EMPIRE OIL & GAS NL

A B N 5 5 0 6 3 6 1 3 7 3 0

S U I T E S 7 A N D 8

1 5 4 H A M P D E N R O A D

N E D L A N D S 6 0 0 9 W E S T E R N A U S T R A L I A

T E L E P H O N E + 6 1 8 6 3 8 9 2 6 8 7

F A C S I M I L E + 6 1 8 9 3 8 6 6 8 1 2

E M A I L i n f o @ e m p i r e o i l . c o m . a u

W E B w w w . e m p i r e o i l . c o m . a u

12 April 2012

The Manager The Australian Securities Exchange The Company Announcements Office Level 4/20 Bridge Street SYDNEY NSW 2000

Dear Sir RE: PRESENTATION ON EMPIRE OIL & GAS N.L. PERTH BASIN AND THE RED GULLY GAS AND

CONDENSATE PLANT DEVELOPMENT

Please find an updated presentation on Empire Oil & Gas N.L. and its Perth Basin Projects in Western Australia. Yours faithfully

JL CRAIG MARSHALL Managing Director EMPIRE OIL & GAS NL

Competent Person’s Statement Information in this ASX Release relates to exploration results that are based on information compiled by Mr JL Craig Marshall who is a full time employee of Empire Oil & Gas NL. JL Craig Marshall is a Fellow of the Australian Institute of Mining and Metallurgy and is a Certified Practicing Geologist BSc (Hons), F.Aus.IMM, CPGEO, and has more than 30 years experience relevant to oil and gas exploration and production.

It is not th e number of hours in th e working day th at’ s important it’s th e

work that gets achiev ed in those hours th at concerns Anderson Lee.

Overtim e is not encouraged – excepts on those rar e occasions wh en it is

absolutely nec essary. Anderson Lee prefe rs em ployee s to work ef ficiently in

the seven and a half hours

availabl e ea ch day.

Ander son Lee strives to create a productive and

positive wo rking environme nt. The company has a ‘give -and-tak e’ at titud e

when it come s to it’s

employees . It rewa rds har d wo rk by offering

employee s incentiv es like, flex ible work hours and time in leu . Time in leu

enables emp loye es who have wo rked with diligenc e and effi ciently to tak e

time off during quieter time s or en joy a l ong week end or extended holiday.

For

per

sona

l use

onl

y

E M P I R EO I L & G A S N L

A B N 5 5 0 6 3 6 1 3 7 3 0

For

per

sona

l use

onl

y

Disclaimer and Competent Person’s statement

Disc la imer

This presentation has been prepared by Empire Oil and Gas NL [EGO]

for general information purposes only. The presentation is not and should

not be considered as an offer or invitation to subscribe for or purchase

any securities in EGO, or as an inducement to make an offer or invitation

with respect to those securities. No agreement to subscribe for securities

in EGO will be entered into on the basis of this presentation. This

presentation may contain certain forward-looking statements which have

not been based solely on historical facts but rather on EGO’s current

expectations about future events and a number of assumptions which are

subject to significant uncertainties and contingencies, many of which are

outside the control of EGO and its Directors, Officers and Advisers. Due

care and attention has been taken in the preparation of this presentation.

However, the information contained in this presentation [other than as

specifically stated] has not been independently verified for EGO or its

Directors and Officers, nor has it been audited. Accordingly, the Company

does not warrant or represent that the information contained in this

presentation is accurate or complete. To the fullest extent permitted by

law, no liability, however arising, will be accepted by EGO or its Directors,

Officers or Advisers, for the fairness, accuracy or completeness of the

information contained in the presentation.

Competent Person’s Statement

Information in this report that relates to exploration results based on

information compiled by Mr JL Craig Marshall who is a full time employee

of Empire Oil and Gas NL. JL Craig Marshall is a Fellow of the Australian

Institute of Mining and Metallurgy and is a Certified Practising Geologist

BSc [Hons], F.Aus.IMM, CPGEO, and has more than 30 years experience

relevant to oil and gas exploration and production. Information in this

presentation has been disclosed to the ASX pursuant to the ASX

Listing Rules.

EMPIRE OIL & GAS NL

Corporate

M a n ag e M e n t

JL Craig Marshall BSc [Hons], F.Aus.IMM, CPGEO

Managing Director

Dr Bevan Warris BSc [Hons] PhD, AAPG, Certified Petroleum Geologist 4723

Executive Director

Jeff McDonald BSc Eng, Petroleum Geologist

Director

neil Joyce BBus, FCS Non Executive Director

Kim Hogg BCom Company Secretary

eQ U I t I eSGINGIN WEST AND RED GULLY GAS FIELD DISCOVERIES EP 389 PERTH BASIN

Permit Interest

Empire [Operator] 68.75%

ERM Gas Pty Ltd 21.25%

Wharf Resources Plc 10.00%

Market Details

Ordinary Shares 4,745,658,296

Market Capitalisation @ 2.0c = $95 million

@ 2.8c = $130 million [26 August 2011]

Funds $8 million

Debt Nil

Forward Gas Supply Agreement will provide funds for the Red Gully Gas

and Condensate Plant in EP 389

aSX Code EGO

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

04 August

04 September

04 October

04 Novem

ber

04 Decem

ber

04 January

04 February

04 March

0.005

0.010

0.015

0.020

0.025

0.030

0.035

0.040

0.045

0.050

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

04 January

04 February

04 March

04 April

04 May

04 June

04 July

2011 2012

empire oil and gas nL Market Capitalisation and Share Price 04 January - 04 March 2012

Market Capita l isat ion

Share Pr ice

Ma

rket C

ap

italisatio

n in

Millio

ns

EMPIRE OIL & GAS NL

target:

I n C r e a S e M a r K e t C a P I ta L I S at I o n I n 2012-2013 to $200 M I L L I o n +

Current:

Market Capital isat ion is a$95 Mil l ion [March 2012][a$130 Mil l ion 26 August 2011]

How:

• Drill additional reserves in the Gingin area to have recoverable

reserves of up to 100 BCF and associated condensate.

• Drill further wells in the North Perth Basin.

Target Market Capita l isat ion

Sha

re P

rice in

Do

llars

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

KEY INFORMATION

LOCATION OFPETROLEUM PERMITS

W E S T E R N

A U S T R A L I A

PERTH

C A N N I N GB A S I N

E S P E R A N C E

G E R A L D T O N

C A R N A R V O N

E X M O U T H

C A R N A R V O NB A S I N

P E R T HB A S I N

AA R V O N

L08 7

L08 6

ROUGH RANGEOil field

barrow island

EP 444

EP 325

EP 359 (parts 2 & 3)

EP 433

EP 435 and L 16

EP 466

EP 434

Ep 412

EP 389

EP 440

EP 437

EP 426

EP 368

EP 432

EP 454

EP 430

EP 439ep 461

ep 434, EP 435, ep 359ep 325, EP 433, ep 444,ep 412 & EP 466

ep 426, ep 437, ep 368,EP 430, EP 454, ep 432,ep 389, ep 440, L08 6,L08 7, ep 416

ep 460

EP 416

onshore Carnarvon Basin

onshore Perth Basin

For

per

sona

l use

onl

y

CARNARVON

I N D I A N

O C E A N

L A K E

M A C L E O D

BARROW ISLAND

EXMOUTH

E X M O U T H

G U L F

LEATHERBACK

PYRENEES

ENFIELD

BLENCATHRA

COROWA

CREST

COWLE

SALADIN

GRIFF INCHINOOK/SCINDIAN

RAMILLIES

TURBRIDGI

MACEDON

LAVERDA

VINCENT

CARRETTA

OUTTRIM

RIVOLI

R O L L E R

S K A T E

B A R R O W S U B - B A S I N

planned drilling prospects

prospect estimated potential recoverable reserves

Ep 359 Drill a 2500 metre well within paterson 5 million barrels of oil

trough to evaluate shale oil/gas potential

of the middle jurassic aged dingo claystone.

