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RESERVES AND RESOURCES

CERTIFICATION
FOR THE SINPHUHORM GAS FIELD
AS OF 1ST JANUARY, 2012

Prepared by: Prepared for:

RPS Energy Consultants Limited Coastal Energy Company
#03-01 China House, 19 China Street, 3355 West Alabama Street,
Far East Square, Suite 500, Houston, Texas
Singapore 049561 77098
T: +65 6499 0060
F: +65 6499 0069
E: RPSSingapore@RPSGroup.com
W: www.rpsgroup.com

Report No: ECV1837.03
Version/Date: Rev0 / 29th March, 2012

Unit #03-01 China House, 19 China Street, Far East Square, Singapore 049561
T +65 6499 0060 F +65 6499 0069 E RPSSingapore@RPSGroup.com W www.rpsgroup.com

Mr. Jerry Moon, Project Ref: ECV1837.03
Coastal Energy Company,
3355 West Alabama Street,
Suite 500,
Houston,
Texas 77098
29th March, 2012
Dear Jerry,

EVALUATION OF COASTAL’S RESERVES IN THE SINPHUHORM GAS FIELD
LICENCES EU1 AND E5N, ONSHORE THAILAND
AS OF 1ST JANUARY, 2012

In response to your request, RPS Energy Consultants Limited (“RPS”) has completed an update of the
independent evaluation of the Reserves and value for the Sinphuhorm Field (“the Property”) in which
Coastal Energy Company (“Coastal”) has an interest. We have estimated Proved, Probable and
Possible Reserves as of 1st January, 2012. The Reserve estimates shown in this report are estimated in
accordance with requirements of the London Stock Exchange and Toronto Ventures Exchange (“LSE”
and “TSX”) including Canadian National Instrument 51-101 and the Reserve and Resource definitions
of the Canadian Oil and Gas Evaluation Handbook. RPS was mandated to undertake this work with the
signing of the Letter of Engagement (“LoE”) by Coastal on 29 th December, 2011.
The work was undertaken by a team of petroleum engineers, geoscientists and economists and is based
on data supplied by Coastal. The report has an effective date as of 1st January, 2012. Our approach
has been to review the production and cost data supplied by Coastal for reasonableness and then
independently estimate ranges of recoverable volumes. We have estimated the degree of uncertainty
inherent in the measurements and interpretation of the data and have calculated a range of recoverable
volumes, based on predicted field performance for the property and the contracted gas sales for
Sinphuhorm.
RPS has included in Probable (P2) Reserves and Possible (P3) Reserves volumes that can be reasonably
expected to be sold under the existing Gas Sales Agreement (“GSA”). The GSA limits the volumes
that may be monetized and allows for a Daily Contract Quantity (“DCQ”) of 108 MMscfd, subject to a
“Buyers Maximum DCQ Reduction Amount”. This DCQ Reduction allows the Sinphuhorm DCQ to
be reduced in the early years in order to allow for preferential supply to the GSA from the nearby
Nam Phong field. The exact Sinphuhorm DCQ reduction amounts will depend on the decline of the
Nam Phong field. The DCQ reduction, as estimated by the Nam Phong Field production forecast
provided by Coastal, has been used to estimate the Reserves for the Sinphuhorm property.
Gross and Net Working Interest Reserves attributable to Coastal are summarized in Table I.
We have taken the working interest that Coastal has in the Property as presented by Coastal and we
have not investigated nor do we make any warranty as to Coastal’s interest in the Property.
The report shows the Reserves in barrels of oil equivalent (“BOE”) for Sinphuhorm using a conversion
factor of 6.0 Mscf per BOE as per the SPE BOE calculation guidelines. Readers should note that BOE’s
may be misleading, particularly if used in isolation.

RPS Energy Limited (Singapore Branch): Registered in England No. 146554. Centurion Court, 85 Milton Park, Abingdon, Oxfordshire OX14 4RY, United Kingdom.
Branch registered in Singapore UEN: T07FC7076E

.

114.105 14.143 1.859 1016 552 343 237 178 671 368 231 161 122 Notes: (1) Using 6.302 105.926 89. Please see report (Section 2.048 44. This is due to the lack of demonstrated commerciality for the tighter.565 1. ECV1837.047 7.11.765 222 17 14 11 9 8 12 9 8 6 5 Probable 3.713 4.305 274 215 173 144 122 186 147 119 99 84 Probable 612.926 612.777 70 52 39 30 24 46 34 26 20 16 Total Proved 86.750 679 303 148 79 45 444 198 97 52 30 Total Proved + Probable 1.663 221 176 145 122 105 152 122 101 85 74 Proved Developed Non-Producing Proven Undeveloped 14.960 208 166 136 115 99 143 115 95 80 69 Proved Developed Non-Producing Proven Undeveloped 82.344 169 13 10 9 7 6 9 7 6 5 4 Proved Developed Non-Producing Proven Undeveloped 422 422 53 4 3 2 2 1 3 2 2 1 1 Total Proved 2. unfractured and undolomitised portions of the structure.690 43.428 261.419 725 323 159 85 49 474 212 104 56 32 Total Proved + Probable 191.349 22.1) for details.440 291 228 184 153 129 198 156 127 105 90 Probable 105.101 10.055 953 517 321 222 167 630 345 216 151 114 Natural Gas Liquid (Mbbl) Proved Developed Producing 2. 2012 Table 1 Summary Statement of Coastal’s Reserves for the Sinphuhorm Gas Field as of 1st January.529 343.455 956.105 1. Royalty is treated as tax and paid in cash. Note that the majority of the Undeveloped Reserves are at risk of being re-classified as Contingent Resources at the end of 2012. Thailand is a Tax and Royalty regime.589 32.153 59.302 15.455 164. and thus.148 3.345 66 49 37 29 23 43 32 24 19 15 Total Proved 501.148 461 46 21 10 6 3 30 14 7 4 2 Total Proved + Probable 5.0 Mscf/BOE Net means net entitlement as per the Reserve and Resource definitions of the Canadian Oil and Gas Evaluation Handbook.913 683 63 34 21 15 11 42 23 14 10 8 Grand Total (MBOE)(1) Proved Developed Producing 72. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. 2012 Remaining Net Present Values (US$ Million) Ultimate Reserves Product Classification Reserves Company Before Income Taxes After Income Taxes Gross Net 0% 5% 10% 15% 20% 0% 5% 10% 15% 20% Non-Associated Gas (MMcf) Proved Developed Producing 419. attributable Net Entitlement Share is reported as Coastal’s working interest volumes including the volumes associated with Royalty.03 iii .616 133.101 82.942 5.

2012 Table 2 Summary Statement of Coastal’s Contingent Resources for the Sinphuhorm Gas Field as of 1st January. The 70% presented above would relate to the Low.493 70% Coastal Net Working Interest Basis Net Working Interest 12.0% 16.732 70% Oil and Condensate (Mbbl) 89 485 3.520 70% Oil and Condensate (Mbbl) 708 3. Volumes remain un-contracted and are available for sale pending a GSA.2% 70% Gas (MMscf) 17.142 729.142 729. rather than kind. 4) Coastal’s net entitlement is the same as their net working interest share as the royalty is paid in cash.378 83.463 24.968 70% Notes: 1) The Low Estimate relates to recoverable volumes from the currently producing wells that are not assigned to the Nam Phong Power Plant GSA. If these volumes were contracted to a GSA.504.0% 16. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. RPS has estimated that all the volumes lie within the EU1/E5N production concessions. ECV1837.378 83. Best and High Estimate volumes.03 v . 2012 Low Best High Chance of 1) 2) 2) 3) Estimate Estimate Estimate Commercialization Gross (100%) Licence Basis Gas (MMscf) 137. then the contracted volumes would be re-classified as Proved Reserves. 2) The Best and High Estimates include all recoverable sales gas and condensate volumes that have not been classified within the Reserves relating to the current GSA and the 15 year GSA extension periods.968 70% 4) Coastal Net Entitlement Interest Basis Net Entitlement Interest 12. 3) The Chance of Commercialization relates to the chance of the reported volumes being commercialized in to a GSA.6% 14.874 4.732 70% Oil and Condensate (Mbbl) 89 485 3.922 593.6% 14.2% Gas (MMscf) 17.

