Ann: Davenport 1 Testing Update, page-2

“The fact that we have now seen consistent reservoir characteristics from testing programs at wells
in both PEL 94 and PEL 96 is very encouraging. The extensive nature of these high deliverability coals
underpins the potential of this part of the Cooper Basin to deliver a major new gas resource.”

Completion, flow back and testing operations at Davenport 1 commenced on 2 August 2014. A
Patchawarra Vu coal zone was perforated and a small fracture stimulation treatment pumped. Coil
tubing operations, including nitrogen pumping, were then undertaken to clean the wellbore and to
artificially lift fluid out of the well. Encouraging hydrocarbon shows were observed via gas detector
at surface throughout the duration of the nitrogen lift operations and an estimated 90% of the frac
fluid was recovered during the flow back period.
A plug was then set and the Patchawarra Vm3 coal perforated. Based on the analysis of the data
from the lower zone, the joint venture decided to proceed with flow testing of this zone without
fracture stimulation using coiled tubing and nitrogen lift. Encouraging hydrocarbon shows were
again observed at surface throughout the duration of the nitrogen lift operation.