There is also a traditional oil play of the

cretaceous birdrong and or wogatti

sandstones as a ‘pinch out’ on the eastern

f lank of the Cape Range anticline.

drill bee-eate r-1

Ep 435 Option to drill shale gas well 5 million barrels of oil

with option to drill rainbow-1

UPON bee-eater DISCOVERY AND RECOMMENCE

ROUGH RANGE 1B OIL PRODUCTION

Ep 412 drill sandalwood-1 2 - 5 million barrels of oil

Ep 444 drill two wells

topaz south-1 5 million barrels of oil

amethyst-1 17 million barrels of oil

opal 12 million barrels of oil

ep 466 drill mardie oil field 1 - 5 million barrels of oil

a shallow and horizontal well to enhance

oil recovery

EP 325 rivoli gas field development subject of a gas field development with the

drill big horn oil prospect department of defence

new prospect permian oil play

ep 434

EP 359(2)

EP 444

EP 325EP 325

EP 433

EP 466

ep 435 and L 16

ep 412

ep 439

ep 460

ep 461

ep 359(3)

saNdalwood-1

rouGh range oil field

DRILL rainbow-1

drill paterson trough shale gas well

to 2500 metres. Option to drill

additional well

Drill bee-eater-1

drill topaz south-1

Feasibility study for a rivoli gas

field development with

department of defence

New prospect

drill big Horn-1

shallow horizontal well mardie oil field

pindan

drill amethyst-1

or opal-1

wogatti oil &

shale gas prospect

Drill up to a further 5 wells in 2012-2013

EMPIRE OIL & GAS NL

Carnarvon Basin

13 Petroleum

Exploration Permits

1 Production Licence

onshore Carnarvon Basin

For

per

sona

l use

onl

y

WOODADA

GERALDTON

KWINANA

BUSSELTON

P E R T H

B A S I N

MT HORNER

DONGARA

BEHARRASPRINGS

DA

RL

IN

GF

AU

LT

DA

ND

AR

RA

GA

NT

RO

UG

H

J INGEMIA

UR

EL

LA

FA

UL

T

DONGARA

PERTH

5

0m

HOVEA

CL IFF HEAD

WALYERING

BUNBURY

KWINANA

PERTHPERTH

BEHARRA SPRINGS NORTH

WARRO

NORTH ERREGULLA 1

MORIARY 1

EP 432 north

drill Black arrow-1

EP 432 south

mullering cataby oil prospects

3d seismic completed

drill Woolka-1

or cooljarloo

EMPIRE OIL & GAS NL EP 426

ep 440

EP 454

Garibaldi prospect

recorded 2D seismic

drill Charger-1 and garibaldi-1

EP 430

lau ner prospect

record 2D seismic

drill launer-1

Drilled Gingin West-1/Red Gully-1

gas and condensate discoveries

development of Red Gull Gas and Condensate Plant

record wannamal 80 km2 3D seismic as heliseis

record 3d seismic over yeal oil prospect, eclipse, eclipse west

drill wannamal and DEEP

drill gingin-4 and DEEP

drill gingin-5 as gingin down thrown

plan to drill gingin brook-1

plan to drill eclipse-1, eclipse west-1, yeal-1

wellesley gas prospect

2d seismic completed

Drill Wellesley-1

EP 416

leschenault prospect

2d seismic

Drill one well

L08-7

grant process

L08-6

grant process

EP 368

100 km2 North erregulla 3d seismic

drill North erregulla-2

Gas and condensate plant

drill 1 well

discovery

seismic survey

prospect

EP 437

drill wye/wye knot or

other oil prospect

North Erregulla Prospect

Origin Energy Farmin 3D Seismic

EP 389

Red Gully Gas Development

onshore perth basin

onshore Perth Basin

11 PetroleumExploration Permits

EP 368 / 462North Erregulla Prospect

Origin Energy Farmin3D Seismic

eP 432Drill Black arrow-1

eP 389red gully gasDevelopment

For

per

sona

l use

onl

y

E M P I R E O I L & G A S N LA B N 5 5 0 6 3 6 1 3 7 3 0

gIngIn WeSt-1 anD reD gULLY-1gaS anD ConDenSate DISCoVerIeS

Onshore Perth Bas in, Western Austra l ia

Red Gul ly-1 FARO 12 MMCFGD and 832 BCPDMarch 2011

• Gas Sales Agreement with Alcoa

• Condensate Sales to BP Kwinana

• New 3D Seismic

• Product ion 2012

• Dri l l for addit ional reserves

• Wannamal and Wannamal Deep

• Dri l l G ingin-4 and 5 wel ls

• 3D seismic

• Dr i l l G ingin Brook, Ec l ipse Deepening

and Yeal

• Dr i l l ing in other Perth Bas in Permits

For

per

sona

l use

onl

y

red gully-1 Development

• Forward Gas Supply and Additional Gas Supply Agreement, entered

with Alcoa of Australia Limited 25 October 2011;

• Forward Gas Sales Contract of $25 million will fund the Red Gully Gas

and Condensate Plant;

• Red Gully-1 Gas and Condensate Plant designed by Momentum

Engineering - a Western Australian Firm;

• Production profiles for gas production rates to maximise gas and

condensate recoveries are complete;

• All long lead time items for construction are on order;

• gas production in 2012 is planned with Condensate sales to

BP refinery, Kwinana, Western australia;

• Natural gas pipeline access 2500 metres from the Red Gully Gas and

Condensate Plant;

• The Dampier to Bunbury Pipeline access agreement for 20 years

entered into 3rd January 2012.

Red Gul ly Gas and Condensate P lant Development Export to DBNGP Pipel ine

red gully gas and Condensate Plant

Additional recoverable gas prospects to be drilled where new gas and condensatediscoveries will be processed and transported through the Red Gully Plant. These are:

EMPIRE OIL & GAS NL

- Gingin-4 well 50 BCF and 2.5 MMBC and Gingin-2 Deep 32 BCF and 1.6 MMBC beingin total 82 BCF and 4.1 MMBC [at 50 BC per 1 MMCFG].

- Gingin-5 [Gingin-3 side track] 37 BCF and 1.8 MMBC [at 50 BC per 1 MMCFG].- The Gingin Gas Field area may require an additional well [Gingin-6] and the 3D

seismic may delineate additional tilted fault block structures in the lowerCattamarra for additional gas reserves.

• Wannamal and Wannamal Deep located adjacent to Gingin West-1 is mature fordrilling and is defined by 3D Seismic. Potential recoverable reserves are:Wannamal and Wannamal Deep 66 BCF and 2.3 MMBC. To be further defined byWannamal Heliseis 3D.

• Gingin Gas Field is the subject of additional 3D seismic to provide:

• By deepening Gingin West-1 to the Bootine Deep Tilted Fault Block there ispotential recoverable oil reserves of 3 MMBO. This would increase the potentialrecoverable condensate and oil reserves to 11.1 million barrels. It is more likelyto be 20 BCF of recoverable gas.

