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JUN

201

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Corporate aCtivityGalilee energy 27 JuNe: Galilee Energy reported that Becamal Pty Ltd and Corostar Pty Ltd, the family companies of former MD Campbell Smith, had sold a 16.1% stake in the company, retaining a 3.3% interest. The new owner of the largest block of Galilee shares is unlisted proprietary company Malt Energy. The directors of Malt include former Eastern Star Gas General Manager Ashley Edgar and Chief Operating Officers Gerard Ryan and Peter Lansom as well as former Challenger Energy MD Paul Bilston. Malt paid $0.12 a share for the Galilee stake, for a total outlay of $2.9m. At the end of the last quarter Galilee held $28.3m in cash, having sold its New Zealand coal business for $30m in 2011. Since then the company has been examining opportunities for investment in onshore oil and gas in Australia outside its Galilee Basin CSG assets but has yet to find a suitably priced opportunity. At the end of June Galilee shares closed at $0.13, valuing the company at $19.8m and giving it cash backing of $0.186 per share.

On the 7th of June Galilee announced the sad news that the company’s Chairman Steven Koroknay had passed away. As a result of his passing Cam Rathie was appointed Interim Chairman of Galilee and CEO Glenn Haworth was appointed MD. Mr Koroknay was also a non-executive director of Metgasco and Cue Energy Resources.

WestSide Corporation 19 JuNe: WestSide Corporation reported that it had completed a strategic review, following the collapse of PetroChina’s mooted takeover of the company. Julie Beeby will leave her role as CEO of the company by the end of August and WestSide will seek to appoint an independent Chairman later this year. Current Executive Chairman Angus Karoll, who is a major shareholder in the company with a 6.5% stake, intends to remain on the Board as a non-executive Director. WestSide will focus on improving production at its Meridian SeamGas Field and plans to negotiate new gas supply agreements for the field.

During June all three LNG consortia constructing CSG-to-LNG projects on Curtis Island achieved the milestone of raising a roof on one of their LNG tanks. It was the second roof raised for QCLNG, following the lifting of the roof for its first tank in February. For APLNG and GLNG it was the first roof lift, with a further tank to follow. All three LNG consortia are reporting that they are on track to begin LNG production from their first trains on schedule, in 2014 for QCLNG and in 2015 for APLNG and GLNG.

QCLNG LNG Tanks, Curtis Island

raiSiNG the roof

Source: QGC 26/06/2013

http://www.galilee-energy.com.au/PDF/ASX-27June13_substantialshareholderRev3.pdfhttp://www.galilee-energy.com.au/PDF/2013.06.07_Death_of_Chairman_Steven_J_Koroknay.pdfhttp://newwebchart.weblink.com.au/clients/pfl/article.asp?asx=WCL&view=2740637

RLMS UPSTREAM GAS REPORT | 2JUN 13

Blue energy 11 JuNe: Blue Energy announced that it had appointed John Ellice-Flint as the company’s Chairman, in addition to his current role as Technical Director. The former Santos MD had been serving as interim Chairman after the retirement of previous incumbent, Peter Cockcroft, but has now taken the role permanently. Blue also announced that the contract for its MD, John Phillips, had been extended for a further year.

Comet ridge 6 JuNe: Comet Ridge reported that it had appointed Christopher Pieters, a non-executive Director of the company, as its Commercial Director. The appointment is for an initial term of four months but may be extended. Mr Pieters’ previous roles have included MD of Botswana-focussed CSG explorer Tlou Energy and Chief Commercial Officer of Sunshine Gas.

exploratioN aNd appraiSalSantos 28 JuNe: Santos advised that it had applied for approval to commence a new exploration and appraisal program at its Narrabri CSG Project. The company plans to resume operations at three multi-well pilots suspended since its takeover of Eastern Star Gas, re-enter three existing wells and drill twelve new pilot wells and one corehole. All of the operations would be conducted within the Pilliga State Forest and as well as seeking the required approvals from the New South Wales Government Santos has elected to voluntarily refer the program to the Federal Government for assessment under the EPBC Act.

Santos had previously planned to commence a 50 well exploration and appraisal program at Narrabri during 2013, including wells on private land as well as in the Pilliga State Forest. The company has now changed tack to focus exclusively on parts of the field located within the Pilliga. Santos aims to start the new program later this year and expects it to last two to three years.

