Valiant Petroleum plc

1
Valiant Petroleum plc Corporate Update December
2008
2
Disclaimer

• The information contained in these slides
  ("Presentation") is for information purposes only
  and does not constitute or form part of a
  prospective or of any offer for sale or
  solicitation of any offer to buy or subscribe for
  any securities nor shall it, nor any part of it,
  form the basis of or be relied on in connection
  with, or act as any inducement to enter into, any
  contract or commitment whatsoever.
• This Presentation has not been approved by the
  London Stock Exchange plc or by any authority
  which could be a competent authority for the
  purposes of the Prospective Directive (Directive
  003/71/EC), nor by any person for the purposes of
  section 21 of the Financial Services and Markets
  Act 2000, nor by any person in any other
  jurisdiction for the purposes of investment
  regulation in such other jurisdiction.
• The information contained in this Presentation is
  selective and is subject to updating, expansion,
  revision and amendment. It does not purport to
  contain exhaustive information in relation to its
  subject matter. Valiant has not independently
  verified any of the information contained in this
  Presentation. Certain forward looking statements
  may be contained in the Presentation. Although
  Valiant believes that the expectations reflected
  in such forward-looking statements are
  reasonable, no assurance can be given that such
  expectations will prove to be correct or
  accurate.
• Valiant, its affiliates and its and their
  management do not make any representation,
  warranty, undertaking or other assurance (express
  or implied) as to the adequacy, accuracy,
  completeness or reasonableness of the information
  and opinions contained in this Presentation and
  no responsibility or liability is accepted by any
  of them for any such information or opinions or
  for any errors, omissions, misstatements,
  negligence or otherwise.

2
3
Corporate Overview
3
4
Company Overview

• Company Valiant Petroleum plc
• Exchange AIM (London Stock Exchange)
• Ticker Symbol VPP
• Listing Date 13 March 2008
• Total Shares Outstanding 26,245,398
• Market Capitalization c.75 MM (as at Nov
  2008)
• Nomad and Broker Oriel Securities Ltd
• Broker Tristone Capital Ltd

4
5
Valiant Petroleum plc Overview

• Valiant is an EP company focused on exploration
  and development in the UK sector of the North Sea
• Founded in 2004, 20 employees
• Raised c.113 MM in equity capital to-date
• Syndicated debt facilities totalling 245 MM
• First production from West Don and Don SW
  anticipated in Q1 2009
• Primary focus on Northern North Sea but growing
  exploration portfolio in West of Shetland and
  Central North Sea
• Well balanced portfolio with significant
  resource upside
• Production growth from two developments
  (Causeway, Crawford)
• Mix of exploration potential with a range of
  low-to-high risk/reward prospects
• Strategy to deliver growth in shareholder value
• Organically through exploration drilling
• Targeted acquisitions (asset and corporate)

Valiant Core Asset Map
Source Company
Source Valiant CPR (RPS)
5
6
Valiant Area of Focus Strategy
Potential for consolidation and asset purchases
to access pan-North Sea growth opportunities
Acquisition Opportunities
Emerging WoS Company-making potential
DSW, Bourbon, Handcross, Katherine, Tybalt, Viola
Diverse exploration portfolio giving exposure to
incremental upside
Core NNS near and medium term production with
significant EA upside
Undeveloped discoveries with lower-risk upside
and development optionality
Banquo, Helena
Value Adding Potential
Emerging CNS Play-type diversification new
opportunity set
Near-term developments driving production growth
and increasing asset diversification
Crawford, Causeway
Production base providing cash flow to underpin
growth
West Don, Don Southwest
6
7
Valiant Team
Phil Crookall (Technical Director) Over 20 years
oil industry experience with Hamilton Brothers,
Ultramar, LASMO, Hardy Oil and Gas, Scott
Pickford and Paradigm. Operational expertise in
development geology and petrophysics. Justin
Morrison (Exploration New Ventures Manager)
Over 20 years in the oil industry including
Burren Energy, Ranger/CNR, British Gas and
Ultramar. Brian Elliot (Operations Director)
Over 20 years oil experience in offshore
developments in North Sea and internationally for
Kerr-McGee China and more recently as Head of
Projects for Maersk North Sea. Gavin Milne
(Financial Controller) Over 17 years experience
as in the oil industry in various senior finance
roles with BP, Highland Energy, Caledonia Oil
Gas, RWE Dea and E.ON Ruhrgas Nick Ingrassia
(Corporate Development/IR) ex-banker with over 7
years experience advising the oil industry
including Morgan Stanley (energy investment
banking) and RBS (structured finance)
Gordon Stollery (Chairman) Gordon has over 30
years of experience founding and managing energy
companies. Ex-President of Highpine Oil Gas
Limited (TSXHPX), ex-CEO of Morrison Petroleum,
co-founded companies including OGY Petroleum
Storm Energy Peter Buchanan (CEO) PhD in
structural geology, 12 years in the oil industry
with companies such as Cogniseis (now Paradigm
Geophysical), Oil Search and Premier Oil.
Ex-director on RBS oil gas team at RBS with
responsibility for North Sea structured
finance. Steve Edgley (Finance Director) 20
years in banking including RBS as Head of Oil
Gas, Structured and Project Finance. Most
recently Finance Director of Caledonia Oil Gas
Limited (sold to E.ON Ruhrgas) Sandy Shaw
(General Counsel) 29 years in the oil gas
industry acting as senior legal counsel and
commercial director for companies including
Consort Resources, LASMO, Esso, Marathon and
Mobil. Kevin Lyon (Non-Exec) Qualified
Chartered Accountant, 16 years at private equity
and venture capital business, 3i plc . Chairman
of MK One, Mono Global, Wyndeham Press, Julian
Graves, and Booker plc. Michael Bonte-Friedhiem
(Non-Exec) ex-banker at CSFB, Morgan Stanley,
and MD in the Energy Power Team at Goldman
Sachs. Non-executive chairman of Mediterranean
Oil and Gas plc.
Plus an addition 12 full-time staff eight of
whom are technically focused
Denotes executive-directors
7
8
Shareholdings Capitalization

