1. Gas Development Master Plan Steering Committee Meeting – 28 March 2013 Draft Policy Note 1 : Overview of Gas Resources and Potential

2. 2 Outline Conventional gas reserves and resources Coal Bed Methane resources Shale gas resources Assessment of current reserves data management system Recommendations

3. 3 Society of Petroleum Engineers Reserves and Resources Definition

4. 4 Conventional resources

5. 5 USGS Assessment Prospective Resources South East Asia, 2010

6. 6 USGS Assessment Prospective Resources Papua New Guinea, Eastern Indonesia and East Timor, 2011

7. 7 Lemigas Assessment, Prospective Resources, 2005

8. 8 BP Migas Assessment, Prospective Resources, 2012

9. 9 Prospective Resources BodyDateAssessment (TCF) USGS2011-12136 Lemigas2005228.5 BP Migas2012368.9

10. 10 CBM licences

11. 11 CBM In-place Resources

12. 12 CBM In-place Resources

13. 13 Main shale gas potential Min Energy GIP = 570 TCF Prospective resources = 142.5 TCF assuming recovery factor of 25%

14. 14 Overall Supply Situation (TCF) ConventionalCBMShale GasTotal Proven reserves104.71-- Probable reserves20.00-- Possible reserves28.18-- Total reserves152.89-- Contingent resources---- Prospective resources 368.9056.00142.50567.40 Total resources368.9056.00142.50567.40

15. 15 International comparison reserve and resource reporting CountryAgency undertaking reporting Agency reportingReserve reporting system DenmarkEnergy AgencyMinistry of Climate, Energy and Building Consistent with SPE-PRMS IndiaDirectorate General of Hydrocarbons Ministry of Petroleum and Natural Gas Not consistent with SPE-PRMS NetherlandsMinistry of Economic Affairs n/aConsistent with SPE-PRMS from 2012 NorwayNorwegian Petroleum Directorate Ministry of Petroleum & Energy Consistent with SPE-PRMS Trinidad & Tobago Ministry of Energy and Energy Affairs n/aConsistent with SPE-PRMS United KingdomDepartment of Energy and Climate Change n/aConsistent with SPE-PRMS

16. 16 Policy Recommendations Indonesia should adopt the SPE Resource Classification and report reserves as proven, probable and possible Indonesia should start providing a quantitative assessment of both contingent resources and prospective resources This information should be published on an annual basis Indonesia should carry out its own technical assessment of prospective resources for CBM and shale gas With the activity currently underway in CBM exploration Indonesia should shortly be able to classify some CBM as a contingent resource.