Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-2

HIGHLIGHTS

 Maiden cashflow positive quarter after all capital and operating expenditure including
some significant one-off payments;
 Quarterly net revenue of $5,731,238, a 31% increase on the prior quarter ($4,386,654);
 Net customers receipts were $5,032,726, a 35% increase on the prior quarter
(~$3,733,924);
 Barrels of oil sold was 28,389 BBL vs. 24,594 BBL in prior quarter (15% increase);
 Unsold oil inventory held in collection tanks at quarter end was 18,518 BBL as the
Company moderately accelerated its inventory sell-down;
 Natural gas (‘gas’ sales totalled 774 MMcf (prior quarter: 694 MMcf) and sale of natural
gas liquids (‘NGLs’ was 31,202 BBL (previous quarter: 33,321 BBL);
 Cash and cash equivalents of $4,066,519. AXP is well funded with no requirement to raise
capital to fund current operations.


COMMENT

Chairman Simon Johnson commented: “We are pleased to deliver this first quarter of positive
cash flow, reflecting that we are in the very early stages of realising the benefits from the
assets acquired opportunistically in the prior year. It’s a great start, but there’s a lot more
upside to come as we better capitalise on the potential of our extensive well portfolio.
“As we continue to make progress with our previously announced ramp-up of oil sales, AXP
Energy is reaping the benefit of its production storage cushion and the opportunistic
discretion it confers on management in bringing product to market at favourable prices.
Whilst the focus has been on optimising oil revenue, gas sales increased through the quarter
although this was partially offset by reduced NGL volumes. Management continues to
progress integration of our recent acquisitions in terms of people, reporting and realisation of
savings. Investor interest in our company continues to grow as we execute on our plans and
develop new opportunities for AXP Energy.”