1. Grant Willis Global Head of Natural Resources
The Australian Oil & Gas Industry
Grant Willis Global Head of Natural Resources
January 2014

2. This presentation does not constitute an offer to provide finance on any terms. The provision of any such offer is subject to formal review and credit approval, satisfactory due diligence, sign off by legal, tax, accounting and other professional advisers and execution of satisfactory documentation. The Commonwealth Bank shall not be bound unless and until final terms are agreed and formal documentation is signed. That final documentation may not necessarily mirror the contents of this presentation and any actions you may choose to take should not be taken in reliance on this presentation.
The information contained herein is confidential and is the proprietary structure of the Commonwealth Bank. It is provided on the basis that you will not disclose its contents to any persons other than directors, employees and advisors without the written consent of the Commonwealth Bank. It is not to be discussed either directly or indirectly with any other financier. This obligation will not apply if the information is available to the public generally (except as a result of a previous breach of this confidentiality obligation) or you are required to disclose it by law.
© Copyright Commonwealth Bank Australia

3. The Commonwealth Bank of Australia
Australia’s largest bank by market capitalisation
14.6m Customers
3,000
Institutional Clients
KEY FINANCIALS
CREDIT RATING
S&P Moody’s Fitch
Statutory NPAT
A$7,677m
Cash NPAT
A$7,819m
Return on equity
18.4%
Total assets
A$754b
Cash earnings per share
A$4.86
Dividend per share
A$3.64
Basel III CET1 (International)
11.0%
Industry specialisation and understanding make the Bank an ideal partner providing balance sheet strength and broad product capability
Oil & Gas industry teams placed in key commercial and financing hubs. CBA is a Bank that actively deploys balance sheet into our client’s businesses
Broad range of debt products spanning project, corporate and acquisition finance
Strong global financial markets capabilities across commodities, foreign currency and interest rates
The only domestic Australian bank with a full in-house equity business, focused on retail and institutional clients
LIQUIDITY (AUD)
GLOBAL COMPARISON
$101b
June 2011
$135b
June 2012
$137b
June 2013
Market Capitalisation (US$bn)
Global Market Capitalisation Ranking
Senior Debt Rating
Moody’s
S&P
268.02 1 A2 A+
243.52 2 A3 A
232.44 4
Aa3
198.11 6
Baa2 A-
183.81 7
124.01 10
Aa2
AA-
104.29 15
92.91 18
Baa1
Source: Bloomberg. As at 13 January Credit rating: S&P

4. The Growing Commonwealth Bank of Australia
The Bank provides Natural Resources and product specialists across the globe
London office UK Norway The Netherlands Eastern Europe Africa
New York office Houston office
United States Canada
Singapore office Hong Kong office
East & SE Asia
Sydney office
Australia New Zealand East & SE Asia

5. Commonwealth Bank of Australia – Products and Clients
Cash & Treasury Management
Payables & Procurement
Foreign Currency Accounts
Trade Finance
CommBiz
Term Deposits
Commodities Sales & Trading
Structured Commodity Finance
Structured Investments
Interest Rates FX
Transaction Banking
Financial Markets
Working Capital
Acquisition & Bridge Finance
Project & Development Finance
Corporate & Structured Asset Finance
Equity & Debt Capital Markets
Capital Raising

6. Australian Economy – Outlook
CBA’s Global Outlook
2010 (a)
2011 (a)
2012 (a)
2013 (a)
2014 (f)
2015 (f)
GDP Growth (% YoY) FX
AUD/USD
0.94
0.91
0.90
EUR/USD
1.34
1.32
1.305
GBP/USD
1.63
1.62
1.54
Base Interest Rate
Reserve Bank of Australia (RBA)
2.50%
2.56%
3.00%
US Federal Reserve (Fed)
0.25%
0.75%
European Central Bank (ECB)
People's Bank of China - Benchmark 1 Year Lending Rate
6.00%
Oil (USD/bbl)
WTI
98.00
91.00
94.00
Brent
109.00
99.00
97.00

7. Natural Resources Economic Data
Source: CBA

8. Global Listed E&P Stocks
Where does Australia stand?
Market Capitalisation of Global E&P Stocks
# of Stocks
% of Stocks
Mkt. Cap
(USDbn)
% of Total Mkt Cap
Median
(USDm)
Global Revenue
% of Global Revenue
Global
1052
100%
1231 34
471 US
335
32%
608
49%
240
51%
Canada
347
33%
185
15% 17 58
12%
Europe (incl UK)
139
13%
136
11% 80 28 6%
Asia Pac (ex AU) 55 5%
226
18%
297
121
26%
Australia 67 20 13 3%
Source: CBA and Bloomberg