• Valiant has raised significant capital in the
  past two years both publically and privately to
  fund the growth of its business
• Four private rounds of equity raising totalling
  63 MM
• Public equity raising of 50 MM in conjunction
  with AIM admission in March 2008
• Total debt facilities of 245 MM
• 200 MM syndicated borrowing base debt facility
• 45 MM of mezzanine debt
• Current financial position (as at 30 Sep 2008)
• 57 MM in drawn debt
• 58 MM cash-on-hand
• Valiant remains fully funded beyond first
  production

(5)
Source Company as at 30 Sep 2008

• Notes
• Total Shares Outstanding
• Diluted Shares Outstanding
• Peter Buchanan (CEO) is the largest individual
  shareholder amongst the directors with 3,353,043
  shares
• Significant shareholders are those holding 3 or
  more of Valiant's Total Shares Outstanding
• Weighted average option price 4.48

8
9
Asset Overview
9
10
Key Development Asset Summary
Source Valiant CPR (RPS)
Source Company
10
11
Exploration Asset Summary
(1)

• Notes
• Valiant net paying interest for initial
  exploration well is 11 following farm-down to
  Fox Petroleum

Source Valiant CPR (RPS), Company
11
12
Don Fields Development Schematic
Source Petrofac
12
13
Dons Development Update

• Northern Producer
• Northern Producer towed to the Don Fields in mid
  November and safely moored between in approx 500
  ft of water
• Offshore installation follows a six month
  refurbishment in Newcastle-upon-Tyne which was
  completed on schedule
• Subsea infrastructure
• Major subsea construction work now complete
• Pipeline lay complete by the Technip CSO Apache
• Work continues through November and December to
  install risers over the mid-water arch and
  install the submerged anchor loading system for
  tanker oil export
• Development drilling
• First production well successfully drilled by the
  John Shaw semi-sub (West Don)
• 2,000 ft horizontal section of the upper and
  lower Etive formation with initial results (oil
  saturation and porosities) at the high end of
  expectations
• Following completion, the John Shaw will move to
  Don Southwest by year-end giving access for tree
  hook-up within January for the first West Don
  producer
• The Stena Spey semi-sub is also due to arrive in
  late January to accelerate completion of
  development drilling.
• Capital costs / First oil
• Capital costs broadly in-line with original
  estimates with minor escalation in line with
  project contingency levels
• First oil still on-track for Q1 2009

Source VPP
Source VPP
13
14
Corporate Update
14
15
Valiant Current 2009 Forward Plan
Source Valiant

• Valiant remains active through the end of 2009
  with both production, development and exploration
  wells being drilled
• Valiant has retained flexibility in its
  exploration program to allow for changes in the
  economic climate
• Full update of the business at the time of
  audited accounts (beginning of April 2009)

KEY
Firm plan
Under Consideration
15
16
Valiant Petroleum Conclusion
Solid Corporate Platform

• Solid reserve base (38.9 MMstb of 2P Contingent)
  and significant leverage to resource upside
• Significant production and cash flow during 2009
  and strong cash resources /debt facilities
• Proven track record of project delivery and
  top-class in-house expertise

