MEC Resources Ltd ACN 113 900 020

PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia

T: +61 8 9328 8477 F: +61 8 9328 8733 info@mecresources.com.au www.mecresources.com.au

30 October 2009 Companies Announcements Office Australian Securities Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000 Dear Sir/Madam

Advent Energy Presentation FLNG Conference, 27-30 October 2009, London.

MEC Resources Ltd (ASX:MMR) advises that its investee entity Advent Energy Ltd (Advent) is presenting today at the FLNG Conference, London.

A copy of the presentation is attached.

Yours sincerely

David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: +61 8 9328 8477

Media Enquiries:Bill Kemmery

Fortbridge ConsultingTel: +61 2 9331 0655

Mobile: +61 400 122 449

Notes: In accordance with ASX listing requirements, the geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity. MEC is an exploration investment company and relies on the resource and ore reserve statements compiled by the companies in which it invests. All Mineral Resource and Reserve Statements have been previously published by the companies concerned. Summary data has been used. Please refer to relevant ASX releases for details and attribution. Unless otherwise stated all resource and reserve reporting complies with the relevant standards.

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FLNG 2009

Offshore Sydney Basin & Proposed LNG Plant at NewcastleLNG Plant at Newcastle

29 October 2009

Offshore Sydney Basin : PEP11 Snapshot and Domestic Market Scenario

Massive Upside to SuccessEstimated Prospective Recoverable Resources 16.3 Tcf gas (P10)Success at P50 level NPV10 $Multi billionAdvent Equity 25%Addi i l E i b E d b D illi 60%Additional Equity to be Earned by Drilling 60%

Superb Location with Competitive AdvantageDistance from Market 25 km.NSW/ACT annual gas market approx. 120 bcf/yr.Annual Growth 5.4%Approximate Current Gas Price $4.49/McfAssumed Project Gas Price (Export Parity) $7.00Fish Prospect can supply entire NSW/ACT market for

11 years

Successful Project could supply NSW/ACT gas market until

2060

Potential Reserves Would Support Major Export LNG Project

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• NSW/PEP 11 covers 8100+ sq km, 20 km from Australia’s largest energy market, excellent infrastructure

• Permit Prospective Recoverable Resources estimated at up to 16.3 Tcf; mean = 7.5 Tcf

• Excellent analogies with world class producing fields

Offshore Sydney Basin : PEP11 Opportunity

Excellent analogies with world class producing fields

• Active thermogenic hydrocarbon system demonstrated offshore

• Possible gas/condensate-charged Permian + Triassic reservoirs / excellent potential for gas & oil discovery

• Prospective resources and proximity to infrastructure infer potential for LNG

• Advent – right to earn 85%; JV partner Bounty Oil & Gas reducing from 75% to 15%

• Robust Economics: NPV multi billion potential (P50 level)

• Advanced negotiations for drilling rig, environmental approvals nearing completion and conceptual well engineering design complete

Four CBM to LNG projects proposed for Gladstone, QLD:•Petronas (40%) / Santos (60%) – Gladstone LNG Project•BG Group – Queensland Curtis Project•ConocoPhillips / Origin Energy – Australia Pacific Project•LNG Ltd / Golar LNG / Arrow Energy – Fishermen’s Landing Project

Australian East Coast Proposed LNG Production

Newcastle:Eastern Star Gas / Santos – proposal for export from Newcastle PortEastern Star commissioned an independent study into the possibility of an LNG plant at Newcastle, north of Sydney.Primarily using CBM resources of the Gunnedah Basin (e.g. Narrabri project) as feedstock.Santos concern over available port sites for the LNG plant.

P t ti l B fit f FLNGPotential Benefits of FLNG:-Substantially smaller environmental footprint than a land-based LNG processing plant.-Possibly 20% less greenhouse gas emissions than an equivalent onshore installationF

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Australian East Coast Proposed LNG Production

LNG:

•Woodside’s Pluto Project 1st Train provides for project valuation of $12 billion

•Ichthys Project – 12.8 Tcf: 850km+ pipeline to Darwin, 40 year life span, $20 billion capex

•Gorgon Project (Chevron): 3 x 5 Mtpa trains, $50 billion project

FLNG:

•Shell - Prelude FLNG: Development costs >US$5 billion. 3.6 MtpaLNG, 1.3 Mtpa condensate, + 400,000 tpa LPG per year for 25 years from 2016

1 million tonnes per annum LNG requires approximately 0.06 Tcf of natural gas

Proximity to the Port of Newcastle

Port of Newcastle

PEP11

Port of Newcastle

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Worldwide Oil & Gas Fields (source: Total – www.planete-energies.com, and Link, W.K., 1952, Significance of Oil and Gas Seeps in World Oil Exploration, Bulletin of the

AAPG, Vol. 36, No. 8 ), and Indicative satellite coverage of NPA Group, acknowledgement to Alan Williams, Mike Rego, Aminex

Nearly all the important oil producing regions of the world were first discovered by surface oil and gas seeps (Hunt, 1981)

Hydrocarbon Migration

North Rankin, Carnarvon Basin

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Lord Howe Rise:

Offshore Sydney Basin – Hydrocarbon Migration and HRDZ.

