An Emerging Oil & Gas ProducerASX:AOK

AOKO

Investor UpdateDecember 2010

Investor Update

2

December 2010

Disclaimer

This presentation is not a Prospectus by AusTex Oil Limited A.C.N. 118 585 649 (AusTex) nor an offer for securities in any jurisdiction nor a securities recommendation.

The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions investors

should rely on their own examination of AusTex and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition of

securities.

The information contain in this presentation has been prepared in good faith by AusTex. However, no representation or warranty expressed or implied is made as to

the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation by AusTex, its

directors, employees and advisors. To the maximum extent permitted by law, AusTex, its directors officers, employees and advisors disclaim liability for any loss or

damage which may be suffered by any person through the use or reliance on anything contained in or omitted in this presentation.

Certain information in this presentation refers to the intentions of AusTex, but these are not intended to be forecasts, forward looking statements or statements

about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and

other factors that may cause AusTex's actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, AusTex, its

directors officers, employees and advisors do not give any assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur

as contemplated.

DISCLAIMER

2

Investor Update

3

December 2010

Operational Headquarters Tulsa, Oklahoma US Acreage ~70,000 acres in two States – Oklahoma and Kansas Oil focused Producer and Explorer - Cash flow Positive Two Distinct Asset Types – Development and Exploration

Oklahoma - Development Owner/Operator – 100% Working Interest - >80% Net Revenue Interest Multiple Development well opportunity – 50 + locations on existing leases Multiple Pay Zones – (field on field) New opportunities with horizontal completions Established business model with preferred suppliers and contractors

Kansas - Exploration Large acreage position – multiple projects New Discovery – Clark #1 – Cooper Project Potential for further new discoveries – 3D Seismic Targets identified

Operations Overview

3

Investor Update

4

December 2010

Politically stable environment to conduct business

Multiple oil and gas leases available – cyclical historical development – fragmented mineral ownership

Multiple stacked formations at depths to 6,000 feet (Field on Field) Historically 5-15% Original Oil in Place (OOIP) recovered – Modern techniques and technology 20-30% recoverable

Attractive terms of business – High Net Revenue Interests

Easy access to infrastructure oil and gas gathering systems – refineries

Qualified and capable people

30 days sales cycle on production

GFC restricted local debt and equity finance – opportunity for well managed capital deployment

AusTex turnkey solution

Background – Mid-Continent

4

Investor Update

5

December 2010

Oklahoma

One of USA’s oldest and richest oil producing provinces Home of the Phillips Petroleum Company, Continental Oil Company (Conoco Phillips) (amongst others)

First “Gusher” 250 BOPD drilled by Frank and L.E. Phillips in 1905

> 20,000 producing oil wells shut in 1990s - $13 oil price

Many still with existing economic reserves and identified infill locations

Ready access experienced labour force and sub-contractors

Primary exploration between 1920 to 1940 target shallow Pennsylvanian Formations to 3,000 feet

Overturn “conventional” wisdom - exploit deeper pays to 6,000 feet e.g. Mississippian and Ordovician Formations Vertical Drilling and completion costs - $200,000 on production at 2500 feet - $500,000 on production 6000 feet

Recent Horizontal Completions in Mississippi Lime completion costs $1.5million producing 300-800 BOPD - (Range Resources – RRC:NYSE)

Kansas

Significant historical and ongoing oil producer

Still under new development in north west

Ready access to infrastructure and labour

Additional acreage and development opportunities

Why do business in USA?

5

Investor Update

6

December 2010

THE OPPORTUNITY FOR AOK

6

Investment in new development impacted by historical Oil Price fluctuations

Major Oil Companies moved offshore in 1970s

Mineral Rights are privately held (not government controlled) Fragmented ownership – traded for over 100 yrs

Advantages to small operators – low cost – flexible operations

New Technology changing recovery factors- Air rigs capable of 3500 feet vertical wells

Rotary rigs with

Horizontal Drilling with multi stage fracs

Advances in Chemicals - higher recovery percentages

Targeting High Net Revenue Interest – 80% plus

Operator controls cost – Own operator – no middle man.