• Future potential recoverable gas to be processed through red gully gas Plant:

- Wannamal and Deep, gingin-4 and Deep, gingin-5 [gingin-3 sidetrack] and the Bootine Deep is 205 BCF and 9.2 MMBC.

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Location of

red gully

gas and

Condensate

Plant with

surveyed

heights

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Location of

Production

Wells and

red gully

gas and

Condensate

Plant

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Red Gul ly Gas and

Condensate P lant

DevelopmentFor

per

sona

l use

onl

y

gingin West-1

• Vertical Well 3870 m TDAssay of both gas and condensate confirmed as sweet and meets the criteria for pipeline entry and refining at BP Kwinana.

• Contracted modern, computer driven 5,000 m Weatherford Rig 826.• Drilled straight and in gauge well to 1,500 m.• Ran intermediate electric wireline logs. Cemented 9 ⁵⁄�” casing. • Drilled to 3,870 m straight and in gauge wellbore.• Mudlogged gas shows and live oil shows over 3 separate intervals

while drilling.• Ran comprehensive electric wireline logs demonstrating 3 separate

gross hydrocarbon bearing intervals.• Ran 7” production casing to surface and cemented.• Rig released 25 December 2009.• Conducted Production Test July 2010. No depletion. Condensate yields

are rich at 50 barrels of condensate for every 1 million feet of gas.

red gully-1 January 2011

• Red Gully-1 Directional Well from the Gingin West-1 drill pad.• Weatherford Rig 826 contracted to drill 4,000 m well [3937 m TD].• Reservoir objectives Cattamarra Coaly Unit, B and D Sands. • Announced 13 February 2011, D Sand Max Gross Pay 18 metres. B Sand

Max Gross Pay 56 metres. Recoverable Gas estimated between 20-30 BCF. Completed Production Test D Sand March 2011, FARO 12 MMCFGD and 832 BCPD.

• Very rich in condensate: 70-80 barrels of condensate per 1 million feet of gas.• Ran dual completion for D and B reservoir sands. [Test Coaly Unit at a later date]• Potential Recoverable Gas for both Gingin West-1 Block B and Red Gully-1

Block A is 30 BCF gas and associated condensate.• Assay of gas and condensate is sweet.• Gas and Condensate Production Facility being designed by Momentum Engineering. • Access to the DBNGP by a 2.5 km pipeline is settled. BP Kwinana Refinery to take

the condensate.• Gingin West-1 and Red Gully-1 are Empire’s third and fourth deep well in the

permit, resulting in two discoveries. Perseverance proves successful.

Drilling Red Gully-1,

preparing to run 7”

production casing

February 2011

For

per

sona

l use

onl

y

gingin West-1

C o M P L e t e D D I S C o V e r Y W e L L

• Cattamarra D Sand tested.

• The Top D Sand interval 3,571.5 - 3,586.8 m [15.3 m] perforated with

through tubing - perforating guns, on electric wireline. [Discovery FARO

7.66 MMCFGD 301 BCPD].

• Gingin West-1 will be deepened to the Bootine Deep [Tilted Fault Block] to

access potential additional 20 BCF and 1 MMBC.

• Strong gas shows in the Coaly Unit of the Cattamarra Coal Measures over

the Interval 3,287.5 - 3,375 m [87.5 m] are interpreted to be gas bearing and

are to be tested upon depletion of the Top D Sand reservoir and the Bootine

Deep in the future.

EMPIRE OIL & GAS NL

10,000 ps i wel lhead, Xmas Tree and Hal l iburton pump unit .

t e S t I n g

• Release Rig 826 off location.

• Slickline operations and crane with lubricator.

• Halliburton pump unit.

• Test under balanced with diesel cushion.

• 10,000 psi wellhead and Xmas Tree.

• Perforate discovery interval with electric wireline.

• Farley Riggs test package of choke manifold and gas/condensate

separator, flowed at a stabilised rate of 7.5 MMCFgD/375 BCPD.

Perforating Gingin West-1 with new electric logging company, Crocker Trucker Energy Services Pty Ltd,

with wireline through tubing guns.

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

red gully-1

C o M P L e t e D D I S C o V e r Y W e L L

• 3 Hydrocarbon intervals. The D, B and Coaly Unity of the Cattamarra

Formation;

• A dual completion was run in the well for the D and B sands;

• Perforated D Sand with tubing conveyed perforating guns and flowed on

production test at a stabilised rate of 12 million cubic feet of gas per day

[12 MMCFGD] and 832 barrels of condensate per day [832 BCPD];

• A Completion was also run to perforate the B Sand with through tubing

perforation guns at a later date;

• Pay: D Sand 18 metres

• B Sand 56 metres. The B sand is full to its spill point;

• Recoverable gas and condensate estimated 20 to 33 BCF and

1.6 to 2.65 MMBC.

• The Cattamarra Coaly Unit Gas Sands will be tested at a later date.

• This Unit and the C Shale are Gas Objectives within EP 389 Permit.

t e S t I n g

• Released Rig 826 off location after the dual completion was run with

tubing conveyed perforating guns.

• Slickline operating and crane and lubricator.

• Test underbalanced with diesel cushion.

• 10,000psi wellhead and Xmas Tree.

• Perforated D sand with tubing conveyed perforating guns.

• Flow rate: 12 MMCFGD and 832 barrels of condensate per day.

Red Gully-1 Lubricator on crane ready to perforate with tubing conveyed perforating guns. Rig 826 laid

down in the background.

Red Gul ly-1 S l ick l ine operat ions on the Red Gul ly-1 wel l with a 10,000 PSI wel lhead and Xmas

Tree. Prepar ing to perforate the D sand. There are two complet ions run in the D and B sands of

the Cattamarra Coal Measures.

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Perforating Gingin West-1 with new electric logging company, Crocker Trucker Energy Services Pty Ltd,

with wireline through tubing guns.

Dr i l l ing Engineer Hugh Edwards

and Craig Marshal l with Red Gul ly

condensate samples.

Note the c lear condensate which is h igh

in gasol ine and kerosene fract ions.

Three Test Tanks were quickly filled on

Production Test with very high condensate levels

of 70 to 80 barrels of condensate per 1 million

cubic feet of gas. Stabilised flow rate of

12MMCFGD and 832 BCPD.

The Condensate will be sold to the BP Oil Refinery

under a Crude Oil Sales Agreement.

Condensate attracts a premium price

to crude oil.

Gingin West-1 Gas and Condensate

Discovery FARO of 7 .5 MMCFGD and

approximately 375 BCPD. Product ion

Test , 13 Ju ly 2010, F lare l ine frozen

white due to gas expansion and cool ing

whi le f lar ing

Red Gul ly-1 FARO 12MMCFGD

and 832 BCFD on Product ion Test ,

13-17 March 2011

red gully-1

For

per

sona

l use

onl

y

6550000mN

6548000mN

6546000mN

38

60

00

mE

38

80

00

mE

39

00

00

mE

0

Scale 1:25,000

400m

EMPIRE OIL & GAS NL

Red Gul ly-1 Discovery Wel l

Product ion Test March 2011, through gas separator at 12 mi l l ion cubic feet of gas per day and

832 barrels of condensate

gingin West-1 and red gully-1

P I P e L I n e I n F r a S t r U C t U r e

• 2500 metres adjacent to two natural gas pipelines. Entry into DBNGP settled for20 years, 3rd January 2012.

• Production testing supplied comprehensive assays confirmed natural gas entry into either Pipeline and the condensate is suitable for refining at BP Kwinana. Crude oil sales, including Red Gully condensate, being settled with BP.