•4.5 billion boe•98.5% methane

North Rankin, Carnarvon

HRDZ

PEP11 Offshore Sydney Basin

[Fred Kroh, Geoscience Australia]

“…sea floor spreading commenced at 65-70 million years before present resulting in the separation of the Lord Howe Rise from the east coast of New South Wales (NSW Bureau of Mineral Resources)”

“a speculative estimate of petroleum resources within Australian jurisdiction on the Lord Howe Rise is about 4.5 billion barrels of oil equivalent (Willcox & Symonds, 1997)”.

“Ocean Drilling Program (ODP) Leg 164 recently drilled three locations on the crest of the Blake Ridge to assess the composition and amount of gas in its gas hydrate deposit (Paull et al, 1996). All gas recovered exceeded 98.5% methane.”

Kingfish, Gippsland

Lord Howe Rise: Skua and Swift, BonaparteCornea, Browse

Offshore Sydney Basin – Comparable HRDZ with Australian O&G Fields.

•4.5 billion boe•98.5% methane

HRDZ

PEP11

[Fred Kroh, Geoscience Australia]

“…sea floor spreading commenced at 65-70 million years before present resulting in the separation of the Lord Howe Rise from the east coast of New South Wales (NSW Bureau of Mineral Resources)”

“a speculative estimate of petroleum resources within Australian jurisdiction on the Lord Howe Rise is about 4.5 billion barrels of oil equivalent (Willcox & Symonds, 1997)”.

“Ocean Drilling Program (ODP) Leg 164 recently drilled three locations on the crest of the Blake Ridge to assess the composition and amount of gas in its gas hydrate deposit (Paull et al, 1996). All gas recovered exceeded 98.5% methane.”

North Rankin,Carnarvon

OtwayKingfish,Gippsland

PEP11 Offshore Sydney Basin

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Offshore Sydney Basin – A Proven Petroleum Basin With Potential Huge Gas Reserve –Prospective Recoverable Resources of 16.3 Tcf (P10) estimated for the Permit.

Total Depth

B4‐15 Full Stack seismic dataCSIRO: “AVO analysis shows indication of class III AVO classification. Class III AVO anomaly generally stands for gas sands.” “Soft” high amplitude

reflectors

AB

Zones of Interest

Zones of interest

Line B4-15

Fugro; John Cant Validation

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Total Depth

Interval velocity profile from Fugro

AB

Stacking velocities are 50% lower in highlighted areaZones of Interest

Zones of interest

Return to Contents

Hydrocarbon Reservoirs and Gas Chimney Models

Source: dGB Earth Sciences

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B4-15 B4-16

B4-15B4-16B4-17B4-18B4-19B4-20

PEP11: Distribution of Gas Chimneys

B4-17 B4-18

B4-19 B4-20

J. Whelan: “seismic signals are smeared to considerable depth as a result of vigorous

gas seepage”

Norway: 2nd largest gas5th largest oil(global exports)Source: EIA and IEA

Slope Failure, Gas Seepage, Major Hydrocarbon Province

Norway:OrmenLange

Sydney Basin Continental Margin

Slope Failure Production

14 Tcf

Source: European Commission Slumps: over 28 cu. km

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D. Schumacher: “Hydrocarbons seep in large concentrations in basins actively generating hydrocarbons or that contain excellent

migration pathways”

Offshore Sydney Basin: Swath Survey 2006

Pockmark over 282,000m3

Image courtesy Ron Boyd,University of Newcastle

Gulf of Mexico

Source: Whelan, Marine & Petr Geol 2005

Gulf Coast transect: general schematic diagram of subsurface oil and gas flow consistent with geochemical geological and

Nearly all the important oil producing regions of the world

were first discovered by surface oil and gas seeps (Hunt, 1981)

consistent with geochemical, geological, and fluid flow modelling (from Whelan, Marine & Petr. Geol. 2005)

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Zero production onshoreGippsland

Reserves:

Offshore Gippsland

Gippsland Basin Model

Reserves:17.5 Tcf+110 MMbbl+ (3.89 billion bbl produced)Majority of Australia’s oil production

Yampi Shelf (Browse Basin, NW Australia) Model

Yampi Shelf (NW Australia) Model and Fluid Migration

Courtesy O’Brien, Geoscience Australia; based on Yampi Shelf, Browse Basin

Bright Spots

DomeChimneys and pock marks

indicating focus areas of fluid flow

PullDowns

Bright Spotsindicating focus areas of fluid flow

above the top reservoir

“From the many studies performed in hydrocarbon basins from all over the world we have learned that seismic chimneys are visible in 90% of all Mesozoic and Tertiary basins.”

