AREA MAPS AND INFO

Queensland, Australia and the Natural Gas Opportunity

According to the Australian Gas Association, Australia contains currently 1.6% of the world's total natural gas reserves, or about 3,995 Billion Cubic Metres (bcm). Looking at the below map, Queensland provides reserves in both conventional natural gas and through new gas sources such as coalbed methane. Much of Queensland's natural gas has been harvested through conventional drilling technology. Ausam Energy Corporation plans to extract more gas remaining in the area through underbalanced drilling techniques. Ausam Energy will work with leading Australian energy companies such as Origin Energy to develop, produce and get this resource to high demand markets in Eastern Australia.

Where will the gas go?

Looking at the below map, one can see a web of pipeline infrastructure linking Queensland gas fields to major urban centres in Eastern Australia. Ausam Energy Corporation intends to capitalize on the growing industrial and consumer demand for electricity in Australia. According to the Australian Gas Association, 22.5% of Australia's electricity is expected to be generated from natural gas by 2020, a significant increase from the 10.5% level seen in the early 1990s. With Australia moving in a more greenhouse gas friendly direction by moving away from new coal fired electricity generation, continued market demand for electricity is expected to fuel greater demand for natural gas as a feedstock.

Ausam Energy in Queensland: Permit, Farm-in and Other Opportunities

Ausam Energy Corporation (Ausam Energy) is engaged in the development and exploration of oil and gas prospects in the Surat/Bowen Basin of Queensland. The company also owns exploratory prospects in Victoria and Western Australia. The company presently owns interests in approximately 2.5 million gross acres (1.5 million net acres) of onshore lands covering a select range of natural gas exploration and development targets.

In Queensland, properties include:

• Weribone and Weribone East (ATP 470P) 68,500 acres
• Central Surat Basin (ATP 754P) 679,151 acres
  • Ungabilla, Coomrith, Farawell North, Farawell, Cockatoo West, Cockatoo, Flinton, Flinton South, Aurifer Downs, East Side
• Namarah and Parknook (PL71 Farm-in) 33,104 acres
• Bainbilla (ATP 471P) 101,937 acres
• Bellbird West-1 (ATP 552P) 10,650 acres

Ausam Energy in Victoria and Western Australia: Permit, Farm-in and Other Opportunities

While Ausam Energy's core area prospects are adjacent to producing gas fields and near or within previously drilled gas fields in the Surat/Bowen Basin, the company has also assembled several lower priority prospective exploratory natural gas prospects in Victoria and Western Australia. These properties, although very prospective for significant gas reserves, are more exploratory and will be investigated over a longer term than the Surat/Bowen Basin targets. Once the company selects a joint venture partner for the Warragul prospect in Victoria, preliminary exploration work including a seismic survey will begin.

In Victoria and Western Australia, properties include:

• Warragul (PEP 166) 877,000 acres

• Warro (EP 321 & EP 407) 950,500 acres
• Erregulla (EP 23) 147,706 acres