Annual Summary and Expenditure Report on Mining Activities and Production Operations The information in this form is required under regulations 39 and 41 of the Crown Minerals (Petroleum) Regulations 2007; specifically the items outlined in Parts 2 and 3 of Schedule 6. The permit holder must supply this information to New Zealand Petroleum & Minerals no later than 31 March following the end of each calendar year in which the permit was in force. Where information prescribed in this form (and the relevant data templates) exceeds that of the aforementioned regulations, those data are requested and must be supplied under section 90(3)(b) of the Crown Minerals Act(1991) as marked with an asterisk.. If there is not (and has never been) production under the permit, please discontinue and complete the TEMPLATE r38 & r41 Report form, otherwise please follow the instructions outlined in the boxes and add or delete lines from paragraphs and tables as required. Name your template: PXY ZZZZZ ASR 2015 where X denotes the permit type prospecting (P), exploration (E) or mining (M); Y corresponds to licence (L) or permit (P); and ZZZZZ is the permit number. The completed form and any relevant attachments should be uploaded to New Zealand Petroleum & Minerals, at: https://permits.nzpam.govt.nz/aca/. Permit holder name and address Permit number Reporting period From To Mining Permit OR Mining Licence Permit type 1 January 2015 31 December 2015 Operation name Please change dates if the permit was awarded after 1 January 2014 or if the permit ended before 1 December 2014. Document control Name Position Phone Email e.g. Corey Burgess Geologist 04 470 2342 Corey.burgess@mbie.govt.nz Part The applicable submission document (or part thereof) All Role Author, reviewer etc. Author Please note that there is a final sign off at document end. This list will be used for clarification of certain parts, if required. 2016 Version 1.001 Page 1 of 12 Data templates Please complete TEMPLATE Production Data (see attached) to report the following annual summary items: 1. For each well, reservoir, and field, daily, monthly and annual calculated, measured and cumulative production rates. 2. For each well, reservoir, and field, the number of days or part days that they were in production. 3. For each well, reservoir, and field, the calculated daily and monthly gas and water injection rates. 4. For each well, the number of days or part-days on which gas and water injection occurred. 5. For each well and reservoir, the watercut, and the gas to oil, and condensate to gas ratios. 6. For each well, if measured, the flowing tube head and flowing down-hole pressures. 7. The fuel gas or oil used and gas or oil flared in extracting petroleum. 8. If measured at any location, its oil, condensate, and gas gravity (using the American Petroleum Institute scale). 9. For each well, if measured, the static tube head and static down-hole pressures. 21. The daily oil, condensate, gas, and water production figures, per well, from any appraisal activities. 24. The cumulative gas and water injection volumes since reservoir and well injection commenced. Please complete TEMPLATE Resources and Reserves (see attached) to report the following annual summary items: 18a. A report on petroleum initially in place, which includes estimates of oil initially in place and natural gas initially in place; and 18b. A report of P90, P50, and P10, or proven, and proven plus probable, and proven plus probable plus possible estimates (1P, 2P, and 3P estimates) for remaining and ultimately recoverable oil, condensate (C5+), liquefied petroleum gas (propane plus butane) and gas (methane and ethane)(including an explanation of the methodology used to calculate the estimates); 18c A report on C50 estimates (2C estimates) for contingent resources; 18f. The permit holder's estimates of oil initially in place and gas initially in place. If there is (or has) been production under the permit, both of the above templates must be completed and submitted. Information to be included in annual report under regulation 39 Production data 1. to 9. Production figures For each well, please complete a separate r39 Prod tab in the TEMPLATE Production Data Excel spreadsheet. Completion intervals 10. For each well, the completion and perforation intervals. Complete the table below for each active well in the permit. Valid types include: Open Hole Liner Completion Slotted liner 2016 Version 1.001 Cased Hole Single Completion Page 2 of 12 Screen and liner Multiple Completion Cemented liner Alternate Completion Slim Hole Completion Well name Insert well name in the column below e.g. Alpha-1 Type Use one of the above values Slotted liner Depth to Base* Formation* Depth to top* (MAH) Mangahewa Formation 1700 Depth to Base* (MAH) Depth to top* (TVD) (TVD) 1800 1450 1500 Additional information: Include additional information in the space below. Insert your response here Well suspensions 11. For each well, any suspension or downtime and the reasons for it. Complete the tables below for any wells with production downtime in 2015. Valid statuses include: Shut-in Suspended Permanently Abandoned Well name Status From To Insert well Use one of name in the Reason the above (dd/mm/yy) (dd/mm/yy) column values below e.g. Alpha-1 Shut-in 15/05/2014 20/01/1900 Pressure build up study Additional information: Include additional information in the space below. Insert your response here 2016 Version 1.001 Page 