2013
Grahame Baker
RLMS
9/13/2013 https://www.rlms.com.au/
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RLMS
RLMS
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RLMS has undertaken a compilation of the conventional natural gas reserves and resources for Eastern Australia at 31 December 2012. The information on the gas reserves and resources has been compiled from ASX releases by companies, company presentations and brochures and information provided by Government agencies. The conventional gas reserves resources at 31 December 2012 have been collated on a company as well as on a sedimentary basin basis.
Conventional natural gas is that recovered from sandstone, carbonate or shale reservoirs either as methane and ethane with associated heavier hydrocarbons or as a co-product recovered from liquid petroleum production. The natural gas is normally treated to recover ethane, LPG and condensates as well as for the removal of sulphur compounds and inerts such as carbon dioxide and sometimes nitrogen. The gas is dried to remove water before being sent by pipeline to market. Conventional natural gas does not include methane recovered from coal measures such as coal seam gas, coal mine methane or biogas. However gas reserves and contingent resources from other forms of unconventional gas such as tight gas from low permeability conventional sandstone or carbonate reservoirs and carbonaceous shales have been included in this analysis. Unconventional tight gas from deep coals has also been included in this analysis as it is usually reported along with, or aggregated, with those reported for tight conventional reservoirs and shale gas from carbonaceous shales.
Most companies, as well as many Government agencies, currently only report conventional gas reserves as 2P [proved plus probable] reserves. There is generally limited public information available on 1P, 3P reserves or on contingent and prospective resources though in recent years, more companies are announcing their independently audited contingent resource numbers, mostly as 2C contingent resources. Where they are published, they have been included in this document.
From 1 December 2013, the Australian Securities Exchange [ASX] is introducing new reporting requirements for petroleum companies under the ASX Listing Rules. The new rules provide for more comprehensive and specific reporting requirements of reserves, contingent resources and prospective resources as well as well as oil and gas production and exploration and development activities.
The reserve and resource numbers used in this compilation, and those required to meet the new ASX reporting requirements from 1 December 2013, are those meeting the criteria of the
Petroleum Resource Management System [PRMS] of the Society of Petroleum Engineers Inc.
The reserves are reported in Petajoules [PJ]. Where companies have reported reserves in standard cubic feet, they have been converted from a volumetric to an energy basis where one billion cubic feet [1 Bcf] equals 1.05 PJ. Where gas reserves and resources have been reported in barrels of oil equivalent [boe] units, the conversion factor of 6.15 PJ equaling one million boe or mmboe has been used.
Eastern Australia in this report relates to Queensland, New South Wales, Victoria, South
Australia and Tasmania. Each of these States and Territory is interconnected through the
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eastern Australian pipeline grid. Both onshore and offshore gas reserves and resources are covered.
The estimates of the 2P reserves of natural gas within conventional gas reservoirs by Basin at
31 December 2012 are given in the following Table 1
Table 1
Eastern Australia - 2P Reserves for Conventional Natural Gas by Basin
31 December 2012
[PJ]
Basin
Adavale
Bass
Bowen
Cooper-Eromanga
Gippsland
Gunnedah
Otway
Surat
Total
Company
AGL Energy
APLNG
AWE
Beach Energy
Benaris
BHP Billiton
CalEnergy
Drillsearch Energy
Energy World Corp
ExxonMobil
Mitsui E & P
Nexus Energy
Origin Energy
Santos
Toyota Tsusho
Others
Total
2P Reserves Percentage
21 0.3
245
74
1,835
3,890
0
720
66
3.6
1.1
26.8
56.8
0.0
10.5
0.9
6,851 100.0
Details of the 2P conventional gas reserves by Company are provided in Table 2.
Table 2
Eastern Australia
Conventional Natural Gas Reserves and Resources by Company
31 December 2012
[PJ]
2P Reserves 2C Resources
33
1,770
51
122
621
1,589
28
12
61
37
164
345
122
1,830
22
44
-
-
29
102
159
2,403
40
1,167
-
-
192
2,533
-
-
-
100
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Table 3 outlines the conventional natural gas 2P reserves by State.
Table 3
Eastern Australia
Conventional Natural Gas 2P Reserves by State
31 December 2012
[PJ]
State
Queensland
New South Wales
Victoria
South Australia
Tasmania
Total
2P Reserves
533
0
4,610
1,463
245
6,851
Percentage
7.7
0.0
67.3
21.4
3.6
100.0
Adavale Basin
Australian Gas Fields Limited, a wholly owned subsidiary of Energy World Corporation
Limited [EWC], is the owner and operator of the shut in Gilmore Gas Field [PL 65]. The remaining 2P natural gas reserves at Gilmore at 30 June 2012 were 21 PJ as reported by EWC in its 2012 Annual Report released on 14 September 2012. There has been no production at
Gilmore for some years nor revisions or additions to the gas reserves. Accordingly the 2P gas reserves at 31 December 2012 are 21 PJ.
Sentry Petroleum Limited of Denver, Colorado, USA has recently taken action to finalize its acquisition of a 93% interest in ATP’s 862P, 864P, 865P and 866P covering a significant part of the Adavale Basin, but excluding the Gilmore Gas Field. Sentry is undertaking an exploration program initially focusing on CSG recovery from the Winton Coals in the
Eromanga Basin which overlies the Devonian Adavale Basin. Sentry has estimated that its tenement areas contain a conventional 2C contingent gas resource of 17 PJ within the deeper
Adavale section.
The initial gas resource for the Adavale Basin, based on the Gilmore and Log Creek accumulations, was given in 1987 by the then Bureau of Mineral Resources [now Geoscience
Australia] as 5.3 x 109 m3. This equates to 198 PJ. [Ref: S Miyazaki and S Ozimic,
Australian Petroleum Accumulations Report 4, Adavale Basin, Queensland, BMR 1987].
Bass Basin
The only independently audited conventional natural gas reserves in the Bass Basin are related to the offshore Bass Gas Project based on the Yolla Gas Field [T/L1] and its satellites
[T/18P] which are located in Tasmanian Waters in Bass Strait. In addition to natural gas,
Yolla contains a commercially important condensate resource.
Origin Energy has a 42.50% interest in the producing Yolla Project with AWE Limited having a 46.25% interest and Toyota Tsusho Gas E & P holding the remaining 11.25% interest. Origin Energy is the operator of the Bass Gas Project.
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In its 2012 Annual Reserves Report of 31 July 2012, Origin reported that its share of the remaining 2P natural gas reserves at Yolla were 106 PJ. This gave the field, at 30 June 2012, gross 2P conventional gas reserves of 249 PJ and total 2P petroleum reserves of 343 PJe.
From 1 July 2012 to 31 December 2012, gross gas production at Yolla was 3.8 PJ after the field was re-commissioned on 12 October 2012 following being shut in for a mid-term refit.
This gives Yolla a remaining 2P gas reserve at 31 December 2012 of 245 PJ.
AWE Limited in its Reserve Statement in its 2012 Annual Report released on 19 October
2012 reported that its net 2P gas reserves for Bass Gas at 30 June 2012 were 115.5 PJ. With a
46.25% interest in Yolla, his confirmed the gross 2P gas reserves for Bass Gas at 30 June
2012 were 249 PJ.
Based on AWE information in its 2012 Reserve Statement on the overall petroleum resource at Yolla, the estimated gross 2C gas resource for Bass Gas is 152 PJ.
The nearby Trefoil, White Ibis and Rockhopper Fields and the Gentoo Prospect [T/18P] which are planned to be developed and connected to the Yolla production platform contain an estimated 2C gas resource of 208 PJ. Origin Energy, the operator, has a 39.0% interest in
Trefoil/White Ibis/ Rockhopper/Gentoo fields and prospects with AWE having a 44.75% interest and Toyota Tsusho having 11.25%. Drillsearch Energy, through its Acer Energy subsidiary, holds the remaining 5.0% interest
The distribution of the conventional gas reserves and resources for the Bass Gas Project and the Bass Basin are given in Table 4.
Table 4
Eastern Australia
Conventional Natural Gas Resources and Reserves – Bass Basin
31 December 2012
[PJ]
Company
AWE
Origin
Toyota
Tsusho
Drillsearch
%
46.25
42.5
11.25
T/L1
2P
113
104
28
2C
70
65
17
%
44.75
39.0
11.25
T/18P
2C
94
81
23
Total 2C
164
146
40
- - - 5.0 10 10
Total 245 152 208 360
References: Origin Energy-2012 Reserves Statement-31 July 2012, Origin Quarterly Production Reports, 31 October 2012 and 31 January
2013
AWE-2012 Annual Report-19 October 2012
The 2P + 2C for Yolla [T/L 1] equals 397 PJ while the total 2P + 2C for the Bass Basin at 31
December 2012 was 605 PJ.
Bowen Basin
The only posted conventional gas reserves in the Bowen Basin are in the Denison Trough where the gas fields are owned 50% each by APLNG and Santos Limited. Origin Energy, on behalf of APLNG, is the project operator. Gas is delivered into the Queensland Gas Pipeline
[Jemena] from the Rolleston and Yellowbank Gas Treatment Plants. The north Denison
[Rolleston] gas fields were off-line for most of 2012 for field re-working.
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In its 2012 Annual Reserves Statement of 31 July 2012, Origin Energy stated that the APLNG
50% share of the remaining conventional gas reserves in the Denison Trough Gas Fields amounted to 38 PJ of 2P reserves and 54 PJ of 3P reserves. Likewise, Santos’ share of the
Denison Trough gas reserves is the same. Gross gas production from Yellowbank for the period 1 July 2012 to 31 December 2012 totalled 2 PJ.
The 2P conventional gas reserves in the Denison Trough at 31 December 2012 are outlined in
Table 5.
Table 5
Eastern Australia
Conventional Natural Gas Reserves – Bowen Basin
31 December 2012
[PJ]
Participant
APLNG – 50%
Santos – 50%
2P
37
37
3P
53
53
Total 74 106
Reference: Origin Energy-2012 Annual Reserves Statement, 31 July 2012.
Origin Energy: Quarterly Production Reports, 31 October 2012 and 31 January 2013
Cooper-Eromanga Basin.
The bulk of the currently posted 2P gas reserves in the Cooper Basin and the overlying
Eromanga Basin is held by the Cooper Basin Joint Venture [CBJV] comprising Santos
Limited, Delhi Petroleum [Beach Energy Limited] and Origin Energy Limited. Each of these companies in their latest reserve announcements and Annual Reports report their share of the
2P conventional gas reserves though at different times. Each company publishes details of its gas production on a quarterly basis [Quarterly Activity Reports] enabling estimates of the 2P gas reserves held by the CBJV to be made for a given date
The net 2P gas reserves for Santos in its Cooper Basin permit areas at 31 December 2012 were outlined by the Company in its 2012 Reserves Report announced on22 February 2013.
The 2P conventional gas reserves at 31 December 2012 were 1,213 PJ.
In addition to the 2P conventional gas reserves, Santos has booked 2,345 PJ of 2C contingent gas resources in its Cooper-Eromanga Basin permits. These are mostly unconventional gas as illustrated in table 6 below:
Table 6
Santos-Unconventional Gas Resource - Cooper Basin
31 December 2012
[PJ]
Gas Source
REM Shale Gas
Tight Sands
Deep Coal
2C Contingent
Resource
684
1,075
586
Total
Reference: Santos-Preserntation, 5 October 2012
2,345
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The estimated 2P gas reserves for Beach Energy, including that for its wholly owned subsidiary Delhi Petroleum Limited, are derived from the 2P conventional gas reserves at 30
June 2012 published on 28 August 2012 in the Company’s 2012 Full Year Report. Beach’s net gas production for the six months to 31 December 2012 was 10.9 PJ giving the company net 2P gas reserves at the end of 2012 of 345 PJ. All of Beach’s 2P gas reserves at 31
December 2012 of 345 PJ are conventional gas within the Cooper-Eromanga Basin other than for 0.3 PJ in its US shale gas interests.
In addition to its 2P reserves of 345 PJ of conventional gas in the Cooper Basin, Beach
Energy has a significant contingent gas resource [2C] in its conventional petroleum interests and in its unconventional gas accumulations. The unconventional gas includes shale gas, and other resources such as deep coals and very tight conventional reservoirs. These 2C contingent gas resources at 30 June 2012 totaled 2,533 PJ are within the Cooper Basin. In addition, Beach Energy has reported other 2C contingent gas resources of 134 PJ. The location of these other 2C gas resources has not been stated by Beach but is understood to relate to its US shale interests. There have been no announced changes to Beach’s contingent gas resources between 1 July 2012 and 31 December 2012.
The 2C contingent gas resources held by Beach Energy at 31 December 2012 are shown in
Table 7.
Table 7
Beach Energy-Contingent Gas Resource-Cooper Basin
31 December 2012
[PJ]
Gas Source 2C Contingent
Resource
Conventional Reservoirs
Unconventional Reservoirs
638
1,895
Total 2,533
Reference: Beach Energy-2012 Annual Report, 28 August 2012
Origin Energy in its 2012 Annual Reserves Statement of 31 July 2012 advised that its net 2P conventional gas reserves in the Cooper-Eromanga Basin at 30 June 2012 were 227 PJ.
Details are outlined in Table 8:
Table 8
Origin Energy-2P Gas Reserves-Cooper Basin
30 June 2012
[PJ]
Gas Source
SA Cooper
QLD Cooper
2P Gas Reserves
169
58
Total 227
Reference: Origin Energy-2012 Annual Reserves Statement, 31 July 2012.
From its Quarterly Production Reports of 31 October 2012 and 31 January 2013, Origin reported net gas production of 6.1 PJ for its Cooper Basin tenements. No additions or adjustments to the company’s net Cooper Basin reserves were reported in the period between
1 July 2012 and 31 December 2012. Thus the net 2P gas reserves held by Origin Energy at 31
December 2012 were 221 PJ.
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Origin has not reported any figures for contingent resources in its Cooper-Eromanga tenement interests.
Drillsearch Limited has independently audited conventional gas reserves and resources in the
Cooper-Eromanga Basin. Details of the gas reserves and resources held by Drillsearch at 31
December 2012 are given in Table 9. The reserves and resources are only reported in mmboe.
However the gas reserves and resources held by Drillsearch are in its Wet Gas permit areas in the Western Flank of the Cooper Basin where the liquids content of the raw wet gas stream has been reported by the company as approximately 100 bbls per million scf. Based on the energy conversions that 5,850 scf equals one boe, and that one mmscf equals 1.05TJ of gas enables the gas [and liquid] reserves to be estimated.
Table 9
Drillsearch Limited
Net Conventional Natural Gas Reserves and Resources-Cooper Basin
31 December 2012
Reserve/Resource
1P
2P
3P
1C
2C mmboe
4.2
11.5
19.2
8.5
23.7
3C 64.1
Ref: Drillsearch ,Presentation 25 February 2013
Gas Content [PJ]
16
44
73
33
90
244
The 2P + 2C net gas reserves and resources held by Drillsearch in its Western Flank Wet Gas permit areas was 35.2 mmboe comprising 134 PJ of gas and 13.0 mmbbl of liquids.
Energy World Corporation Limited [EWC] reported in its 2012 Annual Report [14 September
2012] that its wholly owned subsidiary, Australian Gas Fields Limited, had 2P reserves of 12
PJ in PL 115 [Bunya – 9.6 PJ] and PL 116 [Cocos – 2.4 PJ].
The total 2P conventional natural gas reserves for the Cooper-Eromanga Basin at 31
December 2012 are shown in Table 10.
Table 10
Cooper-Eromanga Basin
Conventional Natural Gas Reserves and Resources
31 December 2012
[PJ]
Company
Beach Energy
Drillsearch
Energy World Corp
Origin Energy
Santos
Total
2P
345
44
12
221
1,213
1,835
2C
2,533
90
-
-
2,345
4,968
2P + 2C
2,878
134
12
221
3,558
6,803
The total 2P reserves for conventional natural gas in the Cooper-Eromanga Basin at 31
December 2012 were 1,835 PJ while the 2C contingent resource was 4,968 PJ.
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Gippsland Basin
The conventional gas reserves in the Gippsland Basin are all in offshore south east Victoria.
Some of the contingent gas resources of the Gippsland Basin are onshore with the balance being offshore. The gas reserves and resources associated with the Gippsland Basin are generally associated with reservoirs containing a mixture of oil, condensate and LPG.
The largest gas reserves in the Gippsland Basin are held by the Gippsland Basin Joint Venture
[GBJV], a 50/50 joint venture between ExxonMobil and BHP Billiton. ExxonMobil is the operator. Nexus Energy operates the Longtom Gas Field and has modest gas reserves. Santos has a 35% interest in the gas reserves in the Kipper Field with the balance being held by the
GBJV with ExxonMobil as the project operator.
The Longtom Project of Nexus Energy [100%] processes its gas and condensates through
Santos’ Patricia-Baleen facilities. Nexus reported 2P gas reserves at Longtom as 137 PJ at 31
December 2011 [Nexus ASX announcement of 14 March 2012]. At the same time, Nexus reported that the 2C contingent gas resource at Longtom was 102 PJ. Nexus Energy has reported that gas production at Longtom for the 12 months to 31 December 2012 was 15.1 PJ with no additions or adjustments being announced since the last reserves report. This gives the remaining 2P gas reserves at Longtom at 31 December 2012 at 122 PJ.
Santos has a 35% interest in the gas reserves and resources of the Kipper gas and condensate field. ExxonMobil reported [13 November 2012] that Kipper has 2P gas reserves of 620 Bcf
[650 PJ]. Santos share of these gas reserves is 228 PJ.
Neither ExxonMobil nor BHP Billiton Petroleum publish specific details of the gas reserves they hold in the Gippsland Basin. Their gas reserves information for the Basin is aggregated with gas reserves in other Australian sedimentary basins.
The Victorian Department of Primary Industry in its 2010-2011 Statistical Review of June
2012 gives the remaining gas 2P gas reserves for the GBJV at 30 June 2011 as 94.00 Gm3
[Table 2.2.7]. This is equivalent to 3,486 PJ. Advice from the Department was that this reserve figure does not include that in the Kipper Gas field which has gross 2P gas reserves of
650 PJ and net of 422 PJ to the GBJV.. This gives the total 2P gas reserves held by the GBJV at 30 June 2011 of 3,908 PJ. The gas production from the 1 July 2011 to 31 December 2012 was 374 Bcf or 336 PJ. As there have been no recent announcements about gas reserve additions or adjustments, the 2P gas reserves held by the GBJV at 31 December 2012 are estimated to be 3,572 PJ using the Victorian DPI figures.
An alternative, and more recent, estimate of the gas reserves in the Gippsland Basin is in the
2012 GSOO. This document reports the 2P gas reserves for the Gippsland Basin at 31
December 2011 as 4,153 PJ. The breakdown of these reserves is shown in Table 11.
Table 11
Gippsland Basin – 2P Conventional Gas Reserves
31 December 2011
[PJ]
Company
GBJV
Nexus
Santos
Total
Ref: 2012 GSOO
2P Gas Reserves
3788
137
228
4,153
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Adjusting for the production of 248 PJ from the GBJV and 15 PJ from Longtom over calendar year 2012, the remaining 2P conventional gas reserves in the Gippsland Basin at 31 December
2012 is estimated using 2012 GSOO as the basis as 3,890 PJ.
In this conventional reserves and resources report, the more recent 2012 GSOO numbers for the Gippsland Basin have been used to estimate the 2P conventional gas reserves at 31
December 2012. These reserves, by participant are given in Table 12.
Table 12
Gippsland Basin - 2P Conventional Gas Reserves
31 December 2012
[PJ]
Company
BHP Billiton
ExxonMobil
Nexus
Santos
Total
2P Gas Reserves
1,770
1,770
122
228
3,890
Although the GBJV does not publish details of its conventional contingent gas resource, it is considered to be very large and well in excess of its current level of 2P gas reserves. Current estimates put it at least 10,000 PJ
The 2P gas reserves for the shut in Basker-Manta-Gummy (BMG) Field operated by ROC Oil were written down by the BMG project participants in November 2010 from 249 PJ to zero pending a detailed review of the geological structure of the Field and a re-assessment of its potential productivity. They remain at zero.
The Golden Beach Project of Cape Energy has been reported to have 35 PJ of 2P gas reserves
[Victorian Department of Primary Industries, Oil and Gas Activity Statement, 12 September
2008]. However as Golden Beach is not connected to any of the Gippsland Basin gathering systems, the gas prospect does not meet the PRMS commerciality test and the 35 PJ has been reclassified as a 2C contingent resource.
Some 2C contingent gas resources have been reported for the Gippsland Basin. These include
35 PJ at Golden Beach, 102 PJ at Longtom and 203 PJ in the Judith Gas Field operated by
Bass Strait Oil Company [BAS Quarterly Report, Q2/2012 of 16 January 2013]. In addition
Lakes Oil has reported [announcement 18 July 2011] gross tight gas 2C contingent resources of 345 PJ in the Wombat Prospect and 409 PJ in its Gangell, Trifon and Sea Spray Prospects, all of which are in the onshore section of the Gippsland Basin.
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The reported 2C contingent gas resources in the Gippsland Basin at 31 December 2012 are detailed in Table 13:
Table 13
Gippsland Basin - 2C Contingent Gas Resource
31 December 2012
[PJ]
Prospect
Gangell,Trifon, Sea Spray
Golden Beach
Judith
Longtom
Wombat
Total
2C Contingent
Resource
409
35
203
102
345
1,094
Gunnedah Basin
Santos Limited [80%], the operator of the Narrabri Gas Project has the small Coonarah conventional gas field to the west of Narrabri in the Gunnedah Basin in New South Wales.
Small quantities of gas (0.7 TJ per day) were produced until recently for use in the 4 MW
Wilga Park Power Station. The Wilga Park power facility, which is being expanded in stages, is now operating on CSG from the Narrabri Gas Project with a current installed capacity of 13
MW. The remaining 2P gas reserves at Coonarah Gas Field, which has been shut in, have been reported in presentations by the former permit holder, Eastern Star Gas, to be 6 PJ. For practical and commercial purposes, the Coonarah Gas Field is depleted and conventional gas reserves are taken as zero.
Prospectivity for additional conventional gas reserves in the Gunnedah Basin is considered to be low.
Otway Basin
Conventional gas reserves and resources have been posted for the Casino, Minerva and Otway
Gas projects in the offshore Otway Basin off southern Victoria. There are small remaining gas reserves and resources in the onshore Otway Basin in both Victoria and in South East South
Australia.
The 2P gas reserves in the Santos operated Casino and adjacent Gas Fields [Santos 50%,
AWE 25% and Mitsui 25%] which commenced production in February 2006 were re-assessed by Santos in the second half of 2010. This review resulted in an approximate reduction of
25% in the gross 2P gas reserve figures. AWE has reported that its net share [25%] of the 2P gas reserves from the Casino, Netherby and Henry Gas Fields at 30 June 2012 were 55.3 PJ.
[AWE 2012 Annual Report-19 October 2012]. This gives the estimated total 2P gas reserves at Casino-Henry-Netherby, at 30 June 2012, at 221 PJ. Gross gas production in the six months to 31 December 2012 was 18.6 PJ resulting in remaining 2P reserves at end of 2012 at 202 PJ.
The gross 2C contingent gas resource for the Casino-Henry-Netherby gas fields is 116 PJ.
The BHP Billiton operated Minerva Gas Project [BHPB 90%, Santos 10%] initially reported on 19 January 2005 that the 2P gas reserves stood at 301 Bcf [316 PJ]. There have been no
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subsequent announcements of increases or reductions in the reserve base at Minerva. Based on published production from Minerva [Santos Quarterly Production Reports] since start-up in mid 2005, the cumulative gas production to 31 December 2012 has been 251 PJ. This leaves the remaining 2P gas reserves at Minerva at 65 PJ. [BHPB 60 PJ, Santos 6 PJ]. There have been no announcements regarding 2C contingent gas resources at Minerva.
Origin Energy has a 67.23% interest in, and is the operator of, the Otway Gas Project. In its
2012 Annual Reserve Statement of 31 July 2012, Origin reported its net 2P reserves for the
Otway Gas Project at 30 June 2012 as 314 PJ. Thus the estimated Otway Gas Project gross 2P gas reserves at 30 June 2012 were 467 PJ. Gross production from the Otway Gas Project over the six months to 31 December 2012 was 25.7 PJ. This leaves the remaining 2P gas reserves at 441 PJ at this date. The distribution of the 2P gas reserves in the Otway Gas Project at 31
December 2012 is given in Table 14:
Table 14
Otway Gas Project – 2P Conventional Gas Reserves
31 December 2012
[PJ]
Company
Origin
Benaris
CalEnergy
Share %
67.23
27.77
5.00
2P Gas Reserves
297
122
22
Total 100.00 441
Reference: Origin Energy 2012 Annual Reserves Statement, 31 July 2012
Origin Energy Quarterly Production Reports, 31 October 2012 and 31 January 2013.
The onshore 2P gas reserves for the Otway Basin are small and from information published on initial gas reserves from numerous small gas fields and cumulative production over the past 20 years, RLMS has estimated that the remaining 2P gas reserves in the onshore Otway
Basin are 12 PJ. WHL Energy reported on 27 November 2012 that it had a 2C contingent gas resource of 158 PJ in its onshore Otway Permit Vic/P67.
The estimated total 2P conventional gas reserves in the Otway Basin at 31 December 2012, are illustrated in Table 15;
Table 15
Otway Basin – Total 2P Conventional Gas Reserves
31 December 2012
[PJ]
Project
Casino, Netherby, Henry
Minerva
Otway Gas
On-shore Otway
Total
2P Gas Reserves
202
65
441
12
720
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The distribution of these 2P conventional gas reserves on a company basis is presented in
Table 16:
Table 16
Otway Basin - 2P Conventional Gas Reserves by Company
31 December 2012
[PJ]
Company
AWE
BHP Billiton
Benaris
CalEnergy
Mitsui
Origin
Santos
Santos
Other On-shore
Total
Project
Casino
Minerva
Otway
Otway
Casino
Otway
Casino
Minerva
Various
-
Interest %
25.0
90.0
27.77
5.0
25.0
67.23
50.0
10.0
100.0
-
Net 2P Gas Reserves
50
60
122
22
50
297
101
6
12
720
Surat Basin
The conventional gas reserves in the Surat Basin, in the area mostly to the south and south east of Roma, are modest, though small reservoirs continue to be found. The three principal explorers and producers of conventional natural gas in the Surat Basin are AGL Energy
Limited, through its Mosaic Oil subsidiary, Origin Energy and Santos.
AGL Energy in its 2012 Reserves Report of 17 February 2013 reported that the remaining 2P conventional gas reserves in its Surat Basin permits were 61 PJ. In addition, AGL also reported that it had 158 PJ of 3P gas reserves across its tenements.
Following a review by Origin Energy of its Surat Basin conventional petroleum assets, which are centred on the Kincora Gas Plant near the Town of Surat, the Company has decreased its remaining 2P gas reserves to 1PJ but has re-classifieded 13 PJ of former 2P reserves as 2C contingent resources. The Kincora Gas Plant is being maintained on a care and maintenance basis.
Santos publishes its reserve information on a calendar year basis. In its conventional gas reserves for the Bowen and Surat Basins at 31 December 2012, Santos stated that the 2P conventional 2P gas reserves were 41 PJ [2012 Reserves Report of 22 February 2013]. Of this gas, Santos has 37 PJ in the Denison Trough in the southern Bowen Basin leaving the conventional gas reserves held by Santos on the Roma Shelf at 4 PJ.
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The 2P conventional natural gas reserves in the Surat Basin held by the companies at 31
December 2012 were 66 PJ as outlined in the Table 17:
Table 17
Surat Basin - 2P Conventional Gas Reserves
31 December 2012
[PJ]
Company
AGL
Origin
Santos
Total
2P Gas Reserves 3P Gas Reserves
61 158
1
4
-
-
66 158
Grahame Baker
RLMS
13 September 2013
400-East Aust Conventional Gas Reserves-31 December 2012
15

