FIN RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

31 July 2012

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Manager of Company Announcements ASX Limited Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000

By E‐Lodgement

BOARD & MANAGEMENT

Mr Greg Bandy EXECUTIVE DIRECTOR

Mr Jason Bontempo NON‐EXECUTIVE DIRECTOR

Mr Jeremy King NON‐EXECUTIVE DIRECTOR

Quarterly Report for the Period Ending 30 June 2012

The Board of Orca Energy Limited ( Orca or the Company ) is pleased to provide the following commentary for the period ending 30 June 2012, including subsequent events.

Highlights

• Weatherford Drill Rig 826 rig secured to drill Orca’s free carried well (Kingston Rule 1) in PEL 115

• Location of Kingston Rule 1 approved and scheduled for drilling in October 2012

• PEL 115 is adjacent to PEL 516 in which JV partner Senex Energy’s successful first unconventional well (Sasanof‐1) flowed gas to surface

• Gas condensate and fluorescence at Senex’s second unconventional well (Talaq‐1) in PEL 516 adjacent to PEL 115, with fraccing to follow

• 250km[2] 3D seismic program on PEL 110 to begin in Q3, 2012

• Orca remains well funded with circa $4m in cash after cornerstone placement to Senex Energy in January 2012 at 3.5c per share

Cooper Basin

Orca Energy has an interest in two quality licences in the onshore Cooper Basin, which is a prolific onshore producer of oil and gas with significant shale gas potential.

PEL 115 – OGY 20%

In January 2012, Orca Energy entered into an agreement to farm‐out 22% of its Cooper Basin block, PEL 115, to joint venture partner and operator, Senex Energy Limited (ASX: SXY) in return for a dedicated unconventional gas exploration well to be drilled this year.

Mr Denis Patten NON‐EXECUTIVE DIRECTOR

Mr Arthur Pitts ALTERNATE DIRECTOR

Ms Rebecca Sandford Ms Shannon Robinson JOINT COMPANY SECRETARY

REGISTERED OFFICE Ground Floor 1 Havelock Street West Perth WA 6005

POSTAL ADDRESS PO Box 1440 West Perth WA 6872

CONTACT DETAILS Tel: +61 8 9488 5220 Fax: +61 8 9324 2400

WEBSITE

www.orcaenergy.com.au

SHARE REGISTRY

Advanced Share Registry 150 Stirling Highway Nedlands WA 6009

ASX CODE OGY

Prior to the quarter, Senex began a three well unconventional gas program on their 100% owned block, PEL 516 where drilling during the quarter have so far delivered excellent preliminary results with many of the attributes typically associated with successful unconventional gas fields.

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Subsequent to the quarter end, Senex announced on 24[th] July 2012 that it has secured the Weatherford Rig 826 for a two well program to drill its third unconventional well on PEL 516 (Skipton‐1) and Orca’s free carried well on PEL 115 (to be named “Kingston Rule 1”). The location of Kingston Rule 1 has now been finalised and this landmark well is scheduled to spud in October this year.

The location of block PEL 115 is significantly strategic as it is completely surrounded by PEL 516, where Senex estimates over 100Tcf Gas‐in‐Place from shales and coals alone (refer to Figure 1.)

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Figure 1: Location of Kingston Rule‐1

Drilling of Senex’s first well, Sasanof‐1 concluded in April and commenced ‘flowback’ in May 2012 following the completion of an extensive hydraulic fracture stimulation program to test gas quality and deliverability. Preliminary results on both measures have been extremely positive with the well having flared at a peak gas flow rate of 178,000 cubic feet per day. It continues to produce fracture stimulation fluid and formation gas to surface with post‐stimulation clean‐up activities and production testing continuing.

The second well drilled in PEL 516, Talaq‐1, reached a total depth of 2,879 metres on 1 June 2012. A comprehensive coring program was undertaken during drilling where Senex collected more than 320 metres of core from the Roseneath and Murteree shales as well as the tight sands and coals of the Patchawarra Formation. High gas readings were observed throughout the Permian Section during drilling.