9. Australian E&Ps by Market Capitalisation (AUDm)
ASIA
Source: CBA and Bloomberg

10. Recent Unconventional Gas Farm-ins
Are attracting a roll call of international majors /
Amount
$70m
Acres
4.0m
EV / Acre
17.6
Date
May-2011 /
Amount
$152m
Acres
4.1m
EV / Acre
37.3
Date
Nov-2012 /
Amount
$156m
Acres
7.7m
EV / Acre
20.3
Date
Dec-2011
Uncovered natural gas pipelines
Full regulation pipelines
Browse LNG
Prelude FLNG
Canning
Perth
Gippsland
Amadeus
Georgina
Officer
Galilee
Arckaringa
Otway
Beetaloo
Darwin LNG
Ichthys
Cooper
Maryborough
Gunnedah /
Sydney
Wheatstone
NW Shelf LNG
Pluto
Gorgon
Light regulation pipelines /
Amount
$210m
Acres
9.1m
EV / Acre
22.9
Date
Jun-2012
Amount
$12m
Acres
1.9m
EV / Acre
6.2
Date
May-2012
APLNG, Arrow LNG, GLNG and
QCLNG, /
Amount
$50m
Acres
3.3m
EV / Acre
15.0
Date
Dec-2010 /
Amount
$111m
Acres
7.7m
EV / Acre
14.4
Date
Sep-2011 /
Amount
$101m
Acres
0.4m
EV / Acre
268.6
Date
Jul-2011 /
Amount
$32.2m
Acres
5.5m
EV / Acre
5.9
Date
Nov-2013 /
Amount
$349m
Acres
0.4m
EV / Acre
904.1
Date
Feb-2013
Source: Relevant company announcements

11. Putting the Australian opportunity in context
United States of America
Australia
Land Area
3.79 million mi2
2.97 million mi2
Natural Gas Demand
24.37 Tcf/yr
(Net Imports 1.94 Tcf/yr)
2.09 Tcf/yr
(Net Exports 1.0 Tcf/yr)
2,203 Tcf1
Gas Resource Potential
820 Tcf2
Gas Prices (US$/MMBtu)
$10 $3
$5 $9
Ability to Deliver US
AUS
Rigs
1,800 50
Wells
37,000
1,200
Processing(3)
600 25
Pipelines (mi)
350,000
20,000
Technically recoverable resources
Total demonstrated gas resources
Number of plants
Source : EIA Independent Statistics & Analysis, EIA Annual Energy Review 2011 , BREE 2012 Gas Resource Assessment, Energy Quest and Santos analysis

12. Australian Exploration Activity and Expenditure
Source: APPEA

13. Historical Oil & Gas Production
Source: APPEA

14. LNG Exports – by country
Australian LNG Exports to Exceed 78 mtpa by 2020

15. Australian & Papua New Guinean LNG Projects
GLNG (C)
GLNG Santos / Petronas / Total
QCLNG (C)
BG Group
Scarborough FLNG (P)
ExxonMobil / BHP
Gorgon (C)
Chevron
Darwin LNG (O)
ConocoPhillips
PNG LNG (C)
ExxonMobil / Oil Search/ Santos
Liquid Niugini Gas (Elk 1&2) (P)
InterOil / Total
Pluto (O)
Woodside
Browse (P)
NWSV Trains 1-5 (O)
Sunrise (P)
Wheatstone (C)
Chevron / Apache
Prelude (C)
Shell
Ichthys (C)
INPEX / Total
APLNG (C)
Australia Pacific LNG
ConocoPhillips / Origin Energy / Sinopec
Bonaparte FLNG (P)
Santos / GDF SUEZ
Arrow LNG (P)
Shell / Petro China
Offshore Conventional Gas to LNG Projects
Coal Seam Gas to LNG Projects
Onshore Conventional Gas to LNG Projects
(P) Proposed
(C) Construction
(O) Operating
Source: WorleyParsons, CBA

16. Case Study: Ichthys LNG Project
Principal Project Components
USD34bn capex budget
The upstream facilities comprise around 50 subsea production wells and subsea production systems connected to a Semi-sub central processing facility and FPSO
Gas will be transported to the LNG plant at Darwin via an 889km, 42” sub-sea pipeline
Once transported to Darwin the gas will be processed at the onshore LNG Facilities.
The project is designed to produce approximately 8.4mtpa of LNG from two trains, up to 100,000 bpd of field and plant condensate and up to 1.6mtpa of LPG at peak, with First LNG is scheduled for 2016

17. Conclusions The future of Australian oil & gas is bright.
CBA remains committed to the sector.
Oil prices remain high against historical, domestic gas prices are rising – the economic settings are stable.
The conventional gas fields in central Australia are enjoying a renaissance.
7 LNG projects will shortly begin producing in and ramp up into 2017.
International players continue to invest and support the Australian oil & gas industry.
We could do with finding some more oil though.