RLMS
RLMS
At 31 December 2012
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There is a significant unconventional gas resource in Eastern Australia. Unconventional gas includes coal seam gas [CSG], coal mine methane, tight conventional gas, shale gas, CSG from deep, low permeability coals and biogas. At present, only CSG is commercially produced on a significant scale though some close spaced infill gas wells targeting very low permeability gas and trial shale gas wells have been connected to the gas gathering system in the Cooper Basin Small quantities of biogas from land fill operations and waste treatment plants is used as an energy source. Currently only CSG has independently certified reserves and resources. However the development being undertaken across Australia to recover natural gas from very low permeability formations including deep coal measures, tight sandstones and from carbonaceous shales is expected to result in the first independently certified gas reserves and resources from these reservoirs being announced during the first half of 2013.
Using company announcements, company presentations and documentation, information from
Government agencies as well as direct communication with participants in the upstream gas industry, RLMS regularly compiles tables of the CSG reserves and resources in Eastern
Australia. These are collated on both a company and by Basin basis.
The definition of gas reserves and resources used in the paper are those meeting the criteria of the Petroleum Resource Management System [PRMS] of the Society of Petroleum Engineers
Inc. The PRMS is an internationally accepted standard of reporting reserves and resources is used both by the Australian Securities Exchange [ASX] and the US Securities and Exchange
Commission [SEC].
Gas reserves are reported as Proven [1P], Proven plus Probable [2P] and as Proven plus
Probable plus Possible [3P]. Resources, where natural gas is present but has not been confirmed as commercially recoverable are classified as Contingent Resources and
Prospective Resources, though in Australia, most companies only report Contingent
Resources such as 2C or 3C or recoverable Prospective Resources. In some cases, companies make an estimate of the in situ gas resource in their tenement areas and report this as estimated Gas In Place [GIP]. GIP figures are normally company estimates and usually have not been subject to independent certification.
The reserves and resources are reported in energy units, principally as Petajoules [PJ –
1015J]. Where companies have reported figures on a volumetric basis, such as in cubic feet units, they have been converted to energy units reflecting their heating value. For pipeline quality CSG containing approximately 97% methane, the conversion of one billion cubic feet
[1 Bcf] equals 1.045 PJ has been used.
In this compilation, Eastern Australia refers to Queensland, New South Wales, Victoria,
Tasmania and South Australia. Each of these States is interconnected by the Eastern
Australian gas pipeline grid.
17