• Sell condensate to BP Kwinana 150 kms by road tankers.• Empire has a Forward Gas Sales Agreement for $25 million and a Gas Supply

Agreement with Alcoa of Australia Limited settled on the 25th October 2011.• Access to the land to be settled by mutual agreement or by the Magistrate’s Court

on May 31/June 1, 2012.• There is market demand for both domestic gas and gas for power generation.

The market is seeking a diversity of gas supply from NW Shelf gas.• Gas pricing in Western Australia is very robust.• Commissioning planned November/December 2012.

Compressor Stat ion 5

Dongara to P in jarra P ipel ine [Parmel ia]

T ie in Dampier to Bunbury P ipel ine [DBNGP] 2.5 km

Gingin West-1Red Gul ly-1

gingin West-1

t e S t I S a D I S C o V e r Y W e L L

• Perforated 1254 hours, 12 April with wireline through tubing 3,572 - 3,575 m.

• Gross Interval 3,571.5 - 3,586.8 m [15.3 m].• Underbalanced with diesel cushion.• Gas to surface 1915 hours, 12 April 2010.• 13 April 2010 FARO 7.66 MMCFGD and 301 BCPD

³⁸⁄��” choke [Condensate equates to 40 barrels per 1 MMCFG].• Shut in after flowing 15½ hours. Instant build up at wellhead of 3,423 psi

at 0600 hours, 14 April 2010.• Production test 12 - 16 July 2010 flowed at a stabilised rate of

7.5 MMCFGD and 375 BCPD.

red gully-1

• A similar Underbalanced Test Programme to Gingin West-1 was conducted for the Red Gully-1 discovery well.

• Demonstrated instant build upon production test.

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Production and Drilling Programmes

In i t ia l Test of Red Gul ly-1. The Gingin West-1 Discovery wel l i s to the r ight of the p icture fenced off.

History

D I S C o V e r I e S

g I n g I n g a S F I e L D a r e a

• Gingin-1, [WAPET] 1964 - flowed 5 MMCFGD.

Cumulative production 1.72 BCF.

• Gingin-2 [WAPET] 1965 - tested at rate 3.9 MMCFGD.

• Bootine-1 [MESA] 1981 - tested 2.25 MMCFGD.

• Gingin West-1 [Empire] 2010, FARO 7.5 MMCFGD, 375 BCPD

• Red Gully-1 [Empire] 2011, FARO 12 MMCFGD, 832 BCPD

t H e e M P I r e g I n g I n - B U L L S B r o o K t r e n D

• 60 km Trend defined by Empire’s existing recording of 444 kms

3D seismic and all the 333 kms of reprocessed seismic.

• Potential unrisked reserves 1238 BCF [1.2 TCF] and

48.5 Million barrels oil.

• New 3D seismic is the pre-requisite for drilling success.

P I P e L I n e a n D o t H e r I n F r a S t r U C t U r e

• 2 Pipelines - located 2.5 kms from Gingin West.

• 2 Highways - Brand Highway and Great Northern Highway.

• Access roads - all bitumen or quality graded gravel roads.

• Production into DBNGP for forward sales gas and additional gas sales settled with Alcoa of Australia on 25 October 2011. Condensate to BP Kwinana Refinery to include both Red Gully, Gingin West condensate and future discovered condensate.

• Construction of the Gas Plant, flowlines and condensate tanks are funded by a Forward Gas Sales Agreement of up to $25 million. Plant design by Momentum Engineering.

• Gingin West-1 Block B and Red Gully-1 Block A have recoverable gas estimated at 30BCF with associated condensate.

• Applied for Pipeline License on 19 October 2011.• applied for Production License for 21 years over the location on 20 October 2011.• Drill Wannamal and Wannamal Deep already defined by 3D Seismic.• Record 3D seismic to define well locations and closures. Additional potential gas

and condensate for the Wannamal and the Gingin Gas Field structures totals185 BCF and 8.2 MMBC to be processed through the Red Gully Gas Plant.

• Other structures located along the Gingin to Bullsbrook 60 km Trend, include the Gingin Brook, Eclipse, Eclipse West and Yeal prospects.

• The Gingin Gas Field Area and the Gingin Brook Anticlinal Structure are both favoured for further 3D Seismic.

• 3D seismic will also define: the deeper Fault Block Structure Gingin-2 Deep, to be drilled as Gingin-4 and Gingin-4 Deep.

• Gingin-5 may be drilled as a side-track from the Gingin-3, a suspended well drilled by Empire in 1998, or a new vertical well.

• Drill Gingin Brook-1 well on confirmed 3D Anticlinal Closure.• Gingin Brook Anticlinal Structure has the potential for up to 100 BCF of recoverable gas in

the D Sand. The larger Gingin Brook fault dependent structure is a much larger play.

For

per

sona

l use

onl

y

the Seismic Method

The Seismic Method inputs sound waves or vibrations, deep into the

earth where they reflect back to the surface from various rock layers [Figure 1] to

be digitally recorded. The recorded information is analysed and manipulated to

produce a picture - known as a seismic section, a cross-section of the earth’s

subsurface - that is used to identify zones of likely oil or gas deposits. An example

of a seismic section can be seen in Figure 2. This cross-section was taken across

the Gingin West structure in EP-389 where the successful Gingin West-1 well was

drilled, and is approximately 125 kms north of Perth.

recording truck

shale seal

overlying formations

EMPIRE OIL & GAS NL

Recording Gingin West 3D seismic in EP 389 Perth Bas in

37

Soundwave recording during a Seismic Survey

predetermined seismic line

vibroseis trucks

geophone cables

potential oil and gas

The process of recording seismic to map the subsurface in search oftrapped accumulations of oil and gas

reservoir of porous sandstone

S NBlock B

D Sand

Gingin West-1

Discovery Wel l

figure 2

figure 1

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

6550000mN

6548000mN

6546000mN

38

60

00

mE

38

80

00

mE

39

00

00

mE

0

Scale 1:25,000

400m

gingin West-1 and red gully-1 gas/Condensate Discoveries

How it was achieved

2 D S e I S M I C

• Recorded 444 kms of Modern 160 fold 2D Vibroseis seismic

over EP 389.

• Reprocessed 333 kms of existing seismic.

• Delineated Gingin West Prospect and the 60 km Gingin

to Bullsbrook Trend of prospects and leads.

Recording 2D seismic over Gingin West-1 with buggy Vibroseis .

3 D S e I S M I C

• Recorded detailed 45 km2 3D seismic over Gingin West Prospects.

• Mapped Gingin West 3D seismic and 2D seismic to provide:

- Gingin West Block B [4 way dip anticline] discovery Gingin West-1 well.

- Gingin West Block A [fault dependent anticline] drilled

2011 as Red Gully-1.

Recording 3D seismic over Gingin West structure.