...............................1  Gas-Water Contact .....................8  Production History ...............1  Further Development Plans ..5  Petrophysics ........................9  Well Production Testing .................................................................................................................................... 9  2.............10  Fluid Properties ................................................................... 15  2...............................1  2  Concessions EU1........ 27  3............................................................7  Reservoir Pressure and Temperature ................. 12  2... 12  2.....................................2  Sinphuhorm Gas Price ....................... 2012 Table of Contents RESERVES AND RESOURCES CERTIFICATION 1  Introduction ......................................................................4  Sinphuhorm Structure ..................................................................6  Static Volumetric Estimates ................................................... 7  2...............................................................................................................11  Material Balance Analysis ..............................................................................................6.............. 5  2....................... 28  3........................................................................6...........................................2  Petroleum System ............3  Gas Contract and Prices .........................................................2  EUR Volumes ...1  Sinphuhorm Contract Volumes ................................................................................................... 9  2........................................................................................... 9  2...................................................................................31  5  NI 51-101 Reporting of Reserves .................. 28  3............................................ 15  2.........................................................................27  3......................2  Indosinian-1 Unconformity Truncation ......4  Uncontracted Gas and Condensate Volumes ...................................................... 28  4  Resource Statement .11.................................................... 10  2...............................................................................1  Thai Concession Terms .................................... 6  2...... 5  2.......2  Capital and Operating Costs ............................................................................1  “Mapped” versus “Connected” GIIP Estimates...............................................3  Database ....................................................................................................................................................... 8  2........................................................................................................................................................................................................................... 7  2........................12..............................................................................................................................................12...................................................12  Recoverable Hydrocarbons .....................................................................................................................................3...............................3  Monte Carlo Probabilistic Simulation ............................6.................... RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.............................03 vii ..................................................39  Appendices .................................................................................................. 27  3...........3  Resource Classification .................................................. 10  2............................ 8  2....................................... 28  3.................................................. 6  2.............................................................................................. 18  3  Commercial Evaluation ...........................................3............................................................................................. E5N and L15/43 ..........................................12.............................................................................................................5  2........................................................... 13  2...........................12...................................................................................................................................................................................................1  Overview .......................... 7  2........................................................................45  Appendix I: Glossary of Technical Terms Appendix II: Reserves and Resources Definitions and Guidelines ECV1837.................................................3  Sinphuhorm Unitisation ...........................3.............................

42  Table 5-6 – Sinphuhorm Field Remaining Gas Reserves Reconciliation.................................................................................................................................. 32  Table 4-4 – Sinphuhorm Field Gross Condensate Reserves Reconciliation ......................... 2012 39  Table 5-2 – Total Future Net Revenue Undiscounted Forecast Prices and Costs as of 1st January.............................................. 14  Table 2-8 – Sinphuhorm Gas Field EUR (Bscf....... Sinphuhorm Gas Field (Bscf..... 41  Table 5-5 – Estimates of Proved Plus Probable Reserves and Net Present Values for the Sinphuhorm Field (as of 1st January................................................................... Coastal’s Net Entitlement ........ 40  Table 5-3 – Sinphuhorm Field Volumetric Reserves Estimates Reservoir Data ........................................................................................................................................................................................................ 2012) .......... 16  Table 2-10 – Contracted and Uncontracted Gas and Condensate Volumes ............................................................................................... 43  Table 5-8 – Sinphuhorm Field Remaining Gas Reserves Reconciliation...................................................................................................... 33  Table 5-1 – Sinphuhorm Field Summary of the Evaluation of the Petroleum Reserves as of 1st January............................................................................... 100% Basis)................................... 5  Table 2-2 – Sinphuhorm GIIP (Bscf....................................... 17  Table 2-11 – Uncontracted Recoverable Sales Gas Volumes .................................................................................. 2012) ...................................................................... 100% Basis) ................................................................................ 10  Table 2-4 – The Latest Reservoir Pressure Measurements ........... 2012 ......................... 31  Table 4-3 – Sinphuhorm Field Gross Sales Gas Reserves Reconciliation ........ Coastal’s Net Entitlement ...................... 100% Basis .................... 15  Table 2-9 – Sinphuhorm Gas Sales Agreement – DCQ and DCQ Reduction ............ 27   Table 3-3 – Estimated Unitised Share for the Sinphuhorm Gas Field .......................... 44  Table 5-9 – Sinphuhorm Field Remaining Condensate Reserves Reconciliation............. 29  Table 4-1 – Sinphuhorm Field Gross Reserves Estimate as of 1st January........................ 18   Table 3-1 – Principal Commercial Terms ........................... 32  Table 4-5 – Sinphuhorm Field Coastal Net Company Sales Gas Reserves Reconciliation (Forecast Prices and Costs) ..................................................................... 2012 ...... 44  ECV1837............................................................. 12   Table 2-6 – Differences between the “Mapped” and “Connected” GIIP Estimates....... 100% Basis) ........................................... 40  Table 5-4 – Estimates of Proved Reserves and Net Present Values for the Sinphuhorm Field (as of 1st January............................ 33  Table 4-6 – Sinphuhorm Field Coastal Net Company Condensate Reserves Reconciliation (Forecast Prices and Costs) ....................................................... 11  Table 2-5 – Effective “Connected” Estimates of GIIP....................................................................... 12  Table 2-7 – Drilling Infill and Appraisal Wells and Wells Allocations for Reserves .............. 31  Table 4-2 – Sinphuhorm Field Coastal’s Net Entitlement Reserves Estimate as of 1st January........................... 2012 ..................................... 27  Table 3-2 – Forecast CAPEX and OPEX (US$ Million....03 viii ........................................................................................................... 2012) for the Sinphuhorm Development ............ 43  Table 5-7 – Sinphuhorm Field Remaining Condensate Reserves Reconciliation...................................................... RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY............................................................. Sinphuhorm Gas Field (Bscf............................................... 8   Table 2-3 – PH-5 Welltest Summary ......... 100% Basis ................................................................................................................................................................. 2012 Tables Table 2-1 – Sinphuhorm Participants and their Working Interests ................................................ 100% Basis) .......

............................. 38  ECV1837........................................................................................................................................................................................................................... 19  Figure 2-2 – Onshore Thailand Stratigraphic Column ................. 2012 Figures Figure 1-1 – Location of Coastal’s Onshore Thailand Concession ...................................................................... 35  Figure 4-2 – Sinphuhorm Gas Field Condensate Production Profile....................................................................03 ix ......................................................................... 23  Figure 2-6 – Sinphuhorm Gas Field FWHPs ........ 26  Figure 4-1 – Sinphuhorm Gas Field Gas Production Profile ........................................................................................................................................................................... 21  Figure 2-4 – Sinphuhorm Gas Field Reservoir Pressure .......................... 24  Figure 2-7 – Sinphuhorm Gas Field P/Z GIIP Estimate (RPS) ........................................................................................ 25  Figure 2-8 – Sinphuhorm Gas Field P/Z GIIP Estimates (Operator) ................................................................................................... RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY........................................................................ 36   Figure 4-3 – Sinphuhorm Gas Field Gas Production Forecast ..... 22  Figure 2-5 – Sinphuhorm Gas Field Production History ......... 3  Figure 2-1 – Location of the Sinphuhorm Gas Field and Concession L15/43 ........................................................................ 37  Figure 4-4 – Sinphuhorm Gas Field Gas Production Forecast ... 20  Figure 2-3 – Sinphuhorm Gas Field Top Structure Map (RPS) .........................................................................

5. Further. Geological Review. ECV1837. based on accepted standards of professional investigation. but is subject to generally recognized uncertainties associated with the interpretation of geological. taxation and other regulations that currently apply to these interests. Proved plus Probable (“2P”). 4. Gas Sales Agreement and Production/Cashflow Forecasting. 3. Coastal has engaged RPS Energy Consultants Limited (“RPS”) to perform a Reserves and Resources Update for the Sinphuhorm Gas Field. financial interest relationships or encumbrances related to the property. The evaluation presented in this report reflects our informed judgment.1% interest in APICO LLC’s (“APICO”) share. be read in its entirety. we also highlight any red flags or items of material interest to the Lenders. This evaluation covers the hydrocarbon Reserves and Contingent Resources associated with Coastal’s interest in the Sinphuhorm Gas Field (the “Asset”. The evaluation has been conducted within our understanding of petroleum legislation. It presents our opinions on whether the existing studies. Our estimates of Reserves and Resources are based on data provided by Coastal. models and estimates are reasonable and appropriate. particularly one involving future performance and development activities may be subject to significant variations over short periods of time as new information becomes available. 6. This report relates specifically and solely to the subject Property and is conditional upon various assumptions that are described herein. currently in the exploration phase (L27/43 and L15/43 at 36. It should be understood that any evaluation. without independent verification. participates in two production licenses. The Reserve estimates shown in this report are estimated and presented in accordance with requirements of the London Stock Exchange and Toronto Ventures Exchange (“LSE” and “TSX”) including Canadian National Instrument 51-101 and the Reserve and Resource definitions of the Canadian Oil and Gas Evaluation Handbook. the accuracy and completeness of this data. Issue of the final Reserves and Resources Update Report. geophysical and engineering data. The Reserves Evaluation of the Asset followed the Scope of Work as agreed by Coastal and RPS:  Sinphuhorm Gas Field Review 1. EU1 and E5N (at 12. 2. RPS has been guided by the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System (“PRMS”) in assessing the volumes. RPS is not in a position to attest to the property title. The deliverable is a Formal Reserves Update Report Letter for the Asset. this report. Proved plus Probable plus Possible (“3P”) Reserves and the Contingent Resources. through its 36. In addition to documenting the methodology used for RPS’s independent analyses and checks. 2012 1 Introduction Coastal. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. We have accepted. therefore. Production Data Review. Figure 1-1). The report represents RPS’s best professional judgment and should not be considered a guarantee or prediction of results.1% Working Interest). Estimation of the Proved (“1P”).6% Working Interest) and two concessions. However. This report was provided for the sole use of Coastal and their corporate advisors on a fee basis.03 1 . This report must. Further Field Development Review.