In April Santos announced plans to develop Narrabri to satisfy 25% of New South Wales’ gas demands. This plan would involve production of up to 100 TJ/day with first gas by 2016-17. The company acquired Eastern Star Gas to gain control of the Narrabri Field; it owns 80% of the project with partner EnergyAustralia holding 20%.

Comet ridge 20 JuNe: Comet Ridge advised that the four spot Mira Pilot had been brought online at the Mahalo Project in the Bowen Basin. There are now two four spot pilots operating at the project with the JV aiming to establish the first reserves at the field this year. Although two wells in the Mahalo Pilot are producing some gas to surface as dewatering continues, flows have not been as high as expected and the JV may look to workover the wells. Santos is the operator of Mahalo with a 30% stake; APLNG has an equivalent interest with Comet Ridge holding 35% and Stanwell Corporation the remaining 5%.

aGl energy 13 JuNe: AGL Energy’s Head of Exploration, Andrew Falkner, told Galilee Basin stakeholders that the company is unlikely to commit to developing its Glenaras CSG Field in the basin for at least five to seven years. He said the company would continue exploration and appraisal of the field at its current low-level basis for at least that time period. AGL is continuing efforts to improve performance of the five-spot Glenaras Pilot after a number of years of problems with water storage and pumping. The pilot wells were drilled in 2008 and although one of the wells produced the first CSG flow to surface in the Galilee, they are yet to produce at threshold commercial rates. AGL has established a large contingent gas resource at the field within the targeted Betts Creek Measures; once commercial flows are achieved part of this will be converted to reserves. AGL and Galilee Energy each hold a 50% interest in ATP 529P, where Glenaras is located.

GoverNmeNt aNd reGUlatioNfederal Government 19 JuNe: The Australian Senate passed the Federal Government’s ‘Water trigger’ bill, an amendment to the Environment Protection and Biodiversity Conservation Act 1999. Under the amendment any CSG or large coal development judged likely to have a significant impact on a water resource will require Federal Government assessment and approval. Under the bill a water resource is defined as surface or ground water, or a watercourse, lake, wetland or aquifer. The bill will come into force once it has been assented to by the Governor-General.

http://www.cometridge.com.au/PDF/ASX6Jun13_Appointment%20of%20Executive%20Director.pdfhttp://www.santos.com/library/130628_Santos_seeks_approval_for_Pilliga_exploration_program.pdfhttp://www.gfcq.org.au/whats-happening/galilee-gas-industry-update.htmlhttp://www.environment.gov.au/epbc/about/2013-amendments-q-and-a.htmlhttp://www.blueenergy.com.au/_dbase_upl/Corporate%20Update%20(final).pdfhttp://www.cometridge.com.au/PDF/ASX20Jun13_Mira%20Field%20Piolt%20Scheme%20On-Line.pdf

RLMS UPSTREAM GAS REPORT | 3JUN 13

eaSterN aUStralia CSG reServeS aS at 31 deCemBer 2012

Using company announcements, company presentations and documentation, information from Government agencies as well as direct communication with participants in the upstream gas industry, RLMS has compiled the Eastern Australian CSG Reserves as at 31 December 2012. These have been collated on both a company and by Basin basis.

The definition of gas reserves and resources used are those meeting the criteria of the Petroleum Resource Management System (PRMS) of the Society of Petroleum Engineers Inc. The PRMS is an internationally accepted standard of reporting reserves and resources is used both by the Australian Securities Exchange and the US Securities and Exchange Commission.

Eastern Australia refers to Queensland, New South Wales, Victoria, Tasmania and South Australia; these states being interconnected by the Eastern Australian gas pipeline grid.

The estimates for the aggregate CSG reserves and resources in Eastern Australia at 31 December 2012 are presented in the following table.

Eastern Australia CSG Reserves and Resources as at 31 December 2012

Reserves PJ1P 5,693

2P 44,442

3P 68,924

Contingent Resources2C 31,853

3C 45,446

2P + 2C 76,295

Many companies only report 2P gas reserve figures and do not report specific 1P or 3P reserves. Again many companies do not report contingent or prospective gas resources. Accordingly the reported 1P and 3P reserves and the contingent resources underestimate the actual level of natural gas reserves and contingent resources.

Reserve growth in the past few years has moderated from the rapid rates seen in the last decade. This is a result of the maturation of the largest CSG fields, CSG companies moving their focus from building reserves to building production and industry moratoriums in New South Wales. The following graph shows the historical growth of reserves.