On the ground relationships – all important

Deal flow from established Networks

Crude Oil Price - USA

Investor Update

7

December 2010

CORPORATE OVERVIEW

Become a significant US-based on-shore oil and gas producer

Grow production – Target >1200 BOE/day within 12 months

Unlock full potential of current assets

Grow 2P Reserves and increase acreage

Continually develop a strong investor relations program

Focused on USA mid-continent oil fields Total ~76,000 acres

Current producer – Oklahoma and Kansas

7.4m BOE 2P oil reserves Potential reserve upgrades from Kansas discovery

New discovery and acquisitions in Oklahoma

New Independent Report commissioned –

CAPITAL STRUCTURE

AUSTEX OIL OBJECTIVES

BACKGROUND

ASX code AOKOrdinary Shares on Issue (m) 203.3Options on issue (m)

Listed - Dec 11 – 25 cents – ASX:AOKO

Unlisted – Sep 11 – 19 cents

Unlisted – Dec 11 – 25 cents

Unlisted – Mar 12 – 25 cents

Unlisted – Jun 13 – 40 cents

21.9

4.4

5.0

2.5

3.0

Market Cap. ($0.13 per share) (A$m) $26.5Debt (A$m) .8Cash (A$m) – Sep 10 $3.4

Top Shareholdings (>5%):

Richard Adrey (Executive Director)

(Board Members hold 13% of capital)

1800+ Shareholders

5.1%

7

Investor Update

8

December 2010

Company Structure

AusTex Oil Limited(ASX Code – AOK)

International Energy Corp (Oklahoma)

Oil and Gas AssetsTulsa Area

Well Enhancement Services LLC

Radial Jet Enhancement Operator

International Energy Corp(Kansas)

Oil and Gas AssetsNorthwest Kansas

International Energy Corp (Northern Oklahoma)

Oil and Gas AssetsKay County

8

Investor Update

9

December 2010

GROSS SALES

9

0.356

0.84

2.1

0

0.4

0.8

1.2

1.6

2

2.4

Half Yr Sep 2009 Half Yr Mar 2010 Half Yr Sep 2010

Investor Update

10

December 2010

USA Technical Team

USA Technical Team

10

Richard AdreyPresident International Energy Corporation

Former Wall Street investment banker specialising in M&A.

Involvement in numerous public companies in the USA to-date, including Piper Aircraft, Cynocom Corp., Medisys, Versatech, Energy Capital Group.

Holds a B.S. in finance.

Ron LinkPetroleum EngineerTulsa

Over 35 years’ USA oil and gas experience.

Consulted in virtually all oil producing states in the USA.

Previously with Arco Petroleum.

Martin BlackGeologist/GeoscientistTulsa

Over 20 years’ experience with Kansas and Oklahoma geology.

Experienced well side geologist

3rd Generation mid-continent oil and gas

Jerry GreenGeologistKansas

Over 20 years’ experience in Kansas oil and gas operations.

Private oil and gas company – Castle Resources Inc.

Operator of Well Enhancement Services (Kansas).

4th generation mid continent oil and gas.

Investor Update

11

December 2010

OKLAHOMA REVENUE MODEL

11

18.75%

7%

9%62.25%

Oil Revenue Split

Mineral Owner RoyaltyState Tax

Lifting Costs

AOK

AOK holds high Net Revenue Interest

Investor Update

12

December 2010

TULSA OPERATIONS

12

Holding Yard and Work Over rig and Crew in Action

Tulsa Office Staff•Harry Elrod•Carolyn Fulkerson•Ron Link•Martin Black•Hollie Williams•Richard Adrey

Oklahoma Field Staff onsite Lancaster #8 Well

Investor Update

13

December 2010

Project Locations

13

3

2

1

USA OPERATIONS

Tulsa Office1801 East 71st StreetSouthern HillsTULSA OK

IEC – Oklahoma

Lancaster LeaseSweet LeaseCleveland LeaseGypsy LeaseCrisler LeaseBlueHawk Lease

IEC – Northern Oklahoma

Tonkawa East Unit

IEC – Kansas

Cooper ProjectMcCracken ProjectJewel ProjectBeltz Project

1

2

3

Investor Update

14

December 2010

OKLAHOMA SNAPSHOT

14

1

2

3

1

2

3

Lancaster Lease Group

Sweet Lease

East Tonkawa Unit

Investor Update

15

December 2010

Engineering Review Red Fork/Tanaha Formations (Pennsylvanian) – 10 wells drilled to date