2012 RPS has previously reviewed the Resources for this Asset for Coastal. 2010 (Project ECV1658). evaluating the Reserves as of 1st July. 2010.  “Salamander Reserves Statement for the Sinphuhorm Field” dated 19th January.  “Evaluation of APICO LLC’s Reserves in the Sinphuhorm Gas Field. evaluating the Reserves and Contingent Resources as of 1st January. 2011. 2011 (Project ECV1725).  “Coastal Energy Due Diligence for the Sinphuhorm Field” dated 29th October. 2011 (Project ECV1666). ECV1837.  “APICO LLC Resource Statement for the Sinphuhorm Gas Field” dated 24th November. evaluating the Resources as of 1st July. Salamander and APICO in the reports:  “Salamander Reserves Statement for the Sinphuhorm Field” dated 20th October. 2011. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. 2011. 2011 (Project ECV1764). evaluating the reserves as of 1st January.  “Salamander Reserves Statement for the Sinphuhorm Field” dated 23rd September. 2011. Licences EUI and E5N. 2011 (Project ECV1738). evaluating the Reserves as of 1st July.  “Coastal Energy Sinphuhorm Gas Field Reserves Update” dated 3rd March. 2010. 2010 (Project ECV1665).03 2 . 2010 (Project ECV1705). evaluating the Reserves and Contingent Resources as of 1st July. evaluating the Reserves as of 1st January. Onshore Thailand” dated 14th June. 2010.

03 rpsgroup. E5N) Current Coastal Concession L15/43 outline Original Coastal Concession L15/43 outline Current Coastal Concession L27/42 outline Figure 1-1 – Location of Coastal’s Onshore Thailand Concessions ECV1837. 2012 North Phu Horm L15/43 EU1 Sinphuhor Sinphuhorm m EU1 E5N L15/43 E5N L27/43 Nam Phong Scale 0 (km) 25 Map supplied by APICO Sinphuhorm Gas Field (Concessions EU1.com . RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.

000 km2.1% Working Interest).6% interest in APICO’s share. ECV1837. E5N and L15/43 2.0* - APICO LLC 35. 2012. the participants of the concession were as presented in Table 2-1: Table 2-1 – Sinphuhorm Participants and their Working Interests EU1 and E5N L15/43. 2034. The structure straddles the two production licenses of EU1 and E5N. which represents the main collision of Indochina with its neighbours. 2034. 2012 2 Concessions EU1.2 Petroleum System The Khorat Plateau covers an area of about 170.03 5 .  Partially dolomitised carbonates.1%. APICO owns 100% of the L15/43 concession and is Operator. and are truncated by. The Thai authorities mandated the change of name from Phu Horm to Sinphuhorm. The Mid Permian Pha Nok Khao Formation platform limestones and dolomites are the principal reservoirs.1) PTT E&P 20. which has historically been referred to as the Phu Horm Field. The sedimentary sequence consists of an initial rift sequence of Carboniferous to Triassic age sediments. APICO own a 35% non-operated working interest in the EU1 and E5N concessions. currently in the exploration phase (L27/43 at 36. and appears to extend southwards into the Block L15/43 (Figure 2-1). the major Indosinian-1 Unconformity. The two sequences are separated by a regional unconformity. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.0 100. L27/43 Participants (%) (%) Hess Thailand 35. and a “sag” sequence of Late Triassic to Cretaceous age sediments. onshore Thailand and are shown in Figure 1-1. EU1 and E5N and three concessions. The Sinphuhorm production license extends until 19th May.000 m above sea level. These are immediately below. the Indosinian-1 Unconformity. participates in two production licenses. as in the Sinphuhorm Gas Field.7% and L15/43 at 36. As of 1st January. The Sinphuhorm Gas Field.635) (36.0 - *) denotes Operator of the concession 2. The proven hydrocarbon systems within Permian carbonates are:  Fractured massive carbonates contained within thrust-related structures. It is rimmed on its western and southern margins by an escarpment of mostly steeply dipping sediments that form cuestas rising from 600- 1.0* (of which Coastal) (12. was discovered by Esso in 1983 with the Sinphuhorm-1 well.0 - ExxonMobil 10. These are located in the Khorat Plateau. L13/48 at 21.1 Overview Coastal. The gas field has been on production since November 2006 and is subject to ongoing delineation and development activities. The principal petroleum system is within the Permo-Triassic and underlying Carboniferous (Figure 2-2). through its 12. as in the Sinphuhorm Gas Field. The field production licence expires on the 19th May.

enhancing porosity and permeability locally. New seismic was acquired in 2005 to the south of the Sinphuhorm. the Si That/Pha Nok Khao bedding plane also forms the décollement surface for a low angle thrust that trends NE-SW. Production and well test data were provided for all producing and tested Sinphuhorm wells. Triassic gas-prone lacustrine shales and coals. Both of these wells are still being evaluated for future stimulation operations. It is evident that two key horizons form the closure across the majority of the Sinphuhorm structure (see the stratigraphic column in Figure 2-2 and the top structure map in Figure 2-3). The thrust plane contains small conjugate thrust faults that are interpreted to have created fracturing within the Pha Nok Khao Formation. for the most part. An audit by RPS found these log evaluations to be reasonable and appropriate. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. 2012 Secondary reservoirs are the Early Permian. as well as over discovery areas to the east. The upper surface is. 2. This complex surface dips to the SE and forms a conformable base to the overlying Pha Nok Khao Formation. flow test rates were disappointing in that well and PH-6. Si That Formation. Sinphuhorm straddles the EU1 and E5N blocks. Permian marine shales may be secondary source rocks. located to the central northern part of the field. and probably extends south into Block L15/43. and matured during the Cretaceous. indicating that the closure extends to the south. a Best Estimate interpretation has been audited by RPS and is deemed sufficient to adequately represent the base of the reservoir sequence. the combined Indosinian-I and Pha Nok Khao horizons diverge in the far eastern portion of the interpretation. are the postulated source rocks. The lower surface is formed by the top of the Si That Formation. which has affected the deliverability of the well. buried within half-grabens. However.3 Database The Coastal concessions in the Khorat Basin are covered by seismic data of several vintages dating back to 1979. The central crestal portion of the Sinphuhorm Gas Field has been delineated with the drilling of eight wells (PH-1 to -7 and PH-10). Therefore. The unconformity shows a strong change in seismic character to the underlying Pha Nok Khao and Si That Formations. outside the closure of the Sinphuhorm structure. However. however. The interpretation of the Si That Formation is complicated by the presence of these smaller conjugate thrusts plus larger sub-trusts to the west of the structure. The reservoir at Sinphuhorm -7 on the western flank of the field was tight and no flow was achieved during testing. and the Triassic aged.03 6 . This well is currently ECV1837. Thus. formed by the Indosinian-1 Unconformity that has eroded the top of the SE dipping Pha Nok Khao reservoir sequence and the older Si That Formation.4 Sinphuhorm Structure RPS has completed an independent interpretation of the Sinphuhorm during a previous study for one of APICO’s part-owners (Salamander). Unfortunately. As the Pha Nok Khao Formation dips to the SE. Huai Hin Lat Formation. the rock quality was poor. 2. The drilling of well South PH-1 shows that gas is present in the southern block. Well PH-10 has been on production since December 2007. The South PH-1 well has been drilled in the northern portion of Concession L15/43. a robust time interpretation is achieved for this event. RPS reviewed an independent third party petrophysical study that had been completed on these logs for another participant within the field development. the Indosinian-I Unconformity can be interpreted as forming the top reservoir equivalent surface for the Sinphuhorm Gas Field. This is. which is a succession of interbedded sands and shales lying above the Indosinian-1 Unconformity. Nevertheless.

