|        |
|--------|
|        |  |  |
|   |

|      |
|------|
|      |  |  |
| 2012 |   | 1 |

----

|        |
|--------|
|        |  |  |
|   |

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | Production is expected to average between 21,000 Bopd and 24,000 Bopd, a 20% to 37% increase over the 2012 average production; |

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Exploration and development spending is budgeted to be $129.0 million excluding acquisitions, a 152% increase from 2012, to be funded from funds flow from operations and cash-on-hand; and |

|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Funds flow from operations is estimated at $161.0 million, representing an increase of 5% from 2012, using mid-point production guidance and an average oil price assumption of $100.00 per barrel Dated Brent oil price. |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |
| Production Forecast    |   |   |   |   |   |   |
|                   |   | 2013 Guidance |   | 2012 Actual |  |   | % Change |
| Barrels of oil per day |   | 21,000 – 24,000 |   | 17,496 |  |   | 20 - 37 |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |
|                        |   |   |   |   |   |   |
| Funds Flow Forecast         |   |   |   |   |   |   |
| ($ millions)                |   | 2013 Guidance |  |   | 2012 Actual |  |   | % Change |  |
| Funds Flow from operations  |   | 161.0 |  |   | 153.5 |  |   | 5 |  |
| Brent oil price ($ per bbl) |   | 100.00 |  |   | 111.56 |  |   | (10 | ) |

|                     |
|---------------------|
|                     |  |  |
| 2013 Capital Budget |   |
| ($ millions)        | 2013 |  |
| Egypt               | 124.0 |  |
| Yemen               | 5.0 |  |
| Total               | 129.0 |  |

|   |
|---|
|   |  |  |
| 2 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                   |  |  |  |  |  |  |
| ($000s)                                                                                                                                                                                                                                                                                                           |   | 2012 |  |   | 2011 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                               |   | 93,992 |  |   | 63,630 |  |
| Changes in non-cash working capital                                                                                                                                                                                                                                                                               |   | 59,506 |  |   | 56,346 |  |
| Funds flow from operations*                                                                                                                                                                                                                                                                                       |   | 153,498 |  |   | 119,976 |  |
| *  Funds flow from operations does not include interest 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. |

|      |
|------|
|      |  |  |
| 2012 |   | 3 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s, except per share, price and volume                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2012 |  |   | % Change |   | 2011 |  |   | % Change |   | 2010 |  |
| amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Average sales volumes (Bopd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 17,496 |  |   | 44 |   | 12,132 |  |   | 22 |   | 9,960 |  |
| Average price ($/Bbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 99.01 |  |   | (3) |   | 101.58 |  |   | 37 |   | 73.97 |  |
| Oil and gas sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 633,992 |  |   | 41 |   | 449,794 |  |   | 67 |   | 268,901 |  |
| Oil and gas sales, net of royalties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 317,666 |  |   | 28 |   | 247,754 |  |   | 58 |   | 157,220 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 93,992 |  |   | 48 |   | 63,630 |  |   | 12 |   | 56,969 |  |
| Funds flow from operations*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 153,498 |  |   | 28 |   | 119,976 |  |   | 59 |   | 75,460 |  |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2.09 |  |   |  |   | 1.65 |  |   |  |   | 1.14 |  |
| - Diluted per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2.03 |  |   |  |   | 1.60 |  |   |  |   | 1.10 |  |
| Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 87,734 |  |   | 8 |   | 81,392 |  |   | 101 |   | 40,565 |  |
| - Basic per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 1.20 |  |   |  |   | 1.12 |  |   |  |   | 0.61 |  |
| - Diluted per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 1.16 |  |   |  |   | 1.09 |  |   |  |   | 0.59 |  |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 653,425 |  |   | 24 |   | 525,806 |  |   | 52 |   | 345,625 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 82,974 |  |   | 89 |   | 43,884 |  |   | (24) |   | 57,782 |  |
| Convertible debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 98,742 |  |   | — |   | — |  |   | — |   | — |  |
| Total long-term debt, including current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 16,885 |  |   | (71) |   | 57,609 |  |   | (33) |   | 86,420 |  |
| Debt-to-funds flow ratio**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 0.8 |  |   |  |   | 0.5 |  |   |  |   | 1.1 |  |
| Reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| Total Proved (MMBbl)***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 32.8 |  |   | 16 |   | 28.2 |  |   | 37 |   | 20.5 |  |
| Total Proved plus Probable (MMBbl)***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 48.7 |  |   | 10 |   | 44.2 |  |   | 45 |   | 30.4 |  |
|  *   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.                                                                                                                                                                                                                                                                                                                                                                                     |
|  **   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.                                                                                                                                                                                                                                                                                                                   |
| ***  As determined by the Company's independent reserves evaluator, DeGolyer and MacNaughton Canada Limited ("DeGolyer") of Calgary, Alberta, in their reports dated January 18, 2013 and January 10, 2012 with effective dates of 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. |

