Zola Discovery

WA-290-P

WA-290-P is an exploration permit in the offshore Carnarvon Basin, Western Australia. The permit contains the large Zola-1 gas discovery drilled in early 2011.

The Greater Zola Structure comprises several fault blocks along the Alpha Arch, south of the giant Gorgon gas field. A single fault block was tested by Zola-1 (the Zola fault block) and Independent Expert, RPS, has assigned a mean Contingent Sales Gas Resource of 378 Bcf (1C to 3C range between 209 Bcf to 584 Bcf). RPS has assigned mean Prospective Resources to the other undrilled fault blocks of 2.3 Tcf (range between 1.5 Tcf and 2.3 Tcf).

In its report, RPS assigned POS of 62% and 58% to the large Central and Eastern Fault Blocks respectively. The high POS are a result of the two fault blocks being contained in a well-defined structural horst, updip from a significant discovery well (Zola-1).

Processing of the Cambozola 3D seismic survey continued during 2012. Interpretation of the data will determine the selection of the next well in the permit.

Located close to existing and developing gas infrastructure, Zola could have multiple potential development options. Any development at Zola could also encompass the overlying Antiope gas discovery which is not included in the above estimates.

NOTE: The Zola reserve and resource information is based on information compiled by Mr David Guise (Managing Director – Consulting) of RPS Australia Asia Pacific. Mr Guise is a registered Professional Engineer with over 30 years of domestic and international petroleum engineering and operating experience in both onshore and offshore environments. He has substantial experience and knowledge of field development planning, production optimisation and reserve estimation, as well as new venture identification and evaluation. Mr Guise holds a Diploma of Technology (Petroleum Technology) from the Southern Alberta Institute of Technology and a B.Sc. in Petroleum Engineering from the University of Wyoming. Mr Guise is not a full-time employee of the Company, and has consented to the inclusion of such information in this report in the form and context in which it appears.