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Annual Report – Rev 1

1st January 2012 – 31st December 2012

Petroleum Production Licences PPL 203 (Acrasia) PPL 207 (Worrior) PPL 208 (Derrilyn) PPL 209 (Harpoono) PPL 211 (Reg Sprigg West) PPL 215 (Toparoa) PPL 217 (Arwon) PPL 218 (Arwon East) PPL 221 (Padulla) PPL 213 (Mirage) PPL 214 (Ventura)

15th August 2012 – 31st December 2012

Petroleum Production Licence PPL 240 (Snatcher)

16th August 2012 – 31st December 2012

Petroleum Production Licence PPL 241 (Vintage Crop)

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CONTENTS Page No.

PPL 203 (ACRASIA) ................................................................................................... 7 1 INTRODUCTION ................................................................................................. 7 2 PERMIT SUMMARY............................................................................................ 7 3 REGULATED ACTIVITIES .................................................................................. 7

Drilling and Related Activities ............................................................................... 7 Seismic Data Acquisition ...................................................................................... 7 Seismic Data Processing and Reprocessing ........................................................ 7 Geochemical, Gravity, Magnetic and other surveys ............................................. 7 Production and Processing ................................................................................... 7

4 COMPLIANCE ISSUES ....................................................................................... 8 Licence and Regulatory Compliance .................................................................... 8 Compliance with Statement of Environmental Objectives ................................... 9 Management System Audits ............................................................................... 10 Report and Data Submissions ............................................................................ 11 Incidents ............................................................................................................. 11 Threat Prevention ............................................................................................... 12

5 EXPENDITURE STATEMENT .......................................................................... 12 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 12 PPL 207 (WORRIOR) ............................................................................................... 13 1 INTRODUCTION ............................................................................................... 13 2 PERMIT SUMMARY.......................................................................................... 13 3 REGULATED ACTIVITIES ................................................................................ 13

Drilling and Related Activities ............................................................................. 13 Seismic Data Acquisition .................................................................................... 13 Seismic Data Processing and Reprocessing ...................................................... 13 Geochemical, Gravity, Magnetic and other surveys ........................................... 13 Production and Processing ................................................................................. 13

4 COMPLIANCE ISSUES ..................................................................................... 15 Licence and Regulatory Compliance .................................................................. 15 Compliance with Statement of Environmental Objectives ................................. 15 Management System Audits ............................................................................... 20 Incidents ............................................................................................................. 21

5 EXPENDITURE STATEMENT .......................................................................... 21 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 22 PPL 208 (DERRILYN) .............................................................................................. 23 1 INTRODUCTION ............................................................................................... 23 2 PERMIT SUMMARY.......................................................................................... 23 3 REGULATED ACTIVITIES ................................................................................ 23

Drilling and Related Activities ............................................................................. 23 Seismic Data Acquisition .................................................................................... 23 Seismic Data Processing and Reprocessing ...................................................... 23 Geochemical, Gravity, Magnetic and other surveys ........................................... 23 Production and Processing ................................................................................. 23 Pipeline/Flowline Construction and Operation .................................................... 24 Preliminary Survey Activities .............................................................................. 24

4 COMPLIANCE ISSUES ..................................................................................... 24 Licence and Regulatory Compliance .................................................................. 24

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Management System Audits ............................................................................... 24 Report and Data Submissions ............................................................................ 24 Incidents ............................................................................................................. 24 Threat Prevention ............................................................................................... 24

5 EXPENDITURE STATEMENT .......................................................................... 25 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 25 PPL 209 (HARPOONO)............................................................................................ 26 1 INTRODUCTION ............................................................................................... 26 2 PERMIT SUMMARY.......................................................................................... 26 3 REGULATED ACTIVITIES ................................................................................ 26

Drilling and Related Activities ............................................................................. 26 Seismic Data Acquisition .................................................................................... 26 Seismic Data Processing and Reprocessing ...................................................... 26 Geochemical, Gravity, Magnetic and other surveys ........................................... 26 Production and Processing ................................................................................. 26 Pipeline/Flowline Construction and Operation .................................................... 27 Preliminary Survey Activities .............................................................................. 27

4 COMPLIANCE ISSUES ..................................................................................... 27 Licence and Regulatory Compliance .................................................................. 27 Compliance with Statement of Environmental Objectives ................................. 28 Management System Audits ............................................................................... 33 Report and Data Submissions ............................................................................ 33 Incidents ............................................................................................................. 34 Threat Prevention ............................................................................................... 35

5 EXPENDITURE STATEMENT .......................................................................... 35 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 35 PPL 211 (REG SPRIGG WEST) .............................................................................. 36 1 INTRODUCTION ............................................................................................... 36 2 PERMIT SUMMARY.......................................................................................... 36 3 REGULATED ACTIVITIES ................................................................................ 36

Drilling and Related Activities ............................................................................. 36 Seismic Data Acquisition .................................................................................... 36 Seismic Data Processing and Reprocessing ...................................................... 36 Geochemical, Gravity, Magnetic and other surveys ........................................... 36 Production and Processing ................................................................................. 36 Pipeline/Flowline Construction and Operation .................................................... 37 Preliminary Survey Activities .............................................................................. 37

4 COMPLIANCE ISSUES ..................................................................................... 37 Licence and Regulatory Compliance .................................................................. 37 Management System Audits ............................................................................... 37 Report and Data Submissions ............................................................................ 37 Incidents ............................................................................................................. 37 Threat Prevention ............................................................................................... 37

5 EXPENDITURE STATEMENT .......................................................................... 38 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 38 PPL 213 (MIRAGE) .................................................................................................. 39 1 INTRODUCTION ............................................................................................... 39 2 PERMIT SUMMARY.......................................................................................... 39 3 REGULATED ACTIVITIES ................................................................................ 39

Drilling and Related Activities ............................................................................. 39

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Seismic Data Acquisition .................................................................................... 39 Seismic Data Processing and Reprocessing ...................................................... 39 Geochemical, Gravity, Magnetic and other surveys ........................................... 39 Production and Processing ................................................................................. 39 Pipeline/Flowline Construction and Operation .................................................... 40

4 COMPLIANCE ISSUES ..................................................................................... 40 Licence and Regulatory Compliance .................................................................. 40 Compliance with Statement of Environmental Objectives ................................. 41 Management System Audits ............................................................................... 47 Report and Data Submissions ............................................................................ 48 Incidents ............................................................................................................. 48 Threat Prevention ............................................................................................... 48

5 EXPENDITURE STATEMENT .......................................................................... 48 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 48 PPL 214 (VENTURA) ............................................................................................... 49 1 INTRODUCTION ............................................................................................... 49 2 PERMIT SUMMARY.......................................................................................... 49 3 REGULATED ACTIVITIES ................................................................................ 49

Drilling and Related Activities ............................................................................. 49 Seismic Data Acquisition .................................................................................... 49 Seismic Data Processing and Reprocessing ...................................................... 49 Geochemical, Gravity, Magnetic and other surveys ........................................... 49 Production and Processing ................................................................................. 49 Pipeline/Flowline Construction and Operation .................................................... 50

4 COMPLIANCE ISSUES ..................................................................................... 50 Licence and Regulatory Compliance .................................................................. 50 Compliance with Statement of Environmental Objectives ................................. 51 Management System Audits ............................................................................... 57 Report and Data Submissions ............................................................................ 58 Incidents ............................................................................................................. 58 Threat Prevention ............................................................................................... 58

5 EXPENDITURE STATEMENT .......................................................................... 59 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 59 PPL 215 (TOPAROA) ............................................................................................... 60 1 INTRODUCTION ............................................................................................... 60 2 PERMIT SUMMARY.......................................................................................... 60 3 REGULATED ACTIVITIES ................................................................................ 60

Drilling and Related Activities ............................................................................. 60 Seismic Data Acquisition .................................................................................... 60 Seismic Data Processing and Reprocessing ...................................................... 60 Geochemical, Gravity, Magnetic and other surveys ........................................... 60 Production and Processing ................................................................................. 60 Pipeline/Flowline Construction and Operation .................................................... 61 Preliminary Survey Activities .............................................................................. 61

