MEC RESOURCES LIMITED — Investor Presentation 2011

Nov 6, 2011

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7 November 2011

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

Dear Sir/Madam

Company Presentation

20:20 Investor Series Conference – Innovation in Exploration, Sydney, 7[th] November 2011

MEC Resources Ltd (ASX: MMR) is presenting today at the 20:20 Investor Series Conference in Sydney.

A copy of the presentation is attached.

Yours faithfully,

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David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: +61 8 9328 8477

About MEC Resources

ASX listed MEC Resources (ASX: MMR) invests into exploration companies targeting potentially large energy and mineral resources. The Company has been registered by the Australian Federal Government as a Pooled Development Fund enabling most MEC shareholders to receive tax free capital gains on their shares and tax free dividends.

About Advent Energy

Advent Energy Ltd is an unlisted oil and gas exploration company, held by major shareholders MEC Resources (ASX: MMR), BPH Energy (ASX: BPH), Grandbridge Limited (ASX: GBA) and Talbot Group Investments. Advent holds a strong portfolio of exploration and near-term production assets throughout Australia. Advent’s cornerstone project lies off the coast of NSW in Petroleum Exploration Permit 11 (PEP11), and comprises gas prospects of multi-Tcf capacity where Advent holds 85% of PEP11 with Joint Venture partner Bounty Oil and Gas (ASX:BUY) holding 15%.

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. Unless otherwise stated all resource and reserve reporting complies with the relevant standards. Unless specified, resources quoted in this report equal 100% of the resource and may not represent MEC’s investees’ equity share.

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

info@mecresources.com.au www.mecresources.com.au

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20:20 Investor Series Presentation – Innovation in Exploration

7 November 2011 David Breeze– Executive Director

MEC Resources is listed on the Australian Securities Exchange with stock code MMR

MEC Resources Limited

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MEC Resources offers investment into exploration companies seeking large energy & mineral discoveries

The Company is registered as a Pooled Development Fund enabling most MEC shareholders to receive tax free capital gains on their shares & tax free dividends

MEC targets new & emerging companies in which investments have potentially significant returns

MEC Resources currently has a major investment in unlisted oil and gas exploration company Advent Energy Limited

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Advent Energy Shareholding and Assets Structure
Other shareholders including
MEC Resources Ltd BPH Energy Ltd
Grandbridge Ltd (ASX: GBA), &
ASX: MMR ASX: BPH Talbot Group Investments
27.4%
44.9% 27.7%
Advent Energy Ltd
unlisted
Top 20
100% 100%
Shareholder
Asset Onshore Central
Energy Energy Pty Petroleum Ltd
Pty Ltd Ltd ASX: CTP
85% 8.3% 100%
•
Permits covering 270,000
km [2] across central
PEP11 EP325 EP386 & RL1
Australia
offshore Sydney Carnarvon Onshore Bonaparte • 10 billion bbl UOIIP and
Basin Project Basin Project Basin Project 100Tcf UGIIP in
conventional and
unconventional plays
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Offshore Sydney Basin – Proven Petroleum Basin with Potential Huge Gas Reserve

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EP386 & RL1
Onshore Bonaparte
Basin Lord Howe Rise: Lord Howe Rise:
•• 4.5 billion boe4.5 billion boe
EP325 •• 98.5% methane98.5% methane
PEP11
Offshore Sydney Basin
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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)”.

[Fred Kroh, Geoscience Australia]

“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.”

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HESS: $65 M Shale
Gas
ConocoPhillips: $109M EP386 & RL/1 JV with Falcon
Shale Gas JV with Australia
New Standard Energy
Australia
Beetaloo
Canning Basin
Basin
EP325
Shale depth:
1500-3000m
Sydney
BG: $130M Shale
Gas
JV with QGC
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Advent Energy EP 386: 634,567 Acres = 2568 sq km RL 1: 41,019 Acres = 166 sq km Thermally Mature, Thick Source Rock (>500m) Large Unconventional Resources Complex (Oil & Gas) Many Large Structures With Conventional Gas Discovery

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EP 386 Shale Gas Unrisked Gas In Place Estimates

