A successful Oil and Gas producer

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A successful Oil and Gas producer

• June 2009

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Disclaimer forward looking statements

• This presentation may contain forward looking
  statements that are subject to risk factors
  associated with the oil and gas industry.
• It is believed that the expectations reflected
  in these statements are reasonable but they may
  be affected by variables and changes in
  underlying assumptions which could cause actual
  results or trends to differ materially, including
  but not limited to price fluctuations, actual
  demand, currency fluctuations, drilling and
  production results, reserve estimations, loss of
  market, industry competition, environmental
  risks, physical risks, legislative, fiscal and
  regulatory changes, economic and financial market
  conditions in various countries and regions,
  political risks, project delay or advancement,
  approvals and cost estimates.
• All references to dollars, cents or in this
  presentation are to Australian currency unless
  otherwise stated.
• The views expressed within this document are
  solely those of Mosaic Oil and do not necessarily
  reflect the opinions of its joint venture
  participants.

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Corporate Summary Proven explorer and profitable
producer

• Capital structure
• FPO shares on issue 631.6m
• unlisted options 6.88m (7c-20c exercise price
  with various expiry dates)
• partly paid employee shares 19.2m (av. exercise
  price 18c)
• Market Capitalisation
• 101 million (_at_ 16c share price)
• Top 20 shareholders
• hold 21.4 (as at 16 Feb 09)
• Cash position
• 15.1 million (as at 31 Mar 09)

NZ
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Corporate SummaryA reserve base with significant
growth potential

• Reserves Position
• 2P 17.2 MMBOE (81.9 PJ gas 3.5 MMBO
  oil/condensate 105.7K tonnes LPG)
• 3P 45.7 MMBOE (197.6 PJ gas 12.2 MMBO
  oil/condensate 290.5K tonnes LPG)
• Over 40 years of 2P Reserve Cover at 0.4 MMBOE pa
  production rate in 2008
• Current active drilling programs aim to
  accelerate the exploitation of 2P Reserves
• Market Capitalisation per BOE
• 2P A5.87/BOE
• 3P A2.21/BOE
• Growth potential in future commercialisation of
  discoveries
• Kimu gas discovery (PNG Foreland)
• Hurricane oil gas discovery (WA 208P Offshore
  WA)
• Exploration upside potential
• Western Surat-Bowen Basin exploration (ATP 471P,
  ATP 709P, ATP 608P farm-in various PLs)
• Offshore Carnarvon Basin (WA-208P)
• Qld Cooper-Eromanga Basin (ATP 934P)

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Mosaic equity-owned Infrastructure - Over 72m
insured value - Reduced connection times for
discoveries - Improved economics of smaller
discoveries

• Silver Springs gas-liquids processing facility
  and gathering network
• MOS 100 owned and operated
• Current capacity 15 TJ/d (current throughput 5-6
  TJ/d)
• Maximum capacity 40 TJ/d (with additional
  compression)
• Insured value 34 million
• Wallumbilla (Wungoona) LPG Plant Pipeline
• MOS 50 equity ownership, Santos (50) - Operator
• Current capacity 25 TJ/d (not fully utilised)
• Maximum capacity 40 TJ/d ( with additional
  compression)
• MOS net insured value 32 million
• MOS operated Churchie and Downlands JV pipelines
• MOS Churchie 100 Downlands 75.25
• Current capacity 17 TJ/d (not fully utilised)
• Maximum capacity 30 TJ/d ( with additional
  compression)
• MOS net insured value 5.8 million

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Strong 2008FY results have positioned Mosaic Oil
for future growth
Excludes 7 million from CS Energy pre-payment
for drilling
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Continuing Strong results for FY09
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Strong March 09 Quarter Mosaic Oil positioned
for continued growth

• Strong demand for Mosaic Oil to supply gas into
  existing contracts
• Silver Springs and Waggamba area increased gas
  production by 35
• High production was achieved despite
  interruptions at Wallumbilla
• Successful wells from the 2008 drilling campaign
  will continue to add to Mosaic Oils overall
  production throughout 2009.

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Development and production activitiesStrong
performance at Silver Springs/Waggamba

• Higher gas production targets delivered
• Gas production from the Silver Springs/Waggamba
  area increased by 68 compared to the September
  08 Quarter

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2009 Calendar Year Forward Program

• Economic Review of target and development wells
  announced in 1Q 2009 reflecting impact of lower
  oil prices
• An average oil price for the March Quarter of
  US48.81 per barrel or A74.59 per barrel (Sept
  08 Quarter - A154.82/bbl).
• Continued focus on appraisal development
  drilling in existing Surat-Bowen Basin fields
• Focus on reducing risk, building prospect
  inventory increasing reserves through
  exploration activities in Surat-Bowen Basin
  permits
• Build exploration targets for future drilling
  through exploration in permits acquired during
  2008 in Cooper-Eromanga Basin and New Zealand
• Look to finalise evaluation of gas storage
  opportunities
• Potential participation in LNG supply, spot gas
  electricity markets

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Santos Asset Acquisition Impact on MOS reserves
and production
Current daily production 2.0 TJ/d of gas, 25
bbl/d of oil/condensate Estimated remaining
reserves acquired as at 1 January 2009 2P 29.6
PJ of gas 0.57 MMbbl of oil/condensate 3P 64.1
PJ of gas 1.15 MMbbl of oil/condensate
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Santos Asset Acquisition Benefits of the
acquisition

• The acquisition will
• Significantly increase MOS 2P 3P reserves and
  production
• Significantly increase profit and revenue based
  on financial modelling
• Allow Mosaic to control the future development of
  Churchie and Churchie West gas fields
• Provide an asset with a strong positive NPV based
  on the current field development plan
• Increase the development options of the company
• Potentially allow for LNG participation or sales
  to larger users.

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Santos Asset Acquisition Comparison with other
gas reserves transactions
Source Public released information including
company announcements. Mosaic figures includes
the oil at GJ equivalent.
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Santos Asset AcquisitionAssets to be acquired
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2009 New Business prospect in gas storage
opportunity

• Business Opportunity within Existing Assets
• Nearly depleted Silver Springs-Renlim gas field
  with up to 75 PJ gas storage capacity is primary
  candidate.
• Suitable for significant gas storage for LNG
  project(s) during production ramp-up and
  subsequent phase.
• Provide MOS opportunities to participate in spot
  gas and electricity market with significantly
  higher gas prices for seasonal and peaking
  supply.

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Underground Gas Storage in the US
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Silver Springs-Renlim Field Gas storage
opportunity

• Commercial studies and preliminary results have
  identified a high value project which could
  realise a new and significant revenue stream from
  Q1 2011.
• Mosaic Oil looking to finalise evaluation
  following review, including
• Updated reservoir simulation study is nearly
  complete
• Pre FEED study on operational aspects of
  reservoir and field facilities
• Review of commercial parameters of various gas
  storages and conclude commercial negotiations
  with customers.
• Final Investment Decision expected end of 2009
  CY.

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Thank you