajah Oil Field DNO International (56.67%) 28.33% TYC (15%) Aug 2008 PSA

Yemen Block 49

Block Overview: Location: Area: Type: Operator: KEC Interest: Other Partners:

Acquisition Date: Contract Type:

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Shabwa Basin 2,088 km2 Onshore KEC 64% CCC (21%) TYC (15%) Aug 2008 PSA

Yemen Block 74 Block Overview: Location: Area: Type: Operator: KEC Interest: Other Parties:

Acquisition Date: Contract Type:

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Sayun-Masila Basin 1,203 km2 Onshore KEC 34% KUFPEC (20.25%) Arc (19.25%) Adelphi (8.5%) Dhakwan (5%) TYC (15%) Aug 2008 PSA

Yemen Block 82 & 83

Blocks Overview: Location:

15

Block 82

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Block 83

Area: Type: Operator: KEC Interest: Other Parties:

Acquisition Date: Contract Type:

Block 82: Shabwa Basin Block 83: Sayun Masila Basin 2,217 km2 Onshore Medco Energi (38.25%) 21.25% Indian Oil Corp.

(12.75%) Oil India Ltd (12.75%) TYC (15%) Dec 2006 PSA

Oman Karim Small Fields Field Overview:

Location: Type: Operator: KEC Interest: Other Partners:

Acquisition Date: Contract Type:

34

Southern Oman Onshore (cluster of 18 small fields) Medco LLC 15% Oman Oil Company (25%), Medco (51%), Petrovest General Trading (5%) Vision Oil and Gas (4%) Mar 2006 Technical Services

Pakistan Jherruck & Kunri Fields

Jherruck Field Overview:

Kunri Field Overview:

Location: Area : Type: Operator:

Location: Area: Type: Operator:

Sindh Province 733.8 km2 Onshore New Horizon E.&P. Ltd (60%) KEC Interest: 40% Acquisition Date: Jan 2008 Contract Type: PSA

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Sindh Province 2,486 km2 Onshore New Horizon E.& P. Ltd (60%) KEC Interest: 40% Acquisition Date: Jun 2007 Contract Type: PSA

Ukraine Rudis License Group & JAA 429 Blocks: - Rudis License Group:  Bilousivska-Chernuki (BC) Field  North Yablonivka (NY) Field  Dubrivska (DB) Field - JAA 429 Area: BC: 109 km2 NY: 76 km2 DB: 31 km2 JAA 429: Bilske :17.8 km2 Kulichikhi: 9.8 km2

Operator:

KEC: BC, NY, DB. Ukrbud (25%) : JAA 429

KEC Interest:

BELARUS RUSSIA

Kiev

POLAND

BC, NY, DB (100%) JAA 429 (25%) Other Partners: JAA 429: Ukragaz (50%), Ukrbud (25%) Acquisition Date: Dec 2007

Capartian Basin SLOVAKIA

Ukraine

Dnieper-Donets Basin

HUNGARY

MOLDAVIA ROMANIA

BLACK SEA

36

Contract Type:

Production License

Russia Location of KEC Russian Fields: Luzskoye & Chikshina

Fields Overview: Location: Area: Type: Blocks: Operator: KEC Interest: Acquisition Date: Contract Type: 37

Timan Pechora Luzskoye: 69 km2 Chikshina : 8.5 km2 Onshore Development KEC 100% Apr 2007 Production License

Latvia License 1 – 2004 & License 1 – 2009 (North Block) License 1-2004 Overview: Type: Area: Operator: Other Partners:

Acquisition Date: Contract Type: License 12004 & North Block

Offshore 765 km2 KEC (45%) PKN Orlen (45%) Latvian State Entity (10%) Apr 2008 Exploration/Production Agreement

License 1- 2009 Overview: Type: Area: Operator : Other Partners:

Acquisition Date: Contract Type:

38

Offshore 899 km2 KEC (45%) PKN Orlen (45%) Latvian State Entity (10%) Jun 2009 Exploration/Production Agreement

Disclaimer Forward looking statements This document includes statements that contain words or phrases such as “will”, “aim”, “will likely result”, “believe”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “project”, “should”, “will pursue”, and similar expressions or variations of such expressions which are “forward looking statements”. Such forward looking statements are by their nature speculative and based on various assumptions. Any such statements are hypothetical with respect to prospective events and should not be construed as being indicative of the actual events which will occur or a guarantee of future performance. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statements.

Important factors that could cause results to differ materially from the Company’s expectations include, among others: •General economic and business conditions in Kuwait and other countries; •The Company’s ability to successfully implement its strategy, growth and expansion plans and technological changes; •Changes in the value of the Kuwaiti Dinar and other currency changes; •Changes in Kuwaiti or international interest rates; •Changes in laws and regulations that apply to investment companies in Kuwait; •Changes in political conditions in Kuwait and other countries; and •Changes in the foreign exchange control regulations in Kuwait.

Disclaimer: All information provided in this document is for information purposes only. All financial information is unaudited and is subject to an annual financial audit.

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