BPH ENERGY LTD — Capital/Financing Update 2011

Sep 8, 2011

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9 September 2011

Companies Announcement Office Australian Securities Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000

Gas Production Testing to commence at Advent’s EP386 Project

MEC Resources (ASX:MMR) is pleased to provide the following advice from its investee company Advent Energy Ltd ( Advent ) regarding its EP386 permit in the onshore Bonaparte Basin, WA. Advent’s major shareholders include MEC Resources, BPH Energy (ASX: BPH), Talbot Group Investments and Grandbridge (ASX: GBA).

Advent is currently preparing to re-enter and perform production testing on Waggon Creek-1 and Vienta-1, in close proximity to the Ord Irrigation Expansion area.

Advent is optimistic that these existing gas discoveries could produce significant quantities of gas and thereby allow Advent to consider commercial development of these resources.

The prospectivity of the Bonaparte Basin is evident from the known oil and gas fields in both the offshore and onshore portions of the basin.

There have been five gas discovery wells drilled in Advent’s 100% owned and operated Bonaparte Basin permits of EP386 and RL1. In EP386 the three main discoveries made so far are Vienta, Waggon Creek and Bonaparte. In RL1 in the Northern Territory, Advent has recently announced a mean[1] independently assessed Contingent Resource* for the Weaber Gas Field of 18.4 billion cubic feet (Bcf).

Advent is now mobilising equipment for operations within EP386, and can confirm necessary approvals have been received from the Western Australian Department of Mines and Petroleum.

Gas Discovery Wells Waggon Creek-1 and Vienta-1

Waggon Creek-1 was drilled in 1995 and flowed 1.34 million cubic feet of gas per day (MMcfgd) from upper sands within the Milligans Formation on an openhole Drill Stem Test (DST). Additional openhole DST of a deeper zone flowed a further 1.0 MMcfgd and oil was recovered to surface.

Testing was curtailed at the time due to the onset of the wet season, and the well was cased and suspended.

Vienta-1, drilled in 1998, is a faulted structure in the southern part of EP386 only 10 km from Waggon Creek-1. A number of DSTs over various intervals demonstrated gas flows to surface from sand bodies within the shale formations and no pressure depletion.

Furthermore significant gas kicks were observed at depth while drilling. However due to the onset of the wet season, the well was suspended without testing this zone.

1 The mean is the average of the probabilistic resource distribution

• As defined under the Society of Petroleum Engineers Petroleum Resource Management System (SPE PRMS) guidelines

Ord Irrigation Expansion Project

The Ord Irrigation Expansion project is designed to deliver 8,000 hectares of agricultural land and supporting infrastructure, including off-farm water supply, drainage and roads. The project infrastructure delivery is taking place in two phases over three years, with final completion expected at the end of 2012 (Reference: WA Dept of Regional Development and Lands).

As demonstrated by the map below, the Ord Irrigation Expansion area will come within fifteen kilometres of Advent’s Vienta-1 gas discovery. The construction of all-weather sealed roads within the Ord phase two project provides for suitable infrastructure developments to support a commercial development of the field.

Advent is in an exceptional position where it remains the operator and 100% owner of the only petroleum permits in the vicinity of the rapidly growing region of Kununurra.

Yours sincerely,

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David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: +61 8 9328 8477

About MEC Resources

ASX listed MEC Resources (ASX: MMR) invests into exploration companies targeting potentially large energy and mineral resources. The Company has been registered by the Australian Federal Government as a Pooled Development Fund enabling most MEC shareholders to receive tax free capital gains on their shares and tax free dividends.

About Advent Energy

Advent Energy Ltd is an unlisted oil and gas exploration company, held by major shareholders MEC Resources (ASX: MMR), BPH Energy (ASX: BPH), Grandbridge Limited (ASX: GBA) and Talbot Group Investments. Advent holds a strong portfolio of exploration and near-term production assets throughout Australia. Advent’s cornerstone project lies off the coast of NSW in Petroleum Exploration Permit 11 (PEP11), and comprises gas prospects of multi-Tcf capacity where Advent holds 85% of PEP11 with Joint Venture partner Bounty Oil and Gas (ASX:BUY) holding 15%.

Notes: In accordance with ASX listing requirements, the geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity.

MEC is an exploration investment company and relies on the resource and ore reserve statements compiled by the companies in which it invests. All Mineral Resource and Reserve Statements have been previously published by the companies concerned. Summary data has been used. Unless otherwise stated all resource and reserve reporting complies with the relevant standards. Unless specified, resources quoted in this report equal 100% of the resource and may not represent MEC’s investees’ equity share.

MEC Resources Ltd

ACN 113 900 020 PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au

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Map showing proximity of the Ord development to Advent’s 100% owned Vienta and Waggon Creek discoveries and Weaber Gas Field.

MEC Resources Ltd

ACN 113 900 020 PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au

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Advent’s 100% owned Bonaparte Basin assets EP386 and RL1

MEC Resources Ltd

ACN 113 900 020 PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au