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2007 Annual General Meeting Managing Directors Review

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AGENDA

► 2007 YEAR IN REVIEW

► OBJECTIVES FOR 2008

► QUESTION AND ANSWER SESSION

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AGENDA

2007 YEAR IN REVIEW

Exploration
Reserves & Production
Gas Sale Opportunities
Infrastructure Development
Management & Stakeholder Activities

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2007 Year In Review - Ex loration p

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6000
6000
5000
4000
3000
2000
833
1000
0
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Acreage
(Sq Km)
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► PEL 426 Joint Venture with Molopo ► Southern Clarence Moreton Basin ► CSM & conventional exploration ► 215 l/km reprocessing, data gathering ► Pine Brush, Clifden leads ► PEL 16 ► CE 6 – major gas kick ► Conventional structure analysis ► PEL 13 ► Reprocessing of 300 line km data ► Appointment of new Exploration Manager Mr Peter Stanmore

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2007 Year In Review - Reserves & Production

► 12,500m core drilling and testing program starting January 2007

Objective of 660PJ by mid 2008

250 200 150

100

194

► Incremental 2P Reserve increases to November 2007 of 194PJ (Net)

Data with reservoir engineers; expecting further incremental upgrades
Trial Production Program for 2P to 1P conversion ► Ensign Alliance – use of ADR 100 rig for improved capability
Vectra Alliance – skilled horizontal CSM experience
Trial program has commenced

2P Reserves

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2007 Year In Review - Gas Sales O ortunities pp

► In Dec 2006, CS Energy JV covering CSG rights to Blocks 4,5 & 1 of PEL 16 (approx 27%)

397.5 400

► $11 M to earn an initial 15% interest in farm-in area with core drilling and pilot production drilling program ► Objectives

300 ► 540PJ (2P) Reserves ► Casino to Ipswich pipeline study 200 ► Field development studies ► Project Sanction 2008 100 ► CSE $94.5 M Capital commitment 37.5 ► 140km CIP pipeline 0 ► Gas delivered to Swanbank 18PJ/a Gas Sales MOU ► Total value of gas sale agreement over $1

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2007 Year In Review - Infrastructure Develo ment p

Richmond Valley Power Station
30MW gas fired power station located at Casino, requires 2.5PJ/a over 15 years

► Have drilled 4,500m since February 2007, 195 coal samples for testing for Reserves determination ► Finalised and Lodged EA

Lodged Connection Agreement
► Finalised power station site
Continuing with regulatory process
2 additional pilot production holes planned to establish 1P in area

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2007 Year In Review - Infrastructure Develo ment p

► CSE Stratheden Joint Venture, 18 PJa Field Development and 140km Casino Ipswich Pipeline

Have drilled 8,000m since February, 405 coal samples for testing
► Independent reserve certification upgrades to 194 PJ (2P)
Further upgrades expected
5-6 well trial production program has commenced
Field Development and associated studies well underway
Pipeline studies
Route analysis and associated studies completed
Fatal flaws completed
Regulatory process started

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2007 Year In Review - Mana ement & Stakeholder Activities g

16 12 8 4 1.7 0

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17
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► Financial position ► $17m cash ► JV funding ► Human Resources ► New HS&E officer ► Exploration Manager ► Field office support ► Organisation Capability ► New Safety Management Plan ► Community consultations ► Community support

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AGENDA

2008 OBJECTIVES

Exploration
Reserves & Production
Gas Sale Opportunities
Infrastructure Development
Management & Stakeholder Activities

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2008 Ob ectives - Ex loration j p

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JV Basin Evaluation Studies

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► PEL 16

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30km 2D seismic

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► 1 conventional test well

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PEL 13

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Reprocessing interpretation

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30km 2D seismic

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Possible conventional/CSM well

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PEL 426

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85km 2D seismic

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Conventional/CSM well

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2008 Objectives – Reserves & Production

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► 2P the benchmark for contracting

2P Reserves Objective

► Continue working towards 660PJ target ► o Drilling program over only 10% f gross acreage

700 ► acreage 600 ► 500 Begin GIP analysis for PEL 13, program for identifying 3P,2P reserves

400 300

Certifying 1P reserves from trial production program

200 100 0

Understand long term resource delivery potential

Mid 08 Nov 07

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