Lower Milligans Fm EP 386 & RL 1

Parameters	Unit	Low	Best	High
Area ‐ A	Acres	197,683	296,525	345,946
Pay Thickness ‐h	Ft	1310	1640	1968
Net to Gross Ratio ‐ r	Dec. fraction	0.6	0.6	0.6
Effective Matrix Porosity ‐Φm	Dec. fraction	0.02	0.03	0.04
Fracture porosity ‐ Φf	Dec. fraction	0.04	0.05	0.06
Formation Volume Factor ‐ FVF		70	75	75
Matrix Water Saturation ‐ Swm	Dec. fraction	0.6	0.58	0.55
Water saturation of the fracture porosity ‐ Swf	Dec. fraction	0.5	0.4	0.3
Adsorbed Gas Storage Capacity ‐ Gs	Scf/Ton	15	30	50
Shale Density ‐ρ	G/cm3	1.9	2.1	2.2
Original Gas In Place ‐ OGIP	TCF	19.29	65.60	141.17

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Prospects in Advent Portfolio

Block Asset Advent interest	Gross Prospective Recoverable Gas Resources Bcfg	Gross Prospective Recoverable Condensate Resources MMbo Probablility of Success
	P90 P50 P10 Swansons Mean	P90 P50 P10 Swansons Mean %
PEP 11 Fish 85%	28.6 2,131.2 35,491.8 11,508.6	0.0 0.1 1.8 0.6 21.0%
Permian / Baleen 85%	17.2 472.2 4,193.3 1,452.0	0.0 0.0 0.2 0.1 18.9%
TriassicShark 85%	44.1 752.2 10,656.0 3,510.9	0.0 0.0 0.5 0.2 16.8%
Trout 85%	12.1 232.6 1,757.3 623.9	0.0 0.0 0.1 0.0 17.9%
Orca 85%	15.7 302.3 2,283.7 810.7	0.0 0.0 0.1 0.0 20.2%
Squid 85%	11.4 218.1 1,647.7 585.0	0.0 0.0 0.1 0.0 13.6%
Blue 85%	15.5 297.9 2,250.6 799.0	0.0 0.0 0.1 0.0 7.5%
Blue Whale 85%	66.2 1,271.6 9,607.6 3,410.8	0.0 0.1 0.5 0.2 7.5%
South Squid 85%	66.2 289.7 2,189.1 777.2	0.0 0.0 0.1 0.0 13.5%
PEP 11 Total	277.0 5,967.8 70,077.1 23,478.1	0.0 0.3 3.5 1.2
EP 325 Rivoli 8.3%	5.41 9.49 14.40 9.74	0.44 0.44 Contingent Resource
Rivoli East 8.3%		3.13 8.79 16.4 9.4 Oil Prospect
Rivoli Deep 8.3%	1.24 2.31 3.63 2.39	Gas Prospect
Whalebone 8.3%		4.68 14.7 28.4 15.8 Oil Lead
Web 8.3%		2.26 4.95 8.4 5.18 Oil Lead
Fly 8.3%		1.99 4.22 7.08 4.41 Oil Lead
RL1 Weaber 100%	0.25 11.5 45.8 18.4	Contingent Resource
EP386 Waggon Creek, Vienta, Bonaparte 100%	20	Gas + Oil Prospects
Others Total	6.9 43.3 63.83 30.4	12.06 33.1 60.3 35.2
Total	283.9 6,011.1 70,140.9 23,508.6	0.0 33.4 63.8 36.4

EP 386 and RL/1 : Location – Bonaparte Basin

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Located on the southern, onshore part of the Bonaparte Basin: EP 386 covers 2568km[2] in Western Australia.

Source: Cadman, S.J. and Temple, P.R., 2004. Bonaparte Basin, NT, WA, AC & JPDA , Australian Petroleum Accumulations Report 5, 2[nd] Edition, Geoscience Australia, Canberra

Onshore Bonaparte Basin Conventional Reservoir Discoveries & Prospects/Leads

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Bonaparte Basin Exploration Permits Subject to Beach Energy’s Farmin Agreement with Territory Oil and Gas.

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Vienta-1 workover and production test gas flow October 2011. Initial flow 1.97 MMscf/d, reducing to 0.53 MMscf/d within 1 hr, 18/64[th] ” choke Shut in and extended build-up pressure monitoring returned strong pressure recovery

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Waggon Creek-1 workover and production test gas flow November 2011. Stabilised flow of 1.07 MMscf/d through 32/64[th] ” choke Pressure monitoring demonstrated slowly increasing pressure at the end of the flow test

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Bonaparte Basin, Australia

Wide distribution of oil and gas shows and tests throughout basin

Advent Energy has 100% of EP 386 & RL 1 including gas discovery wells Vienta-1, Waggon Creek-1, Bonaparte-2, Garimala-1 & Weaber Field

This is an active hydrocarbon system

Source from Geoscience Australia: GA6928; Petroleum Systems of the Bonaparte Basin

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Bonaparte Basin Petroleum System

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From: Kennard et al, 2002, Subsidence and thermal history modelling: New insights into hydrocarbon expulsion from multiple petroleum systems in the Petrel Sub-basin, Bonaparte Basin.

