For personal use only - ASXThe group’s Blue Ridge Dome 1P reserves increased by 127% to 28.1 million barrels. The group’s Blue Ridge Dome 2P reserves increased by 39% to 72.8 million

Maverick Drilling & Exploration Limited ABN 48 128 429 128 P + 1 281 416 8575 F +1 281 605 5046

E [email protected] W www.maverickdrilling.com

Level 11, 66 Eagle Street, Brisbane QLD 4000

Company Announcements

Australian Stock Exchange Limited

Level 4

20 Bridge Street

Sydney NSW 2000

Half-year ended 31 December 2011

Please find attached the following documents relating to Maverick Drilling & Exploration

Limited’s results for the half-year ended 31 December 2011:

1. ASX Appendix 4D

2. Interim report

Yours faithfully

Andrew Crawford

Company Secretary

Maverick Drilling & Exploration Limited

24 February 2012

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RESULTS FOR ANNOUNCEMENT TO THE

MARKET – APPENDIX 4D

Entity Maverick Drilling & Exploration Limited

ABN 48 128 429 158

Half-year ended 31 December 2011

Results for announcement to the market

Current period

Revenue from ordinary activities up 191% to USD 10,833,000

Profit/(loss) from ordinary activities after

tax attributable to members

up

9,466%

to

USD 3,922,000

Net profit/(loss) for the period

attributable to members

up

1,451%

to

USD 5,366,000

Dividends No dividends were paid or proposed to members during the half-year ended 31 December

2011.

Brief explanation of any of the figures reported above The key driver of the groups increased revenue and profit was the increased production

revenue from Blue Ridge Dome oil sales. Monthly production over the period is shown in the

table below. Additional information on the operations of the group for the half-year ended

31 December 2011 is included in the attached Interim Report.

Month Gross Production Average BOPD Maverick’s Net Oil

Cheque

July 2011 21,649 698 USD 1,469,000

August 2011 21,284 687 USD 1,292,000

September 2011 22,111 737 USD 1,376,000

October 2011 22,202 716 USD 1,555,000

November 2011 21,182 706 USD 1,628,000

December 2011 23,680 764 USD 1,767,000

Net tangible asset backing

31 December 2011 31 December 2010

Net tangible asset backing per ordinary

share

USD 0.09 USD 0.05

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Maverick Drilling & Exploration Limited ABN 48 128 429 158

Interim report for the half-year ended 31 December 2011

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Maverick Drilling & Exploration Limited ABN 48 128 429 158 Interim report – 31 December 2011 Contents

-1- Maverick Drilling & Exploration Limited

Page

Directors' report 2 Interim financial report Consolidated income statement 5 Consolidated statement of comprehensive income 6 Consolidated balance sheet 7 Consolidated statement of changes in equity 8 Consolidated statement of cash flows 9 Notes to the consolidated financial statements 10 Directors' declaration 14 Independent auditor's review report to the members 15

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2011 and any public announcements made by Maverick Drilling & Exploration Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

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Maverick Drilling & Exploration LimitedDirectors' report

31 December 2011


DIRECTORS' REPORT

Your directors present their report on the consolidated entity (referred to hereafter as the group) consisting of Maverick Drilling & Exploration Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2011.

DIRECTORS The following persons were directors of Maverick Drilling & Exploration Limited during the whole of the half-year and up to the date of this report:

D D Henrich R B Clarke B J Simmons L A Clarke

PRESENTATION CURRENCY Items included in the directors’ report and financial statements of the group are presented in US dollars unless otherwise stated.

REVIEW OF OPERATIONS The directors provide the following comments on the operations of the group for the half-year ended 31 December 2011.

Operations

During the half-year the group delivered a profit before income tax of $5,366,000 (2010: $346,000), an increase of 1,451% from the prior period. This was driven by increased revenue of $10,833,000 (2010: $3,728,000), an increase of 191% from the prior period.

The group achieved drilling success with 17 of the 19 wells drilled on Blue Ridge Dome in the half-year period expected to be oil producers.

The group drilled its first well on Nash Dome in November 2011. The well encountered over 460 feet of formations with high gravity oil shows in the cores. In January 2011 this well was completed and is currently producing oil.

