Leverage exposure to conventional, shale and tight oil and gas exploration

April 2012

Disclaimer

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This presentation contains forward looking statements that are subject to riskfactors associated with oil and gas businesses. It is believed that theexpectations reflected in these statements are reasonable but they may beaffected by a variety of variables and changes in underlying assumptions whichcould cause actual results or trends to differ materially, including but not limitedto: price fluctuations, actual demand, currency fluctuations, drilling andproduction results, reserve estimates, loss of market, industry competition,environmental risks, physical risks, legislative, fiscal and regulatorydevelopments, economic and financial market conditions in various countriesand regions, political risks, project delay or advancement, approvals and costestimates.

All references to dollars, cents or $ in this presentation are to AUD currency,unless otherwise stated.

Corporate Snapshot• Shares on issue: 3,026m

• Market Cap: $54m (1.8c)

• Group Cash: $4.7m (at 31 March, $2.4m net to TSV)

• Debt: $7 million facility; drawn down $2 million

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Board of Directors Role

Bill Bloking Non Executive Chairman

Stephen Keenihan Managing Director

Brett Mitchell Executive Director

Will Barker Non Executive Director

Andrew Leibovitch Non Executive Director

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Apr‐11 May‐11 Jun‐11 Jul‐11 Aug‐11 Sep‐11 Oct‐11 Nov‐11 Dec‐11 Jan‐12 Feb‐12 Mar‐12

Million Shares

Closing Price (A$)

Daily Volume Traded On‐Market Daily Close Price

13.50%10.50%

10%

10%8%8%

40%

Craig Burton

Stephen Keenihan

Argonaut Investments

Charles Morgan

Brent Villemarette

Russell Stephenson

Others

The Assets

• Four Key Projects in Unconventional Plays– Warro Gas Project in Western Australia: 35-55% of ~40,000 gross acres

– Duvernay Shale and Rock Creek Project in Alberta, Canada: 34% of 84,500 acres

– Genesee tight oil project Alberta: 50% of 39,000 acres

– Carnaby Conventional and unconventional Oil and Gas Projects in British Columbia: 55% of 70,000 acres

• Land Acquisition Completed- Aggressive Drilling Program across all Projects in 2012

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Management Team

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TranservStephen KeenihanBrett Mitchell

Brent VillemaretteJo‐ann Long

CarnabyBil MathesonGarth Nicolson

Grant OhGord Oliver

WomaStephen Keenihan

Terry MeekMarcel Zowtuk

GeneseeTerry MeekJohn ThortonAl Pickering

Marcel Zowtuk

AJVMako

Terry MeekAl Pickering

Transerv Drilling Program & Outcome

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Location  TSV interest  Drilling Commencement   Well type  Target Depth 

Reserveexpectation Gross Resource Cost to TSV

A$000  Current Status 

per well Opportunity Warro 

Warro‐5  35% 1st qrt 2013  vertical  4200mRT  N/ATo confirm approx 3.2 

TCF 1.1 TCF net

Nil proposed

Warro‐6  35% 2nd qrt 2013 vertical 4250mRT  N/A Nil  proposed

Warro‐7  35% 2nd qrt 2013 vertical 4300mRT  N/A Nil proposed

Carnaby Energy 

Belloy‐1  25% 3rd qrt 2012  horizontal 1800mRT+1000m hor 200k bbl 800k oil   475 identiffied

Conventional‐1 Gething 25% 3rd qrt 2012  vertical 1000mRT 75k bbl 600k oil 275 identified

