For personal use only PETSEC ENERGY PETSEC ENERGY An Exploration - PowerPoint PPT Presentation

For personal use only PETSEC ENERGY PETSEC ENERGY An Exploration and Production Company An Exploration and Production Company USA and China USA and China The Good Oil Conference The Good Oil Conference Perth Perth 4-5 September, 2007 4-5 September, 2007 1

FORWARD STATEMENT DISCLAIMER For personal use only The information presented herein contains predictions, estimates and other forward looking statements that are subject to risk factors that are associated with the oil and gas business. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about the estimates of reserves, competition, government regulation and the ability of the company to meet its stated business goals. All references to dollars in this presentation are to US currency, unless otherwise stated. 2

Petsec Energy A growth exploration & production company For personal use only • Operations in the Gulf Coast & Gulf of Mexico, USA & Beibu Gulf China • USA - Current production of 18 Mmcfe/d - Petsec estimated 2P reserves of 33 Bcfe (June 2007) - Prospect inventory of 290 Bcf of gas & 30 MMbbl of oil • China - Petsec estimated 2P reserves of 3.6-4.6 MMbbl of oil - Prospect inventory of 5-8 MMbbl of oil • Market capitalisation of A$203 million (@ $1.32/share 30/08/07) 3

Areas of Operations For personal use only China USA Operations Office Sydney Head Office 4

USA – Gulf of Mexico and Gulf Coast For personal use only • 53 Offshore Leases - 18 Held by production • 2 Onshore Projects - Moonshine, Terrebonne Parish Terrebone Parish 5

Gulf of Mexico – Vast Infrastructure For personal use only • High oil & gas prices - ready market for discoveries • Highly productive area - leases readily available • Extensive Infrastructure: one land owner - Regulator, 1,141 oil & gas fields, 14,000 miles pipeline • Majors moving to deep water leaving opportunities for proven shelf acreage e.g. W&T Acquisition of KERR-McGEE SHELF 150 MMCFe/D & 330 BCFe MMS ESTIMATE GOM SHELF Remaining Proved Reserves 4,870 MMBO & 21.5 TCF 777 MMBO & 15.4 TCF Unproved Reserves 3,361 MMBO & 9.0 TCF 201 MMBO & 3.1 TCF 6

7 Lease Turnover Gulf of Mexico - For personal use only

Current US Gas Prices For personal use only • Petsec av. price received 1st Half 07: US$8.31/Mcfe US$8.31/Mcfe • Nymex: • Spot Price - seasonal low period: US$5.68/Mcf US$5.68/Mcf (at 30 Aug 07) • 12 month forward strip gas price: US$7.41/ US$7.41/Mcf Mcf (at 30 Aug 07) • 24 month forward strip gas price: US$7.80/ US$7.80/Mcf Mcf (at 30 Aug 07) US$/Mcf $16.00 $14.00 $12.00 $10.00 12mth strip, 3 year average $8.25 $8.00 $6.00 $4.00 $2.00 $0.00 3 3 3 2 0 1 1 1 2 5 4 2 1 1 0 9 7 5 5 1 3 -D -A 4 -J -A -J -O -F -M -A -N -F -A e p a u p e u o e c r-0 u c a n l-0 r-0 b g v b -0 g t-0 y -0 -0 -0 -0 -0 -0 -0 7 4 6 4 4 4 5 5 6 7 5 5 8

Natural Gas Production, Consumption, and Imports For personal use only History Projections 30 26.1 Tcf 25 Consumption 21% Net Imports 16% (trillion cubic feet) 20 20.5 Tcf Production Natural Gas Net Imports, 2005 and 2030 15 (trillion cubic feet) 7 6 2005 10 2030 5 4.5 4 3.0 3 2 5 0.9 0.6 1 0 Pipeline Liquefied Natural Gas 0 1960 1970 1980 1990 2000 2010 2020 2030 9 Source: EIA Annual Energy Outlook 2007

2007 Production For personal use only • Estimated 2007 Production of 7-7.5 Bcfe • Estimated 2007 operating cashflow of approximately US$40m* • Production fields - Vermilion 258 - Main Pass 18 - Main Pass 19 - Mobile Bay (from 4 th quarter) (*Assumes 2006 operating margin of US$5.50/Mcfe) Vermilion 258 Main Pass 19 Mobile Bay 952A 10

Mobile Bay 952A Platform For personal use only • May 2007 acquisition: – Mobile Bay 952A platform & pipelines – Mobile Bay 955 lease, pipelines & 1 producing well – Mobile Bay 953 lease & 2 producing wells – Net remaining reserves of 1.2 Bcfe • Host facility for production of discoveries at Mobile Bay 993, 994, 950, 951 & Viosca Knoll 26 - net capital savings of $2.0M • Consideration is assumption of abandonment liabilities - net cost of $1.8M 11

