Drillinginfo International Presentations

Argentina unconventionals Looking forward to the second stage Pablo Goldberg
24 October 2012

The first stage (2010 – 2012) •Huge unconventional potential in
Argentina •The Vaca Muerta shales Acreage and costs involved YPF exploration high impact plan

Copyright © 2012, Drillinginfo, Inc. All rights reserved. All brand
names and trademarks are the properties of their respective companies. 3 Huge Unconventional potential in Argentina Tarija Los Monos (shale gas) Cretaceous Yacoraite (shale/tight/oil/gas) Chaco Paraná Devonian - Permian (shale oil) Neuquen Vaca Muerta (shale oil/gas) Los Molles (shale gas) Agrio (shale oil) Lajas (tight gas) Mulichinco (tight oil/gas) Cuyo Cacheuta (shale oil) Potrerillos (tight oil) San Jorge Pozo D-129 (shale oil/tight oil) Neocomian (shale oil/gas) Austral Inoceramus Argentina in 3rd place shale gas resources after China and USA

names and trademarks are the properties of their respective companies. 4 Huge Unconventional potential in Argentina Vaca Muerta Stratigraphy San Jorge Basin Stratigraphy

names and trademarks are the properties of their respective companies. 5 Huge Unconventional potential in Argentina Austral Basin Stratigraphy Chaco-Parana Basin Stratigraphy

names and trademarks are the properties of their respective companies. 6 The Vaca Muerta shales Vaca Muerta Shales •Evidence of light oil, wet and dry gas •Overpressure gradient from 0.67 to 0.97 psi/ft •45 wells drilled by YPF in Neuquen Basin (Vaca Muerta shales) Under development ,15 wells producing (14 new wells, 1 Workover). All vertical •Initial choked vertical well rates range between 200 and 600 bopd. •Initial well rates; The wells are restricted by 4mm chokes Loma la Lata Norte + Loma Campana fields Net resources : 741 Mmbo; 1,041 BCfg; 927 Boe

names and trademarks are the properties of their respective companies. 7 The Vaca Muerta shales

names and trademarks are the properties of their respective companies. 8 Costs Information

names and trademarks are the properties of their respective companies. 9 Acreage acquisitions in unconventional

names and trademarks are the properties of their respective companies. 10 YPF exploration High Impact plan

The development scenario for 2013-2017 YPF development plan Other operators
Conclusions

names and trademarks are the properties of their respective companies. 14 The development scenario for 2013-2017

names and trademarks are the properties of their respective companies. 17 YPF Development plan

names and trademarks are the properties of their respective companies. 21 Other Players

names and trademarks are the properties of their respective companies. 22 Other Players Americas Petrogas initial shale drilling activity 2011-2012

Looking forward the future of unconventional in Argentina Conclusions

names and trademarks are the properties of their respective companies. 26 Conclusions Advantages • Great geological and Hydrocarbon potential • Existing infrastructure for initial development • No major environmental issues • Technology and human resources available • Signs from federal and provincial government to encourage unconventionals • YPF great interest Challenges • Drilling and operation costs • Equipment and proppant supplies • Service company capacity • Rig Market • Gas and oil pricing and tax policies • Requires Massive capital investments in a complicated business and legal environment • Labor unions

Uruguay New frontiers and opportunities (Bonus Track)

names and trademarks are the properties of their respective companies. 28 Uruguay Round II Blocks •8 Blocks awarded •US$ 1.56 Billion commitments •1 exploratory well •33,240 sq km of 3D Seismic •13,080 sq km 3D electromagnetic data •30 year Contracts with 10 year extension option •Ancap oil buying option

Argentina Unconventionals Looking forward to the second stage (plus Bonus
Track) 24 October 2012 Thank You!!