the porosity and permeability of the reservoir is interpreted to have been increased by fracturing.1 Gas-Water Contact A GWC has not been penetrated by any of the nine wells drilled on the Sinphuhorm structure. which may skew the formation averages towards the low side. ECV1837. the seemingly poorer quality wells have the most complete datasets. The presence of gas justifies the extension of the mapped field closure into Block L15/43. based on mapping.156 mTVDSS. essentially. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. These three water levels have been used to form the Low.03 7 . The GRV provides the largest uncertainty as there remain wide ranges in the possible values for the: i) the estimated gas-Water Contact (“GWC”) defining the vertical limit of the hydrocarbon- bearing reservoir and ii) the north-westerly extent of the Pha Nok Khao Formation. The opposite is noted at the PH-7 and South PH-1 well locations. These are discussed below: 2.6 Static Volumetric Estimates The static volumetric estimate of GIIP have been based around uncertainties associated the rock properties and the Gross Rock Volume (“GRV”). In addition to the reservoir rock matrix.6. RPS has reviewed published material of fractured reservoirs to estimate a range of rock parameters (porosity and water saturation) for the fractured intervals of the Pha Nok Khao Formation. The pre-Triassic section below the Indosinian-1 Unconformity is structurally complex and thrusted. together with the GWC place a large uncertainty in the areal extent of the hydrocarbon closure.  High Case: pressure data analysis of the gas and water columns suggesting a contact at 2. RPS has reviewed the third party evaluation of the Sinphuhorm wells conducted on behalf of another field development participant and notes that log analyses have adequately assessed the rock parameters of the limestone/dolomite matrix. Although the data sampling within the wells was not optimal. which. Notably. that there is the distinct possibility that there are separate pressure gas containers (“tanks”) across the mapped closures of the Sinphuhorm Gas Field and that not all of the tanks have been defined/penetrated to date.  Best Case: lowest interpreted gas in PH-2 DST#3 interval at 2. a dual porosity system has been established in the reservoir rock. however. 2012 suspended pending evaluation of fracture stimulation potential. RPS notes. 2. which have not encountered significant sections of fractured reservoir and.587 mTVDSS. Best and High estimates for the extent of the field.279 mTVDSS. thus have low gas deliverability. best efforts have been made in assessing the rock parameters. 2.5 Petrophysics The reservoir consists of fractured tight platform limestones and dolomites of the Mid Permian Pha Nok Khao Formation. Thus. Where thrusting has occurred. The range of possible contacts is vertically dispersed (431 m) and GRV estimates have been based on the following assumptions:  Low Case: the lowest tested gas in PH-1 at 2.

has considerably more interpretation uncertainty. applying a dual porosity (matrix and fracture) system and associated water saturations.m) 7. RPS previously applied a time to depth conversion using a polynomial function.2 Indosinian-1 Unconformity Truncation An additional GRV uncertainty relates to placement of the intersection of the thrusted south- easterly dipping top Si That Formation (base of reservoir) and the Indosinian I Unconformity (top reservoir). where the intersection is not very well defined on the seismic.0 42. The inputs to the Monte Carlo analysis are presented in Table 2-2. The base pick. 100% Basis) Monte Carlo Parameter Inputs Low Input Mid Input High Input 2 Gross Rock Volume (km .587 Net-to-Gross (%) 100 100 100 Matrix Porosity (%) 1.643 3.279 -2. 2.833 ECV1837.6. Previously. due to tuning and the low resolution of the seismic data.03 8 .6. RPS noted that misties between the time pick and the stratigraphic well depth were considerable in some wells. This forms a linear structural-stratigraphic closure of the field along its western flank.91 2 Area (km ) 57 92 165 Gas-water Contact (m TVDSS) -2.67 2.156 -2.3 Monte Carlo Probabilistic Simulation RPS has created a Monte Carlo probabilistic simulation in the REP5™ software.5 35.5 2. RPS has previously interpreted that the Top Indosinian-I Unconformity time interpretation forms a robust representation of the top reservoir.410 6. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.53 17. based on the check-shot surveys of wells PH-1 and PH-2. The probabilistic simulation was run through 100.0 Matrix Water Saturation (%) 60.05 54. The intersection of these two surfaces is relatively well defined along the SW portion as strong amplitude impedance events.0 Fracture Porosity (%) 0. requiring broad correction before adjusted top and base surfaces could be used in volumetric calculations. P50.00 Fracture Water Saturation (%) 20 15 10 Gas Expansion Factor (scf/rcf) 207 208 209 Monte Carlo Outputs P90 P50 P10 GIIP (Bscf) 1. due to conjugate thrusting and deformation.000 iterations and the P90.5 3. the same is not true for the region to the NW and North of PH-1. The corrected grids push the structure down in the area of wells PH-3 and PH-10. Table 2-2 – Sinphuhorm GIIP (Bscf. marked by the Si That Formation. Other wells did not have time-depth curves loaded in the database. However. 2012 2.22 0. P10 values were extracted.

2.8 MMscf/d at 252 psi drawdown. a two tank material balance model is used. Phu Horm-5 was drilled during July-September 2004. The average gas rate during the extended well test is 39. 2011 is presented in Figure 2-5. for this evaluation. ECV1837. 2002 and temporarily suspended on 24th August. 2003 and the reservoir section was drilled using underbalanced drilling techniques to reach a total depth of 2695 mMDBRT (metres measured depth below rotary table). Reservoir pressures have been measured from wells PH-3ST.7 Reservoir Pressure and Temperature Production and reservoir pressure data were supplied by the field Operator to Coastal. 2004. and assumes volumetric depletion. 2. 2008.8 Production History Gas and condensate production history for Sinphuhorm up to and including 31st December. The Central area consists of wells PH-4 and PH-10ST. The material balance analysis suggests that the producing wells are unlikely to be communicating with the full mapped reservoir volume.0 MMscf/d at 110 psi drawdown.9 Well Production Testing The well test history for the Sinphuhorm Gas Field is summarized below: Phu Horm-3 was spudded on the 10th June. RPS has noted a stark difference between the volumetric estimation of the GIIP (Section 2.6) and that of the material balance volumetric modeling based on production and reservoir pressure (Section 2. Further.03 9 . Therefore. A buildup test over 300 hours was run. A buildup test lasting about 600 hours was run. preceded by a flow of period of 170 hours in November 2004. Interference pressure data has confirmed pressure communication between wells PH-4 and PH-10ST in Central area and between wells PH-3 and PH-5 in South areas1. Phu Horm-4 was spudded on the 9th June.11). -5 and -10ST using downhole gauges. Figure 2-4 depicts the reservoir pressures for these two areas. The reservoir section was drilled underbalanced and reached a total depth of 2621 mMDBRT. preceded by a modified-isochronal test to obtain well deliverability during 17-27 July 2007. dated 31st December. RPS has categorised the GIIP volumes as either “Mapped” (via structural closure) or “Connected” (via pressure communication in the wellbores). 2002 due to a gas kick. 2012 2. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. Pressure and production data have demonstrated that there are (at least) two pressure separate compartments (“tanks”) within the mapped closure. Therefore. -4. The “Connected” GIIP was estimated utilizing the dynamic data with the material balance method applied for South and Central areas. The reservoir section was drilled underbalanced with the top of reservoir at 2477 mMDRT to a total depth of 2921 mMDRT. The maximum gas rate during DST-1 was 44. 1 Sinphuhorm Field Reserves Assessment Methodology by HESS Oil & Gas (Thailand) Limited. and as demonstrated in this section. whereas the South area comprises wells PH-3 and PH-5. A buildup test lasting about 180 hours was run. The well was re-entered on the 18th March. preceded by a flow period of about equal duration in October 2003. The average gas rates are provided in Table 2-3. Other reservoir pressures have been derived from surface measurements (from wells PH-4 and PH-5).

