For personal use only Company Announcements Australian Stock - PDF document

PETSEC ENERGY LTD ACN 000 602 700 11 July 2007 For personal use only Company Announcements Australian Stock Exchange 20 Bridge Street Sydney NSW 2000 Dear Sirs Presentation – Macquarie Bank Attached is a copy of presentation to be delivered today by Mr Ross Keogh at Macquarie Bank’s Emerging Oil Corporate Day. For Further Information: Mr Craig Jones Mr Ross A Keogh Petsec Energy Ltd Petsec Energy Inc. Level 13 3861 Ambassador Caffery Parkway 1 Alfred Street Suite 500 Sydney NSW 2000 Lafayette LA 70503 Tel: 612 9247 4605 Tel: 1 337 989 1942 Fax: 612 9251 2410 Fax: 1 337 989 7271 Level 13, Gold Fields House, 1 Alfred Street, Sydney NSW 2000, Australia PO Box R204, Royal Exchange NSW 1225, Australia Telephone (61 2) 9247 4605 Facsimile (61 2) 9251 2410 Company information is available on: www.petsec.com.au

For personal use only PETSEC ENERGY PETSEC ENERGY An Exploration and Production C An Exploration and Production Company in mpany in The USA and China The USA and China Macquarie Bank Macquarie Bank Emerging Oil Corporate Day Emerging Oil Corporate Day Sydney, Australia Sydney, Australia July 11, 2007 July 11, 2007 1

FORWARD STATEMENT DISCLAIMER For personal use only The information presented herein contains predictions, estimates and other forward looking statements that are subject to risk factors that are associated with the oil and gas business. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about the estimates of reserves, competition, government regulation and the ability of the company to meet its stated business goals. All references to dollars in this presentation are to US currency, unless otherwise stated. 2

Petsec Energy Ltd A growth exploration & production company For personal use only � Operations in the Gulf of Mexico, USA and Beibu Gulf, China � 2P Reserves at 31 December 2006 (Petsec estimate) USA: 38 Billion cubic feet of gas equivalent China: 3.6 – 4.6 Million barrels of oil � Prospect Inventory USA: 290 Bcf + 30 MMbbl oil China: 5 – 8 MMbbl oil � 2006 Cashflow of US$45 million � Current production of 20 MMcfe/d � Market capitalisation A$220 (9/7/07) 3

Personnel - USA For personal use only Ross Keogh – President • 25 years experience in the oil & gas industry • Bachelor of Economics degree Michael Radabaugh – Vice President of Business Development and Planning • 25+ years experience in petroleum exploration and production • Bachelor of Science in Civil Engineering Denis Swords – General Counsel and Secretary • 7 years experience as an exploration geologist • 15+ years experience as legal counsel for oil and gas companies • Master of Science in Geology; Juris Doctorate Frank Steele – Land Manager Edward Blaise - Geologist • 25+ years landman experience 30+ years experience in the oil and gas industry • Certified Professional Landman Bachelor of Science in Geology Nick Repar – Geophysicist Larry Teter - Geophysicist • 25+ years experience in the oil and gas industry 25 years as a geophysicist • Bachelor of Science in Applied Geophysics Bachelor of Science in Geology Michael Welborn – Reservoir Engineer Team of 30 • 30 years in the oil and gas industry 4 • Bachelor of Science – Petroleum Engineering

Gulf of Mexico For personal use only 53 Offshore Leases 18 Held by production Terrebone Parish 5

Why the Gulf of Mexico For personal use only Infrastructure (One Land Owner - Regulator) 1,141 Oil & Gas Fields - 1.6 MMBO & 10.1 BCF Per Day 14,000 Miles of Pipeline Majors exploring/developing deep water leaves opportunities for proven shelf acreage e.g. W&T ACQ KERR-McGEE SHELF 150 MMCFe/D & 330 BCFe MMS ESTIMATE GOM SHELF Remaining Proved Reserves 4,870 MMBO & 21.5 TCF 777 MMBO & 15.4 TCF 6 Unproved Reserves 3,361 MMBO & 9.0 TCF 201 MMBO & 3.1 TCF

7 Gulf of Mexico - Lease Turnover For personal use only

8 Gulf of Mexico – Top 50 Producer For personal use only

Gulf of Mexico – Producing Assets For personal use only • Production 8.2 Bcfe (2006 year) • Operating Cashflow US$ 44.4m (2006 year) • Producing fields - Vermilion 258 - Main Pass 18/19 - Mobile Bay 953/955 9

10 Mobile Bay Development – Q4 ‘07 For personal use only

Mobile Bay 952A Platform For personal use only • Acquisition: - Mobile Bay 952A platform & pipelines - Mobile Bay 955 lease, pipelines & 1 producing well - Mobile Bay 953 lease & 2 producing wells • Host facility for production of discoveries at Mobile Bay 993, 994, 950, 951 & VK26. • Consideration is assumption of abandonment liabilities 11