4 COMPLIANCE ISSUES ..................................................................................... 61 Licence and Regulatory Compliance .................................................................. 61 Management System Audits ............................................................................... 61 Report and Data Submissions ............................................................................ 61 Incidents ............................................................................................................. 61 Threat Prevention ............................................................................................... 61

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5 EXPENDITURE STATEMENT .......................................................................... 62 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 62 PPL 217 (ARWON- WEST) ...................................................................................... 63 1 INTRODUCTION ............................................................................................... 63 2 PERMIT SUMMARY.......................................................................................... 63 3 REGULATED ACTIVITIES ................................................................................ 63

Drilling and Related Activities ............................................................................. 63 Seismic Data Acquisition .................................................................................... 63 Seismic Data Processing and Reprocessing ...................................................... 63 Geochemical, Gravity, Magnetic and other surveys ........................................... 63 Production and Processing ................................................................................. 63 Pipeline/Flowline Construction and Operation .................................................... 64 Preliminary Survey Activities .............................................................................. 64

4 COMPLIANCE ISSUES ..................................................................................... 64 Licence and Regulatory Compliance .................................................................. 64 Compliance with Statement of Environmental Objectives ................................. 65 Management System Audits ............................................................................... 66 Report and Data Submissions ............................................................................ 67 Incidents ............................................................................................................. 67 Threat Prevention ............................................................................................... 67

5 EXPENDITURE STATEMENT .......................................................................... 67 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 67 PPL 218 (ARWON – EAST) ..................................................................................... 68 1 INTRODUCTION ............................................................................................... 68 2 PERMIT SUMMARY.......................................................................................... 68 3 REGULATED ACTIVITIES ................................................................................ 68

Drilling and Related Activities ............................................................................. 68 Seismic Data Acquisition .................................................................................... 68 Seismic Data Processing and Reprocessing ...................................................... 68 Geochemical, Gravity, Magnetic and other surveys ........................................... 68 Production and Processing ................................................................................. 68

4 COMPLIANCE ISSUES ..................................................................................... 69 Licence and Regulatory Compliance .................................................................. 69 Management System Audits ............................................................................... 69 Report and Data Submissions ............................................................................ 69 Incidents ............................................................................................................. 69 Threat Prevention ............................................................................................... 69

5 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 70 PPL 221 (PADULLA) ................................................................................................ 71 1 INTRODUCTION ............................................................................................... 71 2 PERMIT SUMMARY.......................................................................................... 71 3 REGULATED ACTIVITIES ................................................................................ 71

Drilling and Related Activities ............................................................................. 71 Seismic Data Acquisition .................................................................................... 71 Seismic Data Processing and Reprocessing ...................................................... 71 Geochemical, Gravity, Magnetic and other surveys ........................................... 71 Production and Processing ................................................................................. 71 Pipeline/Flowline Construction and Operation .................................................... 72 Preliminary Survey Activities .............................................................................. 72

4 COMPLIANCE ISSUES ..................................................................................... 73

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Licence and Regulatory Compliance .................................................................. 73 Compliance with Statement of Environmental Objectives ................................. 73 Management System Audits ............................................................................... 75 Report and Data Submissions ............................................................................ 75 Incidents ............................................................................................................. 75 Threat Prevention ............................................................................................... 75

5 EXPENDITURE STATEMENT .......................................................................... 76 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 76 PPL 240 (SNATCHER) ............................................................................................. 77 1 INTRODUCTION ............................................................................................... 77 2 PERMIT SUMMARY.......................................................................................... 77 3 REGULATED ACTIVITIES ................................................................................ 77

Drilling and Related Activities ............................................................................. 77 Seismic Data Acquisition .................................................................................... 78 Seismic Data Processing and Reprocessing ...................................................... 78 Geochemical, Gravity, Magnetic and other surveys ........................................... 78 Production and Processing ................................................................................. 78 Pipeline/Flowline Construction and Operation .................................................... 79

4 COMPLIANCE ISSUES ..................................................................................... 80 Licence and Regulatory Compliance .................................................................. 80 Compliance with Statement of Environmental Objectives ................................. 80 Management System Audits ............................................................................... 86 Report and Data Submissions ............................................................................ 87 Incidents ............................................................................................................. 89 Threat Prevention ............................................................................................... 90

5 EXPENDITURE STATEMENT .......................................................................... 90 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 90 PPL 241 (VINTAGE CROP) ..................................................................................... 91 1 INTRODUCTION ............................................................................................... 91 2 PERMIT SUMMARY.......................................................................................... 91 3 REGULATED ACTIVITIES ................................................................................ 91

Drilling and Related Activities ............................................................................. 91 Seismic Data Acquisition .................................................................................... 91 Seismic Data Processing and Reprocessing ...................................................... 91 Geochemical, Gravity, Magnetic and other surveys ........................................... 91 Production and Processing ................................................................................. 91 Pipeline/Flowline Construction and Operation .................................................... 92 Preliminary Survey Activities .............................................................................. 92

4 COMPLIANCE ISSUES ..................................................................................... 93 Licence and Regulatory Compliance .................................................................. 93 Compliance with Statement of Environmental Objectives ................................. 93 Management System Audits ............................................................................... 95 Report and Data Submissions ............................................................................ 95 Incidents ............................................................................................................. 95 Threat Prevention ............................................................................................... 95

5 EXPENDITURE STATEMENT .......................................................................... 95 6 ADDITIONAL INFORMATION FOR PRODUCTION LICENCE REPORTS ....... 95 APPENDIX 1 EXPENDITURE STATEMENT ........................................................ 96

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PPL 203 (ACRASIA) 1 Introduction Petroleum Production Licence (PPL) 203 was granted on 12th August 2003. The licence is located in the Cooper/Eromanga Basin, South Australia. This report details the production operations for the period 1st January 2012 – 31st December 2012, in accordance with Regulation 33 of the Petroleum and Geothermal Energy Act 2000. 2 Permit Summary For the duration of the reporting period, licencees for Petroleum Production Licence (PPL 203) were:

• Stuart Petroleum Pty Limited 75% • Mawson Petroleum Pty Ltd 25%

3 Regulated Activities Pursuant to Regulation 33(2)(a) of the Petroleum and Geothermal Energy Act 2000 Drilling and Related Activities No drilling or workover activities were conducted during the licence reporting period. Seismic Data Acquisition No seismic data acquisition was undertaken during the licence reporting period. Seismic Data Processing and Reprocessing No seismic data processing or reprocessing was undertaken during the licence reporting period. Geochemical, Gravity, Magnetic and other surveys No geochemical, gravity or magnetic or other surveys was undertaken during the licence reporting period. Production and Processing PPL 203 – Acrasia Maintenance Activities Routine maintenance activities with regard to rotating machinery and other fixed equipment were undertaken during the year:

• Firebreaks • Pond remediation and new booms installed

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• Significant earthworks completed (turkeys nest) and all bund walls remediated • Pipeline/Flowline inspections • Vessel inspections • Wellhead inspections • Water monitoring bores • Scaffolding inspections

Inspection and replacement of downhole jet pump equipment in the wells was undertaken by slickline operations during the year. Emergency Response Exercises An emergency response exercise was carried out at Acrasia on 11th October 2012. A live test of the man down process and how this is to be supported by the corporate office was conducted. Infrastructure Construction No activity. Equipment Upgrades No equipment upgrades were performed during the year. Production Testing Routine production tests on all producing wells and zones were performed throughout the year. Pressure build up surveys were conducted on various producing zones in the Acrasia 5 well during the year. Road, Track and/or borrow pit construction No new roads or borrow pits were constructed; however maintenance is ongoing for existing facilities. Produced formation water disposal Approximately 3,700 barrels of water per day were disposed of by shallow subsurface infiltration. 4 Compliance Issues Licence and Regulatory Compliance Pursuant to Regulations 33(2) (b) & (c) of the Petroleum and Geothermal Energy Act 2000 No licence non-compliances identified for PPL 203 No regulatory non- compliances identified for PPL 203. An SEO non-compliance with Objective 7 of Table 1 was identified for PPL 203. Further details are contained in Table 1 and Table 3.

