Glossary

2D Two-dimensional (seismic).

2P Proved and probable reserves.

3D Three-dimensional (seismic).

$ or cents Units of Australian currency.

AIFRS Australian equivalents to International Financial Reporting Standards.

Appraisal well A well drilled to confirm the size or quality of a hydrocarbon discovery.

Associated gas Natural gas found in association with oil, either dissolved in the oil or as a cap of free gas above the oil.

ASX Australian Stock Exchange Limited.

ATO Australian Taxation Office.

Australian GAAP Australian Generally Accepted Accounting Principles.

Barrel or BBL Barrel of oil inclusive of condensate. A quantity of 42 United States gallons (159 litres).

Basin An ancient natural depression on the earth’s surface in which sediments eroded from higher surrounding ground levels accumulated and were preserved.

BCF One billion cubic feet of natural gas i.e. 1,000 million cubic feet (equivalent to approximately 28.3 million cubic metres) of gas.

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

Condensate Hydrocarbons which are predominantly pentane and heavier compounds which spontaneously separate out from natural gas at the well head and condense to liquid.

Contingent resources As defined by the SPE/WPC/AAPG Guidelines for the Evaluation of Petroleum Reserves and Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable.

Development The drilling of wells, construction and installation of infrastructure sufficient to allow the production and sale of petroleum fluids.

Deviated well A well whose path has been deliberately deviated from the vertical.

Discovery The first successful well on a new prospective reservoir structure.

EPBC Environmental Protection and Biodiversity Conservation Act 1999.

Estimate (Best) The term “Best Estimate” is the estimate considered to be the closest to the quantity that will actually be recovered from the accumulation between the date of the estimate and the time of abandonment.

Estimate (Low and High) The terms “Low Estimate” and “High Estimate” should provide a reasonable assessment of the range of uncertainty in the Best Estimate.

Exploration The process of identifying prospective hydrocarbon regions and structures, mainly by reference to regional and specific geochemical, geological and geophysical surveys.

Farm-out The commercial arrangement in which an incoming participant earns an interest in a permit by funding a proportion of the exploration costs, while the participant owning the permit pays a reduced contribution.

FEED Front end engineering and design.

FID Final investment decision.

Field An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area although it may refer to both the surface and underground productive formation.

Gas in Place (“GIP”)/ Oil in Place (“OIP”) An estimated measure of the total amount of gas (or oil) contained in a reservoir and, as such, a higher figure than recoverable gas (or oil)

Group or Consolidation Nexus Energy Limited and its subsidiaries.

GST Australian Goods and Services Tax.

GWC Gas water contact.

HSE Health, safety and environment.

HSEC Health, safety, environment and community.

Hydrocarbon Organic compounds of carbon and hydrogen. Hydrocarbons include natural gas, liquefied petroleum gas, crude oil and condensate.

km Kilometre.

km² Square kilometres.

Lead A potential petroleum trap which has been identified but has not been adequately defined.

LNG Liquefied natural gas.

m Metres.

Market capitalisation  The product of a company’s share price multiplied by the total number of shares issued by that company.

Mcf Thousand cubic feet.

MM Million.

MMscf/d Millions of standard cubic feet per day = 28,317 cubic metres per day

MMstb Millions of stock tank barrels

Mscf/d Thousands of standard cubic feet per day = 28.317 cubic metres per day.

Nexus, Nexus Energy and Company Nexus Energy Limited.

NW Northwest.

OIT Original IT Investments Pty Ltd.

Operator One of the companies in a joint venture which has been appointed to carry out all operations on behalf of the other joint venture participant/s.

Pay zone A formation containing producible hydrocarbons.

Permit A hydrocarbon tenement, lease, licence or block.

Play A geological concept which, if proven correct, could result in the discovery of hydrocarbons.

Probable Means in respect of reserves, those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves.

Prospect A geological or geophysical anomaly that has been surveyed and defined, usually by seismic data, to the degree that its configuration is fairly well established, and on which further exploration such as drilling can be recommended.

Proved Means in respect of reserves, those quantities of oil and gas which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods and government regulations.

PSLA Petroleum (Submerged Lands) Act 1967.

Quartz A mineral composed of silicon dioxide.

Recoverable gas An estimate measure of the total amount of gas which could be brought to the surface from a given reservoir - this is usually in the order of 70 – 80% of the estimated gas in place.

Reserves Quantities of economically recoverable hydrocarbons estimated to be present within a trap.

Reservoir A porous rock formation with a geological seal forming a trap for producible hydrocarbons.

Rig The permanent equipment needed for drilling a well. It includes the onshore and offshore vehicles, mobile platforms or vessel on which the equipment is stored.

Risk An expression of uncertainty relating to the presence of principal geological factors controlling hydrocarbon accumulation.

Salt dome A dome shaped geologic structure formed by the intrusion of salt into overlying sediments.

Sand stone A sedimentary rock composed predominantly of sand sized grain, usually quartz.

Seismic survey A type of geophysical survey where the travel times of artificially created seismic waves are measured as they are reflected in a near-vertical sense back to the surface from subsurface boundaries. This data is typically used to determine the depths to the tops of stratigraphic units and in making subsurface structural contour maps and ultimately in delineating prospective structures.

Source kitchen A place where rocks, usually claystone or coal that has generated or is in the process of generating significant quantities of hydrocarbons, may then migrate into different porous formations.

Spud To start drilling a new well.

sq km or km² Square kilometres.

Stb/d Stock tank barrels per day

Structure A geological formation of sedimentary rocks which, if sealed against leakage, could form a potential trap for migrating hydrocarbons.

Sub-sea well A well with a wellhead installed on the sea floor and controlled remotely from a platform, a floating production facility or land.

SW Southwest

Tcf Trillion cubic feet of gas i.e. 1,000 billion cubic feet of gas.

Tie-in The action of connecting one pipeline to another or equipment.

US$ United States dollars.