AUSTRALIAN ACTIVITIESOver the past year, a series of...

AUSTRALIAN ACTIVITIES
Over the past year, a series of announcements by a number of coal seam gas developers in Queensland concerning the development of potential LNG facilities at Gladstone, plus the already strengthening gas prices in Eastern Australia,
The company retains its interests in the Mahalo project, in two large permits in the Galilee Basin and in two permits in the Gunnedah Basin in northern New South Wales.

ATP’s 743 and 744P
(Galilee Basin, QLD - Comet Ridge 100%)
Negotiations with our Native Title claimants are ongoing. Solid progress is being made and the Company anticipates that acceptable agreements will be reached in the coming months. Once the Right to Negotiate process has been completed Comet Ridge will apply for the permits to
be granted following which it will initiate exploration activities.

Mahalo, Northern ATP 337P
(QLD - Comet Ridge 40%, Non Operator)
A recently completed technical 3rd party technical review confirms the presence of a potentially significant gas resource at Mahalo. The Operator has not proposed any activity in the short term.

PEL 427 & PEL 428
(Gunnedah Basin, NSW – Comet Ridge 70% & 60%)
No material change from last report. Comet Ridge is to be free carried by Orion Petroleum Limited (ASX Code: OIP) through a well on each permit this year.