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Bonaparte Basin Petroleum System

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From: Barrett, Hinde and Kennard, 2004, Undiscovered resource assessment methodologies and application to the Bonaparte Basin.

Vienta Gas Field – Abuts Stage Two Ord Advent Energy Onshore Gas field – Advent Energy Onshore Gas – RL1 EP386 Waggon Creek Gas Field (Cased & Suspended as future producer) Advent Energy Onshore Gas – EP386 Vienta Gas Field (Cased & Suspended as future producer) Planned future Northern Territory Stage Ord Scheme Stage Two Existing Secondary Ord Scheme Access (2011/2012) Road See detail to follow from Strategen E.I.S. Map

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EP 386 & RL/1:

Petroleum System and Nearby Cross-Section

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Source Rock:

Milligans Formation--Thick marine shale dominated sequence with TOC 1.82%.

Source Quality:

Oil and gas prone.The terrestrial nature (Type III) predisposes gas production

Maturity:

Peak generation and expulsion of hydrocarbons from Late Carboniferous to Middle Triassic

Reservoir Rock:

Mainly Milligans and Kuriyippi Formation (primary reservoir) Ningbing Limestone and Langfield Group sandstones (potential)

Seal:

Treachery Shale (regional), Intraformational Seals

Trap Types: Faulted and drap anticlines/horsts

Vienta-1: Elevated Gas Shows over mid-Upper Weaber-4: Elevated Gas Shows over & Lower Milligans Section Lower Milligans Section

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Elevated Gas Shows Over Shaly & Silty Section of approximately 850 m

Elevated Gas Shows Over Shaly Section of approximately 350 m

Ningbing-2: Elevated Gas Shows over Lower Milligans-Langfield Section

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Elevated Gas Shows Over Shale/Siltstone Section of approximately 650m

Pincome-1: Elevated Gas Shows over Lower Milligans-Langfield Section

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Elevated Gas Shows Over Shaly Section of approximately 300m

Waggon Creek-1A: Elevated Gas Shows over Lower Milligans Section

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Elevated Gas Shows Over Shaly & Silty Section of approximately 400 m

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Lower Milligans : Shale Gas Potential Area
Bonaparte-
1
Bonaparte-
2
Ningbing-
1
Garimala-
1
Skull-
1
Waggon Creek-
1A Weaber-
1
EP386 Pincombe
-1
RL1
Well with Geochemical Data
Bottom Milligans area: >650ms and
1,645km [2] Northern
Western
Australia Territory
Kununurra
Burt Range Shelf
Carlton Shelf
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Milligans Shale/Shaly Siltstone Geochemistry

Well	Milligans (m)	Thicknes s (m)	Depth (m)	TOC % (Cutting Samples)	Ro% (Cutting Samples)	TOC % (Core Samples)	Ro% (Core Samples)
Bonaparte 1	Medium grey shale/siltstone (70‐100%)	1448m	From 496 to 2280m	0.18‐1.33/0.76	0.44‐0.94/0.67
Bonaparte 2	Dark to grey shale (60‐95%)	1435m	From 480 to 2052m	0.704‐ 1.048/0.84		0.45‐1.84/0.92	0.58‐0.70 (1079‐ 1206m)
Garimala 1	Dark to grey claystone /siltstone (60‐ 90%)	940m	From 249 to 1829m	0.811‐1.143/0.99
Ningbing 1	Dark grey to grey shale/siltstone (65‐95%)	545m	From 21 to 1013m	0.82‐1.37/1.10	0.53‐0.69/0.61
Ningbing 2	Medium to dark grey shale/silty shale (60‐100%)	600m	From 12 to 1172m
Vienta 1	Dark to grey shale (70‐95%)	760m	From 34 to 1122m
Waggon Creek 1A	Dark to grey siltstone/claystone (60‐100%)	500m	From 22 to 943m	0.54‐1.33/0.79
Skull 1	Medium dark grey siltstone/shale(60‐ 100%)	800m	From 520 to 2000m (TD)	0.12‐2.22/0.71	0.66‐2.42 (from 408m ‐1782m)
Weaber 1	Medium dark grey siltstone/shale(70‐ 100%)	686m	From 430 to 1206m	0.29‐0.99/0.70	0.42‐0.61/0.50
Pincombe‐1	Medium dark grey siltstone/shale(60‐ 100%)	280m	From 80 to 423.8m	0.56‐0.89/0.75

