----

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | Production is expected to average between 20,000 Bopd and 21,000 Bopd, a 9% to 15% increase over the 2013 average production; |

|         |                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Exploration and development spending is budgeted to be $100 million excluding acquisitions, a 13% increase from 2013 capital spending (excluding bonus payments on new concessions), to be funded from funds flow from operations and cash-on-hand; and |

|         |                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Funds flow from operations is estimated at $146 million, representing an increase of 5% from 2013, using mid-point production guidance and an average Dated Brent oil price assumption of $100.00 per barrel. |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |
| Production Forecast    |   |   |   |   |   |   |
|                   |   | 2014 Guidance |   | 2013 Actual |  |   | % Change |
| Barrels of oil per day |   | 20,000 – 21,000 |   | 18,284 |  |   | 9 - 15 |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |
|                                    |   |   |   |   |   |   |
| Funds Flow Forecast                     |   |   |   |   |   |   |
|                                    |   | 2014 Guidance |  |   | 2013 Actual |  |   | % Change |  |
| Funds flow from operations ($ millions) |   | 146.0 |  |   | 139.0 |  |   | 5 |  |
| Brent oil price ($ per bbl)             |   | 100.00 |  |   | 108.64 |  |   | (8 | ) |

|                     |
|---------------------|
|                     |  |  |
| 2014 Capital Budget |   |
| ($ millions)        | 2014 |  |
| Egypt               | 94.0 |  |
| Yemen               | 6.0 |  |
| Total               | 100.0 |  |

----

|                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                 |  |  |  |  |  |  |
| ($000s)                                                                                                                                                                                                                                                                                                                         |   | 2013 |  |   | 2012 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                             |   | 199,508 |  |   | 93,992 |  |
| Changes in non-cash working capital                                                                                                                                                                                                                                                                                             |   | (60,390 | ) |   | 59,506 |  |
| Funds flow from operations*                                                                                                                                                                                                                                                                                                     |   | 139,118 |  |   | 153,498 |  |
| *  Funds flow from operations does not include interest or financing costs.  Interest expense is included in financing costs on the Consolidated Statements of Earnings and     Comprehensive Income.  Cash interest paid is reported as a financing activity on the Consolidated Statements of Cash Flows. |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s, except per share, price and volume amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2013 |  |   | % Change |   | 2012 |  |   | % Change |   | 2011 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Average production volumes (Bopd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 18,284 |  |   | 5 |   | 17,432 |  |   | 44 |   | 12,132 |  |
| Average sales volumes (Bopd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 18,193 |  |   | 4 |   | 17,496 |  |   | 44 |   | 12,132 |  |
| Average price ($/Bbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 95.70 |  |   | (3) |   | 99.01 |  |   | (3) |   | 101.58 |  |
| Oil sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 635,496 |  |   | — |   | 633,992 |  |   | 41 |   | 449,794 |  |
| Oil sales, net of royalties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 315,316 |  |   | (1) |   | 317,666 |  |   | 28 |   | 247,754 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 199,508 |  |   | 112 |   | 93,992 |  |   | 48 |   | 63,630 |  |
| Funds flow from operations*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 139,118 |  |   | (9) |   | 153,498 |  |   | 28 |   | 119,976 |  |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 1.88 |  |   |  |   | 2.09 |  |   |  |   | 1.65 |  |
| - Diluted per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 1.70 |  |   |  |   | 2.03 |  |   |  |   | 1.60 |  |
| Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 58,512 |  |   | (33) |   | 87,734 |  |   | 8 |   | 81,392 |  |
| Net earnings - diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 53,036 |  |   | (40) |   | 87,734 |  |   | 8 |   | 81,392 |  |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 0.79 |  |   |  |   | 1.20 |  |   |  |   | 1.12 |  |
| - Diluted per share **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 0.65 |  |   |  |   | 1.16 |  |   |  |   | 1.09 |  |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 675,800 |  |   | 3 |   | 653,425 |  |   | 24 |   | 525,806 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 122,092 |  |   | 47 |   | 82,974 |  |   | 89 |   | 43,884 |  |
| Convertible debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 87,539 |  |   | — |   | 98,742 |  |   | — |   | — |  |
| Total long-term debt, including current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | — |  |   | (100) |   | 16,885 |  |   | (71) |   | 57,609 |  |
| Debt-to-funds flow ratio***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 0.6 |  |   |  |   | 0.8 |  |   |  |   | 0.5 |  |
| Reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| Total Proved (MMBbl)****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 31.6 |  |   | (4) |   | 32.8 |  |   | 16 |   | 28.2 |  |
| Total Proved plus Probable (MMBbl)****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 45.3 |  |   | (7) |   | 48.7 |  |   | 10 |   | 44.2 |  |
|  *  Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to      measures used by other companies.  See "Additional Measures".                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  **   Funds flow from operations per share (diluted) prior to the dilutive impact of the convertible debentures was $1.84 for the year ended December 31, 2013 (2012 - $2.03; 2011 - $1.60).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|  *** Debt-to-funds flow ratio is a measure that represents total long-term debt (including the current portion) plus convertible debentures over funds flow from operations for the trailing       12 months, and may not be comparable to measures used by other companies.  See "Additional Measures".                                                                                                                                                                                                                                                                                                                                                                        |
|   **** As determined by the Company's independent reserves evaluator, DeGolyer and MacNaughton Canada Limited ("DeGolyer") of Calgary, Alberta, in their reports dated January 15, 2014, January 18, 2013 and January 10, 2012 with effective dates of December 31, 2013, December 31, 2012 and December 31, 2011, respectively. The reports of DeGolyer have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society), as amended from time to time and National Instrument 51-101. |

