Gas Drilling Information Sheet GeneralInformation Information Notes Total Reserve Size (gigajoules - GJs) 250,000,000 Price per gigajoule of production 10.45 41 State Royalties 10.00% 2, ^3 Tax 30.00% ^4 Required Rate of Return 12. 00% Vertical Well Drilling Information Information Notes 9 10 11 4,000,000 45 12 13 Capital expenditure ($s per well) 14 Well life (years) 10 46 Well salvage ($s per well) Well capping and rehabilitation expense ($s per well) 400,000 47 Well production profile (GJs per well) 517,231 744,250 486,064 288,770 156,061 times the total number of wells 76,722 34,311 13,958 5,165 Well depreciation method 1,739 total production per well straightline 100 Well operating costs ($s per GJ) 1 47,19 2,324,271 232,427,071.69 Working Capital ~10 Wells drilled in given years and their operating life 47,11 Wells drilled at the beginning of Year 1 20 20 Wells drilled at the beginning of Year 2 20 20 20 20 20 Wells drilled at the be nning of Year 3 20 20 20 20 20 20 Wells drilled at the beginning of Year 4 20 20 20 20 20 20 20 20 Wells drilled at the beginning of Year 5 20 20 20 20 20 20 20 20 20 Wells in operation 20 40 60 80 100 100 100 100 100 100 80 40 Wells capped -20 -20 -20 -20 Horizontal Well Drilling Information Information Notes o 2 3 4 5 6 7 8 9 10 11 12 14 Capital expenditure ($s per well) 13 15 6,500,000 45 16 17 18 19 20 21 Well life (years) 17 46 Well salvage ($s per well) Well capping and rehabilitation expense ($s per well) 400,000 47 times the total number of wells Well production profile (GJs per well) 680,922 1,136,692 1,068,150 total production per well 50 731,671 463,089 288,688 181,135 115,289 74,630 49,154 12,923 22,406 15477 LO,840 7,691 5,523 4,010 Well depreciation method 4,888,290 straightline 47, ^8 244,414,502.05 Well operating costs ($s per GJ) 1 47,19 Working Capital 10 Wells drilled in given years and wells in operation profile 47,11 Wells drilled at the beainning of Year 10 10 10 10 10 10 10 10 10 Wells drilled at the beginning of Year 2 10 10 10 10 10 10 10 10 10 Wells drilled at the beginning of Year 3 10 10 10 10 10 10 10 10 10 Wells drilled at the beginning of Year 4 10 10 10 10 10 10 10 Wells drilled at the beginning of Year 5 10 10 10 10 10 10 10 Wells in operation 10 20 30 40 50 10 SO SO Wells capped -10 Notes 1 Contract specifies that this is a fixed price of gas at the wellhead over the life of project. ^2 in a given year, State Royalties ($) = State Royalties (%) x (Revenue - Allowed Extraction Costs). Allowable Extraction Costs include operating expenses and depreciation but exicudes the well capping and rehibilitation expense. 43 State Royalties are tax deductible. ^4 Tax is paid in the year of income. Note that it is assumed that any tax loses in any year will offset tax gains within the Primitive Energy tax consolidated group. 5 Capital expenditure on wells is recorded at the start of year in which the well is drilled. 6 Wells must operate for stated life to ensur pressure is sufficiently low for well capping. 47 All revenues and operating expenses are assumed to occur at the end of given year. 48 Straight Line depr over the life of the well). 49 Wages and other op all captured by the operating cost per GJ. ^10 Given the nature of the project, supply and servicing contracts, project has no working capital requirements. ^11 Wells drilled in years as indicated. Capital expend recorded at the beginning of the year. For example, the beginning of Year 1 corresponds to the 0 column