Bottom Milligans is: >1500m Depth Area=875km[2]

Reference: Opportunities for Shale Gas Production in Western Australia by Bill Tinapple, Executive Director, Petroleum Division, Department of Mines and Pe Conference of Shale Gas World Australia 2011 in Adelaide

Analogy of EP 386 Shale Gas Potential and Maryborough Basin

Basic Data	Basin/Gross Area	Basin/Gross Area	Maryborough Basin (4.290mi2)	Onshore Bonaparte Basin‐ EP386 (991mi2)
	Shale Formation		Goodwood/Cherwell Mudstone	Milligans Shale /siltstone
	Geologic Age		Cretaceous	Carboniferous
Physical Extent	Prospective Area (mi2)		1,555	580 (0.37)
	Thickness (ft)	Interval	300‐3,000	1,640‐4,700
		Organically Rich	1,250	2,000
		Net	250	1,000 (4)
	Depth (ft)	Interval	5,000‐16,500	5,000‐10,000
		Average	9,500	7,000
Reservoir Properties	Reservoir Pressure		Slightly Overpressured	Slightly Overpressured
	Average TOC (wt%)		2.0%	0.84 (0.42)
	Thermal Maturity (%Ro)		1.50%	1.0% (0.67)
	Clay Content		Low	Medium
Resources	GIP Concentration (Bcf/mi2)		110	46 (1100.3740.420.67)
	Risked GIP (Tcf)		77	32.2
	Risked Recoverable (Tcf)		23	9.6

Bonaparte Basin Stratigraphic Column & Petroleum Occurrence

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• Up to 18km of Sedimentary and Volcanic Rocks from Cambrian to Cainozoic in Bonaparte Basin

• Over 5,000 m of Sedimentary section in Onshore Bonaparte Basin

• Multi Sandstone Reservoirs with Gas Flow

• Early Rift System with Later Compressional Structures Constrained by Marginal Fault System

Source from : YEAR 1 TECHNICAL REVIEW OF GEOLOGY, GEOPHYSICS AND PRODUCTION TESTING BONAPARTE BASIN OF NORTHERN TERRITORY Prepared forAmity Oil Limited

By Milton Schmedje and Peter Kirk June, 2002

Onshore Bonaparte Basin Milligans Formation Petroleum Plays

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Milligans Formation – Main Tight Gas & Shale Gas Plays:

• Key source rocks

• Over 500m marine shale/mudstone

• TOC up to 2.2%

• Gas-Prone

• Mature for Oil and Gas

• Elevated gas shows while drilling through the shaly and silty section

• Gas discoveries in conventional

• sandstone reservoirs in Waggon Creek-1 & Bonaparte-2

Garimala-1 Tight Gas Sands in Cockatoo Group

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DST#2 over interval 23852405m flowed gas to surface initially at rate of 21,240 m[3] /d (0.75 mmscfd) decreased to 13,310 m[3] /d (0.47 mmscfd) during 2 hr flow period

Reference: GARIMALA NO.1 Well Completion Report Prepared by O.W.Nugent (Consultant) July.1989 for Santos Limited

Ningbing-2: Tight Gas Sands in Upper Milligans Fm

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Gas Peaks Over Tight Sands DST#5 over interval 410412m flowed gas to surface at rate too small too measure

Reference: Ningbing NO.2 Well Completion Report Prepared Shane Hibbird for AMITY OIL NL. Technical Report No. AYO 29

Garimala-1 Tight Gas Sands in Cockatoo Group

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DST#2 over interval 23852405m flowed gas to surface initially at rate of 21,240 m[3] /d (0.75 mmscfd) decreased to 13,310 m[3] /d (0.47 mmscfd) during 2 hr flow period

Reference: GARIMALA NO.1 Well Completion Report Prepared by O.W.Nugent (Consultant) July.1989 for Santos Limited

Waggon Creek-1A : Tight Gas Sands in Burt Range Fm

Gas Peaks Over Tight Sands DST#1 over interval 960.75-1095m flowed gas to surface at rate too small too measure

Reference: Western Australia Oil & Gas Review—November 1996

EP 386 Shale Gas & Tight Gas Potential Conclusions

� Multiple petroleum targets are present in EP 386 & RL1 area:

• Proven conventional gas charged sandstone reservoirs in nearshore marine area of the Milligans Formation;

• Unconventional gas-condensate shale play in the shallow marine areas of Lower Milligans Formation;

• Unconventional tight gas sandstone and limestone reservoirs in the Langfield, Ningbing & Cockatoo groups below the Milligans Formation.

