Anticline
Geological structure in which the rock strata have the shape of an inverted dish, or domal shape, favourable to the accumulation of hydrocarbons. In cross-section the rock strata display roll-over.

Antithetic Fault
A type of fault in which the dip of the fault plane is opposite the dip of the beds through which it cuts.

API Gravity
The universally accepted scale adopted by the American Petroleum Institute for expressing the specific gravity of oils.

Appraisal drilling
Drilling carried out to determine the physical extent, reserves and likely production rate of a field.

Barrel
The unit of volume measurement used for petroleum and its products: 1 barrel =
42 US gallons,

35 Imperial gallons (approx) or 159 litres (approx)

7.3 barrels = 1 ton (approx)

6.29 barrels = 1 cubic metre.

Barrel (of oil)
Unit of volume used for petroleum production. 1 barrel = 159 litres (approx), 42 US gallons, or 35 Imperial gallons.

Barrier Bar
Bank of sand separating the sea from a lagoon or estuary

bbl
Barrel of oil inclusive of Natural Gas Liquids

Basal
At the base of.

Basement
Igneous or otherwise non-prospective rocks underlying a sedimentary basin.

Basin
A segment of the earth's crust which has downwarped and in which sediments have accumulated. It is in such basins that hydrocarbons may be found.

BCF
One billion (thousand million = 109) cubic feet of natural gas at atmospheric temperature and pressure

Bed
A geological term describing a stratum (layer of sediments or sedimentary rock of considerable thickness and uniform composition and texture.

boe
Barrel of oil equivalent. The factor used to convert gas to oil equivalent is based upon an approximate energy value of 6,000 cubic feet per barrel and not price equivalent at the time.

boepd
Barrel of oil equivalent per day.

bopd
Barrel of oil per day inclusive of Natural Gas Liquids.

Carbonate
Sedimentary rock composed of calcium and/or magnesium carbonate eg. Limestone

Carried interest
When a company pays for all or part of a partner's costs during exploration or development, eg when a company "carries" a state that retains a participation interest in a field.

Clastics
Sediments derived from the erosion of pre-existing rocks (eg sandstone, shale).

Closure
The vertical distance from the top of a structure and the area within the lowest closing contour of a structure.

Completion
The process by which a finished well is either sealed off or prepared for production by fitting a wellhead.

Condensate
Hydrocarbons associated with natural gas, which are liquid under surface conditions but gaseous in a reservoir.

Conglomerate
Rocks composed of large rounded pebbles or fragments.

Core
Sample of rock obtained as a continuous section while drilling using a hollow bit and core barrel.

Cretaceous Period
The period of geological time which began roughly 130 million years ago and ended roughly 60 million years ago

Crude oil
The oil that is produced from a reservoir (after any associated gas has been removed); often referred to simply as CRUDE.

Cubic foot
The standard unit used to measure quantity of gas (at atmospheric pressure); 1 cubic foot - 0.0283 cubic metres.

Cut
The dissolution by an organic solvent of hydrocarbons from underground strata; cut is detected by examination of samples under ultraviolet light.

Delta
A deposition of sediments at the mouth of a river either in the ocean or lake, which results in the progradation of the shoreline.

Deposition/Depositional
Laying down of potential rock forming material i.e. sediments.

Depocentre
The site in a sedimentary basin coinciding with maximum sediment thickness.

Deregulation
Refers to the Australian Gas Market where state legislation allows existing and potential gas suppliers open access to pipelines to negotiate directly on unrestricted commercial terms with medium to large customers.

Development Phase
The phase in which a proven oil or gas field is brought into production by drilling production wells.

Developed Reserves
These are expected to be recovered from existing wells (including reserves behind pipe). Improved recovery reserves are considered developed only after the necessary equipment has been installed, or when the costs to do so are relatively minor.

Dip
The angle at which rock layers are inclined from the horizontal.

Down Dip
In a position below the top of a structure, within dipping strata.

Drill Stem Test or DST
Test of the productive capacity of a well when still full of drilling mud. The testing tool is lowered into the hole attached to the drill pipe and placed opposite the formation to be tested. Packers are set to shut off the weight of the mud and the tool is opened to permit the flow of any formation fluid into the pipe, where it can be measured.

