new standard energy identifying new projects that fit our selection criteria to enhance our...

Sam Willis – Executive Director Dr Mark Hagan – Technical Director

March 2008

AGM Presentation

13 November 2012

NEW STANDARD ENERGY

“The New Energy Frontier”

Contents

Corporate overview

Goldwyer Project

Merlinleigh Project

Other assets

Future activities

Corporate Overview & Strategic Focus

Emerging Oil & Gas explorer and producer

Core focus on Western Australian onshore

unconventional shale projects

Early stage entry

Attractive energy market dynamics and

pricing

Large footprint provides exposure and opportunity

Gross acreage in excess of 14 million acres

across Western Australia

Top tier partner (ConocoPhillips) to fund and

progress Goldwyer shale gas and liquids project,

onshore Canning Basin

100% interest in Merlinleigh shale and tight gas

project

Onshore drilling commenced in WA

US production provides revenue and value

crystallisation opportunities

New Standard’s primary focus is identifying and

developing unconventional hydrocarbon

resources in onshore Western Australia.

Identifying new projects that fit our selection

criteria to enhance our portfolio of assets

Finding and developing new and/or frontier oil

and gas projects, recognising an enduring

demand for additional sources of energy

Strategic Focus

Partnering where appropriate to de-risk

projects and provide opportunities to

crystallise value for shareholders

Capital Structure

Capital Structure

New Standard Energy ASX:NSE

Ordinary shares ~305.3m

Unlisted options 12.95m

Market capitalisation

(at $0.32c per share) $98m

Cash (net) (post Buru share shale) ~$63m

Investment in Elixir Petroleum

(15m shares at 2.7c per share) $1.2m

Top 10 Shareholders Holding %

J P Morgan Nominees Aust Ltd 23,324,411 7.64

Buru Energy Ltd 18,057,930 5.91

National Nominees Ltd 14,431,894 4.73

HSBC Custody Nominees Aust Ltd 12,390,759 4.06

Harris Richard J & S E 10,145,000 3.30

Phoenix Props Int PL 9,508,453 3.10

TC Inv Pte Ltd 8,250,000 2.70

Young Alan 6,905,252 2.26

Deck Chair Holdings PL 6,600,000 2.16

Carossa Holdings PL 5,400,000 1.77

Top 40 Shareholders 170,354,087 55.79

Applicable as at 31 October 2012

NSE $25m

capital raising

at 30c

Buru drilling success

in Canning Basin Merlinleigh

EPs granted Nicolay #1

results

Board and Management

Arthur Dixon, AM - Chairman

Engineer, 40 years with Shell with 20+ in LNG

Heavily involved with LNG and gas marketing

Project development expertise

Sam Willis – Managing Director

Corporate finance and resources background

Over 10 years corporate advisory and capital markets experience

Mark Hagan – Technical Director

Petroleum geologist, over 30 years experience in oil and gas

exploration and production

18 years working for Sun Oil, ultimately responsible for worldwide

exploration activities (Australia, Europe, SE Asia and South America)

Experienced Board

Phil Thick – Non-Executive Director

Extensive experience in the downstream oil sector in the areas of

logistics, terminals and transport

Previously Managing Director at Coogee Chemicals

Experienced Management

Chris Sadler – Non-Executive Director

Background in corporate finance and energy sector

20 years experience in investment banking, specifically mergers and

acquisitions, corporate restructurings, equity and debt financings

Ken Aitken – General Manager of Operations and Engineering

More than 27 years’ experience in onshore and offshore hydrocarbon

exploration and production, both in Australia and overseas

Previously Business Unit Manager / WA Asset Manager for Origin

Energy

Brett Walker – Exploration Manager

Geoscientist with 19 years experience

Significant experience in both onshore and offshore exploration

discovering a number of commercial oil and gas fields

Established team includes

Commercial and Legal Manager

CFO and Company Secretary

HSEC Manager

Native Title Lawyer

Regional Operations Manager

Logistics and Materials Manager

Drilling Manager (Canning experience)

Drilling supervisor (Remote onshore experience)

Civils contractor (Canning experience)

Drilling contractor (MB Century, Canning experience)

