1. AACC PRESENTATION Houston Energy & Technology Conference
Our Investment Criteria for Australia
May 4, 2017 1

2. DISCLAIMER & FORWARD LOOKING STATEMENTS
Certain information respecting Discovery and Discovery’s project constitutes “forward-looking information” within the meaning of the United States Private Securities Litigation Reform Act of 1995, which may include, but is not limited to, statements with respect to the timing and amount of estimated future production. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Often, but not always, forward-looking statements can be identified by such words as “plans”, “expects”, “intends”, “forecasts”, “anticipates”, “is expected”, “budget”, “scheduled”, “estimates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Discovery and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
The content of this presentation is provided for informational purposes only, and Discovery bears no responsibility (and shall not be liable) for the accuracy or completeness (or lack thereof) of any information contained therein. Discovery makes no representation regarding the information contained in this presentation. Discovery has not made any independent verification as to the accuracy or completeness of this information. Each interested party should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the information contained herein. Discovery has no obligation to update or supplement any information or otherwise provide additional information.
This presentation has been prepared to assist an interested party to make its own evaluation of Discovery and does not purport to be all inclusive or to contain all of the information that an interested party may consider material or desirable in making its evaluation. Each interested party should take such steps as it deems necessary to assure that it has the information it considers material or desirable in making its evaluation and should perform its own independent investigation and analysis of Discovery.
Although Discovery believes that the expectations reflected in such forward- looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Discovery cautions that actual performance will be affected by a number of factors, many of which are beyond Discovery’s control, and that future events and results may vary substantially from what Discovery currently foresees. Discussion of the various factors that may affect future results is contained in Discovery’s Annual Report on Form 10-K, which is available at or Discovery’s forward-looking statements are expressly qualified in their entirety by this cautionary statement. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.
This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any offer of any nature shall be made only pursuant to binding definitive documentation. 2

3. WHO IS DISCOVERY ENERGY
Publicly reporting oil and gas Company based in Houston with operations in the Cooper Basin, South Australia
Our primary asset is a Petroleum Exploration Licence (PEL) which was acquired in 2012
PEL 512 is located in the Western Oil Flank of the Cooper Basin and consists of more than 584,000 acres
Over US$10 million invested so far in developing PEL 512
More than US$10 million budgeted for exploration activities in
PEL 512 Project
(Western Oil Flank)
584,651 Acres

4. WHAT WE FOUND IN AUSTRALIA
Stable Socio-economic platform
Clear and transparent regulations and government
British-based contract legal system
Stable or hedge able currency
Free trade policies
Established oil and gas markets and Infrastructure
Extensive online oil and gas databases
Exploration rights available directly from government
High Net Revenue Interest economics
Keith I am trying to convey the vastness, but also have the bullet points… any ideas?

5. WHY THE COOPER & EROMANGA BASINS
Located in Queensland/South Australia
Cooper Basin covers approximately 32 million acres and developed in the late Carboniferous/early Permian
Maximum thickness of sediments – ~2,750 meters (9,000 feet)
Eromanga Basin covers approximately 250 million acres overlaying the Cooper Basin
It developed as an interior sag over central & eastern Australia
First gas discovered – 1963
First oil discovered – 1970

6. WHY WE LIKE SOUTH AUSTRALIA
South Australia is pro-development and works with industry participants to constructively manage its oil and gas resources
Data sharing of all seismic, well and technical data, in an easy-to-access via public website
Cooperation among neighbors - companies share and collaborate
Exploration similarities to that in West Texas during the 1960’s, but with modern geo-science tools
Keith, Do we have a good photo or graphic to fit on the right of this slide?

7. WHAT HAS THE COOPER BASIN PRODUCED
Australia’s largest and most mature conventional onshore hydrocarbon basin with 50+ years of production history
More than 3,400 wells drilled; average depth of just 1,350 metres (4,400 feet)
High quality reservoirs, some with stacked pays, produce high well flow rates
Produced in excess of 180 Mmbbls of oil, 81 Mmboe of condensate
Produced 6.9 Tcf of natural gas and 79 Mmboe of natural gas liquids
Source: DMITRE PEPS Database 7

8. WHAT IS THE STATE OF COOPER INFRASTRUCTURE
Regional Transmission
Oil and gas is transported to a central processing center located at Moomba by either tank wagon trucking or gathering pipelines
Gathering system expending to facilitate increased production
Recent addition of an 18” trunk line to the Moomba Plant with capacity of >20,000 Bopd
Oil and liquids piped from Moomba to Brisbane or Port Bonython for export to world markets
Moomba
Terminal
Pipeline to Port
Bonython
Pipeline to Brisbane
PEL 512 Licence
Oil Pipelines
Gas Pipelines
To Gladstone
To Mt. Isa
To Sydney
To Adelaide
Cooper Basin
To Brisbane
Lycium
Hub
New 18” Trunk Line
Ballera Gas Plant
Eromanga Basin
Moomba Gas Plant
Source: DMITRI, Beach Energy, Santos

9. WHAT ARE THE COOPER BASIN ECONOMICS
Shallow low-cost conventional wells at ~US$1.8M
Rapid cash flows, quick drill and tie-in periods range from 45 to 90 days from discovery to revenue
Typical economic threshold for a well is 65,000 Bbls (200 Bopd) of initial annual production assuming a post-drill price of US$50/Bbl
Butlers-1 Well on PEL 92 – drilled in 2009 and had an Initial Flow Rate of 2600 Bopd and reported to have 2.1 Mmbo proved and probable reserves
Recent operating costs reported by nearby operator at US$20 per barrel
Net backs based on US$50 Brent pricing calculates to US$30 per barrel

10. HOW DO WE VIEW AUSTRALIAN INVESTMENT
Australian offers attractive opportunity for investment for conventional oil and gas exploration and development
Broad oil and gas resource base with established exploration, processing, transportation, service and market industries
Cooperative government, industry and local community stakeholders
Cooper Basin’s Western Flank where Discovery is currently focused, provides shallow, low-cost, highly successful exploration experience
Profitability has been sustained during the recent dramatic downturn in oil prices

11. Discoveryenergy.com One Riverway, Suite 1700
350 Collins Street, Level 8
Houston, TX 77056
Melbourne 3000 Australia P: P: F: F:
Discoveryenergy.com