Encountered Virgin Reservoirs

IP 80 BOPD +

Gas Drive Reservoir

Reservoir Management Plan

Water injection – Pressure Maintenance

Maintain reservoir energy – Target production 30-50 BOPD each well

Maximise productive life of wells

Simpson Series Formations (Ordovician) – 2 wells drilled to date 100 feet Oil bearing Formation – Lancaster #8 and Lancaster #9 Water Drive Reservoirs – Structural High with Closure – Additional well sites on structure Historical IP 85-500 BOPD

Future Production - Cleveland, Big Lime, Wilcox, Woodford Shale formations

LANCASTER LEASE GROUP – DEVELOPMENT

15

Investor Update

16

December 2010

AERIAL OF LANCASTER LEASE GROUP

16

Investor Update

17

December 2010

LANCASTER STRATIGRAPHIC SECTION

17

ConventionalZones

Total Depth ~2500 feet

Depth ~1650 feet

Depth ~2200 feet

Investor Update

18

December 2010

** Completed Final Week of January

LANCASTER LEASE GROUP OVERVIEW

18

Well Name Formation Type Status

Mayo Moore #1 Red Fork Oil/Gas Producing

Mayo Moore #2 Red Fork Oil/Gas Producing

Mayo Moore #3 Red Fork Injector Operating

Mayo Moore #4 Red Fork Oil/Gas Producing

Mayo Moore #5 Red Fork Oil/Gas Producing

Mayo Moore #6 Red Fork Oil/Gas Producing

Mayo Moore #7 Big Lime Oil/Gas Producing

Mayo Moore #8 Red Fork Injector Operating

Baggett #1-33 Red Fork Oil Producing

Baggett #2-33 Red Fork Oil/Gas Producing

Baggett #3-33 Skinner / Tanaha Oil Producing

Baggett #4-33 Red Fork Oil/Gas Producing

Lancaster #8 Simpson Series Oil/Gas Production Testing

Lancaster #9 Arbuckle/Simpson Oil/Gas Under Completion

Hollie #1 Red Fork Permitted

Hollie #2 Red Fork Oil/Gas Producing

Investor Update

19

December 2010

LANCASTER #8 LOG

19

Investor Update

20

December 2010

LANCASTER #8 LOG

20

Investor Update

21

December 2010

Drilling program commenced September 2008 with two wells completed for production

Multiple zones behind pipe Acreage pooling underway 20 Additional infill locations identified – 10 acre spacing 4000 feet targeting Bartlesville, Red Fork, Skinner, Wilcox

and Mississippi Lime formations Estimated cost per well - $US300,000 completed 20+ BOPD well – 12 month pay back - $70/bbl Held by production Development Plan – After Lancaster Lease

Oklahoma Sweet Lease Group

21

PAWNEE COUNTY – 400 ACRES (WI = 100%, NRI = 84%)

Investor Update

22

December 2010

OKLAHOMA - TONKAWA EAST UNIT

22

KAY COUNTY –~2000 ACRES (WI = 100%, NRI = 81.25%)

907 acres – Held by Production

Identified infill development vertical and well locations

Laterally extensive reservoirs

Multiple Horizontal completion opportunities 100 feet Tonkawa Sand 340 feet Mississippi Lime formation Regional drilling precedents – 350-800 BOPD – Range Resources (NYSE:RRC) AFE $1.75 m – payback in 1 Year

Additional acreage under review

Investor Update

23

December 2010

TONKOWA REGIONAL HORIZONTAL ACTIVITY

23

Investor Update

24

December 2010

TONKAWA CROSS SECTION

24

4400’ (-3400’)

4100’ (-3200’)

3800’ (-2800’)

3200’ (-2300’)

2700’ (-1600’)

Miss Chat

RedForkSkinner

Cleveland

Layton

Perry

Tonkowa

Lovell Sand

Indicott

Mississippi Lime

Investor Update

25

December 2010

KAY COUNTY – STRATIGRAPHICAL COLUMN

25

Investor Update

26

December 2010

KANSAS SNAPSHOT

26

1

2

3

Cooper Project

Ellsworth Project

Jewel Project

McCracken Project

1

2

3

4

4

Investor Update

27

December 2010

Completed Lease Acquisitions during 2008

3D Seismic 2H 2008

20 plus prospects identified

Multiple well sites if oil bearing

Investment of $US1.5 million for land and seismic

Clark #1 Well – Dec 09 New Discovery – IP 200 BOPD

Water Disposal well completed

Cooper #5 Well – under completion now

Dry Hole Data to recalibrate seismic – Nov 2009

Lease acreage offsets 200 BOPD new oil wells

Other operators active in the area Murfin Drilling Company

John O’Farmer

Kansas – Cooper Project

27

COOPER LEASE, SHERIDAN COUNTY - 26,500 ACRES (53% WI, 46% NRI)