Mobile Bay 993, 994, 950 & 951 For personal use only 6” Sales Line IP Sales Rate 26.2 MMCFD Petsec Energy Petsec Energy 6” MO 950-1 Single Well IP Rate 5 MMCFD MO 953-1 6” MO 953-3 MO 951-1 Single Well IP Rate 4.2 MMCFD MO 952 A Host Platform Petsec Energy Petsec Energy 40 MMCFD Capacity MO 953-3 MO 993-1 6” Rate 5 MMCFD Single Well Remote Wells IP Rate 6 MMCFD IP Rate 21.2 MMCFD Total MO 994 A 4” 2 Wells MO994-2 IP Rate 3 MMCFD VK26-1 IP Rate 3 MMCFD 12

Mobile Bay 873 For personal use only MO 829 Single Well IP Rate 9 MMCFD Subsea Tie In To DIGP Sales Line Petsec Energy 6” 13

Petsec - Focus Gulf of Mexico Joint Venture For personal use only • Exploration partnership targeting OCS lease sales • Complimentary strengths – Petsec’s offshore operating expertise – Focus’s dedicated full-time prospect generation • 50% interest in 33 OCS lease blocks acquired mid-2006 – Continually being high graded – No mandatory commitment to drill – 3D seismic in house • JV to continue in 2007 & 2008 with a 35% W.I 14

Petsec - Focus Joint Venture Current Status For personal use only 7 wells drilled to date 7 wells drilled to date • 6 successful – Mobile Bay • 1 dry hole – Eugene Island 310 • Petsec expected reserves 59 BCFE gross, 19.6 MCFE net • F&D costs to date including Eugene Island 310 - $1.76/mcfe 29 currently identified prospects remaining 29 currently identified prospects remaining • Expect to drill approximately 60% over next 3 – 4 years • Petsec risked expected reserves 165 BCFE • Future capital - $120 MM for drilling & $210 MM for development • Projected F&D costs $2.00/mcfe 15

Petsec – Indicative Production Profile Existing Reserves + US Prospects For personal use only 140 120 100 MMcfe/day 80 60 40 20 0 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Vermilion 258 MP 19/18 Mobile China Onshore Focus Gas Focus Oil 16

Gulf Coast - Moonshine Exploration For personal use only 36 - 37.5% NRI Operator • West bank of Mississippi River, 50 miles west of New Orleans • 94 square mile area, only 25% cover with 2D seismic, no previous 3D seismic • Known productive area - 340 Bcfe gas, 7.3 MMbbl oil • 3D seismic programme completed in August 2005 • Drilling commenced April 2007 17

Moonshine Drilling For personal use only •Bowie Lumber # 1 well encountered tight gas and not completed •Rig released and seismic to be reprocessed •Drilling potentially to resume in 4 th qtr of 2007 18

Terrebonne Parish- AVO Prospect Package 19 A’ A For personal use only

Terrebonne Parish- AVO Prospect Package 20 A’ # C-17 For personal use only A

21 China – Beibu Gulf For personal use only

China 6-12 South Oil Discovery For personal use only • 320 feet net hydrocarbon pay, including 270 feet net oil • Oil extends down dip beyond structural closure • 70-100 MMbbl OIP • 30 - 50% oil recovery • Appraisal flow-test 5,750 boe/day • Updip side-track - cores • Downdip side-track - downdip potential • Estimated reserves 6.12/6.12.S Area 19-37 MMbbl 2.3-4.5 MMbbl net to Petsec 22

China 6.12/6.12 South Oil Development For personal use only Development Options Development Options • WHPP – FSO • WHP - FPSO • Production capacity 20,000-25,000 bopd • Capacity to tie 12.8W/E & 12.2/12.3 into 6.12S facility • Development Timing – Feasibility Study 1Q 2007 – Overall Development Plan mid 2007 – Final Investment Decision 3Q 2007 – Start development 4Q 2007 – Production 1 st half 2009 23

24 China 6.12 Area Exploration– 4 wells Q4 For personal use only

Financial Performance 2002-2006 For personal use only Net Revenue Production US$ Million Bcfe 75 10 60 8 3 yr CAGR 33% 3 yr CAGR 22% 6 45 4 30 2 15 0 2003 2004 2005 2006 0 2003 2004 2005 2006 EBITDAX Net Operating Cashflow US$ Million US$ Million 50 50 40 3 yr CAGR 35% 3 yr CAGR 41% 40 30 20 30 10 20 0 10 2003 2004 2005 2006 25 0 2003 2004 2005 2006