The estimates for the aggregate CSG reserves and resources in Eastern Australia at 31
December 2012 are presented in Table 1. All reserve and resource figures are in PJ’s.
Table 1
Eastern Australia - CSG Reserves and Resources
31 December 2012
Reserves PJ’s
1P 5,693
2P
3P
44,442
68,924
Contingent Resources
2C
3C
2P + 2C
31,853
45,446
76,295
Many companies only report 2P gas reserve figures and do not report specific 1P or 3P reserves. Again many companies do not report contingent or prospective gas resources.
Accordingly the reported 1P and 3P reserves and the contingent resources under estimate the actual level of natural gas reserves and contingent resources.
18

The CSG reserves and resources on a net company basis at 31 December 2012 are given in
Table 2.
Table 2
Eastern Australia
Coal Seam Gas Reserves and Resources by Company in PJ’s
31 December 2012
Company
AGL Energy
Arrow Energy
Blue Energy
Clarence Moreton
Resources
Comet Ridge
ConocoPhillips
Dart Energy
Energy Australia
ERM Power
Galilee Energy
Harcourt Petroleum
KOGAS
Metgasco
Mitsui Group
Origin Energy
PETRONAS
QGC
Red Sky
Santos
Senex
Sinopec
Stanwell Corp
Total
Toyota Tsusho
Westside Corp
Total
1P
Reserves
-
669
-
-
2P
Reserves
2,170
9,494
50
12
3P
Reserves
3,961
13,970
180
266
2C
Resources
130
2,521
820
-
3C
Resources
545
2,521
3,481
440
3
57
-
494
3,096
-
539
-
-
-
24
270
-
-
-
-
-
494
-
47
5,693
428
505
5,073
1,478
10,326
3
3,061
157
-
4,895
-
285
2
-
343
807
3,263
143
1,478
122
347
44,442
2,542
1,265
6,879
1,876
18,876
76
3,495
358
-
5,990
-
285
38
-
824
1,024
3,993
143
1,876
122
885
68,924
2,511
301
1,434
450
13,700
-
4,442
240
260
1,434
542
692
-
129
594
246
957
-
450
-
-
31,853
2,511
301
3,686
450
13,700
126
4,442
240
2,731
3,686
1,484
692
63
545
594
246
2,457
55
450
-
-
45,446
2P + 2C
2,300
12,015
870
12
2,939
806
6,507
1,928
24,026
3
7,503
397
260
6,329
542
977
2
129
937
1,053
4,220
143
1,928
122
347
76,295
The breakdown of CSG reserves and resources given in Table 2 can be grouped on an activity or functional basis such as those held by the major LNG project groups, gas utilities, power generators and independent upstream gas companies. This grouping gives an indication of the ownership concentration of the Eastern Australian CSG reserves and resources.
This grouping of the holdings of gas reserves and resources on an activity basis is given in
Table 3. Included in this table are the 2P + 2C reserve/ contingent resource figures which are frequently used as a measure of the current reserve potential of a company or project group.
19

Table 3
Easter Australia
Coal Seam Gas Reserves and Resources by Activity Grouping in PJ’s
31 December 2012
Activity Grouping
LNG Projects
APLNG
Arrow LNG
GLNG
QCLNG
Total LNG
Power Generation &
Utilities
AGL
Energy Australia
ERM Power
Origin Energy [1]
Santos [2]
Stanwell Corp
Mitsui Group
Toyota Tsusho
Total Power & Utilities
International Ownership [3]
Harcourt Petroleum
2P Reserves
13,053
9,494
5,376
10,326
38,249
2,170
285
2
178
1,448
143
4,226
343
505
122
3P Reserves
15,973
13,970
6,823
18,876
55,642
3,961
285
38
889
1,448
143
6,764
824
1,265
122
2C Resources
3,825
2,521
1,638
13,700
21,684
130
692
-
-
3,951
-
4,773
594
301
-
2P + 2C
16,878
12,015
7,014
24,026
59,933
Total International
Independent Companies
Blue Energy
Clarence Moreton Resources
Comet Ridge
Dart Energy
970
50
12
-
-
2,211
180
266
-
-
895
820
-
260
542
1,865
870
12
260
542
Galilee Enegy
Metgasco
Red Sky
Senex Energy
Westside Corporation
-
428
3
157
347
-
2,542
76
358
885
129
2,511
-
240
-
129
2,939
3
397
347
Total Independents
TOTAL
997
44,442
4,307
68,924
4,502
31,853
5,499
76,295
Notes: 1. Origin Energy CSG reserves held outside of APLNG
2. Santos CSG reserves and resources held outside of GLNG
3. International ownership in addition to offshore ownership in LNG projects and Energy Australia
2,300
977
2
178
5,399
143
8,999
937
806
122
Table 3 illustrates the concentration of the CSG reserves and resources in each activity grouping and particularly within the LNG proponent groups. Table 4 gives the percentages of
CSG reserves and resources held by each activity grouping as a more definitive measure of the concentration of resource and reserve ownership by these groups.
20

Table 4
Eastern Australia
Percentage of CSG Reserves and Resources Held by Activity Grouping
31 December 2012
Activity
Grouping
LNG
Power/Utilities
International
Independents
Total
2P
Reserves
PJ
38,249
4,226
970
997
%
86.1
9.5
2.2
2.2
3P
Reserves
PJ
55,642
6,764
2,211
4,307
%
80.7
9.8
3.2
6.3
44,442 100.0 68,924 100.0
2C
Resources
PJ
21,684
4,773
895
4,502
%
68.1
15.0
2.8
14.1
2P + 2 C
PJ
59,933
8,999
1,865
5,499
%
78.6
11.8
2.4
7.2
31,853 100.0 76,295 100.0
Table 5 outlines the 2P and 3P CSG Reserves by Basin at 30 June 2012. While most companies report their total reserves and resources, few provide any details by gas field or by basin other than for 2P reserves. In many cases, even the 2P reserves are only reported by broad geographical areas. However through utilization of information available from
Government agencies responsible for administering the relevant petroleum activities enables the 2P reserves on a Basin by Basin criteria to be derived.
Table 5
Eastern Australia
Coal Seam Gas Reserves in PJ’s by Basin
31 December 2012
Basin 2P Reserves Percentage 3P Reserves Percentage
Bowen [1]
Clarence-Moreton
Gloucester
Gunnedah
Surat [1]
Sydney
18,070
445
669
1,426
23,550
282
40.7
1.0
1.5
3.2
53.0
0.6
25,172
2,922
832
1,426
38,115
457
36.5
4.3
1.2
2.1
55.3
0.6
Total 44,442 100.0 68,924 100.0
Note1. The distribution of reserves between the Bowen and Surat Basins is an RLMS estimate based on Company announcements and presentations, information from the Queensland Department of Natural
Resources and Mines and direct advice from companies.
It will be noted that over 93% of the 2P and 3P reserves of CSG are within the Bowen and
Surat Basins in Queensland, the two sedimentary basins with the longest period of CSG development and where there are extensive gas pipeline gathering and transmission systems.
The 2P and 3P reserves of CSG reserves are presented by Basin on a State basis in Table 6:
21