Conventional‐2 tba 25% 4th qrt 2012  vertical 1300mRT 500k oil 275 under 

review

Conventional‐3 tba 25% 5th qrt 2012  vertical  1500mRT 500k oil 275 under

review

Montney  55% 4th qrt 2012  horizontal  1900mRT+1000m hor N/A 36,000k oil 2420 under

review

Nordegg  55% 4th qrt 2012  core well 1000mRT N/A 4,000 550 underreview

Alberta JV 

Duvernay‐1  6.80% 2/3 rd qrt 2012  vertical 3500Mrt N/A cored well Nil proposed

Duvernay‐2  6.80% ~4th Qrt 2012  horizontal  3500mRt+1500m hor 450k bbl 80,000k boe Nil pending

vretical

Rock Creek 1  34% 3rd qrt 2012  horizontal  2500mRT+1500m hor 200k boe 33,000k boe 1530 under

review

Rock Creek‐2  25% of 34% 4th qrt 2012  horizontal  2500mRT+1500m hor 200k boe 380 under

review

Genesee JV 

Mannville‐1  50% 3rd qrt 2012  horizontal 1500mRT+1000m hor 200k bbl 1100 proposed

Mannville‐2  50% 4th qrt 2012  horizontal 1500m+10000m hor 200k bbl 23,000k bbl 1100 identified

The Warro Gas Project

• Warro located 200km north of Perth in the Perth Basin

• Onshore gas field discovered by WAPET in 1977

• One of the largest undeveloped onshore gas fields in Australia – total gas in place of 8-10TCF confirmed by recent studies

• Only 35km from key gas pipelines

• Transerv is operator with a 35% stake (post Alcoa farm in)

• Alcoa earning up to 65% stake by spending up to $100m (half spent to date) on exploration and development

• Alcoa are likely buyer of gas

Warro – The Story So Far• Four wells drilled to date – the last in

October, 2011

• First two wells (1977) confirmed presence of substantial gas but tight sands inhibited flow rates significantly

• Fraccing successfully employed at Warro 3 and 4 (2009 & 2011), resulting in significant gas flows

• Warro 3 and 4 produced associated water which limited gas flows

• Expert study has confirmed that wells that should produce commercial flow rates even with water production experienced

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Warro – The Independent Expert’s ViewShanley Review concluded :

• Warro contains significant gas accumulation with potential to flow at high rates

o 8 -10 TCF in place

o ~3.2 TCF recoverable

• Wells capable of 4 -10 BCF each (50 acre spacing) with existing water results and more (7 – 12 BCF) if it can be reduced or avoided

• Water is not the issue - similar to other tight gas fields in USA where water management is routine

• Water came from deep seated faults intercepted by wells

• 3D clearly shows these faults are localised and that there large parts of the field where they can be avoided to enhance production

• More drilling and testing is needed

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Fault Identification

Transverse Arbitrary LineWarro-3 Well

NW SE

Top Gas Sand

Transverse Arbitrary LineWarro-4, Warro-1 Wells

Top Gas Sand

3D clearly shows the location of faulting

Warro-3 and Warro-4 Wells lie in area with strongest faulting

Large areas without faulting

Warro – The Next Chapter

• Transerv believes review shows Warro is economic to develop

• Water is a manageable operational issue, as seen in analogous US fields

• Planning underway for Program of Work to drill, frac and test further wells in late 2012 or early 2013

• Discussions underway with Alcoa on details of drilling, scope, timing of work etc

• Depending on rig availability looking at single and/or 3 well back-to-back programme commencing late 2012/early 2013

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Business in Canada• Why Canada?

– Huge oil and gas area

– Very open system with plenty of opportunities (oil) and unconventionals at early stage

– Lots of information, low costs, extensive infrastructure and good terms

• Transerv in Canada

– After 2 years, land acquisition strategy complete

– Concentrating on oily unconventional resource plays

– Built a large, low cost acreage position >180,000 gross acres and 72,600 net acres at <$50/acre

– Leverage: a few wells will prove up substantial resource plays similar in size to Warro

– Drilling each play this year

– Strong Calgary based team

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3 mmbbl/d15 BCF/d

Unconventional Successes in Canada

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VikingBakken

Cardium ?Duvernay, MannvilleMontney, Nordegg

BritishColumbia

Alberta

Sask.