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Norway – Gullfaks South Field

Fluid Migration

• Apparent gas reservoired at intermediate (1.0 – 2.2 sec twt) depths

• Trap charge migration is not imaged

• Evidence of more active seepage at both flanks

1. Transpressional, wrench related structures

2. Overthrust traps on W margin of Offshore Uplift, include 4 way dip closures

Offshore Sydney Basin : Possible Trap Styles

3805 km 2D seismic including 1460 km of new lines

3. Mild basin inversion structures

4. Sub-thrust plays along E edge of

Offshore Syncline from overthrusting

in W direction

6. Stratigraphic / structural+stratigraphic (e.g.

identified by AVO)“The main source kitchen areas are in the deeperFrom Maung et al 1997 and acquired in 2005;

integrated for first time with 1991, 1981 seismic interpretation confirms Baleen structure and identifies

new Fish prospect.

5. Extensional, down to basin margin normal fault bound blocks

(E flank of Offshore Uplift)

The main source kitchen areas are in the deeper parts of the Lake Macquarie Trough, Macdonald Trough, Offshore Syncline, and Newcastle Syncline” (Santos, 1987; Alder et al., 1998)

From Maung et al, 1997, andStephenson & Burch, 2004, Preliminary Evaluation of the Petroleum Potential of Australia’s Central Eastern Margin (GA12988 )

“Structural traps are believed to be widespread with Late Permian and Late Triassic anticlines and fault traps combined with Tertiary rejuvenation of older structures thought to be the major plays.” (Stewart and Alder, 1995)

“It is generally assumed that maturation and migration began relatively early and hence early structures are favoured as hydrocarbon traps” (Stewart and Alder, 1995)

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Blue North Fish

Offshore Sydney Basin : Distribution of 4‐Way Closures on Top of Surface E

West Sei and East Sei Baleen (4 way dip closure)

Humpback

Orca

South Fish (4 way dip closure)

BlueBaleen

North Fish

South Fish

Sei

Offshore Sydney Basin : Surface E Side View From East to West

Sei

Humpback Orca

Large well timed structures with both four way dip and fault closures

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“Arditto (2003) argues that the central offshore region of Sydney

Offshore Sydney Basin PEP11 :

Arditto (2003) argues that the central offshore region of Sydney Basin (southern part of PEP-11) is well positioned to contain clean,

quartz-rich, fluvial to nearshore marine reservoir facies within the Late Permian Coal Measures. If adequate reservoirs exist, these facies are also well positioned to receive hydrocarbons from the adjacent coal

and carbonaceous mudstone source rocks (Arditto, 2003)”

Gas Bubbles/Thermogenic Hydrocarbon Seepage

Redox Anomaly

Offshore Sydney Basin : Petroleum Association and Reservoir Model

Gas Chimney

Mound

Amplitude Anomaly

Gas Chimney

Flat Spot?AVO

Pockmark HRDZ

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HRDZ

Offshore Sydney Basin : Direct Hydrocarbon Indicators – Possible AVO

B4-15

B4-06

Intercept vs Gradient -Xplot Colour Scheme - CDP 2200-2800 on stack

B4-07B4-15

“Seal potential is one of the least critical factors to defining prospectivity in the Sydney Basin as thick shaly units with the potential to act as seals occur throughout the Sydney Basin” (Santos, 1987; Stewart and Alder, 1995)

2

Offshore Sydney Basin : Amplitude Anomaly Along Continental Margin

1B4-05

B4-11B4-13

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Offshore Sydney Basin : Brazilian Analogue for New Prospective Hydrocarbon Plays

HRDZ comparison between PEP11 Line B4‐05 and Bonaparte Basin

“Soft”High Amplitude Anomaly

HRDZs over the Skua and Swift fields, Bonaparte Basin[Source O’Brien, Geoscience Australia]

HRDZ

HRDZs on PEP11 seismic line B4‐05

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“Soft”High Amplitude Anomalies

“… ‘forced regressive shorelines’ and this concept is of considerable importance to the hydrocarbon industry because of the significant potential for

good reservoir development.” (Boyd et al, RV Franklin Cruise FR15/98)