|         |                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Increased total sales volumes by 4%, as a result of a 7% increase in sales volumes from Egypt offset by a 62% decline in sales volumes in Yemen; |

|         |                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported net earnings of $58.5 million, which includes $30.1 million in impairment losses on the South Mariut and East Ghazalat assets; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Achieved funds flow from operations of $139.1 million, which represents a decrease of 9% from 2012.  The decrease in funds flow from operations in 2013 is principally due to higher operating costs in Egypt and in Yemen (Block S-1) which were not recovered from production in 2013.  Also a portion of the Egypt operating costs were accrued which have not yet been recognized by Egyptian General Petroleum Company ("EGPC") into the cost recovery pools.  Once these expenses are included in the cost recovery pools the EGPC government take will be reduced to reflect those expenses; |

|         |                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Collected $275.2 million on accounts receivable due from EGPC, a 75% increase over 2012, which contributed to an increase in cash flow from operating activities of 112% in 2013 as compared to 2012; |

|         |                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Repaid the entire outstanding balance on its borrowing base facility with a syndicate of banks (the "Borrowing Base Facility") to reduce the long-term debt balance (excluding convertible debentures) to nil as at December 31, 2013; and |

|         |                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Increased the Company's cash and cash equivalent position to $122.1 million as at December 31, 2013, which represents a 47% increase from December 31, 2012. |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |
|                                             |   |   |   | $ Per Share |  |   |   |
|                                             |   | $000s |  |   | Diluted |  |   | % Variance |  |
| 2012 net earnings                                |   | 87,734 |  |   | 1.16 |  |   |  |
| Cash items                                       |   |  |   |  |   |  |
| Volume variance                                  |   | 22,706 |  |   | 0.25 |  |   | 26 |  |
| Price variance                                   |   | (21,202 | ) |   | (0.26 | ) |   | (24 | ) |
| Royalties                                        |   | (3,854 | ) |   | (0.05 | ) |   | (4 | ) |
| Expenses:                                        |   |   |   |   |   |   |
| Production and operating                         |   | (13,424 | ) |   | (0.16 | ) |   | (15 | ) |
| Cash general and administrative                  |   | 1,390 |  |   | 0.02 |  |   | 2 |  |
| Exploration                                      |   | 232 |  |   | — |  |   | — |  |
| Current income taxes                             |   | (248 | ) |   | — |  |   | — |  |
| Realized foreign exchange gain (loss)            |   | 110 |  |   | — |  |   | — |  |
| Issue costs for convertible debentures           |   | 4,630 |  |   | 0.06 |  |   | 5 |  |
| Interest on long-term debt                       |   | (15 | ) |   | — |  |   | — |  |
| Other income                                     |   | (90 | ) |   | — |  |   | — |  |
| Total cash items variance                        |   | (9,765 | ) |   | (0.14 | ) |   | (10 | ) |
| Non-cash items                                   |   |   |   |   |   |   |
| Unrealized derivative gain (loss)                |   | 125 |  |   | — |  |   | — |  |
| Unrealized foreign exchange gain (loss)          |   | 4,827 |  |   | 0.06 |  |   | 6 |  |
| Depletion and depreciation                       |   | (2,468 | ) |   | (0.03 | ) |   | (3 | ) |
| Unrealized gain (loss) on financial instruments  |   | 5,679 |  |   | 0.07 |  |   | 6 |  |
| Impairment loss                                  |   | (29,995 | ) |   | (0.37 | ) |   | (34 | ) |
| Stock-based compensation                         |   | (762 | ) |   | (0.01 | ) |   | (1 | ) |
| Deferred income taxes                            |   | 2,972 |  |   | 0.04 |  |   | 3 |  |
| Deferred lease inducement                        |   | 9 |  |   | — |  |   | — |  |
| Amortization of deferred financing costs         |   | 156 |  |   | — |  |   | — |  |
| Total non-cash items variance                    |   | (19,457 | ) |   | (0.24 | ) |   | (23 | ) |
| 2013 net earnings                                |   | 58,512 |  |   | 0.78 |  |   | (33 | ) |
| Other items affecting diluted earnings per share |   |   |   |   |   |   |
| Convertible debentures                           |   |   |   | (0.13 | ) |   | (11 | ) |
| 2013 net earnings per share - diluted            |   |   |   | 0.65 |  |   | (44 | ) |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |
|                                       |   | 2013 |  |   | 2012 |  |
| Dated Brent average oil price ($/Bbl)      |   | 108.64 |  |   | 111.56 |  |
| U.S./Canadian Dollar average exchange rate |   | 1.0303 |  |   | 0.9994 |  |