2007. 2007. Surface gas. Further Pressure Volume Temperature (“PVT”) analyses were performed on wells PH-3 and -4. SIWHP at the end of the test was 2773 psi. with a methane content of 96 mole percent and a pentane plus (C5+) content of less than one mole percent. The Phu Horm-10 well was brought on stream as a production well in the first quarter of 2008 and produced at an average rate of 10 MMscf/d. There are indications of mechanical problems with the completion in this well and a re-entry is currently being planned.7 232 3 33.5 MMscf/day. Two separate tanks were modeled in MBalTM. -4. -5 and 10ST) has been conducted.2 5.6 61 2 21. -4.6) but can also be achieved by assessing the material balance of the field based on the current wells and pressure analyses. These tests show carbon dioxide up to 0. liquid and water samples were collected from the PH-3. 2006. and -5 wells during multi- rate tests.9 5.001%). this well will achieve a similar inflow capacity as that currently seen from Phu Horm-10. The well was suspended pending evaluation of the stimulation potential. The gas flow rates were deemed sub-commercial for a tie-in at the time. and all forecasts assume that. 2008 and reached a total depth of 2660 mMDBRT. PH-7 was suspended and the rig was released on 9th May. Phu Horm-6 was drilled in a batch mode with the Phu Horm-7. An interpretation of the gas volumes that are in effective communication with the currently producing wells (PH-3.03 10 .3 0. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. during under-balanced drilling of the Pha Nok Khao Formation the well produced gas at rates up to 4 MMscf/day. This well also tested gas at sub-commercial rates. after stimulation. Phu Horm-10 was spudded on the 27th July. 2. Material Balance (“P/Z”) methods were used to estimate the volume of “Connected” GIIP for individual tanks. This has been completed using geological mapping (Section 2. 2012 Table 2-3 – PH-5 Welltest Summary Flow Average Gas Rate Condensate-Gas Ratio Water-Gas Ratio Drawdown Number (MMscf/d) (stb/MMscf) (stb/MMscf) (psi) 1 10.1 stb/MMscf. the well was suspended after extensive flow testing.3 1.2 0.11 Material Balance Analysis Sufficient data is available to assess the range of in-place hydrocarbons within the Sinphuhorm Gas Field. The South Phu Horm–1 well was spudded on 18th February. 2. It appears that some formation damage may have occurred when the well was killed during the later stages of the drilling operation.9 MMscf/d at WHP of 1825 psi. The well may be re-entered and stimulated at a later date. Each tank has two wells. and was spudded on the 12th January. 2007. The reservoir section was drilled under- balanced with no gas shows. The well was sidetracked due to a stuck bottom-hole assembly. Based on production data.2 5.5 mole percent and very minimal traces of hydrogen sulphide (0. 2007 with an average flow rate of 9. however.10 Fluid Properties Sinphuhorm gas is dry. 2007.5 496 Phu Horm-7 was spudded on the 27th September. The average sustained flow rate on test was 1. the average Condensate Gas Ratio (“CGR”) is approximately 5. On 15th April. The main flow test (post-acidization) was conducted from 16th to 19th September. as illustrated in Figure 2-8. ECV1837.

These volumes are the classified as “Connected” GIIPs. RPS has concluded that a volumetric depletion mechanism is most likely for the Sinphuhorm Gas Field based on the available data. aquifer influx is discounted as less probable as only a limited amount of relatively early production data is available. approximately 19% of the Best Estimate GIIP volume has been produced. 2012  PH-4 and -10ST in the Central area. 2011 2. The GIIP distribution by “tank” is provided in Table 2-5. The last downhole pressure measurements were obtained during the static gradient survey is shown in Table 2-4. These pressures were estimated from flowing well head pressures (“FWHPs”) (Figure 2-6) and are therefore only indicative of the actual reservoir pressure. ECV1837. the mature. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. adjacent field of Nam Phong has demonstrated a volumetric depletion. Compartmentalization remains a possibility in the Central area but more pressure data are required to support this model.  water drive.538 North Gradient Survey RPS had generated the P/Z plots (Figure 2-7) for South and Central Areas separately using all the available pressure data.168 South Gradient Survey PH-4 18th September. Three possibilities were considered in the material balance modeling:  volumetric depletion. Moreover. Although a pressure match could be achieved by assuming a weak aquifer. which is equal to the average of RPS’s Low Estimate and Best Estimate GIIPs. RPS has also assessed additional “estimated” reservoir pressures from the PH-3 and PH-5 for the South Area and PH-4 for the Central Area. The Operator’s Best Estimate GIIP from the P/Z plot (Figure 2-8) assuming “Connected Area” as one tank is 769 Bscf.03 11 . 2011 3. As the P/Z plot shows a straight line relationship (Figure 2-7). with the range of Low. Table 2-4 – The Latest Reservoir Pressure Measurements Well Date Pressure (psia) Area Measurement th PH-3 17 June. and  compartmentalization. As of 31st December 2011.878 Central Gradient Survey th PH-5 25 September. and. Best and High Estimates based on the uncertainty associated with plotting the straight line through the data points. 2011 3.009 South Gradient Survey PH-1 20th September. 2011 3.  PH-3 and -5 in the Southern area.

as currently developed is only tapping a portion of the “Mapped” field. 2012 Table 2-5 – Effective “Connected” Estimates of GIIP.03 12 . or may not.3 km north of PH-10ST) conducted on 30th October. However.586 5. 2011 to 8th September. The Best Estimates ECV1837.5 510.410 6.1 “Mapped” versus “Connected” GIIP Estimates The “Mapped” GIIP volume estimates are significantly larger than those that have been estimated using the material balance “Connected” tank assessment.e. The PH-1 Shut-in Tubing Head Pressure monitoring indicating a pressure drop of 15 psi from 28th April.9 Total 713. This indicates that the Sinphuhorm Gas Field.0 957. A pressure gradient survey in PH-1 (about 4. 2010 indicates a pressure depletion of 89 psi (2. which may cover a significantly larger area.876 2. and as evidenced from the five non-producing wells/areas in the field. Sinphuhorm Gas Field (Bscf.8%). Wells outside the current Central and Southern area “tanks” have encountered generally tight reservoir that may.1 If the above volumes are back-interpolated using the average rock and engineering input parameters from the “Mapped” GIIP assessment.5 446.11.8 379.833 “Connected” GIIP (Table 2-5) 714 824 957 Difference (“Unconnected”) 929 2. is discovered that the “tanks” cover approximate areas of 10- 9 to 12 km2 each. there may be several unidentified and un-penetrated ”tanks” that are not in communication. Table 2-6 – Differences between the “Mapped” and “Connected” GIIP Estimates.12 Recoverable Hydrocarbons The difference between the volumetric estimates and the material balance modeling suggests that the producing wells may not be communicating with the full reservoir volume. The recent pressure gradient survey was conducted on 20th September.3 South Area (PH-3 and PH-5) 386. RPS has defined gas hosted in areas within the “Mapped” closure but not within the “Connected” “tanks” as the “Unconnected” volumes (Table 2-6). Presently. Sinphuhorm Gas Field (Bscf. which is significantly less that the Mapped Low Estimate GIIP area of 57 km2 and the Best Estimate GIIP area of 92 km2 (see Table 2-2).1 444. acidisation. be conducive to production through stimulation (i. 100% Basis) Gas Initially In-Place (Bscf) Area Low Best High Central Area (PH-4 and PH-10ST) 327. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. fraccing etc). 2011. 2. 2011 indicates a pressure depletion of 141 psi (3.643 3.5%) from the virgin reservoir pressure of 3680 psia taken in December 1984. 100% Basis) Gas Initially In-Place (Bscf) Low Best High “Mapped” GIIP (Table 2-2) 1.9 824.

 Well PH-10ST in the Central “tank” – a workover of this well. ECV1837. It is unknown whether the northern wells will be targeting a new “tank”. “Connected” Area Development The “Connected” gas resources have been estimated using static material balance P/Z modeling methods. For their location description it is noted that one well will be sited in the southern portion of the field.  Well PH-8 in the Northern area. The wells inflow performance was assumed to be average of the currently producing wells.1 Further Development Plans The Operator has detailed in its five-year work plan and budget (“WP&B”) that there will be four wells drilled within the Sinphuhorm structure.  Well PH-12 in the Central area . The field is most likely divided into two or more areas that are separated by a large fault or zones of tight/un-fractured Pha Nok Khao Formation. These wells have been included in the material balance model.possibly part of the Central “tank” (PH-10ST / PH-4) – effectively increasing the rate of recovery of hydrocarbons with marginal incremental volume. testing the “Unconnected” area.possibly part of the Southern “tank” (PH-5 / PH-3) – effectively increasing the rate of recovery of hydrocarbons with marginal incremental volume. RPS has assigned two wells to the Low Estimate (the Southern and Central area wells) and four additional wells to the Best and High Estimates. 2. was derived from material balance calculations shown in Figure 2-8 with resulting GIIP values presented in Table 2-5. The EUR has been updated following plans by the Operator to drill additional wells. Besides the currently producing wells. a further in the central portion and two additional wells in the Northern sector. The Low Estimate case consists of two infill wells only and the Best and High Estimates cases consist of two infill wells plus two appraisal wells. No maps detailing the location for these wells planned in 2013 have been provided to RPS.12. The “Connected” GIIP. the Operator has presented plans to conduct the following appraisal in 2013:  Well PH-6 in the Northwestern area – a workover or sidetrack on the tight PNK formation that may be connected to the Central area “tank”. In addition to drilling new wells. as previously mentioned.  Well PH-9 in the Northern area.03 13 . This compartmentalisation is supported by pressure data that suggests the two areas are not in significant pressure communication. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.  Well PH-11 in the Southern area . the gas recovery from the planned wells is included in various reserve estimates as in Table 2-7. based on production and pressure data supplied by Coastal and Salamander. 2012 of “Connected” GIIP are approximately a quarter of the volume of the Best Estimate “Mapped’ GIIP. or drilling the northern portion of the Central “tank”.