Gas and Condensate

Discover ies

80 kms to Perth

150 kms to BP Oi l Ref inery

2.8 kms to both Gas P ipel ines

Gingin West-1Red Gul ly-1

3D seismic over

Gingin West and Red Gul ly

Discover ies

Seismic Source L ineSeismic Source L ine on Ex ist ing TrackSeismic Receiver L ine [To be rol led]Seismic Receiver L ine [Hand Carry]Seismic Receiver L ine [No Clear ing or brush cutt ing]Seismic Receiver L ine on Ex ist ing Track

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Planned

85 km 2 Hel ise is

3D Seismic Gr idFor

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Proposed WannamalHeliseis Programme, eP 389

Heliportable Seismic exploration

• Minimal equipment footprint

• No motor vehicle wheel tracks

• Minimal environmental impact and

rehabilitation

• Fast and efficient airborne transport

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Dri l l ing equipment transported by road

to a centra l staging base

The Hel iBel lyHook is used to l i f t up

to 2.7 tonne loads

Drilling equipment and water lifted into

location. One helicopter leap frogs drills

in a continuos operation, landing only

for fuel and pilot change

Shothole loader prepares charge and

loads hole. Typica l ly, two or more 0.5 kg

cartr idges screw together, are pr imed

with two electronic detonators and

‘poled’ careful ly to conf irm actual

depth of charge

Heliportable Seismic exploration

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Geophones are connected to

a recording truck

Recording equipment and f ie ld act iv i ty i s

control led from the ‘dog box ’, located

for VHF communicat ions

Several thousand act ive receiver groups

[geophones] are connected to the

recorder.

Heliportable Seismic exploration

Several bags of graded gravel are

poured over the charge to prevent

‘b low-out ’. Detonator wires are

concealed

For

per

sona

l use

onl

y

116°00'E

31°00'S

32°00'S

Lancel in

Perth

Muchea

Kwinana Refinery

EP 389

Two Rocks

Yanchep

GuildertonGingin

Seabird

Bad

amin

na T

errace

Dan

daragan

Tro

ugh

EMPIRE OIL & GAS NL

EP 389

gas and condensate

discover ies , leads,

prospects and

infrastructure

EP 389

Strat igraphy

Gingin Brook

Ecl ipse West

Yeal

Red Gul ly Gas and Condensate d iscovery

Gingin South

Dongara to P in jarra P ipel ine [Parmel ia]

Dampier to Bunbury P ipel ine [DBNGP]

Ecl ipse Deep

Gingin Gas F ie ld

Gingin West Gas d iscovery

Mo gumber Lead

POTENT IAL RECOVERABLE GAS EP 389 PROSPECTS

PROSPECT

Ging in -1 C losure

G ing in -2 Deep

Boo ne Deep

Wannama l

G ing in South

G ing in B rook

Yea l

Ec l ip se

TOTAL

GAS

87 BCF

32 BCF

20 BCF o r

52 BCF

100 BCF

600 BCF

0 BCF100 BCF

1 2 3 8 B C F

OIL + CONDENSATE

4 .3 m i l l i on bb l s

1 .6 m i l l i on bb l s

3 .0 m i l l i on bb l s

1 .6 m i l l i on bb l s

7 .2 m i l l i on bb l s

1 .2 m i l l i on bb l s

25 .0 m i l l i on bb l s

1 .2 m i l l i on bb l s

4 8 . 5 m i l l i o n b b l s

STATUS

Needs 3D Se i smic

Needs 3D Se i smic

Ready to d r i l l

Ready to d r i l lWannama l Deep 14 BCF 0 .7 m i l l i on bb l s Ready to d r i l l

Needs 3D Se i smic

Needs 3D Se i smic

Needs 3D Se i smic

Needs 3D Se i smicEc l ip se West 225 BCF 2 .7 m i l l i on bb l s Needs 3D Se i smic

3200m

3100m

3700m

4000m

4100m

AGE LITHOLOGY FORMATION DEPTHSHOWS

CADDA FORMATION

YARRAGADEE FORMATION

3800m

3900m

3000m

3300m

3400m

3500m

3600m

UPPER

CATTAMARRA

COAL

MEASURES

LOWER

CATTAMARRA

COAL

MEASURES

LC1 SAND

SINEMURIAN

PLEINSBACHIAN

AALENIAN

TOARCIAN

BAJOCIAN

LC2 SAND

LC3 SAND

SAND

MEMBER D

SAND

MEMBER A

SAND

MEMBER B

SHALE

MEMBER C

COALY UNIT

Gingin-1

Boo ne-1Rec 0.5bbl oil

Gingin-23.92 MMcfg/d

4.25 MMcfg/d

Boo ne-12.25 MMcfg/d

Gingin West-17.5 MMcfg/d

375 BC/d

Red Gully-112 MMcfg/d832 BC/d

Red Gully-1Full to Spil l Point

Gingin-13.8 MMcfg/d

SignificantGas shows fromCoals & Sands

L to C4 SAND

JU

RA

SS

IC

Wannamal and Wannamal Deep

Note:

An independent Shale Gas Study of the ‘C ’ shales (approximately

100 m thick) that had shows in Red Gul ly-1 and the th ick 400 m +

sect ion of the lower Cattamarra shales , provide a very large

est imated potent ia l recoverable shale gas .

For

per

sona

l use

onl

y

BLOCK A

BLOCK B

Gingin-2

Gingin-1

Gingin-3

Bootine -1

Gingin West -1

2000 metres

Block

BBlock

A

EMPIRE OIL & GAS NL

gIngIn WeSt-1 gaS DISCoVerY BLoCK B

FLoWeD at a rate oF 7.5 MMCFgD anD 375 BCPD

Gingin-5 deviated wel l

Reserves subject to 2011 dr i l l ing

Gas F ie ld

Prospect

Red Gul ly-1deviated wel l

Gingin West-1 Gas Discovery

Top D Sand Play Gingin West B lock B

Gingin West 3DSeismic Survey

3D Seismic to def ine

Gingin-1 c losure potent ia l87 BCF in D Sand

S N

D Sand Play

Block B

D Sand

Gingin West-1

Discovery Wel l

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

SL

-1000m

-2000m

-3000m

-

1000m

GINGIN WESTBLOCK A Gingin West-1

BLOCK B

COALY UNIT

C SHALE

D SAND

B SAND

CADDA FM

13 3/8" csg

9 5/8" csg

Flowed 7.66 MMcfg/d+ 300 b/d condensate

Flowed 12 MMcfg/d+ 832 b/d condensate

Red Gully-1

Gingin-2

Gingin-1

Gingin-3

Bootine-1Red Gully-1

Gingin West-1

2000 metres

Block

A

reD gULLY-1 BLoCK a DISCoVerY

FLoWeD at StaBILISeD rate 12 MMCFgD anD 832 BCPD

PotentIaL reSerVeS 30 BCF anD aSSoCIateD ConDenSate

UP to 80 BarreLS Per 1 MMCFg

Reservesto be establ ishedby ExtendedProduct ion Test

EP 389

Perth Bas in

Gingin West Prospect

Gingin West-1 and Red Gul ly

Gas/Condensate Discovery

Top D Sand

Gingin West 3DSeismic Survey

Gas F ie ld

Prospect

Gingin West

B lock aGingin West

B lock B

Red Gul ly-1 B lock A

W

D Sand

Red Gul ly-1Gingin West-1

Lower Cattamarra

Boot ine Deep

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Planned drilling Wannamal and Wannamal Deep

• Wannamal-1 is located immediately adjacent to the Gingin

West-1 and Red Gully-1 gas and condensate discoveries.

• Mature for drilling, defined by 3D seismic with same reservoir

objectives as Gingin West-1 and Red Gully-1 discovery wells in

the Upper Cattamarra Coal Measures.

• Wannamal Deep is a tilted fault block at the Lower

Cattamarra

• Lower Cattamarra flowed gas in the Gingin-1

[4.25 MMCFGD] and Gingin-2 [3.92 MMCFGD] and 0.5 barrels

of oil in Bootine-1.

• Potential Recoverable Gas in Wannamal from the Upper

Cattamarra is 52 BCF and associated condensate.