|         |                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Increased Proved reserves by 16% to  32.8 MMBbl and Proved plus Probable reserves by 10% to 48.7 MMBbl, representing production replacements of 172% and 170%, respectively, primarily from the development of its operated West Gharib and West Bakr concessions in Egypt; |

|         |                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Increased total sales volumes by 44%, as a result of a 56% increase in sales volumes from Egypt offset by a 43% decline in sales volumes in Yemen; |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | Increased funds flow from operations by 28% primarily due to increased production; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Increased net earnings to $87.7 million due to an increase in net sales revenue of $69.9 million, which was partially offset by a combined increase of $51.5 million in operating costs, current income taxes, depletion and depreciation expense, general and administrative expenses and finance costs.  The increase in finance costs is due to the issuance of the convertible debentures in February 2012, whereas the other increased costs were the result of increased activity due to the Company's growth through the acquisitions completed in 2012, along with the first full year of operations at West Bakr; |

|         |                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------|
| • | Issued convertible unsecured subordinated debentures with an aggregate principal amount of $97.9 million; and |

|         |                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Decreased long-term debt by $40.7 million which assisted in maintaining a strong debt-to-funds flow ratio of 0.8 at December 31, 2012 (0.5 at December 31, 2011). |

|   |
|---|
|   |  |  |
| 4 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |
|                                     |   |   |   | $ Per Share |  |   |   |
|                                     |   | $000s |  |   | Diluted |  |   | % Variance |  |
| 2011 net earnings                        |   | 81,392 |  |   | 1.09 |  |   |  |
| Cash items                               |   |  |   |  |   |  |
| Volume variance                          |   | 195,595 |  |   | 2.57 |  |   | 241 |  |
| Price variance                           |   | (11,397 | ) |   | (0.15 | ) |   | (14 | ) |
| Royalties                                |   | (114,286 | ) |   | (1.52 | ) |   | (140 | ) |
| Expenses:                                |   |   |   |   |   |   |
| Production and operating                 |   | (15,705 | ) |   | (0.21 | ) |   | (19 | ) |
| Cash general and administrative          |   | (7,765 | ) |   | (0.10 | ) |   | (10 | ) |
| Exploration                              |   | 1,193 |  |   | 0.02 |  |   | 1 |  |
| Current income taxes                     |   | (14,586 | ) |   | (0.19 | ) |   | (18 | ) |
| Realized foreign exchange gain (loss)    |   | (142 | ) |   | — |  |   | — |  |
| Realized derivative gain (loss)          |   | 630 |  |   | 0.01 |  |   | 1 |  |
| Issue costs for convertible debentures   |   | (4,630 | ) |   | (0.06 | ) |   | (6 | ) |
| Interest on long-term debt               |   | (4,212 | ) |   | (0.06 | ) |   | (5 | ) |
| Other income                             |   | (15 | ) |   | — |  |   | — |  |
| Total cash items variance                |   | 24,680 |  |   | 0.31 |  |   | 31 |  |
| Non-cash items                           |   |   |   |   |   |   |
| Unrealized derivative loss               |   | 52 |  |   | — |  |   | — |  |
| Unrealized foreign exchange loss         |   | 557 |  |   | 0.01 |  |   | 1 |  |
| Depletion and depreciation               |   | (11,865 | ) |   | (0.16 | ) |   | (15 | ) |
| Unrealized loss on financial instruments |   | (425 | ) |   | (0.01 | ) |   | (1 | ) |
| Gain on acquisition                      |   | (13,187 | ) |   | (0.17 | ) |   | (16 | ) |
| Impairment loss                          |   | 12,071 |  |   | 0.16 |  |   | 15 |  |
| Stock-based compensation                 |   | (1,440 | ) |   | (0.02 | ) |   | (2 | ) |
| Deferred income taxes                    |   | (3,917 | ) |   | (0.05 | ) |   | (5 | ) |
| Deferred lease inducement                |   | (108 | ) |   | — |  |   | — |  |
| Amortization of deferred financing costs |   | (76 | ) |   | — |  |   | — |  |
| Total non-cash items variance            |   | (18,338 | ) |   | (0.24 | ) |   | (23 | ) |
| 2012 net earnings                        |   | 87,734 |  |   | 1.16 |  |   | 8 |  |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |
|                                       |   | 2012 |  |   | 2011 |  |
| Dated Brent average oil price ($/Bbl)      |   | 111.56 |  |   | 111.27 |  |
| U.S./Canadian Dollar average exchange rate |   | 0.9994 |  |   | 0.9918 |  |

