MEC RESOURCES LIMITED - Investor Presentation 2009

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7 April 2009

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

Dear Sir/Madam

Advent Energy Presentation

Excellence in Oil and Gas Conference, 6 & 7 April 2009, Sydney.

MEC Resources Ltd (ASX:MMR) advises that its investee entity Advent Energy Ltd (Advent) is presenting today at the Excellence in Oil and Gas Conference, Sydney.

A copy of the presentation is attached.

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

Media Enquiries: Bill Kemmery Fortbridge Consulting Tel: +61 2 9331 0655 Mobile: +61 400 122 449

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. Please refer to relevant ASX releases for details and attribution. Unless otherwise stated all resource and reserve reporting complies with the relevant standards.

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

[email protected] www.mecresources.com.au

Offshore Sydney Basin – Significant Gas Features (ASX: MMR 23 March 2009)

Investee entity Advent Energy Ltd has interpreted significant gas features in its exploration data for the PEP11 offshore S dne Basin ro ect y y p j
Advent has previously reported the prospective P10 unrisked gas resource estimate of 16.3 trillion cubic feet for the permit
Key indicators of hydrocarbon accumulation features were n erpre e i t t d f rom th e ongo ng rev ew o i i f 2004 seismic data
If con fi rme d b y r d illi ng, th ese se sm c ea ures are o i i f t f immense significance to any commercial development of the project.

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Offshore Sydney Basin – Significant Gas Features

(ASX: MMR 23 March 2009)

The seismic evidence of extensive gas generation and migration is continuing to be examined by Advent and independent geologists and geophysicists
In a further step towards commercial development of the project, Advent has appointed lead consultants RPS Group for the environmental planning and approvals process
DU-EL Drilling Services has been appointed for well construction and project management to assist with the next stage of the project’s development
Advent is continuing to pursue joint venture discussions and is looking to secure an appropriate drilling rig to test PEP11

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Offshore Sydney Basin：PEP 11 Summary

NSW/PEP 11 covers 8100 sq km; Advent – 85%
Permit Prospective Recoverable Resources estimated at to 16 . 3 Tcf up
20 km from Australia’s largest energy market, world class infrastructure
Gas flow and gas/oil shows in Sydney Basin Onshore wells / flows in excess of 1 million cubic feet of as er da g p y
Active thermogenic hydrocarbon system demonstrated offshore
Possible gas/condensate-charged Permian and Triassic reservoirs / Excellent potential for discovery of gas and oil
Robust Economics: NPV10 > A$12 billion potential

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Nearly all the important oil producing regions of the world were first
discovered by surface oil and gas seeps (Hunt, 1981)
Worldwide Oil & Gas Fields (source: Total – www.planete-energies.com, and Link, W.K., 1952, Significance of Oil and Gas Seeps in World
Oil Exploration, Bulletin of the AAPG, Vol. 36, No. 8 ), and Indicative satellite coverage of NPA Group, acknowledgement to Alan Williams
Mike Rego, Aminex
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Slope failure, Gas seepage. Major HC Provinces

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14 Tcf
Source: European Commission
Slumps: over 28 cu. km
Source: Whelan, Marine & Petr Geol 2005
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Swath Survey 2006

D. Schumacher: “Hydrocarbons seep in large concentrations in basins activel eneratin h drocarbons or that contain excellent mi ration y g g y g pathways”

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Pockmark over 282,000m[3] Image courtesy Ron Boyd, University of Newcastle

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A Proven Petroleum Basin With Offshore Sydney Basin-Potential Huge Gas Reserve –

Prospective Recoverable Resources of 16.3 Tcf estimated for the Permit.

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[Fred Kroh, Geoscience Australia]

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…this is not surprising as these basins were located close to each other in the Cretaceous and had a similar evolutionary history
Schematic Upper Cretaceous Paleogeography
Sydney Basin Lord Howe Rise:
• 4.5 billion boe
• 98 5% methane.
Taranaki Basin
0.5 Billion BBL Oil
7 TCF Gas
Gippsland Basin
4 Billion BBL Oil
11 TCF Gas
Canterbury
Basin
Bight Basin
Great South
Basin
Otway – Sorrel
Basin
3 TCF Gas
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“…sea floor spreading commenced at 65-70 million years before present resulting in the separation of the Lord Howe Rise from the east coast of New South Wales (NSW Bureau of Mineral Resources)”

“a speculative estimate of petroleum resources within Australian jurisdiction on the Lord Howe Rise is about 4.5 billion barrels of oil equivalent (Willcox & Symonds, 1997)”.

“Ocean Drilling Program (ODP) Leg 164 recently drilled three locations on the crest of the Blake Ridge to assess the composition and amount of gas in its gas hydrate deposit (Paull et al, 1996). All gas recovered exceeded 98.5% methane.”

Gippsland Basin Model i Shelf Modelelf Modellf Modelodeldelell Courtesy O’Brien, Geoscience Australia; based on Yampi Shelf, Browse Basin

Y i Shelf Modelelf Modellf Modelodeldelell amp

Chimneys and pock marks indicating focus areas of fluid flow above the top reservoir

“From the many studies performed in hydrocarbon basins from all over the world we have learned that seismic chimneys are visible in 90% of all Mesozoic and Tertiary basins.”

