EKKN FIELD. Potential for continued and enhanced oil recovery at EKKN (Elang-Kakatua-Kakatua North) JPDA - Timor Sea

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EKKN FIELD Potential for continued and enhanced oil recovery at EKKN (Elang-Kakatua-Kakatua North) Background: JPDA - Timor Sea Oil was discovered in Elang-1 in February 1994 and the size of the oilfield was confirmed with the drilling of the Kakatua-1 well, in a separate but related structure, in December of the same year. Kakatua North-1 was discovered in January 1997. Production started in July 1998, the first oil production within the JPDA. The target production rate of 32,500 barrels of oil per day was initially exceeded before production began a natural decline. In early 2000, a sidetrack well from the Elang-1 was drilled and a work-over of the Elang-2 well was completed. Production at combined rates of more than 20,000 barrels of oil per day was subsequently achieved. EKKN is currently producing about 2,000 barrels of oil per day.

Cumulative production, through February 2007, was approximately 31 million barrels of light, low sulphur crude oil from an initial reserve of approximately 33 million barrels. Oil produced is API 57 with GOR 466-819 scf/stb. EKKN currently has four active wells with sub-sea completions connected to a Floating Production, Storage and Offloading facility (FPSO), the Modec Venture-1. Its storage capacity is 950,000 barrels of oil which is exported by shuttle tanker. EKKN FIELD - SCHEMATIC

Current well productivity is illustrated from recent well test data : Initial production from Jurassic Elang Formation sands, one of the most prolific reservoirs in the North Bonaparte Basin of the Timor Sea, was 1029 Mstb/month. Current field production is ~75Mstb/month. Field production history, summarised below, is in hyperbolic decline. Cumulative production stands currently at 31.32MMstb from an initially recognised recoverable reserve of 32.67MMstb which represents recovery of 95.87% of the currently understood overall reserve in the field. Recovery factors for each well vary from 45% 53%. EKKN OVERALL FIELD PERFORMANCE The reservoir is good quality with porosities from 12% - 14%. Production is by means of compressed gas lift using produced gas for lift and FSO fuel. Remaining production (P50) is currently forecast at: Year 2007 2008 Oil + NGL - Mbbls 767 620 Gas - Mscf 632 561

The tables below provide basic well information. Reservoir depth is +/- 3,000 metres sub-sea. Basic Well Data EKKN Field Reservoir Summary

The reservoir is in deltaic, pro-deltaic and mouth bar fluvial sands very typical of most Elang Formation reservoirs in the Timor Sea. The field structure is an E-W trending tilted fault block downthrown towards the south with an overall anticlinal geometry. Dips everywhere are gentle with a maximum recorded 7º. The best horizon for seismically mapping the field is the Tithonian unconformity. In broad view the field has an eastern culmination centred on the wells Elang- 1 and Elang-2, a thin neck area and a western culmination around the well Elang West-1. The following maps and sections illustrate EKKN field structure.

Location detail Elang Field: - Structure Elang Field: - Dip section Seismic

The field has good 2D and 3D seismic coverage: EKKN This seismic data is readily available from Geoscience Australia at their standard access costs. A comprehensive data package is immediately available containing information on the field and its performance history, which covers all relevant field, well, production, geological and petrophysical data to assist interested parties in project evaluation. The contents of this data set are listed in Appendix-1. Seismic and Well Data Sets (including additional edited Wireline Log suites and edited Well Completion Reports) are also available from one or more of the companies listed in Appendix 2. The field has been operated under a Petroleum Sharing Contract (JPDA 03-12). ConocoPhillips (91-12) Pty Ltd has been operator and other members of the consortium are : Santos (JPDA 91-12) Pty Ltd Inpex Sahul, Ltd ConocoPhillips (Timor Sea) Pty Ltd ConocoPhillips (Emet) Pty Ltd Following a request from ConocoPhillips to cease production from the EKKN field, TSDA has approved all wells to be suspended for a limited time whilst it seeks interested parties who may wish to study the field for IOR/EOR opportunity.

Expressions of Interest: TSDA seeks expressions of interest within 30 days of the date of this notice from companies interested in reviewing this mature asset which may have redevelopment and enhanced recovery potential. Closing Date: 1 June 2007 There will be an advantage to expressing an early interest in the field. For information and to request access to the EKKN data package please call or E-Mail Mr. Leon de Jonk at the Timor Sea Designated Authority in Dili, Timor-Leste : Telephone : +670-3324098 Facsimile: +670-3324082 E-Mail: leon.dejonk@timorseada.org

Appendix 1 EKKN Data Package Contents 1) EKKN Field and related Studies 8 reports. 2) Petrophysical Studies : Elang-1 10 reports Elang-2 7 reports Elang-3 5 reports Elang West-1 and ST-1 5 reports Kakatua-1 4 reports Kakatua North-1A 1 report 3) Well Completion Reports and associated data Elang-1 4 reports Elang-2 4 reports Elang-3 2 reports Elang West-1 and ST-1 7 reports Kakatua-1 6 reports Kakatua North-1A 2 reports 4) EKKN Feasibility and Development Planning 5 reports 5) EKKN Production Statistics

Appendix 2 JPDA Data Availability Seismic and Drilling Data Sets are available from one or more of the following: Geoscience Australia GPO Box 378 Canberra ACT Australia 2601 PH: +61 2 6249 9111 Fax: +61 2 6249 9999 Attn: Ms. Paula Cronin Paula.Cronin@ga.gov.au Manager Geological and Geophysical Repositories (00-61-2-6249-9181) Data Fugro Multi Client Services Pty. Ltd. 9 Richardson Street West Perth WA Australia 6005 PH: +61 8 9321 4400 Fax: +61 8 9321 4401 Global Geo Services (GGS) 30 Raffles Place #23-00 Caltex House Singapore 048622 Attn: Charles Ramsden +65 6836 9377 Mob: +65 9637 0252 cr@cspl.net Andy Cunningham +65 6836 9377 Mob: +65 9782 1630 ac@cspl.net Occam Technology Pty. Ltd. 13 St. Andrews Avenue Mount Osmond South Australia 5064 PH: 61 8 8379 3246 Fax: 61 8 8379 7732 E-Mail: occamtechnology.com.au Attn: Mr. Mike Wiltshire Australian Seismic Brokers Pty. Ltd. Unit 5,171 Abernethy Road Belmont WA Australia 6104 PH: +61 8 9479 5900 Fax: +61 8 9479 5911 Attn: John Boldock Marketing Manager j.boldock@asb.com.au Energy and Mineral Resources Directorate Fomento Building, 2 nd Floor Avenida de Alexio Corteral Timor-Leste PH: +670 331 7141 PH: +670 331 7142 Fax: +670 331 7143 Exploration Data Services Pty. Ltd. GPO Box 1034 Bentley DC Western Australia 6983 PH:+61 8 9472 1744 Fax: +61 8 9472 1823 E- Mail:edsperth@bigpond.net.au Attn: Mr. Mike Gray IHS Energy 5333 Westheimer, Suite 100 Houston, Texas USA 77056 PH: +1 713 840 8282 Fax: +1 713 599 9111