HRDZ comparison between PEP11 Line B4‐11 and Vulcan Sub‐Basin

HRDZ

High intensity, large and linear HRDZs are present near the Tahbilk gas accumulation, located in the southern Vulcan

Sub‐basin [Source O’Brien, Geoscience Australia]

HRDZs on PEP11 seismic line B4‐11

“A recent review of more than 850 wildcat wells –all drilled after geochemical surveys finds that

79% of wells drilled in positive anomalies resulted in commercial oil and gas discoveries”

D. Schumacher

Noise train in the water column

Offshore Sydney Basin

Geophysical Gas Indications

G i t l

Weaker reflection

Reverse polarity event

Cornea seep, over Corneaoil/gas field, Browse Basin

Gas in water column and shallow sediments identified in Sub-Bottom Profiles by Fred Kroh from SS10/2006 survey

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Geophysical Gas Indications

TOPAS Sub bottom profiles from SS10 / 2006

Repeated Hydrocarbon seep samples show a thermogenic source- Liquids component indicated - Hydrocarbon Seep

Gas Analysis:

•Methane 90.69%•Oxygen 1 58%

Analysis of Inshore Gas Seepage from Offshore Sydney Basin

•Oxygen 1.58%•Carbon Dioxide 4.12%•Nitrogen 3.7%

“It is generally assumed that maturation and migration began relatively early and hence early structures are favoured as hydrocarbon traps” (Stewart and Alder, 1995)

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Sydney Basin Petroleum Systems Summary

From Stephenson & Burch, 2004, Preliminary Evaluation of the Petroleum Potential of Australia’s Central Eastern Margin (GA12988 )

• Source Rocks：Late Permian Coal Measures, mainly Greta and Tomago groups；

• Reservoir Rocks：Fluvial Sandstone in Permian and Triassic

• Seals：Siltstone in Wandrawandian and Branxton

Sydney Basin Stratigraphy

group

• Onshore: 8 wells - oil shows & 16 – oil + gas shows

NSW Dept of Mineral Resources:

“41% wells flowed gas on test”

“The Sydney Basin contains an active petroleum system”system

“Potential source and seal sequences occur extensively…”

“Reservoir potential should increase to the east, in the offshore”

“Early Permian sands are likely to / have good initial primary porosity and permeability.”

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•Thick sequences of marine siltstones, equivalents of the Mulbring and Berry Siltstones, and the Branxton Formation and Wandrawandian Siltstone would act as regional seals to contained sandstone units e.g. Nowra and Muree Sandstones.

Offshore Sydney Basin : Seal

•Siltsones, claystones, mudstones (Early & Late Permian coal measures) = local seals to interbedded fluvio-deltaic sand units

•Interbedded red and green claystones seal individual fluvial + sand bodies of Narrabeen Group

•Bald Hill Claystone seals top of Narrabeen Group

•Shaly facies of Wianamatta Group = regional seal for Hawkesbury Sandstone

•The primary inferred seal for the Offshore Sydney Basin is the Ashfield Shale –its presence is indicated over the offshore uplift and eastwards. A secondary seal may be the shaly laminate at the top of the Newport Formation and this would top-seal quartzose sandstones in the lower Newport Formation.

• NSW Dept of Mineral Resources:

• “Potential source and seal sequences occur extensively…”

• Seals：Siltstone in Wandrawandian and Branxton group

• “Seal potential is one of the least critical factors to defining prospectivity in the Sydney Basin as thick shaly units with the

Offshore Sydney Basin : Seal

prospectivity in the Sydney Basin as thick shaly units with the potential to act as seals occur throughout the Sydney Basin” (Santos, 1987; Stewart and Alder, 1995)

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• NSW Dept of Mineral Resources:

• “Reservoir potential should increase to the east, in the offshore”

• “Early Permian sands are likely to / have good initial primary porosity and

Offshore Sydney Basin : Reservoir

good initial primary porosity and permeability.”

• Reservoir Rocks：Fluvial Sandstone in Permian and Triassic

•Outer-shelf systems of the Lower to Upper Permian Wandrawandian Formation and Middle Branxton Formation – silty / low porosity onshore but better reservoir facies postulated to exist offshore (Maung 1997 / Alder 1998).

•Upper Permian wave dominated delta systems of the Nowra and Muree Sandstones, especially reworked regressive, quartz rich units (porosities to 12%).

•Narrabeen Group sandstones (Triassic) porosities up to 31%

•Fracture systems abound?

