MEC RESOURCES LIMITED — Investor Presentation 2011

Jun 13, 2011

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14 June 2011

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

Dear Sir/Madam

Advent Energy Presentation

Petroleum Exploration Society of Australia (PESA), Sydney June 2011

MEC Resources Ltd (ASX: MMR) advises that its investee entity Advent Energy Ltd is presenting today at PESA 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

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

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. 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 has been estimated to comprise up to 16.3 Tcf (P10 or ‘high’ level) prospective recoverable gas resources.

Advent Energy’s wholly owned subsidiary Asset Energy Pty Ltd is increasing its interest from 25% to 85% from joint venture partner Bounty Oil and Gas (ASX:BUY) who will reduce their interest from 75% to 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 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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Commencing Exploration of the Offshore Sydney Basin – PEP11

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2011

Drilled 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

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

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

• •Palynology Report: Early Permian (Branxton -

• F m M f h d rocar b i ) ature or y on generat on

• PRESENTATION

Background /Site Survey /Results and forward plan

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Historical: Santos 1990 et al

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fault closures Structural Leads Focus “The Newcastle Syncline is probably the best place to explore for oil or gas ...the syncline contains the thickest and most complete Sydney Basin section (possibly including Triassic section)”

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Santos (1991) identified a total 10 structural leads in the PEP 11 offshore area......”Baleen position indicated Ampolex (1992) identified the Baleen South Lead as one of their major targets. Unrisked reserves were estimated at 1560 BCF. One of the reasons why the early Permian, with a stronger marine influence, is considered to have the better reservoir potential and why reservoir potential should increase to the east, in the offshore.. where palaeo-depositional environments had greater marine influence.... .... offshore oil and gas seeps have been recorded from Long Reef to Catherine Hill Bay, giving rise to periodic oil slick occurrences along the coast, especially in the Cape Three Points, Terrigal area, supporting the assessment that the Basin contains an active petroleum system.

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Offshore Sydney Basin : Structural View From East to West

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South Fish

Baleen

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“It is generally assumed that maturation and
migration began relatively early and hence early
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(Stewart and Alder, 1995)
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Advent Energy PEP11 structural and stratigraphic targets

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New Seaclem 1
-Great White &
Marlin
Baleen
Aba one l &
Abalone Deep
Abalone
South Fish
Great White
Marlin
Abalone Deep
Paleozoic Prospects
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Features of the Offshore Sydney Basin

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The main source kitchens are in the deeper parts of the ......Offshore Syncline and Newcastle Syncline (Santos1987 Ald, er et a l 1998) It seems that a sub Permian basin lies be ow l the yS dney Basin near the coast and Offshore “Grybowski 1992

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Offshore Sydney Basin hydrocarbon accumulation/migration features

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Offshore Sydney Basin
Norway:
Ormen
Lan e
g
14 Tcf
Pockmark over 282,000m [3]
Source: European Commission
Image courtesy Ron Boyd,
University of Newcastle
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Offshore Sydney Basin: Swath Survey 2006

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D. Schumacher: “Hydrocarbons seep in large concentrations in
basins actively generating hydrocarbons or that contain excellent
migration pathways”
Pockmark over 282,000m [3]
Image courtesy Ron Boyd,
University of Newcastle
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Geophysical Gas Indications

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TOPAS Sub bottom profiles from SS10 / 2006

Hydrocarbon migration

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Source: Whelan, Marine & Petr Geol 2005
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Gulf Coast transect: general schematic diagram of subsurface oil and gas flow consistent with geochemical, geological, and fluid flow modelling (from Whelan, Marine & Petr . Geol . 2005)

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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)

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Heggland ‐Fluid Migration‐Gulf of Mexico (Statoil Model)

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

• •“ seismic chimneys are visible in 90% of all Mesozoic and Tertiary basins.”

• Gas chimneys have been observed to tie in to

• features associated with gas seepage like pockmarks and ….shallow gas accumulations and faults

• Recent studies have revealed that chimneys can

• represent a link to deeper hydrocarbon accumulations

• The mapping of chimneys has significance in

• geohazards interpretation

• High concentrations of chimneys are observed in

• areas where discovery wells and oil and gas fields are present and

Schumacher D “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 “

Thermogenic hydrocarbon seepage offshore NSW

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Gas seep seafloor Offshore Sydney Basin, NSW

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Gas Chimney?