|      |
|------|
|      |  |  |
| 2012 |   | 5 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                |   | 2012 |   | 2011 |
| ($000s, except per share,                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| price and volume amounts)                                                                                                                                                                                                                                           |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |
| Average sales volumes (Bopd)                                                                                                                                                                                                                                        |   | 19,148 |  |   | 17,124 |  |   | 16,978 |  |   | 16,720 |  |   | 12,054 |  |   | 13,406 |  |   | 11,826 |  |   | 11,218 |  |
| Average price ($/Bbl)                                                                                                                                                                                                                                               |   | 98.70 |  |   | 96.88 |  |   | 95.84 |  |   | 104.78 |  |   | 99.12 |  |   | 104.00 |  |   | 105.57 |  |   | 97.06 |  |
| Oil sales                                                                                                                                                                                                                                                           |   | 173,864 |  |   | 152,624 |  |   | 148,078 |  |   | 159,426 |  |   | 109,919 |  |   | 128,265 |  |   | 113,615 |  |   | 97,995 |  |
| Oil sales, net of royalties                                                                                                                                                                                                                                         |   | 92,281 |  |   | 74,540 |  |   | 73,633 |  |   | 77,212 |  |   | 60,609 |  |   | 71,769 |  |   | 62,513 |  |   | 52,863 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                 |   | 65,250 |  |   | 2,368 |  |   | 24,603 |  |   | 1,771 |  |   | 2,330 |  |   | 3,456 |  |   | 54,354 |  |   | 3,490 |  |
| Funds flow from operations*                                                                                                                                                                                                                                         |   | 46,839 |  |   | 35,397 |  |   | 35,174 |  |   | 36,088 |  |   | 26,469 |  |   | 37,980 |  |   | 30,597 |  |   | 24,930 |  |
| Funds flow from operations per share                                                                                                                                                                                                                                |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |
| - Basic                                                                                                                                                                                                                                                             |   | 0.63 |  |   | 0.49 |  |   | 0.48 |  |   | 0.49 |  |   | 0.36 |  |   | 0.52 |  |   | 0.42 |  |   | 0.35 |  |
| - Diluted                                                                                                                                                                                                                                                           |   | 0.57 |  |   | 0.47 |  |   | 0.43 |  |   | 0.48 |  |   | 0.35 |  |   | 0.51 |  |   | 0.40 |  |   | 0.34 |  |
| Net earnings                                                                                                                                                                                                                                                        |   | 34,836 |  |   | 11,774 |  |   | 30,149 |  |   | 10,975 |  |   | 30,519 |  |   | 26,110 |  |   | 21,874 |  |   | 2,889 |  |
| Net earnings - diluted                                                                                                                                                                                                                                              |   | 32,156 |  |   | 11,774 |  |   | 20,821 |  |   | 10,975 |  |   | 30,519 |  |   | 26,110 |  |   | 21,874 |  |   | 2,889 |  |
| Net earnings per share                                                                                                                                                                                                                                              |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |
| - Basic                                                                                                                                                                                                                                                             |   | 0.48 |  |   | 0.16 |  |   | 0.41 |  |   | 0.15 |  |   | 0.42 |  |   | 0.36 |  |   | 0.30 |  |   | 0.04 |  |
| - Diluted                                                                                                                                                                                                                                                           |   | 0.39 |  |   | 0.16 |  |   | 0.25 |  |   | 0.15 |  |   | 0.41 |  |   | 0.35 |  |   | 0.29 |  |   | 0.04 |  |
| Total assets                                                                                                                                                                                                                                                        |   | 653,425 |  |   | 635,529 |  |   | 620,937 |  |   | 648,012 |  |   | 525,806 |  |   | 465,262 |  |   | 420,956 |  |   | 404,184 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                           |   | 82,974 |  |   | 45,732 |  |   | 72,230 |  |   | 127,313 |  |   | 43,884 |  |   | 105,007 |  |   | 122,659 |  |   | 86,353 |  |
| Convertible debentures                                                                                                                                                                                                                                              |   | 98,742 |  |   | 102,920 |  |   | 95,043 |  |   | 105,835 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total long-term debt, including     current portion                                                                                                                                                                                        |   | 16,885 |  |   | 31,878 |  |   | 37,855 |  |   | 57,910 |  |   | 57,609 |  |   | 57,303 |  |   | 56,998 |  |   | 56,731 |  |
| Debt-to-funds flow ratio**                                                                                                                                                                                                                                          |   | 0.8 |  |   | 1.0 |  |   | 1.0 |  |   | 1.2 |  |   | 0.5 |  |   | 0.5 |  |   | 0.6 |  |   | 0.7 |  |
| *   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.                                                      |
| ** 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. |

