Introduction Key highlights• Licence holder: Whalsay (100%)

• Licence P.1078 is valid until 30 June 2021

• All historic wells fully P&A’d in accordance with applicableindustry and regulatory standards

• Large in-place resources of 912 MMstb (P50), 10-11o API oil with a well-connected and well-defined reservoir with excellent aquifer support

• Extensive data set from systematic appraisal programme, including a 68-day EWT in 2012, which improves production certainty

• New, conventional, phased development plan has been verified through independent validation processes and analogue data

• Proposed development concept: initial phase focused on core area using 20 well slot platform connected to an FSO vessel

– Costs to first oil of $729MM

– Production rates of up to 45,000 bopd

– 131 MMstb (P50) recovery at $60 / bbl Brent oil price over 35-year economic field life

• Pre-tax economics: NPV10 $690MM, 27% IRR, three-year payback

• Significant upside potential from incremental projects

• Substantial historical tax pool has been accumulated

• Offering majority equity and operatorship

• Flexible farm-in terms and structure available with the opportunity for the new operator to select the development plan

Gneiss Energy has been retained by Whalsay Energy Limited (“Whalsay”)to secure partners to participate in the development of the Bentley field,located in Block 9/3b (Licence P.1078) in the Northern North Sea.Whalsay holds a 100% interest in the licence.

The Bentley field is located in 110m of water within the establishedQuad 9 heavy oil region, which has >4 bnbbls discovered to-date. It is asimple four-way dip closed structure located at ~3,600 ft TVDSS.

The field has been appraised by eight reservoir penetrations and flowtests, including a 68-day Extended Well Test (EWT) in 2012 using a duallateral horizontal well. Bentley oil is 10-11o API.

Whalsay has been engaged since mid-2017 in developing an updated,conventional, phased development plan, which has been independentlyverified as technically robust, commercially appropriate and economicallyattractive.

The proposed development plan targets an initial development phaseconcentrated in the core area of the field (CAD), producing at rates of upto 45,000 bopd. It is based on utilising a 20 well slot platform, with 17 duallateral ESP producers and three produced water re-injection wells,installed with conventional topsides fluid handling facilities processingBentley crude to export specification. The platform will be connected toan FSO vessel, and oil exported in 500k bbl parcel sizes via shuttle tanker.

Cost to first oil is estimated at $729MM. At $60 / bbl Brent flat,P50 reserves on the core area are 131 MMbbls, with an economic field lifeof 35 years. The pre-tax NPV10 is $690MM with a 27% IRR.

Numerous additional opportunities exist beyond the initial development.

Whalsay is offering the potential to become the majority partner andoperator of the Bentley licence. This would include selection of the finaldevelopment concept solution. Whalsay is flexible with respect to theterms and structure of a farm-in.

Asset location

MMstb P90 P50 P10

Oil initially in-place

Phase 1: core field area 464 578 682

Full-field 688 912 1,152

Reserves at $60 / bbl flat ($54 / bbl net after 11% crude discount)

Phase 1: core field area 81 131 169

OIIP and reserves

Conventional development concept

Bentley field: farm-in opportunity912 MMstb OIIP: new, phased development with attractive economics

Exploration and appraisal history

• Since its discovery by Amoco in 1977, Bentley has been appraised by eight reservoir penetrations

• Primary focus has been the Dornoch Formation sandstones

• Prior to 2003, four wells were drilled in Block 9/3, three within what is now known as the Bentley field

– Confirmed a significant column of oil but failed to flow to surface

• Three drilling programmes have since been conducted on the field, all resulting in successful flow tests

Well name Type Completed Operator Hydrocarbons Tests

Exploration history

9/3-1 Exploration 1977 Amoco 81 ft oil column Nitrogen lift. Oil too heavy to flow

9/3-2A Appraisal 1983 Conoco 92 ft oil column ESP lifted DST. No flow due to pump failure

9/3-3 Appraisal 1986 Conoco Dry hole Offset structure

9/3-4 Appraisal 1986 Conoco 84 ft oil column Not tested (commitment well, low oil price environment)

Appraisal history

9/03b-5 Appraisal 2007 Whalsay 87 ft oil column ESP lifted, average 125 bopd with high skin

9/03b-6 Appraisal 2010 Whalsay 113 ft oil column Logged and pressure tested

9/03b-6Z Appraisal 2010 Whalsay 1,821 ft oil section ESP lifted, 36 hour DST reaching stabilised 2,900 bopd

9/03b-7 Appraisal 2012 Whalsay 2,214 ft oil section ESP lifted extended flow test, reaching 3,500 bopd

9/03b-7Z Appraisal 2012 Whalsay 2,042 ft oil section ESP lifted extended flow test, reaching 3,000 bopd

2012 EWT summary

Key highlights

• 9/03b-7 and 9/03b-7Z wells were drilled and completed utilising dual lateral and smart completion technology to enable flowfrom each wellbore independently and together with two horizontal reservoir sections of 2,214 ft and 2,042 ft, respectively

• Dual ESP artificial lift systemdelivered up to 3,500 bopd from one lateral

• 68-day production period, with 57 operational days, produced 148,559 bbls oil of export quality Bentley crude which sold tothe market

• Extensive reservoir and production operational and development data collected including live Bentley crude samples

Key learnings

• Demonstrated commercial flow rates are sustainable, with a well-definedrecovery mechanism from the underlying aquifer acting as a positive drivemechanism, providing effective vertical sweep and excellent pressure support

• Drilling, completions, processing and export programme supported bysubsequent engineering and laboratory validation replicate much of what isproposed in the current development plan, reducing developmentuncertainties and improving both technical credibility and cost estimates

