HYTERRA LTD — Interim / Quarterly Report 2011

Jan 22, 2012

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23 January 2012

The Manager Company Announcements Office Australian Securities Exchange Ltd 4th Floor, 20 Bridge Street SYDNEY NSW 2000

DECEMBER QUARTER ACTIVITIES REPORT

The Directors of Tango Petroleum Limited (“Tango” or the “Company”) would like to report the following activities:

LYONS POINT PROSPECT

The Pruitt et al #1, the initial test well for the Lyons Point Prospect was spudded on 13 September 2011 and reached TD of 16,500ft on 21 November 2011.

The well was drilled through what was expected to be the Marg Tex 3 Sands at 16,300ft and accordingly the project partners agreed to extend the well a further 200ft. The Marg Tex 3 is highly productive in analogue fields immediately to the south of the Lyons Prospect. Procession Drilling agreed to complete the extra 200ft under an extension of the drilling Turnkey contract.

The well was operated by Clayton Williams Energy Inc. under a turnkey fixed cost drilling contract with Precision Drilling. The prospect had a closure of circa 400 acres with a most likely resource potential of 3 MMBC (Million Barrels Condensate) and 60 BCFG (Billion Cubic Feet Gas) with upside potential of 4 MMBC and 80 BCFG.

The Lyons Point Prospect was a seismically defined, upthrown fault bounded structural closure. The objective section was provided by the prolific Oligocene Marginulina Texana (MT) 1, 2, and 3 Sands. The MT sands are productive in several fields in the immediate surrounding area and include the nearby Leleux Field, which has cumulative production of 5 MMBC and 300 BCFG from the MT interval.

Electric Logging of the Pruitt et al #1 was completed with log results indicating the prospect was not commercial and on 24 November 2011the partners announced they had decided to plug and abandon the well.

Office - Suite 9, 1200 Hay Street, West Perth WA 6005 Postal - PO Box 281, West Perth WA 6872 Ph: 08 6460 4960 Fax: 08 9324 3045 Web: www.tangopetroleum.com.au ACN - 116 829 675

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PROJECT EVALUATION

The Company is currently reviewing a number of potential opportunities within the oil and gas sector with a view to identifying an appropriate project in which to participate in the near future. The market will be updated with any developments in this regard if and when they occur.

CORPORATE

During the quarter, the Company announced a non-renounceable entitlement issue of 1 fully paid ordinary share in the capital of the Company for every 1 Share held by shareholders of the Company as at the Record Date at an issue price of 1 cent per Share to raise up to $1,200,000 before costs of the Offer.

Following the end of the quarter the Company announced that approximately $585,000 had been raised under the Offer (before costs).

Yours faithfully,

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Mathew Walker

Executive Chairman

For further information please contact:

James Robinson, Company Secretary, Tango Petroleum Limited, Tel: + 61 (8) 6460 4960

Office - Suite 9, 1200 Hay Street, West Perth WA 6005 Postal - PO Box 281, West Perth WA 6872 Ph: 08 6460 4960 Fax: 08 9324 3045 Web: www.tangopetroleum.com.au ACN - 116 829 675

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

	Name of entity	Name of entity
	Tango Petroleum Limited
	ABN 68 116 829 675 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) production (d) administration 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 (GST Refund) Net OperatingCash Flows			Current quarter $A’000		Year to date (9 months) $A’000
			(28) (78) 20		(1,377) (411) 3 47
			(85)		(1,739)
1.8 1.9 1.10 1.11 1.12 1.13		Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows Total operating and investing cash flows (carried forward)			(120)
					(120)
			(85)		(1,860)

• 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)	(85)	(1,860)
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 (capital raising costs) Net financingcash flows	90 (12)	1,515 90 (95)
	78	1,510
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 *	(7) (1)	(349) 341
	(8)	(8)

• Subsequent to the end of the period the Company raised $585,000 through an Entitlement Issue announced to the ASX on 8 December 2011.

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

entities
1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	55
	-

• 1.25 Explanation necessary for an understanding of the transactions Director’s fees, rent, administration services and reimbursements.

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

• 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

• See chapter 19 for defined terms.

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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 $A’000	Amount used $A’000
	100	90
	-	-

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	50
	-
	-
	50
Total	100

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)	$A’000	$A’000
to the related items in the accounts is as follows.
5.1 Cash on hand and at bank	(8)	(1)
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22) *	(8)	(1)

• Subsequent to the end of the period the Company raised $585,000 through an Entitlement Issue announced to the ASX on 8 December 2011.

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.

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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.

7.1 Preference +securities (description)	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities	120,000,000	120,000,000
7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs
7.5 +Convertible debt securities (description)
7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor)			Exercise price	Expiry date
7.8 Issued during quarter	99,000,000	99,000,000	$0.06	30/06/2012
7.9 Exercised during quarter
7.10 Expired during quarter
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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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.

Sign here:

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Date: 23 January 2012
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Company secretary

Print name: James Robinson

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.

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• See chapter 19 for defined terms.

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