VIC/P47 - SER 25% GIPPSLAND BASIN OFFSHORE VICTORIA

Vic/P47 Permit Vic/P47 is located approximately 5 km offshore, south of the Victorian town of Orbost. Water depths range from 20 to 80. The permit contains the 1989 Shell Judith-1 Emperor Subgroup gas discovery and the sub-commercial Moby-1 gas discovery in the Gurnard Formation. The Judith-1 well intersected a number of interpreted gas columns based on shows, logs and pressure tests, but was not flow tested. Analogies have been drawn with the nearby Longtom gas field under development by Nexus where Longton-3 flowed gas from the Emperor sands at 77 mmcfd, and the recent Longtom-4 horizontal well intersected 760 metres of gas sands. The Judith structure is covered by a modern 3D seismic data set and has been mapped in detail.

Gaffney Cline &Associates, an independent, international advisory firm to the oil and gas industry completed a resource certification for Judith in June 2008 confirming the following points:

• 290 metre gross gas column, 135.5 metres net pay at Judith-1 well
• Contingent plus prospective gas initially in place (GIIP) for the greater Judith area of Best Estimate 621 DCF, High Estimate 2,314 BCF
• Appraisal drilling recommended

More details are available in an SER press release dated 23rd June 2008. The certification letter provides a wide range of low to high estimates which is characteristic of pre-appraisal accumulations and which requires an appraisal drilling programme to narrow the range of uncertainty and potentially move the Judith Field towards commerciality. A key factor for appraisal planning is that a significant proportion of the Prospective Resource volume is located near Judith-1 well, either in deeper sands not penetrated by the original well or in adjacent fault blocks. This suggests the potential for an appraisal drilling programme centred near Judith-1 that could notionally address a combination of Contingent and Prospective Resources, with a Best Estimate volume on the order of 300 Bscf. Importantly, such an appraisal programme could also potentially target a combined High Estimate resource volume of over 1,000 Bscf.

The operator of the permit is seeking to bring in a new partner to assist in funding of further drilling.

VIC/P41 - SER 25% (Diluting to 17.5% Potenially Free Carried for the drilling of the first well) GIPPSLAND BASIN OFFSHORE VICTORIA

The Permit is located in the eastern part of the Gippsland Basin some 40 km off the coast. Water depths in this part of the basin are suitable for conventional semi-submersible drilling rigs, although water depths exceed 1000 metres in the far south of the permit. The most prospective western part of the block is largely covered by 3D seismic where a number of prospects have been defined and are ready to drill. The prospects have significant potential unrisked resource sizes ranging from 20 million barrels up to 155 million barrels. A number of the prospects display amplitude vs offset seisimic anomalies which have also been identified over the Kipper Oil and Gas Field on-trend to the west. Kipper is currently being developed with a first production data of 2009. The Oscar prospects in the southern part of the block are interpreted to be on trend and similar to the producing Basker/Manta.Gummy Fields.

The eastern side of the permit is less well explored and in June 2008 the joint venture acquired 250 line kilometres of new 2D seismic data with the aim of working up a number of leads to drillable status.

VIC/P65 OFFSHORE GIPPSLAND BASIN (SER 100%)

This deepwater permit covers an area which contains a number of very large structures. It is in deepwater and some way distant from the producing fields in the Gippsland Basin. The block was applied for on the basis that in many basins in the world, discoveries continue from the shallow water areas out into the deeper water.

The seismic coverage is sparse, and so in June 2008, an additional 150 line kilometres of 2D data was acquired to provide additional control over a large structural lead which was identified in the south western part of the block. The data will be processed and interpreted prior to the company seeking a farmin partner.

VIC/P66 OFFSHORE GIPPSLAND BASIN (SER 23%)