Operations :: Ausam Properties

AUSAM PROPERTIES

Ausam Energy Corporation (Ausam Energy) is engaged in the development and exploration of oil and gas prospects in Queensland, 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.

Properties Map - 563 KB

Properties include:

Queensland

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
Downlands and Downlands East (PL119 Farm-in) 5286 acres
Downlands Pipeline license
Bainbilla (ATP471P Farm-in) 101,937 acres
Bellbird West-1 (ATP 552P) 10,650 acres

Victoria

Warragul (PEP 166) 870,420 acres

Western Australia

Warro (EP 321 & EP 407) 585,637 acres (currently under contract for sale)

The reserves and permit interests that will be held by Ausam Energy have been valued by Gilbert Laustsen Jung Associates Ltd. (GLJ) in an independent report dated April 28, 2006.

The following table is a summary of GLJ's assessment of reserves and the value of those reserves as calculated in their report:

Marketable Reserves
Total Proved plus Probable
Gas (MMcf)
Total Company Interest
899
Working Interest
899
Net After Royalty
803
Natural Gas Liquids (Mbbl)
Total Company Interest
7.6
Working Interest
7.6
Net After Royalty
6.8
Oil Equivalent (Mbbl)
Total Company Interest
157
Working Interest
157
Net After Royalty
141
BEFORE TAX PRESENT VALUE (M$)
0%
1,229
5%
853
8%
694
10%
607
12%
532
15%
439
20%
320
FIRST 6 YEARS BEFORE TAX CASH FLOW(M$)
2006
0
2007
-415
2008
349
2009
258
2010
199
2011
159

The following table is a summary of GLJ's assessment of undeveloped land value assignments for each permit as of March 31, 2004, as determined in their report:

State
Permit
Equity
Net Value ($ AU)
Net Value
($ CDN)¹
Queensland
ATP 470P
45%
3,860,882
3,281,750
PL 71
20%
3,000,000
2,550,000
ATP 682P
25%
849,688
722,235
ATP 754P
50%
2,325,000
1,976,250
Victoria
PEP166
50%
830,000
705,500
Western Australia
EP 23
100%
1,250,000
1,062,500
EP 321/407
92.5%
2,000,000
1,700,000
Total
14,115,500
11,998,235

Notes:

Based on an exchange rate of 0.85 $CDN/$AU as of December 31, 2005.

Southeast Queensland - Basin Activity

Surat Basin - 2.6 MB

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 will begin.

Ausam Energy has entered into an agreement with Mosaic and Santos under which Ausam can earn up to 35% interest in PL 119 (Downlands and Downlands East gas fields), the Bainbilla Block of ATP 471P (Brynog Oil prospect) and PPL 58 (Downlands pipeline licence), all located in southeast Queensland's Surat / Bowen Basin. For more information on Mosaic Oil please go to their website at www.mosaicoil.com.