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TSX - V: MNP OTCQB: MNAP www.mnppetroleum.com MNP Petroleum Company Presentation August 2014

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Page 1: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

TSX - V: MNP

OTCQB: MNAP

www.mnppetroleum.com

MNPPetroleum

Company Presentation August 2014

Page 2: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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WHO WE ARE

MNP is changing from Exploration to Exploration & Production

Focus in Central Asia for:

Exploration

Production

Diversified asset portfolio in a basin with proven petroleum system

Low and medium risk plays

Shallow and deep targets (100 m to 5000 m)

Page 3: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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MNP’ Assets

Country E & P Operator Working Interest BlocksGross Acreage

(000’s acres)

Tajikistan Exploration MNP 90 % 2 839

Mongolia Exploration MNP 74 % 2 746

Albania,

France &

Australia

Exploration Petromanas1.2 %

(Equity Interest)8 2’890

Page 4: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Management Team

Werner Ladwein

Chief Executive Officer & President

• Former Head of Exploration and Research of OMV; CEO of various

international operations with OMV; E&P Executive Director Petrom

and member of the Board; Director of several private corporations

• +30 years experience in the oil & gas industry

• MBA, PhD in Geology and Mineralogy

Peter-Mark VogelChief Financial Officer &

Corporate Secretary

• Founding Partner of MNP, Director of several private corporations

• Investment banking and asset management experience at various

Swiss and foreign banks

• MBA and CFA

Traian RabagiaSenior E & P Advisor

• MD Danubian Energy

• 15 years experience in industry, oil and gas companies (Amromco

LLC) as well as service industry (Schlumberger)

• Master of Science in Petroleum Geology

Page 5: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Board of Directors

Heinz Juergen Scholz

Chairman of the Board

• Founder of MNP

• Plays a critical role in targeting, appraising and acquiring the rights

to major oil and gas assets in the FSU

• Experienced in construction of factories and telecommunication

networks in the FSU

Werner Ladwein

CEO & President

• Former Head of Exploration and Research of OMV; CEO of various

international operations with OMV; E&P Executive Director Petrom

and member of the Board; several private corporations

• Petrom Energy Inc. and others

• +30 years experience in the oil & gas industry

• MBA, PhD in Geology and Mineralogy

Richard Schenz

Director

• Former CEO of OMV from 1992 – 2001

• Vice President of the Austrian Federal Economic Chamber;

President of the Austrian Chapter of the International Chamber of

Commerce

• Former Chairman of the Austrian Commission for Corporate

Governance

• PhD in Technical Physics

Page 6: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Board of Directors

Darcy Spady

Director

• Former Chairman of the Society of Petroleum Engineers Calgary

Section, Client Solutions for the Canadian Business Unit of Sanjel

Corporation, Green Imaging Technologies, Inc. and Vice President

and Managing Director of Saint Brendan’s Exploration Ltd.

• He held executive positions in two TSX Venture Exchange

companies: Contact Exploration Inc. and Petroglobe Inc.

• Worked for the Schlumberger organization and in various

management position within the Triana Energy team.

• Bachelor of Science degree in Petroleum Engineering and is a

P.Eng. in the Provinces of Alberta and New Brunswick.

Michael Velletta

Director

• Director of several public companies

• Founding Partner of the law firm Velletta & Company

• Governor of the Trial Lawyers Association of British Columbia, and a

member of the Canadian Bar Association, Association of

international Petroleum Negotiators and the International Institute

of Business Advisors

Page 7: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Focus: Fergana Basin

Oil and Gas fields

Exploration Project

• 3396 sqkm acreage (839 acres)

• 1310 km 2D seismic acquired to date

• Commencement of drilling Q3 2014

Rehabilitation/Production Project (in process to acquire)

• 8 producing fields

• Rehabilitation

• Upside: appraisal & development,

redevelopment, exploration

Page 8: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Exploration Fergana Basin

Tajikistan

Page 9: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Exploration: Key Wells 2014/2015

First two exploration wells:

Production Licenses

Somon 2011/12 Acquisition

Somon 2010 Acquisition

Somon 2007 Acquisition

Non Somon Acquisition

West Supetau

TD: 4500 m; Vertical: 3550 m

Analog: Mingbulak field, Mahram field

2011/12 Acquisition

2010 Acquisition

2007 Acquisition

Earlier Acquisition

North Western License

Western License

Oil and Gas fieldsLeads/Prospects

Kayrakkum

TD: 5200 m; Vertical: 5050 m

Analog: Niazbek-Karakchikum field

Exploration licenses

LEGEND

Rehabilitation Project

Oil and Gas fields

Page 10: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Exploration: Kayrakkum Prospect

• Target depth 4700–5000 m, TD: 5050 m

• Analog: Niazbek-Karakchikum field

Paleogene

reservoirs

Niazbek-

Karakchikum

KayrakkumPaleogene

Primary

targets

Page 11: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Exploration: West Supetau Prospect

• Target depth 3800 – 4200 m; TD: 3550 m

• Analog: Mingbulak and Mahram

• Closest production from same reservoir in Mingbulak (>250 MMBOE reserves)

• Closest discovery in same reservoir, however, only partly developed: Mahram

Line FESN 10B-03

NS

Pg

Pz

Msg1

Msg2

Russian well,

did not reach

Paleogene targets

MingbulakWest SupetauMahram

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Exploration Resources

• Proven petroleum systems

Bordering producing fields as analogues

Unrisked Prospective Resources (Gross / MNP working interest 90%)

LicensesOOIP

Mean MMBO

Prospective Resources

Mean MMBOE

Northwestern 1,036.8 286.2

Western 544.9 277.5

Total 1,581.7 563.7

Unrisked Contingent Resources (Gross / MNP working interest 90%)

LicensesOOIP

Mean MMBO

Contingent Resources

Mean MMBOE

Northwestern 137.5 31.5

Source: 51-101, effective January 10, 2014

Page 13: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Exploration Project Terms

• Production Sharing Contract

Terms confidential

No royalty

100 % cost recovery

No profit tax

No export limitations

Exploration phase expires July 2014 respectively July 2016,

Extension of Initial Exploration Period of each license is possible

30 years development and production period plus two extensions of 5 years each

• Project Costs

Drilling cost per exploration well: about USD 22 million

Seismic acquisition costs up to date: about USD 15 million for 1310 km 2D

Page 14: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Conclusion Exploration Fergana Basin

Licenses:

• Connected and forming one large area

• Modern seismic acquired 2008-2012

• Prospects and leads defined

• Two drill ready prospects

Critical for spud (rig availability and LLI)

Drilling site in preparation

Analogues:

• Fields at the edge of the basin: Tajikistan and Kyrgyzstan

• Fields at the center of the basin: Uzbekistan and Tajikistan

Part of structures in Tajikistan were known during Soviet Union time; however,

all drillings on subsalt structures failed due to technology and project management

Page 15: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Rehabilitation Fergana Basin

Tajikistan

(in process to acquire)

Page 16: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Location of Producing Fields

• 8 producing fields

• 30+ MM BO 2P reserves

• Current production: < 250 bopd

Production Licenses

West Supetauprospect

Kayrakkumprospect

North Western License

Western License

Oil and Gas fields

Leads/Prospects

• Fields run down due to lack of:

technology

investment

• Rehabilitation

• Upside:

redevelopment appraisal & development

exploration

Page 17: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Producing Fields

Ng

Msg

Pg K

Pz

Deep Fields Intermediate Fields Hanging Wall Reservoir

Shallow field alignment

Footwall Reservoir

N S

Oil and Gas fields

Leads/Prospects

500m

0

500m

1000m

1500m

2000m

2500m

3000m

3500m

Pz

Page 18: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Production Potential

0

5

10

15

20

25

30

35

40

0

10'000

20'000

30'000

40'000

50'000

60'000

70'000

80'000

Oil P

rod

ucti

on

Ra

te (

STB

pe

r Y

ea

r)

Oil Production Rate (STB per Year) vs. Time

196

4

196

9

197

4

197

9

198

4

198

9

199

4

199

9

200

4

200

9

Nu

mb

er

of

acti

ve

we

lls

Increase production through:

• proper maintenance including investment in

new equipment

Starting with current active wells

Using shut-in and abandoned wells

(totally 230 wells had produced)