----

|                                                                                                                                                                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                           |   | 2013 |   | 2012 |
| ($000s, except per share,                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| price and volume amounts)                                                                                                                                                                                                                                                                      |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |
| Average sales volumes (Bopd)                                                                                                                                                                                                                                                                   |   | 18,213 |  |   | 18,109 |  |   | 18,539 |  |   | 17,909 |  |   | 19,148 |  |   | 17,124 |  |   | 16,978 |  |   | 16,720 |  |
| Average price ($/Bbl)                                                                                                                                                                                                                                                                          |   | 96.10 |  |   | 97.18 |  |   | 90.48 |  |   | 99.21 |  |   | 98.70 |  |   | 96.88 |  |   | 95.84 |  |   | 104.78 |  |
| Oil sales                                                                                                                                                                                                                                                                                      |   | 161,035 |  |   | 161,900 |  |   | 152,646 |  |   | 159,915 |  |   | 173,864 |  |   | 152,624 |  |   | 148,078 |  |   | 159,426 |  |
| Oil sales, net of royalties                                                                                                                                                                                                                                                                    |   | 81,196 |  |   | 78,531 |  |   | 76,223 |  |   | 79,366 |  |   | 92,281 |  |   | 74,540 |  |   | 73,633 |  |   | 77,212 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                            |   | 109,226 |  |   | 22,035 |  |   | 16,347 |  |   | 51,900 |  |   | 65,250 |  |   | 2,368 |  |   | 24,603 |  |   | 1,771 |  |
| Funds flow from operations*                                                                                                                                                                                                                                                                    |   | 36,743 |  |   | 33,483 |  |   | 32,887 |  |   | 36,005 |  |   | 46,839 |  |   | 35,397 |  |   | 35,174 |  |   | 36,088 |  |
| Funds flow from operations per share                                                                                                                                                                                                                                                           |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |
| - Basic                                                                                                                                                                                                                                                                                        |   | 0.49 |  |   | 0.45 |  |   | 0.45 |  |   | 0.49 |  |   | 0.63 |  |   | 0.49 |  |   | 0.48 |  |   | 0.49 |  |
| - Diluted                                                                                                                                                                                                                                                                                      |   | 0.49 |  |   | 0.44 |  |   | 0.40 |  |   | 0.44 |  |   | 0.57 |  |   | 0.47 |  |   | 0.43 |  |   | 0.48 |  |
| Net earnings                                                                                                                                                                                                                                                                                   |   | 6,893 |  |   | 16,344 |  |   | 10,397 |  |   | 24,878 |  |   | 34,836 |  |   | 11,774 |  |   | 30,149 |  |   | 10,975 |  |
| Net earnings - diluted                                                                                                                                                                                                                                                                         |   | 6,893 |  |   | 16,344 |  |   | (183 | ) |   | 21,427 |  |   | 32,156 |  |   | 11,774 |  |   | 20,821 |  |   | 10,975 |  |
| Net earnings per share                                                                                                                                                                                                                                                                         |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |
| - Basic                                                                                                                                                                                                                                                                                        |   | 0.09 |  |   | 0.22 |  |   | 0.14 |  |   | 0.34 |  |   | 0.48 |  |   | 0.16 |  |   | 0.41 |  |   | 0.15 |  |
| - Diluted                                                                                                                                                                                                                                                                                      |   | 0.09 |  |   | 0.22 |  |   | — |  |   | 0.26 |  |   | 0.39 |  |   | 0.16 |  |   | 0.25 |  |   | 0.15 |  |
| Total assets                                                                                                                                                                                                                                                                                   |   | 675,800 |  |   | 723,708 |  |   | 670,996 |  |   | 672,675 |  |   | 653,425 |  |   | 635,529 |  |   | 620,937 |  |   | 648,012 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                      |   | 122,092 |  |   | 128,162 |  |   | 101,435 |  |   | 112,180 |  |   | 82,974 |  |   | 45,732 |  |   | 72,230 |  |   | 127,313 |  |
| Convertible debentures                                                                                                                                                                                                                                                                         |   | 87,539 |  |   | 85,300 |  |   | 81,830 |  |   | 93,842 |  |   | 98,742 |  |   | 102,920 |  |   | 95,043 |  |   | 105,835 |  |
| Total long-term debt, including     current portion                                                                                                                                                                                                                   |   | — |  |   | 39,040 |  |   | 15,224 |  |   | 17,097 |  |   | 16,885 |  |   | 31,878 |  |   | 37,855 |  |   | 57,910 |  |
| Debt-to-funds flow ratio**                                                                                                                                                                                                                                                                     |   | 0.6 |  |   | 0.8 |  |   | 0.6 |  |   | 0.7 |  |   | 0.8 |  |   | 1.0 |  |   | 1.0 |  |   | 1.2 |  |
|   * Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to measures used by other companies.  See "Additional Measures".                                           |
| ** Debt-to-funds flow ratio is measure that represents total long-term debt (including the current portion) plus convertible debentures over funds flow from operations from the trailing 12 months and may not be comparable to measures used by other companies.  See "Additional Measures". |

