Timor Leste-Australia Joint Petroleum Development Area

JPDA 06-103

Offshore Bonaparte Basin

PPP equity
15% held through wholly owned subsidiary Pan Pacific Petroleum (JPDA 06-103) Pty Ltd

Oilex (JPDA 06-103) Ltd 10%

Other partners
Global Energy Inc 20%, GSPC (JPDA) Ltd 20%, Bharat PetroResources JPDA Limited 20%, Japan Energy E&P JPDA Pty Ltd 15%

Effective 15 January 2007

Current Area
1935 km2

JPDA 06-103

Pan Pacific Petroleum (JPDA 06-103) Pty Ltd acquired a 15% interest in the Block of JPDA 06-103 Production Sharing Contract, by farming into a 5% interest from each of Global, Bharat and GSPC.

JPDA 06-103 is located within the northern Bonaparte Basin, offshore northwest Australia, within the Joint Petroleum Development Area (the “JPDA”) issued pursuant to the Timor Sea Treaty between Timor-Leste and Australia. The contract area is adjacent to several existing oil fields such as Laminaria and Corallina and the recent Kitan development.

The original Contract Area has been subject to 50% relinquishment as a condition of extensions.

East Timor

The JV drilled two wells in the PSC around the end of 2009. The first well, Loré-1 was drilled to test the Elang and Plover objectives, but encountered only minor shows with no zones of significant moveable hydrocarbons, and the well was plugged and abandoned. The second well, Lolotoe-1 targeting the same objectives drilled to its target depth of 3935m MDRT, log evaluation of the primary objective Elang/Plover formation sandstones also indicated that no commercial hydrocarbon zones were present and the well was plugged and abandoned.

The JV has a remaining commitment of at least one exploration well.

Oilex the operator of JPDA 06-103 has on behalf of the JV submitted a request to the designated authority, the Autoridade Nacional do Petróleo (“ANP”) to terminate the PSC by mutual agreement because of ongoing Joint Venture concerns associated with uncertainty of the PSC tenure.

The ANP has granted a temporary suspension of the PSC until January 15th 2015 for the purpose of resolving a final position on this request.