Ann: Daily Production increases to 2,300 BOE per day, page-2

Gee the downrampers must be feeling sick...
" DAILY PRODUCTION INCREASES TO 2,300 BOE PER DAY
Fremont Petroleum Corporation Ltd (ASX: FPL) (‘Fremont’, ‘Company’ is pleased to report
production across all its leases is averaging ~2,300 barrels of oil equivalent (BOE) per day based on 10-
day production data. The chart below (figure 1) shows the percentage split of production per
hydrocarbon.
Natural Gas Production from the MHP leases continues to track up. The Company set an objective of
increasing production by 20% within 90 days of assuming ownership of the leases and this has been
achieved in less than 60 days, with production growing from 8.0 MMcfd on 9 March to ~9.57 MMcfd on
24 April. The production gains have been achieved from field work and well workovers conducted on
a limited number of our gas wells.
Oil production across all leases is averaging ~300 bbl per day, up from the ~240 bbl per day reported
on 9 March. This has primarily been achieved from production enhancements within the MHP leases
and some improvements from the Trey leases. Whilst the Company is encouraged by the growth in oil
production, performance across the Colorado, Kentucky JV and Trey leases is not meeting internal
targets with gains from workovers and field work yet to materialise. Management is now placing greater
emphasis on this in order to further capitalise on the stable and improving WTI price.
Natural Gas Liquids (‘NGL’ production is averaging ~17,000 gallons per day and while down slightly,
Fremont is benefiting from improved off-take agreements and pricing strength. The Company has
appointed NGL Supply, the largest privately held NGL company in North America. This agreement
provides better access to NGL markets as we work to further exploit the value of our NGL stream. On a
composition basis our liquids are high value, containing about 50% propane. This is appealing for export
markets, and 15% C5+ which is priced against WTI.
PRODUCTION UPDATE
AUSTRALIAN OFFICE: Suite 302, Level 3, 17 Castlereagh Street, Sydney NSW 2000 | P: +61 2 9299 9580
www.fremontpetroleum.com
COMMENT
Chief Executive Officer Tim Hart said: “We are pleased to have met our stated target of growing gas
production by 20% well ahead of schedule. As well as hedging some of our production to mitigate
against lower prices that occur over the warmer months, we are also pursuing margin improvements
to ensure these assets deliver an appropriate return on investment. Our commitment to ongoing
workovers, which will further increase production, reflects our confidence in the asset and its cash
generating characteristics. NGLs also represent an emerging revenue stream for FPL that has further
upside. Having access to this growing export market through the new agreement with NGL Supply is
helping to maximizing our liquids returns and revenue base.
“While oil production is growing, it is due to the gains materializing from MHP and we need this to
translate to our other leases. We are now placing greater emphasis on enhancing production from the
wider portfolio in order to realize their full potential. We will update shareholders as gains occur.”