Basin
New South
Wales
Clarence-Moreton
Gloucester
Gunnedah
Sydney
Total NSW
Queensland
Bowen
Surat
Total Queensland
Overall Total
Table 6
Eastern Australia
Coal Seam Gas Reserves in PJ’s
By State
31 December 2012
2P Reserves Percentage 3P Reserves Percentage
445
669
1,426
282
2,822
18,070
23,550
41,620
44,442
1.0
1.5
3.2
0.6
[6.3]
40.7
53.0
[93.7]
100.0
2,922
832
1,426
457
5,637
25,172
38,115
63,287
68,924
4.3
1.2
2.1
0.6
[8.2]
36.6
55.2
[91.8]
100.0
Details of the independently certified CSG reserves and resources held by each of the companies at 30 June 2012 and listed in the above tables are provided in the following sections.
AGL Energy Limited [AGK]
AGL Energy has direct interests in CSG in the northern Bowen Basin with a 50% interest in the Moranbah Gas Project and adjacent tenements where Arrow Energy is the operator. AGL has a 100% interest in, and is the operator of tenements in the Gloucester Basin and of the
Hunter and Camden Gas Projects in the Sydney Basin in New South Wales.
Table 7 outlines AGL’s CSG reserve position.
22

Table 7
Net CSG Reserves[1] held by AGL Limited in PJ’s
31 December 2012
Queensland
Moranbah
ATP 1103P [2]
Spring Gully [3]
QLD Total
NSW
AGL Interest
50%
1-50%
Various, small
2P
307
904
8
1,219
3P
511
2,151
10
2,672
Gloucester Basin
Hunter Gas
Project
Sydney Basin
Camden
NSW Total
100%
100%
100%
669
142
140
951
832
271
186
1,289
Overall 2,170 3,961
TOTAL
Notes. [1] AGL Presentation, Six Monthly Report to 31 December 2012, 27 February 2013
[2] AGL entitlement to participate up to 50% in any commercial development in ATP 1103P [formerly ATP
364P] by contribution to past costs
[3] AGL also holds very small interests in the Spring Gully gas operations operated by Origin Energy
Limited [0.0375% to 0.75%].
In addition to these CSG reserves, AGL Energy has conventional gas reserves. These are in the Surat Basin based on the Churchie, Taylor and Waggamba gas and condensate fields. The conventional gas reserves held by AGL Energy at 31 December 2012 in the Surat Basin comprise 61 PJ of 2P and 158 PJ of 3P. The depleted Silver Springs gas field has been converted to a gas storage facility by AGL which is providing gas storage services to
QCLNG.
On 30 June 2011, the first contingent resource estimation was announced for the Galilee Gas
Project covering a 450 km2 area in ATP 529P. The Galilee Gas Project is a 50/50 joint venture between AGL Energy Limited and Galilee Energy Limited [GLL]. AGL is the project operator.
There have been no additions or variations to the resources at the Galilee Gas Project since the initial announcement. The resource estimates for ATP 529P at 31 December 2012 are shown in Table 8:
23

Table 8
CSG Contingent Resources-
Galilee Gas Project-ATP 529P in PJ’s
31 December 2012
Contingent Resource AGL Share [50%]
2C 130
3C 545
Note: Galilee Energy ASX announcement, 30 June 2011
GLL Share [50%]
129
545
Total Resource
259
1,090
The overall net CSG Reserves and Resources held by AGL Energy Limited at 31 December
2012 are summarized in Table 9.
Basin
Bowen
Galilee
Gloucester
Sydney
Total
Ref: Tables 7 and 8.
Table 9
AGL – Net CSG Reserves and Resources in PJ’s
31 December 2012
2P
1,219
-
669
282
2,170
3P
2,672
-
832
457
3,961
2C
-
130
-
-
130
3C
-
545
-
-
545
APLNG
Australia Pacific LNG [APLNG] is a joint venture between ConocoPhillips [37.5%], Origin
Energy Limited [37.5%] and Sinopec [25.0%]. The JV is constructing a two train LNG plant on Curtis Island near Gladstone. The capacity of each of the LNG processing trains is 4.5 million tonnes per year.
As part of the initial agreement between ConocoPhillips and Origin Energy, the major part of
Origin’s Eastern Queensland gas reserves and resources were allocated to APLNG. All of the
APLNG reserves are within the Bowen and Surat Basins. In addition APLNG has a gas resource in three Origin operated tenements in the Galilee Basin. With the exception of some small conventional gas reserves in the Denison Trough in the Bowen Basin, all of the APLNG gas reserves and resources are CSG.
Origin Energy in its 2012 Annual Reserves Report of 31 July 2012 outlined the gas reserves and contingent resources held by APLNG at 30 June 2012. There have been no further announcements regarding additions or variations to the gas reserves and resources since the issuing of the 2012 Annual Reserves Report. Adjusting the APLNG gas reserves at 30 June
2012 for production for the six months from 1 July 2012 to 31 December 2012 [21 PJ] enables an estimate to be made of the gas reserves and resources held by APLNG at 31
December 2012.
The estimated total gas reserves and resources at 31 December 2012 held by APLNG and the allocation of gas between the JV partners is given in Table 10.
24

Table 10
APLNG Total Gas Reserves and Resources in PJ’s
31 December 2012
Reserves
2P
3P
Resources
APLNG
Total
13,090
16,026
ConocoPhillips
[37.5%]
4,909
6,010
Origin Energy
[37.5%]
4,909
6,010
Sinopec
[25.0%]
3,272
4,006
2C
3C
3,825
9,829
1,434
3,686
1,434
3,686
957
2,457
2P + 2C 16,915 6,343 6,343 4,229
References: Origin Energy: 2012 Annual Reserves Report, 31 July 2012.
Origin Energy: Exploration and Production Report, Quarter ending 31 December 2012, 31 January 2013
In addition to the CSG reserves and resources held by APLNG, the Project also holds some conventional gas reserves in the Denison Trough in the Bowen Basin. The Denison Trough gas field is owned 50% by APLNG and 50% by Santos. Origin Energy is the field operator on behalf of APLNG. The conventional gas reserves in the Denison Trough Gas Fields at 30
June 2012, attributable to APLNG, were 38 PJ of 2P reserves and 54 PJ of 3P reserves.
Adjusting for the APLNG share of production from the Denison Trough of 1 PJ over the six months to 31 December 2012, an estimate can be made of the CSG reserves and resources held by APLNG at 31 December 2012. These are shown in Table11.
Reserves [1]
Table 11
APLNG CSG Reserves and Resources in PJ’s
31 December 2012
APLNG
Total
ConocoPhillips
[37.5%]
Origin Energy
[37.5%]
Sinopec
[25.0%]
2P
3P
Resources [2]
13,053
15,973
4,895
5,990
4,895
5,990
3,263
3,993
3,825 2C
3C
1,434
3,686
1,434
3,686
957
2,457 9,829
16,878 2P + 2C 6,329 6,329 4,220
References: Origin Energy: 2012 Annual Reserves Report, 31 July 2012.
Origin Energy: Exploration and Production Report, Quarter ending 31 December 2012, 31 January 2013
25

Arrow Energy Limited
Arrow Energy Limited, jointly owned by Royal Dutch Shell and PetroChina operates CSG fields in the Bowen and Surat Basins. The Company also holds exploration tenements in the
Galilee Basin and a number of coastal basins in Queensland. The major focus of Arrow in recent times has been on its permit areas in the Surat and Bowen Basins.
Arrow Energy is well advanced in its investigations into the establishment of an initial two train LNG project on Curtis Island near Gladstone. Each LNG processing train has a design capacity of 4.0 million tonnes per year. A total of four LNG processing trains is planned for the long term.
In the Northern Bowen Basin, the Moranbah Gas Project [MGP] reserves and resources are held 50% by Arrow Energy as operator and 50% by AGL Energy Limited. The MGP supplies natural gas to the Townsville area by way of the North Queensland Gas Pipeline [PPL 89].
Gas is also supplied to Incitec Pivot’s ammonium nitrate plant at Moranbah as well as for power generation at Moranbah. Arrow and AGL, the JV partners in the MGP propose that it will remain a gas supplier into the north Queensland domestic market.
In the adjacent permit area to the MGP [ATP 1103P], AGL Energy has entitlements to participate up to 50% in any commercial development in ATP 1103P by contributing to past costs. Arrow has dedicated its gas reserves and resources in ATP 1103P to the proposed
Arrow LNG Project on Curtis Island. AGL has not announced any decision regarding the utilization of any gas reserve entitlements it will acquire through back-in rights in ATP
1103P.
Following the Arrow takeover of Bow Energy in late 2011, Arrow acquired additional CSG reserves and resources in the Bowen Basin by way of the Blackwater [ATP 1025P] and
Norwich [ATP 1031P] Prospects. Future gas production from these two permit areas is planned to be used as feedstock in the Arrow LNG Project.
In the Surat Basin, Arrow operates the Daandine, Kogan North and Tipton West CSG Fields which are currently supplying approximately 65 TJ/day [24 PJ/a] to domestic gas markets, mostly for power generation. Arrow holds a 100% interest in a number of other Surat Basin tenements. In the Kogan North [PL 194] and Kogan East [ATP 676P] permits, Stanwell
Corporation has a 50% interest with Arrow, as the operator, holding the remaining half.
Arrow proposes to bring most of its undeveloped Surat Basin permits into production to supply gas to its LNG Project on Curtis Island.
Arrow has only published limited details of the breakdown of its CSG reserves and resources by sedimentary basin or by gas fields.
In a presentation by Arrow on 10May 2012, in addition to the 2P reserves of 8,000 PJ, the 3P
CSG reserves of Arrow Energy at 31 December 2011 were 15,700 PJ. The gas reserve position of Arrow Energy at 31 December 2011 is shown in Table 12.
26

Table 12
Total CSG Reserves held by Arrow Energy Limited in PJ’s
[Including Bow Energy Reserves]
31 December 2011
Reserve
1P
2P
3P
PJ
700
8,000
15,700
On 12 March 2013, Arrow announced that its net 2P CSG reserves at 31 December 2012 were
9,494 PJ. No specific figures were announced as to the breakdown of these gas reserves by gas fields or by sedimentary basins. In addition there have been no announcements by Arrow as to the 1P, 3P CSG reserves or contingent gas resources for 31 December 2012. The increase in 2P reserves during 2012 was approximately 1,500 PJ over the 2P reserves of 8,000
PJ at 31 December 2011.
Arrow’s 50% share of the gas production from the MGP in the Bowen Basin during 2012 was an estimated 7 PJ. The gas production net to Arrow from the Surat Basin permits operated by the company during 2012 was 24 PJ. Adjusting for this production and assuming no further additions or adjustments to the earlier 1P reserve figures, the estimated 1P CSG reserves held by Arrow at 31 December 2012 would be 669 PJ.
The Arrow Bowen Gas Project involves ATP’s 1103P, 1025P, 1031P and parts of ATP 759P and ATPA’s 742P and 749P. ATP’s 1025 [Blackwater] and 1031P [Norwich] are two of the tenements acquired by Arrow following its takeover of Bow Energy in late 2011. There has been no gas production from these permits since 31 December 2011. Accordingly the CSG reserves at 31 December 2012 are the same as those of a year earlier.
The MGP is a 50/50 joint venture with AGL Energy Limited. The MGP is operated by
Arrow. AGL Energy announced on 27 February 2013 that its net share of the gas reserves in the MGP at 31 December 2012 were 307 PJ of 2P reserves and 511 PJ of 3P CSG reserves along with its entitlement to the gas reserves in ATP 1103P after the exercise of its back-in rights . Based on the AGL announcement, Arrow’s share of the CSG reserves in the northern
Bowen Basin can be derived. No reserves have been posted for ATP 759P or the ATPA’s.
The net reserves to Arrow in the Bowen Basin are illustrated in Table 13.
Table 13
Arrow Net CSG Reserves in Bowen Basin in PJ’s
31 December 2012
Permit
MGP
ATP 1103P
ATP 1025P
ATP 1031P
2P
307
1,536
148
37
3P
511
3,321
2,480
192
Total 2,028 6,504
Reference: AGL Six Monthly Report to 31 December 2012, 27 February 2013
Bow Energy Quarterly Report-September Quarter 2011, 26 October 2011
Note:
2C
-
-
605
1,961
2,521
Department of Natural Resources and Mines, Queensland Gas Reserves and Production
Statistics, 16 November 2012
Arrow net reserves are based on assumption that AGL will exercise its 50% interest in thosereserves in the ATP 1103P where they have back-in rights.
27