Bentley subsurface overview

• Located on the East Shetland platform, 160 kmeast of the Shetlands Isles in 110m water

• Lies within the established Quad 9 heavy oilregion, which has >4 bnbbls discovered to-date

• Simple four-way dip closed structure, elongatedin a north-south direction (15 km x 6 km) andlocated at a depth of ~3,600 ft TVDSS, withcommon OWC of 3,727 ft TVDSS

• Proposed development area (CAD) has beenfocus of appraisal

• Bentley oil is 10-11o API, has an in-situ viscosity of1,500 cP at a reservoir temperature of 37.5o C,90% net to gross (N/G), 34% porosity and is in theDornoch sandstone formations of the UpperPaleocene and Lower Eocene

• Excellent reservoir permeability which yields asimilar oil mobility to other heavy oil fields in theregion (Mariner, Bressay,Kraken)

• Oil leg of 120 ft is proven from the wells with upto 200 ft observed from seismic interpretation

• Extensive underlying aquifer up to 400 ft thick,which provides important pressure support anddrive mechanismto the development

Top Dornoch reservoir and depth

Reservoir Description

Top reservoir clearly defined on seismic with straightforward depth conversion

High quality reservoir extends across area of proposed development and is well connected laterally and vertically

Proposed development concept

• Standalone development concept, initiallytargetingthe core area of the field

• PUQ platform including a 20-slot well bay

• Conventional topsides fluid handling facilitiesbased on UKCS heavy oil analogues, processingand blending Bentley crude to export specification

• Total fluid handling capacities designed to 45,000bopd and 180,000 bwpd

• Platform connected to a leased, redeployed FSOvessel via three subsea pipelines

• Future gas import planned post first oil

• Wells: 17 dual lateral ESP producers and threeproduced water re-injection wells

– Four-year workover cycle

• Sequential drilling of the 17 producer and threeproduced water reinjection wells, brought on-stream as they are drilled and completed

• All wells drilled via a heavy-duty jack-uppositioned alongside the platform andcantilevered over the platform well bay

• Oil exported in ~500k bbl parcels via shuttle tanker

• Shuttle tanker will also bunker diluent crude to theFSO for storage and distribution to the processingplatform for blending to achieve exportspecifications

Lifecycle cost overview Production profile

Bentley development schematic

Core Area Development (CAD) well locations

$729MM cost to first oil

B7 development total oil (MMstb)

Cost elementUnit cost($ / bbl)

Platform $6.02Pipelines $0.39Drillex $4.61FSO lease $2.42Workovers $3.87Opex $14.12Abex $2.06Total lifecycle cost $33.50 / bbl

Abex6%

($2.06)

Platform18%

($6.02)

Drillex14%

($4.61)

Opex42%

($14.12)

Workovers12%

($3.87)

FSO lease7%

($2.42)

Pipelines1%

($0.39)

bbl unit cost breakdown

(2,000)

(1,500)

(1,000)

(500)

-

500

1,000

1,500

2,000

2,500

3,000

(400)

(300)

(200)

(100)

-

100

200

300

400

500

600

2020 2025 2030 2035 2040 2045 2050 2055 2060

Cu

mu

lati

ve c

ash

flo

w (

$m

)

Yea

rly

cash

flo

w (

$m

)

$500 $2,500 $4,500

- $300 $600 $900 $1,200

15% 25% 35%

About Whalsay

• Private company, which is a qualified UKCS operator and has a multidisciplinary technical and operational team

• Only asset is 100% interest in Licence P.1078, containing the Bentley field

• New leadership team put in place in 2017 to build a sustainable production and development oil and gas company in the UKCS

• Four principal shareholders are funds managed by BlackRock, QVT Financial, Warwick Capital and Whitebox Advisors

• Fully verified Safety, Health, Environmental and Quality Management System

• Delivered an Extended Well Test and, more recently, decommissioned the remaining wells on Bentley

Process

Key contacts

Jon Fitzpatrick

jon.fitzpatrick@gneissenergy.com

+44 7780 708900

Paul Weidman

paul.weidman@gneissenergy.com

+44 7717 426958

Rosemary Johnson-Sabine

rosemary.johnson-sabine@gneissenergy.com

+44 7565 087386

• All communication and requests for further information should be made through Gneiss Energy

• Interested parties should contact Paul Weidman to obtain a Confidentiality Agreement

• Upon executing the Confidentiality Agreement, parties will be granted access to an online Virtual Data Room

• Management presentations and Q&A sessions will take place in London and Aberdeen

• The timeline will be communicated to parties during the process

Economics

• Economics are based on $60 / bbl Brent flat and in real terms(no price or cost inflation)

• Associated 11% market discount for Bentley crude based onEWT export cargo and independent crude valuation studies

• First oil in December 2023, with capex spend beginning in 2021

• Post-tax values include Whalsay’s tax loss pool

Reserves (MMstb)

NPV10 ($MM) IRR Economic field lifePre-tax Post-tax Pre-tax Post-tax

1P 81 247 247 18% 18% 19

2P 131 690 623 27% 27% 35

3P 169 1,158 937 34% 32% 35

Pre-tax NPV10 ($MM)

Pre-tax IRR

Pre-tax cumulative cash flow ($MM)

Base case: $690MM

Base case: 27%

Base case: $2,435MM

35%

34%

34%19%

18%

21%

$2,707

$4,373

$3,605$1,310

$1,020

$2,173

$865

$1,158

$1,056$320

$247

$515

Brent ($50, $60, $70)

Production (P90, P50, P10)

Capex (+ / - 20%)

Brent

Production

Capex

Brent

Production

Capex