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• Mound on 81 05

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B4-15 (Reprocessed)

Observed Hydrocarbon Features

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• 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 po ar ty events, at spots are a so l i fl l present

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

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Features Observed Across Permit
Mound
Pockmark B4-18
(Reprocessed)
AVO
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 Echosounder seeps and sizeable pockmarks HRDZ
are observed within the p ermit area and
Flat Spot
covering the offshore continental slope
 Repeated Hydrocarbon seep samples show a
thermogenic source
 Independent inshore Hydrocarbon Seep Gas
B4-15
analysis shows high gas content (Reprocessed)
B4-16 (Reprocessed)
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Seismic features: B4‐16 Preliminary Final PSTM

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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 kms) at a time of 1500ms and 1700ms. Note polarity of flat spots is opposite to the seafloor indicating a likely soft response. Large well timed structures with both four way dip and

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Offshore Sydney Basin – Direct Hydrocarbon Indicators

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Figure 69: Display of Line B4-15. The continuity of high amplitude reflector has been mapped.

Figure 70: Reflection Strength plot of the high amplitude reflector

“Strong energy reflections present on seismic section can be associated with major lithologic changes as well as hydrocarbon accumulations.”

“Gas reservoirs, in particular, appear as high amplitude “bright spo t” r e fl ec ti o n s .”

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Offshore Sydney Basin – Direct Hydrocarbon Indicators

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Figure 72: Instantaneous frequency plot for the high amplitude reflector. It is showing low frequency anomaly.

“I nstantaneous requency content s o f i f interest in that high frequencies are attenuated by gas and condensate ” reser v oirs .

Figure 74: RMS of seismic amplitude over the - area of Line B4 15 , where high amplitude reflector is mapped.

“The Root Mean Square (RMS) am litude … ma be used to ma direct p y p hydrocarbon indicators in a zone.” “The RMS of seismic amplitude for the 700ms window have been calculated. This indicates a bright spot like feature, which is a prime indicator for the occurrence of gas.”

Offshore Sydney Basin – Permo-Triassic trap summary

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• S e sm c gat i i h ers prov id e d b y ugro F h ave been processed for AVO analysis

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• AVO analysis shows the gathers have a number of good events that show correlations with theoretical AVO curves

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• AVO observations broadly correlate with locations of existing structures and leads such as the g reater Fish p ros p ect

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The leads from AVO analysis are summarised at the base map:

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Leads Leads ( ~>1000ms ) (lower SNR) Leads (above unconformity) Permo-Triassic Prospects and Leads (Advent) Permo-Triassic Prospects and Leads (T Berge)

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Advent Energy – Site Selection

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• Site Survey:

• April 13 – June 5 2010 (50+ days)

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• •Weather

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• •4 sites

• •3km x 3km

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• •Analogue

• •Multibeam bathymetry

• •Side scan sonar

• •Boomer shallow seismic

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• •High resolution digital seismic

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• •Seabed Sampling (including GORE)