• Potential Recoverable Gas in Wannamal Deep is 14 BCF and

0.7 MMBC.

• Potential Recoverable Gas and Condensate for Wannamal and

Wannamal Deep is 66 BCF and 2.3 MMBC.

• Further gas discoveries can be processed through the Red

Gully Gas and Condensate Plant.

• Drilling planned upon Wannamal 3D Heliseis being recorded.

BLOCK A

BLOCK B

Gingin-2

Gingin-1

Gingin-3

Bootine -1

2000 metres

Gingin Gas Field

Red Gully-1

Gingin West -1

PotentIaL reCoVeraBLe gaS anD ConDenSate

gIngIn WeSt/reD gULLY 30 BCF anD 2 MMBC

gIngIn gaS FIeLD 87 BCF anD 4.3 MMBC

[gIngIn DeeP] 32 BCF anD 1.6 MMBC

WannaMaL ProSPeCt 52 BCF anD 1.6 MMBC

[WannaMaL DeeP] 14 BCF anD 0.7 MMBC

Gingin-5 deviated wel l

Wannamal

Gas F ie ld

Prospect

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Gingin-2

Gingin-1

Gingin-3

Bootine -1

Gingin West -1

2000 metres

neW tILteD FaULt BLoCK PLaYS noW MaPPeD

FroM neW gIngIn WeSt 3D SeISMIC SUrVeY

PotentIaL reCoVeraBLe gaS anD ConDenSate

gIngIn DeeP 32 BCF anD 1.6 MMBC

WannaMaL DeeP 14 BCF anD 0.7 MMBC

BootIne DeeP oIL PLaY 3 MMBo

or 20 BCF gaS/ConDenSate

Gingin Gas Discover ies

Ti l ted Fault B locks

Lower Cattamarra Coal Measures

Wannamal DeepPotent ia l 14 BCF. Needs 3D Seismic

Gingin-2 DeepPotent ia l 32 BCF. Needs 3D Seismic

Gas F ie ld

P rospect

Oi l F ie ld

Lower Cattamarra T i l ted Fault B lock P lay

W

Gingin West 3DSeismic Survey

Boot ine DeepPotent ia l 3 Mi l l ion bbls Oi l . L ike ly to be 20 BCF of gas and associated condensate.

Boot ine

Deep

Wannamal

Deep

Gingin-2

Deep

Wannamal

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Gingin-2

Gingin-1

Gingin-3 Gingin-5

Bootine-1Red Gully-1

2000 metres

Gingin West-1

gIngIn gaS FIeLD area

gIngIn-4 anD DeeP aS gIngIn-2 anD DeeP

gIngIn-5 aS a gIngIn-3 SIDe traCK WeLL

PotentIaL reSerVeS 87 BCF anD

4.3 MILLIon BarreLS oF ConDenSate

totaL PotentIaL gaS In tHe gIngIn area tHat Can

Be treateD at tHe reg gULLY gaS anD ConDenSate

PLant In aDDItIon to gIngIn-1 anD reD gULLY-1 IS

CIrCa 205 BCF anD 9.2 MMBC

D Sand play

Gingin-5 is a s ide track wel l f rom Gingin-3

GINGIN-5 [as Gingin-3 Side Track]

2500m

3000m

3500m

4000m

25°

GIN

GIN

-5

COALY UNIT A

SAND UNIT B

SAND UNIT C

SAND UNIT D

LC1

TOTAL DEPTH4200m

(-4003m SS)

Kick off Point2520m (-2323m SS)

9 5/�8 “ Csg3379m(-3182m SS)

TopCement

Plug3320m

(-3123m SS)

Measured Total Depth4430m

Gingin-1 Gas F ie ldArea.Potent ia l 87 BCFin D Sand

3d Seismicrequired

EP 389 Gingin Gas F ie ld Area

proposed wel l t ra jectory for Gingin-5

as a s ide track wel l f rom Gingin-3, or may be dr i l led as

a new vert ica l wel l

W E

Gingin West 3DSeismic Survey

Gas F ie ld

Prospect

Gingin Gas

Fie ld

Closure

D Sand

Wannamal

For

per

sona

l use

onl

y

31°00'S

32°00'S

Lancel in

Perth

Muchea

Kwinana Refinery

EP 389

Two Rocks

Rockingham

Pinjarra

GuildertonGingin

Seabird

Bad

amin

na T

errace

Dan

daragan

Tro

ugh

EMPIRE OIL & GAS NL

EP 389

Gas and Condensate

Discover ies , Leads,

Prospects and Pipel ine

I nfrastructure to the

Southern Region

Parmel ia Compress ion Stat ion 5

Gingin Brook

YealEc l ipse West

Mogumber Lead

Ecl ipse Deep

Gingin south

Red Gul ly Gas F ie ld

Dongara to P in jarra P ipel ine [Parmel ia]

The DBNGP wi l l t ransport Red

Gul ly/Gingin West natural gas

Dampier to Bunbury P ipel ine [DBNGP]

Gingin Gas F ie ld

Wannamal and Wannamal Deep

Gingin West Gas F ie ld

• Red Gully-1 in Block A is a deviated discovery

well from the same Gingin West-1 wellsite and

substantially increased gas and condensate

reserves. Red Gully-1 and Gingin West-1 have

recoverable gas of 30 BCF and associated

condensate. Gingin West-1 has 50 barrels of

condensate per 1 MMCFG, Red Gully-1 70 - 80

barrels of condensate per 1 MMCFG.

• The Red Gully Gas Plant and pipeline to the

DBNGP is funded by a Forward Sales Contract of

$25 million with Alcoa. There is a separate

additional Gas Supply Agreement with Alcoa.

• Gingin West-1 in Block B FARO 7.5 MMCFGD and

375 BCPD is a significant gas and condensate

discovery. Followed by Red Gully, FARO 12

MMCFGD and 832 BCPD - the largest gas flow in

the Perth Basin from the Jurassic.

• Production into adjacent DBNGP infrastructure

and sell gas to Alcoa in late 2012 and truck

condensate to BP Kwinana.

• Gas Sales Contract settled with Alcoa on 25

October, 2011.

• Wannamal-1 and Deep potential recoverable gas

52 BCF and associated condensate. Wannamal

Deep potential recoverable gas 14 BCF. Total 66

BCF and 2.3 million barrels of condensate.

• Planning Wannamal Heliseis 3D 85 km2 seismic

to further define Wannamal and Wannamal-1

and Deep and drill Gingin Gas Field Wells,

Gingin 4 and Deep and Gingin-5.

Conclusion

For

per

sona

l use

onl

y

EP 389

EP 430

EP 440

EP 432

EP 454Eneabba

Lancelin

Moora

116°00'E115°00'E

Dandaragan 1

Cataby 1

0 25 km

WOODADA

CLIFF HEAD

WALYERING

BEHARRA SPRINGS

WORRO

GINGIN

PERTH

Kwinana

• Potential new discovered gas and condensate

reserves of 205 BCF and 9.2 MMBC will be treated

through the Red Gully Gas and Condensate Plant.

• Plant design can be twinned to increase production

up to 20 MMCFGD.

• Additional 3D seismic for Gingin Brook and also

other well locations for Eclipse, Eclipse West, Yeal

and others along the Gingin to Bullsbrook

60 km Trend.

• Empire’s 2D seismic of 444 kms and the reprocessed

existing 333 km seismic demonstrates further

prospects and leads over this 60 km Trend where

potential unrisked gas reserves are circa 1.2 Trillion

Cubic Feet of Gas and 48 Million barrels of crude oil

and condensate.