RLMS UPSTREAM GAS REPORT | 4JUN 13

The CSG reserves and resources on a net company basis at 31 December 2012 are given in the following table.

Eastern Australia CSG Reserves and Resources by Company at 31 December 2012 in PJ

Company 1P Reserves

2P Reserves

3P Reserves 2C Resources 3C Resources 2P + 2C

AGL Energy - 2,170 3,961 130 545 2,300

Arrow Energy 669 9,494 13,970 2,521 2,521 12,015

Blue Energy - 50 180 820 3,481 870

Clarence Moreton Resources - 9 190 - 315 9

Comet Ridge - - - 260 2,731 260

ConocoPhillips - 4,895 5,990 1,434 3,686 6,329

Dart Energy - - - 542 1,484 542

Energy Australia - 285 285 692 692 977

ERM Power - 5 114 - 189 17

Galilee Energy - - - 129 545 129

Harcourt Petroleum 24 343 824 594 594 937

KOGAS 270 807 1,024 246 246 1,053

Metgasco 3 428 2,542 2,511 2,511 2,939

Mitsui Group 57 505 1,265 301 301 806

Origin Energy - 5,073 6,879 1,434 3,686 6,507

PETRONAS 494 1,478 1,876 450 450 1,928

QGC 3,096 10,326 18,876 13,700 13,700 24,026

Red Sky - 3 76 - 126 3

Santos 539 3,061 3,495 4,442 4,442 7,503

Senex - 157 358 240 240 397

Sinopec - 3,263 3,993 957 2,457 4,220

Stanwell Corp 143 143 - 55 143

Total France 494 1,478 1,876 450 450 1,928

Toyota Tsusho - 122 122 - - 122

Westside Corp 47 347 885 - - 347

Total 5,693 44,442 68,924 31,853 45,446 76,295

The following graphs illustrate the ownership of 2P and 3P CSG reserves by company in Eastern Australia.

Please note that reserves for the New South Wales Clarence Moreton Basin tenements PELs 457 and 479, owned by a JV of Clarence Moreton Resources (50%), ERM Power (30%) and Red Sky Energy (20%), have been collated under ERM Power, which operates the tenements and holds options to buy out its partners.

TOTAL RESERVES: 44 442 PJ

(31 December 2012)

RLMS UPSTREAM GAS REPORT | 5JUN 13

Please note that reserves for the New South Wales Clarence Moreton Basin tenements PELs 457 and 479, owned by a JV of Clarence Moreton Resources (50%), ERM Power (30%) and Red Sky Energy (20%), have been collated under ERM Power, which operates the tenements and holds options to buy out its partners.

The following graph shows the concentration of ownership and control of Eastern Australian 2P CSG Reserves by LNG proponents. More than 90% of reserves are owned or controlled by LNG consortia.

TOTAL RESERVES: 68 924 PJ

(31 December 2012)

TOTAL RESERVES: 44,442 PJ

Queensland: 31,620 PJ - 93.7%New South Wales: 2,822 PJ - 6.3%

Notes:

Control of AGL Energy Moranbah reserves are allocated to the Arrow LNG consortium. AGL MD Michael Fraser has said on a number of occasions that Arrow has control over these reserves.

QCLNG reserves includes reserves owned by QGC, CNOOC, Tokyo Gas and Toyota Tsusho.

Harcourt Petroleum reserves are allocated to LNG Limited’s proposed Fisherman’s Landing LNG Project, as per a HOA between Harcourt’s owner PetroChina and LNG Limited.

RLMS UPSTREAM GAS REPORT | 6JUN 13

The following table shows 2P and 3P CSG Reserves by Basin at 31 December 2012. While most companies report their total reserves and resources, few provide any details by gas field or by basin other than for 2P reserves. In many cases, even the 2P reserves are only reported by broad geographical areas. However through utilisation of information available from Government agencies responsible for administering the relevant petroleum activities enables the 2P reserves on a Basin by Basin criteria to be derived.

Eastern Australia CSG Reserves by BasinBasin 2P Reserves Percentage 3P Reserves Percentage

Bowen[1] 18,070 40.7 25,172 36.5

Clarence-Moreton 445 1.0 2,922 4.3

Gloucester 669 1.5 832 1.2

Gunnedah 1,426 3.2 1,426 2.1

Surat[1] 23,550 53.0 38,115 55.3

Sydney 282 0.6 457 0.6

Total 44,442 100.0 68,924 100.0

It will be noted that over 93% of the 2P and 3P reserves of CSG are within the Bowen and Surat Basins in Queensland, the two sedimentary basins with the longest period of CSG development and where there are extensive gas pipeline gathering and transmission systems. The following graph shows the distribution of 2P reserves by basin.

