AWE LimitedBruce Clement, Managing Director

Citi Conference, 24 October 2012

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Disclaimer

This presentation may contain forward looking statements that are subject to risk factors associated with the oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

This presentation may also contain non-IFRS measures that are unaudited but are derived from and reconciled to the audited accounts. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

The reserve and resource information contained in this report is based on information compiled by David Gaudoin (General Manager, Exploration and Geoscience) and Ian Palmer (General Manager Development). Mr Gaudoin is a petroleum geologist, holds a Masters Degree in Petroleum Geology, and has 22 years experience in petroleum exploration. Mr Palmer holds a Bachelor Degree in Engineering and has 31 years experience in the practice of petroleum engineering. Both have consented in writing to the inclusion of this information in the format and context in which it appears.

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About AWE

ASX listed company, established in 1997• Market capitalisation of approximately $700 million

• Offices in Sydney, Perth, New Plymouth (NZ), Jakarta and Kuala Lumpur

• 56.1 million BOE of 2P Reserves plus 133 million BOE of 2C Resources, including 94 million barrels of liquid Reserves and Resources

Diversified production asset base in Australia, NZ & USA• Tui Oil Project - offshore Taranaki Basin, New Zealand

• BassGas Project - offshore Bass Basin, SE Australia

• Cliff Head Oil Field - offshore Perth Basin, Western Australia

• Casino Gas Field - offshore Otway Basin, SE Australia

• Onshore Perth Basin - conventional oil and gas, Western Australia

• Sugarloaf AMI - Eagle Ford shale gas, onshore Texas, USA

Exciting development and exploration asset portfoli o• Sugarloaf AMI development in USA - substantial production increases

• Perth Basin shale gas and tight gas testing campaign - promising results

• 100% owned Ande Ande Lumut oil field development project in Indonesia3

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Focused on key energy markets

Based in Australia, AWE is focused on delivering gr owth in key energy markets 4

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Financial highlights FY 2011-12

Strong sales revenue and operating cash flows achie ved in challenging year 5

• 4.7 million BOE production (including 6+ months shut-down at BassGas)

• $298.4 million sales revenue

• $188.7 million EBITDAX

• $300 million debt refinancing demonstrates cash flow strength

• 31% growth in total 2P Reserves and 2C Resources

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New Zealand South-EasternAustralia

WesternAustralia

United States

EBITDAX by Segment ($M)

2011

2012

8.75

6.09 6.124.69

4.5-5.0

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4.0

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12.0

FY09 FY10 FY11 FY12 FY13Guidance

million BOEProduction

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FY 2012-13 guidance

Guidance to be revised in Quarterly Update at end o f October 6

Item 2012-13 Guidance 2011-12 Actual

Production (million BOE) 4.5 to 5.0 4.69

Revenue ($m) 250 to 280 298.4

Development expenditure ($m) 190 to 220 171.5

Exploration expenditure ($m) 50 39.2

Revenue guidance is based on A$100 per barrel Brent oil price and AUD/USD exchange rate of $1.00

• Expect reduced development capital expenditure and some improvements in production and revenue due to deferred compression module lift at BassGas

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AWE 2P Reserves and 2C Resources (as at 30 June 2012)

2C Resource - US Gas & Condensate

2C Resource - Indonesia Gas & Liquids

2C Resource - Australian Gas

2C Resource - Aust/NZ Combined Liquids

2C Resource - Ande Ande Lamut Oil

2P Reserves - Gas

2P Reserves - Liquids

Anambas and Lengo

Australian Gas

Australia & NZ Liquids

Ande Ande Lumut

2P Reserves + 2C Resources

• 189.1 million BOE 2P Reserves plus 2C Resources

• 31% increase in 2P+2C over FY 2011-12

• 56.1 million BOE 2P Reserves

• 22 million barrels of 2P liquid Reserves

• An additional 43 million BOE net contingent oil Resources from AAL acquisition

• Total 94 million barrels of liquid Reserves and Resources that will benefit from strong world oil prices

AWE is well positioned to benefit from anticipated liquids price growth 7

Note: Does not include potential resources from Perth Basin shale gas

2P 2P+2C

Sugarloaf

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AWE positioned for value and growth