Elixir Petroleum

ASX: EXR

Diversified Portfolio with Unconventional Gas Focus

New Standard Energy

ASX: NSE

Goldwyer

Shale

Merlinleigh

Shale

Laurel Shale

100% WI

Direct Projects

Australian Unconventional

25% WI* 50%-60% WI

45,000km2

or 11m+ gross acres

Gas & Wet Gas

potential

Canning Basin

US$119m farm out

to COP

3 wells in 2012/13

Phase 1 program

~5,800km2

or 1.4m gross acres

Shale and Tight

Gas potential

Carnarvon Basin

Liquids Potential

to be assessed

2013 drilling

~5,800 km2 or

1.4m gross acres

Gas & Wet Gas

potential

Canning Basin

Regional work

and ongoing BRU

drilling

*Post COP completing farm in obligations

Equity Holdings

13.7% Equity

Buru Energy

ASX: BRU

USA Conventional

32.5% - 38% WI

Colorado County

Wharton County

Minor production

Heintschel gas and

condensate discovery

field

Non-core business

100% WI

Largest acreage in

Paris Basin, France

Conventional and

unconventional

exploration

prospectivity

Stakeholder Engagement

SAFELY AND RESPONSIBLY EXPLORING FOR

HYDROCARBON RESOURCES

Respect for environmental issues and

the environment within which we

operate:

• Voluntary code of conduct

• Quality well design and engineering

• Water treatment and handling

• Reservoir stimulation management

Respect for the local community,

traditional owners and heritage matters:

• Liaison bodies and councils

• Traditional owner groups and families

• Open engagement & dialogue

• Indigenous engagement plan

• Cultural awareness training

Key Stakeholder Communication • Transparent and open communication

• Early engagement and interaction

• Listening to and addressing concerns

Respect for the regulators and

the regulatory environment

within which we operate:

• Open & transparent

communication

• Honest dialogue

• Early engagement

Significant Progress Over 12 Months 2011 vs 2012 AGM snapshot

2011 2012 Outcome

Goldwyer

Project

$119M farm out to global, expert partner

(ConocoPhillips) achieved

3 well program agreed for Phase 1

Basin modelling complete – liquids rich

window and prospective drill targets

revealed

Drill rig secured in tight market, 3x drill sites

selected and prepared and drilling commenced

First well (Nicolay) completed with data analysis

underway

Second well (Gibb Maitland) to spud in December

Derisked ability to conduct in-ground exploration

Better understanding of geological settings of

Goldwyer shale starting to emerge

More data acquisition coming with future wells

Proven Goldwyer exists over 300m and is

hydrocarbon bearing

Merlinleigh

Project

Geochem program completed

Prospective gas window and drill

prospects identified

Native title negotiations advancing

Conversion of Special Prospecting Authority to

Exploration Permits

Native Title Agreement finalised

Partnership discussions commence

Progressed along exploration pathway

Approvals derisk project

Interest from potential partners provides farm-out

opportunities

Laurel Project

Farm-out 15% to Green Rock Energy

(GRK)

Lawford-1 well deepened. Shale at greater

depths than expected

Neighbouring Seven Lakes SPA awarded

to NSE and GRK

Airborne Gravity survey completed on time and on

budget.

Application to convert the Seven Lakes SPA into

an Exploration Permit (EP)