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Compliance with Statement of Environmental Objectives Table 1 Environmental objectives in relation to the production of oil from the

Acrasia field

SEO for Petroleum Production at Acrasia field – November 2003

Objective Assessment Criteria Compliant / Non-Compliant

Comments

Objective 1: Avoid disturbance to sites of Aboriginal and non-indigenous heritage significance

All production and associated areas have been surveyed and any sites of Aboriginal or non-Aboriginal heritage identified Any identified cultural and heritage sites have been avoided

Compliant Clearance received from indigenous stakeholders prior to production activities No known non-indigenous heritage sites located near the facility

Objective 2: Minimise disturbance to vegetation and habitat

Includes : There is zero release of uncleaned production water beyond holding ponds There is zero tree or tall shrub removal at borrow pits

Compliant No uncleaned water released No trees or shrubs removed

Objective 3: Minimise soil impacts

Includes: No spills or leaks outside areas designed to contain them

Compliant One spill occurred within a bunded area designed to contain it.

Objective 4: Minimise disturbance to gibber surfaces

Includes: No spills or leaks outside areas designed to contain them Natural drainage line flows are not impeded by road crossings or other construction

Compliant One spill occurred within a bunded area designed to contain it. Routine road maintenance undertaken

Objective 5: Avoid disturbance to rare, endangered and vulnerable species

Includes: Any sites of rare, vulnerable and/or endangered species identified, flagged and subsequently avoided

Compliant No such species known to be present in licence area

Objective 6: Avoid impacts on high biological value or wilderness value areas

Includes: No spills or leaks outside areas designed to contain them

Compliant No high biological value areas within lease near access

Objective 7: Avoid flowline, process, storage and loading facility spills

Includes: No spills or leaks outside areas designed to contain them

Non-compliant One spill occurred within a bunded area designed to contain it. All flowlines laid above ground, supported, out of contact with soil to minimise corrosion issues

Objective 8: In the event of a process fluid spill, minimise impacts on biota, soils, surface water and groundwater

Includes: Formation, process or cleanup water only released to infiltration pit when no visible oil present (

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and remediation of oil-affected land to accepted Soil Health Index (SHI) levels

watercourses

Objective 12: Formation water cleaned to no visible oil (equivalent to approximately

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Report and Data Submissions Pursuant to Regulation 33(2) (e) of the Petroleum and Geothermal Energy Act 2000 Table 2 List of report and data submissions during current licence reporting year

Description of Report/Data Date Due Date Submitted Compliant / Non-Compliant

Monthly Production Reports – Acrasia 1, 2, 3, 4, 5 2 months from end of each reporting month Within 2 months of end of each reporting month

Compliant

PPL Combined Annual Report 2011 29/02/2012 29/02/2012 Compliant

Acrasia 3 Activity Notification - Workover - 12/04/2012 Compliant

Acrasia 1 Activity Notification - Workover - 12/04/2012 Compliant

Updated Acrasia 1 Workover AN - 18/04/2012 Compliant

Updated Acrasia 3 Workover AN - 18/04/2012 Compliant

Acrasia 1 MOC - Rig Change for Workover Activities - 28/08/2012

Compliant

Acrasia Water Monitoring Bores Activity Notification - 9/10/2012 Compliant

Acrasia Internal HSE MS Compliance Audit Report - 15/11/2012 Compliant

Incidents Pursuant to Regulation 33(2) (f) of the Petroleum and Geothermal Energy Act 2000 Table 3 List of incidents during current licence reporting year

Date/Time of Occurrence

Report Date Incident Type Affected area /volume

Description / Cause Remedial Action

30/08/2012 30/08/2012 Environmental 50L 2 Santos Operators from Bookabourdie came to Acrasia to open up the Reg Sprigg Inlet Isolation valve,to put Reg Sprigg into the Wash Tank. The temperature during the day was 30 Degrees. The 2 Santos operators carefully opened the valve very slowly to release pressure that had built up with thermal expansion through the day. 4 small spurts of oil was sent into the air above wash tank 3 and blew easterly towards the load out area.

Reported to DMITRE by Senex Management. Contaminated soil removed to be disposed of at approved facility Review process to bring Reg Sprigg lines back online after a period of being shut in. Other similar units checked and fuel line configuration changed.

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Threat Prevention Pursuant to Regulation 33(2) (g) of the Petroleum and Geothermal Energy Act 2000 No threats to facilities or activities which are not already covered in the Environmental Impact Reports. Fire breaks were re-established/maintained. 5 Expenditure Statement Please refer to Appendix 1 for the expenditure statement for the current reporting period. 6 Additional Information for Production Licence Reports Pursuant to Regulations 33(2) (i) and (j) of the Petroleum and Geothermal Energy Act 2000 In the case of PPL 203, it is estimated that 47,653 barrels will be produced during the ensuing year. In the case of PPL 203, no development activities are currently proposed to be undertaken during the ensuing year, but evaluation of additional opportunities is being evaluated and an additional development well and/or recompletion of existing wells may be undertaken.

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PPL 207 (WORRIOR) 1 Introduction Petroleum Production Licence (PPL) 207 was granted on 4th November 2004. The licence is located in the Cooper/Eromanga Basin, South Australia. This report details the production operations for the period 1st January 2012 – 31st December 2012, in accordance with Regulation 33 of the Petroleum and Geothermal Energy Act 2000. 2 Permit Summary For the duration of the reporting period, licencees for Petroleum Production Licence (PPL) 207 were:

• Stuart Petroleum Pty Limited 70% • Cooper Energy NL 30%

3 Regulated Activities Pursuant to Regulation 33(2)(a) of the Petroleum and Geothermal Energy Act 2000 Drilling and Related Activities A workover was performed on Worrior 1 from 31/7/2012 to 23/8/2012 to allow independent production of Upper and Lower McKinlay sands and restore zonal isolation of the Hutton reservoir. A workover was performed on Worrior 2 from 24/8/2012 to 3/9/2012 to allow independent production of the Upper and Lower McKInlay sands and to perforate 2m of Lower McKinlay original net pay. Seismic Data Acquisition No seismic data acquisition undertaken during the licence reporting period. Seismic Data Processing and Reprocessing No seismic data processing or reprocessing undertaken during the licence reporting period. Geochemical, Gravity, Magnetic and other surveys No geochemical, gravity or magnetic or other surveys undertaken during the licence reporting period. Production and Processing PPL 207 – Worrior

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Maintenance Activities Routine maintenance activities with regard to rotating machinery and other fixed equipment were undertaken during the year.

• Firebreaks • Loadout bay upgraded to meet AS1940 • Tank farm bund walls remediated • Well pad erosion remediated • Piping covered by sand • SRB monitoring • Interceptor pond pontoon • All ponds remediation • Pipeline/Flowline inspections • Vessel inspections • Wellhead inspections • PSV inspections

Inspection and replacement of downhole jet pump equipment in the wells was undertaken by slickline operations during the year. Emergency Response Exercises An emergency response exercise was carried out at Worrior on 10th October 2012. A live test of the man down process and how this is to be supported by the corporate office was conducted Infrastructure Construction No activity. Equipment Upgrades No equipment upgrades were performed during the year. Production Testing Routine production tests on all producing wells and zones were performed throughout the year. Road, Track and/or borrow pit construction No new roads or borrow pits were constructed, however maintenance is ongoing for existing facilities. Produced formation water disposal Approximately 18,700 barrels of water per day were disposed of during the reporting period.

