Annual Summary and Expenditure Report on Prospecting and Exploration The information in this form is required under regulations 38 and 41 of the Crown Minerals (Petroleum) Regulations 2007; specifically the items outlined in Parts 1 and 3 of Schedule 6. The permit holder must supply this information to New Zealand Petroleum & Minerals no later than 31 March following the end of each calendar year in which the permit was in force. Where information prescribed in this form (and the relevant data templates) exceeds that of the aforementioned regulations, those data are requested and must be supplied under section 90(3)(b) of the Crown Minerals Act(1991) as marked with an asterisk. If there is (or has) been production under the permit, please discontinue and complete the TEMPLATE r39 & r41 Report form, otherwise please follow the instructions outlined in the boxes and add or delete lines from tables as required. Name your template: PXY ZZZZZ ASR 2015 where X denotes the permit type prospecting (P), exploration (E) or mining (M); Y corresponds to licence (L) or permit (P); and ZZZZZ is the permit number. The completed form and any relevant attachments should be uploaded to New Zealand Petroleum & Minerals, at: https://permits.nzpam.govt.nz/aca/. Permit holder name and address Permit number Reporting period From To Prospecting Permit OR Exploration Permit Permit type 1 January 2015 31 December 2015 Operation name Please change dates if the permit was awarded after 1 January 2014 or if the permit ended before 1 December 2014. Document control Name Position Phone Email e.g. Corey Burgess Geologist 04 470 2342 Corey.burgess@mbie.govt.nz Part The applicable submission document (or part thereof) All Role Author, reviewer etc. Author Please note that there is a final sign off at document end. This list will be used for clarification of certain parts, if required. 2016 Version 1.00 Page 1 of 8 Data templates If a discovery has been made under the permit at any point in time, please complete TEMPLATE Resources and Reserves to report annual summary items 5 and 6. This includes: 5. Petroleum initially in place and gas initially in place estimates from— (a) a discovery; or (b) ongoing appraisal of a discovery. 6. Recoverable hydrocarbon resource or reserve estimates (stating the range of uncertainties) from— (a) a discovery; or (b) ongoing appraisal of a discovery. If well testing was conducted under the permit in 2014, please complete TEMPLATE Production Data to report annual summary item 10. This includes: 10. All cumulative, annual, and monthly oil, condensate (C5+), gas (methane and ethane), liquefied petroleum gas (propane and butane), and water production figures (by field) from any appraisal activities. If neither of the above conditions (discovery or well testing) applies to the permit, please ignore the attached templates and simply complete this form. Information to be included in annual report under regulation 38 on prospecting or exploration activities Field investigations and surveys 1. 2. All field investigations undertaken, including— (a) their location, nature, and purpose; and (b) the quality of the data obtained; and (c) any other relevant information. Any surveys undertaken in relation to the permit. Your response should include a summary of any geological, gravity, magnetic, geochemical surveys or literature reviews undertaken as either fieldwork or desktop studies. Please add any figures or diagrams you wish and refer to regulation 44 for additional guidance. Insert your response here. Seismic - acquisition 3. Any seismic surveys carried out in relation to the permit, including,— (a) if a two-dimensional survey, the total line kilometres acquired; or (b) if a three-dimensional survey, the total area surveyed and the grid size. Complete the tables below, please identify any multi-client data purchased for submission to the chief executive as 2016 Version 1.00 Page 2 of 8 part of the permits work programme by suffixing the survey name with (MC Data). 2D Total for two-dimensional surveys Acquired Insert survey name in the column below Permit total e.g. Cook Strait 2D (km) 0 300 Full Fold Acquired (km) 0 250 3D Total for three-dimensional surveys Insert survey name in the column below Permit total e.g. Cook Strait 3D Acquired (km) 0 300 Full Fold Grid Size Acquired (km) (m by m) 0 250 25 by 25 Additional information: Include additional information in the space below. Insert your response here Seismic - reprocessing 4. Any reprocessed geophysical data obtained, including the total line kilometres reprocessed. Complete the tables below. 2D Total for two-dimensional surveys Insert survey name in the column below Permit total e.g. Cook Strait 2D Reprocessed (km) 0 300 3D 2016 Version 1.00 Page 3 of 8 Total for three-dimensional surveys Insert survey name in the column below Permit total e.g. Cook Strait 3D Reprocessed (km 2 ) 0 300 Additional information: Include additional information in the space below. Insert your response here Reserves and resources 5. Petroleum initially in place and gas initially in place estimates 6. Recoverable hydrocarbon resource or reserve estimates (stating the range of uncertainties) If there has been a discovery under the permit, please complete the TEMPLATE Resources and Reserves Excel spreadsheet. If the permit contains multiple reservoirs, please provide values for each reservoir. Drilling activities 7. Any drilling activities, including, for each well,— (a) its name, number, and location; and (b) its spud, total depth, and rig release dates; and (c) the metreage drilled for exploration appraisal; and (d) the metreage, or additional metreage, of any development wells, including re-entry and sidetrack wells; and (e) the kick-off depth for any sidetrack wells. Complete the table below. If there have been more than five new wells (which includes any sidetracks), please duplicate the below table in its entirety in the space provided. 