An order of magnitude estimate can also be made for the 3P CSG reserve figures held by
Arrow at 31 December 2012. These can be estimated from the published 3P reserves and resources in the northern Bowen Basin held by AGL Energy, a 50/50 Joint Venture partner with Arrow in the MGP and ATP 1103P and those held in the Bow Energy permit areas, also in the Bowen Basin.
No specific 2P and 3P reserve information has been published by Arrow for the Surat Basin.
In the absence of published specific figures from Arrow Energy about the 2P CSG reserves it holds in the Surat Basin, these can be derived by subtracting the Bowen Basin reserves [Table
13] from Arrow’s advice of its total 2P reserves at 31 December 2012 were 9,494 PJ. That is, the 2P CSG reserves of Arrow Energy in the Surat Basin at 31 December 2012 were 7,466 PJ.
In estimating the 3P CSG reserves held by Arrow at 31 December 2012, the 3P reserves must at least be equal to the 2P reserves for the Surat Basin. In this estimation of the Arrows 3P gas reserves in the Surat Basin, they are assumed, in the absence of specific numbers, to be equal to the 2P reserves. Based on this analysis, Table 14 presents the estimates of Arrow’s total net
CSG reserves and contingent resources by basin at 31 December 2012.
Table 14
Arrow Energy – Net CSG Reserves and Resources in PJ’s
31 December 2012
Permit
Bowen.
Surat
Total
1P
-
-
669
2P
2,028
7,466
9,494
3P
6,504
7,466
13,970
2C
2,521
-
2,521
Assuming that the increase in 2P reserves of 1,500 PJ during 2012 was mostly as a result of more detailed development in existing gas fields rather than from appraisal in new exploration areas, it could be expected that the increase in 2P reserves was matched by a least a similar decrease in 3P reserves. If it is assumed that 1,500 PJ of 3P reserves was reclassified to 1,500
PJ of 2P reserves, it would result in the 3P reserves at 31 December 2012 being 14,200 PJ.
This is based on the added supposition that Arrow’s focus in 2012 was on production development in existing permit areas and the conversion was on a 1:1 basis. In practice a 1:1
3P to 2P reserves conversion does not occur. In table 14, where it was assumed that 3P reserves are the same as 2P reserves in the Surat Basin, the reduction in 3P reserves [15,700
PJ to 13,970 PJ] implies 1730 PJ of 3P reserves was converted to 1,500 PJ of 2P reserves, a conversion of 86% which is feasible for mature gas fields.
The estimate of Arrow’s net CSG reserves and resources at 31 December 2012 to be used in this review of the Eastern Australian CSG reserves and resources are those outlined in Table
14 and repeated as Table 15.
Permit
Bowen.
Surat
Total
Table 15
Arrow Energy – Net CSG Reserves and Resources in PJ’s
31 December 2012
1P
-
-
669
2P
2,028
7,466
9,494
3P
6,504
7,466
13,970
2C
2,521
-
2,521
28

Arrow Energy has also stated that it estimates that it has over 70,000 PJ as gas in place across its tenements [41,500 km
2
] in Queensland.
Blue Energy Limited [BUL]
Blue Energy Limited is undertaking an active exploration and appraisal drilling program for
CSG in the northern Bowen and Galilee Basins. The Company also has tenements with CSG potential in the southern Bowen, Maryborough and Surat Basins.
Since 2010, Blue Energy concentrated its drilling activities in ATP 814P in the northern
Bowen Basin, north east of Moranbah.
In March 2011, Blue Energy first announced that it had established a significant contingent gas resource in the Monslatt, Central and Sapphire Blocks in ATP 814P. On the 11 July 2011, the Company reported its first 3P CSG reserves in the Sapphire Block. Following evaluation of the initial results of pilot operations in the Sapphire Block, Blue Energy was able to announce additional gas reserves in the block including 50 PJ of 2P reserves and an increase in 3P reserves to 180 PJ. It also has reviewed its CSG resources in these blocks.
The CSG reserves and resources in ATP814P, 100% Blue Energy, at 31 December 2012 are outlined in Table 16.
Table 16
Net CSG Reserves and Resource - Blue Energy - ATP 814P in PJ’s
31 December 2012
ATP 814P
Block
Sapphire
Central
Monslatt
Lancewood
Total
Reference:
2P Reserves 3P Reserves 2C Contingent
Resource
50
-
-
-
50
180
-
-
-
180
-
-
-
-
820
Blue Energy ASX announcement 25 January 2012.
Blue Energy 2012 Annual Report 19 September 2012
Blue Energy ASX announcement 26 February 2013
Blue Energy ASX announcement 19 March 2013
Blue Energy Presentation 20 March 2013
3C Contingent
Resource
221
463
1,711
439
2,834
The above reserve and resource estimates relate only to coals within the Fort Cooper and
Rangal Coal Measures. In addition to the contingent resources, Blue Energy has Prospective
Gas Resources in the Fort Cooper Coal Measures which occur within the Monslatt and
Central Blocks of ATP 814P.
Blue Energy, in addition to the above CSG reserves and resources, has announced an estimated prospective gas resource of 3,630 PJ, as shale gas, in tight carbonaceous shales in the Monslatt Project area.
The Company, on 29 June 2011, announced its first gas resource figures for its Galilee Basin tenement [ATP 813P]. The CSG resource comprises 544 PJ of 3C contingent resource. The
Company also has 103 PJ of 3C contingent resource in ATP 854 in the Permian Bandanna
Formation in the southern Bowen Basin.
29

The overall CSG reserves and resources held by Blue Energy at 31 December 2012 are shown in Table 17.
Table 17
Blue Energy- Net Gas Reserves and Resources in PJ’s
31 December 2012
Permit
ATP 814P
ATP 813P
ATP 854
Total
Reference:
2P Reserves
50
3P Reserves
180
2C Contingent
Resource
820
-
-
-
-
50 180 820
Blue Energy 2012 Annual Report 19 September 2012
Blue Energy ASX announcement 26 February 2013
Blue Energy ASX announcement 19 March 2013
3C Contingent
Resource
2,834
544
103
3,481
Comet Ridge Limited [COI]
Comet Ridge Limited has CSG interests in the Bowen, Galilee and Gunnedah Basins. The
Company has independently certified 2C and 3C Contingent Resources in each of these
Basins. These are outlined in Table 18.
Table 18
Net CSG Resources held by Comet Ridge Limited in PJ’s
31 December 2012
Project
Gunn ATP 744P
Mahalo ATP
337P
PEL 6
PEL 427
PEL 428
Location
Galilee Basin
Bowen Basin
Gunnedah Basin
Gunnedah Basin
Gunnedah Basin
COI Interest [1]
[%]
100
35
2C Contingent
Resource
67
193
22.5
50
60
-
-
-
3C Contingent
Resource
1,870
387
34
376
64
Gunnedah
Sub Total
Total
Note 1.
Reference:
- 474
260 2,731
Based on finalization of acquisition of interests in PEL’s 6, 427 and 428 formerly held by Petrel Energy Limited
Comet Ridge 2012 Annual Report 16 October 2012
Comet Ridge Company Presentation 13 November 2012
Comrt Ridge’s ongoing activities are at Mahalo where it has a 35% interest and in its Galilee
Basin permit areas where it has a 100% interest.
30

ConocoPhillips
ConocoPhillips is a joint venture partner with Origin Energy and Sinopec in the Australia
Pacific LNG Project [APLNG]. At 31 December 2012, ConocoPhillips and Origin each had a
37.5% interest in APLNG with Sinopec holding the remaining 25% interest. The APLNG
Project is based on two 4.5 million tonne per year LNG processing trains which are under construction on Curtis Island.
Details of the CSG reserves and resources held by APLNG and its equity partners at 31
December 2012 are given in Table 19.
Table 19
APLNG CSG Reserves and Resources in PJ’s
31 December 2012
Reserves
APLNG
Total
ConocoPhillips
[37.5%]
Origin Energy
[37.5%]
Sinopec
[25.0%]
2P
3P
Resource ]
2C
3C
13,053
15,973
3,825
9,829
4,895
5,990
1,434
3,686
4,895
5,990
1,434
3,686
3,263
3,993
957
2,457
2P + 2C 16,878 6,329 6,329 4,220
References: Origin Energy: 2012 Annual Reserves Report, 31 July 2012.
Origin Energy: Exploration and Production Report, Quarter ending 31 December 2012, 31 January 2013
In addition to the CSG reserves at 31December 2012, APLNG had net conventional gas reserves in the Denison Trough of 37PJ as 2P gas reserves and 53 PJ of 3P gas reserves. The
Denison Trough Gas Fields are operated by Origin Energy on behalf of APLNG which has a
50% interest in the Denison Trough reserves and gas production with Santos holding the balance.
31

Table 20 gives details of the total gas reserves [CSG plus conventional] held by APLNG and
ConocoPhillips at 31 December 2012.
Table 20
APLNG Total Gas Reserves and Resources in PJ’s
31 December 2012
Reserves
2P
3P
APLNG
Total
13,090
16,026
ConocoPhillips
[37.5%]
4,909
6,010
Origin Energy
[37.5%]
4,909
6,010
Sinopec
[25.0%]
3,272
4,006
Resources
2C 3,825 1,434
3,686
1,434
3,686
957
2,457 3C
2P + 2C
9,829
16,915 6,343 6,343 4,229
References: Origin Energy: 2012 Annual Reserves Report, 31 July 2012.
Origin Energy: Exploration and Production Report, Quarter ending 31 December 2012, 31 January 2013
Dart Energy Limited [DTE]
Dart Energy Limited has a portfolio of international CSG and other unconventional gas prospects. In Eastern Australia, the Company has permits in the Gunnedah and the Sydney
Basins in New South Wales. The Company has established Contingent Resources in PEL’s
456, 458 and 463 in the Sydney Basin. Dart has 100% interest in all of its permits except for
PEL 456 in the Upper Hunter section of the Sydney Basin where Santos is farming-in to take a 50% interest.
Details of the net CSG resource held by Dart Energy at 31 December 2012 are presented in
Table 21.
Table 21
Dart Energy-Net CSG Resource in PJ’s
31 December 2012
Permit [PEL] Interest [%] 2C Contingent
Resource
456
458
463
50
100
100
-
542
-
Total
References: Dart Energy announcement 7 February 2012
Dart Energy 2012 Annual Report 26 October 2012
542
3C Contingent
Resource
470
871
143
1,484
32

Energy Australia
Energy Australia, formerly TRUenergy, is a wholly owned subsidiary of CLP Holdings
Limited of Hong Kong. It has natural gas, gas pipeline and power generation and distribution interests across Eastern Australia. In natural gas the Company operates the Iona gas processing and gas storage facility near Port Campbell in the Otway Basin in southern
Victoria. It also operates extensive gas transmission pipelines in Victoria. In upstream gas,
Energy Australia has a 20% interest in the Narrabri Gas project in the Gunnedah Basin operated by Santos Limited.
The independently certified CSG reserves and resources in the Gunnedah Basin at 31
December 2012 and operated by Santos on behalf of the Santos/Energy Australia joint venture are presented in Table 22.
Table 22
Gunnedah Basin CSG Reserves and Resources in PJ’s
Santos Operated
31 December 2012
Reserves
2P
Santos
1,141
Energy Australia
285
Resources
2C
2P + 2C
References:
2,768
3,909
692
977
Santos: 2011 Reserves Report, 8 February 2012
Santos: 2012 Reserves Report, 22 February 2013
Total
1,426
3,460
4,886
ERM Power Limited [EPW]
ERM Power on 4 July 2012 announced that its wholly owned subsidiary, ERM Gas Pty Ltd was farming into three tenements in the Clarence-Moreton Basin in northern New South
Wales [PEL’s 478, 479 and 457] operated by Red Sky Energy which had a 30% interest in the permits. Clarence Moreton Resources Pty Ltd held the other 70%.
The farm-in covers a number of stages. The first stage of the ERM farm-in was completed on
5 December 2012 with ERM acquiring a 10% interest in the permits while Red Sky’s interest reduced to 20%
Red Sky posted the first CSG Reserves and Resources on 21 March 2011, all in its Clarence-
Moreton farm-in areas with Clarence Moreton Resources Pty Ltd [CMR]. There have been no further additions, deletions or adjustments to these reserves and resources since their initial announcement.
The coal seam gas reserves and resources in the Clarence-Moreton permits at 31 December
2012 in which ERM Power has an interest are presented in Table 23.
33