• Redevelopment of fields

• Appraise and full development of partially

developed field

• Exploring missed extensions (blocks) and

prospects

• Sell oil production locally for competitive

price in comparison to import price of low

sulphur crude

Page 19: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Conclusion Fergana Basin

• Exploration:

Resource potential Fergana Basin of 4 BlnBO (EIA, USGS); of which 75 % yet to be discovered

two exploration areas near producing fields

Proven petroleum system

Subsalt plays at center of basin

Fault related structures at the edge of the basin

• Producing assets bordering the exploration block

Infrastructure available

Current production sold locally

Infrastructure to export available

• Exploration & Production in one large area

Efficient exploration, appraisal and development with reduced risk

Page 20: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Exploration East Gobi BasinMongolia

Page 21: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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MNP’ Exploration Blocks: XIII and XIV

MNP: 74%WI, operator • Shunkhlai Group: 10 % WI

• Swiss Group: 8 % WI

• Hong Kong Group: 8 % WI

Acreage• 3,018 sqkm

Close to existing production• Acreage surrounds two

producing fields in PSC 97

(100 % Sinopec)

2D Seismic acquired• To date 1,946 km

Focus on two sub-basins

Page 22: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Good Neighborhood

Blocks XIII and XIV surround PSC 97 operated by Sinopec subsidiary Dongsheng:

• Zuunbayan and Tsagaan-Els oil fields

• Current production approx. 1,600 bopd; API 22 – 35°

• Primary exploration targets in the East Gobi Basin are Cretaceous fluvial sandstone

reservoirs (in Zuunbayan and Tsagaan-Els between 425 m and 2,500 m depth)

• Well cost between 1 and 2 million USD

Tsetserleg

BLOCK XIV

BLOCK XIII

PSC97

BLOCK XIII

BLOCK XIV

2011

2010

0 5 10 15 20 km

BLOCK XIV

BLOCK XIV

BLOCK XIII

PSC97

BLOCK XIII

BLOCK XIV

BLOCK XIV

BLOCK XIII

PSC97

BLOCK XIII

BLOCK XIV

BLOCK XIV

BLOCK XIII

PSC97

BLOCK XIII

BLOCK XIV

BLOCK XIV

BLOCK XIII

PSC97

BLOCK XIII

LEGEND:

Wells 2012

Seismic acquisition:

Drilling program:

Subbasin

Relinquished areas 2012

2012

Erdene

BLOCK XIV

BLOCK XIV

BLOCK XIII

PSC97

BLOCK XIII

Relinquished areas 2013

East Sainshand A1(planned)

WestSainshand

Ger Chuluu

Ger Chuluu D1

Ger Chuluu A1

Unegt

Producing oil fields

EastSainshand

Page 23: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Prospective Areas

Before Drilling Ger Chuluu Subbasin(Focus on 6 Subbasins)

After Drilling Ger Chuluu Subbasin(Focus on 3 Subbasins)

OOIP unrisked (Mstb) P50 (Gross / MNP Working Interest 74%)

TOTAL 362,697

Source: internal

Page 24: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Production Sharing Contract

• 100% cost recovery

• No export limitations

• Exploration phase expires May 20, 2015

• Exploration phase extension can be

extended for two additional years

• Production licenses for 20 years plus two 5

year extensions

Profit Oil Splits

Average Monthly Production Contractor Government

≤ 5,000 bbl/d 56.5% 43.5%

≥ 5,001 and < 10,000 bbl/d 51.5% 48.5%

≥ 10,001 and < 15,000 bbl/d 46.5% 53.5%

≥ 15,001 and < 20,000 bbl/d 41.5% 58.5%

≥ 20,000 bbl/d 36.5% 63.5%

Royalty 12 %

Profit Oil

depending on

production

36.5 – 56.5 %

(Contractor)

Cost Oil 40 %

Page 25: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Drill ready prospects

Shallow exploration (cost of a well: 1 - 2 million USD)

Infrastructure available (producing fields in neighborhood)

Recoverable past costs to date: 13 million USD

Market for crude oil (Mongolia, China)

No export limitations

Opportunity to test the target: 1 - 2 wells

Conclusion East Gobi Basin

Page 26: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Equity Interest in Petromanas

