Annual Summary and Expenditure Report on Mining Activities and Production OperationsThe information in this form is required under regulations 39 and 41 of the Crown Minerals (Petroleum) Regulations 2007; specifically the items outlined in Parts 2 and 3 of Schedule 6. The permit holder must supply this information to New Zealand Petroleum & Minerals no later than 31 March following the end of each calendar year in which the permit was in force.

Where information prescribed in this form (and the relevant data templates) exceeds that of the aforementioned regulations, those data are requested and must be supplied under section 90(3)(b) of the Crown Minerals Act(1991) as marked with an asterisk.

If there is not (and has never been) production under the permit, please discontinue and complete the TEMPLATE r38 & r41 Report form, otherwise please follow the instructions outlined in the boxes and add or delete lines from paragraphs and tables as required.

Name your template: P XY ZZZZZ ASR 2016 where X denotes the permit type prospecting (P), exploration (E) or mining (M); Y corresponds to licence (L) or permit (P); and ZZZZZ is the permit number.

The completed forms in and any relevant attachments should be uploaded in native Word or Excel format to New Zealand Petroleum & Minerals, at: https://permits.nzpam.govt.nz/aca/. If you have any questions, please email nzpam@mbie.govt.nz.

Permit holder name and address Permit numberReporting period

From 1 January 2017

To 31 December 2017

Permit type Mining Permit OR Mining Licence Operation name

Please change dates if the permit was awarded after 1 January or if the permit ended before 1 December.

Document control

Name Position Phone Email

PartThe applicable

submission document (or part thereof)

RoleAuthor,

reviewer etc.

Please note that there is a final sign off at document end. This list will be used for clarification of certain parts, if required.

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Data templates

Please complete TEMPLATE Production Data (see attached) to report the following annual summary items:1. For each well, reservoir, and field, daily, monthly and annual calculated, measured and cumulative

production rates.2. For each well, reservoir, and field, the number of days or part days that they were in production.3. For each well, reservoir, and field, the calculated daily and monthly gas and water injection rates.4. For each well, the number of days or part-days on which gas and water injection occurred.5. For each well and reservoir, the watercut, and the gas to oil, and condensate to gas ratios.6. For each well, if measured, the flowing tube head and flowing down-hole pressures.7. The fuel gas or oil used and gas or oil flared in extracting petroleum.8. If measured at any location, its oil, condensate, and gas gravity (using the American Petroleum

Institute scale).9. For each well, if measured, the static tube head and static down-hole pressures.21. The daily oil, condensate, gas, and water production figures, per well, from any appraisal activities.24. The cumulative gas and water injection volumes since reservoir and well injection commenced.

Please complete TEMPLATE Resources and Reserves (see attached) to report the following annual summary items:18a. A report on petroleum initially in place, which includes estimates of oil initially in place and natural

gas initially in place; and18b. A report of P90, P50, and P10, or proven, and proven plus probable, and proven plus probable plus

possible estimates (1P, 2P, and 3P estimates) for remaining and ultimately recoverable oil, condensate (C5+), liquefied petroleum gas (propane plus butane) and gas (methane and ethane)

(including an explanation of the methodology used to calculate the estimates);18c A report on C50 estimates (2C estimates) for contingent resources;18f. The permit holder's estimates of oil initially in place and gas initially in place.

If there is (or has) been production under the permit, both of the above templates must be completed and submitted.

Information to be included in annual report under regulation 39

Production data1. to 9. Production figures

For each well related to the permit*, please complete a separate r39 Prod tab in the TEMPLATE Production Data Excel spreadsheet.

Completion intervals10. For each well, the completion and perforation intervals.

Complete the table below for each active well in the permit. Valid types include:

Open Hole Liner Completion Cased Hole

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Slotted liner Single Completion

Screen and liner Multiple Completion

Cemented liner Alternate Completion

Slim Hole Completion

Well name Type

Formation*

Depth to Base* Depth to Base*

e.g. Alpha-1 Slotted liner 1700 1800 1450 1500

Depth to top* (MAH)

Depth to top* (TVD)

Insert well name in the column

belowUse one of the above values (MAH) (TVD)

Mangahewa Formation

Additional information:

Include additional information in the space below.

Insert your response here

Well suspensions11. For each well, any suspension or downtime and the reasons for it.

Complete the tables below for any wells with production downtime. Valid statuses include:

Shut-in Suspended Permanently Abandoned

Well name Status From To

Reason(dd/mm/yy) (dd/mm/yy)

e.g. Alpha-1 Shut-in 5/15/2014 1/19/1900 Pressure build up study

Insert well name in the

column below

Use one of the above

values

Additional information:

Include additional information in the space below.