----

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | Maintained a strong financial position, reporting a debt-to-funds flow ratio of 0.6 at December 31, 2013; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported net earnings of $6.9 million, a decrease in net earnings of $27.9 million from the fourth quarter of 2012 principally due to a $10.2 million impairment loss on the Company's East Ghazalat petroleum properties and an $8.1 million unrealized loss on convertible debentures ($5.2 million loss recognized in the fourth quarter of 2013, combined with an unrealized gain of $2.9 million recognized in the fourth quarter of 2012); |

|         |                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Achieved funds flow from operations of $36.7 million, a decrease of 22% from Q4-2012 (which included a lifting from Block S-1), which was principally due to decreased sales volumes and prices, combined with increased operating costs; |

|         |                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Experienced a substantial increase in cash flow from operating activities in Q4-2013 as compared to all other quarters in the table above.  This is primarily due to collections on accounts receivable from the Egyptian Government in the amount of $127.4 million during Q4-2013; |

|         |                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Spent $69.3 million on capital programs, including signature bonuses and fees on the new concessions in the amount of $42.6 million, which have been booked as intangible exploration and evaluation assets on the Company's Consolidated Balance Sheet. |

|               |
|---------------|
|               |  |  |  |  |  |  |
|          |   | 2013 |  |   | 2012 |  |
| Egypt         |   | 17,874 |  |   | 16,656 |  |
| Yemen         |   | 410 |  |   | 776 |  |
| Total Company |   | 18,284 |  |   | 17,432 |  |