3 of 12 Well-site activities 12. Any workovers and their purpose Complete the tables below for any activities occurring in 2015. Complete th Workover activities Workovers Insert well name e.g. Alpha-1 Purpose Outcome* Descale Flow increase of 2 barrels per day Start* End* (dd/mm/yy) (dd/mm/yy) 1/03/2014 7/03/2014 Start* End* Depth* Formation* Mangahewa Formation (MAH) 1800 Additional information: Include additional information in the space below. Insert your response here. Stimulation activities Stimulation* Insert well name e.g. Alpha-1 Purpose* Outcome* Increase permeability Flow increase of 2 barrels per day (dd/mm/yy) (dd/mm/yy) 1/03/2014 7/03/2014 Depth* Formation* Mangahewa Formation (MAH) 1800 Additional information: Include additional information in the space below. Insert your response here. 2016 Version 1.001 Page 4 of 12 Field investigations and surveys 13 16 A summary of— (a) the production, development, and exploration activities undertaken in the field or as studies; and (b) the results of those activities, including— (i) any significant revised views on the geology and geophysics (including any in relation to geological or seismic interpretations or models, structure, and stratigraphy); and (ii) any petrophysical interpretation carried out; and (iii) reservoir fluid parameters; and (iv) reservoir performance, reservoir model, production, and injection profiles; and Details of any surveys undertaken during the report period. Your response should include a summary of any geological, gravity, magnetic, geochemical surveys or literature reviews undertaken as either fieldwork or desktop studies. Please add any figures or diagrams you wish and refer to regulation 44 for additional guidance. If a report has been submitted to NZP&M, please reference the Petroleum Report number in your response. Insert your response here. Seismic - acquisition 13 A summary of — (cont’d) (v) any seismic surveys carried out in relation to the permit, including,— (A) if a two-dimensional survey, the total line kilometres acquired; or (B) if a three-dimensional survey, the total area surveyed and the grid size Complete the tables below, please identify any multi-client data purchased for submission to the chief executive as part of the permits work programme by suffixing the survey name with (MC Data). 2D Total for two-dimensional surveys Insert survey name in the column below Permit total e.g. Cook Strait 2D Acquired (km) 0 300 Full Fold Acquired (km) 0 250 3D 2016 Version 1.001 Page 5 of 12 Total for three-dimensional surveys Insert survey name in the column below Permit total e.g. Cook Strait 3D Acquired (km) 0 300 Full Fold Grid Size Acquired (km) (m by m) 0 250 25 by 25 Additional information: Include additional information in the space below. Insert your response here Seismic - reprocessing 13 A summary of — (cont’d) (vi) any reprocessed geophysical data obtained, including details of the total line kilometres processed Complete the tables below. 2D Total for two-dimensional surveys Insert survey name in the column below Permit total e.g. Cook Strait 2D Reprocessed (km) 0 300 Total for three-dimensional surveys Insert survey name in the column below Permit total e.g. Cook Strait 3D Reprocessed 3D (km 2 ) 0 300 Additional information: Include additional information in the space below. Insert your response here 2016 Version 1.001 Page 6 of 12 Facilities 14. A status report on any facilities under design or construction or that have been commissioned. Your response should include a high level summary of any facilities under design or construction or that have been commissioned during the calendar year. Insert your response here. Drilling activities 15. Details of any drilling activities. Complete the table below. If there have been more than five new wells (please include any planned or unplanned sidetracks as a new well), please duplicate the below table in its entirety in the space provided. 2016 Version 1.001 Page 7 of 12 Well Name Well type Exploration, Appraisal, Production or Injection Top hole latitude NZGD 2000 Top hole longitude NZGD 2000 Bottom hole latitude NZGD 2000 eg. Alpha-1 ST1 Exploration 41° 14' 53.78 174° 45' 00.32 41° 14' 53.50 Bottom hole longitude NZGD 2000 Spud date Total depth date Completion date Rig release date 174° 45' 00.68 1/02/2014 7/02/2014 14/02/2014 21/02/2014 Additional information: Include additional information in the space below. Insert your response here 2016 Version 1.001 Page 8 of 12 Reference Depth elevation reference Total Total (metres e.g., RKB, depth depth above Rotary (MAH) (TVD) Mean Sea Table Level) RKB 233 1800 1500 Target formation Mangahewa Formation Sidetrack kick-off Parent depth well (MAH) 300 Alpha-1 Mining operations 17. An outline of proposed mining operations to be undertaken in the next year, including— (a) the proposed production profile for the projected life of the field (in tabular and graphic form); and (b) an indicative maximum deliverability profile using the installed infrastructure; and (c) the proposed production and reservoir management programme Complete the tables below outlining the proposed production profile for the projected life of the field. Gas (Bcf) LPG (kt) Condensate (mmbbl) Oil (mmbbl) 20 60 50 70 e.g. 2014 2015 2016 2017 2018 2019 2020 20XX Please insert a graph outlining the proposed production profile for the projected life of the field. Insert your graph here Please provide an indicative maximum deliverability profile using the installed infrastructure. Insert your response here Reserves and resources 18(a-c, f) Petroleum initially in place and gas initially in place estimates Please complete the TEMPLATE Resources and Reserves Excel spreadsheet. If the permit contains multiple reservoirs, please provide values for each reservoir. 