Vegas Oil and Gas S.A.

East Ghazalat Concession

Western Desert, Egypt
December 2011

Vegas Oil and Gas S.A. intends to divest its entire, operated working interest in the
East Ghazalat Concession, located in the prolific Abu Gharadig Basin in the Western
Desert, Egypt. The offering constitutes an exciting opportunity to acquire a position
Egypt in the material and imminent development of the Safwa-Sabbar structure with first
oil envisaged in Q2 2012, in addition to a comprehensive portfolio of exploration
prospects and leads.
Vegas Oil & Gas S.A.
East Ghazalat Concession - Egypt
Vegas Oil and Gas S.A. (Vegas or the Company) is a private oil and gas company with exploration, development and
producing assets located onshore Egypt. Following a recent portfolio review, Vegas has decided that its interest in the East
Ghazalat Concession located in the Western Desert, is non-core to its long-term strategic aims. The Company has engaged
FirstEnergy Capital LLP (FirstEnergy) as its exclusive financial advisor for the sale of its entire operated interest in the East
Ghazalat Concession, which includes both near term production and significant exploration upside.

Key Opportunity Highlights

Opportunity to enter or augment an existing portfolio
in the proven and prolific Abu Gharadig Basin in the
Western Desert
East Ghazalat
Four significant discoveries made to date on the Safwa- Concession
Sabbar structure

Safwa-Sabbar reserves up to 9.1 MMboe (gross, 2P)

Safwa-Sabbar
Opportunity to participate in near term development Development

with production start-up in Q2 2012

Vegas envisages staged approach to development with

leased EPF

Material working interest and operatorship allow

control over pace of development and exploration
activities

Block is surrounded by existing oil production,

infrastructure and sales line to Alexandria

Attractive portfolio of prospects and leads provides

further upside potential in the block

East Ghazalat Concession

Located 250 km WSW of Cairo in the productive Abu Gharadig Basin

Vegas Oil and Gas (Operator): 50%; Transglobe Energy: 50%

Licence area 645 km2; awarded 5 June 2007

Entered Second Exploration Period (2 years) in June 2010

Commitments for current exploration phase are 1 exploration well and 150km2 3D seismic (both fulfilled)

2D (1,548 km) and 3D (668 km2) seismic available

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Safwa Development Lease
Safwa-Sabbar Structure
Safwa-Sabbar structure is a 3-way dip/fault
closed structure at Late Cretaceous
(Cenomanian) Baharya Fm level

Structure well defined on modern (2008)

3D seismic

Structure comprises 4 culminations within

common lowest closing contour

Four discovery and appraisal wells drilled in 2010:

Safwa-1X, Safwa-2X, Safwa NW-1X and Sabbar-1X

Reservoir consist of good quality Baharya sands, sealed by Abu Roash shales and carbonates

DST rates up to 500 bopd of 33-38o API oil from Upper Bharaya Fm sandstones
Safwa -2X
Drilled 2010
Development Lease Sabbar-1X Upper Baharya Oil Discovery
Declaration of Commercial Discovery granted 30 Drilled 2010 MDT oil sample
Upper Baharya Oil Discovery
April 2011
DST 500 bopd
44 km Development Lease granted 12 July 2011
2 33o API

Licence expiry 29 March 2031

Reserves
Oil in Place: 92 MMboe (2P, gross)

2P Reserves: 9.1 MMboe (gross)

3P Reserves 23 MMboe (gross)

Reserves assessment by Ryder Scott (preliminary

2011 report)

Field Development
Development based on average reserves per well,
allowing a phased and incremental approach
Safwa -1X
Initial production through leased early production Drilled 2010
Safwa NW-1X
facilities, with oil being trucked. Drilled 2010 Upper Baharya Oil Discovery
Upper Baharya Oil Discovery DST 300 bopd
Production rates of up to 800 bopd per well
DST 250 bopd 38o API
First Oil expected Q2 2012 35o API

Exploration Upside
In the wider East Ghazalat Concession, significant additional prospectivity has been identified at Baharya Sandstone and
Abu Roash Sandstone levels in a series of well defined prospects and leads which provides additional upside potential

Page 3
Offering
The East Ghazalat Concession offers an excellent opportunity to access a significant near term development, augmented by a
comprehensive exploration portfolio located in the prolific and producing Abu Gharadig Basin, Western Desert, Egypt. Vegas
preference is for the interested party to acquire its entire working interest for cash, although alternative transaction structures
will be considered.

Transaction Process
Having signed a Confidentiality Agreement, interested parties will be provided with access to an Online Data Room. A physical
data room with access to a seismic workstation and detailed management presentation will also be available at FirstEnergys
office located in London. It is Vegas intention to conclude a definitive agreement by end April 2012.

Online Data Room Open End January 2012

Physical Data Room Open Mid February 2012
Bid Date 18th April 2012

For more information please contact:

Mark Llamas Rolf Bakker Paul Bannister Romain Bohbote

Managing Director Director & UK Co-Head Vice President Associate
Acquisitions & Divestitures Acquisitions & Divestitures Acquisitions & Divestitures Acquisitions & Divestitures
+44 (0) 20 7448 0224 +44 (0) 20 7448 0225 +44 (0) 20 7448 0241 +44 (0) 20 7448 0223
mwllamas@firstenergy.com rebakker@firstenergy.com ppbannister@firstenergy.com rbohbote@firstenergy.com

UNDER NO CIRCUMSTANCES SHOULD VEGAS PERSONNEL BE CONTACTED DIRECTLY WITHOUT THE PRIOR
KNOWLEDGE AND APPROVAL OF FIRSTENERGY

All images contained in this document are sourced from the Operator unless stated otherwise

Cautionary Statement
The information in this marketing document, which does not purport to be comprehensive, has been provided to FirstEnergy by the Company and/or has
otherwise been obtained from publicly available or named sources. No representation or warranty, express or implied as to the accuracy of the information
in this document is or will be given by the Company or their respective directors, officers, employees or advisers or any other person and, so far as permitted
by law, no responsibility or liability is accepted for the accuracy or sufficiency thereof, or for any errors, omissions or miss-statements, negligent or otherwise,
relating thereto. Interested parties should conduct and rely solely on, their own independent evaluation and analysis of the proposed transaction prior to
submitting an offer.
In furnishing this marketing document, neither the Company or FirstEnergy undertake any obligation to provide any additional information or to update
this marketing document or to correct any inaccuracies that may become apparent. The Company and FirstEnergy reserve the right, without advance notice,
to change any and all dates or procedures respecting the matters described herein, or to terminate negotiations at any time prior to the entry into of any
binding contract. The Company and FirstEnergy reserve the right to negotiate with one or more prospective purchasers at any time and to enter into an
agreement for with respect to the offered divestment without prior notice to other prospective buyers and without liability to any prospective buyers.

FirstEnergy Capital LLP is a limited liability partnership registered in England and Wales. Registration number: OC346410
Registered Office: 85 London Wall, London EC2M 7AD, United Kingdom
Authorised and regulated by the Financial Services Authority