|               |
|---------------|
|               |  |  |  |  |  |  |
|          |   | 2013 |  |   | 2012 |  |
| Egypt         |   | 17,874 |  |   | 16,656 |  |
| Yemen         |   | 319 |  |   | 840 |  |
| Total Company |   | 18,193 |  |   | 17,496 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Consolidated                      |   |   |   |   |   |   |   |   |
|                              |   | 2013 |   |   | 2012 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 635,496 |  |   | 95.70 |  |   | 633,992 |  |   | 99.01 |  |
| Royalties                         |   | 320,180 |  |   | 48.22 |  |   | 316,326 |  |   | 49.40 |  |
| Current taxes                     |   | 88,851 |  |   | 13.38 |  |   | 88,603 |  |   | 13.84 |  |
| Production and operating expenses |   | 65,791 |  |   | 9.91 |  |   | 52,367 |  |   | 8.18 |  |
| Netback                           |   | 160,674 |  |   | 24.19 |  |   | 176,696 |  |   | 27.59 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Egypt                             |   |   |   |   |   |   |   |   |
|                              |   | 2013 |   |   | 2012 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 622,790 |  |   | 95.46 |  |   | 600,536 |  |   | 98.51 |  |
| Royalties                         |   | 316,211 |  |   | 48.47 |  |   | 303,651 |  |   | 49.81 |  |
| Current taxes                     |   | 87,583 |  |   | 13.42 |  |   | 84,935 |  |   | 13.93 |  |
| Production and operating expenses |   | 58,215 |  |   | 8.92 |  |   | 43,247 |  |   | 7.09 |  |
| Netback                           |   | 160,781 |  |   | 24.65 |  |   | 168,703 |  |   | 27.68 |  |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Yemen                             |   |   |   |   |   |   |   |   |
|                              |   | 2013 |   |   | 2012 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 12,706 |  |   | 109.13 |  |   | 33,456 |  |   | 108.82 |  |
| Royalties                         |   | 3,969 |  |   | 34.09 |  |   | 12,675 |  |   | 41.23 |  |
| Current taxes                     |   | 1,268 |  |   | 10.89 |  |   | 3,668 |  |   | 11.93 |  |
| Production and operating expenses |   | 7,576 |  |   | 65.07 |  |   | 9,120 |  |   | 29.66 |  |
| Netback                           |   | (107 | ) |   | (0.92 | ) |   | 7,993 |  |   | 26.00 |  |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        |   | 2013 |   |   | 2012 |   |
| (000s, except per Bbl amounts)              |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| G&A (gross)                             |   | 27,257 |  |   | 4.10 |  |   | 27,545 |  |   | 4.30 |  |
| Stock-based compensation                    |   | 5,264 |  |   | 0.79 |  |   | 4,502 |  |   | 0.70 |  |
| Capitalized G&A and overhead recoveries |   | (4,952 | ) |   | (0.75 | ) |   | (3,841 | ) |   | (0.60 | ) |
| G&A (net)                               |   | 27,569 |  |   | 4.14 |  |   | 28,206 |  |   | 4.40 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |
| (000s)                                   |   | 2013 |  |   | 2012 |  |
| Interest expense                         |   | $ | 8,021 |  |   | $ | 8,006 |  |
| Issue costs for convertible debentures   |   | — |  |   | 4,630 |  |
| Amortization of deferred financing costs |   | 1,109 |  |   | 1,265 |  |
| Finance costs                            |   | $ | 9,130 |  |   | $ | 13,901 |  |

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
|                           |   | 2013 |   |   | 2012 |   |
| (000s, except per Bbl amounts) |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Egypt                          |   | 47,659 |  |   | 7.31 |  |   | 44,442 |  |   | 7.29 |  |
| Yemen                          |   | 1,347 |  |   | 11.57 |  |   | 2,095 |  |   | 6.81 |  |
| Corporate                      |   | 408 |  |   | — |  |   | 409 |  |   | — |  |
|                           |   | 49,414 |  |   | 7.44 |  |   | 46,946 |  |   | 7.33 |  |

|              |
|--------------|
|              |  |  |  |  |  |  |
| ($000s)      |   | 2013 |  |   | 2012 |  |
| Egypt        |   | 125,004 |  |   | 50,220 |  |
| Yemen        |   | 3,740 |  |   | 1,239 |  |
| Acquisitions |   | — |  |   | 27,259 |  |
| Corporate    |   | 426 |  |   | 192 |  |
| Total        |   | 129,170 |  |   | 78,910 |  |