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4 Compliance Issues Licence and Regulatory Compliance Pursuant to Regulations 33(2) (b) & (c) of the Petroleum and Geothermal Energy Act 2000 No licence non-compliances identified for PPL 207. No regulatory non-compliances identified for PPL 207. No SEO non-compliances identified for PPL 207. Compliance with Statement of Environmental Objectives Table 1 Environmental Objectives in relation to the production of oil from the

Worrior field

SEO for Cooper Basin Petroleum Production Operations (Dunefield and Floodplain)

Objective Assessment Criteria Compliant / Non-Compliant Comments

Objective 1: Minimise public and third party risks

Includes: No public or third party incidents

Compliant Signage at intersection prohibiting entry, warning against trespassing

Objective 2: Minimise fire risk at facilities and prevent the spread of any fires to wellheads

Includes: No wellhead fires

Compliant No fires occurred

Objective 3: Avoid disturbance to sites of Aboriginal and non-indigenous heritage significance

Includes: Proposed wellsites, access and ancillary areas have been surveyed and any sites of Aboriginal and non-indigenous heritage identified

Compliant Such heritage areas surveyed and identified prior to production activities

Objective 4: Avoid impacts on high biological value or wilderness value areas; minimise impacts on lowest active floodplain levels

Includes: Facility locations assessed for biological and wilderness value and assessment documented in site-specific information

Compliant Facility locations evaluated in environmental risk assessment

Objective 5: Avoid significant drainage alterations and minimise minor alterations

Includes: Extended and permanent production facilities located above frequently flooding floodplains

Compliant Storage, loading and water disposal facilities are located above lower levels of floodplains

Objective 6: Minimise soil impacts both of construction and of routine use: maintain soil integrity

Includes: No unauthorised off-road driving or creation of short cuts

Compliant Vehicles kept to prepared surfaces

Objective 7: Minimise disturbance to vegetation and habitat

Includes: No unauthorised off-road driving or creation of short cuts, or other unauthorised activities outside access and work areas

Compliant Ongoing road maintenance undertaken

Objective 8: Avoid disturbance to rare, endangered and/or vulnerable species

Includes: Sites with rare, vulnerable and endangered flora and fauna present or potentially present have been identified

Compliant Areas of major faunal considerations identified in EIR

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Objective 9: Prevent introduction of pest plants and animals

Includes: No new weeds or feral animals introduced to operational areas or along associated access.

Compliant Routine checks for appearance of pest species

Objective 10: Avoid storage and loading facility spills

Includes: No production or process fluid, or fuel or chemical spills or leaks outside areas designed to contain them

Compliant No spills occurred

Objective 11: Undertake rapid cleanup and impact minimisation following spills

Includes: No release of production fluid onto active floodplain, floodouts or channels

Compliant No spills occurred

Objective 12: Avoid transportation spills Includes: No production or process fluid, or fuel or chemical spills or leaks outside areas designed to contain them

Compliant No transportation spills. Procedures in place for safe movement of hydrocarbon transport

Objective 13: Minimise the likelihood of spread of a transportation spill

Includes: No release of production fluid onto active floodplain, floodouts or channels

Compliant No movement on wet roads or in wet conditions

Objective 14: Minimise impacts of fire from any transportation spill

Includes: No production or process fluid, or fuel or chemical spills or leaks outside areas designed to contain them

Compliant Emergency Response Plan in place

Objective 15: Avoid contamination of surface waters and groundwater

Includes: No produced water released from containment areas with visible oil present (>30mg/L)

Compliant No produced water escaped containment

Objective 16: Minimise visual impacts Includes: Visual impacts considered in site planning and development

Compliant Existing unobtrusive access used

Objective 17: Prevent cross-connection between aquifers, and between aquifers and reservoirs

No cross-flow behind casing between aquifers, and between aquifers and hydrocarbon reservoirs unless approved by DWLBC

Compliant Condition monitoring programs in place

Objective 18: Minimise air pollution and greenhouse gas emissions

Compliance with regulatory legislative requirements

Compliant Regular maintenance of equipment

Objective 19: Minimise adverse impact on Regional Reserve operations

No unresolved reasonable complaints Compliant No complaints received

Objective 20: Minimise adverse impact on livestock

Includes: Facility and water disposal are fenced

Compliant Stock proof fencing located around facility and water disposal areas

Objective 21: Avoid contamination of stockwaters with hydrocarbons

Includes: No production or processing fluid spills or leaks outside areas designed to contain them

Compliant No oil released outside containment areas

Objective 22: Minimise waste handling and disposal impact

Includes: No spills or leaks from sewage disposal system

Compliant Production camp sewerage disposed of via permanent septic tank system

Objective 23: Remediate and rehabilitate construction impacts, abandoned surface facilities and access or suspended wellsite and access

Includes: 0, +1 or +2 GAS criteria are attained for all objectives listed in Tables 2 to 5, during facility and access track site selection, construction and rehabilitation

Compliant No unsuccessful drilling attempts or removal of flowlines occurred

Objective 24: Undertake long-term planning for rehabilitation for potential producing wellsite/wellfields

Planning completed and rehabilitation objectives developed prior to facility abandonment

Compliant Rehabilitation plan developed for abandoned wellsites

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Objective 25: Maintain partnerships in community

Includes: EIR and SEO process in place

Compliant EIR and SEO documentation in place

Table 2 SEO for Drilling and Well Operations, Cooper Basin, SA

(Santos Ltd. 2009)

Objective / Goals Assessment Criteria Compliant/

Non-Compliant Comments

1.0 To minimise risks to the safety of the public and other third parties.

Reasonable measures implemented to ensure no injuries or health risks to the public or third parties.

Compliant / Achieved

No injuries or health risks to the public or third parties.

2.0 To minimise disturbance and avoid contamination to soil.

Well Site and Access Track Construction 0, +1 or +2 GAS criteria are attained for “Minimise impacts on soil” objective as listed in Appendix 1 Table A1 and “To minimise the visual impact” as listed in Appendix 1 Table A2. No unauthorised off-road driving or creation of shortcuts. No construction activities are carried out on salt lakes or steep tableland slopes (as defined in EIR). Borrow pit construction and restoration 0, +1 or +2 GAS criteria are attained for “Minimise visual impacts’, and “Minimise impact on soil” objectives as listed in Appendix 1 Table A3. Production Testing/Well Blowdowns No soil contamination as a result of production testing or well blowdown operations. Fuel and Chemical Storage and Handling No spills/leaks outside of areas designed to contain them. Level of hydrocarbon continually decreasing for in situ remediation of spills. Soils remediated to a level as determined by the SHI process. Also refer to Objective 12. Waste Disposal (domestic, sewage and sludges) All domestic wastes are disposed of in accordance with EPA licensing requirements. 0, +1 or +2 GAS criteria

Compliant / Achieved

No disturbances or contamination to soil.

3.0 To avoid the introduction or spread of pest plants and animals and implement control measures as necessary.

No weeds or feral animals are introduced to, or spread in, operational areas as a consequence of activities

Compliant / Achieved

No weeds or feral animals were introduced to, or spread in operational areas as a consequence of activities.

4.0 To minimise disturbance to drainage Well Lease and Access Track Construction

Compliant / Disturbances to drainage patterns were minimised.

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patterns and avoid contamination of surface waters and shallow ground water resources.

Well sites and access tracks are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained on floodplains and at creek crossings). Drilling Mud Sumps and Flare Pits No overflow of drill cuttings, muds and other drilling fluids from mud sumps. No waste material disposal to sumps and flare pits. No waste material disposal to sumps and flare pits. No leaks/spills outside of areas designed to contain them. Well Blowdown/Production Testing No water (surface or groundwater) contamination as a result of production testing or well blowdown operations. Fuel/Chemical Storage and Handling No water (surface or groundwater) contamination as a result of fuel or chemical storage and handling. Waste Management Refer to Assessment Criteria for Objective 11.

Achieved Contamination of surface and shallow ground water resources was avoided. No overflow of drill cuttings, muds and other drilling fluids from mud sumps. No waste material disposal to sumps and flare pits. No leaks/spills outside of areas designed to contain them. No water (surface or groundwater) contamination as a result of production testing or well blowdown operations. No water (surface or groundwater) contamination as a result of fuel or chemical storage and handling.

5.0 Avoid disturbance to sites of cultural and heritage significance.

Proposed well sites and access tracks have been surveyed and any sites of Aboriginal and non-Aboriginal heritage identified.

Any identified cultural and heritage sites have been avoided.

Compliant / Achieved

Disturbances to sites of cultural and heritage significance were avoided.

6.0 To minimise loss of aquifer pressure and avoid aquifer contamination. Note: This objective is subject to an ongoing review and is currently unchanged from the 2003 SEO. Refer to the addendum to the EIR (Santos 2009a) for details.

Drilling & Completion Activities There is no uncontrolled flow to surface (blow out). Sufficient barriers exist in casing annulus to prevent crossflow between separate aquifers or hydrocarbon reservoirs. Relevant government approval obtained for abandonment of any radioactive tool left downhole. Producing, Injection, Inactive and Abandoned Wells No cross-flow behind casing between aquifers, and between aquifers and hydrocarbon reservoirs unless approved by DWLBC.