Geoscience Australia 2004:

“The main source kitchen areas are in the deeper parts of the Lake Macquarie Trough, Macdonald

Trough, Offshore Syncline, and Newcastle Syncline” (Santos, 1987; Alder et al., 1998)

Offshore Sydney Basin : Source

•Wollombi and Early Permian Greta Coal Measures – comprised of exinite (potential for oil sources)

•Late Permian coal measures attain a thickness of about 1600m at the coast between Newcastle and Terrigal, but thicken and dip offshore – high inertinite and vitrinite content imply gas, but numerous oil seepages indicate oil potential (high liptinite p g p ( g pproportion).

•Thick marine siltstone sequences of Branxton and Mulbring – regional source rocks; significant terrestrially derived TOC in onshore. East across the Offshore Uplift, oil prone nature should increase as marine components increase.

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• Gas price of A$7 (US$5) per MCF,• Initial well productivity of 30MMcfd, • Development well cost of US$17MM / well,• Facilities & pipeline Capex of US$240MM

O f US$0 3/MCF

Offshore Sydney Basin : Economics

Opex of US$0.3/MCF• Fish (P50) 2.37 TCF has an NPV10 of A$5.156

billion and an IRR of 177%

• Minimum economic size is considered to be 200BCF

• RPS Group completing environmental l / D El E i i l ti llapprovals / Du-El Engineering completing well

construction + project management• Advanced negotiations for drilling rig – mid

2010.• Seeking equity and/or farmin partners

New South Wales : State of the Market (AGL, NSW Min. Exp. & Inv. Conf.)

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New South Wales : State of the Market (AGL, NSW Min. Exp. & Inv. Conf.)

LNG Market

The LNG Industry’s historical inflection point 2005

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CONFIDENTIALAdvent Energy Ltd

Background Key Personnel•Formed in 2004 as an unlisted oil and gas exploration and production company based in Perth, Western Australia

•Has a portfolio of assets both onshore and offshore Australia that have had an estimated USD 126m spent on historic exploration

•Portfolio estimated P10 prospective recoverable resources of approximately 13 9 Tcf gas and 139 MMbbl oil/condensate Net to Advent excluding additional

Mr Goh Hock – Chairman: Former President of Schlumberger Asia, and a Global Divisional President of Schlumberger during a 25 year career in the oil and gas industry that spans more than 10 countries in Asia, the Middle East, and Europe.

Mr David Breeze – Executive Director: Extensive experience in transaction structuring, corporate advisory and funding for listed and unlisted companies.

Mr Ding Gui Ming Geology Advisory Panel Chair: Former Chinese Government13.9 Tcf gas and 139 MMbbl oil/condensate Net to Advent, excluding additional corporate interests and newly determined hydrocarbon plays

•Secured an investment commitment from Talbot Group Holdings for AUD 7 million as part of equity issue of 55 million shares at AUD0.50 per share

•Provided BPH Ltd (ASX: BPH) exclusive option to acquire up to 19.4% of Advent on same terms as TGH

•Company currently held mainly by MEC Resources (81.84%) and GrandbridgeLtd (10.69%)

Mr Ding Gui Ming – Geology Advisory Panel Chair: Former Chinese Government Vice Minister. Previously the President of Daqing Oil and Head of Exploration for the China National Petroleum Company (CNPC). Last served as Commissioner of the China State Asset Administration Office.

Mr Seng Yap – Non‐executive Director: Former Executive Director of Daiwa Securities Australia Ltd. Worked in international oil and gas exploration projects across Asia, Australia and New Zealand during his career with Schlumberger Ltd.

Mr Eng Hin Tan – Non‐executive Director: A private equity investor who previously worked with Schlumberger Oilfield Services in India, Brunei, Indonesia and Malaysia.

Mr Jim Dirstein – Geophysicist of 25 years and founder of consultancy Total Depth, providing advanced geophysical data interpretation technologies to the global O&G industry

Permit Inventory at a Glanceglobal O&G industry.

Mr Tim Berge – Professional Geoscientist. Internationally recognised Geophysicist with over 30 years experience. Numerous awards, honours and publications.

Mr Fred Kroh – Former Project Leader of Geophysical Processing and Data Access Project with Geoscience Australia.

Ms Deborah Ambrosini – CFO & Co Secretary: Corporate accountant with over 10 years experience in accounting and corporate development spanning the biotechnology, mining, IT communications and financial services sectors.