RESERVES AND RESOURCES CERTIFICATION
FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY, 2012

Table 2-7 – Drilling Infill and Appraisal Wells and Wells Allocations for Reserves

Schedule Drilling Area Low Best High
Estimate Estimate Estimate
Wells Wells Wells
Q1 – 2013 North of Central Area - PH-8 PH-8
Q2 – 2013 North of Central Area - PH-9 PH-9
Q3 – 2013 South PH-11 PH-11 PH-11
Q4 – 2013 Central PH-12 PH-12 PH-12
Total Wells 2 4 4

“Unconnected” Area Development
It is likely that significantly more wells would be required to access the “Mapped” volumes that lie
outside the “Connected” tanks (i.e. the presently “Unconnected” volumes). The Operator has
presented that there are no firm development plans to develop the tight, unfractured,
undolomitised limestones.
In late 2007, RPS devised a conceptual plan of development for the “Unconnected” volumes based
upon analogue well spacing noted in the neighbouring Nam Phong field (approximately one well
every 4.0 km2) and other tight gas analogue fields (approximately one well every 2.5 km2).
Although not adopted by the Operator or Joint Venture partners, the volumes associated with that
development plan were classified as Reserves as the Operator had intended to appraise the tighter
sections of the PNK limestone. However, the last appraisal of the tighter gas in the production
concessions (EU1/E5N) resulted in a failed well. That well, PH-7, was spudded in late 2007 and
suspended in May 2008. Further appraisal has not occurred over the past 4 years and there are no
definitive plans to undertake the tight gas development in the Operator’s five-year WP&B.
The SPE document “Guidelines for Application of the Petroleum Resource Management System”
published in November 2011 (footnote: 2) state that a reasonable timeframe may be given for the
development of Reserves; placing that period at 5 years (section 2.1.2 of the Guidelines). That five
year time marker will be reached by the end of 2012 and, as per the Guidelines, the Operator must
now demonstrate a firm intention to proceed with development based upon all of the following
criteria:
 Evidence to support a reasonable timetable for development.
 A reasonable assessment of the future economics of such development projects meeting
defined investment and operating criteria.
 A reasonable expectation that there will be a market for all or at least the expected sales
quantities of production required to justify development.
 Evidence that the necessary production and transportation facilities are available or can be
made available.
 Evidence that legal, contractual, environmental and other social and economic concerns
will allow for the actual implementation of the recovery project being evaluated.
 To be included in the Reserves class, a project must be sufficiently defined to establish its
commercial viability. There must be a reasonable expectation that all required internal and

2 SPE, AAPG, WPC, SPEE, SEG, November 2011: Guidelines for Application of the Petroleum Resources Management System, pp221.

ECV1837.03 14

RESERVES AND RESOURCES CERTIFICATION
FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY, 2012

external approvals will be forthcoming, and there is evidence of firm intention to proceed
with development within a reasonable time frame.
 To be included in the Reserves class, there must be a high confidence in the commercial
producibility of the reservoir as supported by actual production or formation tests. In
certain cases, Reserves may be assigned on the basis of well logs and/or core analysis that
indicate that the subject reservoir is hydrocarbon-bearing and is analogous to reservoirs in
the same area that are producing or have demonstrated the ability to produce on
formation tests.
RPS has maintained a portion of the currently defined “Unconnected” volumes as Reserves but
notes that these will be re-classified as Contingent Resources unless all of the commercial
determination requirements stated above are demonstrated by the end of 2012.

2.12.2 EUR Volumes
We have not included any of the “Unconnected” volumes within the Low Estimate EUR for the
Sinphuhorm Field, such that Proved Reserves are only derived from the “Connected” volume
“tanks”. The Best and High Estimate EURs are derived on analogue well spacing and a 15 year
extension to the Gas Sales Agreement.
The Sinphuhorm EUR volumes are presented in Table 2-8:

Table 2-8 – Sinphuhorm Gas Field EUR (Bscf, 100% Basis)

Gas Volumes
Low Best High
Estimate Estimate Estimate
“Connected” GIIP, Bscf (Table 2-6) 714 824 957
“Unconnected” GIIP, Bscf (Table 2-6) 1) 0 2,586 5,876
TOTAL GIIP, Bscf 714 3,410 6,833
Overall Recovery Factor, % (back interpolated) 90% 50% 83%
Total Wellhead Gas EUR, Bscf 2) 643 1,719 5,657
Total Sales Gas EUR, Bscf 3) 638 1,707 5,618
Note :
1) No development of the “Unconnected” volumes for the Low Estimate.
2) Best and High Estimates assume full production to 2050 (effective ultimate EUR).
3) After applying shrinkage of 0.7% due to fuel and flare.

2.12.3 Resource Classification
Not all of the above EUR volumes can be classified as Reserves. A Gas Sales Agreement (“GSA”)
limits the volumes that may be monetized. This GSA allows for a Daily Contract Quantity
(“DCQ”) of 108 MMscf/d, subject to a “Buyers Maximum DCQ Reduction Amount”. The DCQ
Reduction allows the Sinphuhorm DCQ to be reduced in the early years in order to allow for
preferential supply to the GSA from the Nam Phong field. The GSA is a 15 year contract that
supplies gas to the Nam Phong Power Plant and expires on the 28th November, 2021.

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RESERVES AND RESOURCES CERTIFICATION
FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY, 2012

The exact Sinphuhorm DCQ reduction amounts will depend on the decline of the Nam Phong field.
The DCQ reduction, as currently provided by Coastal and Salamander, is therefore as set out in
the profile in Table 2-9 but will be dependent on the effective Nam Phong producing rates.

Table 2-9 – Sinphuhorm Gas Sales Agreement – DCQ and DCQ Reduction

DCQ Reduction 2
Contract DCQ Sinphuhorm
Period Nam Phong 1
Year (MMscf/d) (MMscf/d)
(MMscf/d)
1 1/10/2006 – 30/09/2007 108 19.0 89.0
2 1/10/2007 – 30/09/2008 108 15.6 92.4
3 1/10/2008 – 30/09/2009 108 11.1 96.9
4 1/10/2009 – 30/09/2010 108 17.6 90.4
5 1/10/2010 – 30/09/2011 108 12.7 95.3 5

3 5
6 1/10/2011 – 30/09/2012 108 12.0 96.0
7 1/10/2012 – 30/09/2013 108 11.2 96.8
8 1/10/2013 – 30/09/2014 108 9.7 98.4
9 1/10/2014 – 30/09/2015 108 8.3 99.7
10 1/10/2015 – 30/09/2016 108 7.2 100.8
11 1/10/2016 – 30/09/2017 108 6.2 101.8
12 1/10/2017 – 30/09/2018 108 5.3 102.7
13 1/10/2018 – 30/09/2019 108 4.6 103.4
14 1/10/2019 – 30/09/2020 108 3.9 104.1
15 1/10/2020 – 30/09/2021 108 3.3 104.7
4
16 1/10/2021 – 28/11/2021 108 0 108.0
Notes
1) The Nam Phong Expected Forecast (updated by Coastal and Salamander)
2) Sinphuhorm DCQ – GSA DCQ – Nam Phong Production
3) 1st January, 2012 is in Contract Year 6.
4)
Contract Year 16 has 58 days (from 1st October, 2021 to 28th November, 2021)
5)
The buyer had requested an increase to the DCQ rate to 96 MMscf/d from 9th January, 2011.
Therefore, the average DCQ rate for contract year 5 (from 1st October, 2010 to 30th September,
2011) was 95.3 MMscf/d. RPS had assumed that the DCQ rate remains 96 MMscf until the end of
contract year 6. For the subsequent contract years, the DCQ rates remain as per the previous
evaluation.

As of 31st December, 2011, 156.7 Bscf of gas has been sold from the Sinphuhorm Gas Field. Due to
flooding, the gas production has been reduced from September until December 2011. It has been
assumed that the production will be back to normal rate in April 2012. As of December 2011,
approximately 8 Bscf of contracted gas volume is not sold due to gas production at reduced rate.