• Additional Recoverable Gas from the Gingin area is

within Conventional sands of the Coaly Unit and

huge potential recoverable Shale Gas from within

the ‘C’ Shale (100 metres thick) in the Upper

Cattamarra and the shales in the Lower Cattamarra

over a 400 metre interval.

• Empire has high equity of 68.75% in EP 389 and

discoveries.

Conclusion [continued]

CataBY to YeaL

JUraSSIC oIL trenD

In eMPIre’S PertH BaSIn

onSHore CoaStaL

PerMItS

EP 389

Oi l and Condensate

Generated From

Jurass ic Source Rocks

in Dandaragan Trough

Gingin Brook Ant ic l inal

Ec l ipse West

Yeal

Mul ler ingAnt ic l ine

Possible oi l trends

Red Gul ly Gas F ie ld

Gingin South

Wannamal and Deep

Dongara to P in jarra P ipel ine [Parmel ia]

Dampier to Bunbury P ipel ine [DBNGP]

Ecl ipse

Gingin Gas F ie ld

Gingin West Gas F ie ld

Mo gumber

Woolka

Cool jar loo

EMPIRE OIL & GAS NLF

or p

erso

nal u

se o

nly

• Farmout to Origin Energy Pty Ltdto record 100km2 3D Seismic.

• Empire to operate the seismic and drilling programmes until adecision to undertake an appraisaland development programme hasbeen made. Origin will then assumeoperatorship.

• North Erregulla-1 drilled in 1967 byWAPET on poor quality surveyacquired in the 1960’s isconsidered did not drill on thecrest of the structure. Drill stemtests confirmed a live oil system.DST over one sand of the ArranooMember of the Lower TriassicKockatea Shale recovered 72.5litres of 380 API oil and a DST of thePermian aged Dongara Sandstonelocated directly beneath known

source rock, the Hovea Member ofthe Kockatea Shale recovered30 litres of 380 API oil.

• The Kockatea Shale is 260 metresthick in North Erregulla-1 supplyingexcellent vertical and lateral sealfor the Arranoo, Dongara andWagina reservoirs.

EP 426EP 437

EP 368

DONGARA

ENEABBA

MULLEWA

THRE

MINGENEW

NORTH ERREGULLA 1

MORIARY 1

GERALDON

Dongara Gas F ie ld

Mt Horner Oi l F ie ld

Cl i ff Head Oi l F ie ld

Hovea, J ingemia, Eremia Oi l F ie lds

Woodada gas f ie ld

Beharra Spr ings, Beharra Spr ingsNorth and Tarantula Gas F ie lds

north erregul la Prospect

potentia l recoverable oi l

25 MMBo/100 BCF gas

P R O S P E C T

EP 426 and 368

Locat ion of North

Erregul la ProspectDampier to Bunbury P ipel ine [DBNGP]

Dongara to P in jarra P ipel ine [Parmel ia]

EMPIRE OIL & GAS NL

n o rt H e r r eg U L L a

n o rt H P e rt H Ba S I n

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

General ised

Strat igraphy

Coolyena Group

Dongara/HoveaJingemia

ZONEOFINTEREST

Kockatea Shale

Arranoo SandDongara Sandstone

ACRET

CEO

US

ERTH

INP

BAS

ERMIA

PN

RS

TIASIC

BSM

T.PRE

CAM

.BUJRASSIC

Mt HornerMt Horner

MondarraErregulla

Mt Horner/Beharra Springs

Gingin/ Boo neWalyering

Warro

Woodada

Dongara

STRATIGRAPHYBASIN

AGE

L ITHOLOGYOIL & GAS

OCCURRENCES

3000m

3500m

NORTH ERREGULLA-1

CARYNGINIA FORMATION

DONGARA/WAGINA SANDSTONES

KOCKATEA SHALE

WOODADA FORMATION

IRWIN RIVER COAL MEASURESHIGH CLIFF SANDSTONE

2500m

LESUEUR SANDSTONE

EP 368/426

North Erregul la

Prospect

Onshore

Perth Bas in

potent ia lo i l reservoir

potent ia lgas reservoir

• Interpretation of existing seismicdata sets and the 400 line kmairborne gravity survey hasprovided Empire’s interpretation.The majority of the North ErregullaStructure is located in EP 368where Empire has a 40% interestafter farmout.

• Based on current mapping andreservoir parameters in the NorthErregulla-1 well and the volume ofthe current mapped structure,Empire has calculated that theentire North Erregulla tilted faultblock has the potential to haveestimated recoverable oil in theorder of 22 million barrels in theDongara/Wagina Sandstones and

3 million barrels of oil in theArranoo Member. There is also thepotential to trap a further 100billion cubic feet of gas in theDeeper Irwin River Coal Measuresand the High Cliff Sandstones.

• Shale gas potential exists in theHovea and Carynginia Formations.In the down thrown side of theNorth Erregulla fault block, theHovea Member is in the gaswindow. Four wells in the northernpart of EP 368 intersected thePermian section where gas showswere encountered in the EarlyPermian Carynginia Formation andEarly Permian aged Irwin RiverCoal Measures.