Continued focus on strategic initiatives to grow sh areholder returns 8

Identify and pursue selective growth assets

• Progress Ande Ande Lumut development in Indonesia

• Pursue new ventures & acquisitions in New Zealand, Australia & Asia

• Lengo and Anambas exploration/appraisal in Indonesia

Utilise skills from Sugarloaf and Perth Basin initiative

• Sugarloaf AMI – drilling of over 35 wells in 2H 2012

• Perth Basin tight gas and shale gas testing program

• Indonesia shale gas studies progressing

Focus on delivery of opportunities near to existing infrastructure

• Additional Tui in-field

opportunities under

review

• Trefoil development

opportunity

Focus on core assets & optimise production performance

BassGas

• Restart production

• MLE compression

• MLE drilling planning

Cliff Head

• Workover

Deliver base business

Maximise near-field opportunities

Develop opportunities in New Energy

Grow through exploration & acquisitions

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Operational update

Enhanced performance of production assets• Successful workover at Cliff Head in FY2011-12• Accelerated development drilling campaign within Sugarloaf AMI yielding higher gas and

condensate production, up 129% at 30 September 2012 compared to prior quarter

BassGas returned to production in October 2012• Yolla platform currently producing approximately 40 TJ/d during ramp up• Compression module lift deferred; enhances FY2012-13 production and revenue; lower

capex expected

Encouraging tight gas and shale gas results in the Perth Basin• Successfully tested 3 proof of concept wells• Hydraulically stimulated 8 zones; hydrocarbon flows achieved from all zones

Growth assets in Asia through 100% ownership of Nor thwest Natuna (AAL) and Anambas PSCs as operator:• Moving forward with development plans for Ande Ande Lumut• Assessing potential of Lengo and Anambas

Focused on working quality assets and maximising gr owth opportunities 9

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Health, Safety and Environment

• HSEQ a key focus for AWE

• New corporate HSEQ manager appointed

• HSEQ staff for each AWE-operated project

• Actively working with stakeholders and partners on safety initiatives to improve performance

• Strong focus on expanding current HSE foundations within AWE

• Actively promoting HSE culture within AWE and its contractors:

o No harm to personnel

o Minimise the effects on the environment

o Manage integrity of facilities

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FPSO Umuroa

Onshore Perth Basin frac spread

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Enhanced asset performance

Cliff Head Oil Field• Successful workover of Cliff Head-12

during FY2011-12

• 7.5% increase in production from prior year

• Planned workover of Cliff Head-9 to convert the well into a water injector in 2H12 to boost reserves and production

Tui Oil Fields• Two planned maintenance shut downs

completed on time and under budget in FY2011-12

• Additional in-field opportunities being evaluated

• Focus on maintaining and improving FPSO performance

11Offshore oil fields performing wellCliff Head platform

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Enhanced asset performance

Casino/Henry/Netherby Gas Fields• Good production performance, meeting the

long term contract

• Additional Load Factor gas sales achieved in 3Q12

• Reviewing additional exploration/development opportunities

Onshore Perth Basin Gas Fields• Gas sales increase from Jan 2012

• Strong WA gas market

• High level of market interest in additional Perth Basin gas

• Shale gas and tight gas growth opportunities

Other Australian gas assets performing to contract 12

Dongara Plant

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BassGas – MLE project status

Upside reserves and resource potential in strengthe ning east coast gas market 13

• Quality long term gas & condensate asset

• Mid Life Enhancement Project (MLE) aims to extend field life and maximise resource recovery and operating cash flow

− Successful installation of accommodation module for 37 people

− Production restarted in October 2012

− Current rate of approximately 40 TJ/d during ramp up

− Compressor installation deferred, equipment stored and vessel released

• Assessing optimal sequencing and timing of compression module installation and development drilling; work to be done in summer of 2013/14 and 2014/15

• Additional well in Upper EVCM being considered as part of MLE drilling

• Considering potential well workovers to improve production performance Yolla accommodation module in placeFor

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Eagle Ford Shale – Sugarloaf AMI

• Marathon acquired operatorship in November 2011 - AWE holds 10% working interest in Sugarloaf AMI

• 2P Reserves of 9.7 million BOE, with further 2C Resources of 6.3 million BOE at 30 June 2012

• Typical well costs of US$8-9 million; drilled, stimulated and completed

• Accelerated drilling campaign yielding positive production results - 51 producing wells online at end of September 2012

• Sugarloaf revenue dominated by condensate and liquids. Oil/condensate trading at substantial premium to WTI

• Average September net production of 2.6 TJ/day of dry gas with 845 bbls/day oil/condensate and 244 bbls/day natural gas liquids (NGL)

• Operator planning to drill 50 plus wells during 2012 and 60 plus wells in 2013

Recent Sugarloaf deals (non-AWE) demonstrate signif icant increase in value 14

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Eagle Ford Shale - Sugarloaf AMI