Page 27: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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1.2 % Equity interest in Petromanas (TSX.V:PMI)

• Assets in Albania, France and Australia

• Main activity in Albania:

Tested Sphirag-2

Drilling Molisht-1

For more information please visit: www.petromanas.com

Page 28: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Financial

Page 29: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Capital Structure

Exchange TSX Venture OTCQB

Symbol MNP MNAP

Market Capitalization CAD 13.81 million USD 12.08 million

Stock Price (August 27, 2014) CAD 0.08 USD 0.07

52 Week Range CAD 0.035 – CAD 0.087 USD 0.04 – USD 0.09

Common Shares (outstanding) 172,592,292

Options (avg. strike price USD 0.25) 12,100,000

Common Shares (fully diluted) 184,692,292

Insider Ownership 22%

Cash & restricted cash* USD 17,047,161

* includes refundable deposit for rehabilitation project (June 30, 2014)

Page 30: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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Summary

MNP is changing from Exploration to Exploration & Production

Exploration acreage in Fergana Basin, Tajikistan

Proven Petroleum System

High potential prospects

2 prospects ready to be drilled

Acquisition of producing assets in Fergana Basin, Tajikistan

Rehabilitation

Redevelopment

Exploration

Exploration drilling started in Mongolia and Albania

Diversified Asset Portfolio

Exploration acreage with different risks

Producing assets (rehabilitation project)

Page 31: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

Disclaimer

This Presentation contains forward‐looking statements. Forward‐looking statements are projections of events, revenues, income, future economic performance or management's plans and

objectives for future operations. In some cases you can identify forward‐looking statements by the use of terminology such as "may", "should", "anticipates", "believes", "expects", "intends",

"forecasts", "plans", "future", "strategy", or words of similar meaning. Forward-looking statements in this Presentation include those concerning the company’s plans to drill new wells in 2014, its

plans to complete the acquisition and rehabilitation of a producing asset in Tajikistan, all of which assume the availability of adequate working capital. While these forward‐looking statements

and any assumptions upon which they are based are made in good faith and reflect current judgment regarding the direction of MNP’s business, actual results will almost always vary, sometimes

materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this presentation. These statements are only predictions and involve known and

unknown risks, uncertainties and other factors, including the risks presented by the availability of working capital, field conditions and the risks described in MNP’s disclosure documents filed on

SEDAR and with the U.S. Securities and Exchange Commission, copies of which are also available on the company’s website. Any of these risks could cause MNP’s or its industry's actual results,

levels of activity, performance or achievements to be materially different from those expressed or implied by the forward‐looking statements in this presentation. Except as required by applicable

law, including the securities laws of the United States and Canada, MNP does not intend to update any of the forward‐looking statements to conform these statements to actual results.

Contact Information:

MNP Petroleum Corp. Dr. Werner Ladwein, CEO & President

Bahnhofstr. 9, P.O. Box 155, Peter-Mark Vogel, CFO & Corporate Secretary

CH-6341 Baar, Switzerland

Tel: +41 44 718 10 30 Email: [email protected]

Fax: +41 44 718 10 39 Website: www.mnppetroleum.com

(TSX-V: MNP; OTCQB: MNAP)

Page 32: PowerPoint Presentation · Title: PowerPoint Presentation Author: trosenast Created Date: 9/12/2014 4:34:39 PM

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100 %

74 %

CORPORATE STRUCTURE

MNP Petroleum

Corporation

(USA)

DWM Petroleum AG

(Switzerland)

Manas Petroleum AG

(Switzerland)Manas Management Service Ltd.

(Bahamans)

Petromanas

Energy Inc.

(Canada)

CJSC South

Petroleum

Company

(Kyrgyzstan)

CJSC Somon Oil

Company

(Tajikistan)

Gobi Energy

Partners GmbH

(Switzerland)

Gobi Energy

Partners LLC

(Mongolia)

100 %

90 %

100 %100 %

25 %1.2 %

DWM Energy AG

(Switzerland)

TF Petroleum AG

(Switzerland)

Petroleum Sugd

(Tajikistan)

65 %*

100 %

*in process to complete

EPA.at Beteiligungsgesellschaft

mbH

(Austria)

57.42 %

Listing on: TSX – V and

OTCQB