Dry hole
A well drilled without finding gas or oil in commercial quantities.

Embayment
The structurally subdivisible portions of the onshore Otway Basin.

Entitlement and Acceptance Form
Means the Entitlement and Acceptance Form accompanying this Prospectus in relation to the Issue.

Eroded
Denudation or wearing away of the surface.

Ethane
A colourless gaseous hydrocarbon (C2H6).

Eustatic
Pertaining to simultaneous, world-wide changes in sea level (eg ice age). Eustatic sea level changes are cyclical in nature, and play a major role in controlling the depositional environments of sediments accumulating in marine or coastal basins.

Exploration drilling
Drilling carried out to determine whether hydrocarbons are present in a particular area or structure.

Exploration Licence
A licence to explore for oil and gas in a particular area issued to a company by the governing state.

Exploration Phase
The phase of operations in which a company searches for oil or gas by carrying out detailed geological and geophysical surveys followed up where appropriate by exploratory drilling in the most promising places.

Facies
A term to describe the sum total of features such as mineral content, sedimentary or metamorphic rock types.

Farm out
Where one company wishes to relinquish portion of its interest in an exploration or production licence in return for part of the costs to be paid by the farminee.

Fault
A fracture in the earth's crust along which the rocks on one side are displaced relative to those on the other.

Fault Block
The block of country either upthrown or downthrown by fault movements.

Fault Dependent Closure
Closure which is dependent upon the bounding fault plane providing an impervious seal to vertical and lateral migration.

Fault Independent Closure
Closure which is independent of the sealing potential of any adjacent fault plane.

Fault trap
A trap where a reservoir layer is faulted and brought against an impervious formation.

Field
A geographical area under which an oil or gas reservoir lies.

Flank
Side

Fluorescence
Emission of visible light by substances such as oil to ultraviolet light.

Fluviodeltaic
An environment of sediment accumulation produced by rivers flowing into deltas.

Fluvial, Fluviatile
Pertaining to rivers.

Fluvio-lasustrine
Pertaining to rivers and lakes.

Fold/Folding
A bend in rock strata commonly a product of deformation. Convex folds or domes often provide traps for hydrocarbons.

Formation
A unit in stratigraphy defining a succession of rocks of the same type.

Free Oil
Oil which may be collected and measured (as opposed to oil seen only by fluorescence).

Gas cap
A layer of natural gas above the oil in an oil reservoir.

Gas-Cut
Fluid (usually drilling mud or water) containing exsolved gas.

Gas detector
An instrument used at the time of drilling a well to detect hydrocarbons in the drilling mud stream.

Gas Field
A field containing natural gas but no oil.

Gas-Water Contact
In a reservoir, the depth at which the gas accumulation interfaces with underlying water.

Generation
The process by which organic matter is transformed into hydrocarbons in a Source Rock

Geochemical
A term meaning the study and measurements of the earth's chemical composition.

Geology
The science relating to the history and development of the Earth's crust.

GOC
Gas oil contact.

Graben
A fault-bounded downthrown block.

Graticular Block
An area enclosed by five minutes of longitude and five minutes of latitude, used in described the size of an exploration lease.

Gravity Survey
Airborne or ground survey over a grid, using instruments which measure variations in the magnitude of the earth's gravitational field.

Gross Reserves
Those accruing to a company before deduction of all royalties and after deduction of interests owned by others.

GR
Gamma ray.

ha
Hectares

High
A closed domal feature.

Homologues (Higher)
The paraffin series of hydrocarbons starting with methane (CH4) is a homologous series progressing by a CH2 increment up to complex molecules (over C60 H122). Homologues below pentane (C5H12) are gaseous at ordinary temperatures. Homologues between C5 and C15 are liquids and higher homologues are waxy solids.

Horst
A fault-bounded upthrown block.

Hydrocarbons
Compounds containing the elements hydrogen and carbon. They may exist as solids, liquids or gases.

Hydrocarbon Saturation
Proportion of free pore space in reservoir rock filled by hydrocarbons (oil or gas), calculated as a percentage (total pore space minus water saturation).

ILD
Wireline logging tool measuring Resistivity - Induction Laterlog Deep.

Igneous
Pertaining to rock units which are formed by solidification from a molten or partially molten state.

