HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2009

Oct 1, 2009

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Future Corporation Australia Limited A.C.N. 075 419 715 Registered Office Level 1, 2 Ross Place, South Melbourne VIC 3205

FUTURE CORPORATION TO ACQUIRE INTEREST IN ATOCHA PROJECT

Future Corporation Australia Ltd (ASX: FUT) is pleased to announce the acquisition of a 50% interest from well established US explorer Pryme Oil and Gas Limited (ASX: PYM) (Pryme) in their Atocha Project. The Atocha project covers an area of approximately 6,400 contiguous acres within the up-dip fairway of the Tuscaloosa Trend of East Baton Rouge and East Feliciana Parishes, Louisiana with a prospective field size of up to 1.2 Trillion Cubic Feet Equivalent (TCFE) recoverable gas equivalent.

HIGHLIGHTS

• FUT acquires a 50% interest in the Atocha Project.

• Up-dip to the Port Hudson field in the heart of the prolific Tuscaloosa Trend

• Project area which is close to existing oil and gas infrastructure (close to a gas pipeline and less than 5km from a Gas Fired Power Station).

• Project area is prospective for gas and oil with a target size of 1.2 TCFE of recoverable gas equivalent for the entire Atocha prospect acreage.

• First prospect test involves re-entry, to a depth of 17,700 feet, of existing well drilled by Shell

• First Prospect defined by a grid of reprocessed 2D seismic

• Work on the re-entry is expected to begin within 30 days

• First re-entry well prospective for gas and oil with a target size up to 28 Billion Cubic Feet Equivalent (BCFE) of recoverable gas equivalent

• Project area has potential for additional prospects

FUTURE CORPORATION - ENERGY STRATEGY

"Bottom of cycle, low cost entry, low cost development, close to infrastructure"

The strategy of FUT to seek and acquire low cost entry, low development cost assets in the "bottom of cycle" economic climate is at the forefront of both the European Gas acquisition and 50% interest in Pryme’s Atocha Project acquisition announced today.

The acquisition of the interest in Atocha sits in with FUT’s ongoing strategy of leveraging into gas assets that provide a low cost entry combined with low cycle cost economics and close infrastructure. The first well (the Brian re-entry well) sits close to a gas pipeline and less than five kilometres from a gas fired power station.

The Atocha project provides FUT with an additional project to add to its recently announced European Coal Seam Methane projects.

OVERVIEW OF PROJECT

The Atocha Project, located i n East Baton Rouge and East Feliciana parishes in L o uisiana, covers 6,400 contiguous acres within the u p -dip fairway of the Tuscaloosa Trend. FUT has pur c hased a 50% working interest in Atocha from Pryme. The project is prospective for gas with the potent i al for condensate and oil. A more detailed description of the Atocha Project is included further in this ann o uncement.

The first Atocha prospect well t o be tested will be a re-entry into an existing well b o re, the HM Brian No.1 which was originally drilled by S hell Oil in 1980, to test a bypassed 125 feet thick pa y zone.

On completion of the test of the first Atocha prospect, and subje c t to the outcomes, it is intended tha t FUT and Pryme Oil and Gas will develop additional prospects for e xploration within the highly prospecti v e Atocha project area.

Success in the Atocha Proje c t has the potential to create significant earnings for FUT and greatly increase t h e value of the company.

- Drilling of the re entry is proposed to begin before the end of October 2009.

DETAILS OF THE AGREEMENT

FUT will reimburse its propo r tionate share of expenses being approximately $US700,000 for a 50% interest in Pryme’s 100% own e d Atocha Prospect. To date Pryme has spent approximately $US1.4 million on building its land position, carrying out technical reviews and planning a program t o test the project.

FUT will carry Pryme for a 7.1 4 3% (1/8[th] (12.5%) proportionate) interest though to p roduction on the first prospect test - the re-entry of the HM Brian No.1 well. Any additional wells will be on a strict percentage ownership contribution basis a nd there will be no free carry (FUT funds 50% and P ryme funds 50% on a heads up basis).

ATOCHA PROJECT INFORMATION

The Tuscaloosa Trend was discovered in 1975 by Chevron. It has produced over 2.8 Trillion Cubic Feet (TCF) of natural gas and 120 m i llion barrels of condensate over the past 32 years.

Atocha is located five miles north of BP’s Port Hudson Field which is the best prod u cing field in the trend. Atocha contains the HM Brian No.1 well which was drilled by Shell Oil in 1980. Petrophysical analysis has concluded that this well cont a ins over 125 feet of bypassed Tuscaloosa pay san d . With the benefit of hindsight and some 30 year s of experience in the Tuscaloosa Trend, experts h ave indicated that a discovery of this calibre would typically be completed for production.

The Atocha project area exhib i ts multiple down-to-the-basin faults forming three- w ay closures. This trap style has led to prolific produ c tion in several adjacent fields including Morganza ( 510 Billion Cubic Feet Equivalent (BCFE)), Moore-Sa m s (270 BCFE), Comite (119 BCFE), and Moncrief ( 8 5 BCFE). In all fields across the trend, faults act as seals even when sand-on-sand contacts exist.

