1. Aberdeen University Trading and Investment Society Energy Sector Overview 30/10/13

2. Structure Energy Sector Overview Subsectors Growth Analysis Recommended Stocks (SWOT Analysis) Cairn Energy PLC (CNE) - Andrew Douglas IGAS Energy PLC (IGAS) - Ally Dickson Circle Oil PLC (COP) - Alex Nargol

3. Subsectors The 6 constituents of the energy sector Renewable Energy Equipment Oil Equipment & Services Alternative Fuels Exploration & Production Pipelines Integrated Oil & Gas The rise of renewables Forward Thinking Industry 1 Year Change Market Cap (USD) Renewable Energy Equipment +131.39%6.0bn Oil Equipment & Services +22.48%711.0bn Alternative Fuels +39.01%85.8bn Exploration & Production +29.46%1.6tn Pipelines+4.68%464.0bn Integrated Oil & Gas +2.25%2.7tn

4. Growth Energy is fundamental global growth – Emerging Markets Which type of energy?

5. Analysis Unique reasons for price movements: Price of oil - OPEC Government ‘responsibility’ - Green commitments Political instability – Syria, Libya, Egypt etc.. Geological risk - Antarctic drilling Disappointing reserves - High start up costs

6. Stock Recommendation (SWOT) Andrew Douglas Stock recommendation: Cairn Energy PLC (CNE) Cairn Energy PLC is one of Europe’s leading independent oil and gas companies. Their headquarters are located in Edinburgh and are a constituent of the FTSE 250 on the London Stock Exchange. Operations UK & Norway Atlantic Mediterranean

7. Strengths 20 Year Track Record Strong Cash Flow – UK & Norway Asset Value vs. Market Cap – $4,018.0m (June 2013) vs. $1,690.9m (October 2013) Risk Adverse Exploration Profile - Different regions, more opportunity Weaknesses Slowdown in economic growth Political and policy uncertainty Opportunities 18 month exploration period – Greenland, Morocco, Senegal, Ireland and Spain Rise of emerging markets – Push energy demand for years to come Threats Miss drilling expectations Europe instability

8. Stock Recommendation (SWOT) Ally Dickson Stock Recommendation – IGas Energy plc IGas Energy is a leading British oil and gas explorer and developer, producing approximately 3,000 barrels of oil and gas a day from over 100 sites across the country, with significant potential yet to be delivered from our assets. It is engaged in both unconventional and conventional hydrocarbons on-shore in Britain. In the North West and Staffordshire it has more than 500,000 acres under license. Largest publicly owned onshore oil and gas company in the UK = SHALE GAS.

9. Strengths: Licences for nearly all of UK onshore areas; Drilling appraisal wells in Staffordshire Q4 2013 – with an expected result of between 20tcf – 170tcf of natural gas. The lowest estimate could power the UK for 6 years; and Downside protection – 3000boe per day (revenues of £68.3m). Weaknesses: No ‘fracking’ licences yet – but applying after appraisal; and Debt – up front costs of o+g exploration ca. £200m. Opportunities: Licencee for a large chunk of the UK’s shale gas (see USA); UK Energy independence (see Grangemouth fiasco); and Government cooperation and accommodation (tax rates <32% from 81%); Threats: Greenpeace and other environmental campaigns – amelioration; Dry Wells; and Natural Gas pricing.