----

|                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                        |  |  |  |  |  |  |  |  |  |
| Proved                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| ($000s, except volumes and $/Bbl amounts)                                                                                                                                                                                                                                                                                                              |   | 2013 |  |   | 2012 |  |   | 2011 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                                                                              |   | 86,570 |  |   | 51,651 |  |   | 70,119 |  |
| Acquisitions *                                                                                                                                                                                                                                                                                                                                         |   | 42,600 |  |   | 27,305 |  |   | 39,497 |  |
| Dispositions                                                                                                                                                                                                                                                                                                                                           |   | — |  |   | — |  |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                                                                   |   | 33,027 |  |   | (4,706 | ) |   | (6,165 | ) |
|                                                                                                                                                                                                                                                                                                                                                   |   | 162,197 |  |   | 74,250 |  |   | 103,451 |  |
| Reserve additions and revisions (MBbl)                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                                                                            |   | 5,542 |  |   | 10,999 |  |   | 4,672 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                                                                      |   | — |  |   | — |  |   | 7,448 |  |
| Total reserve additions (MBbl)                                                                                                                                                                                                                                                                                                                         |   | 5,542 |  |   | 10,999 |  |   | 12,120 |  |
| Average cost per Bbl                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                                                                                |   | 21.58 |  |   | 4.27 |  |   | 13.45 |  |
| FD&A                                                                                                                                                                                                                                                                                                                                               |   | 29.27 |  |   | 6.75 |  |   | 8.54 |  |
| Three-year weighted average cost per Bbl                                                                                                                                                                                                                                                                                                               |   |  |   |  |   |   |
| F&D                                                                                                                                                                                                                                                                                                                                                |   | 10.81 |  |   | 8.77 |  |   | 8.76 |  |
| FD&A                                                                                                                                                                                                                                                                                                                                               |   | 11.86 |  |   | 8.86 |  |   | 7.85 |  |
| *  The 2013 Acquisitions figure consists entirely of acquisition costs on the four new concession agreements that were awarded to the Company in the 2011/2012 EGPC bid round and     ratified into law in 2013.  For the purpose of the FD&A cost per Bbl calculation, the costs have been treated as land acquisition costs. |
| Note: The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.                                                              |

|                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                        |  |  |  |  |  |  |  |  |  |
| Proved Plus Probable                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
| ($000s, except volumes and $/Bbl amounts)                                                                                                                                                                                                                                                                                                              |   | 2013 |  |   | 2012 |  |   | 2011 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                                                                              |   | 86,570 |  |   | 51,651 |  |   | 70,119 |  |
| Acquisitions *                                                                                                                                                                                                                                                                                                                                         |   | 42,600 |  |   | 27,305 |  |   | 39,497 |  |
| Dispositions                                                                                                                                                                                                                                                                                                                                           |   | — |  |   | — |  |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                                                                   |   | 25,876 |  |   | 1,191 |  |   | (14,256 | ) |
|                                                                                                                                                                                                                                                                                                                                                   |   | 155,046 |  |   | 80,147 |  |   | 95,360 |  |
| Reserve additions and revisions (MBbl)                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                                                                            |   | 3,233 |  |   | 10,888 |  |   | 6,612 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                                                                      |   | — |  |   | — |  |   | 11,586 |  |
| Total reserve additions (MBbl)                                                                                                                                                                                                                                                                                                                         |   | 3,233 |  |   | 10,888 |  |   | 18,198 |  |
| Average cost per Bbl                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                                                                                |   | 34.78 |  |   | 4.46 |  |   | 7.07 |  |
| FD&A                                                                                                                                                                                                                                                                                                                                               |   | 47.96 |  |   | 7.36 |  |   | 5.24 |  |
| Three-year weighted average cost per Bbl                                                                                                                                                                                                                                                                                                               |   |  |   |  |   |   |
| F&D                                                                                                                                                                                                                                                                                                                                                |   | 10.02 |  |   | 7.42 |  |   | 8.04 |  |
| FD&A                                                                                                                                                                                                                                                                                                                                               |   | 10.23 |  |   | 7.27 |  |   | 6.79 |  |
| *  The 2013 Acquisitions figure consists entirely of acquisition costs on the four new concession agreements that were awarded to the Company in the 2011/2012 EGPC bid round and     ratified into law in 2013.  For the purpose of the FD&A cost per Bbl calculation, the costs have been treated as land acquisition costs. |
| Note: The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.                                                              |

----

|                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                |   | Three-Year |  |   |   |   |   |   |   |
| Proved                                                                                                                                                                                                                                              |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   | Average |  |   | 2013 |  |   | 2012 |  |   | 2011 |  |
| Netback ($/Bbl)*                                                                                                                                                                                                                                    |   | 22.20 |  |   | 19.64 |  |   | 22.08 |  |   | 26.24 |  |
| Proved F&D costs ($/Bbl)                                                                                                                                                                                                                        |   | 10.81 |  |   | 21.58 |  |   | 4.27 |  |   | 13.45 |  |
| Proved FD&A costs ($/Bbl)                                                                                                                                                                                                                       |   | 11.86 |  |   | 29.27 |  |   | 6.75 |  |   | 8.54 |  |
| F&D Recycle ratio                                                                                                                                                                                                                               |   | 2.05 |  |   | 0.91 |  |   | 5.17 |  |   | 1.95 |  |
| FD&A Recycle ratio                                                                                                                                                                                                                              |   | 1.87 |  |   | 0.67 |  |   | 3.27 |  |   | 3.07 |  |
| * Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, G&A (excluding non-cash items), foreign exchange (gain) loss, interest and current income tax expense per Bbl of production. |