Buru exploration success within the Laurel

Formation at Valhalla, Paradise and Yulleroo

EP417 exploration commitments completed

Ability to high-grade areas for further exploration

activities by combining results from the survey

with existing well and seismic data

Greater certainty about gas bearing nature of the

shale

United States

Four wells producing

D&M reserves and resources report

confirms in place resources of 124.5BCF

wet gas and 3.6MMBO

Four wells producing

Horizontal well multi stage frac coordinated by

partners

Value crystalisation opportunities being assessed

Minor cashflow

Non-core asset

Potential to monetise investment

Corporate

Market capitalisation: $87m

Cash balance: $28m

FTE: 15

Market capitalisation: $98m

Cash balance: $63m

FTE: 28

Company growing in emerging sector

Funded to pursue opportunities and maximise

value from assets

Large Acreage Position in Strong, Growing Market

Substantial acreage position in multiple locations

West Australian focus – dominant land position with total

acreage of >14 million gross acres

High domestic gas prices (~$8+/GJ) with emerging channels to

market, including LNG

Growing infrastructure in Kimberley region with LNG

developments and large players positioning

Buru State Agreement provides certainty on infrastructure

and path to market for gas in the Canning

Liquids potential in both Goldwyer and Laurel projects

Merlinleigh project located on major gas infrastructure

Direct access to growing Midwest and Pilbara resource

development projects

Potential for onshore shale gas to offset and meet Domestic

Gas reservation requirements for offshore LNG

Emerging discoveries in Canning Basin, drilling activity set to

ramp up

Well Positioned for WA Energy Market

Contents

Corporate overview

Goldwyer Project

Merlinleigh Project

Other assets

Future activities

Goldwyer Project: Overview

45,000km2 (>11m gross acres) located in

Canning Basin, WA

Huge scale on global basis

World class resource could hosted

in < 5% of acreage

Dominant, well located acreage position

in Kidson sub-basin

Goldwyer is a marine shale providing

prospective liquids rich shale acreage

Early stage, remote exploration

Phase 1 drilling focussed on data

acquisition and analysis

World class partner in ConocoPhillips

providing financial and technical support

Open export LNG markets and growing

domestic market

Buru State Agreement provides pipeline

certainty and path to market for gas

No surface access issues with

landowners

TO relationships strong Large contiguous acreage position with the potential to

host a substantial hydrocarbon resource

Goldwyer Project: Why is it so attractive?

World class JV partner

Excellent geological

setting

Technical attributes

Scale – horizontal

and vertical

Multiple reservoir potential

Liquid prone

source rock

Goldwyer Project: The Proposition

The Goldwyer Project is early stage but has enormous potential scale

and has attracted a world class partner in ConocoPhillips

ConocoPhillips committed to initial 3

well exploration program

Targeting Goldwyer formation in

different geological settings within

the Kidson sub-Basin

Aiming to test maturity

window (ideally Ro 0.9 – 1.2)

Drilling focussed on data

acquisition to test hydrocarbon

generation, containment and

accessibility in the shale

Oil shows in historic wells to the

north with oil sourced from

Goldwyer in the Kidson sub-Basin

Kidson sub-Basin deserves to be

tested through Phase 1 drilling

11m acres – strong chance of world

class resource being present in

acreage

Phase 1 Data Acquisition and Analysis

Phase 1 Aim: Confirm Goldwyer prospectivity and secure COP commitment to Phase 2

program in 2013

Key Parameter Detailed Data Being Sought

Source rock quality TOC, kerogen type, maturity, condensate/gas ratios, rock evaluation

Reservoir quality Facies, GRI porosity, permeability, saturation

Containment Seal, faults, burial history, residence time

Brittleness Mineralogy, contiguous thickness, depth, pressure, stress regime

What Information Are We Looking For In Each Well?

What To Look Out For During Phase 1 Program

Coring program throughout Nita and Goldwyer formations

Core recovery and visible observations

Hydrocarbon indications (mud logs, core observations)

Confirmation of section thickness throughout Nita and Goldwyer

Electric wireline logs (reservoir information, hydrocarbon saturations)

Scientific analysis of core confirming key parameters

How good is the rock and what does it contain? (ie: source rock and reservoir quality)

How good is the container? (ie: how much is still in the rock)

How well does it break? (ie: can we break it to extract the remaining hydrocarbons?)

50-70 days

per well

60-90 days

per well

Phase 1 Well 1: Nicolay #1

First well in an early stage, data acquisition program

of three wells designed to better understand the

Goldwyer formation

Encouraging first well, majority of targets met,

supports Goldwyer potential

Continuous elevated gas shows across broad zones

of shale intersected (350m+ thickness)

Cores now undergoing detailed scientific analysis to

begin creation of initial shale database

Significant learning process underway

Pre Drill Milestone Achieved?

Complete drilling safely

Establish Goldywer thickness

Undertake large coring program

Hydrocarbon shows in mudlogs

Hydrocarbons in cores/shales

Acquire wireline logs

Maturity/rock properties ?

Phase 1 Well 1: Nicolay #1

Left: Ordovician

shale core with

evidence of

marine organic

matter

Above: Core handling at Nicolay #1 Above: On site desorption testing at Nicolay #1

Forward Program for Nicolay #1

Rig released from site

Core Analysis currently underway

Log analysis and interpretation underway

Integration of core data and log data is important

2 - 3 months before full data analysis is complete

Phase 1 Forward Program

Data acquisition

program to continue via

drilling, coring and

logging

Gibb Maitland #1

located in the central

Kidson sub-Basin

Blatchford #1 located in

the eastern flank of the

Kidson sub-Basin

All heritage and

environmental

approvals in place for

both locations

Access tracks and drill

pads prepared for rig

arrival

Scientific analysis

underway on Nicolay

cores

Logs being interpreted

and integrated with

other core data Three initial drilling locations across the Kidson sub-Basin designed

