AUSTRALIA PACIFIC LNG PTY LTD

PENTLAND 1WELL ABANDONMENT REPORT

ATP 666P QUEENSLAND‐

Originator: Australia Pacific LNG Pty LtdJenna Halcro Dirks,‐ Engineering Assistant ABN 68 001 646 331

Reviewed: Level 3, 135 Coronation DriveTrevor Marks, Senior Drilling Engineer MILTON QLD 4064

Reviewed:Simon Parmiter, Operations Geologist

Approved:Lauren De Paoli, Senior Petroleum Engineer April, 2011

‐ 1 ‐WELL ABANDONMENT REPORT PENTLAND 1

WELL CARDGeneral Data Well DetailsWell Name: Pentland 1 Conductor Surface Intermediate CoreholeWell Type: Exploration HoleField: Pentland Size 14" 12.25" 8.75" 6.25"

Petroleum Tenure: ATP 666PDepth from Rotary Table 12 mRT 197 mRT 770 mRT 1289.3 mRT

Location Drilling Fluid

Water‐based Gel spud mud

Water based‐PAC mud

Water based ‐KCL/Polymer

mud

Latitude: 20 o 44' 52.11" SDrill Bits ‐Size/Type

12.25"Smith JS

4060 PDC

8.75" Reed‐ Hycalog S519

PDC6.12" Xtreme

XTC

Longitude: 145 o 06' 34.36" E Casing

GDA94 Zone 55 Easting: 303 172 ESize/Weight/Grade

9 5/8"/36ppf/K 55‐ Not Cased Not Cased

GDA94 Zone 55 Northing: 7 704 612 NDepth Top of‐ Shoe (mRT) 195.01 Not Cased Not Cased

Elevation Cement

Ground Level (mAMSL): 500.09 Surface

Pumped 34bbl of 13.5ppg Portland cement lead, followed by 39bbl of 15.6ppg Portland cement tail.

27bbl cement to surface.

Drill Floor (mAMSL): 504.44 Intermediate Not Cased. See cement plugs.

Total Depth Cement PlugsDriller: 1289.3 mRT Cement Volume Cement Type Interval‐ ‐Logger: 1123.85 mRT Plug 1: 9bbl of 15.6ppg Portland cement 1150 1200 mRT‐ ‐Drilling Rig(s) Plug 2: 9bbl of 15.6ppg Portland cement 1060 1110 mRT‐ ‐Drilling Rig: Ensign Rig 48 Plug 3: 9bbl of 15.6ppg Portland cement 1000 1050 mRT‐ ‐Date Spudded: 23/08/2009 Plug 4: 17bbl of 15.6ppg Portland cement 630 680 mRT‐ ‐Date TD Reached: 7/09/2009 Plug 5: 17bbl of 15.6ppg Portland cement 450 500 mRT‐ ‐Date Rig Released: 13/09/2009 Plug 6: 17bbl of 15.6ppg Portland cement 370 420 mRT‐ ‐Well Completion Report Lodgement Date Plug 7: 29bbl of 15.6ppg Portland cement 165 215 mRT‐ ‐

14/11/2011 Plug 8: 3bbl of 15.6ppg Class G cement 0 11 mRT‐ ‐

DRILLING & COMPLETIONS SUMMARY

The Pentland 1 Exploration Well was drilled vertically in the ATP 666P permit to test the extent, permeability & gas content of the coal seams in the area. The well is located approximately 48kms east of Hughenden in central Queensland. Refer to the Area Map in Appendix 1 & the Well Location Survey in the accompanying well completion report.

The wellbore intersected the target Betts Creek Beds, a coal bearing formation within the Galilee Basin with the potential to ‐produce coal seam gas.

The total net coal is estimated at 19.70 metres. Pentland 1 was continuously cored from 770.21 – 1239.38 mRT. The core samples were sealed for gas desorption testing. Detailed core data is included in the accompanying well completion report.

Pentland 1 was plugged & abandoned immediately after drilling & testing were complete. Abandonment details are contained within this report. Drilling details, drill stem testing results & cutting sampling results are included within the accompanying well completion report.

‐ 2 ‐WELL ABANDONMENT REPORT PENTLAND 1

GEOLOGICAL SAMPLESWireline Logs Date Log Type Interval ContractorLogging Run 1 8/09/2009 Cal Den GR Res Sonic‐ ‐ ‐ ‐ 25 1123 mRT‐ Weatherford

Full Hole Coring Date Interval (mGL) Cut (m) Recovered (m)

27/08/2009 ‐7/09/2009 770.21 1239.38‐ 469.17

Refer to Well Completion Report

Sidewall Coring Date Interval (mGL) Size/Cut (m) Recovered (m)N/A

Muglogging Date Interval (mGL) Size/Cut (m) Recovered (m)N/A

Cutting Samples Date Interval (mGL) Cut (m) Recovered (m)

25‐26/08/2009 200 770‐ 570

Refer to Well Completion Report

WELL TESTSDrill Stem Testing

Pressures (psia)Date Interval (mRT) Formation (CM) Gas Flow

RateFluid

Recovery Initial FlowInitial Shut

In Final Flow Final Shut In

DST #1: Misrun due to hole conditions testing program cancelled.‐

Flow Test Results

DateGas Flow Rates

(mmscfd)Water Flow Rates

(bwpd) Pressure (psia) Depth (mRT)

