QUARTERLY REPORTMARCH 2013

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2 AWE QUARTERLY REPORT | MARCH 2013

AWE continued to deliver on its strategy over the March quarter with another solid production performance, good progress across all our major development projects, and our 2013 exploration drilling program getting underway. Importantly, following an independent review, we announced a 67% increase in Sugarloaf 2P Reserves, representing an increase of 6.4 million BOE which is greater than AWE’s forecast total production for 2012-13.

The Ande Ande Lumut (AAL) development project in Indonesia is progressing well. The AWE Board recently concluded a visit to our Jakarta office, which included a Board meeting, review of the project status and meetings with Indonesian government and industry officials. I’m pleased to advise that the project has reached a number of important milestones and is now entering the FEED contracting stages for the wellhead platform and the FPSO. The subsurface development plan is also being finalised and the farm out process remains on track with the data room expected to open in June and FID scheduled before the end of the 2013 calendar year.

In the Perth Basin, WA, the development feasibility study for the Senecio tight gas field is close to completion and preliminary findings are being reviewed. We are excited about the development potential of this unconventional asset and have commenced preparatory work for the environmental approval process. Testing at Arrowsmith-2 continues and a decision has been made to recomplete the well using a smaller tubing string to enhance well flow back and clean up and subsequent

flow testing of the Carynginia, the Irwin River Coal Measures and the High Cliff Sandstones.

Appraisal drilling on the Lengo discovery in the East Java Sea, Indonesia, has commenced with the Lengo-2 well spudding on 19 April. We are also moving ahead with plans to farm-out part of the Anambas PSC, a significant gas discovery in the Natuna Sea, prior to drilling an appraisal well.

In New Zealand, preparations are well underway for the drilling program planned for the second half of the year. The Pateke-4H development well and the Oi-1 exploration well offer further production and reserves potential for the Tui joint venture.

Our financial position remains sound with sales of $222 million and EBITDAX of $141 million year to date. Net debt was reduced during the quarter by 46% to $29 million.

We anticipate that production for Q4 will be broadly in line with the previous two quarters and we remain on track to achieve full year production within the guidance range of 4.9 to 5.3 million BOE.

Bruce Clement Managing Director

MANAGING DIRECTOR’S COMMENTS

HIGHLIGHTS FOR THE 3 MONTHS TO 31 MARCH 2013 Production steady at 1.3 million BOE

Sales revenue of $77 million in line with previous quarter

Field EBITDAX up 1.3% to $49 million

Sugarloaf 2P Reserves up 67% (greater than AWE’s forecast total production for 2012-13)

Senecio gas field development feasibility study nearing completion

Promising gas flows from Carynginia Shale interval at Arrowsmith-2

Good progress on the AAL development project – tendering for major facility construction contracts commenced and farm-out preparations on track

Appraisal drilling underway on Lengo gas field, IndonesiaBruce Clement, Managing Director

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AWE QUARTERLY REPORT | MARCH 2013 3

FINANCIAL AND CORPORATE FOR THE 3 MONTHS TO 31 MARCH 2013

Production for the March 2013 quarter was steady at 1.3 million BOE, which was in line with expectations.

AWE’s core production assets generated net sales revenue of $77 million, in line with the previous quarter.

Field EBITDAX for the period was $49 million, up 1.3% over the December quarter. Field operating costs, including royalties, were $28 million, down 2% on the previous quarter.

Development expenditure during the period was $20 million, down 50% following the completion of 2012-13 development activities at BassGas and a reduction in development drilling at Sugarloaf.

Exploration expenditure for the quarter was $6 million, an increase of 71% over the previous quarter largely due to expenditure relating to drilling of the Lengo-2 appraisal well in Indonesia.

At the end of March 2013, AWE had net debt of $29 million comprising cash of $59 million and drawn debt of $88 million. Undrawn facilities at the end of the period totalled $212 million.

The average price of Brent oil for the quarter (in Australian dollars) was $108 per barrel.

CORPORATEAWE made two senior executive appointments in April 2013.