The following table presents the 2P and 3P CSG reserves of Eastern Australia by state.Eastern Australia CSG Reserves by state as at 31 December 2012 in PJ:

Basin 2P Reserves Percentage 3P Reserves Percentage

New South WalesClarence-Moreton 445 1.0 2,922 4.3

Gloucester 669 1.5 832 1.2

Gunnedah 1,426 3.2 1,426 2.1

Sydney 282 0.6 457 0.6

Total NSW 2,822 [6.3] 5,637 [8.2]QueenslandBowen 18,070 40.7 25,172 36.6

Surat 23,550 53.0 38,115 55.2

Total Queensland 41,620 [93.7] 63,287 [91.8]

Overall Total 44,442 100.0 68,924 100.0

As a result of the New South Wales’ Government’s introduction of tough new CSG regulations a number of companies have suspended exploration and development projects in the state. The following graphs show the reserves affected by these suspensions.

Note1: The distribution of reserves between the Bowen and Surat Basins is an RLMS estimate based on Company announcements and presentations, information from the Queensland Department of Natural Resources and Mines and direct advice from companies.

Note: Suspensions shown are AGL Energy Hunter Gas Project in the Sydney Basin and Metgasco Casino Gas Project in the Clarence Moreton Basin.

RLMS UPSTREAM GAS REPORT | 7JUN 13

armour energy 25 JuNe: Armour Energy announced that it had appointed Robbert de Weijer as CEO, effective 8 July 2013. Mr de Weijer was most recently CEO, Australia for Dart Energy, prior to which he was COO at Arrow Energy after transferring from Arrow shareholder Shell. He will be replacing Phil McNamara who led Armour through its IPO last year.

Buru energy 19 JuNe: Buru Energy reported that the state agreement it concluded with the WA Government had passed both houses of the state’s parliament and was now awaiting royal assent before it came into force. The agreement will override some aspects of the state’s usual petroleum exploration regime for five Canning Basin tenements. The agreement is for an initial term of 25 years and delays Buru’s obligation to relinquish 50% of the tenements’ by ten years, to 2024, subject to the company completing agreed work programs. It also allows crediting of the appraisal of gas discoveries against adjacent permits’ statutory work programs.

In return for these concessions from the state Buru has committed to a development in the Canning to supply the WA domestic gas market, if viable. The company and its 50/50 JV partner Mitsubishi must submit a proposal for the development of a domestic gas project and associated gas pipeline to the state by the middle of 2016, with the government targeting the delivery of 1,500 PJ of gas into the domestic market over 25 years. The agreement between Buru and the government also provides for the development of an LNG export facility after the approval of the domestic project. Any LNG development would be subject to WA’s 15% domestic reservation policy. The agreement covers five key Canning tenements with a total area of 17,000 km2, including permits containing the Valhalla and Yulleroo gas discoveries.

icon energy 17 JuNe: Icon Energy reported that it had exercised a put option to sell a 4.9% interest in the Nappamerri Trough tenement ATP 855P to Beach Energy. Icon will receive $US18m ($16.5m) for the sale of the interest, while retaining a 35.1% stake in the tenement. Beach granted the option to Icon when the company announced Chevron’s farm-in to its Nappamerri acreage. Beach will now hold 46.9% of ATP 855P with Chevron having 18%; if the oil major proceeds with both stages of the farm-in its interest will increase to 36% with Beach’s reducing to 28.9%. Icon now faces the task of funding its share of the extensive ongoing exploration and appraisal program in the tenement; Beach is currently drilling two exploration wells in the tenement, both of which will be fracture stimulated and flow tested.

petrofrontier Corporation 11 JuNe: PetroFrontier Corporation announced that Statoil would become operator of its six Southern Georgina Basin tenements from the start of September, after the two companies agreed to amend their farm-in. Under the new terms of the farm-in Statoil can earn up to 80% of PetroFrontier’s interest in the acreage, up from 65%. In return the Norwegian company will wholly fund up to US$160m ($160.4m) of further exploration and appraisal through to the end of the farm-in, if it elects to proceed with all three phases of the agreement.