Colombia Building on a decade of success Anne Leonard October
24, 2012

names and trademarks are the properties of their respective companies. 31 After a remarkable turnaround . . . Photo: Claudio Bartolini . . . where is Colombia headed next?

names and trademarks are the properties of their respective companies. 32 2003: A Nearly Perfect Storm  President Alvaro Uribe vows to make Colombia safe, saying, ‘without peace there is no investment.’  Rapidly declining oil production spurs Colombia to follow Brazilian model.  ANH created to regulate industry.  Association Contracts with mandatory Ecopetrol participation replaced by E&P Contracts.  Incentives implemented for licensing.  State oil company Ecopetrol becomes an E&P company, free to explore in Colombia and elsewhere.

names and trademarks are the properties of their respective companies. 33 The Good, the Bad, the Ugly  Peru: Initiates similar incentives  Brazil: Despite opening to IOCs in 1996, Petrobras continues to dominate exploration and licensing  Argentina: mandates commodity price controls in wake of 2001-2002 currency collapse  Venezuela: Under President Hugo Chavez, exploration nearly grinds to a halt. His dismantling of PDVSA leaves thousands of seasoned South American explorers looking for work  Ecuador and Bolivia: Chavez’s Bolivarian Revolution spreads

names and trademarks are the properties of their respective companies. 34 Location, Location, Location Least Attractive Investment Targets* 1. Bolivia 2. Venezuela 3. Iran 4. Russia – Eastern Siberia 5. Libya 6. Ecuador 7. Uzbekistan 8. Argentina – Santa Cruz 9. Iraq 10. Russia – Other *Frasier Institute Global Petroleum Survey 2012 Northern Andean Front: Pacific Rubiales

names and trademarks are the properties of their respective companies. 35 First Up: Security Uribe increases security, gains control of roads and towns  Attacks against rural towns drop 91%  Attacks on infrastructure drop 60%  Terrorist attacks drop 63%  Kidnappings drop 78%  Homicides drop 37% Source: U.S. State Department Getty Images

names and trademarks are the properties of their respective companies. 36 Second Up: Investment  The National Hydrocarbons Agency is created by Decree-law 1760 on June 16, 2003, as a special administrative unit within Colombia’s Mines and Energy Ministry.

names and trademarks are the properties of their respective companies. 37 Sanctity of Contracts ANH offers first-come, first-serve licenses and then in 2007 adds bid rounds or ‘rondas’  6-year exploration & production contracts  18-24-month technical evaluation agreements  Royalty rate reduced from fixed 20% to sliding scale of 5-25%  Government’s take on profits flexible and competitive  No signature or discovery bonuses  Depreciation period reduced from 10 to 5 years Colombia takes pride in its history of never breaking a contract

names and trademarks are the properties of their respective companies. 38 Number of New Contracts Soar As of July 9, 2012, 255 Active, 14 Suspended Contracts Source: 0 10 20 30 40 50 60 70 80 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TEA E&P AC

names and trademarks are the properties of their respective companies. 39 Exploration Takes Off Seismic: km of 2D equivalent Exploratory wells drilled Source:

names and trademarks are the properties of their respective companies. 40 And Production Ramps Up Oil Production thousand barrels per day Gas Production million cubic feet per day Source:: 0 100 200 300 400 500 600 700 800 900 1000 2005 2006 2007 2008 2009 2010 2011 0 200 400 600 800 1000 1200 2005 2006 2007 2008 2009 2010 2011

names and trademarks are the properties of their respective companies. 41 New Explorers Arrive  Connection  Often based in Calgary  Traded on the Toronto Stock Exchange  Some staffed by ex-PDVSA management The Canadian/Venezuelan Connection

names and trademarks are the properties of their respective companies. 42 Heavy Oil Expertise Reaps Benefits As Rubiales field becomes Colombia’s top producer, heavy oil drives the country’s production growth. Source: 0 100 200 300 400 500 600 700 800 900 1000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Other Heavy Oil

names and trademarks are the properties of their respective companies. 43 Pacific Rubiales Energy Probably Colombia’s top success story of the last decade Pacific Rubiales September 2012 Presentation