In Place Gas
Means a volume of gas contained in conventional hydrocarbon reservoirs in the ground and does not necessarily indicate the producibility of that gas to surface or the economic consequences of any production. Same as for Initial Gas In Place or In Place Gas.

In Place Oil
Means a volume of oil contained in conventional hydrocarbon reservoirs in the ground and does not necessarily indicate the producibility of the oil to surface or the economic consequences of any production.

Isochron
Line joining points of equal two way time.

Intracratonic Basin
Structural depression formed over an area of considerable size within a continent.

Kitchen Area
That portion of a basin containing mature source rocks capable of generating and expelling hydrocarbons.

Kl
Kilolitre

Lacustrine
Sediments deposited in a lake environment.

The Law
Means the Corporations Law of Australia.

Lead
An area which has been delineated by seismic coverage in which trap, reservoir and seal may have been identified but requires further exploration prior to being suitable for drilling.

Licence
An authority to explore for or produce oil or gas in a particular area issued to a company by the governing state; see EXPLORATION LICENCE.

Limestone
A rock composed of calcium carbonate.

Lithology/Lithologic
The physical and mineralogical characteristics of a rock.

Log anomaly
Where log interpretation of the geophysical down hole records indicates an anomalous zone of possible hydrocarbon bearing content.

Log interpretation
Interpretation of the geophysical logged record from a well.

Logs
A graphic representation of the rock strata traversed by a drill hole, or representation of the variation of some physical property in a drill hole with depth such as resistivity, acoustic velocity, gamma ray intensity.

M
Thousand (1,000)

m3
Cubic metre

Magnetic Survey
An airborne or ground survey using instruments which measure variations in magnetic intensity of the earth.

Marine
Deposited in the sea.

Maturation
Process involving time, temperature and pressure in which potential petroleum source rocks may generate hydrocarbons.

Mature
The condition, caused by pressure, temperature and time, in which organic matter in a potential source rock will be converted to hydrocarbons.

Mbbl
One thousand barrels.

Mboe
One thousand barrels of oil equivalent.

Mcf
One thousand cubic feet of natural gas.

Mcfd
One thousand cubic feet of natural gas per day.

Members
Means the shareholders of a company

Mesozoic
A geological era (comprising the Cretaceous, Jurassic, and Triassic periods) corresponding to approximately 65-225 million years ago

Metamorphic
Pertaining to rocks which have formed in the solid state in response to pronounced changes in pressure, temperature and chemical environments.

Migration
The process by which expelled hydrocarbons progress through the reservoir rock or along permeable barriers such as fault planes.

MM
Million (1,000,000)

Mmbbl
One million barrels.

Mmbo
One million barrels of oil.

Mmboe
One million barrels of oil equivalent.

Mmcf
One million cubic feet of natural gas.

Mmcf
One million cubic feet of gas.

Mmcfd
One million cubic feet of natural gas per day.

Msec
Milli-seconds, 1000 msec is equivalent to one second. For seismic surveys the depth to a geological marker is usually referred to in time (msecs). The time that it takes for a sound wave to propagate from the surface down to a geological marker (seismic reflector) and be reflected back to the surface is referred to as two-way time and is expressed in milli-seconds or seconds.

Mudstone
Similar to shale but lacks the lamination.

Natural Gas
A mixture of light hydrocarbons (generally mainly methane) found naturally in the Earth's crust, often in association with oil (when it is known as ASSOCIATED GAS)

Net Pay
Producible amount of hydrocarbons in the structure which carries a profit.

Net Reserves
Those reserves accruing to a company after deduction of all royalties and interests owned by others.

NGLS
Natural gas liquids.

NPI
Net profit Interest.

Offshore
The adjective applied to any structure or activity located or carried out at sea as opposed to on land (ONSHORE).

Off Structure
That part of a structure beyond the areas of closure.

Oil
A mixture of liquid hydrocarbons of different molecular weights.

Oil Field
A geographical area under which an oil reservoir lies.

OOIP
Oil originally in place.

Oil in place
An estimated measure of the total amount of oil contained in a reservoir, and, as such, a higher figure than the RECOVERABLE RESERVES of oil.

Onshore
The adjective applied to any structure or activity located or carried out on land as opposed to at sea (OFFSHORE).