A) Michael Drew has been appointed General Counsel. This is a new position within AWE that has been established to provide direct internal legal support for all our business activities. Michael has extensive major law firm and industry experience gained in Australia, the UK, Russia, Canada and the USA.

B) Neil Tupper has been appointed General Manager, Exploration & Geoscience. Neil has over 30 years of experience in Australian and international oil and gas exploration and production and will be responsible for leading AWE’s team of explorers and geoscientists across all areas of its business in exploration, geoscience, and new ventures.

Both Michael and Neil will commence in May and will be members of AWE’s Executive Team.

FINANCIAL HIGHLIGHTS (UNAUDITED)3 months to

Mar 2013 3 months to

Dec 2012Year to Date at Mar 2013

Exploration Expenditure $’000 $’000 $’000

New Zealand 42 29 91

South East Australia 256 221 380

Western Australia 1,346 1,371 13,542

Indonesia 3,049 555 3,691

Yemen 279 161 505

Other 1,061 1,181 3,477

Total 6,033 3,518 21,686

Development Expenditure

New Zealand 1,825 329 2,815

South East Australia 4,303 18,304 64,172

Western Australia 257 225 588

USA 9,831 17,213 41,465

Indonesia (AAL) 3,730 4,045 10,513

Total 19,946 40,116 119,553

$ million $ million $ million

Sales Revenue 77 77 222

Field Opex 28 29 82

Field EBITDAX 49 48 141

Financial highlights are preliminary and unaudited. Numbers may not add due to rounding.

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FY 2012-13 QUARTERLY PERFORMANCE

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4 AWE QUARTERLY REPORT | MARCH 2013

PRODUCTION AND DEVELOPMENT

AWE has six production assets operating in South East Australia, Western Australia, New Zealand and the USA. In addition, AWE is progressing a number of development projects within these asset areas and is significantly expanding its international business through the AAL oil development project in Indonesia.

AUSTRALIA

BassGas (46.25%)AWE’s share of production was approximately 1,700 TJ of gas, 51,900 barrels of condensate, 3,500 tonnes of LPG and 4,100 tonnes of CO2. The gross average daily gas production rate for the quarter was approximately 41 TJ per day, largely due to Yolla-3 being shut in for most of the period, but was in line with expectations.

Yolla-3 was shut in from late January 2013 pending a down-hole work over to restore full production and to access additional reservoir zones. The work over was successfully completed in mid-April with closure of the water producing upper EVCM zone and access to the 2809 zone being restored. Production has resumed from Yolla-3 and is being gradually ramped up.

A wireline campaign is planned for Yolla-4 in May. This is to acquire production log data in order to optimise the performance of this well.

The Joint Venture is close to finalising the sequencing and timing of the next two phases of the MLE project which comprise development drilling and the installation of a compression module at the Yolla platform. A decision on sequencing and timing is expected shortly with FID expected around mid-2013.

Casino, Henry & Netherby (25%)Total gas output from operations in the Otway Basin averaged approximately 93 TJ per day, down slightly on the previous quarter but in line with projected gas nominations. AWE’s share of production for the March 2013 quarter was approximately 2,100 TJ with 1,400 barrels of condensate.

The Joint Venture has approved a subsea maintenance campaign to be undertaken in May-June 2013. The Iona gas processing plant will also be shut down for two weeks in the coming quarter to complete scheduled annual plant maintenance.

Cliff Head Oil Field (57.5%)Cliff Head performed ahead of expectations, with production above internal forecasts. Production for the quarter averaged approximately 2,631 bopd gross, and AWE’s share of production and sales was approximately 136,200 barrels.

Following the successful conversion of the CH-9 well into a water injector, collection of field performance data to assess possible reserves upside is ongoing. Water injection into the CH-9 well is aimed at sweeping oil in the reservoir more efficiently towards the producing wells.

Onshore Perth Basin (33-100%, some Operated)AWE’s share of production for the quarter from the onshore Perth Basin assets was approximately 1,300 barrels of oil/condensate and 650 TJ of gas. Gas production was up 11% over the previous quarter due to increased production from the Beharra Springs/Redback field. Additional gas sales have been agreed for the next quarter which should lead to increased production from the Corybas and Beharra Springs/Redback fields.