Thermogenic hydrocarbon seepage analysis points offshore NSW

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Apr, 2010: GORE Water amp es S l
Apr 2010: GORE Core Sample (South Fish)
New Seaclem site
Apr 2010: GORE Core Sample (Background 2)
Baleen site
Apr 2010: GORE Core Sample (Background 1)
Fish site
Apr 2010: GORE Core Sample (Seaclem1)
Apr 2010: GORE Core Sample (Franklin Cruise)
Apr 2010: GORE Core Sample (Seabell)
Apr 2010: GORE Core Sample (Top Baleen)
Apr 2010: GORE Core Sample (Baleen Mount)
Apr 2010: GORE Core Sample (Top Fish)
June 2010: GORE Core Sample (New Seaclem)
June 2010: GORE Core Sample (Seabell-1 GS1A)
2 June 2010: GORE Core Sample (Seabell-1,
4 GC1, 50cm depth)
Dec, 2010 : ISOTECH Sample Location
2
5 [2] 2
6
7 [2]
8
2
9
3
0 Site sampling with seafloor cores
indicated thermogenic hydrocarbon gas
source u b t i nsu ffi c en samp es or i t l f
statistical validation
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	Isotech Data 7 Headspace Cans
	Project: J10827 Company Isotech Isotech GC H2 O2+ Ar CO2 N2 CO C1 C2 C2H4 C3 C3H6 iC4 nC4 iC5 nC5 C6+ Mass Spec 13C1 Lab No. Lab No. Job No. Date ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm Date ‰ AUXX0024 203531 14660 2011-2-4 nd 14500 15100 969200 nd 1220 nd 6 nd 2 nd nd nd nd 1 2011-2-10 -38.0 AUXX0025 203532 14660 2011-2-7 nd 8300 34000 939300 nd 18300 3 86 3 4 nd nd nd 2 nd 2011-2-10 -60.8 AUXX0026 203533 14660 2011-2-4 nd 12400 56300 922800 nd 8460 nd 17 nd 4 nd nd nd nd 1 2011-2-10 -36.7
	AUXX0027 203534 14660 2011-2-7 nd 26700 10300 954400 nd 8590 1 28 nd 1 nd nd nd nd 1 2011-2-10 -41.2 AUXX0028 203535 14660 2011-2-4 nd 16000 80000 894300 nd 9640 1 48 1 2 nd nd nd 1 1 2011-2-10 -23.0 AUXX0029 203536 14660 2011-2-4 nd 14000 6900 977900 nd 1240 nd 2 nd 1 nd nd nd nd 1 2011-2-10 -53.5 AUXX0030 203537 14660 2011-2-4 nd 15700 53700 905200 nd 25400 nd 29 nd 1 nd nd nd nd 1 2011-2-10 -37.2 Chemical analysis based on standards accurate to within 2%. Hydrogen chemical analysis is accurate to within 10%
	d t d t t d t l d n = no e ec e , na = no ana yze

• Isotope sample analysis shown - seven sites in Fish area –as before insufficient sampling for statistical validity-weather severe limit on sampling(nb N2 used to flush tdi cans ) • [13] C 1 ‰ values above in red range from -23 to -60 (Schumacher – ”seeps dominated by thermogenic methane have [13] C1 within the range -60 to - 20)(and biogenic in range -85 to - 55) and C1:C2 + ratios =200-10

•TDI Brooks- First view rior to anal sis iven sam lin methodolo “it is ver unlikel that p y g p g gy y y there will be any light hydrocarbon gas higher than background levels” then after analysis “our first analysis showed ethene and propene 10 to 40 times anything we have ever seen in marine sediments.”The isotope data above is TDI check after the initial TDI Brooks analysis . • Independent expert report –T .Berge 2010”... indicating a mature petroleum source . From Advent Energy report, “Gore” sampling, June, 2010. Note Gore analysis does not include Methane

Comparison-Light Hydrocarbons-Deepwater Ocean –AGSO-Rig Seismic Survey

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TDI-BrooksInterstitial Gas Concentrations (ppmV in headspace) –Fish Area

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		CO2		Methane (CH4)	Ethene (C2H4)	Ethane (C2H6)	Propene (C3H6)	Propane (C3H8)		Butenes (C4H8)	i-Butane (C4H10)	n-Butane (C4H10)	i-Pentane (C5H12)	neo- Pentane (C5H12)		n-Pentane (C5H12)
	AUXX0024	2698												0.00		0.00
			8.27	1,221.3	6.64	0.36	1.23		0.22	0.36	0.00	0.10	0.00
	AUXX0025	7602	1.73	19,676.5	111.11	6.41	1.10		4.29	0.85	0.00	0.26	0.00		0.05	4.19
	AUXX0026	9491	8.04	8,363.6	18.07	0.68	3.56		0.37	0.48	0.00	0.09	0.00		0.00	0.00
	AUXX0027	3688	0.92	9,919.3	39.55	1.86	1.00		0.52	1.01	0.00	0.12	0.06		0.02	0.18
	AUXX0028	14899	9.01	10,045.8	55.69	2.87	1.49		0.62	0.00	0.00	0.00	0.00		0.00	0.61
	AUXX0029	20311.58														0.00
				1,286.3	2.27	0.40	0.54	0.25		0.39	0.00	0.07	0.00
	AUXX0030	157077.47		29,134.9	37.37	2.16	0.67	0.65		0.74	0.00	0.11	0.11	0.00		0.43

