Eastern Australian Gas Market

Market Segments

Market Summary• Stable demand profile• Over supplied market from Bass Straight

and Cooper Basin• Pricing (A$2 - ‐> A$3/GJ)

Residential and commercial

Gas powered generation

Large industrial

2 Bcf / Day

Moomba Brisbane

Sydney

Melbourne

Hobartgas pipelines

Mount Isa

Adelaide

GladstoneCooper Basin

Gippsland Basin

Bowen and Surat Basin

Market Changes

• Discovery of significant CSG reserves (Bowen and Surat Basin) the enabler of a massive LNG investment program

• New LNG plants to connecton-shore gas resources to global energy markets

Imminent Demand Shock

2015 2020?

A$2 - $3 / GJ

Est. A$6 - $7/ GJ

Est. A$8 - $10 / GJ

Historic Transition Steady State

Steady State Drivers• LNG netback price (oil linked pricing)••

Increasing supply optionsCompetitive cost environment

Implications for gas prices

Equivalent to 20yr supply for one

4 million tonneper annum LNG train

PEL 96

PEL 94

PEL 95

Moomba

PELA 640

4.5 Tcfprospective

resource (PEL 96) Equivalent to

0.5 Bcf/day over 25 years supply

profile

Project Status

• Large gas resource• Sustained gas flows to surface• Low well capex• Establish commerciality – Q2/Q3 2015

Strike Energy – Southern Cooper Basin Gas Project

0.5 Bcf/day