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Apparent gas reservoired at intermediate (1.0 – 2.2 sec twt) depths
Trap charge migration is not imaged
E v id ence o more ac f ti ve seepage at both flanks

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Source: Sayers et al, Geoscience Australia
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Bathymetry data courtesy Kriton Glenn-Geoscience Australia, onshore well data courtesy NSW DPI

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Offshore Sydney Basin:
Horizon E Structure Frame Indicating Huge Offshore Anticline
Baleen Prospect: Blue Lead:
Prospective rec. res:
Prospective rec. res:
P10: 5.78 TCF
P10: 253 BCF
P50: 1.79 TCF
P50: 170 BCF
P90: 0.22 TCF
P90: 102 BCF
Fish Prospect:
Prospective rec res:
P10: 9.18 TCF
P50: 2.37 TCF
P90: 0.49 TCF
Sei Lead:
Prospective rec. res:
P10: 281 BCF
P50: 194 BCF
P90: 110 BCF
Possible Stratigraphic
trap identified by AVO
1981 2D
Humpback Lead: Seismic
Prospective rec. res: Lines 1742
P10: 351 BCF km
P50: 241 BCF! 3805 km 2D seismic including Offshore Uplift Newcastle New England
P90 : 142 1460 km of new lines acquired in BCF Syncline Fold Belt 1991 2D Seismic
2005; Lines 603 km
! integrated for first time with 2004
2DSeismic
Lines 1460
1991, 1981 seismic interpretation
km
con f irms Baleen structure and Orca Lead:
Prospective rec.
identifies new Fish prospect.resources:
P10: 450 BCF
P50: 313 BCF
P90: 169 BCF
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[seismic line B4-19] Channel 280 Profile of proposed well Baleen # 1

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50m
1615m
2440m
3760m
TD: 4400m
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“It is generally assumed that maturation and migration began relatively early and hence early structures are favoured as Base Cainozoic Base Triassic hydrocarbon traps” (Stewart and Alder, 1995) Base pper erm anU P i Base Permian

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•
No well control
•
Revised velocity model for seismic
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[seismic line B4-28] Channel 280 Profile of proposed well Fish # 1

10m

916m

1913m

4030m:

TD: 4400m

Base Cainozoic Base Triassic Base Upper Permian Base Permian

“Structural traps are believed to be widespread with Late Permian and Late Triassic anticlines and fault traps combined with Tertiary rejuvenation of older structures thought to be the major plays.” (Stewart and Alder, 1995)

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No well control
Revised velocity model for seismic

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Possible AVO
HRDZ
B4-06
B4-15
Intercept vs Gradient -Xplot Colour Scheme - CDP 2200-2800
on stack
“Seal potential is one of the least critical factors
to defining prospectivity in the Sydney Basin as
thick shaly units with the potential to act as
seals occur throughout the Sydney Basin”
(Santos, 1987; Stewart and Alder, 1995)
B4-15
B4-07
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Distribution of Gas Chimney
J. Whelan: “seismic signals are smeared to considerable depth as a result of vigorous gas seepage”
B4-15
B4-16
B4-17
B4-18
B4-19
B4-20
B4-15 B4-16
B4-17 B4-18
B4-19 B4-20
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HRDZ comparison between Line B4-05 and Bonaparte Basin

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“Soft”High Amplitude Anomaly
HRDZ
HRDZs over the Skua and Swift fields, Bonaparte Basin HRDZs on PEP11 seismic line B4‐05
[Source O’Brien, Geoscience Australia]
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HRDZ comparison between Line B4-06 and Browse Basin

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HRDZ
HRDZ in the Browse Basin [Source O’Brien, Geoscience Australia] HRDZs on PEP11 seismic line B4‐06
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HRDZ comparison between Line B4-11 and Vulcan Sub-basin

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“Soft”High Amplitude Anomaly
HRDZ
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HRDZ
High intensity, large and linear HRDZs are present near the
HRDZs on PEP11 seismic line B4‐11 ‐
Tahbilk gas accumulation, located in the southern Vulcan Sub
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High intensity, large and linear HRDZs are present near the ‐ Tahbilk gas accumulation, located in the southern Vulcan Sub basin [Source O’Brien, Geoscience Australia]

“A recent review of more than 850 wildcat wells – all drilled after geochemical surveys finds that 79% of wells drilled in positive anomalies resulted in commercial oil and gas discoveries” D. Schumacher

Noise train in the water column

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Cornea seep, over Cornea o il/ gas e fi ld , Ti mor ea S

Reverse polarity event

Weaker reflection

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Gas in water column and shallow sediments identified in Sub-Bottom Profiles by Fred Kroh from SS10/2006 survey

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“Arditto (2003) argues that the central offshore region of Sydney Basin (southern part of PEP11) is well positioned to contain clean, quartzrich, fluvial to nearshore marine reservoir facies within the Late Permian Coal Measures. If adequate reservoirs exist, these facies are also well positioned to receive hydrocarbons from the adjacent coal and carbonaceous mudstone source rocks (Arditto, 2003)”

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Analysis of Gas from Offshore Sydney Basin

show a source Repeated Hydrocarbon seep samples thermogenic - Liquids component indicated -

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H drocarbon See y p Gas Analysis:

Methane 90.69%
• Ox yg en 1.58%
Carbon Dioxide 4.12%
• Nitrogen 3.7%

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“The main source kitchen areas are in the deeper parts of the Lake Macquarie Trough, Macdonald Trough, Offshore Syncline, and Newcastle Syncline” (Santos, 1987; Alder et al., 1998)

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Source Rocks ： Late Permian Coal Measures, mainly Greta and Tomago groups ；

Reservoir Rocks ： Fluvial Sandstone in Permian and Triassic
Seals ： Siltstone in Wandrawandian and Branxton group
Onshore: 8 wells - oil shows & 16 – oil + gas shows