• Lower Milligans Formation shale is prospective for shale gas play with considerably large upside potential:

• Marine shale with moderate organic richness: TOC of up to 2.2% from samples in wells within or in close proximity of EP 386. Higher TOC could be present in the deeper offshore area north & east of EP 386;

• Source rocks are mature for gas and oil generation: Ro range 0.44-2.42% & Tmax range from 430 to 480;

• Limited geochemical data indicates source rocks at depth shallower than c. 1400m are mature for gas/wet gas and oil generating windows, but overmature and in the dry gas generating window at depth below 1400m.

• The thickness of the prospective shale gas play is varied from 300m to over

• 1500m. This would provide significant upside in prospective shale gas resources

• Unrisked OGIP for EP 386 & RL 1 could be in the range from c. 19 TCF to 141 TCF

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Australia’s LNG Potential

LNG Market Forecasts

Pacific Basin Supply Forecast

• Ongoing demand for Australian LNG from Korea & Japan is likely due to heavy investment in gas-fired power generation facilities with no domestic gas

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sources

• LNG accounted for one quarter of world gas trade in 2008, equal to 7 per cent of world gas consumption

• With fewer international pipelines in the Asia Pacific region, the share of gas trade met by LNG is much higher, at 83% (around 31% of consumption)

• China & India are both key importers, with commitments to reduce green-house emissions

• Gas purchasers report difficulties in securing gas contracts extending beyond build dates for LNG facilities in 2014-15

• In Australia, prices reflect local supply & demand fundamentals, characterised by low consumption and high reserves

• The proposed introduction of LNG exports from the East coast is set to alter this dynamic

• Domestic gas prices are predicted to be closer linked to the International LNG market going forward

Source: Australian Bureau of Agricultural & Resource Economics 2010, Wood Mackenzie, Deutsche Bank

32

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Australian LNG

Operator	Project	Size	Production / Sales	$Export Value per year (ABARE 2008 data)	Life
Woodside	Pluto	4.1 Tcf (+ 0.5 Tcf Xena)	3.25‐3.75 Mtpa LNG	$2.03 billion	15 years (+5 yr option)
Inpex	Ichthys	12.1 Tcf	8 Mtpa LNG 1.6 Mtpa LPG + condensate	$4.4 billion (LNG only)	40 years
Chevron	Gorgon	40 Tcf	3 x 5 Mtpa trains	$8.25 billion	60 years
Shell	Prelude	~5.4 Tcf +	3.6 Mtpa FLNG 1.3 Mtpa Cond. 400 ktpa LPG	$1.98 billion (LNG only)	25 years
Advent	PEP11	6 Tcf* (P50)
* Prospective exploration target only - yet to be discovered

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Company Overview

Background

Key Asset –Offshore Sydney Basin

� Formed in 2004 as an independent E&P company

Newcastle

• Headquartered in Perth, WA

• Portfolio of assets both onshore & offshore Australia with an estimated AUD 156m invested historically on exploration

� Cornerstone asset in PEP 11, covering the entire Offshore Sydney Basin

• Prospective recoverable resources of 6 TCF (P50)

• Swansons Mean 23 TCF

• Relatively shallow waters (50-200 m) and directly adjacent (<50 km) to Australia’s largest gas market

• Focus on search for direct and indirect Hydrocarbon Indicators

Sydney

• Geological analogies to proven, producing fields such as the Campos Basin, offshore Brazil and the Ormen Lange field in Norway

34

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Drilling Rig Contracted to Drill the First Well Offshore NSW

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• •Semi-submersible drilling rig Ocean Patriot

• •December 2010 spudded New Seaclem-1

• •One well program completed incident free and on schedule

•Revision of reprocessed seismic; updated permit recoverable resource potential of 6 Tcf (P50) and 23 TCF Swansons Mean

• •First well to explore for natural gas in the offshore Sydney Basin-Advent earned 85%

• •Well logs show a Tertiary sandstone unit of>40 m thickness and average porosity of 30%

• •Drilling sample mature for hydrocarbons- early permian

Portfolio – Offshore Sydney Basin PEP11

• Advent has increased its interest to 85% from 25% in PEP11 (8,250 km[2] ) following drilling first

• exploration well.