|         |                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Experienced a significant increase in cash flow from operating activities compared with prior quarters due to increased collections on accounts receivable (collected $76.1 million in Egypt and $12.4 million in Yemen in Q4-2012); |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | Maintained a strong financial position, reporting a debt-to-funds flow ratio of 0.8 at December 31, 2012; |

|         |                                         |
|---------|-----------------------------------------|
| • | Reported net earnings of $34.8 million; |

|         |                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Achieved record quarterly funds flow from operations of $46.8 million, an increase of 77% from Q4-2011, which was principally due to a 59% increase in sales volumes; and |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | Spent $19.8 million on capital programs, which was funded entirely with funds flow from operations. |

|         |                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The recording of an unrealized gain on convertible debentures of $2.9 million recognized in the fourth quarter of 2012, combined with an unrealized loss of $4.4 million recognized on the convertible debentures in the third quarter of 2012; and |

|         |                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------|
| • | An earnings increase of $4.8 million from Q3-2012 to Q4-2012 related to foreign exchange on the convertible debentures. |

|   |
|---|
|   |  |  |
| 6 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|               |
|---------------|
|               |  |  |  |  |  |  |
|          |   | 2012 |  |   | 2011 |  |
| Egypt         |   | 16,656 |  |   | 10,671 |  |
| Yemen         |   | 840 |  |   | 1,461 |  |
| Total Company |   | 17,496 |  |   | 12,132 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Consolidated                      |   |   |   |   |   |   |   |   |
|                              |   | 2012 |   |   | 2011 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 633,992 |  |   | 99.01 |  |   | 449,794 |  |   | 101.58 |  |
| Royalties                         |   | 316,326 |  |   | 49.40 |  |   | 202,040 |  |   | 45.63 |  |
| Current taxes                     |   | 88,603 |  |   | 13.84 |  |   | 74,017 |  |   | 16.71 |  |
| Production and operating expenses |   | 52,367 |  |   | 8.18 |  |   | 36,662 |  |   | 8.28 |  |
| Netback                           |   | 176,696 |  |   | 27.59 |  |   | 137,075 |  |   | 30.96 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Egypt                             |   |   |   |   |   |   |   |   |
|                              |   | 2012 |   |   | 2011 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 600,536 |  |   | 98.51 |  |   | 391,884 |  |   | 100.61 |  |
| Royalties                         |   | 303,651 |  |   | 49.81 |  |   | 176,033 |  |   | 45.20 |  |
| Current taxes                     |   | 84,935 |  |   | 13.93 |  |   | 66,630 |  |   | 17.11 |  |