The group continued to increase its average monthly production over the half-year period with production in December 2011 averaging 764 BOPD. In addition, the group reach a production milestone with 5 of the last 10 days of December 2011 having daily production of over 1,000 BOPD which was in part due to initial flush production on newly completed wells.

From 1 October 2011, the group started to receive an increased price for its oil produced from Blue Ridge Dome. The net effect of this pricing uplift is in excess of $10 per barrel compared to the price previously received. The increase is the result of strong demand for Maverick’s high naphthenic crude combined with Maverick’s crude buyer recognising its increasing production and future drilling program having the potential to provide a sustained and increasing stream of this specialty crude.

Subsequent to 31 December 2011, production has commenced from Maverick’s first Boling Dome well, the Tabor #272.

Oil properties

During the half-year period the group acquired an additional 167 net acres on the Blue Ridge Dome (31 December 2011: 1,660 acres), 1,962 net acres on Boling Dome (31 December 2011: 4,439 acres) and 2,068 net acres on Nash Dome (31 December 2011: 2,740 acres).

The group also increased its net acreage on the Edwards Reef prospect by 219 net acres to 489 net acres.

Oil reserves

The increase in the group’s Blue Ridge Dome net acreage along with the results of the ongoing drilling program lead to a significant upgrade to the group’s Blue Ridge Dome reserves. The reserves reflect no barrels equivalent in natural gas and are all true liquid oil barrels.

The group’s Blue Ridge Dome 1P reserves increased by 127% to 28.1 million barrels.

The group’s Blue Ridge Dome 2P reserves increased by 39% to 72.8 million barrels.

The group’s Boling Dome and Nash Dome acreage is still to be independently evaluated and assigned reserves.

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Maverick Drilling & Exploration LimitedDirectors' report

31 December 2011


Financial position

The group’s financial position continued to strengthen over the period through the development of increased Blue Ridge Dome production which will deliver future cash flows.

During the period the group continued to utilise the conditional credit facility from Texoz Holdings Pty Limited to fund the acquisition of acreage on both Boling Dome and Nash Dome.

OUTLOOK

The groups key goals over the next 12 months include:

Operations

Continue to develop Blue Ridge Dome, Boling Dome and Nash Dome to increase oil production from these properties.

Continue to deliver a profit to shareholders.

Oil properties and reserves

Continue to expand acreage on Blue Ridge Dome, Boling Dome and Nash Dome.

Continue to identify and acquire new acreage in the Texas Gulf Coast region.

Drill occasional wildcat targets while primarily focusing on existing field development.

Consider all partnering opportunities.

Have independent reserve studies completed on Boling Dome and Nash Dome.

Increase 1P and 2P reserves.

COMPETENT PERSON STATEMENT The evaluation of reserves referred to in the review of operations was undertaken by Mr Richard Pomrenke of Energy Recovery Concepts, LLC in accordance with the Society of Petroleum Engineers Petroleum Resource Management System (SPE-PRMS) 2007. The work carried out by Mr Pomrenke included the assessment of reserves on new acreage acquired by Maverick on Blue Ridge Dome and data from Maverick’s drilling program. The assessment of reserves was conducted on a similar basis to that set out in Mr Pomrenke’s independent reserve report included in Maverick’s IPO prospectus dated 2 July 2010. The reserves estimates are consistent with the definitions of Proved and Probable hydrocarbon reserves defined in the Australian Stock Exchange (ASX) Listing Rules. Mr Pomrenke is a qualified person as defined in ASX Listing Rule 5.11 and has consented to the use of the reserves figures in this report in the form and context in which they appear.

AUDITORS INDEPENDENCE DECLARATION A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4.

ROUNDING OF AMOUNTS The group is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the ''rounding off'' of amounts in the directors' report and financial report. Amounts in the directors' report and financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

This report is made in accordance with a resolution of directors.