Gore samples exposed to sediments at Baleen site

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Advent Energy Offshore Sydney Basin Seabell (Baleen) site survey

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Site Survey- Identify drilling hazards . Site survey is the subject of a legal dispute and court action

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• •Advice to site survey contractor: “....we expect to need ... a digital seismic survey to help us identify and manage any r s i k o f s h a ll ow gas ase b d on th e poor qua lit y o ex s f i ti ng seismic ... we would need to consider for shallow gas drilling hazard – sea bed down to approximately 500m” “

• • Briefing Document .... Digital Equipment and Acquisition Parameters”, required that the digital survey be undertaken using a “shot point interval” of 6.25 metres •The Site Survey contractor undertook the survey using a shot point interval of 12.5m. This was “...other than in the manner” recommended by independent expert advisers . The final seismic processing report included the following s a emen s: t t t “Th e max mum recommen i d e d samp li ng n erva i t l for this type of data was 6.25m for both shot and receiver spacing.” The final report on shallow gas hazards said: 1. “The level of shallow gas risk cannot be accurately defined in Sequence 4 below 350 ms TWT .”

• 1. “Caution is therefore recommended for safet y when drilling at the proposed Seabell-1 well location”

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Gore samples exposed to sediments at South Fish site

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Advent Energy Offshore Sydney Basin South Fish site survey

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Site Survey- Identify drilling hazards .

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Site survey is the subject of a legal dispute and court action

•Advice to site survey contractor: “....we expect to need ... a digital seismic survey to help us identify and manage any r s i k o f s h a ll ow gas ase b d on th e poor qua lit y o ex s f i ti ng seismic ... we would need to consider for shallow gas drilling hazard – sea bed down to approximately 500m”

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“ • Briefing Document .... Digital Equipment and Acquisition Parameters”, required that the digital survey be undertaken using a “shot point interval” of 6.25 metres

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•The Site Survey contractor undertook the survey using a shot point interval of 12.5m. This was “...other than in the manner” recommended by independent expert advisers . The final seismic processing report included the following s a emen s: t t t “Th e max mum recommen i d e d samp li ng n erva i t l for this type of data was 6.25m for both shot and receiver spacing.”

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The final report on shallow gas hazards said:

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1. “The level of shallow gas risk in the Permo –Triassic sedimentary rocks can therefore not be defined in the South Fish -1 site.”

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1. “... The probability for shallow gas occurring in sequence 4 cannot be estimated from the UHR data”

2. “Caution is therefore recommended for safety when drilling at the proposed South fish -1 well location”

Gore samples exposed to sediments at New Seaclem site

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New Seaclem;
GS2
50.00
Mean Method
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Mean
40.00
Instrument
Blank
30.00
20.00
10.00
0.00
Carbonyl Sulfide Dimethyl Sulfide Dimethyl Disulfide Ethene/Ethane Ethane Propene Propane 1-Butene Butane 2-Methylbutane 1-Pentene Pentane Furan Carbon Disulfide Cyclopentane 2-Methylpentane 3-Methylpentane 1-Hexene Hexane 2-Methylfuran ethylcyclopentane M 4-Dimethylpentane2, Cyclohexane Benzene 2-Methylhexane 3-Methylhexane ethylcyclopentanecis-1,3-Di m ethylcyclopentanetrans-1,3-Di m ethylcyclopentanetrans-1,2-Di m 1-Heptene Heptane Methylcyclohexane ,5-Dimethylhexane 2 Toluene 3-Methylheptane methylcyclohexanecis-1,3/1,4-Di 1-Octene Cycloheptane methylcyclohexanecis-1,2-Di Octane methylcyclohexanetrans-1,3/1,4-Di 6-Dimethylheptane2, methylcyclohexanetrans-1,2-Di Ethylcyclohexane Ethylbenzene m,p-Xylenes 1-Nonene o-Xylene Nonane Cyclooctane Propylcyclohexane alpha-Pinene Propylbenzene /3-methylbenzene1-Ethyl- 2 -Trimethylbenzene1,3, 5 beta-Pinene l-4-methylbenzene1-Eth y 1-Decene Decane -Trimethylbenzene 4 1,2, Octanal Benzofuran Indane Indene Butylbenzene 1-Undecene Undecane Nonanal etramethylbenzene1,2,4,5-T Camphor Dodecane Naphthalene Decanal Benzothiazole Tridecane Methylnaphthalene2- Tetradecane Caryophyllene Acenaphthylene Pentadecane Hexadecane Heptadecane Pristane Octadecane Phytane
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Advent Energy Offshore Sydney Basin New Seaclem site survey