Table 23
ERM Power – CSG Reserves and Resources in PJ’s
Clarence-Moreton Basin
31 December 2012
Reserve/Resource
2P
3P
3C
PEL
457
-
221
629
PEL 479
17
159
-
Gross
Total
17
380
629
Net Red
Sky
[20%]
3.4
76
126
CMR
[70%]
11.9
266
440
ERM
Power
[10%]
1.7
38
63
Reference: Red Sky ASX announcements, 21 March 2011, 30 May 2012 and 4 July 2012
Galilee Energy Limited [GLL]
Galilee Energy Limited has interests in two tenements in the Galilee Basin. In ATP 529P,
Galilee has a 50/50 joint venture with AGL Energy Limited where the Glenaras, Rodney
Creek, Crossmore and Vera Park CSG pilot operations have been established. AGL Energy is the operator.
On 30 June 2011, the first independently certified Contingent Resources were posted for ATP
529P. The CSG resource at 31 December 2012 remains the same as there have been no additions, depletions or gas production. The resource is outlined in Table 24.
Table 24
Contingent Gas Resources-ATP 529P-Galilee Basin in PJ’s
31 December 2012
Resource
2C
Gross
259
Net GLL
130
3C 1,090 545
Reference: Galilee Energy announcement 30June 2011
Galilee Energy 2012 Annual Report 19 October 2012
Net AGL
129
545
GLNG
The Gladstone LNG Project [GLNG] is being developed by Santos Limited on behalf of the
GLNG project partners. They are Santos Limited [30%], PETRONAS [27.5%], Total [27.5%] and KOGAS [15%]. Santos is the project operator.
The GLNG Project is centred on CSG from the Santos operated Fairview/Arcadia Gas Fields in the Bowen Basin and the Roma Gas Field in the Surat Basin supplying gas to a two train
LNG facility on Curtis Island. The nominal capacity of each of the LNG trains is 3.9 million tonnes per year.
The CSG reserves held by the GLNG Project at 31 December 2012, along with the shares held by each of the participants, are given in Table 25.
34

Table 25
GLNG CSG Reserves and Resources in PJ’s
31 December 2012
Reserves/Resources Total GLNG Santos
[30%]
1P
2P
1,797
5,376
539
1,613
3P
2C
2P + 2C
6,823
1,638
7,014
2,047
491
2,104
References: Santos 2012 Reserves Report, 22 February 2013
PETRONAS
[27.5%]
494
1,478
1,876
450
1,929
Total
[27.5%]
494
1,478
1,876
450
1,929
The figures in Table 27 exclude Santos portfolio gas and third party gas supply to GLNG.
Santos has committed up to 750 PJ of portfolio gas to GLNG. Origin has executed with
GLNG a 10 year agreement for the supply of 365 PJ [100 TJ/day] commencing in 2015.
Santos has also increased its interest in the Combabula CSG Field [ATP 606P operated by
Origin Energy] increasing its 2P reserves there by 230 PJ. This gives GLNG access to a total of 1,345 PJ of 2P portfolio gas.
KOGAS
[15%]
270
807
1,024
246
1,052
Harcourt Petroleum NL
Harcourt Petroleum NL is a subsidiary of PetroChina International Investment Company
Limited, part of the PetroChina Group which acquired the Australian CSG assets of Molopo
Energy Limited on 1 November 2012. The assets are in the Bowen Basin, mostly in the
Dawson Valley near Moura.
The assets included a 67.12% interest in the Mungi Project [PL 94N], at nearby Harcourt
[PLA 210] and in ATP 564P. Also acquired was a 62.88% in the Timmy Project [PLA 447 in
ATP 602P] to the south of Mungi. The remaining interests in these permits are held by Mitsui
E & P. Harcourt has also taken over the role of permit operator from Molopo.
The independently certified CSG reserves and resources developed by Molopo before the sale of its interests to Harcourt Petroleum were all within PL 94N and ATP 564P and the Timmy
Project in ATP 602P. The CSG reserves and resources were established at 31 December 2010.
Since this date there has been no further additions or adjustments while gas production has been minimal [<1 TJ/d]. The gross CSG reserves and resources in the Harcourt operated permits at 31 December 2012 are the same as those announced by Molopo for 31 December
2010. These are presented in Table 26.
35

Table 26
Harcourt Petroleum - Gross CSG Reserves and Resources in PJ’s
31 December 2012
Reserves and
Resources
1P
ATP 564P,
PL 94N
36
ATP 602P Total
36 -
67 2P
References:
3P
2C
448
1,064
727
175
168
515
1,239
895
Molopo ASX announcement of 31 January 2011, 2011 Annual Report 14 September 2011
Molopo Investor Presentation 1 May 2012
The net CSG reserves and resources held by Harcourt Petroleum at 31 December 2012 are presented in Table 27
Table 27
Harcourt Petroleum - Net CSG Reserves in PJ’s
31 December 2012
Reserve/
Resource
Harcourt
PL94N/ATP
564P
24
Harcourt
ATP 602P
Harcourt
Total
24
Mitsui
PL94N/ATP
564P
12
Mitsui
ATP
602P
-
Mitsui
Total
1P
2P
3P
2C
301
714
488
-
42
110
106
343
824
594
147
350
239
25
65
62
12
172
415
301
References: Molopo ASX announcements of 31 January 2011 and 2011 Annual Report, 14 September 2011
Molopo Investor Presentation 1 May 2012
Overall
Total
36
515
1,239
895
KOGAS
Korea Gas Company [KOGAS] has a 15% interest in the GLNG Project at being developed by Santos Limited. KOGAS has a beneficial interest in 15% of the CSG reserves allocated to
GLNG.
Details of KOGAS gas reserve entitlements in the GLNG Project at 31 December 2012 are outlined in Table 27 and reproduced in the following Table 28
36

Table 28
GLNG CSG Reserves and Resources in PJ’s
31 December 2012
Reserves/Resources Total GLNG Santos
[30%]
1P
2P
3P
1,797
5,376
6,823
539
1,613
2,047
2C
2P + 2C
1,638
7,014
491
2,104
References: Santos 2012 Reserves Report, 22 February 2013
PETRONAS
[27.5%]
494
1,478
1,876
450
1,929
Total
[27.5%]
494
1,478
1,876
450
1,929
The figures in Table 28 exclude Santos portfolio gas and third party gas supply to GLNG.
Santos has committed up to 750 PJ of portfolio gas to GLNG. Origin has executed with
GLNG a 10 year agreement for the supply of 365 PJ [100 TJ/day] commencing in 2015.
Santos has also increased its interest in the Combabula CSG Field [ATP 606P operated by
Origin Energy] increasing its 2P reserves there by 230 PJ. This gives GLNG access to a total of 1,345 PJ of 2P portfolio gas.
KOGAS
[15%]
270
807
1,024
246
1,052
Metgasco Limited [MEL]
Metgasco has a 100% interest in three tenements in the Clarence-Moreton Basin in Northern
New South Wales. The Company has interests in both conventional petroleum as well as
CSG. All of its independently certified reserves currently held by Metgasco are CSG from the
Walloon Coal Measures in Clarence-Moreton Basin in PEL’s 13 and 16.
Metgasco’s CSG reserves and resources at 31 December 2012 are outlined in Table 29.
Table 29
Metgasco CSG Reserves and Resources in PJ’s
31 December 2012
Reserves
1P
2P
3P
2C Contingent
Resource
2P + 2C
PEL 13
-
31
303
1,334
PEL 16
3
397
2,239
1,177
Total
3
428
2,542
2,511
1,365 1,574 2,939
Reference: Metgasco ASX release of 14 June 2011
Metgasco Quarterly Activities Report to 31 December 2012, 31 January 2013
Metgasco 2012 Annual Report, 10 October 2012
37

The Company has a large gas resource potential across its permit areas which it estimates to be as high as 24 Tcf as gas in place. Metgasco also estimates that the conventional gas resource in its Mackeller Structure in PEL 16 permit contains up to 2 Tcf of in situ gas.
Mitsui Group
The Mitsui Group, through its subsidiary Mitsui E&P Australia Pty Ltd, has interest in CSG permits in the Bowen and Galilee Basins. In the Bowen Basin, its principal area of activity is in the Dawson Valley and nearby areas.
Mitsui has a 49% interest in the Meridian SeamGas CSG operation [PL 94] in the Dawson
Valley at Moura which is operated by WestSide Corporation Limited which holds the other
51%. At the adjacent Paranui Project [ATP 769P], Mitsui has a 24.5% interest with WestSide being the operator with a 25.5% interest. QGC has the remaining 50% interest in the permit.
Also in the Dawson Valley, Mitsui has a 32.88% interest in the Mungi [PL94N] CSG Project and in the Harcourt and Lilyvale CSG Prospects [PLA 210/ATP 564P]. It has a 37.12% interest in the Timmy CSG Prospect [ATP 602P]. The balance of the interests in these permits at 31 December 2012 was held by Petro China International Investment Company Limited.
On 1 August 2012, PetroChina acquired the interests in these permits from Molopo Energy
Limited. PetroChina has become the operator of the permit areas.
Outside of the Dawson Valley area, Mitsui has a 24.5% interest in the Tilbrook and Mount
Saint Martin Prospects in the northern Bowen Basin [ATP 688P]. WestSide Corporation with a 25.5% interest in ATP 688P is the permit operator. QGC holds the remaining 50% interest in these prospects.
In the Galilee Basin, Mitsui has a 49% interest in two tenements [ATP’s 974P and 978P] which are operated by WestSide which it holds the other 51% interest.
Based on the published CSG reserves and resources held by WestSide Corporation for the
Meridian SeamGas CSG Project, as well as those announced by Molopo before the sale of its interests in Mungi, Bindaree, Harcourt, Lilyvale and Timmy Projects and Prospects, the net
CSG reserves and resources held by the Mitsui E&P at 31 December 2012 can be derived.
The gas reserves in the Meridian SeamGas CSG Project in which Mitsui E&P has a 49% interest, and which is operated by WestSide Corporation, are given in Table 30.
Table 30
Meridian SeamGas CSG Reserves in PJ’s
31 December 2012
Reserves Mitsui E & P WestSide Total
1P 45.3 47.2
2P 333 347
3P 747 777
Reference: Westside ASX announcement of 12 February 2013
92.5
680
1,524
38

The 3P CSG reserves in ATP’s 769P and 688P operated by WestSide, and in which
Mitsui E&P has a 24.5% interest, are detailed in Table 31.
Table 31
3P CSG Reserves in ATP’s 769P and 688P in PJ
31 December 2012
Permit
ATP 769P
ATP 688P
Mitsui E&P
24.5%
66
37
WestSide
25.5%
69
39
Total 103 108
Reference: WestSide ASX announcement of 16 February 2012
Westside 2012 AGM Presentation, 22 November 2012
QGC
50.0%
135
77
212
Total
270
153
423
The last CSG reserves held by the Mitsui and Molopo in the then Molopo operated areas in the Bowen Basin [PL 94N/ATP 564P and ATP 602P] were published by Molopo as at 31
December 2010. In the ensuing period to 31 December 2012, gas production at Mungi has been minimal while there were no additions or adjustments to gas reserves or resources. The gas reserves and resources at 31 December 2012 in the now PetroChina operated permits are the same as those announced by Molopo for 31 December 2010 and 31 December 2011.
These are given in Table 32.
Table 32
CSG Reserves in PetroChina operated Tenements in Bowen Basin in PJ’s
31 December 2012
Reserve
1P
2P
PetroChina
ATP 564P
67.1%
24
301
PetroChina
ATP 602P
62.9%
-
42
PetroChina
Total
24
343
Mitsui
ATP
564P
32.9%
12
147
Mitsui
ATP
602P
37.1%
-
25
Mitsui
Total
12
172
3P
2C
714
488
110
106
824
594
350
239
65
62
415
301
Reference: Molopo ASX announcement 31 January 2011, 2011 Annual Report, 14 September 2011
Molopo Investor Presentation, 1 May 2012
Overall
Total
36
515
1,239
895
Mitsui E & P’s total net CSG reserves and resources are presented in Table 33.This is a summation of Mitsui’s CSG reserves and resources from Tables 30, 31 and 32.
39