2016 Version 1.00 Page 4 of 8 Well Name Well type Exploration, Appraisal, Production or Injection Top hole latitude NZGD 2000 Top hole longitude NZGD 2000 Bottom hole latitude NZGD 2000 eg. Alpha-1 ST1 Exploration 41° 14' 53.78 174° 45' 00.32 41° 14' 53.50 Bottom hole longitude NZGD 2000 Spud date Total depth date Completion date Rig release date 174° 45' 00.68 1/02/2014 7/02/2014 14/02/2014 21/02/2014 Additional information: Include additional information in the space below. Insert your response here 2016 Version 1.00 Page 5 of 8 Reference Depth elevation reference Total Total (metres e.g., RKB, depth depth above Rotary (MAH) (TVD) Mean Sea Table Level) RKB 233 1800 1500 Target formation Mangahewa Formation Sidetrack kick-off Parent depth well (MAH) 300 Alpha-1 Additional information: Include additional information in the space below. Insert your response here Well-site activities 8. Any well-stimulation activities and well-workover activities, their purpose, and any testing done. Complete the tables below for any activities occurring in 2015. Workover activities Workovers Insert well name e.g. Alpha-1 Start* Purpose Outcome* Descale Flow increase of 2 barrels per day End* (dd/mm/yy) (dd/mm/yy) 1/03/2014 7/03/2014 Start* End* Depth* Formation* Mangahewa Formation (MAH) 1800 Additional information: Include additional information in the space below. Insert your response here. Stimulation activities Stimulation* Insert well name e.g. Alpha-1 2016 Version 1.00 Purpose* Outcome* Increase permeability Flow increase of 2 barrels per day (dd/mm/yy) (dd/mm/yy) 1/03/2014 7/03/2014 Depth* Formation* Mangahewa Formation (MAH) 1800 Page 6 of 8 Additional information: Include additional information in the space below. Insert your response here. Iwi engagement report 9. The iwi engagement report required under section 33C of the Act. Section 33C of the Crown Minerals Act 1991 states that every holder of a Tier 1 permit must provide to the Minister an annual report of the holder’s engagement with iwi and hapū whose rohe includes some or all of the permit area or who otherwise may be directly affected by the permit. The report should also note any engagement with or notification to iwi or hapū that has taken place as a requirement of any other legislation. The purpose of the report is to encourage engagement with relevant iwi and hapū in a positive and constructive manner and will enable NZP&M to monitor progress in this regard. It is intended to be a high level indication of how iwi engagement is progressing, not a detailed account of each transaction. Of course, sharing examples and details is welcomed, but not required. Your report should describe your engagement with iwi and hapū over the previous calendar year regarding permit activities. Where applicable, it should also note why there has not been any engagement. Please note the following points regarding the assessment of the report. NZP&M will monitor the engagement with iwi and hapū and this will be an agenda item in the annual review meetings NZP&M will assess whether the views of iwi and hapū are included in the report and will take into account any comments received from iwi and hapū NZP&M may discuss with iwi and hapū the outcome of the review of the report. Insert your response here. Well test figures 10. All cumulative, annual, and monthly oil, condensate (C5+), gas (methane and ethane), liquefied petroleum gas (propane and butane), and water production figures (by field) from any appraisal activities For each well, please complete all fields within the r39 Prod tab in the TEMPLATE Production Data Excel spreadsheet. The information in the r39 Prod tab is requested, however, operators are only obliged to supply the information under the r38 Test tab. 2016 Version 1.00 Page 7 of 8 Information to be included in annual report under regulation 41 on expenditure incurred under permit Expenditure Information to be included in annual report under regulation 41 on expenditure incurred under permit Complete the tables below where the figures are in NZD and inclusive of GST. Activity Exploration drilling Including any re-entries and side-tracks Appraisal drilling Including any re-entries and side-tracks Development drilling Including any re-entries and side-tracks Expenditure $NZD 4 Seismic reprocessing $ 5 Seismic acquisition This includes the licencing of any multi-client data $ 6 Geological and geophysical technical analyses $ 1 2 3 7 8 Permit administration Such as annual fees, application fees, and general administration Environmental regulation This includes costs associated to any resource/marine consent application and subsequent conditions, as well as other environmental administration $ $ $ $ $ 9(a) Operating expenditure for well testing activities* $ 9(b) Capital expenditure for well testing activities* $ All amounts should be entered in $NZ (GST included). Include permit fees and unattributed time in permit admin and any planning time/costs with the related activity. Declaration I declare that any information provided in this submission is true and correct to the best of my knowledge and that I am authorised to make this submission on behalf of the permit participant(s). Print name: Position: Company: Date: 2016 Version 1.00 Page 8 of 8