Under the original farm-in PetroFrontier was called on to contribute US$45m out of a total spend of US$230m over three phases. The two companies have so far jointly spent US$30m on exploration targeting the Lower Arthur Creek shales in the Southern Georgina however Toronto Stock Exchange-listed PetroFrontier faced difficulties raising funds for its ongoing contributions, forcing it to investigate strategic options before it was able to negotiate the amended farm-in with Statoil. The exploration conducted so far included drilling three horizontal wells however testing of the wells was unsuccessful. One of the wells failed to recover hydrocarbons after being fracced and tested, a second was suspended when PetroFrontier was unable to secure specialised equipment after hydrogen sulphide was detected and the fraccing of the third was halted after a casing failure.

Statoil has committed to the next phase of the farm-in, which will involve spending US$50m to acquire 385 km of 2D seismic and to drill, fracture stimulate and flow test four to six vertical wells. The Norwegian company plans to complete this work by the end of 2014.

The farm-in covers tenements in the NT section of the Southern Georgina Basin with a total area of 57,100 km2 (14.1m acres). PetroFrontier originally held 100% of EP 103, EP 104, EPA 213 and EPA 252 and 75% of EP 127 and EP 128, with ASX-listed Baraka Petroleum holding the remaining interests in the latter two permits. The Australian company will be required to contribute exploration funds as per its ownership interest in the two tenements. Implementation of the amended farm-in agreement between PetroFrontier and Statoil is subject to FIRB and TSX approval.

pipeliNeSarmour energy 26 JuNe: Armour Energy reported that it had signed a non-binding HOA with the APA Group to work towards linking its Northern Territory and Queensland gas fields to Eastern Australia gas markets. The first part of the project envisages construction of a 350 km long pipeline with a capacity of up to 130 PJ/year from near Burketown in the South Nicholson

http://www.armourenergy.com.au/assets/downloads/announcements/2013/june/asx-20130625-management-change.pdfhttp://www.buruenergy.com/download/asx-releases/2013/29.State%20Agreement%20Granted%20by%20WA%20Parliament.pdfhttp://clients.weblink.com.au/clients/iconenergy/article.asp?asx=ICN&view=2740251http://www.petrofrontier.com/en/news/pfc_june_2013_press_release_capital_program_and_amended_farmin_final.pdf?PHPSESSID=rfs2ug54mms14bv3apqa774am0http://www.armourenergy.com.au/assets/downloads/announcements/2013/june/asx_20130626_apa-announcement.pdf

RLMS UPSTREAM GAS REPORT | 8JUN 13

Basin to Mt Isa. This would also involve increasing the capacity and reversing the flow of APA’s existing Ballera to Mt Isa pipeline to allow Armour’s projected gas production to reach Queensland markets through Wallumbilla and New South Wales markets through Moomba. The next stage of the agreement envisages delivery of a further 200 PJ/year of Armour gas to Gladstone and the LNG facilities on Curtis Island, either through upgrading existing pipelines or the construction of new connections.

Progression of the ambitious pipeline program is subject to a number of conditions on the part of both APA and Armour. The explorer is required to establish sufficient gas resources, execute conditional gas sales contracts and secure development funding. Armour is aiming to establish a 7.5 to 9 tcf 3C contingent gas resource at its South Nicholson project by the end of 2015. The company is currently drilling the Egilabria-2 horizontal well at the project, targeting the Lawn Hill shales. Once the well has been completed it will be fracture stimulated and flow tested.

Source: Empire Oil and Gas 13/06/2013

lakes oil 20 JuNe: Lakes Oil advised that it had completed drilling the Yallourn Power-1 corehole in PEP 166 in the onshore Gippsland Basin. The well was drilled to a total depth of 1,201 m with Lakes taking 791 m of core for further analysis. The target of the well was shales within the Early Cretaceous Rintouls Creek Formation. Armour Energy funded Yallourn Power-1 as part of a farm-in to earn up to 51% of PEP 166.

empire oil & Gas 18 JuNe: Empire Oil and Gas reported that it had commenced commissioning its Red Gully Gas Plant in the Perth Basin and that first gas had been delivered into the Dampier to Bunbury Gas Pipeline. The Red Gully plant is producing gas and condensate from the Gingin West Field, which Empire estimates holds 30 bcf of recoverable gas plus 2 mmbbls of associated condensate. The capacity of the Red Gully plant is 10 Mmscf/day plus condensate. Empire holds 76.4% of Red Gully with ERM Power owning the remaining 23.6% interest.