names and trademarks are the properties of their respective companies. 44 Rubiales and Quifa Fields Rubiales:  OOIP 4.6 billion barrels  160 development wells (65 in 2012)  Target 200,000 bo/d exit 2012 Quifa • Low risk exploration and development • OOIP 2.8 billion barrels • Target 65,000 bo/d exit-2012 Tecpetrol and Ecopetrol make discoveries on adjacent blocks Photo: Pacific Rubiales

names and trademarks are the properties of their respective companies. 45 More to Come Pacific Rubiales’s forward plans:  CPE-6: 2 wells drilled earlier in 2012, another six planned  CPO-12: 3 wells planned  CPO-17*: 4 wells planned  CPO-1: 1 well (Altillo Sur-1) planned * Holds through its acquisition of a 50% interest in Maurel & Prom Colombia BV.

names and trademarks are the properties of their respective companies. 46 Taking the Search to the Southwest . . . Pacific Rubiales acquires 40% stake in Portofino in two deals, US$ 27.23 million transaction. Partner: Canacol Energy. Estimates one prospect has 140 MMbo, another four leads 160 MMbo (P50 resource)

names and trademarks are the properties of their respective companies. 47 . . . into the Caguan-Putumayo Basin First Portofino strat well drilled. Achote-1 finds heavy oil shows in 18m of basal Mirador, porosities up to 25%. Rig moves to Canacol’s Cedrela Block. Achote-1 Heavy oil shows Guarango-1 Rig moving to location

names and trademarks are the properties of their respective companies. 48 Capella Oil field  OOIP: 1.8 billion barrels  29 wells drilled  900km of 2D seismic  2012-2017: Up to 300 wells  Capex: US$ 1.2 billion  Pipeline: Under review Canacol Energy earns a 10% interest in Sinochem’s Ombu Block by drilling the 2008 Capella heavy oil discovery. Source: Canacol Energy

names and trademarks are the properties of their respective companies. 49 Canacol: Another Success Story  Incorporated in 2008 to focus on Colombian exploration  4 oil producing blocks, 16.1 MMbo (2P)  17 exploration blocks  2010-2012: +149% increase in oil production  Nearly 12,000 bo/d, mostly from Rancho Hermoso light oil field in Llanos Basin  Third in contribution to Colombia’s increasing oil production (behind Pacific Rubiales and Ecopetrol)

names and trademarks are the properties of their respective companies. 50 Betting on Unconventional Shale Oil Canacol was an early entrant into a Middle Magdalena Basin shale oil play that has caught the attention of both ExxonMobil and Shell. Source: Canacol Energy

names and trademarks are the properties of their respective companies. 51 Next Year to See Plenty of Exploration VMM-2: Vetra Energy (60%) drilling Mono Arana-1 (Spider Monkey), Canacol (20%), Exxon (20%) Santa Isabel: Canacol, 100%, planning Oso Pardo-1 conventional well VMM-3: Shell, 100%, 3 wells planned 2013, Canacol 20% option. VMM-28: Shell, 100%, 2D acquired, drilling planned VMM-27: Shell (100%) awaiting environmental permit for unconventional well Carpintero-1.

names and trademarks are the properties of their respective companies. 52 What They’re Targeting: Cretaceous La Luna  Colombia’s analogue to the Eagle Ford Shale?  La Luna one of the world’s most prolific source rocks.  Rosablanca secondary target. Source: Canacol Energy

names and trademarks are the properties of their respective companies. 53 Why unconventionals in Colombia?  Colombia once again striving to be ahead of the curve  31 blocks in Ronda 2012 with potential for unconventionals  Offers special terms for unconventional exploration – a first outside the U.S.  40% discount on royalties  New windfall profits tax: US$ 81  Longer license terms  Other operators targeting unconventionals in other basins  Nexen in Eastern Cordillera, gas in the Cretaceous Chipaque, Une and Tibasosa/Fomeque shales  Azabache Energy, Lower Magdalena Basin, gas in Porquero and Cienaga de Oro  Pacific Rubiales successfully fractures two unconventional gas wells in the Lower Magdalena Basin