Permit Interest / Prospective Interest

Major Partner Basin

PEP11 85% Bounty Oil & Gas Offshore Sydney

EP325 8.3% Strike Oil Exmouth(Carnarvon)

EP386 100% Onshore Bonaparte

RL1 100% Onshore Bonaparte

PEL111 50% Victoria Petroleum Cooper

EP419 3% Royalty Exoma Energy Perth

Data, advice, review and technical contributions gratefully acknowledged•Jim Dirstein - -Total Depth - Principal Geophysical Consultant PTEM survey •Fred Kroh –Formerly Project Leader of Geophysical Processing and Data Access Project - Geoscience Australia •Tim Berge –Geophysical Consultant -•Deet Schumacher -Terraliance•Dan Orange •Fred Aminzadeh

Publications

•AAPG Memoirs ”Hydrocarbon migration and its Near surface Migration” •Judd A and Hovland M “Seabed Fluid Flow”•Whelan J Marine Chemistry and Geochemistry, Woods Hole Oceanographic Institution “Dynamic gas driven petroleum systems” and Whelan J et al “Surface & subsurface manifestations of gas movement through a N-S transect of the Gulf of Mexico”•Government of NSW “New South Wales Petroleum Potential”•NSW Department of Mineral Resources•Alder et al “Prospectivity of the Offshore Sydney Basin –A New Perspective“•Frog Tech Pty Ltd

Contributions Gratefully Acknowledged and References

•David Connolly•Michael Abrams•Professor Ron Boyd –Newcastle University •Andrew Mayo –Macquarie Oil –•Kriton Glenn –Geoscience Australia• Ben Clennel , Asrar Talukder and team (CSIRO Subsurface Prediction and Description ) •Geoff O’Brien –Formerly Geoscience Australia•Ding Gui Ming –Principal Geological Consultant•Associate Professor Jock Keene –Sydney University•Kevin Ruming - School of Environmental and Life Sciences University of Newcastle•BOS•Oil Hunters•Bounty Oil

•Aftenbladet Multimedia •The European Commission “The Deep Sea Frontier”•Aminzadeh, F., de Groot, P., Berge, T. et al “Determining Migration Pathway from seismically derived Gas“•Geoscience Australia –Patchett.A and Langford. R.”New South Wales –Deep Saline Aquifer Storage Potential”•Geoscience Australia Glenn. K “Revealing the continental Shelf off New South Wales”•Aminzadeh F Connolly D and Ligtenberg H “Hydrocarbon Phase detection and other applications of Chimney Technology”•Dietmar Schumacher, Surface geochemical exploration for oil and gas: New life for an old technology Geo-Microbial Technologies, Ochelata, Oklahoma, U.S. The Leading Edge•Michael A. Abrams “Significance of hydrocarbon seepage relative to petroleum generation and entrapment” Marine & Petroleum Geology•AAPG Conference Geoffrey W O’Brien, Andrew Barrett, and Megan Lech .”Integrating 3D Seismic data and multiple, independent remote sensing technologies to constrain near-surface Hydrocarbon Migration and Seepage Rates and Leakage Mechanisms on the North-western Australian Margin”

•RPS •BGP •John Cant•Allan Williams -NPA•Mike Rego – Aminex•Tom Fontaine•Fugro•Geosience Australia •Crown Minerals NZ•Kieth Woolard•David Orth •David Remus

North western Australian Margin•Journal of Geophysical Research, The world’s most spectacular marine hydrocarbon seeps (Coal Oil Point, Santa Barbara Channel, California): •Marine & Petroleum Geology N. Rollet, GA Logan, JM Kennard, PE O’Brien, AT Jones, M Sexton Characterisation and correlation of active hydrocarbon seepage using geophysical data sets: An example from the tropical, carbonate Yampi Shelf, Northwest Australia•Daniel Lewis Orange The implications of Hydrocarbon seepage, gas migration and fluid overpressures to frontier exploration and geohazards•Dietmar Schumacher AAPG Hedberg Conference Near Surface Hydrocarbon Migration; Mechanisms and seepage rates The Dynamic Nature of Hydrocarbon Microseepage: An Overview•O’Brien et al “Yampi Shelf Brows Basin –Northwest Shelf “•Cowley R & O’Brien ”Identification and interpretation of leaking hydrocarbons using seismic data“•Kroh F Reprocessing shows AVO potential for petroleum exploration Geoscience Australia

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DISCLAIMERAdvent Energy Ltd (Advent Energy) has prepared this Company Introduction Presentation. Whilst the information contained in this publication has

been prepared with all reasonable care from information provided by the Company and from sources, which Advent Energy Ltd believes are reliable, no responsibility or liability is accepted by Advent Energy Ltd for any errors or omissions or misstatements however caused. Any opinions forecasts

or recommendations if any reflects the judgment and assumptions of Advent Energy Ltd as at the date of the publication and may change without

