Overview of the Merged Group

Brings together two highly complementary asset portfolios which provide a strong platform for future growth

Diversified upstream portfolio of Australasian offshore and onshore production

ARC Shareholders will have exposure to high quality, low risk production projects including BassGas, Cliff Head, the Tui oil fields offshore New Zealand and the Casino and Henry gas projects in the offshore Otway Basin

ARC Shareholders will have exposure to potential upside from an expanded portfolio of near-term appraisal and exploration opportunities

The Transaction will create a leading Australian mid-tier oil and gas producing company with an expected market capitalisation of greater than $2 billion and a diversified reserves base of more than 70mmboe

1. 10% following completion of farm-out to Cosmo Energy Exploration & Development Ltd (expected to occur between July and October 2008).

Merged Group's reserves base provides significant unhedged exposure to current record oil prices.

 

1. Estimated as at 31 December 2007, Gas: 6 PJ = 1 mmboe; LPG: 86.2 kt = 1 mmboe
2. Oil, condensate and LPG are all exposed to oil prices. As at 31 December 2007, ARC hedged approximately 0.97 mmbbl oil, which equates to less than 2% of the Merged Group's total 2P reserves estimated as at 31 December 2007.