| Production and operating expenses |   | 43,247 |  |   | 7.09 |  |   | 27,407 |  |   | 7.04 |  |
| Netback                           |   | 168,703 |  |   | 27.68 |  |   | 121,814 |  |   | 31.26 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Yemen                             |   |   |   |   |   |   |   |   |
|                              |   | 2012 |   |   | 2011 |   |
| (000s, except per Bbl amounts)    |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Oil sales                         |   | 33,456 |  |   | 108.82 |  |   | 57,910 |  |   | 108.60 |  |
| Royalties                         |   | 12,675 |  |   | 41.23 |  |   | 26,007 |  |   | 48.77 |  |
| Current taxes                     |   | 3,668 |  |   | 11.93 |  |   | 7,387 |  |   | 13.85 |  |
| Production and operating expenses |   | 9,120 |  |   | 29.66 |  |   | 9,255 |  |   | 17.36 |  |
| Netback                           |   | 7,993 |  |   | 26.00 |  |   | 15,261 |  |   | 28.62 |  |

|      |
|------|
|      |  |  |
| 2012 |   | 7 |

----

|        |
|--------|
|        |  |  |
|   |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        |   | 2012 |   |   | 2011 |   |
| (000s, except Bbl amounts)                  |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| G&A (gross)                             |   | 27,545 |  |   | 4.30 |  |   | 17,946 |  |   | 4.05 |  |
| Stock-based compensation                    |   | 4,502 |  |   | 0.70 |  |   | 3,062 |  |   | 0.69 |  |
| Capitalized G&A and overhead recoveries |   | (3,841 | ) |   | (0.60 | ) |   | (2,115 | ) |   | (0.48 | ) |
| G&A (net)                               |   | 28,206 |  |   | 4.40 |  |   | 18,893 |  |   | 4.26 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |
| (000s)                                   |   | 2012 |  |   | 2011 |  |
| Interest expense                         |   | $ | 8,006 |  |   | $ | 3,794 |  |
| Issue costs for convertible debentures   |   | 4,630 |  |   | — |  |
| Amortization of deferred financing costs |   | 1,265 |  |   | 1,189 |  |
| Finance costs                            |   | $ | 13,901 |  |   | $ | 4,983 |  |

|   |
|---|
|   |  |  |
| 8 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
|                           |   | 2012 |   |   | 2011 |   |
| (000s, except per Bbl amounts) |   | $ |  |   | $/Bbl |  |   | $ |  |   | $/Bbl |  |
| Egypt                          |   | 44,442 |  |   | 7.29 |  |   | 31,035 |  |   | 7.97 |  |
| Yemen                          |   | 2,095 |  |   | 6.81 |  |   | 3,585 |  |   | 6.72 |  |
| Corporate                      |   | 409 |  |   | — |  |   | 461 |  |   | — |  |
|                           |   | 46,946 |  |   | 7.33 |  |   | 35,081 |  |   | 7.92 |  |

|              |
|--------------|
|              |  |  |  |  |  |  |
| ($000s)      |   | 2012 |  |   | 2011 |  |
| Egypt        |   | 50,220 |  |   | 63,177 |  |
| Yemen        |   | 1,239 |  |   | 5,495 |  |
| Acquisitions |   | 27,259 |  |   | 74,814 |  |
| Corporate    |   | 192 |  |   | 1,447 |  |
| Total        |   | 78,910 |  |   | 144,933 |  |