The Red Gully Gas Plant

exploratioN/appraiSal/prodUCtioN

reSoUrCeSSenex energy 26 JuNe: Senex Energy reported that it held an estimated 2C contingent gas resource of 1.9 tcf in its Cooper Basin acreage and a 3C contingent resource of 5.5 tcf. This included a 2C resource of 0.8 tcf in the tight gas sands at its newly discovered Hornet conventional gas field in the Mettika Embayment in the Southern Cooper Basin. At the Sasanof Field, also in the Southern Cooper, Senex has established a 2C resource of 0.7 tcf in the tight sands of the Patchawarra Formation and the Murteree Shales. In the Northern Cooper Basin a 2C resource of 0.4 tcf has been estimated in the

Toolachee Coals. The resources were independently assessed by DeGolyer and MacNaughton and follow an extensive exploration and appraisal program of unconventional targets in the Cooper by Senex. The company successfully fracced and flow tested wells at each of the fields where resources have now been established. Senex is now planning a more extensive appraisal program for the Hornet field.

http://www.lakesoil.com.au/index.php/reports-and-announcements?task=callelement&format=raw&item_id=293&element=f85c494b-2b32-4109-b8c1-083cca2b7db6&method=download&args[0]=bb8e053f176249547a7b793b98b4920dhttp://empireoil.com.au/sites/empireoil.com.au/files/EGO_2013_06_18_Red-Gully-Gas-Facility-Update.pdfhttp://www.senexenergy.com.au/files/682/Major-contingent-gas-resource-upgrade-to-55-Tcf.pdf

RLMS UPSTREAM GAS REPORT | 9JUN 13

Senex Energy Cooper Basin Contingent Gas Resources in tcf:

Field 1C 2C 3CHornet 0.153 0.835 2.374

Sasanof 0.121 0.698 2.054

Paning 0.091 0.421 1.055

Total 0.365 1.954 5.483Source: Senex Energy 26/06/2013

Norwest energy 11 JuNe: Norwest Energy announced that DeGolyer & MacNaughton had completed an evaluation of the unconventional resource potential of EP 413 in the Perth Basin, where testing of the Arrowsmith-2 well is continuing. Texas-based D&M estimates that an approximately 90 km2 (22, 000 ac) area within the 508 km2 tenement holds a P50 best estimate prospective resource of 2.6 tcf of gas and 11.1 MMbbl of oil and condensate.

Significant prospective resources were estimated in each of the four targeted exploration intervals within the well, with the Carynginia Formation and the Irwin River Coal Measures identified as having the largest estimates. Norwest is continuing an extended testing program on the Arrowsmith-2 well. The company has flowed back the Kockatea Shale and the Carynginia Formation and is currently awaiting equipment from outside Australia before it proceeds with flow back testing of the High Cliff Sandstone interval and the Irwin River Coal Measures. Norwest and Bharat PetroResources each hold 28% stakes in EP 413 with AWE holding the remainder.

US eia 10 JuNe: The United States Energy Information Administration released an estimate of the technically recoverable shale oil and shale gas resources in forty-one countries outside the USA. The report included an estimate of the resources in six sedimentary basins in Australia, the Beetaloo, Canning, Cooper, Georgina, Maryborough and Perth Basins.

It concludes that these basins hold risked, shale gas-in-place of 2,046 tcf and that 437 tcf of this is technically recoverable on a risked basis. It also estimates that the basins hold 402 billion barrels of risked shale oil-in-place (including condensate) with 17.5 billion barrels of this a risked, technically recoverable resource. The US EIA believes Australia has the potential to be one of the next countries to develop commercial shale gas production but that development may well proceed at a moderate pace due to the remoteness of many of the shale basins. Since the US EIA’s first estimate of shale gas and oil resources in Australia in 2011 exploration has picked up across many basins in the country, including basins not surveyed by the agency. Australia has also seen the entry of many E&P companies that have large shale gas operations in the US, where the industry was pioneered and has grown to a large size.