Location of Canadian assets

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Interests in over 290 sections across 2 provinces.

Approx 250km

Approx 30km

Duvernay and Rock Creek Alberta (TSV 34%)

Rock Creek and Duvernay Shale Assets

Original 132 gross sections (~83,500 acres).

– JV Average Cost $80/ha ($32/acre).

– Major emerging trend in shale and tight gas

– Partial divestment:

• 38 sections sold for $24 million

• Retained 20% (gross) in 30 with and carry through 2 wells (approx gross $20million cost).

• Retained Rock Creek 132 sections and 121 Duvernay sections (~80,000 gross acres)

– Potential: 30 mmboe net to TSV (TSV estimate using Macquarie Tristone resource assessment)

Drilling activity in 2012

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SIRIUS

Antelope

Conoco Est . 80+ bbl/mmcf from testBellatrix

Encana

Black Swan Proposed loc

Rock Creek drilling

2012 Duvernay Drilling activity

Duvernay Divestments

Future Well Locations

Carnaby – British Columbia (TSV 55%)

• Carnaby holds interests in over 103 sections (65,300 acres)

• 240 boe/d production, 1.14 mmboe 2P reserves, Operator on most project interests.

• Strong land position in proven oil and gas area

– 8+ pay zones in conventional plays

– On trend with recent discoveries in unconventional oil plays

• Well activity in 2012

– Unconventional Resource Plays (Montney and Nordegg)

– Field extension - Belloy.

– Bypassed pay.

• Potential: 23 mmboe net to TSV (TSV estimate using Discovery Group resource assessment)

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Montney Potential

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ARC res 13-18-82-17W6300 bopd, 1.8mmcfd7 wells planned in 2012

Crew 4-31-81-17W6342 bopd, 1.7 mmcfd

Chinook 6-31-85-13W640bopd

Carnaby recomplete6-17-83-14W6

West Energy Vert 8-31-82-14W6 (40bopd)

Genesee - Mannville in Alberta (TSV 50%)

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• Built resource play in Alberta on local knowledge and experience.

• Created large land position (50% of 39,000 acres) in areas of shallow, low-cost oil.

• Technology initiative as many wells with “by-passed” pay.

• Plenty of roll-out potential : 12mmbbl net

• Drilling in 2012.

Identified Well Locations

Mannville Offsets• Ravenwood HZ 4-31-48-1W5

190 bopd, 1750mcfd, 70 bwpd

• 13-6-49-1W598 bopd, 724 mcfd, 41 bwpd

• 3 more wells licensed

Asset Potential

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All figures are TSV estimates

470

70253334

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Net Relative Risked Valueof Each Asset (A$m)

Warro

Carnaby

Duvernay Farmout

Divernay residual

Rock Creek

Genesee

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23

6

1311

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Net Unrisked Reserve Potential of Each Asset 

(mmboe)

Value PropositionAggressive drilling programs across all four assets in second half of 2012

Western Australia– Warro decision to drill mid 2012

Canada – Proving the Resource Plays– Land acquisition completed

– Duvernay drilling underway mid 2012

– Rock Creek Drilling mid 2012

– Genesee tight oil drilling second half of 2012

– Carnaby Montney drilling in second half of 2012

Allocation of 2012 drilling funds

UnconventionalResource Plays

Conventional

Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

Carnaby Carnaby and Genesee well prep

Siphon & Gething DevWells Belloy and Montney Wells

Genesee Tight Oil Seismic Tight Oil

Mako Rock Creek well

Duvernay well

Registered OfficeGround Floor1292 Hay Street West Perth WA 6005

Telephone

+61 8 6313 5790

Facsimile

+61 8 6313 5799

Website

www.transerv.com.au

This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It isbelieved that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables andchanges in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: pricefluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industrycompetition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial marketconditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

All references to dollars, cents or $ in this presentation are to AUD currency, unless otherwise stated.

Stephen KeenihanManaging Director

Brett MitchellExecutive Director