Operator
An individual, partnership or corporation that has legal authority to drill wells and undertake production if hydrocarbons are found; the operator may either drill the well itself or employ a drilling contractor for this purpose. The operator is often part of a consortium and acts on behalf of this consortium.

Outer Slope
A marine environment of deposition beyond the continental shelf in water depths of 200-1000 metres.

Overthrust
In a position overlying a thrust fault plane.

OWC
Oil water contact.

P & A
Plug and abandon (a well) i.e. to cease all efforts to produce oil or gas from a well by plugging it in accordance with Government regulations.

Pa
per annum.

Packer
Usually rubber seals provided with the drill stem testing tool to shut off the weight of the drilling mud.

Palaeogene
The name given to the Palaeocene to Oligocene periods of the Tertiary when grouped together.

Paleoslope
The inclination of a surface of sedimentary deposition as existing in some period of geological history.

Paleozoic
A geological era comprising the Cambrian, Ordovician, Silurian, Devonian, Carboniferous and Permian periods, corresponding to approximately 225-270 million years ago.

Paralic
Pertaining to near marine shoreline, such as in lagoons, shallow bays and beaches.

Pay zone
The stratum of rock in which oil and/or gas is found.

PEL
Petroleum Exploration Licence.

Permeability
A measure of the capacity of rock or stratum to allow water or other fluids such as oil to pass through it.

Permian
A geological period corresponding to approximately 225-280 million years ago.

Petroleum System
A petroleum system is defined as the association of a source rock in communication with a reservoir rock that is in a sealed trap at the time of expulsion of oil or gas from a maturing source rock

Petrophysical Analysis
This is the analysis of petrophysical information including electric logs and core data.

PEP
Petroleum Exploration Permit

Pipeline
A pipe through which oil, its products, or gas is pumped between two points, either offshore or onshore.

Plate
A segment of the earth's crust; crustal plates can be broadly subdivided into those of continental and of oceanic affinities.

Play
A petroleum play is a prospective hydrocarbon area whch can be tested by the drilling of a well

Play fairway
A play fairway is an area in which all of the elements of a petroleum system are present and which contains one or more prospects

Porosity
The ratio of the pore space in a rock to its total volume, generally expressed as a percentage.

Producing Horizon
Rock from which oil or gas is produced.

Progradation
The seaward advance of the accumulation of sediments due to depositional processes.

Prospect
An anomaly or feature sufficiently defined to warrant the drilling of a well without further investigation.

Quotation
Means listed for quotation on ASX.

Recoverable Reserves
The volume of the hydrocarbons existing within a trap that may be produced (recovered) by economically and technically viable methods.

Recovery factor
The ratio of recoverable oil and/or gas reserves to the estimated oil and/or gas in place in the reservoir.

Reserves
Generally these are estimated volumes of crude oil, condensate, natural gas liquids, and associated substances anticipated to be recoverable from known accumulations from a given date forward, under existing economic conditions, by established operating practices, and under current government regulations. Reserves estimates are based on interpretations of geologic and/or engineering data available at the time of the estimate. See also Developed Reserves, Possible Reserves, probable Reserves and Proved Reserves.

Reservoir
Permeable and porous rocks (usually sandstones, limestone or dolomites) capable of containing significant quantities of hydrocarbons.

Revenue
The gross income from the sale of products produced.

Reverse Fault
A fault along which the hanging wall has been raised in relation to the footwall.

Rift
A sedimentary depression or valley formed by tensional faulting and commonly associated with continental break-up.

Risk
An expression of uncertainly (high risk) or certainty (no risk) relating to the presence of principal geological factors controlling oil accumulations.

Rollover
A term relating to the observation that a geological marker exhibits a convex shape (anticlinal shape) along a traverse, usually a seismic line. That is, the geological marker is observed to rise along a traverse to a peak before dropping away again. A rollover may indicate the presence of a structural closure, or trap, which is favourable to hydrocarbon accumulations.

Rotary Table Elevation (RTE)
An elevation datum from which the depth of a well is conventionally measured; specifically the height of the drilling rig floor above mean sea level.

RT
means real terms.

Sandstone
A type of rock composed primarily of quartz grains.

Seal
Impermeable rock sequence or geological boundary which prevents the lateral or vertical migration of hydrocarbons.