|      |
|------|
|      |  |  |
| 2012 |   | 9 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                            |  |  |  |  |  |  |  |  |  |
| Proved                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| ($000s, except volumes and $/Bbl amounts)                                                                                                                                                                                                                                                  |   | 2012 |  |   | 2011 |  |   | 2010 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                  |   | 51,651 |  |   | 70,119 |  |   | 65,342 |  |
| Acquisitions                                                                                                                                                                                                                                                                               |   | 27,305 |  |   | 39,497 |  |   | — |  |
| Dispositions                                                                                                                                                                                                                                                                               |   | — |  |   | — |  |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                       |   | (4,706 | ) |   | (6,165 | ) |   | 4,776 |  |
|                                                                                                                                                                                                                                                                                       |   | 74,250 |  |   | 103,451 |  |   | 70,118 |  |
| Reserve additions and revisions (MBbl)                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                |   | 10,999 |  |   | 4,672 |  |   | 4,845 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                          |   | — |  |   | 7,448 |  |   | — |  |
| Total reserve additions (MBbl)                                                                                                                                                                                                                                                             |   | 10,999 |  |   | 12,120 |  |   | 4,845 |  |
| Average cost per Bbl                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                    |   | 4.27 |  |   | 13.45 |  |   | 14.47 |  |
| FD&A                                                                                                                                                                                                                                                                                   |   | 6.75 |  |   | 8.54 |  |   | 14.47 |  |
| Three-year weighted average cost per Bbl                                                                                                                                                                                                                                                   |   |  |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                    |   | 8.77 |  |   | 8.76 |  |   | 8.06 |  |
| FD&A                                                                                                                                                                                                                                                                                   |   | 8.86 |  |   | 7.85 |  |   | 8.10 |  |
| 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)                                                                                                                                                                                                                                                  |   | 2012 |  |   | 2011 |  |   | 2010 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                  |   | 51,651 |  |   | 70,119 |  |   | 65,342 |  |
| Acquisitions                                                                                                                                                                                                                                                                               |   | 27,305 |  |   | 39,497 |  |   | — |  |
| Dispositions                                                                                                                                                                                                                                                                               |   | — |  |   | — |  |   | — |  |
| Net change from previous year’s future capital                                                                                                                                                                                                                                       |   | 1,191 |  |   | (14,256 | ) |   | 42,546 |  |
|                                                                                                                                                                                                                                                                                       |   | 80,147 |  |   | 95,360 |  |   | 107,888 |  |
| Reserve additions and revisions (MBbl)                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                |   | 10,888 |  |   | 6,612 |  |   | 9,895 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                          |   | — |  |   | 11,586 |  |   | — |  |
| Total reserve additions (MBbl)                                                                                                                                                                                                                                                             |   | 10,888 |  |   | 18,198 |  |   | 9,895 |  |
| Average cost per Bbl                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                    |   | 4.46 |  |   | 7.07 |  |   | 10.90 |  |
| FD&A                                                                                                                                                                                                                                                                                   |   | 7.36 |  |   | 5.24 |  |   | 10.90 |  |
| Three-year weighted average cost per Bbl                                                                                                                                                                                                                                                   |   |  |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                    |   | 7.42 |  |   | 8.04 |  |   | 8.00 |  |
| FD&A                                                                                                                                                                                                                                                                                   |   | 7.27 |  |   | 6.79 |  |   | 7.83 |  |
| 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 |  |   | 2012 |  |   | 2011 |  |   | 2010 |  |
| Netback ($/Bbl)*                                                                                                                                                                                                                                    |   | 22.85 |  |   | 22.08 |  |   | 26.24 |  |   | 20.07 |  |
| Proved F&D costs ($/Bbl)                                                                                                                                                                                                                        |   | 8.77 |  |   | 4.27 |  |   | 13.45 |  |   | 14.47 |  |
| Proved FD&A costs ($/Bbl)                                                                                                                                                                                                                       |   | 8.86 |  |   | 6.75 |  |   | 8.54 |  |   | 14.47 |  |
| F&D Recycle ratio                                                                                                                                                                                                                               |   | 2.61 |  |   | 5.17 |  |   | 1.95 |  |   | 1.39 |  |
| FD&A Recycle ratio                                                                                                                                                                                                                              |   | 2.58 |  |   | 3.27 |  |   | 3.07 |  |   | 1.39 |  |
| * 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. |