Investor Update

28

December 2010

STRATAGRAPHIC COLUMN - KANSAS

28

Investor Update

29

December 2010

Austex’s oil and gas footprint has increased from around 1,000 to approximately 70,000 acres

LEASE HOLDING SUMMARY

29

LEASE NAME ACREAGE WI NRI COUNTYLancaster Group 890 100% >81.25% Tulsa, OK

Sweet 400 100% 84.0% Pawnee, OK

Crisler 80 100% 84.375% Creek, OK

Gypsy-Walker Project 80 100% 81.25% Creek, OK

BlueHawk Project 160 50% 42.5% Osage, OK

Cleveland Project 160 100% 82.5% Creek, OK

Jewel Project 37,000 35% 28.8% Jewel and Mitchell, KS

Cooper Project 26,500 53% 46% Sheridan, KS

McCracken Project 3,200 50% 42.25% Ness, KS

Beltz Project 160 40% 33.8% Ness, KS

Tonkowa Unit ~2,000 100% 81.25% Kay, OK

Investor Update

30

December 2010

2011 - WORK PLAN

30

Lease Depth No. of Wells Target Cost per well

BOPD per well

Lancaster 2,000 ft 12 Red Fork / Tanaha $200,000 15-30

2,500 ft 8 Simpson $250,000 50-100

Tonkawa Recompletions 6 Cleveland / Layton / Miss. Chat $90,000 25-60

5,000 ft 8 Mississippi Lime $500,000 40-70

Horizontal 1 Mississippi Lime $1.75m 300-500

Kansas 4,500 ft 4 Lansing Kansas City / Toronto $450,000 50-250

Investor Update

31

December 2010

2011 WORK PLAN

31

BOPD $80Oil price 300 500 750 1200 2250

MONTHLY GROSS REVENUE $ 720,000 $ 1,200,000 $ 1,800,000 $ 2,880,000 $ 5,400,000

NET REVENUE (ROYALTIES, TAX, LIFTING COSTS) $ 532,800 $ 888,000 $ 1,332,000 $ 2,131,200 $ 3,996,000

OPERATING EXPENSE $ 350,000 $ 400,000 $ 400,000 $ 600,000 $ 600,000

CONTRIBUTION TOWARDS CAPEX $ 182,800 $ 488,000 $ 932,000 $ 1,531,200 $ 3,396,000

LOW MID

12 MONTH PRODUCTION TARGET BOPD 1000 2250

Investor Update

32

December 2010

NEXT STEPS – GROW SHAREHOLDER VALUE

TSX Listing – Calendar Year 2011

Engaged TSX Advisor/Sponsor Kingsdale Capital - Toronto

Mature Oil and Gas Investor base

Fully understand USA value proposition

Reserve position recognised NPV 10 $10-15 per barrel 2P

32

Friendly dual listing process

Nominal Listing Application Fee

Audit and Reserve Report (Target March 2010)

5-7 week process from application

Introduce AOK to Investor Community -Underway

Investor Update

33

December 2010

On track to becoming an independent oil and gas producer – 2 years young

Simple business model – ready access to oil and gas market

Demonstrated Revenue Growth

$A3.4m Cash as at 30 September 2010

Commissioned Independent Reserve update

Development and drilling program upside complimenting established production

Focus short term on Lancaster and Tonkawa production increase

Long term strategic acreage position

Technological advantage and leverage

Experienced Technical Team and Contractors in place to deliver

Summary

33

Investor Update

34

December 2010

34

APPENDICES

Investor Update

35

December 2010

Board and Management Team

Board and Management Team

35

Dr Peter PowerNon Executive Chairman Australia

40 years’ experience in hydrocarbon exploration worldwide.

Senior management positions with majors including MD of Ampolex Ltd prior to its acquisition by Mobil.

Current Non-Executive Chairman of Metgasco and Elk Petroleum

Founding Head of Geology at the Western Australian Institute of Technology (now Curtin University).

Former President, Australian Geoscience Council, Honorary Life Member, Australian Petroleum Production and Exploration Association (“APPEA”).

Richard Adrey Founder Oklahoma

Former Wall Street investment banker specialising in M&A.