David BreezeDirector

Advent Energy Limited14 View Street North Perth WA 6006Australia

Ph +61 8 9328 8711Fax +61 8 9328 8733

david@adventenergy.com.auwww.adventenergy.com.au

or recommendations if any reflects the judgment and assumptions of Advent Energy Ltd as at the date of the publication and may change without notice. Advent Energy Ltd and its officers, agents, employees, consultants and its related bodies corporate, exclude all liability whatsoever, in

negligence or otherwise, for any loss or damage relating to this document to the fullest extent permitted by law. This publication is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any securities recommendation contained in this publication is unsolicited general information only. Advent Energy Ltd is not aware that any recipient intends to rely on this

publication or of the manner in which a recipient intends to use it. In preparing our information, it is not possible to take into consideration the investment objectives, financial situation or particular needs of any individual recipient. Investors should obtain individual financial advice from their

investment advisor to determine whether recommendations contained in this publication are appropriate for their investment objectives, financial situation or particular needs before acting on any such recommendations. This publication is not for public circulation or reproduction whether in whole or in part and is not to be disclosed to any person other than the intended recipient, without obtaining the prior written consent of Advent Energy Ltd. Advent Energy Ltd its officers, employees, consultants or its related bodies corporate may, from time to time hold positions in any

securities and may buy or sell such securities or engage in other transactions involving such securities.

•“Ampolex, assuming a somewhat different objective stratigraphy, estimated unrisked reserves at 1560 Bcf. Santos (1993) had identified a total of 10 structural leads, two on the flank of the Newcastle Syncline being estimated to each contain 975 Bcf of gas-in-place.”(Alder, 1998)

•“Although the high inertinite and vitrinite content of the coals indicate that they are primarily a potential source of gas, the Upper Permian coals of the Sydney Basin compare favourably as a potential source for both oil and gas with the Toolachee Formation, the main late

Offshore Sydney Basin : Santos and Government Reports

Permian source in the Cooper Basin of southwest Queensland and South Australia. The Late Permian coal measures attain a thickness of about 1600m at the coast between Newcastle and Terrigal-1, and thicken and dip offshore.” (Alder, 1998)

•“Maximum depth to magnetic basement in NSW/P10 is greater than 9km in the southern Macquarie Syncline and south of the New England Fold Belt at the continental margin. Recent seismic reprocessing and aeromagnetic surveying have focused the exploration effort on northern NSW/P10 where thick (greater than 1600m) Upper Permian section containing source and reservoir facies is predicted.” (Grybowski, 1992)

•“This area is the most prospective in NSW/P10 because the primary source and reservoir p p p ysection, the Upper Permian coal measures, attain its greatest thickness, and structural closures potentially containing this section have been mapped on the reprocessed 1981 seismic.” (Grybowski, 1992)

•“Depth to magnetic basement exceeds the seismically determined depth to the base of the Permian sediments across the offshore uplift and its flanks. Leaman (1990); also interpreted from gravity data that shallow magnetic basement across the offshore uplift may not be crystalline basement but a thick Upper Carboniferous/Lower Permian volcanic pile with Carboniferous sediments below. It seems that a sub-Permian basin lies below the Sydney Basin near the coast and offshore.” (Grybowski, 1992)

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[Maung et al, (Australian & NSW Govt Report) Petroleum Resources Branch/Bureau of Research Sciences,1997]

• “Whilst the Basin is considered gas-prone numerous significant shows, including both bleeding oil and gas flows, have been reported, supporting the assessment that the Basin contains an active petroleum system.”

•“Reconnaissance and semi-detailed seismic reflection coverage identify the Offshore Sydney Basin as a region of structural complexity, the style of which appears to be quite different from that of the adjacent onshore areas.”

Offshore Sydney Basin : Geoscience Australia and NSW Government Reports

•“Several structural prospects and leads identified by previous explorers lie within areas now considered optimal for source rock and reservoir development. Previous explorers have estimated one prospect, associated with the Offshore Uplift, to potentially contain over 1 Tcf of gas. Additional leads have also been identified, across the eastern flank of the Uplift, where geological control is minimal and analogies to onshore geology tenuous. Many of these additional leads lie on regional structural fairways which have the potential to trap significant commercial quantities of hydrocarbons.”

•“Whereas Ampolex (Bradley, 1993) interpreted structural reactivation of this orogen as having commenced in the Middle to Late Permian and Santos interpreted it to be entirely related to Tasman Sea rifting (Grybowski, 1992), we link its structuralreactivation to the development of the Sydney Basin from the earliest Permian.”

•“Areas around and adjacent to the emerging Offshore Uplift, and particularly its shallowing eastern flank, were subjected to greater wave-base, barrier and strand bar deposition (environments favourable to enhanced reservoir development) than comparable onshore areas. This is an extremely important aspect for it has been the absence of perceived suitable reservoirs within the Permian that has impeded further exploration effort throughout the Sydney Basin generally.”