|    |
|----|
|    |  |  |
| 10 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                   |   | Three-Year |  |   |   |   |   |   |   |
| Proved Plus Probable                                                                                                                                                                                                                                                   |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                   |   | Average |  |   | 2012 |  |   | 2011 |  |   | 2010 |  |
| Netback ($/Bbl)*                                                                                                                                                                                                                                                       |   | 22.85 |  |   | 22.08 |  |   | 26.24 |  |   | 20.07 |  |
| Proved plus Probable F&D costs ($/Bbl)                                                                                                                                                                                                                             |   | 7.42 |  |   | 4.46 |  |   | 7.07 |  |   | 10.90 |  |
| Proved plus Probable FD&A costs ($/Bbl)                                                                                                                                                                                                                            |   | 7.27 |  |   | 7.36 |  |   | 5.24 |  |   | 10.90 |  |
| F&D Recycle ratio                                                                                                                                                                                                                                                  |   | 3.08 |  |   | 4.95 |  |   | 3.71 |  |   | 1.84 |  |
| FD&A Recycle ratio                                                                                                                                                                                                                                                 |   | 3.14 |  |   | 3.00 |  |   | 5.01 |  |   | 1.84 |  |
| * 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)                                                                                                                                                                                                         |   | 2012 |  |   | 2011 |  |   | 2010 |  |
| Net earnings                                                                                                                                                                                                                                        |   | 87,734 |  |   | 81,392 |  |   | 40,565 |  |
| Adjustments for non-cash items:                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Depletion, depreciation and amortization                                                                                                                                                                                                            |   | 46,946 |  |   | 35,081 |  |   | 28,140 |  |
| Stock-based compensation                                                                                                                                                                                                                            |   | 4,502 |  |   | 3,062 |  |   | 2,360 |  |
| Deferred income taxes                                                                                                                                                                                                                               |   | (528 | ) |   | (4,445 | ) |   | 1,894 |  |
| Amortization of deferred financing costs                                                                                                                                                                                                            |   | 1,265 |  |   | 1,189 |  |   | 836 |  |
| Amortization of deferred lease inducement                                                                                                                                                                                                           |   | 458 |  |   | 350 |  |   | — |  |
| Unrealized (gain) loss on commodity contracts                                                                                                                                                                                                       |   | 125 |  |   | 177 |  |   | (816 | ) |
| Unrealized foreign exchange (gain) loss                                                                                                                                                                                                             |   | (141 | ) |   | 416 |  |   | — |  |
| Unrealized (gain) loss on financial instruments                                                                                                                                                                                                     |   | 425 |  |   | — |  |   | — |  |
| Impairment of exploration and evaluation assets                                                                                                                                                                                                     |   | 76 |  |   | 12,147 |  |   | — |  |
| Gain on acquisition                                                                                                                                                                                                                                 |   | — |  |   | (13,187 | ) |   | — |  |
| Recycle netback*                                                                                                                                                                                                                                    |   | 140,862 |  |   | 116,182 |  |   | 72,979 |  |
| Sales volumes (MBbl)                                                                                                                                                                                                                                |   | 6,380 |  |   | 4,428 |  |   | 3,635 |  |
| Recycle netback per Bbl*                                                                                                                                                                                                                            |   | 22.08 |  |   | 26.24 |  |   | 20.07 |  |
| * 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. |