names and trademarks are the properties of their respective companies. 54 Colombia also sees a future offshore  12 offshore blocks offered in Ronda 2012 (2 in Tumaco Offshore Basin)  First offshore well spudded since 2008 Perla gas discovery Mapale-1

names and trademarks are the properties of their respective companies. 55 Equion Energy Targeting Gas at Mapale-1  Spudded August 3, 2012  Reached 3,689m TD in September  Reportedly found hydrocarbons  Targeting Pliocene gas similar to that found at Perla offshore Venezuela Guajira Tectonic Framework Source: Shell E&P Mapale-1 Perla-1

names and trademarks are the properties of their respective companies. 56 Venezuela/Colombian Gas Conundrum  Venezuela has 179 Tcf in proved reserves, 8th in the world*  Colombia has 4 Tcf in proved reserves, 47th in the world*  Colombia exports natural gas to Venezuela, recently renewing its contract until 2014  Colombia looking for additional export markets  Venezuela has been touting the building of an LNG plant at Mariscal Sucre for more than a decade  Pacific Rubiales building Colombia’s first LNG facility, to be sourced from its La Creciente field, with a 2014 start up *US Energy Information Administration Photos: Pacific Rubiales

names and trademarks are the properties of their respective companies. 57 Ronda 2012 Results  115 blocks offered  49 receive bids  37 companies make 105 bids  US$ 2.3 billion in minimum exploration commitments  Shell, Statoil, Repsol, Anadarko and ExxonMobil participate  Type 1 blocks: 72 bids for 32 blocks  Type 2 blocks: 18 bids for 14 blocks  Type 3 blocks: 15 bids for 8 blocks  6 offshore blocks receive bids  5 unconventional blocks receive bids  Highest bid: US$ 55.1 million  Highest % participation: 34%

names and trademarks are the properties of their respective companies. 58 Ronda 2012: North Colombia Compiled by Latin American Analyst Gemma Brobyn Legend Ronda 2012 Blocks Licences Offshore Ronda 2012 Blocks with bids GUA OFF-1 – 3 bids Shell, Statoil & Consorcio Repsol-Ecopetrol SK Energy – Canaguate-1, SSJN 5 Block Oct 2012 – Drilling GUA OFF-2 – 1 bid ONGC COL-2– 1 bid Anadarko COL-3– 4 bids Shell, Statoil & Consorcio Repsol-Ecopetrol & Anadarko COL-5 – 2 bids Repsol & Consorcio Anadarko-Ecopetrol URA-4 – 1 bid Consorcio Anadarko- Ecopetrol VIM-21 – 1 bid Geoproduction (Shona) Recent acquisition by Canacol VIM-19 – 4 bid Consorcio Andes-Integra, Parex, Clean Energy & OGX GUA 2 – 1 bid Hocol SN-3 – 1 bid Consorcio Gran Tierra-Perenco VIM-15 – 1 bid Hocol VIM-8 – 1 bid Lewis Unconventional Ronda 2012 Blocks with bids

names and trademarks are the properties of their respective companies. 59 Ronda 2012: Central Colombia Compiled by Latin American Analyst Gemma Brobyn VMM-39 – 3 bids Talisman, CleanEnergy & Consorcio Bloque VMM-39 VMM-7 – 3 bids Consorcio Andes – Integra, CleanEnergy & Consorcio Optima-Range VMM-8 – 1 bid Consorcio Andes - Integra CAT-3 – 1 bid Ecopetrol VMM-5 – 2 bids Ecopetrol & Harvest VMM-5 – 1 bid Ecopetrol VMM-29 – 1 bid Consorcio Bloque VMM-29 COR-62 – 1 bid Consorcio Bloque COR-62 COR-46 – 2 bids Shell & Union Temporal Bloque COR-46 Legend Ronda 2012 Blocks Licences Unconventional Ronda 2012 Blocks with bids Unconventional blocks Large number received no bids. To be reoffered in 2nd Bid round launched on 28 November 2012