D D Henrich Director

Houston, Texas 23 February 2012

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Maverick Drilling & Exploration LimitedConsolidated Income statement

For the half-year ended 31 December 2011

Half-year 2011 2010

Notes $'000 $'000

Revenue from continuing operations 3 10,509 3,728

Other income 324 - Consumables and external services used (1,684) (815) Employee benefits expense (1,266) (676) Depletion expense (616) (150) Depreciation and amortisation expense (663) (496) Impairment of property, plant and equipment - (149) Professional fees (330) (291) Insurance expense (343) (208) State and local tax expense (24) (45) Other expenses (531) (240) Finance costs (10) (312) Profit before income tax

5,366 346

Income tax expense (1,444) (305) Profit from continuing operations

3,922 41

Profit from discontinued operations - - Profit for the year 3,922 41

Profit is attributable to: Owners of Maverick Drilling & Exploration Limited 3,922 41 Non-controlling interests - -

3,922 41

Cents Cents Earnings per share for profit from continuing operations attributable to the ordinary equity holders of the company: Basic earnings per share 1.05 0.00 Diluted earnings per share 1.05 0.00

Earnings per share for profit attributable to the ordinary equity holders of the company: Basic earnings per share 1.05 0.00 Diluted earnings per share 1.05 0.00

The above consolidated income statement should be read in conjunction with the accompanying notes.

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Maverick Drilling & Exploration LimitedConsolidated statement of comprehensive income


Half-year 2011 2010

Notes $'000 $'000

Profit for the year 3,922 41

Other comprehensive income for the year, net of tax

- -

Total comprehensive income for the year 3,922 41

Total comprehensive income for the year is attributable to:

Owners of Maverick Drilling & Exploration Limited 3,922 41 Non-controlling interests - -

3,922 41

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

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Maverick Drilling & Exploration LimitedConsolidated balance sheet

As at 31 December 2011

31 December 30 June 2011 2011

Notes $'000 $'000

ASSETS Current assets Cash and cash equivalents 8,877 8,397 Trade and other receivables 2,444 2,662 Inventories 915 1,378 Total current assets 12,236 12,437

Non-current assets Receivables 826 786 Property, plant and equipment 13,018 12,362 Oil and gas assets 4 25,556 17,612 Exploration and evaluation assets 346 855 Intangible assets 3,759 3,822 Total non-current assets 43,505 35,437

Total assets 55,741 47,874

LIABILITIES Current liabilities Trade and other payables 1,249 857 Borrowings 8,576 574 Current tax liabilities 12 124 Total current liabilities 9,837 1,555

Non-current liabilities Other payables - 14 Borrowings 1,873 7,639 Deferred tax liabilities 7,324 5,881 Total non-current liabilities 9,197 13,534

Total liabilities 19,034 15,089

Net assets 36,707 32,785

EQUITY Contributed equity 35,101 35,101 Retained earnings 1,606 (2,316) Capital and reserves attributable to owners of Maverick Drilling & Exploration Limited 36,707 32,785

Non-controlling interests - -

Total equity 36,707 32,785

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

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Maverick Drilling & Exploration LimitedConsolidated statement of changes in equity



Attributable to owners of Maverick Drilling &

Exploration Limited

Contribut-ed equity Reserves

Retained earnings Total

Non- controlling interests

Total equity

Notes $'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 July 2010 2,942 - (4,483) (1,541) - (1,541) Total comprehensive income for the year - - 41 41 - 41

Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax 22,172 - - 22,172 - 22,172

22,172 - - 22,172 - 22,172

Balance at 31 December 2010

25,114 - (4,442) 20,672 - 20,672

Balance at 1 July 2011 35,101 - (2,316) 32,785 - 32,785 Total comprehensive income for the year - - 3,922 3,922 - 3,922

Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax - - - - - -

- - - - - -

Balance at 31 December 2011

35,101 - 1,606 36,707 - 36,707

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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Maverick Drilling & Exploration LimitedConsolidated statement of cash flows



Half-year 2011 2010

Notes $'000 $'000

Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) 10,502 3,625 Payments to suppliers and employees (inclusive of goods and services tax) (4,345) (2,633) 6,157 992 Insurance recovery relating to rig damage 324 - Interest paid (25) (1,966) Income taxes paid (112) - Net cash (outflow) inflow from operating activities 6,344 (974)