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• No drilling had previously taken place in the offshore

• Sydney Basin. Since 1910, 66% of onshore petroleum exploration wells have shown hydrocarbons and 41% have flowed gas on test.

• For 175 years coal has been mined from the

• Newcastle coalfields in the Hunter Valley.

• Comparisons with Moonie Oil Field.

• Active seepage has been detected along the

• PEP11/continental margin.

• Significant hydrocarbon and migration features have

• been observed in 1981,1991 and 2004 seismic profiles, including gas chimneys, HRDZs, anomalous AVO, reverse polarity events, and possible flat spots.

• Possible gas charged Cainozoic, Permian/Triassic reservoirs; excellent potential for natural gas

• discovery.

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Permit History & Progress

Historical Ownership of Permit

Progress through involvement of Advent

• During the 1980s, Santos Ltd. shot extensive 2D seismic over PEP11

• At the time, the prospect was not developed further:

• Gas prices rendered the field uneconomical

• Santos had committed to develop its Cooper Basin assets as a first priority

• From 1992, PEP11 was held by small Australian exploration companies without progress being made

• Advent farmed into a 25% interest in 2006 through acquisition of 2004 seismic

• Significant geological & geophysical work completed since Advent’s farm-in:

• Fugro Ltd reprocessed 1,460km seismic shot in 2004 & integrated with 2,300km legacy data obtained from Santos

• Prospective recoverable resource estimates have been independently validated

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37

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Significant Hydrocarbon Potential proven by Industry Standards

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Features Observed Across Permit
Mound
Pockmark B4-18
(Reprocessed)
AVO
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• The permit’s potential is evident in the significant and complimentary hydrocarbon & migration features observed

• Direct hydrocarbon indicators identified in seismic data

• high amplitude bright spot reflections

• attenuation of high frequencies in instantaneous frequency plots

  • bright spot features in Root Mean Squared amplitude plots

• Gas chimneys, HRDZs, anomalous AVO, reverse polarity events, flat spots are also present

• Seepage has been observed and recorded via Landsat across areas of the permit

• Echosounder seeps and sizeable pockmarks are observed within the permit area and covering the offshore continental slope

• Repeated Hydrocarbon seep samples show a thermogenic source

• Independent inshore Hydrocarbon Seep Gas analysis shows high gas content

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HRDZ
Flat Spot
B4-15
(Reprocessed)
B4-16 (Reprocessed)
38
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Offshore Sydney Basin
Norway:
Ormen
Lange
14 Tcf
Pockmark over 282,000m [3]
Source: European Commission
Image courtesy Ron Boyd,
University of Newcastle
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Geophysical Gas Indications
TOPAS Sub bottom profiles from SS10 / 2006
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B4‐16 Preliminary Final PSTM (Zoom)

Data reprocessing from phase 2, 2009 indicates a flat spot on the time processing within structure on line B4-16 which may warrant further investigation. Area of interest is cmp 900 to 1060 (2 km) at a time of 1500ms and 1700ms. Note polarity of flat spots is opposite to the seafloor indicating a likely soft response.

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Board

Board Members

Mr. Goh Hock: Chairman

• Previous President of Schlumberger Asia. Managed all Asian operations including oil field services & outsourcing

• 25 years with Schlumberger, held several field & management positions in the oil & gas industry across ten countries in EMEA

Mr David Breeze: Executive Director

• Executive positions in Daiwa Securities, Eyres Reed McIntosh & BNZ North's

• Involved in the structuring, capital raising & listing of 80+ companies raising over $250M

• Chairman of Grandbridge Ltd and BPH Energy. Ltd & Executive Director of MEC Resources Ltd

• Bachelor of Economics (University of Tasmania); MBA (University of Western Australia)

• Fellow of the Institute of Company Directors of Australia

Mr. Eng Hin Tan: Non-Executive Director

• Appointed to several senior management positions within Schlumberger across Asia

• Initially a Field Exploration Engineer with Schlumberger in Brunei

• Has held Technical Directorial and Managing Directorial positions several corporations in Asia

Ms. Deborah Ambrosini: Executive Director, CFO & Company Secretary

• Corporate accountant with over 10 years experience in biotech, mining, IT communications & financial services sectors

• Director of ASX public companies BPH Corporate & MEC Resources

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Key Personnel

Consultants & Advisors

Mr. Ding Gui Ming: Advisory Panel Chairman

• Formerly China National Petroleum Company (CNPC) Head of Exploration

• Directed exploration activities for over 20 oilfields across China

• Supervised reform of BaoSteel, Wuhan Steel & ChangJiaiig Shipping

• Assistant President of CNPC from 1997-98, overseeing exploration & production oilfields in China