Ground Floor, 1 Havelock Street, West Perth WA 6005 | Tel: +61 8 9488 5220 | Fax: +61 8 9324 2400 | www.orcaenergy.com.au ABN 25 009 121 644

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Preliminary analysis of the mud logs has confirmed the presence of condensate and fluorescence in the Epsilon Formation, which suggests the presence of liquid hydrocarbons.

Kingston Rule‐1

The Kingston Rule‐1 location in PEL 115 has been selected to target the greatest net thickness of potential shale, siltstone and tight sandstone in the Roseneath‐Epsilon‐Murteree targets, as well as potential net pay in the Patchawarra tight sand intervals. Review of the Hornet‐1 offset well, located 2.5km due south from the Kingston Rule‐1 location, has identified net sand pay throughout the well‐developed Patchawarra channel sands. Coring intervals for Kingston Rule‐1 have been proposed through multiple Patchawarra sands to better understand the petrophysical nature of these tight sand reservoirs. The drilling of Kingston Rule‐1 will be followed by a fracture stimulation program to realize the production potential of the unconventional gas reservoirs encountered in this well.

PEL 110 – OGY 20%

During the quarter, operatorship of PEL 110 was transferred to JV partner and majority (60%) owner Victoria Oil Exploration (1997) Pty Ltd, a wholly‐owned subsidiary of Senex Energy, and the joint venture approved a 250km[2] seismic program for the year ending June 2013. This program is scheduled to commence in Q3, 2012 targeting conventional oil and gas along the western flank of the Cooper Basin. Completion of this 3D seismic survey will be a significant further step forward in the exploration of PEL 110.

Seabiscuit (Matagorda) Project ‐ Texas

Orca’s JV partner and operator, Dan A. Hughes Company continues to carry out necessary expenditures for road and site preparations, in anticipation of a spud date later this year. The Seabiscuit Project covers an area of approx. 1,750 acres and has the potential to contain up to 1Tcf of gas and 10MMbo. Orca will continue to provide updates as they become available.

For and on behalf of the Board

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Greg Bandy Executive Director

Ground Floor, 1 Havelock Street, West Perth WA 6005 | Tel: +61 8 9488 5220 | Fax: +61 8 9324 2400 | www.orcaenergy.com.au ABN 25 009 121 644

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

ORCA ENERGY LIMITED

ABN 25 009 121 644	Quarter ended (“current quarter”)
25 009 121 644	30 June 2012

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) administration (d) production 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date $A’000
	(34) (231) 38 -	(218) (828) 83 13
	(227)	(950)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) project acquisition (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	-	(1,219) 146
		(1,073)
	(227)	(2,023)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(227)	(2,023)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other Cost of Issue Net financing cash flows	- -	6,025 (418)
	-	5,607
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(227) 4,162	3,584 351
	3,935	3,935

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		96
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	Payments of Directors Fees and Remuneration 96 Payments to Director Related Companies Nil

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil

• See chapter 19 for defined terms.

Appendix 5B Page 2

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements

	Amount available		Amount used
	$A’000		$A’000
		Nil
		Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	100
	150
Total	250

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22)

	Current quarter		Previous quarter
	$A’000		$A’000
		3,935		4,162
		3,935		4,162

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

6.2	Interests in mining
	tenements acquired or
	increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	Nil
	Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	575,033,775	437,533,775
	-	-	-
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil
	Nil
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter	3,875,000 500,000		Exercise Price $0.26 $0.16	Expiry Date 31 Dec 12 3 Dec 14
	Nil	Nil		Nil
	Nil	Nil

• See chapter 19 for defined terms.

Appendix 5B Page 4

17/12/2010

Appendix 5B Mining exploration entity quarterly report

7.10 Expired during quarter	Nil	Nil
7.11 Debentures (totals only)	Nil	Nil
7.12 Unsecured notes(totals only)	Nil

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

31 July 2012 Sign here: ............................................................ Date: ............................ (Directo ~~r/Company secretary)~~ Greg Bandy Print name: .........................................................

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• == == == == ==

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5