Reserve
1P
2P
3P
2C
Table 33
Mitsui E&P- Net CSG Reserves and Resources in PJ’s
31 December 2012
Meridian
SeamGas
45
333
747
-
Other
WestSide
Projects
-
-
103
-
PetroChina
Operated
Permits
12
172
415
301
Mitsui E & P
Total
57
505
1,265
301
Mitsui E&P has a 49% interest in ATP’s 974P and 978P in the Galilee Basin. These two tenements, in which WestSide has the remaining 51% interest, are operated by WestSide. The permits have an estimated CSG resource of 21 Tcf [21,950 PJ] as gas in place. Mitsui’s share in this prospective resource amounts to 10,755 PJ.
Molopo Energy Limited [MPO]
Molopo’s interest in CSG were in its Dawson Valley [PL 94N/PLA 210] and adjacent tenements [ATP 602P] and the Lilyvale Prospect further north in ATP 564P. Small quantities of CSG are produced [< 1 TJ/d] at Mungi in PL 94N from the Baralaba Coal Measures of the
Bowen Basin. This gas is on sold to and processed by the Meridian SeamGas Project operated by WestSide Corporation.
On 1 November 2012, Molopo’s interests in the Dawson Valley and Lilyvale permits were acquired by PetroChina International. PetroChina subsidiary Harcourt Petroleum NL, formerly Lowell Petroleum NL took over as project operator. Harcourt has a 67.12% interest in the Mungi Project [PL 94N] and in ATP 564P and a 62.88% interest in ATP 602P [Timmy
Project]. Mitsui E & P holds the remaining interests.
Details of the CSG reserves and resources held by Harcourt Petroleum at 31 December 2012 are presented in Tables 38 and 29 in the section on Harcourt Petroleum.
Origin Energy Limited [ORG]
Origin Energy Limited has extensive CSG and conventional gas reserves and resources across
Eastern Australia. The CSG tenements operated by Origin and which have certified reserves and resources are all located within the Bowen and Surat Basins. The company has some CSG prospective resources in its Galilee Basin permit areas. All of the Company’s CSG reserves and resources, with the exception of the Ironbark Prospect [ATP 788 P], have been allocated to APLNG Project, a JV between ConocoPhillips, Origin and Sinopec for use by the Group’s
Curtis Island LNG Project. The conventional gas reserves from Origin’s 50% interest in the
Denison Trough were also allocated to APLNG.
Details of the CSG reserves and resources held by APLNG and Origin’s share at 31December
2012 are presented in Table 34
40

Reserves [1]
Table 34
APLNG CSG Reserves and Resources in PJ’s
31 December 2012
APLNG
Total
ConocoPhillips
[37.5%]
Origin Energy
[37.5%]
Sinopec
[25.0%]
2P 13,053 4,895 4,895 3,263
3P
Resources [2]
2C
15,973
3,825
5,990
1,434
5,990 3,993
957 1,434
3C 9,829 3,686 3,686 2,457
2P + 2C 16,878 6,329 6,329 4,220
References: Origin Energy: 2012 Annual Reserves Report, 31 July 2012.
Origin Energy: Exploration and Production Report, Quarter ending 31 December 2012, 31 January 2013
Origin has 2P CSG reserves of 178 PJ and 889 PJ of 3P reserves in ATP 788P, the Ironbark
Prospect, in the Surat Basin. This tenement is held 100% by Origin and it is not part of the
APLNG Joint Venture.
The total net CSG reserves held by Origin Energy at 31 December 2012 are listed in Table 35.
Table 35
Origin Energy – Net CSG Reserves and Resources in PJ’s
31 December 2012
Origin Total Reserves/Resources
2P
3P
2C
3C
APLNG [37.5%]
Share
4,895
5,982
1,434
3,686
Ironbark [100%]
178
889
-
-
2P + 2C 6,329
Reference: Origin Energy 2012 Annual Reserves Report 31 July 2012
-
5,073
6,871
1,434
3,686
6,507
In addition to the CSG reserves at 31 December 2012, APLNG had net conventional gas reserves of 37 PJ of 2P reserves and 53 PJ of 3P reserves. These conventional gas reserves are in the Denison Trough Gas Fields operated by Origin on behalf the APLNG - Santos 50/50 joint venture.
41

Petrel Energy Limited [PTL]
Petrel Energy Limited is the restructured and renamed Orion Petroleum Limited [OIP]. The change occurred in January 2012. Petrel had interests in PEL’s 6 [22.5%], 427 [25.0%] and
428 [20.0%] in the Northern Gunnedah and the overlying Southern Surat Basins in Northern
New South Wales. These permits were previously operated by Eastern Star Gas but that
Company’s interests were acquired by Santos Limited as part of the Santos acquisition of
Eastern Star Gas which was finalized in November 2011. 3C contingent resources for these permits were announced on 7 March 2011. There have been no announced additions or adjustments to the resource or gas production since this date.
Petrel’s net share of the CSG 3C contingent resources at 7 March 2011 are summarized in
Table 36.
Table 36
Petrel Energy – Net CSG Resources in PJ’s
Gunnedah Basin
7 March 2011
Tenement
PEL 6
PEL 427
PEL 428
Total
Reference:
Gross Contingent
Resource [3C]
153
751
107
PTL Interest
%
22.5
25.0
20.0
1,011 -
Orion Petroleum ASX announcement 7 March 2011.
Eastern Star Gas ASX announcement 7 March 2011.
Net Contingent
Resource 3C
34
188
21
243
On 21 June 2012, Comet Ridge Limited acquired the interests held by Petrel Energy Limited in PEL’s 6, 427 and 428 adding 243 PJ of 3C contingent resources to those already held by
Comet Ridge in these permits. These CSG 3C resources have been incorporated in the Comet
Ridge contingent resource figures for 31 December 2012 as outlined in Table 20.
PETRONAS
PETRONAS [Petroliam Nasional Berhad] has a 27.5% interest in the GLNG Project operated by Santos Limited. Santos holds 30% of the project while Total and KOGAS have interests of
27.5% and 15% respectively. The GLNG Project was sanctioned on 13 January 2011 for a 2 x
3.9 million tonne per year LNG facility on Curtis Island. Provision has been made for a third
LNG train to be constructed in the future. GLNG plans to commence LNG production in early
2015.
As part of the GLNG Agreement, Santos allocated CSG reserves from some of its Bowen
Basin and Surat Basin permits to the GLNG Project. Details of the certified reserves in the dedicated GLNG permit areas at 31 December 2012 are outlined in Table 37.
42

Table 37
GLNG CSG Reserves and Resources in PJ’s
31 December 2012
Reserves/Resources Total GLNG Santos
[30%]
1P
2P
3P
1,797
5,376
6,823
539
1,613
2,047
2C
2P + 2C
1,638
7,014
491
2,104
References: Santos 2012 Reserves Report, 22 February 2013
PETRONAS
[27.5%]
494
1,478
1,876
450
1,929
Total
[27.5%]
494
1,478
1,876
450
1,929
The figures in Table 39 exclude Santos portfolio gas and third party gas supply to GLNG.
Santos has committed up to 750 PJ of portfolio gas to GLNG. Origin has executed with
GLNG a 10 year agreement for the supply of 365 PJ [100 TJ/day] commencing in 2015.
Santos has also increased its interest in the Combabula CSG Field [ATP 606P operated by
Origin Energy] increasing its 2P reserves there by 230 PJ. This gives GLNG access to a total of 1,345 PJ of 2P portfolio gas.
KOGAS
[15%]
270
807
1,024
246
1,052
QGC Pty Limited
QGC Pty Limited, a BG Group Company subsidiary, is a major producer of CSG in the Surat
Basin with some tenement interests in the Bowen Basin. The company is developing the
Queensland Curtis LNG Project [QCLNG] on Curtis Island. It is a two train liquefaction facility with a total capacity of 8.5 million tones per year of LNG. First shipments are scheduled for mid 2014.
Since the acquisition of the Queensland Gas Company Limited, Sunshine Gas Limited, Roma
Petroleum NL and Pure Energy Resources Limited by the BG Group, only limited information on the CSG operations and reserves and resource development has been made public. The last detailed reserves figures released to the ASX by QGC were on 11 November
2008.
On 9 February 2012, BG Group in the UK released its Full Year Report for 2011 along with a presentation and a detailed discussion session on the 2011 year results. At the presentation and discussion, BG stated that at 31 December 2011 it had gross 2P gas reserves of 9.9 Tcf,
15.0 Tcf of 2P plus risked reserves [3P reserves?] and 25 Tcf of gross reserves and resources.
On 3 December 2012, BG Group Head of Global LNG was reported to state the QGC had 9.9
Tcf of 2P reserves, reserves and resources, including 2P reserves of 23 Tcf and additional possible [P3?] reserves of 8.2 Tcf in the Surat and Bowen Basins including 2.3 Tcf in deep tight sands in the Bowen Basin. The gas resource in tight deep sands is being included in the
BG Groups CSG reserves and resources until more specific information on the gas reservoirs becomes available.
These figures have enabled an estimate to be made of the gross CSG reserves and resources held by QGC at 30 June 2012. QGC have not made any further announcements regarding their gas reserves and resources. However for the second half on 2012, QGC is estimated to
43

have produced 24 PJ of sales CSG, including that used in the company’s 140 MW Condamine
Power Station.
While both the gas reserve and resource figures are gross and include the interests of the other participants in the Queensland Curtis LNG Project [QCLNG], they provide a reasonable measure of the reserves attributable to the BG Group led QCLNG project. The BG Group has a 50% interest in QCLNG Train 1 with CNOOC having the other 50%. CNOOC also has a
25% equity interest in reserves and resources of certain BG Group tenements in each of the
Surat and Bowen Basins. Details of the tenements in question and their reserves and resources have not been disclosed. BG Group has a 97.5% interest in QCLNG Train 2 with Tokyo Gas holding the balance.
The estimated gross CSG reserves and resources held by QCLNG at 31 December 2012 are given in Table 38.
Table 38
CSG Gross Reserves and Resources held by QCLNG
31 December 2012
Reserves
&Resources
30 June 2012
Tcf
PJ
Gas Production
6 months to 31
December 2012
[PJ]
1P
3.0
3,120
24
2P
9.9
10,350
24
3P
18.1
18,900
24
2C
13.1
13,700
-
Total Reserves and Resources
2P + 2C
23.0
24,050
-
31 December
2012
3,096 10,326 18,876 13,700
Notes: BG Group 2011 Full Year Results and Annual Strategy Update, 9 February 2012.
Martin Houston, BG Group Head Global LNG-Media Briefing Sydney 3 December 2012
24,026
Red Sky Energy Limited [ROG]
Red Sky Energy, at 31 December 2012, had a 30% interest in two permit areas in the
Clarence-Moreton Basin in Northern New South Wales. It is the operator of the permits. The
Company also has interests in tenements in the Southern Surat and Gunnedah Basins in New
South Wales and in the Galilee Basin in Queensland.
Red Sky posted its first CSG Reserves and Resources on 21 March 2011, all in its Clarence-
Moreton farm-in areas with Clarence Moreton Resources Pty Ltd [CMR]. There have been no further additions, deletions or adjustments to these reserves and resources since their initial announcement.
On 4 July 2012, ERM Power Limited entered into a farm-in agreement with Red Sky and
Clarence Moreton Resources to acquire up to 100% interest each in the Clarence Moreton
Basin Permits [PEL’s 457 and 479]. The initial phase of the farm-in was finalised on 5
44