Compliant/ Achieved

Aquifer contamination and aquifer pressure loss was minimised.

Objective 7: To minimise disturbance to native vegetation and native fauna.

Well Lease and Access Track Construction and Restoration Any sites with rare, vulnerable and endangered flora and fauna have been identified and avoided. 0, +1 or +2 GAS criteria are attained for “Minimise impact on vegetation”

Compliant / Achieved

No disturbances to native vegetation and fauna.

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objective as listed in Appendix 1 Table A1 and “The revegetation of indigenous species” objective as listed in Appendix 1 Table A2, during well lease and access track site selection and construction and restoration. Borrow Pit Construction and Restoration 0, +1 or +2 GAS criteria are attained for “Minimise impacts on vegetation” objectives as listed in Appendix 1 Table A3 during borrow pit site selection, construction, and restoration. Waste Management Refer to assessment criteria for Objective 11. Fuel and Chemical Storage and Handling Refer to assessment criteria for objectives 2 and 4.

8.0 To minimise air pollution and greenhouse gas emissions.

Compliance with EPA requirements Compliant / Achieved

Air pollution and greenhouse gas emissions were minimised.

9.0 To maintain and enhance partnerships with the Cooper Basin community.

No unresolved reasonable complaints from the community.

Compliant / Achieved

No unresolved reasonable complaints from the community.

10.0 To avoid or minimise disturbance to stakeholders and associated infrastructure.

No reasonable stakeholder complaints left unresolved.

Compliant / Achieved

Disturbances to stakeholders and/or associated infrastructure were avoided.

11.0 To optimise (in order of most to least preferable) waste avoidance, reduction, reuse, recycling, treatment and disposal.

All wastes to be disposed of at an EPA licensed facility in accordance with EPA Licence conditions, with the exception of drilling fluids, drill cuttings, other fluids disposed during well clean-up and wastewater (see below). Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction. Attainment of GAS criteria for “Site to be left in clean, tidy and safe condition” objective during well site restoration (refer Appendix 1 Table A2). Attainment of GAS criteria for “Site left in clean and tidy condition” objective during borrow pit restoration (refer Appendix 1 Table A3).

Compliant / Achieved

Waste was avoided, reduced, reused, recycled and disposed of in the optimal way.

12.0 To remediate and rehabilitate operational areas to agreed standards.

No unresolved reasonable stakeholder complaints. Contaminated Site Remediation Contaminated sites are remediated to a level as determined by the approved

Compliant / Achieved

No unresolved reasonable stakeholder complaints.

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SHI process. Prior to the finalisation and approval of the SHI process, contaminated sites are remediated in accordance with criteria developed with the principles of the National Environment Protection Measure for contaminated sites, and in consultation with the EPA. Well Site and Access Track Restoration The attainment of 0, +1 or +2 GAS criteria for the objectives (refer Appendix 1 Table A2): - “To minimise the visual impact and the revegetation of indigenous species” Borrow Pit Restoration The attainment of 0, +1 or +2 GAS criteria for (refer Appendix 1 Table A3): - “Revegetation of indigenous species”, “minimise impact on soil”, “minimise visual impacts” and “Site to be left in a clean and tidy condition” Note: Well abandonment issues are addressed under Objective 6.

Management System Audits Pursuant to Regulation 33(2) (d) of the Petroleum and Geothermal Energy Act 2000 A HSE Management System Audit was conducted at the Worrior Facility on the 24th of July 2012. The plan for the mitigation of the audit findings is ongoing and a copy of the report is available for review on request.

21

Report and Data Submissions Pursuant to Regulation 33(2) (e) of the Petroleum and Geothermal Energy Act 2000 Table 3 List of report and data submissions during current licence reporting year Description of Report/Data Date Due Date Submitted Compliant / Non-Compliant

Monthly Production Reports – Worrior 1, 2, 3, 4, 5, 6, 7

2 months from end of each reporting

month

Within 2 months of end of each reporting month

Compliant

Worrior-1 Workover Initial AN - updated for new rig - 14/02/2012

Compliant

PPL Combined Annual Report 2011 29/02/2012 29/02/2012 Compliant

Worrior-1 Workover AN (Part 2) - Revised program for new rig - 25/07/2012

Compliant

Worrior 2 - Workover Program for Wild Desert - 14/08/2012 Compliant

Downhole Diagram - Worrior 1 22/10/2012 27/09/2012 Compliant

Downhole Diagram - Worrior 2 3/10/2012 27/09/2012 Compliant

Downhole Diagram - Worrior 1 22/10/2012 27/09/2012 Compliant

Downhole Diagram - Worrior 2 3/10/2012 27/09/2012 Compliant

Cased Hole Activity Report Q3 2012 31/10/2012 31/10/2012 Compliant

Response to Enviro Improvement Notice (SEO Breach) from DMITRE - 26/11/2012

Compliant

Incidents Pursuant to Regulation 33(2) (f) of the Petroleum and Geothermal Energy Act 2000 No serious or reportable incidents occurred during the licence reporting period. Threat Prevention Pursuant to Regulation 33(2) (g) of the Petroleum and Geothermal Energy Act 2000 No threats to facilities or activities which are not already covered in the Environmental Impact Reports. Fire breaks were re-established / maintained. 5 Expenditure Statement Please refer to Appendix 1 for the expenditure statement for the current reporting period.

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6 Additional Information for Production Licence Reports Pursuant to Regulations 33 (2) (i) and (j) of the Petroleum and Geothermal Energy Act 2000 In the case of PPL 207, it is estimated that 80,063 barrels of oil will be produced during the ensuing year. In the case of PPL 207, no development activities are currently proposed to be undertaken during the ensuing year, but evaluation of additional opportunities is being evaluated and an additional development well and/or recompletion of existing wells may be undertaken.

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PPL 208 (DERRILYN)

1 Introduction Petroleum Production Licence (PPL) 208 was granted on 12th November 2004. The licence is located in the Cooper/Eromanga Basin, South Australia. This report details the production operations for the period 1st January 2012 – 31st December 2012, in accordance with Regulation 33 of the Petroleum and Geothermal Energy Act 2000. 2 Permit Summary For the duration of the reporting period, licencees for Petroleum Production Licence (PPL) 208 were:

• Stuart Petroleum Pty Limited 100% Further farmin agreements: (Unitisation Agreement between Santos Ltd and Stuart Petroleum Ltd dated 5th May 2005)

• Stuart Petroleum Pty Limited 35% • Santos Limited 65%

3 Regulated Activities Pursuant to Regulation 33(2)(a) of the Petroleum and Geothermal Energy Act 2000 Drilling and Related Activities No drilling conducted during the licence reporting period. Seismic Data Acquisition No seismic data acquisition undertaken during the licence reporting period. Seismic Data Processing and Reprocessing No seismic data processing or reprocessing undertaken during the licence reporting period. Geochemical, Gravity, Magnetic and other surveys No geochemical, gravity or magnetic or other surveys undertaken during the licence reporting period. Production and Processing PPL 208 – Derrilyn To be reported by Santos (operator)

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Pipeline/Flowline Construction and Operation To be reported by Santos (operator) Preliminary Survey Activities To be reported by Santos (operator) 4 Compliance Issues Licence and Regulatory Compliance Pursuant to Regulations 33(2) (b) & (c) of the Petroleum and Geothermal Energy Act 2000 In the case of PPL 208 (Derrilyn), Licence and Regulatory Compliance is to be reported by Santos (operator). Management System Audits Pursuant to Regulation 33(2) (d) of the Petroleum and Geothermal Energy Act 2000 No Management System Audits by Senex of the Operator were conducted during the reporting period. Report and Data Submissions Pursuant to Regulation 33(2) (e) of the Petroleum and Geothermal Energy Act 2000 Table 1 List of report and data submissions during current licence reporting year

Description of Report/Data Date Due Date Submitted Compliant / Non-Compliant

PPL Combined Annual Report 2011 29/02/2012 29/02/2012 Compliant

Incidents Pursuant to Regulation 33(2) (f) of the Petroleum and Geothermal Energy Act 2000 To be reported by Santos (Operator). Threat Prevention Pursuant to Regulation 33(2) (g) of the Petroleum and Geothermal Energy Act 2000 To be reported by Santos (Operator).