Section
A section in this prospectus.

Sediment
Solid material settled from suspension and transported by a liquid.

Sedimentary
Applies to rocks or depositional processes whereby material derived from pre-existing rock is deposited.

Seismic
A method of geophysical prospecting involving the generation of sound waves at the surface and recording the reflected or refracted waves from the subsurface to determine the geometry and depth of subsurface rock units.

Shale
A laminated sediment in which the constituent particles are predominantly of the clay grade.

Show (of oil or gas)
The detectable presence of hydrocarbons observed during the drilling of a well; generally further work is required to determine if a show is indicative of a commercial accumulation.

Siltstone
Rock intermediate in texture and grain size between sand and shale.

Small field
Up to 5 million barrels of recoverable oil.

Solvent
A dissolving medium.

Source Rock
A rock containing sufficient organic matter to be capable of generating oil and/or gas under pre-requisite conditions of temperature, pressure and time.

Spill-point
The deepest structural level that hydrocarbons can fill an accumulation before spilling out and being lost to that trap.

Spudded/Spudding In
The commencement of drilling operations.

Sq km
Square kilometre, equal to 247.1 acres.

Stock Tank barrel
A barrel of oil measured at a standard temperature of 60 degrees Fahrenheit and a standard pressure of 14.7 pounds per square inch absolute.

Stratigraphic
Pertaining to the study of the subdivision, composition, age and correlation of sedimentary rocks.

Stratigraphic Section
The subdivision of a sedimentary rock profile by composition and age of rock types.

Stratigraphy
The study of stratified rocks, especially their age, correlation and character.

Structural Trap/High
A trap formed as a result of folding, faulting or a combination of both.

Strike
The course or bearing of an inclined bed or structure on a level surface

Structure
Deformed sedimentary rocks, where the resultant bed configuration is such as to form a potential trap for migrating hydrocarbons.

Syncline
A fold of rock strata which forms a dip or bowl ie concave upwards.

TCF
Trillion cubic feet.

Tectonic
Pertaining to structural movements of the earth's crust.

Tertiary age
The era of geological time which began roughly 60 million years ago and ended roughly one million years ago; it is in lower Tertiary formations that many oil fields have been found throughout the world.

Thrust Faults
A crustal fracture characterised by a low angle of inclination which results in the emplacement of older strata above younger strata. Thin-skinned thrusting is a style of thrust faulting in which basement rocks are not involved in the faulting.

Tight Zones
Impervious or impermeable layers within rock strata.

TOC (Total Organic Carbon)
A measure of the relative organic richness of a source rock.

Trap
A body of reservoir rock, vertically or laterally sealed, the attitude of which allows it to retain the hydrocarbons that have migrated into it.

Transgressive
Applies to sediments deposited during a relative rise of sea level (see Eustatic, Regressive).

Trend
A strike direction of a geological feature.

Trough
An elongated, wide depression, a syncline.

Turbidite
Sediments deposited in deep water by the process of gravity sliding off of the continental shelf.

TWT
Two way time (seismic measurement).

TWT
Two way time - the time taken for a seismic wave to reach a reflecting horizon and then be received by a detector at surface.

Unconformity
A tectonic feature in which strata are eroded and subsequently overlaid with younger strata (sometimes angularly), which are said to lie UNCONFORMABLY on the older strata; the actual boundary between the two sets of strata.

Units of Measurement
km
kilometres m
metre

Unrisked
No risk factor has been applied to probable reserves.

Updip
At a structurally higher elevation within dipping strata.

Uplift
Elevation of any extensive part of the earth's surface relative to some other part.

Volcanogenic sediments
Clastic sediments containing large proportions of variable size rock fragments derived from volcanic sources.

Well bore
The hole in the rock made by the drill bit.

Well-log
There are a variety of types of well-logs. Well-logs enable a description of rock properties to be obtained by lowering various instruments down a drilled well.

Well Ties.
A procedure by which stratigraphic information from a well is correlated ("tied") to seismic reflection events derived from a seismic line passing through the well location.

Zone
A rock formation lying in a belt between adjacent beds. A hydrocarbon producing zone is known as a pay zone.

$
Currency of Australia (unless otherwise indicated).

/d
per day

2D
Two dimensional

3D
Three dimensional