notice received, page-3

Karoon Gas Australia Ltd ABN 53 107 001 338 • Po Box 469 Mt Martha Victoria 3934
Phone +613 59741044 Fax: +613 59741644
Website: www.karoongas.com.au




Thursday, 10 December 2009

(ASX Code: KAR)

ASX ANNOUNCEMENT

Karoon Releases New Estimates of Volume Certified by D&M – Net Contingent Resources of 1.27 Billion Barrels of Oil
Equivalent (“boe”) and Risked Net Mean Prospective Resources of 900 Million boe.

Karoon is pleased to advise the results of an independent report on both its Contingent and Prospective Resources for the
company’s world wide portfolio of appraisal and exploration assets as completed by DeGolyer and MacNaughton (“D&M’)
The first report, (“Contingent Resources Report”) certifies the high case net contingent resource of 7.6 Tcf (Gas) or 1.27
billion boe and the second (“Prospective Resource Report”) certifies the risked net mean prospective resources of 900
million boe, as detailed in the table below:



The report was prepared by the international consulting company DeGolyer and MacNaughton (D&M) as at 30
September 2009. It includes the Browse Basin Poseidon-1 discovery well results but not the Poseidon-2 results as the
well is currently being evaluated. It also includes the results of newly acquired and processed 2D seismic in Peru and
reprocessed 3D seismic in Brazil.

The report updates the previous D&M report on the company’s Net Risked Mean Prospective Resources estimate
released in September 2008 of 1.23 Billion Barrels of Oil Equivalent (“BBOE”).

Importantly, a move from the Prospective Resources category to the Contingent Resources category reflects the Poseidon
discovery and the company’s increased confidence that upon successful drilling there will be significant reserves to
underwrite a major petroleum development in the Browse Basin.

The contingent and prospective resource estimates presented in the DeGolyer and MacNaughton report have been
prepared in accordance with the Petroleum Resources Management System (PRMS) approved in March 2007 by the
Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, and the
Society of Petroleum Evaluation Engineers.

The PRMS reporting system provides uniform guidelines for the evaluation and reporting of petroleum reserves and
resources. Under PRMS:

• “Prospective resource”, as reported by DeGolyer and MacNaughton, are defined as those quantities of
petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by
application of future development projects.

Karoon Gas Australia Ltd ABN 53 107 001 338 • Po Box 469 Mt Martha Victoria 3934
Phone +613 59741044 Fax: +613 59741644
Website: www.karoongas.com.au
• “Contingent resources”, as reported by DeGolyer and MacNaughton, are defined as those quantities of
petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application
of development projects, but which are not currently considered to be commercially recoverable due to one or
more contingencies.

The prospective resources reported on by DeGolyer & MacNaughton are based on the statistical aggregation method.
There is no certainty that any portion of the prospective resources estimated herein will be discovered.

Karoon has its main interests in the following key assets;

• In Australia’s Browse Basin, Karoon is in partnership with ConocoPhillips (the operator) in three exploration
blocks WA-314-P, WA-315-P (Karoon equity 49%) and 398-P (Karoon equity 40%).

• In Brazil, Karoon holds 5 blocks (100% equity) in the Santos Basin, the same basin where the Tupi and Carioca
discoveries (multi billion barrels of oil) were made recently by Petrobras.

• In Peru, Karoon is earning up to 75% equity in the 4875 square km Block Z-38 in the Tumbes Basin. The similar
adjoining Block Z1, has large multi TCF gas and oil fields.

Notes:
• Resource estimates are stated on a net to Karoon basis.

• Low, Best and High estimates means there is a 90%, 50% and 10% chance respectively that an estimated quantity
of resource volume will be equalled or exceeded.

• Tcf means trillion cubic feet of gas.

• 1 Billion Barrel of Oil Equivalent(“BBOE”) is equivalent to 6 Tcf.

• A barrel is equivalent to 159 litres.

DeGolyer and MacNaughton is an international petroleum consulting firm with offices in the United States of America,
Canada and Russia, who specialise in evaluation of reserves and resources for major oil and gas companies, governments,
financial institutions and the investment industry. DeGolyer and MacNaughton have conducted assessments of and for
the largest petroleum and financial companies in the world.



For further information please see the Karoon website or contact:


Scott Hosking: Company Secretary Ian Howarth: Collins Street Media
Telephone: 03 59741044 Telephone: 0407 822 319
Fax: 03 59741644 Email: [email protected]
Email: [email protected]
Website: www.karoongas.com.au