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5 Expenditure Statement Please refer to Appendix 1 for the expenditure statement for the current reporting period. 6 Additional Information for Production Licence Reports Pursuant to Regulations 33(2) (i) and (j) of the Petroleum and Geothermal Energy Act 2000 In the case of PPL 208 (Derrilyn), information is to be reported by Santos (operator).

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PPL 209 (HARPOONO) 1 Introduction Petroleum Production Licence (PPL) 209 was granted on 25th May 2005. The licence is located in the Cooper/Eromanga Basin, South Australia. This report details the production operations for the period 1st January 2012 – 31st December 2012, in accordance with Regulation 33 of the Petroleum Act 2000 of the Petroleum and Geothermal Energy Act 2000. 2 Permit Summary For the duration of the reporting period, licencees for Petroleum Production Licence (PPL) 209 were:

• Stuart Petroleum Pty Limited 100% 3 Regulated Activities Pursuant to Regulation 33(2)(a) of the Petroleum and Geothermal Energy Act 2000 Drilling and Related Activities No drilling or workover activities were conducted during the licence reporting period. Seismic Data Acquisition No seismic data acquisition undertaken during the licence reporting period. Seismic Data Processing and Reprocessing No seismic data processing or reprocessing undertaken during the licence reporting period. Geochemical, Gravity, Magnetic and other surveys No geochemical, gravity or magnetic or other surveys undertaken during the licence reporting period. Production and Processing PPL 209 – Harpoono Maintenance Activities Routine maintenance activities with regard to rotating machinery and other fixed equipment have been undertaken during the year.

• Firebreaks • Pond remediation – chemical injection for algae • Pump breakdown • Vessel inspections • Pipeline/Flowline inspections • Wellhead inspections

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Emergency Response Exercises A full field evacuation of Senex Operated Facilities (that also included the Harpoono Production Operator and Site Supervisor) took place between 1 – 4 March 2012. Infrastructure Construction No infrastructure construction during the period. Equipment Upgrades No activity. Production Testing Routine production tests on all producing wells and zones have been performed throughout the year. Road, Track and/or borrow pit construction No new roads or borrow pits have been constructed; however maintenance is ongoing for existing facilities. Produced formation water disposal Approximately 2,134 barrels of water per day were disposed of during the year. Pipeline/Flowline Construction and Operation Normal flowline operation activities undertaken during the year:

• SCADA systems are operational, allowing real-time monitoring of production operations, with parameters able to be viewed at Worrior.

• External ongoing routine pipeline monitoring • Corrosion monitoring program and annual survey • SRB monitoring and treatment • SAOP in place for the operation and maintenance of pipelines and flowlines

Preliminary Survey Activities No regulated activities undertaken in the licence reporting period. 4 Compliance Issues Licence and Regulatory Compliance Pursuant to Regulations 33(2) (b) & (c) of the Petroleum and Geothermal Energy Act 2000 No licence non-compliances identified for PPL 209. No regulatory non-compliances identified for PPL 209. SEO non-compliances with Objective 15 of Table 1 were identified for PPL 209. Further details are contained in Table 1 and Table 4.

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Compliance with Statement of Environmental Objectives Table 1 Environmental Objectives in relation to the production of oil from the

Harpoono field SEO for Cooper Basin Petroleum Production Operations (Dunefield and Floodplain)

Objective Assessment Criteria Compliant /

Non-Compliant Comments

Objective 1: Minimise public and third party risks

Includes: No public or third party incidents

Compliant Signage at intersection prohibiting entry, warning against trespassing

Objective 2: Minimise fire risk at facilities and prevent the spread of any fires to wellheads

Includes: No wellhead fires

Compliant No fires occurred

Objective 3: Avoid disturbance to sites of Aboriginal and non-indigenous heritage significance

Includes: Proposed wellsites, access and ancillary areas have been surveyed and any sites of Aboriginal and non-indigenous heritage identified

Compliant Such heritage areas surveyed and identified prior to production activities

Objective 4: Avoid impacts on high biological value or wilderness value areas; minimise impacts on lowest active floodplain levels

Includes: Facility locations assessed for biological and wilderness value and assessment documented in site-specific information

Compliant Facility locations evaluated in environmental risk assessment

Objective 5: Avoid significant drainage alterations and minimise minor alterations

Includes: Extended and permanent production facilities located above frequently flooding floodplains

Compliant Storage, loading and water disposal facilities are located above lower levels of floodplains

Objective 6: Minimise soil impacts both of construction and of routine use: maintain soil integrity

Includes: No unauthorised off-road driving or creation of short cuts

Compliant Vehicles kept to prepared surfaces

Objective 7: Minimise disturbance to vegetation and habitat

Includes: No unauthorised off-road driving or creation of short cuts, or other unauthorised activities outside access and work areas

Compliant Ongoing road maintenance undertaken

Objective 8: Avoid disturbance to rare, endangered and/or vulnerable species

Includes: Sites with rare, vulnerable and endangered flora and fauna present or potentially present have been identified

Compliant Areas of major faunal considerations identified in EIR

Objective 9: Prevent introduction of pest plants and animals

Includes: No new weeds or feral animals introduced to operational areas or along associated access.

Compliant Routine checks for appearance of pest species

Objective 10: Avoid storage and loading facility spills

Includes: No production or process fluid, or fuel or chemical spills or leaks outside areas designed to contain them

Complaint

No spills occurred.

Objective 11: Undertake rapid cleanup and impact minimisation following spills

Includes: No release of production fluid onto active floodplain, floodouts or channels

Compliant No spills occurred

Objective 12: Avoid transportation spills Includes: No production or process fluid, or fuel

Compliant Procedures in place for safe movement of hydrocarbon

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or chemical spills or leaks outside areas designed to contain them

transport

Objective 13: Minimise the likelihood of spread of a transportation spill

Includes: No release of production fluid onto active floodplain, floodouts or channels

Compliant No movement on wet roads or in wet conditions

Objective 14: Minimise impacts of fire from any transportation spill

Includes: No production or process fluid, or fuel or chemical spills or leaks outside areas designed to contain them

Compliant Emergency Response Plan in place

Objective 15: Avoid contamination of surface waters and groundwater

Includes: No produced water released from containment areas with visible oil present (>30mg/L)

Non-compliant Incident occurred 13/03/2012. Produced water overflowed into second interceptor pond. Reported to DMITRE Incident occurred 29/12/2012. Produced water leak from valve failure. Reported to DMITRE.

Objective 16: Minimise visual impacts Includes: Visual impacts considered in site planning and development

Compliant Existing unobtrusive access used

Objective 17: Prevent cross-connection between aquifers, and between aquifers and reservoirs

No cross-flow behind casing between aquifers, and between aquifers and hydrocarbon reservoirs unless approved by DWLBC

Compliant Condition monitoring programs in place

Objective 18: Minimise air pollution and greenhouse gas emissions

Compliance with regulatory legislative requirements

Compliant Regular maintenance of equipment

Objective 19: Minimise adverse impact on Regional Reserve operations

No unresolved reasonable complaints Compliant No complaints received

Objective 20: Minimise adverse impact on livestock

Includes: Facility and water disposal are fenced

Compliant Stock proof fencing located around facility and water disposal areas

Objective 21: Avoid contamination of stockwaters with hydrocarbons

Includes: No production or processing fluid spills or leaks outside areas designed to contain them

Compliant No oil released outside containment areas

Objective 22: Minimise waste handling and disposal impact

Includes: No spills or leaks from sewage disposal system

Compliant Production camp sewerage disposed of via permanent septic tank system

Objective 23: Remediate and rehabilitate construction impacts, abandoned surface facilities and access or suspended wellsite and access

Includes: 0, +1 or +2 GAS criteria are attained for all objectives listed in Tables 2 to 5, during facility and access track site selection, construction and rehabilitation

Compliant No unsuccessful drilling attempts or removal of flowlines occurred

Objective 24: Undertake long-term planning for rehabilitation for potential producing wellsite/wellfields

Planning completed and rehabilitation objectives developed prior to facility abandonment

Compliant Rehabilitation plan developed for abandoned wellsites

Objective 25: Maintain partnerships in community

Includes: EIR and SEO process in place

Compliant EIR and SEO documentation in place

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Table 2 SEO for Drilling and Well Operations, Cooper Basin, SA (Santos Ltd. 2009)

Objective / Goals Assessment Criteria Compliant/ Non-Compliant

Comments

1.0 To minimise risks to the safety of the public and other third parties.

Reasonable measures implemented to ensure no injuries or health risks to the public or third parties.