18. Key Contacts Houston to UPDATE AS RELEVANT Client Coverage Group
Project Finance
Equity Capital Markets
Grant Willis
Managing Director P: E:
85 Queen Victoria St, London
England
Michael Thorpe
Managing Director
P: +61 (0) E:
201 Sussex Street Sydney 2000
Geoff Carrick
Managing Director
P: +61 (0) E:
201 Sussex Street Sydney 2000
Andrew Loadsman
Executive Director, Natural Resources
P: +61 (0) E:
201 Sussex Street Sydney 2000
Australia
Charles Davis
Executive Director
P: +61 (0) E:
201 Sussex Street Sydney 2000
Michael Neal
Executive Director
P: +61 (0) E:
201 Sussex Street Sydney 2000
Jan Gabrynowicz
Director, Oil, Gas, Energy & Utilities
P: +61 (0) E:
201 Sussex Street Sydney 2000
Howard Mann
Associate Director
P: +61 (0) E:
201 Sussex Street Sydney 2000

19. Disclaimer & Confidentiality
Select which disclaimer to include
This Discussion Paper, provided by Commonwealth Bank of Australia ABN (‘Commonwealth Bank’), is confidential and is provided to you on the basis that you will not disclose its contents to any person other than your directors, employees, agents and professional advisors without our consent. The information provided in this document is the copyright of Commonwealth Bank. This obligation will not apply if the information is available to the public generally (except as a result of a previous breach of this confidentiality obligation) or you are required to disclose it by law.
Commonwealth Bank believes that the information herein is correct and any opinions, conclusions or recommendations contained in this document are reasonably held or made as at the time of its compilation but makes no warranty as to the accuracy and reliability of the completeness of that information. The Commonwealth Bank accepts no responsibility for any loss or damage which may be suffered by any person, directly or indirectly, as a result of the material contained in this document. The contents of this document should not be relied upon as a substitute for appropriate/ professional advice or as a basis for formulating business or other decisions.
The information contained in this presentation is made available only for persons who are wholesale clients as defined in the Corporations Act 2001.
This document is not intended to represent an offer of finance or to issue any financial products, and is based on Commonwealth Bank’s current understanding of the facts.  Further due diligence of the specific circumstances is required to confirm any outcomes are achievable.  Any subsequent financing proposal would be subject to Commonwealth Bank’s formal review and credit approval process, market conditions at the relevant time and documentation.
All legal, accounting or taxation outcomes described or alluded to in this Discussion Paper are provided without any liability whatsoever to Commonwealth Bank, whether for negligence or otherwise, and are not intended to constitute legal, accounting or taxation advice.
The information provided is therefore indicative of what the expected outcomes of the transaction might be, based on assumed facts as contemplated by the Discussion Paper, and should not be relied upon.  On this basis, no representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of content of such information.
As actual outcomes will depend on each client’s specific facts and circumstances, it is with respect to such unique facts and circumstances that we strongly advise that your company seek its own legal, accounting and taxation advice.

20. Recoverable Shale Gas Resources: Top 10
Australia – It’s a Gas!
Recoverable Shale Gas Resources: Top 10
Shale Gas (TcF)
Rank #
China
1,115 1
Argentina
802 2
Algeria
707 3
USA
665 4
Canada
573 5
Mexico
545 6
Australia
437 7
South Africa
390 8
Russia
285 9
Brazil
245 10
World Total
7,299
Source: EIA, Technically Recoverable Shale Oil and Shale Gas Resources, June 2013
Source: Geoscience Australia

21. Ichthys LNG Project – Project Financing
Largest ever project financing transaction
Inpex (Japan) and Total SA (France) are the major partners in the Ichthys LNG project which raised USD20bn of project financing and reached financial close in January 2013
CBA is the largest non-Japanese lender
CBA is the Intercreditor Agent and Uncovered Sub-Facility Agent
Largest Project Finance Deal
Project sponsor engagement with Export Credit Agencies (ECA) commenced during 2010 – over two years ahead of financial close
The financing process commenced in November 2011 when lenders provided preliminary RFPs. Banks provided final credit approvals in June 2012 and Financial Close was reached in January 2013, eight months after receipt of the formal RFP
Significant debt amount – USD20bn the largest ever project financing
Multi-lender engagement strategy (ECAs, banks and sponsor debt, and provision for bonds)
Banks lent USD10.2bn to the project (USD4.8bn Uncovered (47%) and $5.4bn (53%) Covered)
3 ECAs directly lent USD5.8bn, and Sponsors provided loans of USD4bn
The project has a number of attractions and some challenges to lenders:
Strategically aligned Sponsors group (Inpex 66%, Total 30%), with Total being a well credentialed LNG developer and operator
The liquids rich conventional gas resource delivers strong project economics
Committed off-take arrangements from ten buyers, 68% going to Japanese buyers, Sponsors buying 21%
Robust project finance structure with contracted senior sponsor support in various forms
Ichthys LNG Project
USD20bn
MLAB Commercial Bank Facility
December 2012
Ichthys LNG Project
USD20bn
Intercreditor & Uncovered Sub-Facility Agent
December 2012
Asia Pacific
Deal of the Year
Global Deal of the Year
Asia-Pacific Multi-sourced Deal of the Year