Gold Coast Resources Showcase - - June 2007 June 2007 Gold Coast - PowerPoint PPT Presentation

Gold Coast Resources Showcase - - June 2007 June 2007 Gold Coast Resources Showcase

� � Target Energy Limited is an Oil and Gas Exploration and Producti Target Energy Limited is an Oil and Gas Exploration and Production Company on Company based in Perth, Western Australia based in Perth, Western Australia � � Target listed on the ASX on 27 November 2006 with the stock code: : TEX TEX Target listed on the ASX on 27 November 2006 with the stock code � � 68 million shares are currently on issue along with 34,000,000 25c options 5c options 68 million shares are currently on issue along with 34,000,000 2 � � Cash position at 31/4 was approx A$6.6 million Cash position at 31/4 was approx A$6.6 million � � We have fully funded drilling campaigns underway in both Texas and Louisiana nd Louisiana We have fully funded drilling campaigns underway in both Texas a � � We have had 3 discoveries in our first four wells We have had 3 discoveries in our first four wells � � Our first discovery, Thoroughbred, commenced production on 5 June e Our first discovery, Thoroughbred, commenced production on 5 Jun

Target’ ’s Methodology s Methodology Target � � Target identified proven, productive areas in USA with substantial Target identified proven, productive areas in USA with substanti al infrastructure infrastructure � � In those areas, Target then selected proven, experienced operators with good rs with good In those areas, Target then selected proven, experienced operato track record track record � � From Operator’ ’s prospect inventories, Target then selected best prospects s prospect inventories, Target then selected best prospects - - all all From Operator mapped on 3D seismic mapped on 3D seismic � � Substantial infrastructure will fast- -track production to delivery early cash flow track production to delivery early cash flow Substantial infrastructure will fast � � Potential 100% reserves: 3.6 million barrels oil, 341 billion cubic feet gas bic feet gas Potential 100% reserves: 3.6 million barrels oil, 341 billion cu equivalent equivalent

Experienced Board and Management Experienced Board and Management Didier Murcia, B.Juris B.Juris, LLB , LLB – – Chairman (Non Executive) Chairman (Non Executive) Didier Murcia, • Senior Partner of Murcia Pestell Hillard, leading Perth legal fi • Senior Partner of Murcia Pestell Hillard, leading Perth legal firm. rm. • Honorary Consul for the United Republic of Tanzania in Western A Honorary Consul for the United Republic of Tanzania in Western Australia ustralia • • Director of Aminex PLC, (listed on the London Stock Exchange), G • Director of Aminex PLC, (listed on the London Stock Exchange), Gryphon Minerals Limited and Gindalbie Metals Limited ryphon Minerals Limited and Gindalbie Metals Limited (listed on the ASX). (listed on the ASX). Laurence Roe, B.Sc B.Sc – – Managing Director Managing Director Laurence Roe, • Petroleum Petroleum explorationist explorationist - - over 25 years experience in Australian and international projec over 25 years experience in Australian and international projects. ts. • • Former Exploration Manager, Magellan Petroleum Australia • Former Exploration Manager, Magellan Petroleum Australia • Former Managing Director and Exploration Manager of Bounty Oil & Former Managing Director and Exploration Manager of Bounty Oil & Gas. Gas. • • Experience encompasses Australia, USA, NZ, Africa, Canada, Indon • Experience encompasses Australia, USA, NZ, Africa, Canada, Indonesia, Belize and Argentina. esia, Belize and Argentina. Michael Martin, Michael Martin, B.Sc B.Sc (Hons) (Hons) – – Director Director • Petroleum exploration geologist Petroleum exploration geologist – – over 25 years experience over 25 years experience • • Co Co- -founder of Flare Petroleum N.L. founder of Flare Petroleum N.L. • • Former director of Canadian listed Chariot Resources Ltd and Fra • Former director of Canadian listed Chariot Resources Ltd and Franklin Resources Ltd nklin Resources Ltd • Experience in Australia, Middle East, Western Mediterranean, Nor Experience in Australia, Middle East, Western Mediterranean, North Sea, USA th Sea, USA. . • Paul Lloyd, B.Bus B.Bus CA CA – – Non Executive Director, Company Secretary Non Executive Director, Company Secretary Paul Lloyd, • Chartered Accountant with over 20 years commercial experience • Chartered Accountant with over 20 years commercial experience • Executive Chairman Executive Chairman – – Beacon Minerals Limited Beacon Minerals Limited • • Former General Manager of Finance at • Former General Manager of Finance at DrillCorp DrillCorp Ltd. Ltd. • Extensive experience in the resource industry in Australia and A • Extensive experience in the resource industry in Australia and Africa frica

What we do… Oil and Gas Oil and Gas Exploration & Production Exploration & Production

We drill in active, prospective regions We drill in active, prospective regions Target Louisiana Target Louisiana Target Louisiana Operations Operations Operations Target Texas Target Texas Target Texas Operations Operations Operations USA Oil & Gas Production (courtesy USGS) USA Oil & Gas Production (courtesy USGS)