• Once president of Daqing Oilfield, China’s largest (1.2 mmbpd production)

Mr. Jim Dirstein

• 25 years of international experience in oil industry including 12 years as principal of independent geophysical consulting company

• Total Depth -Consultancy provides services including 2D/3D for prospect generation/appraisal/development and business development internationally & locally with Australian petroleum & minerals companies

Mr. Fred Kroh

• Formerly Project Leader of Geophysical Processing & Data Access Project with Geosciences Australia. Specialist in AVO processing analysis, seismic & bathymetric data acquisition & processing

• Co-authored or contributed to several articles, abstracts & publications

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Industry Leading Geological Expertise

Mr Timothy Berge

BSc (University of Wisconsin, Madison)

MA - Geology (University of Texas at Austin)

• 25 Years Corporate experience, an Industry expert in AVO, Inversion, Workstation interpretation, Sequence and Structural Geology, Reserves certification and Risk Assessment.

Geophysics Manager, Forest Oil (1998-2006)

• Developed technology for seismic recognition of coal and coalassociated pay. Expertise in Coals as a source rock and reservoir. Credited with several discoveries including West Forelands and Three Mile Creek gas fields.

Chief Geophysicist, Forest Oil International, Denver, CO (1998-2004)

• Responsible for all of Forest’s international geophysical activities in South Africa, Gabon, Italy, Romania, Tunisia, Bavaria, Switzerland. Credited with discovery of Ibhubesi field, RSA (2000)

Lead Geophysicist, Exxon Ventures, West Siberia Group (1993-1996)

• Coordinated Priob Field Tender Bid. Editor of Exxon / Sodeco / Dalmorneftegas Sakhalin TER (feasibility study). 2D and 3D seismic survey acquisition planning, processing, and interpretation

Awards and Affiliations

• AAPG G&G Integration Committee Chairman, 2005-current

Mr. Lan Nguyen

BSc (Baku, Azerbaijan)

MSc - Geology (New England University, Aus.)

• Lan Nguyen is a professional petroleum geologist & engineer with over 20 years experience in petroleum exploration, development and production

• He is currently a member of the Petroleum Exploration Society of Australia (PESA), the American Association of Petroleum Geologists (AAPG) & the Society of Petroleum Engineers (SPE)

• During his 15 year tenure at Mosaic Oil N.L., an ASX listed petroleum exploration and production company, he played leading roles, initially in technical management positions subsequently as Managing Director, developing Mosaic Oil from a speculative petroleum explorer to a successful petroleum exploration and production company with growing production revenues & petroleum reserves/resources

• He was credited with the discovery and development of many oil and gas fields in the Surat-Bowen Basins through his innovative introduction of various exploration, drilling and completion technologies to Queensland and Australia

• Lan is currently a principal/director of Tanvinh Resources Pty Ltd and Surat Bowen Energy Services Ltd, which provide services to energy and resources companies in Australia and Asia-Pacific region

• SEG Global Affairs Committee Chairman, 2001-2003

• AAPG G&G Integration Committee Chairman, 2005-2007

• State of Texas Professional Licensed Geoscientist,

• Active member of AAPG, SEG, RMAG, AGS, DGS, WTGS, HGS, SGV, and GSH

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Contributions Gratefully Acknowledged and References

Data, advice, review and technical contributions gratefully acknowledged

•Jim Dirstein - -Total Depth - Principal Geophysical Consultant PTEM survey

•Fred Kroh –Formerly Project Leader of Geophysical Processing and Data Access Project - Geoscience Australia

• •Tim Berge –Geophysical Consultant -

•Deet Schumacher -Terraliance

•Dan Orange

•Fred Aminzadeh

•David Connolly

•Michael Abrams

• •Professor Ron Boyd –Newcastle University

•Andrew Mayo –Macquarie Oil –

•Kriton Glenn –Geoscience Australia

• Ben Clennel , Asrar Talukder and team (CSIRO Subsurface Prediction and Description )

• •Geoff O’Brien –Formerly Geoscience Australia

•Ding Gui Ming –Principal Geological Consultant

• •Associate Professor Jock Keene –Sydney University

• •Kevin Ruming - School of Environmental and Life Sciences University of Newcastle

