FIN RESOURCES LIMITED — Interim / Quarterly Report 2013

Jan 16, 2014

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17 January 2014

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 Activities Report for the Period Ending 31 December 2013

The Board of Orca Energy Limited ( Orca or the Company ) is pleased to provide the following commentary for the period ending 31 December 2013.

Highlights

• Burruna-2 well completed for production

Ms Rebecca Sandford Ms Shannon Robinson JOINT COMPANY SECRETARY

REGISTERED OFFICE Ground Floor 1 Havelock Street West Perth WA 6005

• First revenue received from Burruna-2

• New discovery made at Burruna-3 appraisal well

• Sale of PEL 115 completed

POSTAL ADDRESS PO Box 1440 West Perth WA 6872

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

Cooper Basin – Fury Joint Venture/PEL 115

WEBSITE

During the quarter, Orca completed the sale of the Company’s participating interest in PEL 115 to Senex Energy. The sale was for a package of benefits worth approximately $7 million that included a free carry for oil exploration and development in the Cooper Basin.

Under the terms of the sale, Orca retained its 20% interest in two key assets within PEL 115, namely the Fury Joint Venture , where a significant discovery was made in Q3 2013 and substantial development was undertaken during Q4 with production and sales now being achieved.

www.orcaenergy.com.au

SHARE REGISTRY Advanced Share Registry 150 Stirling Highway Nedlands WA 6009

ASX CODE OGY

Burruna-2 (OGY 20%)

During the quarter the Burruna-2 oil well was completed for production and began producing at a constrained rate of approximately 1,000 bopd. Burruna-2 intersected 5.3 metres of net oil pay in the Namur Formation and free-flowed oil to surface at a rate of more than 3,600 bopd during testing.

In addition, Senex cut 18 metres of core through the Murta Formation, which was sent for analysis to aid in the design of production enhancement techniques. Free oil was observed within the recovered core and hydrocarbon fluorescence was noted over a gross interval of 14 metres, further confirming the potential of the regionally extensive Murta Formation to deliver incremental production within JV acreage.

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Burruna-3 (OGY 20%)

During the quarter the Burruna-3 oil well successfully appraised the Namur Formation intersected by the Burruna-2 discovery. Further, the well also encountered an additional oil accumulation in the previously untapped lower Birkhead Formation.

The well confirmed the structural mapping of the Burruna oil field and intersected the Namur Formation that delivered flow rates of up to 3,600 barrels of oil per day at the Burruna-2 well. In addition, the appraisal well encountered approximately 3 metres of interpreted net pay in the lower Birkhead Formation. Wireline logging confirmed this discovery with an initial production test planned for early in 2014.

The appraisal well also encountered good quality oil and gas shows in the Murta Formation, which is productive in the adjacent Fury and Mirage Fields.

Burruna-3 is located 560 metres southeast of the Burruna-2 oil discovery, as shown in Figure 1.

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Figure 1.

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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Cooper Basin – PEL 110

During the quarter data processing under the Dundinna 3D seismic program commenced. Processed data is expected to be available for review at the end of Q2 2014, to identify drillable prospects for possible drilling program towards the end of 2014.

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Figure 2.

Seabiscuit (Matagorda) Project, Texas (OGY 20%)

After considerable delay and postponement of the “Seabiscuit” project, JV partner and operator, Dan A. Hughes Company, has begun site works and construction operations and continues to advise that drilling is expected to commence in Q1 2014. The project covers an area of approx. 1,750 acres and has the potential to contain up to 1Tcf of gas and 10MMbo. Orca looks forward to providing further updates over the coming weeks.

Corporate

Following the sale completion of PEL 115, and in accordance with the transaction, Orca bought back and cancelled Senex’s shares in the company, being 115,000,000. Orca’s issued capital is now 460,033,775 shares with the company’s cash balance in excess of $3m.

Mr Denis Patten resigned as a Director together with his alternate, Mr Arthur Pitts, as per the Sales Agreement.

The Company also issued 28,000,000 unlisted options ($0.03; 31 December 2015) during the quarter to Directors and Corporate Advisors following shareholder approval at the Annual General Meeting held in November 2013.

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”) 31 December 2013

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
	331 (21) ‐ (439) ‐ ‐ 18 ‐ ‐	338 (23) ‐ (583) ‐ ‐ 30 ‐ 4
	(111)	(234)
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) Sale of 20% PEL115 (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)	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐	‐ ‐ ‐ 1,655 ‐ ‐ ‐ ‐ ‐
	‐	1,655
	(111)	1,421

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

Appendix 5B Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward)	(111)	1,421
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	‐ ‐ ‐ ‐ ‐ ‐	‐ ‐ ‐ ‐ ‐ ‐
	‐	‐
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	(111) 3,133 ‐	1,421 1,601 ‐
	3,022	3,022

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
		65
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	Payments of Directors Fees and Remuneration 65 Payments to Director Related Companies ‐

Non‐cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas 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.

Financing facilities available Add notes as necessary for an understanding of the position.
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $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
	400
	‐
	‐
	150
Total	550

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter		Previous quarter
shown in the consolidated statement of cash flows) to	$A’000		$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank		3,022		3,133
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter(item 1.22)		3,022		3,133

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	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

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 note 3) (cents)	Amount paid up per security (see note 3) (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	460,033,775	460,033,775
	‐ (115,000,000)	‐ (115,000,000)	‐ ‐	‐ Share buy‐back
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 7.10 Expired during quarter	500,000 28,000,000		Exercise Price $0.16 $0.03	Expiry Date 3 Dec 14 31 Dec 15
	28,000,000	Nil	Exercise Price $0.03	Expiry Date 31 Dec 15
	Nil	Nil
	Nil	Nil
7.11 Debentures (totals only)	Nil	Nil
7.12 Unsecured notes(totals only)	Nil

• See chapter 19 for defined terms.

Appendix 5B Page 4

17/12/2010

Appendix 5B Mining exploration entity quarterly report

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.

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GREG BANDY Executive Director

17 January 2014

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