…with an active (and successful) drilling schedule with an active (and successful) drilling schedule … Target Target Estimated Timing Estimated Timing Prospect Prospect Location Location Working Working Interest^ Interest^ Sub- -commercial gas commercial gas Sub Dec 06 Kant Texas 25% Dec 06 Kant Texas 25% shows shows Discovery – – now on now on Discovery Mar 07 Thoroughbred Texas 25% Mar 07 Thoroughbred Texas 25% production production Apr 07 Snapper A- -1 1 Louisiana 25% Discovery Apr 07 Snapper A Louisiana 25% Discovery June 2007 Garwood Texas 25% Discovery June 2007 Garwood Texas 25% Discovery Q3 2007 Snapper A- -2 2 Louisiana 25% Q3 2007 Snapper A Louisiana 25% Q3 2007 Q3 2007 Bayou Berard Bayou Berard Louisiana Louisiana 15% 15% Q3 2007 Q3 2007 Parks North Parks North Louisiana Louisiana 10% 10% Q3 2007 Berwyn Louisiana 10% Q3 2007 Berwyn Louisiana 10% ^Subject to finalisation of farm-in and/or unitisation agreements MCF = Thousand cubic feet MCF = Thousand cubic feet MMB = Million Barrels MMB = Million Barrels MMCF = Million Cubic feet MMCF = Million Cubic feet BCF = Billion cubic feet BCF = Billion cubic feet

Portfolio Portfolio Potential Potential Net Potential Potential Net Recoverable Target Value Recoverable Prospect Target Value Reserves A$ cents per Reserves A$ cents per share (Unrisked) share (Risked) Thoroughbred 1.3 Bcf 2 0.6 Bcf 1 � Discovery Thoroughbred 1.3 Bcf 2 0.6 Bcf 1 � Discovery 17 cps 17 cps 14 cps 14 cps 17 cps 14 cps 0.61 mmBO mmBO 0.61 0.61 mmBO 0.61 mmBO � Discovery Snapper A1 Snapper A1 11 11 11 11 � Discovery 2.25 Bcf 2.25 Bcf 2.25 Bcf 2.25 Bcf � Discovery � Discovery Garwood Garwood 3 Bcf 3 Bcf 4 4 1 Bcf 1 Bcf 2 2 1 mmBO 1 mmBO 0.77 mmBO 0.77 mmBO Snapper A2 Snapper A2 15 15 12 12 1.45 Bcf 1.1 Bcf 1.45 Bcf 1.1 Bcf 1.8 mmBO 1.8 mmBO 0.9 mmBO 0.9 mmBO Bayou Berard Bayou Berard 15 15 7 7 0.72 Bcf 0.4 Bcf 0.72 Bcf 0.4 Bcf 25.7 Bcf 25.7 Bcf 16.5 Bcf 16.5 Bcf Parks North Parks North 47 47 47 47 0.15 mmBO mmBO 0.10 mmBO mmBO 0.15 0.10 Berwyn Berwyn 305 Bcfe 305 Bcfe 163 163 115 Bcfe 115 Bcfe 62 62 Total A$ per share Total A$ per share $2.57 $2.57 $1.42 $1.42 MCF = Thousand cubic feet; MMCF = Million Cubic feet; BCF = Billion cubic feet illion cubic feet MCF = Thousand cubic feet; MMCF = Million Cubic feet; BCF = B MMB = Million Barrels MMB = Million Barrels Assumptions: 68 million shares on issue Oil netback is US$40/barrel. Gas netback is US$4/mcf. A$/US$ exchange rate is $0.80c. Unrisked figures are operators upside estimates and represent total prospect or field potential – additional drilling may be required to fully recover reserves. All figures are best estimates only and may vary.

“Company Company- -maker maker” ” Program Program “ Deep Gas & Condensate Deep Gas & Condensate Inland waters, Louisiana Inland waters, Louisiana Berwyn Berwyn Berwyn Berwyn Prospect Berwyn Prospect Operator: Pogo Producing Operator: Pogo Producing Target’ Target ’s WI s WI - - 10% 10% The operator, Pogo Producing Company, will keep a 50% interest in Berwyn. Berwyn will drill to 15,800 ft (4,815m), targeting up to 305 Bcfe rec gas. It is a deeper pool test of an existing 68 Bcf field (Pierre Pass). Pogo Producing Company is a US$2.7 billion company listed on the Pogo Producing Company is a US$2.7 billion company listed on the Discovery can be brought New York Stock Exchange. New York Stock Exchange. onstream as early as 60 days Pogo explores for, develops and produces oil and natural gas. It has Pogo explores for, develops and produces oil and natural gas. It has from completion. extensive acreage in major oil and gas provinces in North America, a, extensive acreage in major oil and gas provinces in North Americ with interests in New Zealand and in Vietnam. with interests in New Zealand and in Vietnam.