|                                                                                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                   |   | Three-Year |  |   |   |   |   |   |   |
| Proved Plus Probable                                                                                                                                                                                                                                                   |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                   |   | Average |  |   | 2013 |  |   | 2012 |  |   | 2011 |  |
| Netback ($/Bbl)*                                                                                                                                                                                                                                                       |   | 22.20 |  |   | 19.64 |  |   | 22.08 |  |   | 26.24 |  |
| Proved plus Probable F&D costs ($/Bbl)                                                                                                                                                                                                                             |   | 10.02 |  |   | 34.78 |  |   | 4.46 |  |   | 7.07 |  |
| Proved plus Probable FD&A costs ($/Bbl)                                                                                                                                                                                                                            |   | 10.23 |  |   | 47.96 |  |   | 7.36 |  |   | 5.24 |  |
| F&D Recycle ratio                                                                                                                                                                                                                                                  |   | 2.21 |  |   | 0.56 |  |   | 4.95 |  |   | 3.71 |  |
| FD&A Recycle ratio                                                                                                                                                                                                                                                 |   | 2.17 |  |   | 0.41 |  |   | 3.00 |  |   | 5.01 |  |
| * Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, G&A (excluding non-cash items), realized foreign exchange (gain) loss, cash finance costs and current income tax expense per Bbl of production. |

|                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                     |  |  |  |  |  |  |  |  |  |
| Recycle Netback Calculation                                                                                                                                                                                                                         |   |   |   |   |   |   |
| ($000s, except volumes and per Bbl amounts)                                                                                                                                                                                                         |   | 2013 |  |   | 2012 |  |   | 2011 |  |
| Net earnings                                                                                                                                                                                                                                        |   | 58,512 |  |   | 87,734 |  |   | 81,392 |  |
| Adjustments for non-cash items:                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Depletion, depreciation and amortization                                                                                                                                                                                                            |   | 49,414 |  |   | 46,946 |  |   | 35,081 |  |
| Stock-based compensation                                                                                                                                                                                                                            |   | 5,264 |  |   | 4,502 |  |   | 3,062 |  |
| Deferred income taxes                                                                                                                                                                                                                               |   | (3,500 | ) |   | (528 | ) |   | (4,445 | ) |
| Amortization of deferred financing costs                                                                                                                                                                                                            |   | 1,109 |  |   | 1,265 |  |   | 1,189 |  |
| Amortization of deferred lease inducement                                                                                                                                                                                                           |   | 449 |  |   | 458 |  |   | 350 |  |
| Unrealized (gain) loss on commodity contracts                                                                                                                                                                                                       |   | — |  |   | 125 |  |   | 177 |  |
| Unrealized foreign exchange (gain) loss                                                                                                                                                                                                             |   | (4,968 | ) |   | (141 | ) |   | 416 |  |
| Unrealized (gain) loss on financial instruments                                                                                                                                                                                                     |   | (5,254 | ) |   | 425 |  |   | — |  |
| Impairment loss                                                                                                                                                                                                                                     |   | 30,071 |  |   | 76 |  |   | 12,147 |  |
| Gain on acquisition                                                                                                                                                                                                                                 |   | — |  |   | — |  |   | (13,187 | ) |
| Recycle netback*                                                                                                                                                                                                                                    |   | 131,097 |  |   | 140,862 |  |   | 116,182 |  |
| Sales volumes (MBbl)                                                                                                                                                                                                                                |   | 6,674 |  |   | 6,380 |  |   | 4,428 |  |
| Recycle netback per Bbl*                                                                                                                                                                                                                            |   | 19.64 |  |   | 22.08 |  |   | 26.24 |  |
| * Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, G&A (excluding non-cash items), foreign exchange (gain) loss, interest and current income tax expense per Bbl of production. |