Initial N/AFinal N/A

‐ 3 ‐WELL ABANDONMENT REPORT PENTLAND 1

SURVEYSWell Location Survey

Date Longitude LatitudeGround

Level Easting Northing

20/03/2010 1450 06' 34.36" E 200 44' 52.11" S 500.09 303 172 E 7 704 612 N

Deviation SurveyN/A

Current Schematic Formation Tops Summary

Formation tops were picked by Geoscientists from Wireline Logs & ROP Curve data.Conductor Casing: 14" @ 12 mRT

Surface Casing: 9 5/8" @ 195.01 mRTSurface Hole: 12 1/4" to 197 mRT

Perforation Details Formations mRTNo Perforations Moolayember Fm Surface

Formation Interval (mRT) Warang Sst 691.81N/A N/A N/A Betts Creek Beds 1085.96

Jochmus Fm 1214.78Cement Plugs (mRT)

1 1150 12002 1060 11103 1000 10504 630 6805 450 5006 370 4207 165 2158 0 11

Intermediate Hole: 8 3/4" to 770 mRT

Core Hole: 6 1/4" to 1289.3 mRT

‐ 4 ‐WELL ABANDONMENT REPORT PENTLAND 1

GEOLOGICAL SUMMARY

The Pentland 1 exploration well was drilled in ATP 666P approximately 48km east of Hughenden in the Galilee Basin of central Queensland. The Coal Seam Gas (CSG) exploration well targeted the Late Permian Betts Creek Beds, to determine gas content, net thickness and permeability of the coals. The well was continuously cored from 770.21 – 1239.38 mRT and intersected the top Betts Creek Beds at 1087mRT at the base of a thick section of coarse grained Triassic Warang Sst. An‐ estimated 19.7m of net coal was intersected in the Betts Creek Beds. Coals recovered underwent desorption testing, however gas contents were very low (see Appendix 6). Wireline logs were unable to be run past 1123m due to poor hole conditions and the planned DST program was abandoned for the same reason.

The Galilee Basin covers an area of ca. 247,000km2 in central Queensland and is an intracratonic basin containing predominantly fluvial sedimentary rocks of Carboniferous to Middle Triassic age.1 It is unconformably overlain by the Jurassic‐Cretaceous Eromanga Basin, except on the eastern basin margin where Permo Triassic sediments outcrop. The Galilee is‐ relatively under explored compared to nearby coal bearing basins, with poor results from conventional oil and gas‐ ‐ exploration, but is experiencing a much increased rate of exploration in the search for CSG resources. In addition, several‐ large open cut and underground coal mining resources have been defined along the eastern and north eastern basin‐ ‐ margins.

There are two major coal bearing formations within the basin: the Betts Creek Beds and the Aramac Coal Measures. The Late‐ Permian Betts Creek Beds are the lateral equivalent of the Bandanna Coal Measures and other late Permian formations in the Bowen Basin (from which the Galilee Basin is separated across the Springsure Shelf). In the eastern half of the Galilee, the Betts Creek Beds have been subdivided into the upper Bandanna Fm and a lower sub unit, the Colinlea Sandstone. The Betts‐ Creek Beds and equivalents are found across the Galilee. In contrast, the Early Permian Aramac Coal Measures are restricted to the central and western parts of the basin.1 Both formations comprise sandstone with interbedded siltstone, mudstone and coal. Unusually, in comparison to the Bowen and Surat Basins, coal seams can be interbedded in direct contact with highly porous and permeable quartzose sandstone aquifers, presenting a potential problem for de watering of seams for CSG‐ extraction. Gas contents of the coals are variable but typically lower than in their Bowen Basin equivalents.

The coals vary from sub bituminous to high volatile bituminous rank and are generally dull and relatively high in mineral‐ matter (up to 25%), often forming thick coal packages that may be interbedded with tuffaceous claystones and siltstones. The maceral compositions of the individual coal seams are highly variable, with some plies being high in inertinite and others high in vitrinite. In general, however, Galilee Basin coals are lower in vitrinite and duller than their Bowen Basin equivalents.

References: Scott, S.G., Carr, A.F. & Beetson, J.W. 1995, Galilee Basin, Geology of Australian Coal BasinsSpecial Publication No. 1, Geological Society of Australia, pgs. 340 351.‐

Marks, T.ATP 666P, Pentland 1, Drilling Programme, report prepared for Origin Energy

‐ 5 ‐WELL ABANDONMENT REPORT PENTLAND 1

APPENDIX 1 – LOCATION MAP

Pentland 1

HUGHENDENHUGHENDEN

ATPATP 666666

Street TypeConnector Road Proposed RoadHighway Restricted/Private RoadLocal Road Unsealed RoadMain Road Vehicular Track Path

Tenure

Origin Operated PL

Origin Operated ATP

Infrastructure( Well Of Interest

GIS SectionExploration and ProductionTogether we can make a difference TM

Pentland 1 Well Location MapDate: 8th April 2011

State: QLD Project: APLNG Permit: See Above Map No: 1 of 1Map ID: GISWR_03390_PE_RevA

LEGEND

See Insert

Locations indicative and subject to change

Digital Cadastral Database © The State of Queensland (DNRW) 2010.

6 0 6 12 18

Datum: GDA94 Lat/Long Units: Kilometres Scale 1:500,000 @ A3