names and trademarks are the properties of their respective companies. 60 Ronda 2012: Llanos Basin Compiled by Latin American Analyst Gemma Brobyn LLA-53 - 5 bids Consorcio Andes – Integra, CleanEnergy, Petroleos del Norte, Petrobell & Ecopetrol LLA-79 – 2 bids Gulf Sands & Consorcio Andes - Integra LLA-50 – 4 bids Winchester, Gulf Sands, Suelopetrol & Petroleos del Norte LLA-1 – 1 bid Petroleos del Norte LLA-83 – 3 bids C&C, Consorcio Andes – Integra & Vetra LLA-51 – 1 bid Consorcio Andes - Integra LLA-41 – 1 bid B.C. Exploracion & Producccion LLA-12 – 2 bids Consorcio Andes – Integra & Petroleos del Norte LLA-49 – 5 bids Winchester, Gulf Sands, Consorcio Andes – Integra, Petroleos del Norte & Heritage-Petroleum Equipment LLA-78 – 3 bids Consorcio Andes – Integra, Canacol & Vetra AMA-4 – 1 bid C&C, Consorcio Ecopetrol-Hocol LLA-65 - 4 bids Pacific Rubiales, Petroleos del Norte, Hocol & B.C. Exploracion & Produccion LLA-69 - 1 bid Mansarovar LLA-28– 2 bids Consorcio Andes – Integra & Heritage-Petroleum Equipment LLA-66 – 2 bids Consorcio Andes – Integra & B.C. Exploracion & Producccion LLA-64 – 6 bids Consorcio Andes – Integra, CleanEnergy, Petroleos del Norte, Vetra, Petrobell & Heritage-Petroleum Equipment LLA-70 - 4 bids C&C, Gulf Sands, Petroleos del Norte & Heritage-Petroleum Equipment LLA-33 - 4 bids Pacific Rubiales, B.C. Exploracion & Produccion, Petroleos Sud Americanos & Heritage-Petroleum Equipment LLA-28 – 1 bid Consorcio Andes – Integra Legend Ronda 2012 Blocks Licences

names and trademarks are the properties of their respective companies. 61 Ronda 2012: Caguan Putumayo Basin Compiled by Latin American Analyst Gemma Brobyn Legend Bid blocks Licences Applications/ Pre-awards Open blocks PUT-5 – 1 bid Consorcio Optima-Range PUT-25 – 1 bid Petroleos del Norte PUT-24 – 2 bids Petroleos Sud Americanos & Petroleos del Norte PUT-12 – 3 bids Gulf Sands, Consorcio Amerisur- Pluspetrol & Ecopetrol PUT-13 – 2 bids Ecopetrol & Gulf Sands PUT-14 – 1 bid Gulf Sands PUT-17 – 1 bid Ecopetrol Type 3 blocks Large number received no bids. To be reoffered in 2nd Bid round launched on 28 November 2012 Legend Ronda 2012 Blocks Licences

names and trademarks are the properties of their respective companies. 62 Addressing Ongoing Problems Problem  Slow environmental permitting process  Infrastructure bottlenecks  Resurgence of violence hampering production Proposed Solution(s)  Government working toward streamlining processes  1st phase of Bicentenario Pipeline to be completed in 1Q 2013  Added capacity to ODL pipeline  New export terminal on Caribbean Coast, Energen, Pacific Coast  Peace talks with FARC  5,000 new troops  Paving rural roads

names and trademarks are the properties of their respective companies. 63 An invitation to Cartagena in 2013 Photo: Claudio Bartolini Save the dates September 8-11, 2013 Cartagena, Colombia For information contact: [email protected] International Conference & Exhibition