The Atocha structure has bee n defined by a grid of reprocessed 2D seismic which w as originally acquired in the late 1970’s and early 8 0’s. Most of the data is 12-24 fold and presents e xcellent results when reprocessed. The seismic dat a defined the top and bottom of the sand targets a n d delineated the fault traps. Faults are recogniz e d by strong displacements and terminations of seismic wavelets. Interpretation of the 2D seismic clearly defines the location and extent of faulting i n the section and along trend.

Geographic Stratigraphy

Two sand packages are targeted in the project area with each of the upper a n d lower sand targets averaging 250 feet gross thick n ess. Well log correlations indicate that the upper sa n d is faulted out in the HM Brian No.1 well which is supported by the seismic data. The HM Brian No.1 onl y penetrated the lower sand with net thickness of 1 2 5 feet and porosity averaging 13%. These reserv o ir attributes compare favourably with other produ c tive wells in Port Hudson Field. For example, t h e Amoco Ann-Fitz #1 produced over 60 Billion Cu b ic Feet (BCF) from coarse grained conglomerate s with lower average porosity.

Formation tests were conduc t ed at five depths in the HM Brian No.1 well (see table below). Results indicated a formation pressur e of 9,264 pounds per square inch (psi). The target sand was drilled with 12.2 pounds per gallon (ppg) drilling mud while the pressure equates to a 10. 5 - 10.7 ppg pressure environment. Technical evalu a tion has indicated that the formation was drilled 1 ,450 psi overbalanced which would have tended to f orce drilling fluids into porous and permeable inte r vals of the formation. Even in an overbalanced environment, the mudlog indicates a continuous gas show throughout most of the intersection. Near the bot t om of the sand, the gas show ends abruptly indicati n g a possible gas/water contact.

For m ation test results of the HM Brian et al No.1 well

Resource target estimate

The Atocha structure consists of six separate fault blocks defined by 2D seismic. The three most structurally high blocks were used to develop the resource target estimate; these cover a total 6,400 acres in prospective area.

For the purposes of target estimation a combined net sand thickness of 250 feet was used (125 feet each for upper/lower sands) and a 50% net-to-gross ratio was applied. The recovery factor of 750 Thousand Cubic Feet Equivalent (MCFE) per acre foot which was used is lower than the known recovery factor at Port Hudson, however, the formation tests and sidewall cores indicated lower permeabilities than at Port Hudson. Utilizing these parameters, a potential total of 1.2 TCFE of recoverable gas equivalent is estimated. The drive mechanism is most likely to be water as in the Port Hudson Field.

Although hydrocarbon charge is anticipated through most of the aggregate structure, the bulk of the reserves are likely to be concentrated in the up-dip portions of the individual fault blocks, along the trapping faults.

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Multi-well log analysis: Amoco Bickham Jr. analogue (left), HM Brian No.1 well to be re-entered (middle) and Amoco Ann-Fritz No.1 analogue (right)

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HM Brian No.1 re-entry well gamma ray log and mudlog gas show

Analogues to Atocha and the Prolific Tuscaloosa Trend

Atocha exists up-dip to 3.5 TC F E of natural gas produced to date in the deep Tusc a loosa Trend. A major depositional fairway creates t h e Atocha prospect in this target interval. This play r e sembles the deep gas basin in Canada where Elms w orth Field was discovered and 15 TCF was eventu a lly proven years after seventy-five well bores had p e netrated the section and the gas accumulation ha d not been recognized. The geologic model for Atocha is also similar to that of Double A Wells Field in Polk C ounty, Texas.

This field has produced over 5 5 0 BCF from a Woodbine (Tuscaloosa age) stratigra p hic trap across 15,000 acres.

Leasehold, Access and Infrastructure

The prospect is close to existing gas pipeline and oil tr a nsportation networks. Site conditions ar e ideal and access to the site is from a m ain road (see left well site and nearby g a s fired power on next page).

Gas fired power station that sits on same road less tha n 5km from the first proposed well, t h e Brian re-entry well.

The geological information in t his announcement has been reviewed by Stanley R. C lowers (a professional Petroleum Geologist residing i n the State of Texas in the United States of America) who has over 40 years domestic and international e x perience in petroleum geology, drilling, well completions and production operations. Mr. Clowers revie w ed this announcement and consents to the inclusio n of the geological and engineering descriptions and a n y estimated hydrocarbons in place or flow rates in t h e form and context in which they appear. Any reso u rce estimates contained in this report generally con f orm to the guidelines and definitions set out by the S ociety of Petroleum Engineers, further information o n which is available at www.spe.org .

For further information contact: Barnaby Egerton-Warburton Director Future Corporation Australia Limited Tel: 61 2 8003 3438 Website: www.futurecorp.com.au