18(d) a full explanation of why contingent resources are classified as contingent (including a description of development and cost thresholds); and 18(e) a copy of any report or any field study undertaken that results in a revised estimate of recoverable or inplace petroleum 2016 Version 1.001 Page 9 of 12 Your response should include a description of classification, development and cost thresholds, if known. Attach with this report other relevant reports or field studies as required under 18(e). Insert your response here Methodology and supplementary figures 19. 20. An explanation of the methodology for calculating any of the data referred to in clauses 1 to 18 if— (a) an explanation of the methodology has not been supplied in previous reports under regulation 39; or (b) the methodology has not previously been used in relation to the permit. Supplementary figures and diagrams, if appropriate Your response should describe the methodology to calculate the reserves and resources. Include any figures or diagrams you may wish to add for any section of this report. Insert your response here Well test figures 21. The daily oil, condensate, gas, and water production figures, per well, from any appraisal activities For each well, please complete the relevant parts of r39 Prod tab in the TEMPLATE Production Data Excel spreadsheet. Iwi engagement report 22. The iwi engagement report required under section 33C of the Act Section 33C of the Crown Minerals Act 1991 states that every holder of a Tier 1 permit must provide to the Minister an annual report of the holder’s engagement with iwi and hapū whose rohe includes some or all of the permit area or who otherwise may be directly affected by the permit. The report should also note any engagement with or notification to iwi or hapū that has taken place as a requirement of any other legislation. The purpose of the report is to encourage engagement with relevant iwi and hapū in a positive and constructive manner and will enable NZP&M to monitor progress in this regard. It is intended to be a high level indication of how iwi engagement is progressing, not a detailed account of each transaction. Of course, sharing examples and details is welcomed, but not required. Your report should describe your engagement with iwi and hapū over the previous calendar year regarding permit activities. Where applicable, it should also note why there has not been any engagement. Please note the following points regarding the assessment of the report. 2016 Version 1.001 Page 10 of 12 NZP&M will monitor the engagement with iwi and hapū and this will be an agenda item in the annual review meetings NZP&M will assess whether the views of iwi and hapū are included in the report and will take into account any comments received from iwi and hapū NZP&M may discuss with iwi and hapū the outcome of the review of the report. Insert your response here. System deliverability 23. A report of minimum, average, and maximum daily and hourly system deliverability for gas using the installed infrastructure. Complete the table below. Minimum GJ Cubic feet GJ Average Cubic feet Maximum GJ Cubic feet Hourly Daily Additional information: Include additional information in the space below. Insert your response here Injection volumes 24. The cumulative gas and water injection volumes since reservoir and well injection commenced For each well, please complete the relevant parts of r39 Prod tab in the TEMPLATE Production Data Excel spreadsheet. 2016 Version 1.001 Page 11 of 12 Information to be included in annual report under regulation 41 on expenditure incurred under permit Expenditure Information to be included in annual report under regulation 41 on expenditure incurred under permit Complete the tables below where the figures are in NZD and inclusive of GST. Activity Exploration drilling Including any re-entries and side-tracks Appraisal drilling Including any re-entries and side-tracks Development drilling Including any re-entries and side-tracks Expenditure $NZD 4 Seismic reprocessing $ 5 Seismic acquisition This includes the licencing of any multi-client data $ 6 Geological and geophysical technical analyses $ 1 2 3 7 8 Permit administration Such as annual fees, application fees, and general administration Environmental regulation This includes costs associated to any resource/marine consent application and subsequent conditions, as well as other environmental administration $ $ $ $ $ 9(a) Operating expenditure for production activities* $ 9(b) Capital expenditure for production activities* $ All amounts should be entered in $NZ (GST included). Include permit fees and unattributed time in permit admin and any planning time/costs with the related activity. Values required by 9(a) and 9(b) are required by regulation 41 for mining permits; and the section 90(3)(b) request for exploration permits. Declaration I declare that any information provided in this submission is true and correct to the best of my knowledge and that I am authorised to make this submission on behalf of the permit participant(s). Print name: Position: Company: Date: 2016 Version 1.001 Page 12 of 12