Australia: The Golden Age of Gas Chester Chua 24 October
2012

names and trademarks are the properties of their respective companies. 65 Australia Natural Gas Resources Source: Australia Government and U.S. Geological Survey Bonaparte Basin Gippsland Basin Otway Basin 2.1 Tcf Bass Basin 0.8 Tcf Perth Basin 0.8 Tcf Amadeus Basin 0.6 Tcf Cooper/Eromanga Basin Surat/Bowen Basin 1.4 Tcf Maryborough Basin Potential natural gas resources Potential unconventional gas resources Potential CBM resources

names and trademarks are the properties of their respective companies. 66 Global LNG Demand

names and trademarks are the properties of their respective companies. 67 Asia Pacific Uncontracted LNG Demand

names and trademarks are the properties of their respective companies. 68 Australia Conventional Gas LNG Project Project Operator Size Production/Sales Status Clients Northwest Shelf LNG Woodside ~ 33 Tcfg 16.3 MTPA from 5 trains Producing Japan, South Korea & China Pluto LNG Woodside ~ 5 Tcfg 4.3 MPTA from 1 train (12 MTPA) Producing Japan & spot market Gordon LNG Chevron ~ 40 Tcfg 15 MTPA from 3 trains Developing (2014) China, India, Japan & South Korea Wheatstone LNG Chevron ~ 6+ Tcfg 8.9 MTPA from 2 trains (15 MTPA) Developing Japan & South Korea Ichthys LNG Inpex ~ 12.8 Tcfg 8.4 MTPA from 2 trains Developing (Q4 2016) Japan, Taiwan Prelude FLNG Shell ~ 3 Tcfg 3.6 MTPA Developing (2016) Browse LNG Woodside ~ 15.5 Tcfg 12 MTPA expandable to 25 MTPA Planning Sunrise LNG Woodside ~ 5.13 Tcfg 4 MTPA from FLNG Planning Scarborough / Thebe LNG ExxonMobil & BHP Billiton ~ 12 Tcfg Planning Bonaparte FLNG GDF Suez ~ 2 Tcfg 2MTPA from FLNG Planning

names and trademarks are the properties of their respective companies. 69 Australia Exploration Overview Coal Bed Methane Exploration Unconventional Oil & Gas Exploration Offshore Oil & Gas Exploration Onshore Oil & Gas Exploration

Australia Offshore Exploration

names and trademarks are the properties of their respective companies. 71 Offshore Australia Exploration 0 20 40 60 80 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Number of Wells Year Other Areas Northern Offshore 0 10 20 30 2007 2008 2009 2010 2011 2012 Number of Awards Year Offshore Exploration Contract Awards 2007 to 2012 Offshore Exploration Wells Drilled from 2003 to 2012 (September)

names and trademarks are the properties of their respective companies. 72 Offshore Australia Exploration – Award trend BP - Exploration in South West Margin Majors seeking new exploration areas outside of NWS New bid blocks reflect more exploration activities outside of NWS region in future Blocks awarded in last 3 years Current bid blocks

names and trademarks are the properties of their respective companies. 73 Offshore Australia Exploration – Asset Transactions SK Energy farm-in to ConocoPhillips Caldita & Barrosa gas discoveries Fund up to US$ 520 MM Eni farm-in to Santos’s Evans Shoal gas discoveries Payment of up to US$ 350 MM Mitsubishi & Mitsui acquired 14.7% stake in Browse LNG Project from Woodside Payment of US$ 2 billion Shell & Chevron in Wheatstone LNG Project & Browse LNG Project assets swap

names and trademarks are the properties of their respective companies. 74 Offshore Australia Exploration – Future LNG Supply ConocoPhillips - Caldita & Barrosa gas discoveries Eni - Heron & Evan Shoal gas discoveries ConocoPhillips - Poseidon gas discoveries area Hess - Gas discoveries in permit WA-390-P Apache Energy - Zola gas discovery (Greater Zola Structure exploration)

names and trademarks are the properties of their respective companies. 75 Offshore Australia Exploration - Remarks  Majors have been consolidating their assets in the last few years leading to lower exploration drilling activities.  Exploration activities offshore going forward to increase especially outside of the NWS region.  High level of M&A and asset transaction activities going forward especially with Asian NOCs securing energy supply.