Involvement in numerous public companies in the USA to-date, including Piper Aircraft, Cynocom Corp., Medisys, Versatech and Energy Capital Group.

Holds a B.S. in finance.

Dan LanskeyManaging Director & Founder

Over 10 years’ senior management experience for a number of ventures in Asia, Europe and the USA.

Post-Graduate business degree from Griffiths University, Qld.

Member of the Petroleum Exploration Society of Australia (PESA).

Investor Update

36

December 2010

Board and Management Team (CONT’D)

36

Kay PhilipNon Executive Director Australia

Geophysicist with extensive experience in project acquisition and financial analysis of resources projects.

Honorary Associate at the School of Physics, University of Sydney.

Awarded the Chevalier de l’Ordre National du Merite by the French Government for facilitating collaborations between Australian and French scientists.

Senior Fellow of the Financial Services Institute of Australia (“FINSIA”), Member Australian Institute of Physics (“AIP”), Member Australian Society of Exploration Geophysicists (“M.ASEG”)and Secretary of the Australian-French Association of Science and Technology (“AFAS”)

Trevor Sykes Non Executive DirectorAustralia

Well known resources journalist with extensive contacts throughout industry.

Previously Editor of the Bulletin, Assistant Editor of the Australian Financial Review.

Member of the SA Mining & Petroleum Expert Group.

Patron of the Sydney Mining Club.

Investor Update

37

December 2010

RESERVE POSITION - MARCH 2009

37

CLASSIFICATION OIL (BO) GAS (Mcf) BOE

1P 5,596,580 111,120 5,607,692

2P 7,388,682 276,833 7,416,365

3P 13,657,538 4,313,935 14,088,930

Petroleum Resources Management System (PRMS) – SPE – 2007

Competent Person Statement: - The estimates of oil and gas reserves have been prepared by Bruce A. Foster, an independent consulting Petroleum Engineer, registered with the State of Oklahoma in accordance with definitions and guidelines set forth in the 2007 Petroleum Resources Management System approved by the Society of Petroleum Engineers. Mr Foster, who has over 30 year’s industry experience, has consented to the inclusion of the technical information contained in this announcement.

New Reserve Report commissioned – Finalised September

Investor Update

38

December 2010

Patented, proven, commercialized

(SPE 68504 March 2001) Texas, Kentucky, Louisiana, Kansas, Oklahoma

Key features One inch diameter hole -horizontally up to 300 feet

Greatly increases connectivity into reservoir

Limestone, sandstone and coal seam gas reservoirs

Integrated component of well completions

Additional revenue stream.

Recent success Beltz Project – increased output to 35 BO per day

Coal Bed Methane

10 Year License Oklahoma – Other States if 25% WI Owned

Leverage to participation in additional acreage for WI and NRI

Radial Jetting Technology

38

Investor Update

39

December 2010

Competent Person Statement: - The estimates of oil and gas reserves have been prepared by Bruce A. Foster, an independent consulting Petroleum Engineer, registered with the State of Oklahoma in accordance with definitions and guidelines set forth in the 2007 Petroleum Resources Management System approved by the Society of Petroleum Engineers. Mr Foster, who has over 30 year’s industry experience, has consented to the inclusion of the technical information contained in this announcement.

COMPETENT PERSONS STATEMENT

39

Investor Update

40

December 2010

Oklahoma Geology

40

Investor Update

41

December 2010

Kansas Geology

41

Investor Update

42

December 2010

Coal Bed Methane Basins

42

Investor Update

43

December 2010

PUMP OVERVIEW

43

Investor Update

44

December 2010

WATER FLOOD BASICS

44

Source: Dept of Energy US

Investor Update

45

December 2010

AusTex Oil Limited - Australia

Level 56, MLC Centre,

19 Martin Place,

SYDNEY NSW 2000

Tel. 02 9238 2363

Fax 02 8088 7280

www.austexoil.com

Managing Director

Daniel Lanskey

Public Relations

FCR 02 8264 1003

Corporate and Contact Details

International Energy Corporation - USA

1801 East 71st Street,

TULSA

OKLAHOMA 74136

Tel. +1 918 743 7300

Fax +1 918 743 0099

www.ienergycorp.com

President

Richard A. Adrey

Investor Relations – Novus Capital Limited Russell Krause - 03 8602 1703

Robert Swarbrick – 03 8602 1706

45