ECV1837.03 16

461 L-N Contracted and Uncontracted Gas P Contracted Sales Gas. % 0% 38% 82% From Nam Phong and US analogue J "Unconnected" EUR Wellhead Gas. by no means certain. that the vendor will locate a willing buyer for the remaining gas volumes.7%) : for Shrinkage "Unconnected" Gas G Total “Unconnected” GIIP. or inability to secure gas contracts.11.707 5. Bscf 714 824 957 A+B D Recovery Factor.586 5. 2021. In the current economic climate.1 of this report.618 F+K M Sales Gas Sold. Coastal are confident that an extension or new GSA might be signed. Bscf 2) 138 594 4. they are at risk of being re-classified as Contingent Resources as stated in Section 2. Bscf -8 -8 -8 Inability to meet the contracted DCQ R Sales Gas Volumes. Bscf 929 2.3 of the March 2007 SPE PRMS document states that ”where the risk of cessation of rights to produce. particularly as the field will be producing at its highest rate in 2021.Hydrocarbon Resource Base Low Best High Estimate Estimate Estimate Remarks "Connected" Gas A South Area “Connected” GIIP. Bscf 0 977 4796 G*H K "Unconnected" EUR Sales Gas.550 5. Bscf 1) 638 1. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. Bscf 386 444 511 From P/Z Analysis (Table 2-5) C Total “Connected” GIIP.03 17 . % 90% 90% 90% Best Estimate from Material Balance Modelling E "Connected" EUR Wellhead Gas. Section 3. Bscf 638 736 855 E*(100%-0. the extension GSA volumes are almost exclusively produced from the conceptual development of the “Unconnected” volumes. Note. we have estimated 2P and 3P Reserves volumes. RPS believes that it is probable. Based that a new/extended GSA will be signed. but.7%) : for Shrinkage Gas Production & Remaining Resources L Total EUR Sales Gas. 2012 It should be noted that the Sinphuhorm production license for the EU1 and E5N blocks expire on 19th May.876 From "Mapped" minus "Connected" volumes H Recovery Factor. 2034 extend beyond the current GSA expiry date of 28th November.3. Bscf 1) 344 956 956 Sales Gas Profiles at end of GSA/extensions S Uncontracted Gas Resource.505 N-R : Uncontracted Gas Resources ECV1837. and that the resulting terms will be sufficiently attractive for Coastal and its partners to maintain their ongoing participation. Thus. Bscf 481 1. Table 2-10 provides a summary. Bscf 328 379 446 From P/Z Analysis (Table 2-5) B Central Area “Connected” GIIP.763 J*(100%-0. Table 2-10 – Contracted and Uncontracted Gas and Condensate Volumes Sinphuhorm . Bscf 0 970 4. evaluators may choose to incorporate the uncertainty by categorizing quantities to be recovered beyond the current contract as Probable or Possible Reserves”. is not considered significant. Bscf 352 964 964 DCQ (including GSA extension/downtime) Q “Lost” Gas. however. Bscf -157 -157 -157 Historical sales gas production N Remaining EUR Sales Gas. Bscf 643 742 861 C*D F "Connected" EUR Sales Gas.

7 3. ECV1837. Table 2-11 – Uncontracted Recoverable Sales Gas Volumes Sinphuhorm – Uncontracted Recoverable Volumes Low Best High Estimate Estimate Estimate Remarks Uncontracted Sales Gas (Bscf) 1) 138 594 4.12.11.505 (Table 2-10) Uncontracted Condensate (MMbbl) 0.7% shrinkage for fuel and flare.8 -0.Hydrocarbon Resource Base Low Best High Estimate Estimate Estimate Remarks Condensate Production & Remaining Resources T CGR.1 5.5 24.5 (Table 2-10) Note: 1) After applying 0.1 From production ratios U Condensate Sold. MMbbl 2) 0.9 4. 2012 Sinphuhorm .4 Uncontracted Gas and Condensate Volumes Volumes of gas that will not be produced during the GSA extension term have been classified as Contingent Resources Table 2-11. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. Note that these volumes may be increased should the “Unconnected” volumes currently assigned to Reserves be re-classified as Contingent Resources (see Section 2. applying 20 days per year in the Low Estimate and no downtime for the Best and High Estimates.1 5.5 From production profiles Notes: 1) Assumes only “Connected” volumes are sold in the Low Estimate Gas Sales case.03 18 .7 3. 2.8 4.8 Historical sales condensate production V Sales Condensate Volumes. MMbbl -0. Maintenance days have been allocated in the Gas Sales Agreement.8 -0. stb/MMscf 5. 2) Uncontracted Sales Gas and Condensate volumes are assigned to Contingent Resources.9 R*T : Sales Condensate at end of GSA/extensions W Uncontracted Condensate Resource. MMbbl 1. The majority of these lie within the “Unconnected” area.5 24.1 of this report). This reduces solely the minimum obligation of the buyer and not the vendor.

2012 L15/43 Scale 0 (km) 25 N th Phu North Ph Horm H Sinphuhorm L27/43 Nam Phong Map supplied by APICO Sinphuhorm Gas Field (Concessions EU1.com . E5N) Current Coastal Exploration Concessions Original Coastal Concessions L15/43 and L27/43 Figure 2-1 – Location of the Sinphuhorm Gas Field and Concession L15/43 L27/43 ECV1837.03 rpsgroup. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.

Dolomite Figure 2-2 – Onshore Thailand Stratigraphic Column ECV1837.com . RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.03 rpsgroup. 2012 Karsted Ls.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.156 mTVDSS Best Best: 2.279 mTVDSS Maximum High: 2. 2012 PH-1 PH-2 PH-6 PH-4 PH-10 PH-7 PH-5 PH-3 SPH-1 5 km Western Limit of Indosinian-1 Indosinian 1 Estimated Gas-Water Contact Unconformity Truncation Low: 2.587 mTVDSS Approximate “tank” areas Figure 2-3 – Sinphuhorm Gas Field Top Structure Map (RPS) ECV1837.com .03 rpsgroup.

2012 Sinphuhorm (Central Area) .Reservoir Pressure PH-5 PH 5 PH-3 PH 3 4000 3800 Reservoirr Pressure (psia) 3600 3400 3200 3000 2800 2600 2400 2200 2000 Sep-02 Jan-04 May-05 Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Date Sinphuhorm .Average Reservoir Pressure Central Area South Area 3900 3700 e (psia) 3500 Reservoir Pressure 3300 3100 2900 2700 2500 May 05 May-05 Oct 06 Oct-06 Feb 08 Feb-08 Jul 09 Jul-09 Nov 10 Nov-10 Apr 12 Apr-12 Date Figure 2-4 – Sinphuhorm Gas Field Reservoir Pressure ECV1837.03 rpsgroup.Reservoir Pressure PH-10ST PH-4 4000 3800 eservoir Pressure (psia) 3600 3400 3200 3000 2800 2600 Re 2400 2200 2000 Jan-04 May-05 Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Date Sinphuhorm (South Area) .com . RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.

03 rpsgroup.com . RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. 2012 Figure 2-5 – Sinphuhorm Gas Field Production History ECV1837.

0 10.00 2000.0 40.0 30.00 1000 0 1000.0 80.00 3000. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.00 500.00 3000.00 1500. 2012 Central Area ‐ Gas Rate & FWHP PH‐10ST Gas Rate PH‐4 Gas Rate PH‐10ST FWHP PH‐4 FWHP 120.0 40.com .0 70.00 20.00 0.00 80.0 Mscf/d) FWHP (pssig) Gas Rate (MM 60.0 20.00 2500.0 Gas Rate (MMscf/d) 60.03 rpsgroup.00 0.0 90.00 0.00 500 0 500.0 0.0 29‐Nov‐06 25‐Sep‐07 21‐Jul‐08 17‐May‐09 13‐Mar‐10 07‐Jan‐11 03‐Nov‐11 Date South Area ‐ Gas Rate & FWHP PH‐5 Gas Rate PH‐3 Gas Rate PH‐5 FWHP PH‐3 FWHP 100.00 FWHP (psig) 50.00 2500.00 1500.0 29‐Nov‐06 25‐Sep‐07 21‐Jul‐08 17‐May‐09 13‐Mar‐10 07‐Jan‐11 03‐Nov‐11 Date Figure 2-6 – Sinphuhorm Gas Field FWHPs ECV1837.00 1000.00 2000.0 100.

High Est. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.7 – Sinphuhorm Gas Field P/Z GIIP Estimates (RPS) ECV1837.5 0 50 100 150 200 250 300 350 400 450 500 Cumulative Gas ((Bscf)) Figure 2.com . Best Est.5 0 100 200 300 400 500 600 700 Cumulative Gas (Bscf) South Area South Area Low Est. Best Est.03 rpsgroup. High Est. 2012 Central Area Central Area Low Est. 4500 4000 3500 3000 sia) 2500 P/Z (ps 2000 1500 1000 500 0 444. 4500 4000 3500 3000 P/Z (psia) 2500 2000 1500 1000 500 0 379.