Insert your response here

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Well-site activities12. Any workovers and their purpose

Complete the tables below for any activities occurring in.

Workover activitiesWorkovers

Purpose Outcome*Start* End*

Formation*Depth*

(dd/mm/yy) (dd/mm/yy) (MAH)

e.g. Alpha-1 Descale 3/1/2014 3/7/2014 1800

Insert well name

Flow increase of 2 barrels per

dayMangahewa Formation

Additional information:

Include additional information in the space below.

Insert your response here.

Stimulation activitiesStimulation*

Purpose* Outcome*Start* End*

Formation*Depth*

Insert well name (dd/mm/yy) (dd/mm/yy) (MAH)

e.g. Alpha-1 3/1/2014 3/7/2014 1800Increase permeability

Flow increase of 2 barrels per

dayMangahewa Formation

Additional information:

Include additional information in the space below.

Insert your response here.

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Field investigations and surveys13 A summary of—

(a) the production, development, and exploration activities undertaken in the field or as studies; and

(b) the results of those activities, including—

(i) any significant revised views on the geology and geophysics (including any in relation to geological or seismic interpretations or models, structure, and stratigraphy); and

(ii) any petrophysical interpretation carried out; and

(iii) reservoir fluid parameters; and

(iv) reservoir performance, reservoir model, production, and injection profiles; and

16 Details of any surveys undertaken during the report period.

Your response should include a summary of any geological, gravity, magnetic, geochemical surveys or literature reviews undertaken as either fieldwork or desktop studies. Please add any figures or diagrams you wish and refer to regulation 44 for additional guidance.

If a report has been submitted to NZP&M, please reference the Petroleum Report number in your response.

Insert your response here.

Seismic - acquisition13 A summary of — (cont’d)

(v) any seismic surveys carried out in relation to the permit, including,—

(A) if a two-dimensional survey, the total line kilometres acquired; or

(B) if a three-dimensional survey, the total area surveyed and the grid size

Complete the tables below, please identify any multi-client data purchased for submission to the chief executive as part of the permits work programme by suffixing the survey name with (MC Data).

2D

Acquired

Insert survey name in the column below (km) (km)Permit total 0 0e.g. Cook Strait 2D 300 250

Total for two-dimensional surveys Full Fold Acquired

3D

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Acquired Grid Size

Insert survey name in the column below (km) (km) (m by m)Permit total 0 0e.g. Cook Strait 3D 300 250 25 by 25

Total for three-dimensional surveys Full Fold Acquired

Additional information:

Include additional information in the space below.

Insert your response here

Seismic - reprocessing13 A summary of — (cont’d)

(vi) any reprocessed geophysical data obtained, including details of the total line kilometres processed

Complete the tables below.

2DReprocessed

Insert survey name in the column below (km)Permit total 0e.g. Cook Strait 2D 300

Total for two-dimensional surveys

3DReprocessed

Insert survey name in the column belowPermit total 0e.g. Cook Strait 3D 300

Total for three-dimensional surveys(km2)

Additional information:

Include additional information in the space below.

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Facilities14. A status report on any facilities under design or construction or that have been commissioned.

Your response should include a high level summary of any facilities under design or construction or that have been commissioned during the calendar year.

Insert your response here.

Drilling activities15. Details of any drilling activities.

Complete the table below.

If there have been more than five new wells (please include any planned or unplanned sidetracks as a new well).

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Spud date Target formation

eg. Alpha-1 ST1 Exploration 41° 14' 53.78 174° 45' 00.32 41° 14' 53.50 174° 45' 00.68 2/1/2014 2/7/2014 2/14/2014 2/21/2014 RKB 233 1800 1500 300 Alpha-1

Well NameThis must be the official well name

Well typeExploration, Appraisal,

Production or Injection

Top hole latitude

NZGD 2000

Top hole longitude

NZGD 2000

Bottom hole latitude

NZGD 2000

Bottom hole longitude

NZGD 2000Total depth

dateCompletion

dateRig release

date

Depth referencee.g., RKB,

Rotary Table

Reference elevation(metres above

Mean Sea Level)

Total depth(MAH)

Total depth(TVD)

Sidetrack kick-off depth(MAH)

Parent well

Mangahewa Formation

Additional information:

Include additional information in the space below.

Insert your response here

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Mining operations17. An outline of proposed mining operations to be undertaken in the next year, including—

(a) the proposed production profile for the projected life of the field (in tabular and graphic form); and(b) an indicative maximum deliverability profile using the installed infrastructure; and(c) the proposed production and reservoir management programme

Complete the tables below outlining the proposed production profile for the projected life of the field.