Compliant / Achieved

No injuries or health risks to the public or third parties.

2.0 To minimise disturbance and avoid contamination to soil.

Well Site and Access Track Construction 0, +1 or +2 GAS criteria are attained for “Minimise impacts on soil” objective as listed in Appendix 1 Table A1 and “To minimise the visual impact” as listed in Appendix 1 Table A2. No unauthorised off-road driving or creation of shortcuts. No construction activities are carried out on salt lakes or steep tableland slopes (as defined in EIR). Borrow pit construction and restoration 0, +1 or +2 GAS criteria are attained for “Minimise visual impacts’, and “Minimise impact on soil” objectives as listed in Appendix 1 Table A3. Production Testing/Well Blowdowns No soil contamination as a result of production testing or well blowdown operations. Fuel and Chemical Storage and Handling No spills/leaks outside of areas designed to contain them. Level of hydrocarbon continually decreasing for in situ remediation of spills. Soils remediated to a level as determined by the SHI process. Also refer to Objective 12. Waste Disposal (domestic, sewage and sludges) All domestic wastes are disposed of in accordance with EPA licensing requirements. 0, +1 or +2 GAS criteria

Compliant / Achieved

No disturbances or contamination to soil.

3.0 To avoid the introduction or spread of pest plants and animals and implement control measures as necessary.

No weeds or feral animals are introduced to, or spread in, operational areas as a consequence of activities

Compliant / Achieved

No weeds or feral animals were introduced to, or spread in operational areas as a consequence of activities.

4.0 To minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.

Well Lease and Access Track Construction Well sites and access tracks are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained

Compliant / Achieved

Disturbances to drainage patterns were minimised. Contamination of surface and shallow ground water resources was avoided.

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on floodplains and at creek crossings). Drilling Mud Sumps and Flare Pits No overflow of drill cuttings, muds and other drilling fluids from mud sumps. No waste material disposal to sumps and flare pits. No waste material disposal to sumps and flare pits. No leaks/spills outside of areas designed to contain them. Well Blowdown/Production Testing No water (surface or groundwater) contamination as a result of production testing or well blowdown operations. Fuel/Chemical Storage and Handling No water (surface or groundwater) contamination as a result of fuel or chemical storage and handling. Waste Management Refer to Assessment Criteria for Objective 11.

No overflow of drill cuttings, muds and other drilling fluids from mud sumps. No waste material disposal to sumps and flare pits. No leaks/spills outside of areas designed to contain them. No water (surface or groundwater) contamination as a result of production testing or well blowdown operations. No water (surface or groundwater) contamination as a result of fuel or chemical storage and handling.

5.0 Avoid disturbance to sites of cultural and heritage significance.

Proposed well sites and access tracks have been surveyed and any sites of Aboriginal and non-Aboriginal heritage identified. Any identified cultural and heritage sites have been avoided.

Compliant / Achieved

Disturbances to sites of cultural and heritage significance were avoided.

6.0 To minimise loss of aquifer pressure and avoid aquifer contamination. Note: This objective is subject to an ongoing review and is currently unchanged from the 2003 SEO. Refer to the addendum to the EIR (Santos 2009a) for details.

Drilling & Completion Activities There is no uncontrolled flow to surface (blow out). Sufficient barriers exist in casing annulus to prevent crossflow between separate aquifers or hydrocarbon reservoirs. Relevant government approval obtained for abandonment of any radioactive tool left downhole. Producing, Injection, Inactive and Abandoned Wells No cross-flow behind casing between aquifers, and between aquifers and hydrocarbon reservoirs unless approved by DWLBC.

Compliant/ Achieved

Aquifer contamination and aquifer pressure loss was minimised.

Objective 7: To minimise disturbance to native vegetation and native fauna.

Well Lease and Access Track Construction and Restoration Any sites with rare, vulnerable and endangered flora and fauna have been identified and avoided. 0, +1 or +2 GAS criteria are attained for “Minimise impact on vegetation” objective as listed in Appendix 1 Table A1 and “The revegetation of indigenous species” objective as listed in Appendix 1 Table A2, during well lease and

Compliant / Achieved

No disturbances to native vegetation and fauna.

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access track site selection and construction and restoration. Borrow Pit Construction and Restoration 0, +1 or +2 GAS criteria are attained for “Minimise impacts on vegetation” objectives as listed in Appendix 1 Table A3 during borrow pit site selection, construction, and restoration. Waste Management Refer to assessment criteria for Objective 11. Fuel and Chemical Storage and Handling Refer to assessment criteria for objectives 2 and 4.

8.0 To minimise air pollution and greenhouse gas emissions.

Compliance with EPA requirements Compliant / Achieved

Air pollution and greenhouse gas emissions were minimised.

9.0 To maintain and enhance partnerships with the Cooper Basin community.

No unresolved reasonable complaints from the community.

Compliant / Achieved

No unresolved reasonable complaints from the community.

10.0 To avoid or minimise disturbance to stakeholders and associated infrastructure.

No reasonable stakeholder complaints left unresolved.

Compliant / Achieved

Disturbances to stakeholders and/or associated infrastructure were avoided.

11.0 To optimise (in order of most to least preferable) waste avoidance, reduction, reuse, recycling, treatment and disposal.

All wastes to be disposed of at an EPA licensed facility in accordance with EPA Licence conditions, with the exception of drilling fluids, drill cuttings, other fluids disposed during well clean-up and wastewater (see below). Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction. Attainment of GAS criteria for “Site to be left in clean, tidy and safe condition” objective during well site restoration (refer Appendix 1 Table A2). Attainment of GAS criteria for “Site left in clean and tidy condition” objective during borrow pit restoration (refer Appendix 1 Table A3).

Compliant / Achieved

Waste was avoided, reduced, reused, recycled and disposed of in the optimal way.

12.0 To remediate and rehabilitate operational areas to agreed standards.

No unresolved reasonable stakeholder complaints. Contaminated Site Remediation Contaminated sites are remediated to a level as determined by the approved SHI process. Prior to the finalisation and approval of the SHI process, contaminated sites are remediated in accordance with

Compliant / Achieved

No unresolved reasonable stakeholder complaints.

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criteria developed with the principles of the National Environment Protection Measure for contaminated sites, and in consultation with the EPA. Well Site and Access Track Restoration The attainment of 0, +1 or +2 GAS criteria for the objectives (refer Appendix 1 Table A2): - “To minimise the visual impact and the revegetation of indigenous species” Borrow Pit Restoration The attainment of 0, +1 or +2 GAS criteria for (refer Appendix 1 Table A3): - “Revegetation of indigenous species”, “minimise impact on soil”, “minimise visual impacts” and “Site to be left in a clean and tidy condition” Note: Well abandonment issues are addressed under Objective 6.

Management System Audits Pursuant to Regulation 33(2) (d) of the Petroleum and Geothermal Energy Act 2000 A HSE Management System Audit was conducted of the Worrior Facility (that also included the Harpoono field) on 24 July 2012. The plan for the mitigation of the audit findings is ongoing and a copy of the report is available for review on request. Report and Data Submissions Pursuant to Regulation 33(2) (e) of the Petroleum and Geothermal Energy Act 2000 Table 3 List of report and data submissions during current licence reporting year

Description of Report/Data Date Due Date Submitted Compliant / Non-Compliant

PPL Combined Annual Report 2011 29/02/2012 29/02/2012 Compliant

Monthly Production Reports – Harpoono 1 & 2, Revenue 1, Rimfire 1, Might & Power 1, Dunoon 2, Comic 1

2 months from end of each reporting

month

Within 2 months of end of each reporting month

Compliant

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Incidents Pursuant to Regulation 33(2) (f) of the Petroleum and Geothermal Energy Act 2000 One reportable incident occurred during the licence reporting period. Table 4 List of incidents during current licence reporting year

Date/Time of Occurrence

Report Date Location Incident Type

Affected area /volume

Description / Cause Remedial Action

13th March 2012

13th March 2012

Harpoono Oil Spillage

unknown At approximately 1000hrs on the 11/3/2012, a production operator drove to the Harpoono Oil Facility to perform a fuel transfer, and to check the road condition after recent heavy rains. Upon arrival he observed that the water level in the first separator pond appeared high and was flowing into the top of the T piece overflow (rather than flowing through the bottom of the T piece). This meant the oil and algae was able to flow into the second separator from the top of the T piece rather than cleaner water coming through the bottom of the T pipe. The Worrior Production Supervisor was notified and the pump was stopped to cease production.It was visible that there was a lot of algae in the pond and it was suspected that this may have blocked the bottom of the T piece.