•BOS

• •Oil Hunters

• •Bounty Oil

•RPS

•BGP

• •John Cant

• •Allan Williams -NPA

•Mike Rego – Aminex

•Tom Fontaine

•Fugro

•Geosience Australia •Crown Minerals NZ •Kieth Woolard •David Orth

• •David Remus

•Clem Allsworth

Publications

•AAPG Memoirs ”Hydrocarbon migration and its Near surface Migration” •Judd A and Hovland M “Seabed Fluid Flow”

•Whelan J Marine Chemistry and Geochemistry, Woods Hole Oceanographic Institution “Dynamic gas driven petroleum systems” and Whelan J et al “Surface & subsurface manifestations of gas movement through a N-S transect of the Gulf of Mexico”

•Government of NSW “New South Wales Petroleum Potential” •NSW Department of Mineral Resources •Alder et al “Prospectivity of the Offshore Sydney Basin –A New Perspective“ •Frog Tech Pty Ltd •Aftenbladet Multimedia •The European Commission “The Deep Sea Frontier” •Aminzadeh, F., de Groot, P., Berge, T. et al “Determining Migration Pathway from seismically derived Gas“

•Geoscience Australia –Patchett.A and Langford. R.”New South Wales –Deep Saline Aquifer Storage Potential”

•Geoscience Australia Glenn. K “Revealing the continental Shelf off New South Wales” •Aminzadeh F Connolly D and Ligtenberg H “Hydrocarbon Phase detection and other applications of Chimney Technology”

•Dietmar Schumacher, Surface geochemical exploration for oil and gas: New life for an old technology Geo-Microbial Technologies, Ochelata, Oklahoma, U.S. The Leading Edge

•Michael A. Abrams “Significance of hydrocarbon seepage relative to petroleum generation and entrapment” Marine & Petroleum Geology

•AAPG Conference Geoffrey W O’Brien, Andrew Barrett, and Megan Lech .”Integrating 3D Seismic data and multiple, independent remote sensing technologies to constrain nearsurface Hydrocarbon Migration and Seepage Rates and Leakage Mechanisms on the North-western Australian Margin”

•Journal of Geophysical Research, The world’s most spectacular marine hydrocarbon seeps (Coal Oil Point, Santa Barbara Channel, California):

•Marine & Petroleum Geology N. Rollet, GA Logan, JM Kennard, PE O’Brien, AT Jones, M Sexton Characterisation and correlation of active hydrocarbon seepage using geophysical data sets: An example from the tropical, carbonate Yampi Shelf, Northwest Australia

•Daniel Lewis Orange The implications of Hydrocarbon seepage, gas migration and fluid overpressures to frontier exploration and geohazards

•Dietmar Schumacher AAPG Hedberg Conference Near Surface Hydrocarbon Migration; Mechanisms and seepage rates The Dynamic Nature of Hydrocarbon Microseepage: An Overview

•O’Brien et al “Yampi Shelf Brows Basin –Northwest Shelf “

•Cowley R & O’Brien ”Identification and interpretation of leaking hydrocarbons using seismic data“

• •Kroh F Reprocessing shows AVO potential for petroleum exploration Geoscience Australia

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David Breeze MEC Resources Ltd Ph +61 8 9328 8477 david@mecresources.com.au Executive 14 View Street Fax +61 8 9328 8733 www.mecresources.com.au Director North Perth WA 6006 Australia

DISCLAIMER

MEC Resources Ltd (MEC) has prepared this Company Introduction Presentation. Whilst the information contained in this publication has been prepared with all reasonable care from information provided by the Company and from sources, which MEC believes are reliable, no responsibility or liability is accepted by MEC for any errors or omissions or misstatements however caused. Any opinions forecasts or recommendations if any reflects the judgment and assumptions of MEC as at the date of the publication and may change without notice. MEC and its officers, agents, employees, consultants and its related bodies corporate, exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this document to the fullest extent permitted by law. This publication is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any securities recommendation contained in this publication is unsolicited general information only. MEC is not aware that any recipient intends to rely on this publication or of the manner in which a recipient intends to use it. In preparing our information, it is not possible to take into consideration the investment objectives, financial situation or particular needs of any individual recipient. Investors should obtain individual financial advice from their investment advisor to determine whether recommendations contained in this publication are appropriate for their investment objectives, financial situation or particular needs before acting on any such recommendations. This publication is not for public circulation or reproduction whether in whole or in part and is not to be disclosed to any person other than the intended recipient, without obtaining the prior written consent of MEC. MEC, its officers, employees, consultants or its related bodies corporate may, from time to time hold positions in any securities and may buy or sell such securities or engage in other transactions involving such securities.