Cash flows from investing activities Payments for property, plant and equipment (1,235) (1,165) Payments for exploration and evaluation assets (92) (260) Payments for oil and gas assets (7,122) (2,546) Repayment of loans from related parties - 2 Interest received 18 13 Net cash (outflow) inflow from investing activities

(8,431) (3,956)

Cash flows from financing activities Proceeds from issues of shares - 7,815 Proceeds from borrowings 2,823 598 Share issue transaction costs - (747) Repayment of borrowings (217) (311) Net cash inflow (outflow) from financing activities 2,606 7,355

Net increase (decrease) in cash and cash equivalents 519 2,425 Cash and cash equivalents at the beginning of the financial period 8,358 745 Cash and cash equivalents at end of the financial period 5 8,877 3,170

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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Maverick Drilling & Exploration LimitedNotes to the financial statements

31 December 2011


1 Basis of preparation of half-year report

This general purpose interim financial report for the half-year reporting period ended 31 December 2011 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2011 and any public announcements made by Maverick Drilling & Exploration Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

2 Segment information

(a) Description of segments

Management has determined the group’s operating segments based on the reports reviewed by the board to make strategic decisions.

The board considers the business from both a product and a geographic perspective and has identified two reportable segments. The first as an operator of oil leases on the Blue Ridge Dome and the second as a shallow to mid range onshore contract oil and gas driller in the Gulf Coast region of the United States.

(b) Segment information provided to the board

The segment information provided to the board for the reportable segments for the half-year ended 31 December 2011 is as follows:

Half-year 2011

Operator of oil leases

$’000

Contract oil and gas driller $’000

Total $’000

Total segment revenue 9,162 5,320 14,482 Inter-segment revenue - (3,720) (3,720) Revenue from external customers

9,162

1,600 10,762

Adjusted EBITDA 7,164

882 8,046

Depreciation expense (24) (610) (634) Income tax expense (1,933) (208) (2,141)

The segment information provided to the board for the reportable segments for the half-year ended 31 December 2010 is as follows:

Half-year 2010


$’000


Total $’000

Total segment revenue 2,716 2,737 5,453 Inter-segment revenue - (1,738) (1,738) Revenue from external customers

2,716

999 3,715

Adjusted EBITDA 2,122

387 2,509

Depreciation expense - (474) (474) Income tax expense (721) 32 (689)

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31 December 2011


2 Segment information (continued)

(b) Segment information provided to the board (continued)

Total segment assets


$’000


Total $’000

Total segment assets at 31 December 2011 44,302

25,020 69,322

Total segment assets at 30 June 2011 30,182

21,003 51,185

The board assesses the performance of the operating segments based in a measure of adjusted EBITDA. This measurement basis excludes the effects of non-recurring expenditure from the operating segments such as restructuring costs, legal expenses and goodwill impairments when the impairment is the result of an isolated, non-recurring event. Furthermore, the measure excludes the effects of equity-settled share-based payments and unrealised gains/losses on financial instruments. Interest income and expenditure are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the group.

A reconciliation of adjusted segment EBITDA to operating profit before income tax is provided as follows:

Half-year 2011 2010

$'000 $'000

Adjusted segment EBITDA 8,046 2,509 Inter-segment eliminations (1,757) (958) Rental income 6 - Miscellaneous income 7 - Interest revenue 58 13 Depreciation and amortisation (663) (496) Finance costs (10) (312) Impairment of property, plant and equipment - (149) Employee benefits expense (77) (58) Professional fees (78) (77) Other expenses (166) (126) Profit before income tax from continuing operations 5,366 346

The amounts provided to the board with respect to total assets are measured in a manner consistent with that of the financial statements. These assets are allocated based on the operations of the segment and the physical location of the asset.

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3 Profit for the half-year

Half-year 2011 2010

$'000 $'000

Profit for the half-year includes the following items that are significant because of their nature, size or incidence: Revenues Revenue from continuing operations

Sale of goods 9,087 2,642 Sale of services 1,400 1,073 Interest from financial assets not at fair value through profit or loss 22 13

Revenues from continuing operations 10,509 3,728

Other income Insurance recovery relating to rig damage 324 -

Total other income 324 -

Expenses Finance costs

Interest and finance charges paid/payable for financial liabilities not at fair value through profit or loss – charged on convertible notes - 287 Interest and finance charges paid/payable for financial liabilities not at fair value through profit or loss – other 10 25

Finance costs expensed 10 312

4 Oil and gas assets

Since July 2011 the group has drilled 19 new wells on Blue Ridge Dome as well as drilling its first well on Nash Dome.