to acquire data to understand the regional play in more detail

The Second Well: Gibb Maitland #1

Gibb Maitland targeting

organic rich shales in

good setting

Central basin position

provides better chance

of richer organic matter

Down dip from

shallower historic wells

with oil shows

Updip from deeper wells

with dry gas

Drill site fully prepared

with access road, drill

pad, accommodation

and airstrip completed

Scheduled to spud

December 2012

Approx 60 days to drill

and complete

Gibb Maitland #1 will be located in the central part of the Kidson sub-

Basin with offset wells demonstrating oil and gas in the Goldwyer

Contents

Corporate overview

Goldwyer Project

Merlinleigh Project

Other assets

Future activities

Merlinleigh Project Overview

100% equity in 5,500km2 (1.36 million gross acres) in

onshore Carnarvon Basin

Ideal location for domestic gas market

Immediately adjacent to Dampier to Bunbury

pipeline infrastructure

Domestic gas prices currently ~ $8+/GJ

Situated between Pilbara and Mid West

growth regions

Attractive targets between 2,000m and

2,500m depth

Prospective for both unconventional and

conventional gas

Accessible and low cost support infrastructure

Good working relationship with key stakeholders

Native Title Agreement signed with Gnulli

people

Unique project, early commercialisation potential

Large equity position

Strategically well positioned

Merlinleigh Project: Significant Potential

Significant unconventional and conventional resource

potential

Unconventional: 33 TCF potential GIP in

mature shales across 1,100km 2 zone

Conventional: up to 1.2 TCF GIP across 4 key

prospects

Priority interest zone for regional resource play

refined to 1,100km2

Native title negotiations concluded and exploration

permits now granted (EP481 and EP482)

Positive response to partnering opportunities

Negotiations ongoing

Increased cash balance assisting to negotiate

best deal metrics to maximise shareholder

value

Heritage and environmental work well advanced

ahead of 2013 program

Community engagement process underway

The Merlinleigh Project represents an attractive opportunity with scale and

access to domestic gas infrastructure

Merlinleigh Project: KR #1 Well Analysis

KR #1 well analysis demonstrates encouraging

evidence of working petroleum system

Proven hydrocarbon generating basin and presence

of good quality source rocks

Good gas shows in the KR #1 well with gas

bleeding from multiple cores

Hydrocarbons present over 800m+ section

from 1,200m to 2,000m

Onset of wet gas generation below 1,100m

Primarily gas targets but evidence for liquids

potential also exists

Shale formation present across acreage at attractive

depths

Primary shale target up to 300m thick

Average TOC of 6% - 7% and up to 16% in

Wooramel group

Encouraging reservoir sands for conventional targets

~12% porosity with hydrocarbon charge

KR #1 well analysis provides encouraging

evidence of working petroleum system

Contents

Corporate overview

Goldwyer Project

Merlinleigh Project

Other assets

Future activities

Laurel Project

Located in Canning Basin, WA south-

east of Fitzroy Crossing

Large footprint in Fitzroy Trough

Attractive and underexplored

EP417: 3,150km2 equivalent to

778,000 gross acres (50% NSE)

Seven Lakes SPA: 2,750km2

equivalent to 680,000 gross

acres (60% NSE)

Aerial gravity survey completed

Survey data to be interpreted and

integrated with the existing database

High-grade regional target areas

for future exploration

The Buru acquisition of Laurel acreage

provides credible valuation marker

Cash consideration of $36m

Underexplored exploration

acreage

The Laurel Play will continue to emerge as an exciting

regional play on the back of Buru/Mitsubishi exploration

US Conventional Project

The Colorado County project is located in

the onshore Texas Gulf Coast region

3x Heintschel field wells and Joann #1 well

production established

2011 independent reserves report provides

support for field size

2P reserves of 7.65 Bcf gas and

0.63 MMBO (net to New Standard)

Gross in-place hydrocarbons of

124.55 Bcf wet gas and 3.56

MMBO

JV partners drilled horizontal well and

conducted multi stage frac (NSE non

consent)

Water incursion remains an issue

Performance being monitored

Forward appraisal and development plans

being agreed for Heintschel field

Value crystalisation opportunities continue

to be assessed

New Standard’s Colorado County Project has established

production with significant potential development upside

Contents

Corporate overview

Goldwyer Project

Merlinleigh Project

Other assets

Future activities

12 Month Activity Schedule

4Q 2012 1Q 2013 2Q 2013 3Q 2013

Goldwyer Project

Nicolay #1 drilling, coring

and logging

Gibb Maitland #1 drilling,

coring and logging

Blatchford #1 drilling,

coring and logging

Scientific core analysis

Diagnostic fracture

injection tests (DFITs)