----

|                                                                                                                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                 |  |  |  |  |  |  |
| Sources and Uses of Cash                                                                                                                                                                                        |   |   |   |   |
| ($000s)                                                                                                                                                                                                         |   | 2013 |  |   | 2012 |  |
| Cash sourced                                                                                                                                                                                                    |   |  |   |  |
| Funds flow from operations*                                                                                                                                                                                     |   | 139,118 |  |   | 153,498 |  |
| Transfer from restricted cash                                                                                                                                                                                   |   | — |  |   | 1,445 |  |
| Increase in long-term debt                                                                                                                                                                                      |   | 23,550 |  |   | — |  |
| Issue of convertible debentures                                                                                                                                                                                 |   | — |  |   | 97,851 |  |
| Exercise of options                                                                                                                                                                                             |   | 1,301 |  |   | 3,333 |  |
| Other                                                                                                                                                                                                           |   | — |  |   | 639 |  |
|                                                                                                                                                                                                            |   | 163,969 |  |   | 256,766 |  |
| Cash used                                                                                                                                                                                                       |   |   |   |   |
| Capital expenditures                                                                                                                                                                                            |   | 129,170 |  |   | 51,651 |  |
| Deferred financing costs                                                                                                                                                                                        |   | 2,221 |  |   | 440 |  |
| Transfer to restricted cash                                                                                                                                                                                     |   | 764 |  |   | — |  |
| Acquisitions                                                                                                                                                                                                    |   | — |  |   | 27,259 |  |
| Repayment of long-term debt                                                                                                                                                                                     |   | 42,000 |  |   | 41,550 |  |
| Finance costs                                                                                                                                                                                                   |   | 7,277 |  |   | 11,367 |  |
| Other                                                                                                                                                                                                           |   | 1,788 |  |   | 592 |  |
|                                                                                                                                                                                                            |   | 183,220 |  |   | 132,859 |  |
|                                                                                                                                                                                                            |   | (19,251 | ) |   | 123,907 |  |
| Changes in non-cash working capital                                                                                                                                                                             |   | 58,369 |  |   | (84,817 | ) |
| Increase (decrease) in cash and cash equivalents                                                                                                                                                                |   | 39,118 |  |   | 39,090 |  |
| Cash and cash equivalents – beginning of year                                                                                                                                                             |   | 82,974 |  |   | 43,884 |  |
| Cash and cash equivalents – end of year                                                                                                                                                                   |   | 122,092 |  |   | 82,974 |  |
| *   Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital, and may not be comparable to measures used by other companies. |

----

|                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s)                                                                                                                                               |   |   |   | Payment Due by Period 1 2 |
|                                                                                                                                                  |   | Recognized |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   | in Financial |   | Contractual |  |   | Less than |  |   |   |  |   |   |  |   | More than |  |
|                                                                                                                                                  |   | Statements |   | Cash Flows |  |   | 1 year |  |   | 1-3 years |  |   | 4-5 years |  |   | 5 years |  |
| Accounts payable and accrued liabilities                                                                                                              |   | Yes - Liability |   | 38,392 |  |   | 38,392 |  |   | — |  |   | — |  |   | — |  |
| Convertible debentures                                                                                                                                |   | Yes - Liability |   | 87,539 |  |   | — |  |   | — |  |   | 87,539 |  |   | — |  |
| Office and equipment leases 3                                                                                                                         |   | No |   | 15,296 |  |   | 8,986 |  |   | 3,030 |  |   | 2,006 |  |   | 1,274 |  |
| Minimum work commitments 4                                                                                                                            |   | No |   | 61,250 |  |   | 750 |  |   | 60,500 |  |   | — |  |   | — |  |
| Total                                                                                                                                                 |   |   |   | 202,477 |  |   | 48,128 |  |   | 63,530 |  |   | 89,545 |  |   | 1,274 |  |
| 1 Payments exclude ongoing operating costs, finance costs and payments made to settle derivatives.                                               |
| 2 Payments denominated in foreign currencies have been translated at December 31, 2013 exchange rates.                                           |
| 3 Office and equipment leases include all drilling rig contracts.                                                                                |
| 4 Minimum work commitments include contracts awarded for capital projects and those commitments related to exploration and drilling obligations. |

----

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | Financial risks including market risks (such as commodity price, foreign exchange and interest rates), credit risks and liquidity risks; |

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | Operational risks including capital, operating and reserves replacement risks; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | Safety, environmental and regulatory risks; and |

|         |                  |
|---------|------------------|
| • | Political risks. |

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