December 2012 with ERM Power being assigned with an initial 10% interest in the permits and becoming project operator.
The coal seam gas reserves and resources in the Clarence-Moreton permits at 31 December
2012 in which Red Sky has an interest are presented in Table 39.
Table 39
Red Sky – CSG Reserves and Resources in PJ’s
31 December 2012
Reserve/Resource
2P
3P
3C
PEL
457
-
221
629
PEL 479
17
159
-
Gross
Total
17
380
629
Net Red
Sky
[20%]
3.4
76
126
CMR
[70%]
11.9
266
440
ERM
Power
[10%]
1.7
38
63
Reference: Red Sky ASX announcements, 21 March 2011, 30 May 2012 and 4 July 2012
Santos Limited [STO]
Santos Limited holds significant gas reserves and resources in Eastern Australia. They include conventional gas in the Bowen, Cooper-Eromanga, Gippsland, Otway and Surat Basins as well as very low permeability gas in tight and shale formations in the Cooper Basin. Santos also has significant CSG reserves and resources in the Bowen, Gunnedah and Surat Basins.
Some of these reserves and resources are dedicated to the GLNG Project as outlined in Table
23 and reproduced here as Table 40.
Table 40
GLNG - CSG Reserves and Resources in PJ’s
31 December 2012
Reserves/Resources Total GLNG Santos
[30%]
1P
2P
1,797
5,376
6,823
539
1,613
3P
2C
2P + 2C
1,638
7,014
2,047
491
2,104
References: Santos 2012 Reserves Report, 22 February 2013
PETRONAS
[27.5%]
494
1,478
1,876
450
1,929
Total
[27.5%]
494
1,478
1,876
450
1,929
The figures in Table 42 exclude Santos portfolio gas and third party gas supply to GLNG.
Santos has committed up to 750 PJ of portfolio gas to GLNG. Origin has executed with
GLNG a 10 year agreement for the supply of 365 PJ [100 TJ/day] commencing in 2015.
Santos has also increased its interest in the Combabula CSG Field [ATP 606P operated by
Origin Energy] increasing its 2P reserves there by 230 PJ. This gives GLNG access to a total of 1,345 PJ of 2P portfolio gas.
KOGAS
[15%]
270
807
1,024
246
1,052
The independently certified 2P CSG reserves held by Santos in its own right, including its
GLNG share at 31 December 2012, are presented in Table 41. Santos in its annual reserves
45

report does not provide details of its 1P and 3P gas reserves. However in some recent presentations on its activities in Eastern Australia, Santos has provided information on the 2C gas resources across a number of Basins including that for CSG in the Gunnedah and Bowen-
Surat Basins.
Table 41
Net CSG Gas Reserves and Resources held by Santos Limited in PJ’s
31 December 2012
Reserve/Resource
2P
2C
2P + 2C
References:
Notes:
Qld CSG [1]
307
NSW CSG [2]
1,141
GLNG [3]
1,613
1,183
1,490
2,768
3,909
491
2,104
[1] Santos: 2012 Reserves Statement, 22 February 2013
[1] Santos CSG outside of GLNG commitments
[2] Includes CSG reserves following Eastern Star Gas acquisition
[3] Santos share [30%] of GLNG reserves
Total
3,061
4,442
7,503
In addition to the CSG 2P reserves, Santos at 31 December 2012 held a further 1,621 PJ of 2P conventional gas reserves in Eastern Australia. Details are given in Table 42.
Table 42
Santos – Eastern Australian Conventional 2P Gas Reserves
31 December 2012
Basin
Cooper
Gippsland/Otway
Surat
2P [PJ]
1,213
367
41
Total 1,621
Reference: Santos 2012 Reserves Statement, 22 February 2013
Following the acquisition of Eastern Star Gas by Santos, the Company acquired 2C contingent resources held within the Narrabri Gas Project permit area [PEL 238]. These resources were re-allocated with 80% going to Santos and the other 20% Energy Australia.
Details of the distribution of the gas reserves and contingent resources in the Gunnedah Basin permit areas are outlined in Table 43
Table 43
Distribution of Gas Reserves and Resources - Gunnedah Basin Permits
[PJ’s]
31 December 2012
Reserves Gross Santos
[80%]
1,141
Energy Australia
[20%]
285 2P
Resources
2C
2P + 2C
1,427
3,531 [1]
4,958
2,768 692
3,909 977
Note 1. Includes 2C contingent resource held by Comet Ridge which has interests in Santos operated
PEL’s 6, 427 and 428
Reference: Santos Presentations 5 October 2012, 12 November 2012
Santos, in recent presentations has stated that it hold to its own account over 10,800 PJ of gas reserves and resources in Eastern Australia outside of GLNG. These comprise approximately
46

5,400 PJ of CSG, 3,100 PJ of conventional gas while the company has over 2,300 PJ of 2C resource in tight, unconventional gas in the Moomba-Big Lake region of the Cooper Basin.
Senex Energy Limited [SXY]
Senex Energy Limited, formerly Victoria Petroleum NL, has interests in four CSG tenements in the Surat Basin. The Company has received initial gas reserves for the Don Juan Project
[ATP’s 593P & 771P] in which Senex is the project operator. Senex has a 45% interest in these two permits areas with Arrow Energy holding the other 55%.
The Company also has a 20% interest in Paradise Downs [PL 171] and a 30% interest in
Peebs [ATP 574P] in the Surat Basin and in which QGC Pty Limited holds the balance and is the tenement operator. During the second half of 2012, an eight hole appraisal program was undertaken by QGC across these two adjacent permits.
Table 44 outlines the net CSG reserves and resources position of Senex Energy at 31
December 2012.
Table 44
Net CSG Reserves and Resources of Senex Energy in PJ’s
Surat Basin
31 December 2012
Project 2P 3P
Don Juan 45
112
89
269 QGC Operated
Tenements
Total 157 358
Reference: Senex Energy [Victoria Petroleum] ASX announcement of 28 January 2011
Senex Energy 2012 Annual Report, 24 September 2012
Senex Energy ASX Announcement 25 February 2013
2C
-
240
240
In addition to its CSG reserves, Senex Energy has conventional petroleum reserves in the
Cooper-Eromanga Basins as well as a significant unconventional gas resource in the carbonaceous shales, tight conventional reservoirs and deep coals in the Cooper Basin.
Sinopec
At 31 December 2012, Sinopec had a 25% interest in the APLNG Project along with JV partners ConocoPhillips and Origin Energy, each of which held a 37.5% interest. The share of
CSG reserves and resources held by APLNG at 31 December 2012 is outlined in Table 10 and reproduced in Table 45.
47

Reserves [1]
Table 45
APLNG CSG Reserves and Resources in PJ’s
31 December 2012
APLNG
Total
ConocoPhillips
[37.5%]
Origin Energy
[37.5%]
Sinopec
[25.0%]
2P 13,053
15,973
4,895
5,990
4,895
5,990
3,263
3,993 3P
Resources [2]
3,825 957 2C
3C
1,434
3,686
1,434
3,686 9,829
16,878
2,457
4,220 2P + 2C 6,329 6,329
References: Origin Energy: 2012 Annual Reserves Report, 31 July 2012.
Origin Energy: Exploration and Production Report, Quarter ending 31 December 2012, 31 January 2013
Stanwell Corporation
In 2005, the Queensland electricity power generator CS Energy Limited farmed-in to take a
50% interest in two Arrow Energy operated tenements, Kogan North [PL 194] and Kogan
East [ATP 676P], both in the Surat Basin.
On 1 July 2011, the Queensland Government owned power generation sector was restructured and the assets were redistributed between the reorganized generating groups, CS Energy and
Stanwell Corporation. As part of the restructuring, the Swanbank and Mica Creek Power
Station operations were transferred to Stanwell Corporation. This included the assignment to
Stanwell of Gas Supply Agreements, gas transmission agreements and the equity interest in
Kogan North and Kogan East previously held by CS Energy.
Stanwell has recently acquired a 5% interest in the Mahalo Project [ATP 337P] from Comet
Ridge Limited. This acquisition gives Stanwell 55 PJ of 3C resource. Stanwell has the option to increase its interest in Mahalo up to 40%.
Based on figures for remaining 2P reserves for CSG for the Surat Basin at 30 June 2012 published by the Queensland Department of Natural Resources and Mines on 16 November
2012, Kogan North [PL 194] and Kogan East [ATP 676P] had gross 2P CSG reserves of 288
PJ. The net 2P gas reserves held by Stanwell at 30 June 2012 in these two permits was 144 PJ.
Adjusting for Stanwell’s share of gas production from Kogan North for the six months to 31
December 2012 of 1 PJ, the remaining 2P CSG reserves in PL 194 and ATP 676P at 31
December 2012 were 143 PJ.
No information on the 3P reserves or 2C contingent resources held by Stanwell over its Surat
Basin interests is available.
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Total
Total has a 27.5% interest in the Santos operated GLNG Project. Details of Total’s attributed gas reserves and resources at 31 December 2012 as part of its participation in GLNG are outlined in Table 46.
Table 46
GLNG - CSG Reserves and Resources in PJ’s
31 December 2012
Reserves/Resources Total GLNG Santos
[30%]
1P
2P
3P
1,797
5,376
6,823
539
1,613
2,047
2C
2P + 2C
1,638
7,014
491
2,104
References: Santos 2012 Reserves Report, 22 February 2013
PETRONAS
[27.5%]
494
1,478
1,876
450
1,929
Total
[27.5%]
494
1,478
1,876
450
1,929
The figures in Table 46 exclude Santos portfolio gas and third party gas supply to GLNG.
Santos has committed up to 750 PJ of portfolio gas to GLNG. Origin has executed with
GLNG a 10 year agreement for the supply of 365 PJ [100 TJ/day] commencing in 2015.
Santos has also increased its interest in the Combabula CSG Field [ATP 606P operated by
Origin Energy] increasing its 2P reserves there by 230 PJ. This gives GLNG access to a total of 1,345 PJ of 2P portfolio gas.
KOGAS
[15%]
270
807
1,024
246
1,052
Toyota Tsusho
Toyota Tsusho has a 15% interest in the Woleebee Creek CSG Project [ATP 651P] in the
Surat Basin. The permit is operated by QGC.
QGC has not published any CSG reserve or resource information on a permit basis. However the Queensland Department of Natural Resources and Mines has published details of remaining CSG 2P reserves for ATP 651P at 30 June 2012 as 21,665 Mm3 or 811 PJ. There has been no gas production from this tenement or any subsequently announced additions or adjustments. This gives Toyota Tsusho’s share at 31 December 2012 of the 2P reserves in
ATP 651P as 122 PJ.
In addition to the CSG reserves, Toyota Tsusho has an 11.25% interest in the Bass Gas conventional gas and condensate project. Its share of 2P conventional reserves in this project at 31 December 2012 was 28 PJ.
WestSide Corporation Limited [WCL]
WestSide Corporation has CSG interests in the Meridian SeamGasProject [PL 94] where it is the operator of the producing gas field in the Dawson Valley near Moura. It is also the
49

operator of the nearby Paranui Project [ATP 769P] and the Tilbrook Project in the Northern
Bowen Basin [ATP 688P].
At Meridian, WestSide has a 51% interest with Mitsui E & P holding the other 49%. The
Paranui and Tilbrook Projects are a joint venture between WestSide, Mitsui E & P and QGC.
The interests in the Paranui and Tilbrook projects are WestSide - 25.5%, Mitsui E & P –
24.5% and QGC – 50.0%.
The gas reserves at 31 December 2012 in the Meridian SeamGas CSG Project are given in
Table 47.
Table 47
Meridian SeamGas CSG Reserves in PJ’s
31 December 2012
Reserves WestSide Mitsui E & P Total
1P 47.2 45.3
2P
3P
347
777
References: Westside ASX announcement of 12 February 2013
333
747
92.5
680
1,524
In addition to the above independently certified CSG reserves, WestSide has announced that following an internal resources review, it has an estimated 1,552 PJ as gas in place at
Meridian at 31 December 2012.
In addition to the above reserves, WestSide has established 3P reserves at both Paranui and at
Tilbrook. Table 48 provides details of the 3P CSG reserves at Paranui and at Tilbrook.
Table 48
3P CSG Reserves in ATP’s 769P and 688P in PJ
31 December 2012
Permit
ATP 769P
ATP 688P
WestSide
25.5%
69
39
Mitsui E & P
24.5%
66
37
Total 108 103
Reference: WestSide ASX announcement of 16 February 2012
QGC
50.0%
135
77
212
Total
270
153
423
The overall net CSG reserves held by WestSide Corporation at 31 December 2012 are shown in Table 49.
50

Table 49
Net CSG Reserves of WestSide Corporation in PJ’s
31 December 2012
Reserve Meridian
SeamGas
[51%]
47
Paranui
[25.5%]
Tilbrook
[25.5%]
1P
2P
-
-
-
- 347
3P 777 69 39
References: WestSide ASX announcements of 16 February 2012 and 12 February 2013.
Net Westside
47
347
885
WestSide is the operator of two permits in the Galilee Basin where it has a 51% interest with
Mitsui E & P holding the balance. Only limited exploration has been undertaken across the two permits [ATP’s 974P & 978P] and no CSG reserves have been established. However
WestSide has given estimates for its Gas In Place for its Galilee Basin permits at up to 20 Tcf
[20,980 PJ] gross.
Grahame Baker
RLMS
13 September 2013
399-East Aust CSG Reserves & Resources-31 Dec 2012
51