The group has also acquired an additional 167 net acres on the Blue Ridge Dome (31 December 2011: 1,660 acres), 1,962 net acres on Boling Dome (31 December 2011: 4,439 acres) and 2,068 net acres on Nash Dome (31 December 2011: 2,740 acres) in the period from 1 July 2011 to 31 December 2011.

Expenditure on these lease acquisitions including legal fees and title work totalled $2,537,000. In addition to the cash component, ongoing drilling commitments must be met by the group in respect of these new leases. During the period the 30 June 2011 balance of Boling Dome and Nash Dome lease acquisition costs of $592,000 was transferred from exploration and evaluation assets to oil and gas assets. The balance of the movement in oil & gas assets related to the development of the Blue Ridge Dome, Boling Dome and Nash Dome fields adjusted by a Blue Ridge Dome production based depletion charge of $616,000.

5 Reconciliation of cash as shown in the cash flow statement

At 31 December 2011 cash at the end of the financial period as shown in the cash flow statement was made up of cash and cash equivalents of $8,877,000.

At 31 December 2010 cash at the end of the financial period as shown in the cash flow statement was made up of cash and cash equivalents of $3,184,000 and bank overdrafts disclosed in current borrowings of $(14,000). F

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31 December 2011


6 Related party transactions

(a) Loans from key management personnel

During the period the 30 June 2011 balance of promissory notes payable to D D Henrich (Director) and G Henrich of $7,200,000 was offset against a $326,000 receivable balance from D D Henrich (Director) resulting in a balance payable of $6,874,000. During the period, this remaining balance was transferred from non-current borrowings to current borrowings.

A director, L A Clarke and executive A J Crawford are both minority unit holders of Texoz Holdings Unit Trust. Texoz Holdings Pty Ltd acts as trustee of Texoz Holdings Unit Trust. Maverick Production Company has a conditional credit facility of up to USD 5 million from Texoz Holdings Unit Trust for the purpose of acquiring oil and gas leases and expanding its leasehold and prospect inventory. The agreement for this finance was based on normal commercial terms and conditions. During the period this facility was drawn down by $2,751,000 with gross repayments of $31,000.

(b) Loans to key management personnel

During the period the loan from the group to D D Henrich of $326,000 was offset against a portion of the promissory notes payable to D D Henrich and G Henrich.

(c) Other transactions with key management personal

A director, L A Clarke, is the director of Lee Clarke Pty Limited. Lee Clarke Pty Limited employees A J Crawford the company secretary and chief financial officer of the parent entity. A J Crawford’s services to the group are charged on an hourly rate by Lee Clarke Pty Limited. Lee Clarke Pty Limited then remunerates A J Crawford. The total charges from Lee Clarke Pty Limited to the group in relation to the time of A J Crawford are disclosed in the remuneration report which is included as part of the annual report. The agreement for these services is based on normal commercial terms and conditions.

A director, L A Clarke, is a unit holder in Salt Dome Unit Trust. Salt Dome Unit Trust owns overriding royalty interests ranging from 0.15% to 1.25% covering the Gordon, Lila Hill and Bute Blue Ridge Dome leases operated by Maverick.

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Maverick Drilling & Exploration LimitedDirectors' declaration

31 December 2011 In the directors' opinion:

(a) the financial statements and notes set out on pages 5 to 13 are in accordance with the Corporations Act 2001, including:

(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

(ii) giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and of their performance for the half-year ended on that date; and

(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable, and

This declaration is made in accordance with a resolution of the directors.

D D Henrich Director

Houston 23 February 2012

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Documents

For personal use only - ASXThe group’s Blue Ridge Dome 1P reserves increased by 127% to 28.1 million barrels. The group’s Blue Ridge Dome 2P reserves increased by 39% to 72.8 million