US EIA Australian Shale Oil and Shale Gas Resource Estimates

Basin Beetaloo Canning CooperShale Formation/s Middle Velkerri and Lower

Kyalla ShalesGoldwyer Formation REM Shales

Risked gas-in-place 194.8 tcf 1,227.2 tcf 325.6 tcf

Risked recoverable gas 43.7 tcf 235.4 tcf 92.9 tcf

Risked oil-in-place 92.9b bbl 243.7b bbl 27.9b bbl

Risked recoverable oil 4.65b bbl 9.75b bbl 1.56b bblSource: US EIA 10/06/2013

Basin Georgina Maryborough PerthShale Formation/s Lower Arthur Shale Goodwood/Cherwell

MudstoneCarynginia Formation and Kockatea Shales

Risked gas-in-place 67.2 tcf 63.9 tcf 167.7 tcf

Risked recoverable gas 12.8 tcf 19.2 tcf 32.7 tcf

Risked oil-in-place 24.5b bbl 0 13.6b bbl

Risked recoverable oil 0.99b bbl 0 0.54b bblSource: US EIA 10/06/2013

http://www.norwestenergy.com.au/index.php/download_file/-/view/577/http://www.eia.gov/analysis/studies/worldshalegas/pdf/chaptersi_iii.pdf

RLMS UPSTREAM GAS REPORT | 10JUN 13

eaSterN aUStralia CSG: reserves at 31 december 2012, production march Quarter 2013 averages

Field Ownership State Basin Reserves (PJ) Production (tJ/day)

Tenure1p 2p 3p

AGL eNeRGyCamden Gas Project AGL Energy* 100% NSW Sydney 140 189 16 PPLs 1, 2, 4, 5; PELs 2, 4, 5, 267Gloucester Basin Project AGL Energy* 100% NSW Gloucester 669 832 PEL 285Hunter Gas Project AGL Energy* 100% NSW Sydney 142 271 PELs 4,267Total for AGL energy including projects operated by others 2,170 3,961 32ARROw eNeRGy100% ownership of Arrow Energy LNG projectTotal for Arrow energy 669 9,494 13,970 79BG GROuP94% ownership of QCLNG project operatorTotal for BG Group including projects operated by others 3,096 10,326 18,876 150BLue eNeRGySapphire Field Blue Energy* 100% Qld Bowen 50 180 ATP 814PTotal for Blue energy 50 180eRM POweRClarence-Moreton ERM Power *50% CMR 30%, Red Sky 20% NSW

Clarence-Moreton 17 159 PEL 457

Total for eRM Power 9 190HARCOuRT PeTROLeuMMungi/Harcourt Harcourt*72% Mitsui 28% QLD Bowen 36 448 1,064 3 PL 94, ATP 56 4PLilyvaleTimmy Harcourt*62.9% Mitsui 37.1% QLD Bowen 67 175 ATP 602PTotal for Harcout Petroleum 36 515 1,239 3MeTGASCOCasino Gas Project Metgasco 100% NSW Clarence-Moreton 3 428 2,542 PEL 13, 16

Total for Metgasco 3 428 2,542ORIGIN eNeRGy37.5% ownership of APLNG and project upstream operator  Ironbark Project  Origin 100%  178  889   ATP 788PTotal for Origin energy including projects operated by others 5,073 6,871 128SANTOS30% ownership of GLNG and project operator

Narrabri CSG Project  Santos* 80% EnergyAustralia 20%  NSW  Gunnedah 1,141  PEL 238

Total for Santos including projects operated by others 3,061 125SeNex eNeRGyDon Juan CSG Project Senex Energy* 45%, Arrow Energy 55% Qld Surat 101 197 ATP 771P

Total for Senex energy including projects operated by others 157 358weSTSIde CORPORATIONMeridan  Westside* 51% Mitsui 49%  QLD  Bowen  93 680  1,524  8  PL 94, Coal Mining Leases

 Paranui Westside* 25.5%  Mitsui 24.5% BG 50%  QLD  Bowen  270  ATP 769 W

 Tibrook Westside* 25.5%  Mitsui 24.5% BG 50%  QLD  Bowen  152  ATP 688P W

Total for westside 47 347 885 4

RLMS UPSTREAM GAS REPORT | 11JUN 13

APLNG (AustrALiA PAcific LNG Project)Ownership: origin energy 37.5% / Conocophillips 37.5% / Sinopec

25%Site: laird point, Curtis island

Operatorship: Upstream and pipelines: origin / lNG: Conocophillips Customers: Sinopec 7.6 mtpa for 20 years, Kansai 1.0 mtpa for 20 years

