WA-351-P

The operator completed a detailed assessment of the plays, prospects and leads in the permit in 2010 including the 3D seismic acquired in 2008. Over 10 gas leads and prospects were defined in the Triassic Mungaroo Formation.

Additional leads have been identified in WA-351-P in the Jurassic and Early Cretaceous, both of which are productive elsewhere in the Carnarvon Basin. Current indications are that this shallower potential is larger, but higher risk, than the Triassic in this permit. Further work will be done on these objectives.

The Tallaganda-1 prospect straddles both the WA-351-P and WA-335-P permits and was designed to test the gas potential of sandstones in the prolific Triassic age, Mungaroo Formation. This is the primary play type of the gas prolific North West Shelf.

On 1 March 2012 the Tallaganda-1 well commenced drilling in WA-351-P. The well was drilled to a final total depth of 4,365 metres MDRT and the rig released on 26 April 2012. Three cores were cut over the target from 3,879 to 4,009 metres with 100% recovery achieved for all cores. A comprehensive suite of wire line logs including formation image logs, a wire line pressure survey and formation fluid sampling program were acquired in the well.

The preliminary analysis of the wire line log data and the recovery of gas from wire line sampling have confirmed a gas discovery in the Mungaroo Formation. The preliminary interpretation of the well data confirms that reservoir quality over the gas bearing interval penetrated in the well is variable at this location on the Greater Tallaganda Structure.