Record production output achieved in 3Q12 with fur ther drilling activity planned 15

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Sugarloaf AMI – further development

• Potential upside from further development opportunities

• Marathon evaluating tighter well spacing:

− Well testing pilot program underway

− Wells drilled at approximately 40 and 60 acre intervals

− Anticipate release of test results in early 2013

• Plans to evaluate overlying Austin Chalk and deeper shale sections

• Refining frac designs and production optimisation

• Potential to significantly increase Reserves and production

Significant learning opportunity for AWE – transfer of knowledge to Perth Basin 16

Sugarloaf operations

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A fresh look at the Perth Basin

Perth Basin Shale and Tight Sands• AWE’s footprint in Perth Basin approximately

600,000 net acres under lease

• Taking a fresh look at data accumulated over last 20-30 years – past drilling has intersected many tight gas and oil reservoirs

• Economics in favour of commercialisation:− Infrastructure in place

− Stronger gas prices

− Access to latest technology from USA

• Hydraulic fracture stimulation of 3 proof of concept wells completed between July and September 2012

• 8 separate zones in tight sands and shales successfully stimulated

• Hydrocarbon (gas and oil/condensate) flowed from each zone

• 13-20 Trillion cubic feet of gas potential (in place) assessed within Middle Carynginia

• Additional target zones identified

17Offers significant reserves potential

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Perth Basin – tight sands

Senecio-2 (AWE 50%, AWE Operator)• Tight sandstone gas play in production

licences L1/L2

• Successfully perforated a 5m interval and stimulated the Wagina and Dongara reservoir (2,643m to 2,685m)

• Latest flow test in September 2012 achieved a stabilised gas rate of 1.35 MMscf/d and produced 4.65 MMscf gas and approximately 65 bbls of oil/condensate over 40 hours

• Well shut-in and pressure test underway – due to remove pressure gauges in November 2012

• Data from flow test, combined with recently acquired 3D seismic, will be used to build reservoir model and plan next step

Possible 50-100 Bcf recoverable gas field 18

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Perth Basin – shale gas

Woodada Deep-1 (AWE 100%, AWE Operator)• Underneath depleted Woodada gas field in

production licence L5

• Targeted Middle Carynginia from 2,370m to 2,425m and the Upper Carynginia from 2,283m to 2,330m – both successfully stimulated

• Microseismic data acquired using the adjacent Woodada-14 well as an observation point assisted assessment of fracture propagation, type and density

• During the initial well clean-up and flow back gas was recovered and flared

• Clean-up was initially assisted by the coil tubing and nitrogen lift

• Field operations temporarily suspended

• Options currently being evaluated for the isolation of the Middle Carynginia zone for further testing, subject to results of lab tests and data analysis

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Perth Basin – unconventional oil & gas

Arrowsmith-2 (AWE 44.25%, NWE Operator)• Located in exploration permit EP 413

• 5 zones tested – hydrocarbon flow achieved from all zones

• Separate hydraulic fracture stimulations, plugs set between each zone

• Achieved stablised rate of 0.78 MMscf/d from High Cliff Sandstones

• Recovery of oil from Kockatea enhances potential

• Immediate plan to clean up, flow back and test each zone sequentially to evaluate the flow potential of each zone

• Flowback and evaluation of the Kockatea to commence in October 2012

• Further evaluation of Middle & Lower Carynginia, Irwin River Coal Measures shales and High Cliff Sandstones is planned

• Evaluating potential acquisition of 3D seismic in 2013 20

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Growth into Asia - Indonesia

• Acquired growth assets in Asia through 100% ownership of Northwest Natuna and Anambas PSC’s containing:

− Ande Ande Lumut oil field (76 million barrels estimated recoverable oil)

− Anambas gas discovery (60 Bcf gas and 6 million barrels of liquids) and a number of exploration targets

• AWE will operate AAL and Anambas

• Utilise operating and JVP experience gained from Tui, Cliff Head and other offshore operations (FPSO, horizontal well design & completion, ESPs, WHP)

• Lengo-2 appraisal well planned for Q1/13 underway

• AWE pursuing early-mover advantage in shale

21AAL acquisition provides an exciting platform for g rowth in Asia

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Ande Ande Lumut – project overview

Subsurface characteristics• Estimated 76 million barrels recoverable

oil (26% recovery factor)

• Oil column: up to 36 metres

• Oil characteristics (heavy crude)

− ~15.5 deg API gravity; and

− 30 centipoise viscosity

• Asian heavy crude historically valued at a small discount to Brent - currently trading at premium post Japan Tsunami