Well Balanced Portfolio

• First oil still on track to be delivered in Q1
  2009
• Crawford Causeway progressing well towards FDP
  submission in Q4 2008 / Q1 2009
• Extremely successful in 25th Licensing Round,
  helping build a strong exploration position

Focused Investment Opportunity

• Continued strong news flow over next 12 months
  from to high level of activity
• Focus on the North Sea where the Company has
  successfully built a portfolio of assets
• Maintain flexibility to take advantage of
  opportunities in the current financial climate

16
17
Appendix
17
18
Asset Summary Don South West (SW)
Source Company
Source Valiant CPR (RPS), Operator budget

• Subsea tie-back to the Northern Producer FPF
  (shared with West Don)
• Two high angle producers and two water injection
  wells
• Export is anticipated initially via offshore
  tanker offloading, then exported via host
  platform as access becomes available
• FDP submitted BERR approval is expected in
  first half of 2008
• Long lead primary contracts placed (Rig / FPF)
• Appraisal well drilled 2007 into area A confirmed
  oil in the Brent, Statfjord and Cormorant
  reservoirs
• Partners Petrofac (Operator 60)

Source Company
18
19
Don SW Area Upside
Fault-blocks E 5.2 MMstb net
Don SW Oil Field (2P Reserves)
Fault-block D 2.6 MMstb net
Source Company
Source Valiant CPR (RPS)
Fault-block A 4.3 MMstb net 2C

• Several potential oil bearing terraces around the
  field area
• Terraces represent very short step-outs from
  proven oil accumulations and future production
  can be phased through Northern Producer
• Half of the terraces having a better than 1-in-2
  chance of success (1)

Fault-block B 4.0 MMstb net
Fault-blocks C, GH 18.2MMstb net
Source Company

• Notes
• CPR Report

19
20
Asset Summary West Don
Source Company
Source Valiant CPR (RPS), Operator budget

• Subsea tie-back to the Northern Producer Floating
  Production Facility (shared with Don SW)
• Two high angle producers and one water injection
  well
• Export is anticipated initially via offshore
  tanker offloading then via host platform as
  access becomes available
• FDP Submitted BERR approval expected in the
  first half of 2008
• Partners Petrofac (Operator - 27.7), First Oil
  Expro (19.3), Nippon Oil (18.5), Stratic Energy
  (17.3)

Source Company
20
21
Asset Summary Crawford
Source Company
Source Valiant CPR (RPS), Company estimates
Source Company

• Subsea tie-back to either Harding, East Brae or a
  floating production facility
• FDP submission planned in 2008
• Upside case involves fracture stimulation of the
  Triassic producers as part of the development
  program
• Additional 2C Resources of 2.5 MMstb (net)
  associated with frac stimulation
• 2007 appraisal well discovered oil in both
  Tertiary (60ft oil column vertical depth and
  Triassic (400ft oil column vertical depth, gt1,200
  ft measured depth) - well suspended for re-entry
• Partners Fairfield (operator - 52), Stratic
  Energy(19)

Source Company
21
22
Asset Summary Causeway
Source Valiant CPR (RPS), Company estimates
Source Company

• Subsea development tie-back to Cormorant, Dunlin,
  Thistle or floating production facility
• Four appraisal wells drilled in 2007
• wells tested at rates up to 6,300 bopd
• Field development plan submission planned in 2008
  
• Development plan being considered by the JV
  re-uses the 6 suspended appraisal wells plus new
  water injection wells targeting first oil Jan
  2010
• Partners Antrim Resources (65.5 - operator),
  Nor Energy (10.5), Geysir Petroleum (10)

Source Company
22
23
Company Information

• Nominated Advisor / Broker Oriel Securities
  Limited
• Broker Tristone Capital Limited
• Bankers Bank of Scotland
• Solicitors McGrigors LLP
• Accountants Deloitte Touche LLP
• Competent Person RPS Energy Limited
• Public Relations Aquila Financial Limited
• Registered Office Albion House
• Chertsey Road
• Woking, Surrey
• GU21 6BD
• Main Telephone [phone]
• Enquiries enquiries_at_valiant-petroleum.com
• Website www.valiant-petroleum.com

• Contacts
• Peter Buchanan (CEO)
• 44 1483 755 666
• pbuchanan_at_valiant-petroleum.com
• Steve Edgley (FD)
• 44 1483 755 666
• sedgley_at_valiant-petroleum.com
• Nick Ingrassia (Corp Development/IR)
• 44 1483 755 666
• ningrassia_at_valiant-petroleum.com

23