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Independent Site Survey Contractor; Shallow Gas Risk:

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“ Gas Possible ”

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“Gas Possible” “Gas Likely”

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“Gas Possible”

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New Seaclem GORE Geochemistry:

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Site sampling with seafloor cores indicated thermogenic hydrocarbon gas source but insufficient sam les for statistical validation p

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HRDZ comparison between PEP11 Line B4‐11 and Vulcan Sub‐Basin

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“… ‘forced regressive shorelines’ and this concept is of considerable importance to the hydrocarbon industry because of the significant potential for good reservoir development.” (Boyd et al, RV Franklin Cruise FR15/98)

“Soft”High Amplitude Anomalies

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HRDZ HRDZs on PEP11 seismic line B4‐11 Slide 29

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]

Advent Energy Offshore Sydney Basin Interim Interpretation

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CSIRO: “AVO analysis shows indication of class III AVO classification. Class III AVO anomaly generally stands for gas sands.”

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Exploration Well ‐Great White & Marlin‐New Seaclem 1
WD:140m
Great White:390m
Marlin:530m
Top Paleozoic: 640m
TD:800m
B5‐05 (Depth)
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Drilling Detail New Seaclem‐1

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•"Pre-drill depth estimations to horizons went as predicted suggesting the stacking velocities in the shallow section show a good relationship between actual velocities .

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•The digital site survey from the New Seaclem-1 site provided a valuable source of seismic attributes. On this occasion, the pre-drill estimates of relative impedance from the seismic proved more accurate and reliable than the look ahead VSP.

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•While no gas was reported for the well, the predrill AVO anomalies occurred at zones which where either known to be affected by multiples or where the water saturation (from log analysis) dropped from 100% to 85-90%."

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	Above unconformity •Thick porous tertiary
	d t t th san s one-grea er an 40m thickness - Average porosity of 30%
	•Updip structural potential

7

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8

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Offshore Sydney Basin Seismic Line B4‐05

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B4-05-FUG09

Advent Energy Offshore Sydney Basin Interim Interpretation

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120k m
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Advent Energy Offshore Sydney Basin Interim Interpretation

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Above unconformity

• Thick porous tertiary sandstone-

• greater than 40m thickness - Average porosity of 30%

• Updip structural potential

Beneath unconformity

• Palynology Report:

• • Early Permian (Branxton Fm)

• Mature for hydrocarbon generation

• Nearshore to marginal marine

• deposition environment

Future

• Seismic interpretation /remapping

• • More seismic required/seismic

• trials

• Redo site surveys

• Drilling

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David Breeze Advent Energy Limited Ph +61 8 9328 8711 david@adventenergy.com.au Director 14 View Street Fax +61 8 9328 8733 www.adventenergy.com.au North Perth WA 6006 Australia

DISCLAIMER

Advent Energy Ltd (Advent Energy) 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 Advent Energy Ltd believes are reliable , no responsibility or liability is accepted by Advent Energy Ltd for any errors or omissions or misstatements however caused. Any opinions forecasts or recommendations if any reflects the judgment and assumptions of Advent Energy Ltd as at the date of the publication and may change without notice. Advent Energy Ltd 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 con a ne t i d i n thi s pu bli ca ti on s unso i li c it e d genera l i n orma f ti on on y. l Ad ven t E nergy Ltd i s no aware t th a any rec p en t i i t i n en t d s o re y on t l thi s 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 p art and is not to be disclosed to an y p erson other than the intended reci p ient , without obtainin g the p rior written consent of Advent Energy Ltd. Advent Energy Ltd 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.