Engineering features• FPSO bridge linked to a Well Head

Platform

• Around 40 horizontal development wells

• Electric Submersible Pumps (ESPs)

Project will add 43 million barrels (net) oil reser ves at final investment decision 22

Ande Ande Lumut Development Concept

Source: Genting POD

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Ande Ande Lumut – capex & farm down

Capital expenditure• Project POD requires capex of

approximately $600 million plus leased FPSO

• Minor expenditure in FY2012-13 comprising staffing, WHP FEED (now bidding), FPSO Design Competition, engineering, subsurface

• Material capex not required until after Final Investment Decision (FID)

• Bulk of capex is development drilling (up to two thirds) which will become self funding after first oil

Farm down• Farm down up to 50% prior to FID;

targeting end 1H13

• Good interest from potential investors

• FID 3Q13 and First Oil before end 2015

AWE capital requirements can be funded from balance sheet & future operating cash flows 23

FPSO Concept

Source: Genting POD

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Ande Ande Lumut – current status

• Recruitment of key people for AAL project team completed

• Preliminary design work on FPSO and WHP completed

• WHP FEED currently bidding

• FPSO design competition tender documents completed and Tender Plan submitted for approval

• AWE geological modelling and engineering studies will assist in designing optimal reservoir development:

− Optimal number of wells

− Longer reach horizontal sections with ESP’s

− Improved completion design

− Well head platform optimisation

Development work targeting improved oil recovery an d economics 24

AWE Indonesian team

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Strategic initiatives = rebalanced portfolio

Improved portfolio balance by product and geography 25

Net 2P Reserves(as at 30 June 2011)

Net 2P Reservesplus AAL Resource

(as at 30 June 2012)

Sales Gas, 64%

Sales Gas, 34%

LPG, 8%

LPG, 6%

Condensate, 15%

Condensate, 10%

Oil, 13%

Oil, 50%

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Note: Prior to sale of 11.25% of BassGas Project

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AWE is well positioned for growth

Strong core business performance in FY 2011-12• 4.7 million BOE production (including 6+ months shut-down at BassGas)

• $298.4 million sales revenue

• $188.7 million EBITDAX

• $300 million debt refinancing demonstrates cash flow strength

• 31% growth in total Reserves and Resources

Conventional oil and gas growth• AAL development project

• Lengo and Anambas gas appraisal

• Trefoil gas discovery

Unconventional gas (and liquids) growth• Sugarloaf AMI – tighter well spacing and accelerated drilling

• Onshore Perth Basin tight gas and shale gas testing program – encouraging results

• Indonesian joint study areas for shale gas

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AppendixFY2011-12 financials, reserves & resources

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2011-2012 FY earnings breakdown

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Segmental reporting

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Cashflow analysis

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2P reserves as at June 2012

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BassGas

Otway Basin

Cliff Head

Onshore PB

Tui

Sugarloaf

Project/Area Equity 2P Reserves(million BOE)

BassGas 46.25% 28.3

Otway Basin 25.0% 9.3

Cliff Head 57.5% 3.3

Onshore PB 33-100% 2.4

Tui 42.5% 3.1

Sugarloaf 7.5%* 9.7

Total 56.1* Net Revenue Interest, post Royalty (Working Interest 10%)

Strong and sustainable operating cash flow from exi sting 2P reserves 31

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2C resources as at June 2012

Project/Area Equity 2C Resources(million BOE)

Bass Basin 44.75 - 46.25% 37.3

Otway Basin 25.0% 4.8

Cliff Head 57.5% 1.2

Onshore PB 50-100% 8.2

Tui 42.5% 1.3

Sugarloaf 7.5%* 6.3

Ande Ande Lumut 100% 43.0

Other Indonesia 42.5-100% 30.9

Total 133.0

Slide 32

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1.2 8.2

1.3 6.3

43.0

30.9

Bass Basin

Otway Basin

Cliff Head

Onshore PB

Tui

Sugarloaf

AAL

Other Indonesia

* Net Revenue Interest, post Royalty (Working Interest 10%)

Total oil and gas resources up 71% 32

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Domestic gas price upside

• 46% of AWE’s Australian 2P gas reserves and 74% of 2P+2C gas resources are uncontracted

• 31 million BOE 2P Australian gas reserves

• Additional 34 million BOE Australian 2C gas resources

• AWE is well placed to take advantage of future gas price opportunities

Substantial uncontracted domestic gas position with exposure to gas price growth 33

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AWE Net Australian Sales Gas Production Forecast (average TJ per day)

2P Reserves - Contracted 2P Reserves - Uncontracted

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