Immediate cause: Lack of maintenance and build up of sand /dust etc blown into pond over several years Poor design – Senex to review the way it transfers the disposal of water between interceptor ponds and develop a system which will prevent this type of incident from occurring.

29 December

2012

31 December

2012

Harpoono Water Spill

< 100L At approximately 1245 hours on 29/12/2012, Senex Site Supervisor and HSE Advisor were en route to the Interceptor Pond at Harpoono and noticed water excaping downstream of the Power Fluid Isolation Valve running to Rimfire-1. A loss of approximately 100L of water occurred due to failure of 3” Class 1500 Ring Joint Valve.

Immediate cause: Suspected soft iron ring failure under normal operational conditions of 20,000kPa. Root Cause: Soft iron ring on isolation valve was rusted out allowing channel for water to flow through. Immediate Action: Valve was isolated and depressurised. Corrective Action: A blind flange was placed on the valve and is now secure.

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Threat Prevention Pursuant to Regulation 33(2) (g) of the Petroleum and Geothermal Energy Act 2000 No threats to facilities or activities which are not already covered in the Environmental Impact Reports. Fire breaks were re-established / maintained. 5 Expenditure Statement Please refer to Appendix 1 for the expenditure statement for the current reporting period. 6 Additional Information for Production Licence Reports Pursuant to Regulations 33 (2) (i) and (j) of the Petroleum and Geothermal Energy Act 2000 In the case of PPL 209, it is estimated that 15,025 barrels of oil will be produced during the ensuing year. In the case of PPL 209, no development activities are proposed to be undertaken during the ensuing year.

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PPL 211 (REG SPRIGG WEST)

1 Introduction Petroleum Production Licence (PPL) 211 was granted on 2nd December 2005. The licence is located in the Cooper/Eromanga Basin, South Australia. This report details the production operations for the period 1st January 2012 – 31st December 2012, in accordance with Regulation 33 of the Petroleum and Geothermal Energy Act 2000. 2 Permit Summary Petroleum Production Licence (PPL) 211 was awarded to:

• Stuart Petroleum Pty Limited 75% • Mawson Petroleum Pty Ltd 25%

Following further farmin arrangements, current working interests in PPL 211 are:

• Stuart Petroleum Pty Ltd 18.75% • Santos Ltd 54.2408% • Mawson Petroleum Pty Ltd 6.25% • Delhi Petroleum Pty Ltd 12.8572% • Origin Energy 7.902%

3 Regulated Activities Pursuant to Regulation 33(2)(a) of the Petroleum and Geothermal Energy Act 2000 Drilling and Related Activities No drilling or workover activities conducted during the licence reporting period. Seismic Data Acquisition No seismic data acquisition undertaken during the licence reporting period. Seismic Data Processing and Reprocessing No seismic data processing or reprocessing undertaken during the licence reporting period. Geochemical, Gravity, Magnetic and other surveys No geochemical, gravity or magnetic or other surveys undertaken during the licence reporting period. Production and Processing PPL 211 – Reg Sprigg West To be reported by Santos (operator)

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Pipeline/Flowline Construction and Operation No regulated activities undertaken in the licence reporting period. Preliminary Survey Activities No regulated activities undertaken in the licence reporting period. 4 Compliance Issues Licence and Regulatory Compliance Pursuant to Regulations 33(2) (b) & (c) of the Petroleum and Geothermal Energy Act 2000

In the case of PPL 211 (Reg Sprigg West), Licence and Regulatory Compliance is to be reported by Santos (operator).

Management System Audits Pursuant to Regulation 33(2) (d) of the Petroleum and Geothermal Energy Act 2000 To be reported by Santos (operator). Report and Data Submissions Pursuant to Regulation 33(2) (e) of the Petroleum and Geothermal Energy Act 2000 Table 1 List of report and data submissions during current licence reporting year

Description of Report/Data Date Due Date Submitted Compliant / Non-Compliant

PPL Combined Annual Report 2011 29/02/2012 29/02/2012 Compliant

Incidents Pursuant to Regulation 33(2) (f) of the Petroleum and Geothermal Energy Act 2000 To be reported by Santos (operator) Threat Prevention Pursuant to Regulation 33(2) (g) of the Petroleum and Geothermal Energy Act 2000 To be reported by Santos (operator)

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5 Expenditure Statement Please refer to Appendix 1 for the expenditure statement for the current reporting period. 6 Additional Information for Production Licence Reports Pursuant to Regulations 33 (2) (i) and (j) of the Petroleum and Geothermal Energy Act 2000 In the case of PPL 211, information is to be reported by Santos (operator).

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PPL 213 (Mirage) 1 Introduction Petroleum Production Licence (PPL) 213 was granted on 25 August, 2006. The licence is located in the Cooper/Eromanga Basins, South Australia. This report details the production operations for the period 1st January 2012 – 31st December 2012, in accordance with Regulation 33 of the Petroleum and Geothermal Energy Act 2000. 2 Permit Summary For the duration of the reporting period, licencees for Petroleum Production Licence (PPL) 213 were:

• Victoria Oil Exploration (1977) Pty Ltd 40% • Impress (Cooper Basin) 25% • Permian Oil Pty Ltd 20% • Springfield Oil and Gas Pty Ltd 15%

3 Regulated Activities Pursuant to Regulation 33(2)(a) of the Petroleum and Geothermal Energy Act 2000. Drilling and Related Activities 30/12/11 – 05/01/12 Workover; Rod Pump repair after rod string failure at pump. Seismic Data Acquisition No regulated activities undertaken in the licence reporting period. Seismic Data Processing and Reprocessing No regulated activities undertaken in the licence reporting period. Geochemical, Gravity, Magnetic and other surveys No geochemical, gravity or magnetic or other surveys undertaken during the licence reporting period. Production and Processing PPL 213 – Mirage Maintenance Activities Routine maintenance activities were conducted throughout the year.

• Fire breaks • M1 engine replacement • Pipleine/flowline inspections • Wellhead inspections • Vessel inspections

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Emergency Response Exercises A full field evacuation of Senex Operated Facilities (that also included the Mirage Production Operator) took place between 1 – 4 March 2012. Infrastructure Construction None Equipment Upgrades Fuel tank upgrade for compliance with AS1940. Production Testing Routine production testing activities were undertaken during the year. Road, Track and/or Borrow Pit Construction None, but routine maintenance carried out.

Produced Formation Water Disposal Approximately 37,350 Bbls water produced during this reporting period.

Produced Formation Water Disposal Approximately 160 barrels of water per day produced during this reporting period. Pipeline/Flowline Construction and Operation Routine activities undertaken during the year. These included wall thickness testing, corrosion coupon inspection and regular flowline walks/inspections.

• External ongoing routine pipeline monitoring • Corrosion monitoring program and annual survey • SRB monitoring and treatment • SAOP in place for the operation and maintenance of pipelines and flowlines

4 Compliance Issues Licence and Regulatory Compliance Pursuant to Regulations 33(2) (b) & (c) of the Petroleum and Geothermal Energy Act 2000. No licence non-compliances identified for PPL 213 for the reporting period. No regulatory non-compliances for PPL 213 for the reporting period. An SEO non-compliance with Objective 6 of Table 1 was identified for PPL 213. Further details are contained in Table 1.

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Compliance with Statement of Environmental Objectives Table 1 Environmental Objectives in relation to the production of oil from the

Mirage field

SEO f