Australia Unconventional Oil & Gas Exploration

names and trademarks are the properties of their respective companies. 77 Australia Unconventional Oil & Gas - Basins Tight Gas Basins in Australia Shale Oil & Gas Basins in Australia

names and trademarks are the properties of their respective companies. 78 Australia Unconventional Oil & Gas - Asset Transactions Mitsubishi farm-in to Buru Energy’s Canning Basin assets US$ 35 MM cash & fund up to US$ 152 MM ConocoPhillips farm-in to New Standard Energy’s Canning Basin assets To fund up to US$ 109.5 MM Hess’s acquisition of Kingsway Oil in Canning Basin Hess farm-in to Falcon’s Oil & Gas’s asset in the Georgina Basin US$20 MM + fund work programme of 5 wells & US$40 MM seismic programme Statoil farm-in to PetroFrontier’s Georgina Basin assets Fund up to US$ 210 MM BG farm-in to Drillsearch Energy’s Cooper Basin Shale gas assets Fund up to US$ 100 MM CNOOC farm-in to Exoma Energy’s Galilee Basin assets Fund up to AUD 73.4 MM

names and trademarks are the properties of their respective companies. 79 Australia Unconventional Oil & Gas – Exploration update  Eromanga/Cooper Basin – Santos, Beach Energy, Senex Energy  Most active basin with proven shale gas reserves – Santos confirmed the piping of the gas from the unconventional Moomba 191 vertical well into the gathering system (tested 2.6 mmcfg/d from the Roseneath, Epsilon & Murteree (REM) shale reservoirs)  Hydraulic fracture stimulations for more wells to commence in later part of the year  Horizontal unconventional wells drilling to start in later part of the year  Canning Basin – Buru & Mitsubishi, ConocoPhillips & New Standard Energy  Ungani oil discovery while targeting unconventional gas exploration (up to 1 MMbo)  Discovered a significant tight gas accumulation – Appraisal work ongoing with the Valhalla tight gas discovery  Commenced drilling first shale gas exploration well  Georgina Basin – Hess & Falcon Oil & Gas, PetroFroniter & Statoil  Hydraulic fracture stimulation of three horizontal wells taken place in shale gas reservoir  Awaiting testing results with log data and core samples confirming the existence of oil in the Lower Arthur Creek Shale and Thorntonia Carbonate Formations

names and trademarks are the properties of their respective companies. 80 Australia Unconventional Oil & Gas – Exploration Update  Perth Basin – AWE Ltd, Northwest Energy  Hydraulic fracture stimulation of three vertical wells taken place in both tight gas and shale gas reservoirs  Successful flow tested oil, gas & condensate with testing ongoing  Galilee Basin – Exoma Energy & CNOOC  Extensive drilling underway to gather information on the Toolebuc Shale for laboratory testing of oil and gas maturity and generation  Encouraging results so far with most wells encountering background oil and gas while drilling  McArthur Basin – Armour Energy  One horizontal well drilled to target shale reservoir which flowed gas to surface from the Barney Creek Shale and the Coxvo Dolomite Formations  No hydraulic fracture stimulation taken place

names and trademarks are the properties of their respective companies. 81 Australia Unconventional Oil & Gas – Opportunities Current bid blocks Farm-in opportunity assets

names and trademarks are the properties of their respective companies. 82 Australia Unconventional Oil & Gas - Remarks  Unconventional exploration is still in an infancy stage in Australia  Unconventional exploration activities is set to increase in the coming years  Most areas with unconventional exploration potential have been licensed but lots of opportunities for entry

names and trademarks are the properties of their respective companies. 83  High cost of equipment and labour  Lack of infrastructure like pipelines & roads  Strict environmental / HSE  Native Title Act can delay operations Australia Exploration Challenges  High cost of equipment and labour  Lack of infrastructure like pipelines & roads  Strict environmental / HSE  Native Title Act can delay operations Major Australia Oil & Gas pipeline Major Australia Oil & Gas pipeline

names and trademarks are the properties of their respective companies. 84  High cost of equipment and labour  Lack of infrastructure like pipelines & roads  Strict environmental / HSE  Native Title Act can delay operations Australia Exploration Challenges  High cost of equipment and labour  Lack of infrastructure like pipelines & roads  Strict environmental / HSE  Native Title Act can delay operations Thank you

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