Gas LPG Condensate Oil(Bcf) (kt) (mmbbl) (mmbbl)

e.g. 2014 20 60 50 7020152016201720182019202020XX

Please insert a graph outlining the proposed production profile for the projected life of the field.

Insert your graph here

Please provide an indicative maximum deliverability profile using the installed infrastructure.

Insert your response here

Reserves and resources18(a-c, f) Petroleum initially in place and gas initially in place estimates

Please complete the TEMPLATE Resources and Reserves Excel spreadsheet.

If the permit contains multiple reservoirs, please provide values for each reservoir.

18(d) a full explanation of why contingent resources are classified as contingent (including a description of development and cost thresholds); and

18(e) a copy of any report or any field study undertaken that results in a revised estimate of recoverable or in-place petroleum

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Your response should include a description of classification, development and cost thresholds, if known.

Attach with this report other relevant reports or field studies as required under 18(e).

Insert your response here

Methodology and supplementary figures19. An explanation of the methodology for calculating any of the data referred to in clauses 1 to 18 if—

(a) an explanation of the methodology has not been supplied in previous reports under regulation 39; or

(b) the methodology has not previously been used in relation to the permit.

20. Supplementary figures and diagrams, if appropriate

Your response should describe the methodology to calculate the reserves and resources.

Include any figures or diagrams you may wish to add for any section of this report.

Insert your response here

Well test figures21. The daily oil, condensate, gas, and water production figures, per well, from any appraisal activities

For each well, please complete the relevant parts of r39 Prod tab in the TEMPLATE Production Data Excel spreadsheet.

Iwi engagement report22. The iwi engagement report required under section 33C of the Act

Section 33C of the Crown Minerals Act 1991 states that every holder of a Tier 1 permit must provide to the Minister an annual report of the holder’s engagement with iwi and hapū whose rohe includes some or all of the permit area or who otherwise may be directly affected by the permit.

The report should also note any engagement with or notification to iwi or hapū that has taken place as a requirement of any other legislation.

The purpose of the report is to encourage engagement with relevant iwi and hapū in a positive and constructive manner and will enable NZP&M to monitor progress in this regard. It is intended to be a high level indication of how iwi engagement is progressing, not a detailed account of each transaction. Of course, sharing examples and details is welcomed, but not required.

Your report should describe your engagement with iwi and hapū over the previous calendar year regarding permit activities. Where applicable, it should also note why there has not been any engagement.

Please note the following points regarding the assessment of the report.

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NZP&M will monitor the engagement with iwi and hapū and this will be an agenda item in the annual review meetings

NZP&M will assess whether the views of iwi and hapū are included in the report and will take into account any comments received from iwi and hapū

NZP&M may discuss with iwi and hapū the outcome of the review of the report.

Insert your response here.

System deliverability23. A report of minimum, average, and maximum daily and hourly system deliverability for gas using the

installed infrastructure.

Complete the table below.

Minimum Average MaximumGJ Cubic feet GJ Cubic feet GJ Cubic feet

HourlyDaily

Additional information:

Include additional information in the space below.

Insert your response here

Injection volumes24. The cumulative gas and water injection volumes since reservoir and well injection commenced

For each well, please complete the relevant parts of r39 Prod tab in the TEMPLATE Production Data Excel spreadsheet.

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Information to be included in annual report under regulation 41 on expenditure incurred under permitExpenditureInformation to be included in annual report under regulation 41 on expenditure incurred under permit

Complete the tables below where the figures are in NZD and inclusive of GST.

Activity Expenditure $NZD Note (if required)

1 Exploration drillingIncluding any re-entries and side-tracks $

2 Appraisal drillingIncluding any re-entries and side-tracks $

3 Development drillingIncluding any re-entries and side-tracks $

4 Seismic reprocessing $

5 Seismic acquisitionThis includes the licencing of any multi-client data $

6 Geological and geophysical technical analyses $

7Permit administrationSuch as annual fees, application fees, and general administration (it is not possible for this field to be blank)

$

8

Environmental regulationThis includes costs associated to any resource/marine consent application and subsequent conditions, as well as other environmental administration

$

9(a) Operating expenditure for production activities* $

9(b) Capital expenditure for production activities* $

All amounts should be entered in $NZ (GST included). Include permit fees and unattributed time in permit admin and any planning time/costs with the related activity. If no costs have occurred in a specific activity, please indicate this with a ‘0’ value.

DeclarationI declare that any information provided in this submission is true and correct to the best of my knowledge and that I am authorised to make this submission on behalf of the permit participant(s).

Print name:

Position:

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Company:

Date:

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