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

One of six Schlumberger’s

Western Geco Seismic

Vibroseis units, mobilised

from the Middle East, to

record the 100 km2 North

Erregulla 3D Seismic

Survey in EP 426 and

EP 368 , North Perth

Basin, Western Australia

February 2012

For

per

sona

l use

onl

y

Empire’s Seismic Manager,

Terry Grocke, in one of

seven units containing

battery charges for up to

500 km2 of computer

geophones

EMPIRE OIL & GAS NLF

or p

erso

nal u

se o

nly

Western Geco

computer Geophones

and cables

EMPIRE OIL & GAS NLF

or p

erso

nal u

se o

nly

EMPIRE OIL & GAS NL

Western Geco Recording

Unit - dog box

For

per

sona

l use

onl

y

Lancelin

Moora

30°00'S

31°00'S

115°00'E

D A

N D

A R

A G

A N

T R

O U

G H

B E A G

L E R I D

G E

BE

AG

LE

FAU

LT

LESUEU

RL

ES

SU

EU

R

FA

UL

T

S H E L F

DA

RL

IN

G

116°00'E

FA

UL

T

YARRA

YARRA

TERRACE

EP 432

EP 430EP 454

EP 389EP 440

0 30

C A

D D

A S

HE

LF

Dandaragan 1

Walyer ing Gas F ie ld

Woodada Gas F ie ld

Warro Gas F ie ld

Red Gul ly Gas F ie ld

Cool jar loo

6 MMBO

Dri l l Charger-1

20 MMBO

Winchester

16 MMBO

Garibald i

40 BCF Gas

Gingin Gas F ie ld

Gingin West Gas F ie ld

Woolka

30 MMBO

Dri l l B lack Arrow-1,

Tr iass ic Arranoo Oi l P lay with deeper Permian

convent ional and unconvent ional gas object ives

Launer

16 MMBO

D I S C O V E R Y

P R O S P E C T

EP 432, 454 and 430

Locat ion of Prospects

and Plays

EMPIRE OIL & GAS NLF

or p

erso

nal u

se o

nly

29°45'S

115°30'E 115°45'E

30°00'S

30°15'S

EP 430EP 454

UR

EL

LA

FA

UL

T

YA

RR

A

YA

RR

A

TE

RR

AC

E

0 40

DA

ND

AR

AG

AN

T

RO

UG

H

CHARGER PROSPECT

EMPIRE OIL & GAS NL

Warro Gas F ie ld

Charger

20 MMBO

Parmel ia Fm Prospect

Winchester

16 MMBO

Cattamara Prospect

Gar ibald i

40 BCF Gas

Permian Prospect

Launer

16 MMBO

Cattamara Prospect

P R O S P E C T

EP 454 and 430

Locat ion of Prospects

and PlaysFor

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

Charger

Yarragadee Playgaribaldi

Dongara/Wagina P lay

Launer

Cattamarra P lay

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

WOODADA

GERALDTON

KWINANA

BUSSELTON

P E R T H

B A S I N

MT HORNER

DONGARA

BEHARRASPRINGS

DA

RL

IN

GF

AU

LT

DA

ND

AR

RA

GA

NT

RO

UG

H

J INGEMIA

UR

EL

LA

FA

UL

T

DONGARA

PERTH

5

0m

HOVEA

CL IFF HEAD

WALYERING

BUNBURY

KWINANA

PERTHPERTH

BEHARRA SPRINGS NORTH

WARRO

NORTH ERREGULLA 1

MORIARY 1

EP 426

NORTH ERREGULLA-1 OIL RECOVERY

EP 440

Onshore Perth Basin

EP 432

MULLERING CATABY OIL PROSPECTS

3D SEISMIC COMPLETED

DRILL COOLJARLOO-1/WOOLKA-1

EP 454

GARIBALDI PROSPECT

RECORDED 2D SEISMIC

DRILL CHARGER-1 AND GARIBALDI-1

EP 430

LAU NER PROSPECT

RECORD 2D SEISMIC

DRILL LAUNER-1

EP 389

DRILLED GINGIN WEST-1/RED GULLY-1

GAS AND CONDENSATE DISCOVERIES

DEVELOPMENT OF RED GULL GAS AND CONDENSATE PLANT

DRILL GINGIN-4 AS GINGIN-2 DEEP

DRILL GINGIN-5 AS GINGIN-3 S IDE TRACK

EXTEND GINGIN WEST 3D SEISMIC

3D SEISMIC GINGIN BROOK

PLAN TO DRILL GINGIN BROOK-1

RECORD 2D SEISMIC OVER YEAL OIL PROSPECT

PLAN TO DRILL YEAL-1

WELLESLEY GAS PROSPECT

2D SEISMIC COMPLETED

DRILL WELLESLEY-1

EP 416

LESCHENAULT PROSPECT

2D SEISMIC

DRILL ONE WELL

L08-7

L08-6

EP 368

RECORD 3D SEISMIC

DRILL NORTH ERREGULLA-2

NORTH ERREGULLA PROSPECT

• Develop Red Gully Gas and CondensatePlant for both Gingin West and Red Gully discoveries

• Drill Wannamal and Wannamal Deep potential recoverable reserves 66 BCF and2.3 MMBC.

• Plan to extend Gingin West 3D Seismic over Gingin Gas Field as the Wannamal 3D Heliseis.

• Plan to drill Gingin-4 [Gingin-2 Deep] and• Plan to drill Gingin-5 [Gingin-3 Sidetrack] to

access gas closure with up to 4.3 MMBC and 87 BCF potential recoverable gas between Gingin-1 and Gingin-2 discovery wells.

• total potential recoverable gas and condensate gingin area is 205 BCF and9.2 MMBC.

• Plan 3D Seismic over the Gingin Brook Anticline. Plan to drill Gingin Brook-1 potential recoverable reserves up to 100 BCF.

• Plan 2D Seismic over the Yeal Prospect.Plan to drill Yeal-1 potential recoverable reserves 25 MMBO.

• Plan 3D Seismic over Eclipse, Eclipse West. • Record 100 km2 3D Seismic with Origin

Energy and plan to drill North Erregulla-2 potential recoverable reserves 66 MMBOand 100 BCF gas.

• Recorded 2D Seismic over Garibaldi. Prospects Charger and Garibaldi.

• Plan to drill Charger-1 potential recoverable reserves 20 MMBO.

• Drill Black Arrow-1 EP 432• Plan to drill Garibaldi-1 in EP 454 potential

recoverable reserves 100 BCF and 20 MMBO.• Plan to drill Cooljarloo Oil Prospect potential

recoverable reserves 6 MMBO or Woolka potential recoverable reserves 30 MMBO in EP 432.

• Plan to drill Wellesley in EP 416 potential recoverable reserves 150 BCF.

• Plan 2D Seismic. Plan to drill Leschenault-1 inEP 416 potential recoverable reserves60 BCF.

• Plan 2D Seismic. Plan to drill Launer-1 inEP 432 if Prospect closes.

G A S A N D C O N D E N S AT E P L A N T

D R I L L 1 W E L L

D I S C O V E R Y

S E I S M I C S U R V E Y

P R O S P E C T

Perth Basin Planned Exploration and Production Summary 2011 - 2012

PROGRAMMES ALREADY FUNDED PROGRAMMES THE SUBJECT OF INTRODUCING

ADDITIONAL FARMIN PARTNERS AND/OR GAS AND

CONDENSATE SALES

• Record 3D Seismic over Gingin Gas Field/Wannamal

• After recorded Wannamal 3D Heliseis, Drill Wannamal and Wannamal Deep and Drill Gingin-4 and Deep and drill Gingin-5.

• Record 3D Seismic over Gingin Brook Prospect. Drill Gingin Brook-1.

• Record 2D Seismic over Yeal.Drill Yeal-1.

• Drill Black Arrow-1 EP 432Drill Charger-1 EP 454

• Record 3D Seismic over Eclipse andEclipse West.

• Complete recording of the North Erregulla 3D Seismic Programme

• Drill North Erregulla-2 Oil Prospect.

• Drill Woolka or Cooljarloo Oil Prospect. Defined by 3D Seismic already recorded in EP 432.

• Record 2D Seismic over Leschenault.Drill Leschenault-1.

• Drill Wellesley-1 in EP 416.

• Drill Garibaldi-1 in EP 454.

• Plan Seismic over Launer.Drill Launer-1 in EP 430.

• Develop Gas and Condensate Plant for Gingin West and Red Gully and 2.5 km pipeline to pipeline infrastructure. Financing for Plant construction from a Forward Gas Supply Agreement with Alcoa of Australia. Condensate trucked to BP Kwinana Refinery.

• There is a separate Gas Sales Agreement with Alcoa.

• Record 3D Seismic over North Erregulla.Plan drill North Erregulla-2 Oil Prospect.

• Recorded 2D Seismic over Garibaldi with Farmin with ERM Gas. Drillable prospects:Plan drilling Charger-1 and Garibaldi-1.

• Plan 3D Seismic over Wannamal and the Gingin Gas Field.

• Plan 3D Seismic over Gingin Brook.

• Plan 2D Seismic over Yeal.

• Plan 2D Seismic over Leschenault.

For

per

sona

l use

onl

y

Suite 7

154 Hampden Road

Nedlands 6009

Western Austra l ia

Telephone 61 8 6389 2687

Facs imi le 61 8 9386 6812

Emai l info@empireoi l .com.au

Website www.empireoi l .com.au

asx code EGO

Red Gully-1

production test

March 2011

For

per

sona

l use

onl

y

EMPIRE OIL & GAS NL

E M P I R EO I L & G A S N L

A B N 5 5 0 6 3 6 1 3 7 3 0

For

per

sona

l use

onl

y