|      |
|------|
|      |  |  |
| 2012 |   | 11 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                 |  |  |  |  |  |  |
| Sources and Uses of Cash                                                                                                                                                                                        |   |   |   |   |
| ($000s)                                                                                                                                                                                                         |   | 2012 |  |   | 2011 |  |
| Cash sourced                                                                                                                                                                                                    |   |  |   |  |
| Funds flow from operations*                                                                                                                                                                                     |   | 153,498 |  |   | 119,976 |  |
| Transfer from restricted cash                                                                                                                                                                                   |   | 1,445 |  |   | 1,161 |  |
| Issue of convertible debentures                                                                                                                                                                                 |   | 97,851 |  |   | — |  |
| Exercise of options                                                                                                                                                                                             |   | 3,333 |  |   | 1,946 |  |
| Issuance of common shares, net of share issuance costs                                                                                                                                                          |   | — |  |   | 71,583 |  |
| Other                                                                                                                                                                                                           |   | 639 |  |   | 772 |  |
|                                                                                                                                                                                                            |   | 256,766 |  |   | 195,438 |  |
| Cash used                                                                                                                                                                                                       |   |   |   |   |
| Capital expenditures                                                                                                                                                                                            |   | 51,651 |  |   | 70,118 |  |
| Deferred financing costs                                                                                                                                                                                        |   | 440 |  |   | — |  |
| Acquisitions                                                                                                                                                                                                    |   | 27,259 |  |   | 73,836 |  |
| Repayment of long-term debt                                                                                                                                                                                     |   | 41,550 |  |   | 30,000 |  |
| Finance costs                                                                                                                                                                                                   |   | 11,367 |  |   | 3,550 |  |
| Other                                                                                                                                                                                                           |   | 592 |  |   | 315 |  |
|                                                                                                                                                                                                            |   | 132,859 |  |   | 177,819 |  |
|                                                                                                                                                                                                            |   | 123,907 |  |   | 17,619 |  |
| Changes in non-cash working capital                                                                                                                                                                             |   | (84,817 | ) |   | (31,517 | ) |
| Increase (decrease) in cash and cash equivalents                                                                                                                                                                |   | 39,090 |  |   | (13,898 | ) |
| Cash and cash equivalents – beginning of year                                                                                                                                                             |   | 43,884 |  |   | 57,782 |  |
| Cash and cash equivalents – end of year                                                                                                                                                                   |   | 82,974 |  |   | 43,884 |  |
| *   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)                                                |   | December 31, 2012 |  |   | December 31, 2011 |  |
| Bank debt                                              |   | 18,450 |  |   | 60,000 |  |
| Deferred financing costs                               |   | (1,565 | ) |   | (2,391 | ) |
| Long–term debt (net of deferred financing costs) |   | 16,885 |  |   | 57,609 |  |

|    |
|----|
|    |  |  |
| 12 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($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 |   | 48,587 |  |   | 48,587 |  |   | — |  |   | — |  |   | — |  |
| Long-term debt                                                                                                                                        |   | Yes - Liability |   | 18,450 |  |   | — |  |   | 18,450 |  |   | — |  |   | — |  |
| Convertible debentures                                                                                                                                |   | Yes - Liability |   | 98,742 |  |   | — |  |   | — |  |   | 98,742 |  |   | — |  |
| Office and equipment leases 3                                                                                                                         |   | No |   | 14,728 |  |   | 6,819 |  |   | 2,324 |  |   | 2,072 |  |   | 3,513 |  |
| Minimum work commitments 4                                                                                                                            |   | No |   | 4,350 |  |   | 4,350 |  |   | — |  |   | — |  |   | — |  |
| Total                                                                                                                                                 |   |   |   | 184,857 |  |   | 59,756 |  |   | 20,774 |  |   | 100,814 |  |   | 3,513 |  |
| 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, 2012 exchange rates.                                           |
| 3 Office and equipment leases includes 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. |

|      |
|------|
|      |  |  |
| 2012 |   | 13 |

----

|        |
|--------|
|        |  |  |
|   |

|    |
|----|
|    |  |  |
| 14 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|      |
|------|
|      |  |  |
| 2012 |   | 15 |

----

|        |
|--------|
|        |  |  |
|   |

|    |
|----|
|    |  |  |
| 16 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|      |
|------|
|      |  |  |
| 2012 |   | 17 |

----

|        |
|--------|
|        |  |  |
|   |

|    |
|----|
|    |  |  |
| 18 |   | 2012 |

----

|        |
|--------|
|        |  |  |
|   |

|      |
|------|
|      |  |  |
| 2012 |   | 19 |