Cooper-Eromanga Basins in South Australia Barry Goldstein, Executive Director – Energy Resources South Australian State Government ` Go to South Australia 1.Conventional Oil 2.Unconventional Petroleum 3.Roundtable Join us

Retention Leases for Oil 2 Petroleum Licence Holders Oil exploration wells ( ), western Cooper – Eromanga o 56% located with 3D were discoveries (and find-size  ) o 30% located with 2D were discoveries o Average 2.53 mmbo find size o 10 operators for 22 companies Proven Cooper-Eromanga oil play

Cooper Basin Composite and Deep Coal Plays Gas saturated composite play

Composite Play below ~2,900m Base Patchawarra depth structure map showing unconventional gas wells Cooper Basin, South Australia Patchawarra Fm. Pressure Gradient

(12 years) Drilling rigs35915 Type of wells VerticalHorizontalVerticalHorizontalVerticalHorizontalVerticalHorizontal Rig 50% vertical vs horizontal Wells/yr/rig Wells Tally Supply-chain goal posts: 2,800 3Pj / well over 15 yrs to attain 8,422 Pj (~10% of 93 TCF EIA estimate for gas from shales) Work for government-industry: Discover competence possibly without capacity to supply rigs, pipe, roads, rail, materials, services, people, etc, etc. Foster pre-qualification for tenders; and Enable clusters and IPOs for budding multi-nationals

Conclusions for the Cooper-Eromanga Basins 1.>50% success rate in finding average 2.5 mmbo post 3D 2.Huge shale, tight sandstone and deep coal gas plays. 3.Proven 1,000+ metre gas columns can be developed with a mix of (mostly) verticals and (fewer) horizontal wells 4.Initial unconventional resource estimates for the Cooper Basin are high: EIA potential sales gas from shales: 93 TCF Rough estimate of sales gas in Composite Play: ~ 300 TCF 5.Exploration and appraisal ramping up with several E&Ps and gas customers now funding exploration. Expect deals

Barry Goldstein, Executive Director – Energy Resources South Australian State Government ` Nirvana Outcomes Look – it is possible to herd cats Cooper-Eromanga Basins in South Australia