NEW ZEALAND

Tui Oil Fields (42.5%, Operator)Average gross daily production from the Tui oil fields was approximately 3,877 bopd. Gross production for the quarter was approximately 349,000 barrels and AWE’s share was 148,300 barrels. Production was affected by maintenance on the FPSO turret in February. Tui oil sales for the period totalled approximately 364,500 barrels of which 154,900 barrels were AWE’s share. Inventory at 31 March 2013 was approximately 127,000 barrels, with 54,000 barrels attributable to AWE.

Preparations are underway for the Pateke-4H infill development well, which is expected to be drilled before the end of 2013. Pateke-4H will target a mapped northern extension of the currently producing Pateke field.F

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AWE QUARTERLY REPORT | MARCH 2013 5

USA

Sugarloaf AMI (10%, net 7.5% after royalties)The Sugarloaf asset continued to perform strongly during the period, with year to date production to 31 March 2013 up 282% over the previous year. AWE’s share of production for the March quarter was approximately 99,900 barrels of oil/condensate, 4,400 tonnes of LPG and 360 TJ of gas net after royalties.

In March 2013, an independent review of Reserves for the Sugarloaf AMI was completed which resulted in a 67% increase in Sugarloaf’s 2P Reserves. This represents an additional 6.4 million BOE of 2P Reserves, which is greater than AWE’s forecast total production for 2012-13.

At the end of March, 81 wells were producing, 2 wells were drilled and awaiting completion, and a further 3 wells were being drilled. Of the wells being drilled, one is targeting the Austin Chalk, which lies above the Eagle Ford, with a horizontal, multi-stage frac. AWE has booked 2C Contingent Resources of 5.1 million BOE for the Austin Chalk reflecting only part of the total potential of this zone.

The Operator has advised that the number of wells to be drilled in the Sugarloaf acreage this calendar year has increased to 37, with at least 2 of these in the Austin Chalk. In addition, the Operator is expected to release updated test results for 60 acre and 40 acre well spacing in mid-2013. These results will be important for determining further 2P Reserves upgrade potential.

INDONESIA

North West Natuna PSC (100%, Operator)Good progress was made on the AAL oil development project in Indonesia and regulatory approvals for the FPSO Tender Plan and Tender Prequalification results have been obtained. This is a major step in progressing the FPSO delivery and represents formal government approval of AWE’s project delivery plan involving combining FEED and contract tendering into a design competition. This approach will result in a compressed engineering design and fabrication timeframe for the FPSO.

Interpretation of the final 3D seismic PSDM is now complete and an update of the current reservoir model will be finalised in coming months. The subsurface work program, integral to optimising the approved Plan of Development (POD), is nearing completion with a redesigned development well plan now being finalised. This optimised plan also forms the basis of an independent audit and certification of the AAL Contingent Resources currently being undertaken by RPS in Perth.

Preparations for the farm out of up to 50% of the AAL oil project continue, with the associated data room scheduled to open in June 2013. FID for the project remains on schedule for the end of 2013 calendar year.

Casino pipe laying operations, 2009, VictoriaCliff Head platform, WA

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6 AWE QUARTERLY REPORT | MARCH 2013

EXPLORATION AND APPRAISAL

AWE’s focused and disciplined approach to exploration and appraisal is currently concentrating on identifying and testing opportunities in Australia, New Zealand and Indonesia.

AUSTRALIA

BassBasinIn exploration permit T/18P (AWE 44.75%), work on the interpretation of the Chappell 3D seismic is nearing completion, a key step in evaluating the commercial potential of the Trefoil gas/condensate discovery. The Joint Venture is evaluating moving to a development concept study, concentrating on conceptual infrastructure options to determine if the use of existing BassGas infrastructure provides the optimum development solution.

The review of the Rockhopper field continued and work to assess the White Ibis field, and its associated leads, made good progress.

Otway BasinIn exploration permit VIC/P44 (AWE 25%) a large 3D seismic processing project has commenced, with completion targeting the first quarter of 2014.

