Ann: Petsec Energy ASX4E & Consolidated Financial, page-2

re: Ann: Petsec Energy ASX4E & Consolidated F... Folks,

Some aspects of the ASX 4E report that are worth noting ...

1) Audited Nett Asset Value is US$35.4 mil / 231.2 mil shares = US15.3 cents per share / .90 (exchange rate) = AUD 17 cents per share.

PSA is currently trading at AUD 8 cents per share ... which is 53% less than the nett asset value ...

Putting it another way ... Auditors have signed off a value of AUD$39.3 mil ( US$35.4 mil / .90 exchange rate = $39.3 mil) whereas ASX Market Cap Value is only AUD$18.5 mil.

2) The report notes that PSA have 7.2 BCF in reserves as at 31st Dec 2013.

The 7.2 BCF in reserves as at 31st Dec 2013 has been discounted due to Main Pass 270 not being fully in operation as at 31 Dec 2013.

Furthermore, a US$6.2 mil impairment provision has been included in the Dec 2013 accounts to primarily cater for this reduction in Main Pass 270 reserves.

Main Pass 270 is now back in operation ...

Does this now mean that a portion of the US$6.2 mil impairment provision may be written back in 2014 accounts ?

3) Since Main Pass 270 is now operating again we may have to upgrade the 7.2 BCF in reserves available to be carried forward into 2014 and beyond.

4) The 7.2 BCF in reserves have been valued at US$16.5 mil ... this has been calculated using a "Henry Hub Gas Price" of US$4.00 to US$4.15 .... Whereas the current "Henry Hub Gas Price" is US$4.98 ...

Prices have generally ranged between US$4.50 to US$6.00+ mcf for the last two months ...

It appears that the US$16.5 mil is based upon a conservative pricing platform ...

Where to from here ?

After listening in on the conference call this morning it appears that a lot of stimulating activity is planned between now and the end of 2014 ... Hopefully soon, some positive news will emerge that will drive the share price in the right direction ....

Cheers

PeterRG