Third Party Gas

In 2005, Tap secured an option over approximately 33 PJ (31 Bcf) of gas from the John Brookes field offshore Western Australia at then current market prices. The option was exercised in 2007 and Tap on-sells the gas to a number of Western Australian gas customers under long term contracts. The gas is purchased at a fixed 2005 price and sold at fixed prices approximately three times higher. Both buy and sell prices are denominated in Australian dollars and subject to CPI escalation. This gas is largely contracted and provides substantial stable, long-term cash flow.

Forecast third party gas revenues are expected to be sustained at around $30 million per annum until the end of 2016, generating substantial cash flow.