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Otway Basin

EPP34 OTWAY BASIN: OFFSHORE SOUTH AUSTRALIA
15% INTEREST
OPERATOR: EXOIL LIMITED


The EPP34 Joint Venture consists of:

Exoil Limited                                       15%
Moby Oil & Gas Limited                      20%
National Energy Pty Ltd                      15%
United Oil & Gas Pty Ltd                     30%
Gascorp Australia Pty Ltd                  10%
National Gas Australia Pty Ltd            10%


Figure 5 below shows the location of EPP34 (plus EPP35 and EPP36 referred to below) and displays structural elements and well control. For a geological description of EPP34 see Section 7 of the Information Memorandum.

Otway Basin

The Trocopa seismic survey of 1,100 kms of new 2D seismic data was acquired in EPP34 during the quarter ended 30 June 2008. Reprocessing of more than 1,500 kms of old seismic data covering the permit is also planned simultaneously with the processing of the seismic data from the Trocopa survey. Interpretation is being focused on the northern shelfal section of the block, targeting the Early Cretaceous Pretty Hill Sandstone. The Trocopa seismic survey will provide extensive modern 2D coverage in the northern part of the permit and is expected to open up the Joint Venture to the possibility of a series of gas plays.

The permit is not subject to Native Title claims.

Budgeted Expenditure – EPP34


Year of Term of Permit Summary Work Program
Exoil's 15% Share of
Budgeted Expenditure* A$
Indicative Expenditure* A$
   
2008/2009
2009/2010
Year 4 Interpretation & Mapping
30,000
Year 5 Drill One Well
NIL
TOTAL BUDGETED EXPENDITURE 2008/2009
30,000
TOTAL BUDGETED EXPENDITURE 2009/2010
NIL
*ASSUMPTIONS:
That the Year 5 well obligation is either farmed out or rolled into Year 6 or an election is made not to drill.


EPP35 OTWAY BASIN: OFFSHORE SOUTH AUSTRALIA
30% INTEREST
OPERATOR: EXOIL LIMITED


The EPP35 (Troas) Joint Venture consists of:

Exoil Limited                                30%
Gascorp Australia Pty Ltd          30%
National Energy Pty Ltd               20%
Moby Oil & Gas Limited               20%

Figure 5 above shows the location of EPP35. For a geological description of EPP35 see Section 7 of the Information Memorandum.

EPP35 contains the Troas gas accumulation where gas indications in the Troas-1 well were noted over more than 1,000 metres of sedimentary section. The permit therefore has a proven hydrocarbon system in place. The Joint Venture’s focus has been on the Troas Deep Prospect and it currently plans to shoot a 325 km² 3D seismic grid over the Troas Deep complex. This is budgeted for 2009/2010, with the Joint Venture planning to farm out the cost of this survey.

The permit is endowed with a wide range of potential prospects, with ‘fair to good’ seismic and well data coverage.

The permit is located approximately 120 km from the gas pipeline to Adelaide.

The permit is not subject to Native Title claim.

Budgeted Expenditure – EPP35

Year of Term of Permit Summary Work Program
Exoil's 30% Share of
Budgeted Expenditure* A$
Indicative Expenditure* A$
   
2008/2009
2009/2010
Year 3 Geological & Geophysical Studies
Carry Out 325km² 3D Seismic Survey

7,500
NIL


NIL
Year 4 Processing Interpretation
100,000
TOTAL BUDGETED EXPENDITURE 2008/2009
7,500
TOTAL BUDGETED EXPENDITURE 2009/2010
100,000
*ASSUMPTIONS:
That the Company’s share of the Permit obligation to acquire 325 km² of 3D seismic is met by a farminee.


EPP36 OTWAY BASIN: OFFSHORE SOUTH AUSTRALIA
30% INTEREST
OPERATOR: EXOIL LIMITED


The EPP36 Joint Venture consists of:

Exoil Limited                              30%
Gascorp Australia Pty Ltd        30%
National Energy Pty Ltd            20%
Moby Oil & Gas Limited             20%

Figure 5 above shows the location of EPP36. For a geological description of EPP36 see Section 7 of the Information Memorandum.

EPP36 is a deep water area, parallel to the Morum Sub-basin. It is thought to have excellent reservoir potential for stacked plays in thick Upper Cretaceous section.

Due to its proximity to the Morum Sub-basin, EPP36 is postulated to have scope for marine influenced source rock in deep water.

There is an obligation in Year 3 of the permit to acquire 1,100 kms of new 2D seismic that is planned to be met by a farminee.

The permit is not subject to Native Title claims.

Budgeted Expenditure – EPP36

Year of Term of Permit Summary Work Program
Exoil's 30% Share of
Budgeted Expenditure* A$
Indicative Expenditure* A$
   
2008/2009
2009/2010
Year 3 Geological & Geophysical Studies
Acquire 1,100 kms of 2D Seismic

5,000
NIL

5,000
NIL
Year 4 Seismic Processing & Interpretation
50,000
TOTAL BUDGETED EXPENDITURE 2008/2009
5,000
TOTAL BUDGETED EXPENDITURE 2009/2010
55,000
*ASSUMPTIONS:
That the Company’s share of the obligation to acquire 1,100 kms of 2D seismic is met by a farminee.


Vic/P61 OTWAY BASIN: OFFSHORE VICTORIA
30% INTEREST
OPERATOR: EXOIL LIMITED

The Vic/P61 Joint Venture consists of:

Exoil Limited                             30%
Gascorp Australia Pty Ltd       30%
Moby Oil & Gas Ltd                  20% (earning pursuant to farmin)
Otway Oil & Gas Pty Ltd          20% (holds 10% on behalf of each of Octanex NL and Strata Resources NL)

Figure 6 below shows the location of Vic/P61 and displays prospects and leads, well control and nearby discoveries. For a geological description of Vic/P61 see Section 7 of the Information Memorandum.

Otway Basin prospects and leads

Vic/P61 is in the offshore Otway Basin some 50 to 60 kilometres southwest of Port Campbell. The area comprises 30 graticular blocks covering approximately 1,874 kms² and is situated on the shelf margin of the Basin where water depths vary between 80 and 500 metres. The permit’s eastern boundary is close to gas discoveries and new developments at Minerva, Geographe, Thylacine and Casino. Seismic surveys over the permit are entirely 2D and vary in quality and extent. The Joint Venture plans to acquire up to 1,000 line kms of new 2D seismic.

The permit is not subject to Native Title claim.

Budgeted Expenditure – VIC/P61

Year of Term of Permit Summary Work Program
Exoil's 30% Share of
Budgeted Expenditure* A$
Indicative Expenditure* A$
   
2008/2009
2009/2010
Year 2 Geological & Geophysical Studies
Acquire 1,000 kms of 2D Seismic

10,000
NIL

10,000
NIL
Year 3 Carry Out 450 km² 3D Siesmic Survey
NIL
NIL
TOTAL BUDGETED EXPENDITURE 2008/2009
10,000
TOTAL BUDGETED EXPENDITURE 2009/2010
10,000
*ASSUMPTIONS:
That the Company farms out the cost of all Year 2 and Year 3 obligations. If the Company is unable to farm these out it will be required to fulfil them or surrender the permit. To meet these obligations the Company would need to raise capital, as the indicative cost for the Company’s share of the 2D seismic survey is $600,000, for the 3D seismic survey is $2,700,000 and for the well (in Year 5) is $5,400,000.




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