Status: fid train 1: July 2011 Reserves: 2p: 13,073 pJ 3p: 15,973

fid train 2: July 2012 pJ 2C: 3,825 pJ 3C: 9,829 pJSize: 2 x 4.5 mtpa lNG trains (four-train 18 mtpa ultimate

potential)Production: 301 tJ/day (110 pJ/year)

major fields ownership State Basinreserves (pJ)

production (tJ/day)1p 2p 3p

Spring Gully APLNG* 96.6% Santos 3.4% Qld Bowen 113Peat APLNG* 100% Qld Bowen 6Talinga/Orana APLNG* 100% Qld Surat 94

Arrow eNerGy (Arrow eNerGy LNG Project)Ownership: Shell 50% / petroChina 50% Site: Boatshed point, Curtis islandOperatorship: arrow energy Customers: None announcedStatus: eiS currently being undertaken Reserves: 1p: 669 pJ 2p: 9,494 pJ 3p: 13,970 pJSize: 2 x 4 mtpa lNG trains (four-train 16 mtpa ultimate

potential)Production: 79 tJ/day (28.8 pJ/year)

major fields ownership State Basinreserves (pJ) production

(tJ/day)1p 2p 3pMoranbah Gas Project Arrow Energy* 50% AGL Energy 50% Qld Bowen 4,056 13,008 49

Blackwater Arrow Energy* 100% Qld BowenComet Arrow Energy* 100% Qld BowenNorwich Park Arrow Energy* 100% Qld BowenSurat Basin Fields Arrow Energy* 50%-100% Qld SuratTipton West JV Arrow Energy* 100% Qld Surat 29Kogan North Arrow Energy* CS Energy 50% Qld Surat 11Daandine Arrow Energy* 100% Qld Surat 20

GLNG (GLAdstoNe LNG Project)Ownership: Santos 30% / petroNaS 27.5% / total 27.5%

/ KoGaS 15%Site: hamilton point West, Curtis island

Operatorship: Santos Customers: petroNaS and KoGaS both to take 3.5 mtpa for 20 years

Status: FID taken January 2011, first LNG 2015 Reserves: 1p: 1,797 pJ 2p: 5,376 pJ 2C: 1,638 pJSize: 2 x 3.9 mtpa lNG trains

(three-train 10 mtpa ultimate potential)Production: 125 tJ/day (45.6 pJ/year)

major fields ownership State Basinreserves (pJ) production

(tJ/day)1p 2p 3pFairview GLNG* 76.07% APLNG 23.93% Qld Bowen 108Scotia GLNG* 100% Qld Bowen 27Arcadia GLNG* 100% Qld BowenRoma Shelf GLNG* 100% Qld Surat

QcLNG (QueeNsLANd curtis LNG Project)Ownership: BG Group 90% train 1 and 97.5% train 2 / CNooC

10% train 1 / tokyo Gas 2.5% train 2Site: North China Bay, Curtis island

Operatorship: QGC (100%-owned subsidiary of BG Group) Customers: CNooC 3.6 mtpa from train 1 for 20 years, tokyo Gas 1.2 mtpa from train 2 for 20 years, Chubu electric up to 20 cargoes over 20 years, BG portfolio supply: up to 1.7 mtpa to Quintero lNG in Chile to 2030, up to 3.0 mtpa to Singapore for 20 years

Status: FID taken October 2010, first LNG 2014, second train to start-up a year later

Reserves: 1p: 3,096 pJ 2p: 10,326 pJ 3p: 18,876 pJ 2C: 13,700 pJ

Size: 2 x 4.25 mtpa lNG trains (three-train 12.75 mtpa ultimate potential)

Production: 150 tJ/day (54.8 pJ/year)

major fields ownership State Basinreserves (pJ) production

(tJ/day)1p 2p 3pQGC Central Walloons BG* 59.4%-100% Qld Surat 130

Berwyndale South BG* 100% Qld SuratKenya-Argyle BG* 59.4% Origin 40.6% Qld Surat 82

Woleebee Creek BG* 80% Toyota 15% CNOOC 4% Tokyo Gas 1% Qld Surat

Lacerta BG* 100% Qld SuratCameron BG* 100% Qld SuratParadise Downs BG* 80% VicPet 20% Qld SuratLawton BG* 70% VicPet 30% Qld Surat

QUeeNSlaNd CSG-to-lNG proJeCtS:

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