The Joint Venture is also reviewing the economic potential of the Blackwatch and Pecten East gas field discoveries in light of forecast higher future gas prices.

North Perth BasinAWE’s unconventional gas exploration and testing program continued during the quarter, with significant and positive progress made in a number of areas.

In production licence L1/L2 (AWE 50%, Operator), the development feasibility study for the Senecio tight gas field is substantially complete and preliminary findings are currently being reviewed by the Joint Venture. Completion of the study is expected in the June quarter and preparatory work required for environmental approvals has commenced. A geophysical interpretation of the Senecio gas accumulation using the processed Irwin 3D seismic dataset has been completed and reservoir simulation modelling is underway.

In exploration permit EP413 (AWE 44.25%), testing at the Arrowsmith-2 well continued. The Kockatea shale was sealed off, after flowback testing that produced both oil and gas, and the Carynginia zones were accessed. Following a period of pressure build up, the Carynginia flowed back gas unaided for a period of four days at a maximum rate of 350,000 scf/d in February 2013.

The Joint Venture has decided to recomplete the well with a smaller 2 3/8 inch tubing string (inside the existing 5 1/2 inch casing) to improve the well flow characteristics

Kan Tan IV drilling rig

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AWE QUARTERLY REPORT | MARCH 2013 7

and enable improved well clean-up and lifting of injected fluid from the well. Once this work is complete, testing of the Carynginia shales, the Irwin River Coal Measures and the High Cliff Sandstones will resume. The Joint Venture has also agreed a 5 Year Work Program for the EP413 permit and a renewal application has been submitted to the WA Department of Mines and Petroleum.

Following the promising results from the Senecio and Arrowsmith-2 wells, AWE is evaluating recently acquired and processed 3D seismic data, targeting tight sands and conventional oil and gas opportunities in various permits. A number of promising leads have been identified and are being pursued.

In exploration permit EP455 (AWE 81.5%, paying 100% and Operator), planning and preparation for the drilling of the Drover-1 well continues. A groundwater study has been commissioned and preparatory work for environmental approvals is underway.

NEW ZEALANDDrilling preparations are underway for the Oi exploration well in Permit PMP38158 (AWE 42.5%, Operator). The Oi prospect is located 13 km to the northeast of the Tui field and represents a Prospective Resource of 11 million barrels of recoverable oil (gross, P50 estimate). AWE has elected to participate in the Oi exploration well at reduced equity of 25% with the option to increase to 42.5% through a buy-back of equity from Pan Pacific Petroleum. AWE is the Operator of the well.

INDONESIADrilling of the Lengo-2 appraisal well in the Bulu PSC (AWE 42.5%) commenced on 19 April 2013. The Randolph Yost jack-up drill rig was mobilised from Singapore to its location in the East Java Sea without incident. The Lengo-2 well is designed to confirm a commercial volume of gas in the Lengo discovery and provide additional reservoir information via coring and testing of the carbonate sequence in preparation for a possible future plan of development submission. Lengo-2 is a vertical well located on the crest of the Lengo structure and has a planned total measured depth of 830m.

AWE is re-evaluating the exploration potential of the North Madura PSC (AWE 50%, Operator) and the Terumbu PSC (AWE 100%, Operator) in preparation for a renewed farm-out effort.

In the Titan PSC (AWE 40%, paying 50% and Operator), additional seismic data over the northern part of the PSC area have been sourced and purchased. The acquisition of more comprehensive 2D seismic data is being considered to fully evaluate an existing gas discovery contained within the PSC area (Cempaka-1).

These datasets will be integrated with the current assessment to provide a re-evaluation of the discovery for possible future development.

The technical and evaluation work on the Anambas PSC (AWE 100%, Operator) is being finalised and potential field development options are being considered. Planning and preparation for a farm-out is underway, with the aim of introducing a partner prior to drilling an appraisal well on the Anambas discovery.

AWE has completed and submitted a Joint Study for an Indonesian Shale Gas opportunity in Central Sumatra. AWE has proposed a final area to be considered for inclusion in the first unconventional bid round assessed by the regulator. The award of any PSC is subject to the regulator finalising rules and regulations concerning production sharing for shale gas resource projects.