Merlinleigh Project

Partnering assessment

Planning and preparation

for exploration program

2013 exploration program

(possible well planning)

Laurel Project

Regional studies and

ongoing BRU program

Possible Activity Note: Above dates, timelines and activities are indicative only, are subject to various

approvals and are subject to change without notice

Rig Move

Assessing New Opportunities

Attractive exploration

or development

project

Early stage, onshore projects with low

entry costs

Tight gas and oil

Large scale

Securable land

positions

Stable Government

Manageable drill costs

Large project

equity to maximise farm out options

Known or reputable operators

with relevant

experience

Evaluation criteria for new

projects that provide entry

level opportunities for New

Standard to progress along

value creation pathway

Opportunity identification and

assessment remains a key

growth platform for New

Standard

Project Execution Risk Management

Execution risk Risk mitigation and management

Native title approvals New Standard acknowledges and respects the rights of Traditional Owners of the land on which it operates

Employment of specialist heritage manager, implementing an Indigenous Engagement Plan

Native Title Agreements and Heritage Clearances complete

Weather windows Contingency and business continuity planning

Contractual terms incorporating appropriate force majeure where possible

Cost inflation Numerous firsts being undertaken but learning from exploration activities being applied

Contract positions being utilised where appropriate

Capacity constraints Access global shale expertise and experience via ConocoPhillips partnership

MB Century Rig #14 secured for a firm well program with options over additional wells

Public concerns over

environmental impacts of

reservoir stimulation

Commitment to engagement and transparency in reporting

Foundation party to WA Onshore Gas Code of Practice

Advantages of shale over coal seam gas

Environmental regulation Working with pro-development Government to meet environmental standards

Regulatory clarity received from recent Environmental Protection Authority bulletin and Department of Mines &

Petroleum guidelines (and content of announced update to those guidelines)

Expert Health, Safety and Environment Manager appointed

Capital availability New Standard’s cash position is approx. $63m (30/10/12)

Level of protection from possible future economic market turmoil

Funded for exploration programs (alongside JV contributors)

Production infrastructure Buru State Agreement supports pipeline development

Gas demand from industry will sustain pipeline

Merlinleigh Project is next to Dampier Bunbury Natural Gas Pipeline


New Standard Energy’s strategic position:

Focused on seizing the shale gas advantage in Australia

Leading shale acreage position in the Canning and

Carnarvon Basins

Functional, scalable business model

Utilising the expertise of ConocoPhillips in frontier

exploration program

Large project equities provide substantial leverage to

exploration success

25–100% equity in large scale Goldwyer, Laurel

and Merlinleigh projects

Potential exists for liquids rich targets

Attractive WA domestic and export gas markets

Exploring subsurface and commercial opportunities

Well funded and near term exploration program

Multiple potential activity centres

Ongoing opportunity evaluation

Important Notice

This document has been prepared by New Standard Energy Limited ABN 20 119 323 385 (“New Standard")

This presentation contains certain statements which may constitute "forward-looking statements". It is believed that the expectations

reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions

which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency

fluctuations, drilling and production results, reserve and resource estimates, loss of market, industry competition, environmental risks,

physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and

regions, political risks, project delays or advancements, approvals and cost estimates.

All of New Standard’s operations and activities are subject to joint venture, regulatory and other approvals and their timing and order

may also be affected by weather, availability of equipment and materials and land access arrangements, including native title

arrangements. Although New Standard believes that the expectations raised in this presentation are reasonable there can be no

certainty that the events or operations described in this presentation will occur in the timeframe or order presented or at all.

No representation or warranty, expressed or implied, is made by New Standard or any other person that the material contained in this

presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of New Standard, its

officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in

this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any

person as a consequence if any information in this presentation or any error or omission there from. Neither New Standard nor any other

person accepts any responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation

or any other information made available to a person nor any obligation to furnish the person with any further information.

It is not intended as an offer, solicitation or recommendation with respect to the purchase or sale of any securities. Prospective investors

should make their own independent evaluation of an investment in New Standard including without limitation, seeking professional

advice.

Competent Person: The information in this presentation has been reviewed by Dr Mark Hagan (BSc Hons, PhD) who is a Petroleum

Geologist and Geophysicist with more than 35 years experience in the industry. Dr Hagan is Technical Director of New Standard Energy

and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Sam Willis – Executive Director Dr Mark Hagan – Technical Director

March 2008

For Further Information Contact:

Sam Willis

Managing Director

ph: +61 8 9481 7477

web: www.newstandard.com.au

NEW STANDARD ENERGY


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