Mobile Bay 993, 994, 950 & 951 For personal use only 6” Sales Line Petsec Energy Petsec Energy IP Sales Rate 26.2 MMCFD 6” MO 950-1 Single Well IP Rate 5 MMCFD MO 953-1 6” MO 953-3 MO 951-1 Single Well IP Rate 4.2 MMCFD MO 952 A Host Platform Petsec Energy Petsec Energy 40 MMCFD Capacity MO 953-3 MO 993-1 6” Rate 5 MMCFD Single Well Remote Wells IP Rate 6 MMCFD IP Rate 21.2 MMCFD Total MO 994 A 4” 2 Wells MO994-2 IP Rate 3 MMCFD VK26-1 IP Rate 3 MMCFD 12

13 Petsec Energy IP Rate 9 MMCFD Single Well MO 829 Mobile Bay 873 6” To DIGP Sales Line Subsea Tie In For personal use only

Petsec - Focus Gulf of Mexico Joint Venture For personal use only • Exploration partnership targeting OCS lease sales with complimentary strengths – Petsec’s offshore operating expertise – Focus’s dedicated full-time prospect generation – Continued participation in 2007 and 2008 • 50% interest in 33 OCS lease blocks acquired mid-2006 – Continually being high graded – No mandatory commitment to drill – 3D seismic in house • 7 wells drilled to date – 6 completed, 1 dry hole – 16.2 Bcfe net reserves, F & D costs of $2.13/Mcfe • 29 undrilled prospects – 3 to 4 year drilling inventory – Risked target reserves of 165 Bcfe, projected F & D costs of $2.00/Mcfe 14

Petsec - Potential Production Profile Existing Reserves + Risked US Prospects For personal use only 140 120 100 MMcfe/day 80 60 40 20 0 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Vermilion 258 MP 19/18 Mobile China Onshore Focus Gas Focus Oil 15

Gulf Coast - Moonshine Exploration For personal use only 36 - 37.5% NRI Operator • West bank of Mississippi River, 50 miles west of New Orleans • 94 square mile area, only 25% cover with 2D seismic, no previous 3D seismic • Known productive area - 340 Bcfe gas, 7.3 MMbbl oil • 3D seismic programme completed in August 2005 • Drilling commenced April 2007 16

Moonshine Drilling For personal use only • Bowie Lumber #1 well encountered tight gas and not completed • Rig released and seismic to be reprocessed • Drilling potentially to resume in 4 th Quarter of 2007 17

Moonshine – Stearman/Dickel/Mooney For personal use only • Drilling to start 4 th Quarter 2007? • Test target 5-6 Bcfe net 18

Gulf Coast - Terrebonne Parish For personal use only • Acquisition of 20% interest & participation in 3 well program - Terrebonne Parish Louisiana • First well CL&F #28-1 - Plugged and abandoned on August 29, 2007 • Two remaining wells Triple Play & Greywolf to test: Targeted gross reserves - 52.7 Bcfe & 1.6 MMbbl ► Net reserve target - 7.9 Bcfe net to Petsec ► • Risk capital - US$ 5.8m - 3 wells • Total risk capital plus development for 3 wells - US$ 7.5m • Finding & Development costs < $1.00/Mcfe 19

20 Terrebonne Parish –Hollywood AVO Prospects A’ A For personal use only

LAGCOE – OCTOBER 23–25, 2007 For personal use only • Louisiana Gulf Coast Oil Exposition – Exhibits and technical sessions • Second largest oil and gas industry exposition in U.S. • Over 330 exhibiting companies displaying state of the art technology for onshore and offshore drilling, exploration, production and environmental protection • Held in Lafayette, Louisiana - Free admission with over 16,000 attendees from all over the world • Opportunity to learn about the U. S. oil and gas industry, visit with Petsec in the U.S., and go offshore in the Gulf of Mexico • Brochures are available at the Petsec booth 21

China – Beibu Gulf Block 22/12 For personal use only • Six oil field discoveries OIP of 300-400 MMbbl • Recoverable oil 32.5-65 MMbbl Petsec net 4-8 MMbbl • Development 6.12/6.12 South 19-27 MMbbl oil Petsec net 2.3-3.3 MMbbl • Exploration 4-6 wells test 40-60 MMbbl (5-7MMbbl net to 25% working interest (12.25% NRI, if CNOOC Petsec) Nov/Dec 2007 22 backs in for 51%)

23 6.12 South West Prospect For personal use only

China 6-12 South Oil Discovery For personal use only • 320 feet net hydrocarbon pay, including 270 feet net oil • Updip side-track - cores • Downdip side-track - downdip potential • Oil extends downdip beyond structural closure • Appraisal flow-test achieved 5,750 boe/day • Estimated reserves in the 6.12/6.12.S fields Gross: 19-27 MMbbl Net: 2.3-3.3 MMbbl 24