•“According to the Santos interpretation Triassic and Late Permian sediments had been stripped off the crest of the Offshore Uplift, an interpretation that restricted the potential for reservoir involvement across the structural crest of the Uplift. This is reflected in the style of structuring interpreted by Santos. Our interpretation differs markedly from those of both Santos and Ampolex.”

•“The Sydney Basin was subjected to late-stage episodes of compression, which caused brittle deformation, fracturing and high angle reverse faults probably during the Late Oligocene to Mid-Miocene (as seen in the Gippsland and Otway Basins).” (Bradley, 1993)

•“More recent drilling results demonstrate a currently active gas-generative petroleum system (both carbon dioxide free and ethane enriched), probably sourced from both the Wandrawandian Siltstone and Berry Siltstone. The Nowra Sandstone (sealed by Berry Siltstone) and the Snapper Point Formation (sealed by Wandrawandian Siltstone) present widespread target horizons for deep petroleum exploration wells within the southern, central

t d t l th S d B i ” (A ditt 2001)

Offshore Sydney Basin : Prospectivity Studies to 2004

western and central northern Sydney Basin.” (Arditto, 2001)

•“Several new structural targets have been added to the existing inventory of prospects and leads, including some now considered optimally located with respect to source rock and reservoir development. It was during another foredeep loading episode in the Late Permian that the economically significant and regionally extensive, petroleum source rock, coal bearing faces of the Tomago, Newcastle and Illawarra Coal Measures were deposited.”(Alder, 1998)

•“The Sydney Basin contains the necessary ingredients for hydrocarbon accumulations, namely abundant source and seal rocks (Early Permian marine shales/siltstones and later Permian Coal Measures), adequate thermal history, and untested traps.” (Hamilton and Galloway, 1989; Alder).

•“Structural traps are believed to be widespread with Late Permian and Late Triassic anticlines and fault traps combined with Tertiary rejuvenation of older structures thought to be the major plays.”(Stewart and Alder, 1995).

•“Towards the top of these cycles thick coal measure facies were deposited, particularly in the late Permian; supporting our assessment that the basin contains an active petroleum system.” (Stephenson & Burch, 2004)

•“The Sydney Basin contains at least 6km of Permo-Triassic marine and non-marine sequences, and is the southernmost part of an eastern Australian super-basin that extends from the hydrocarbon producing Bowen Basin in Queensland through the Gunnedah and onshore Sydney Basins.”(Stephenson & Burch, 2004)

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•“Gulf of Mexico: Active bubble discharge areas increase gradually to the south reaching a peak over the southern most reservoirs and suggests these are diagnostic of much earlier stage of gas generation & movement diagnostic of active present day reservoir charging.” (Whelan)

•“Active seeps occur where gas bubbles, pockmarks, or bright spots are visible on seismic profiles and where chemosynthetic communities are present in conjunction with large concentrations of migrated hydrocarbons (macroseeps). These generally occur where generation and migration of hydrocarbons from source rocks are ongoing today.”(Abrams)

Offshore Sydney Basin : Seep Features – A Key Exploration Tool

•“Active seeps are easily detected as acoustic anomalies (e.g., wipe-out zones and bottom simulating reflector) on conventional and high-resolution seismic profiles. Also active seeps may be seen as gas bubble traces and pockmarks on subbottom profiler and sidescan sonar records.” (Hovland and Judd, 1988, in Abrams).

•“Active seeps typically occur in basins that are now actively generating hydrocarbons or that contain excellent migrationpathways.” (Abrams)

•“It also demonstrates that regional chimney mapping provides a robust framework with which to high-grade areas for exploration.” (O’Brien et al, Geoscience Australia)

•“Whilst these chimneys appear as strong events on seismic data (Figure 7), the total amount of hydrocarbons passing through them to the seafloor can be fairly insignificant, at least at the present day. This suggests that even quite low amounts of gas can produce strong chimneys on seismic data ” (O’Brien et al Geoscience Australia)amounts of gas can produce strong chimneys on seismic data.” (O Brien et al, Geoscience Australia)

•“These small slicks are, however, absolutely critical in identifying the location of the most prospective structureswithin a province such as the Yampi Shelf.” (O’Brien et al, Geoscience Australia)

•“From an exploration viewpoint, it would appear that a hierarchical approach is the most appropriate. Firstly, seafloor features such as pockmarks and biological build-ups should be identified, and shallow direct hydrocarbon indicators (DHIs), gas chimneys and HRDZs etc should be mapped using available 2D, and preferably 3D, seismic data. These data should be combined with regional charge history modelling (2D and 3D) and structural mapping, and analysis of the distribution of the regional sealing facies. These data should be combined with regional SAR data to identify any areas with clear liquids seepage - such as the inboard edge of the Yampi Shelf.” (O’Brien et al, Geoscience Australia)

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