SUMMARY OF ABBREVIATIONS AAL Ande Ande LumutAMI Area of Mutual Interest BOE Barrels of Oil EquivalentBbls Barrelsbopd Barrels of Oil Per Day EBITDAX Earnings before interest, tax, depreciation,

amortisation and exploration expensesFEED Front End Engineering and Design FID Final Investment DecisionFPSO Floating Production Storage and Offloading GJ GigajoulesLPG Liquefied Petroleum Gas MLE Mid-Life Enhancement scf/d Standard Cubic Feet per DayPOD Plan of Development PSC Production Sharing Contract PSDM Pre Stack Depth MigrationTJ Terajoules

Except where otherwise noted, all references to “$” are to Australian dollars

RESERVES The Reserve and Resource information contained in this report is based on information compiled by David Gaudoin (Vice President, Exploration and Development, Indonesia) and Ian Palmer (General Manager, Development). Mr Gaudoin is a petroleum geologist, holds a Masters Degree in Petroleum Geology, and has 23 years’ experience in petroleum exploration. Mr Palmer holds a Bachelor Degree in Engineering and has 32 years’ experience in the practice of petroleum engineering. Both Mr Gaudoin and Mr Palmer have consented in writing to the inclusion of this information in the form and context in which it appears.

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For more information:T: +61-2-8912 8000 F: +61-2-9460 0176 E: awe@awexplore.com www.awexplore.comIssued by AWE Limited, 30 April 2013

Cover photo: Yolla wellhead

PRODUCTION SUMMARY

3 months to Mar 2013

3 months to Dec 2012

% Change 9 months to Mar 2013

9 months to Mar 2012

% Change

NEW ZEALANDTuiOil (‘000 Bbls) 148 183 -19% 536 724 -26%

SOUTH EAST AUSTRALIABassGasCondensate (‘000 Bbls) 52 62 -17% 114 160 -28%

LPG (Tonnes) 3,532 3,149 12% 6,681 11,921 -44%

Gas (TJ) 1,719 1,742 -1% 3,461 4,746 -27%

Casino/Henry/NetherbyCondensate (‘000 Bbls) 1 2 -12% 5 5 4%

Gas (TJ) 2,081 2,185 -5% 6,663 5,987 11%

WESTERN AUSTRALIACliff HeadOil (‘000 Bbls) 136 147 -8% 442 533 -17%

Onshore Perth BasinOil (‘000 Bbls) 1 6 -79% 17 54 -69%

Gas (TJ) 650 585 11% 1,907 1,588 20%

ONSHORE USASugarloaf AMI1

Condensate (‘000 Bbls) 100 95 5% 261 74 255%

LPG (Tonnes)2 4,407 1,572 180% 7,946 0 n/a

Gas (TJ)2 361 195 85% 760 313 143%

TOTALOil (‘000 Bbls) 286 336 -15% 995 1,311 -24%

Condensate (‘000 Bbls) 153 159 -3% 381 238 60%

LPG (Tonnes) 7,939 4,722 68% 14,627 11,921 23%

Gas (TJ) 4,812 4,705 2% 12,791 12,634 1%

Total (‘000 BOE) 1,333 1,334 0% 3,677 3,793 -3%

PRODUCTION BY PROJECT (‘000 BOE)Tui 148 183 -19% 536 724 -26%

BassGas 379 389 -2% 769 1,089 -29%

Casino/Henry/Netherby 348 366 -5% 1,115 1,003 11%

Cliff Head 136 147 -8% 442 533 -17%

Onshore Perth Basin 110 104 6% 335 319 5%

Sugarloaf AMI 211 145 45% 480 126 282%

Total (‘000 BOE) 1,333 1,334 0% 3,677 3,793 -3%

1. The Sugarloaf AMI production data for the 3 months to 31 March 2013 includes adjustments made for under-reporting in the previous quarter.2. From 1 July 2012 for Sugarloaf AMI, Gas includes dry gas volumes only and LPG volumes are reported in a separate line.Numbers may not add due to rounding.

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