2011) m Operator’s Technical Committee Mee From Figure 2.8 – Sinphuhorm Gas Field P/Z GIIP Estimate (Operator) ECV1837.03 rpsgroup. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.com . 2012 eting (14th October.

1 2023 15.a.8 4. 2012) for the Sinphuhorm Development 1P 2P 3P Year CAPEX OPEX CAPEX OPEX CAPEX OPEX 2012 4.1 10.6 116.1 15.1 15.3 14. 3.8 2013 56. and 3P profiles provided by Coastal.1 ECV1837.4 14.1 15.1 15.3 14.1 2019 15.1 15.1 15.1 15. It is assumed that maintenance operations are curtailed and de-manning commences in the last four years of the contract period.4 14. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.03 27 .1 10.4 14. 2P.8 14.7 15.7 15.2 Capital and Operating Costs Table 3-2 presents a summary of the forecasted Capital Expenditure (“CAPEX”) and Operating Expenditure (“OPEX”) for the 1P.1 2017 15.tax creditable 12.3 2015 14.65 20.1 15.1 2021 15. Table 3-2 – Forecast CAPEX and OPEX (US$ Million.4 14. 2012 3 Commercial Evaluation 3.6 116.6 2014 10.1 15.7 15. The principal commercial terms are summarized in Table 3-1: Table 3-1 – Principal Commercial Terms Royalty (paid in cash or in kind) .2 14.1 2022 15.3 16.8 20.8 14.8 2016 10.8 20.5% Tax 50% Depreciation rate for capital expenditure 20% p.3 14. Thailand.1 15.4 14.1 2020 15.1 2024 15.3 16.1 Thai Concession Terms The Sinphuhorm gas field lies within the EU1 and E-5 production licenses on the Khorat Plateau.1 15.1 15.1 15.1 2018 15.8 4.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.1 2026 15. where Coastal has a 36. 2012 1P 2P 3P Year CAPEX OPEX CAPEX OPEX CAPEX OPEX 2025 15.1 15. The contracted volumes also assume that the maximum scheduled number of maintenance days are taken as defined in the contract.1 15. The final “Contract Price” is based on the “Current Price”. as modelled.2 Sinphuhorm Gas Price The contract gas price is based on a formula linking the final gas price to the 6-month average price for Singapore posted HSFO 180. For the 2P and 3P cases.1 15.1 2034 15. and a “Floor Price”. The agreed contract volumes are shown in Table 2-9.1 15.6% working interest. 3. ECV1837. the “Connected” Sinphuhorm gas is estimated to be contained entirely within the EU1 and E-5 production licenses.1 2036 15.3 Sinphuhorm Unitisation For the 1P case.1 15.1 15.1 15.1 2035 15.3 Gas Contract and Prices 3.1 2032 15.1 2033 15.1 2031 15.3.1 15.03 28 . the field. 3.1 2029 15. we have assumed the probability that this field may be unitised from 1st January.1 15.1 3.1 2028 15. extends out of the Production Licenses and into the adjacent L15/43 exploration license.3. which is a function of the “Normal Price”.1 15.3.1 15. For the 2P and 3P case. 2014.1 2027 15.1% working interest.1 2030 15.1 Sinphuhorm Contract Volumes A gas sales contract is in place between the parties in the Sinphuhorm field and the Petroleum Authority of Thailand (“PTT”) as the buyer. multiplied by a scaling factor. The estimated unitised shares are as shown in Table 3-3. in which Coastal has a 12.1 15.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.0% 6. ECV1837.60% 2P 94.0% 14.00% 3P 84.3% 16. 2012 Table 3-3 – Estimated Unitised Share for the Sinphuhorm Gas Field Coastal Final Working Reserves Case: EU1 and E-5 L15/43 Interest in Unitised Share 1P 100% 0% 12.7% 15.03 29 . Any working interest and resource estimates regarding the unitised share for the Sinphuhorm Gas Field are subject to change with further data acquisition and future activities.20% The percentages that RPS has presented in this report are based solely on RPS’s assessment of the structure of the Sinphuhorm Gas Field and any envisaged unitisation activities.

9 Total (MMBOE)(1) 59. 2012 Gross Reserves Proved Proved plus Proved plus Probable Probable plus Possible Sinphuhorm Sales Gas (Bscf) 344 957 957 Sinphuhorm Condensate (MMbbl) 1. This increased Coastal’s Working Interest in the Sinphuhorm Field to 16. so there are no unitization assumptions in the Low Estimate EUR Forecast.2 Notes: 1) Coastal’s Working Interest from 1st January.2%.4 22.7 0. This Working Interest has been used in the estimation of the 2P Reserves and 2C Contingent Resources. approximately 6% of the “Mapped” field was estimated to lie in block L15/43.3 164. the “Connected” volume does not extend into the exploration concession to the South (L15/43).0% 16.8 Total (MMBOE)(2) 7. 2012 4 Resource Statement The extent of the Sinphuhorm Field has not been fully delineated by drilling.6%.3% of the mapped field lies in block L15/43.0 Bscf per 1. 2012 Coastal’s Net Entitlement Reserves Proved Proved plus Proved plus Probable Probable plus Possible Working Interest (%)(1) 12. Thus. The High Estimate 3P and 3C cases assume approximately 15.0 164.9 4.2 0. 2014 after unitisation. Table 4-1 – Sinphuhorm Field Gross Reserves Estimate as of 1st January.3 Notes: 1) Gas to BOE conversion factor is 6. For the Best Estimate GIIP. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. 2012. 2014.2% Sinphuhorm Sales Gas (Bscf) 43 133 152 Sinphuhorm Condensate (MMbbl) 0.0% in the Best Estimate scenario. any production from this area would result in a small increase in Coastal’s Working Interest in the Sinphuhorm Field.9 26.03 31 .0 million barrels of oil equivalent (BOE).0 million barrels of oil equivalent (BOE). Resulting Proved volumes are based on the assumption that Coastal’s Working Interest will remain at 12. ECV1837.1% through their 100% interest in APICO. Table 4-1 and Table 4-2 show the gross sales gas and condensate Reserves as of 1st January. Coastal’s Working Interest in that concession is 36.6% 14.0 Bscf per 1. It has been assumed that negotiations and equity determinations will be completed by 1st January. at which time equalization payments will be made. In RPS’s assessment. 2) Gas to BOE conversion factor is 6. Table 4-2 – Sinphuhorm Field Coastal’s Net Entitlement Reserves Estimate as of 1st January.8 4. It is estimated that this would have the effect of increasing Coastal’s Working Interest in a unitized Sinphuhorm field to 14.

Apart from production adjustments. this reduces the Sinphuhorm DCQ rate. issued on the 14th April. 2012 344 957 957 Note: 1) Previous estimates based on work by RPS for Coastal Energy in a report entitled “Sinphuhorm Gas Field Reserves Update as of 1st January. 2011 (ECV1725).2 -0. 2011”. Table 4-3 – Sinphuhorm Field Gross Sales Gas Reserves Reconciliation Proved Proved plus Proved plus (Bscf) Probable Probable plus (Bscf) Possible (Bscf) 1st January. the revisions to 1st January.2 Extensions Discoveries Technical Revisions 0 -0. 2012 1. 2012 Table 4-3 and Table 4-4 show the sales gas and condensate Reserves reconciliation. Table 4-4 – Sinphuhorm Field Gross Condensate Reserves Reconciliation Proved Proved plus Proved plus (MMbbl) Probable Probable plus (MMbbl) Possible (MMbbl) 1st January. issued on the 14th April. 2011 (ECV1725).9 4.2 Acquisitions Depositions Economic Factors Production -0.9 Note: 1) Previous estimates based on work by RPS for Coastal Energy in a report entitled “Sinphuhorm Gas Field Reserves Update as of 1st January.1 1st January. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.9 5. 2011”.8 4. ECV1837.03 32 .1 -0.1 -0.2 5. 2012 for the field have shown:  The reduction in gas Reserves are due to Coastal’s assumption that the Nam Phong field decline is much less than previously assumed. 2011(1) 1. 2011(1) 370 993 993 Extensions Discoveries Technical Revisions 4 -6 -6 Acquisitions Depositions Economic Factors Production -30 -30 -30 1st January.  A slight decrease in condensate volume is due to use of lower historical CGR and reduced raw gas production.

7 0.7 0. Table 4-5 – Sinphuhorm Field Coastal Net Company Sales Gas Reserves Reconciliation (Forecast Prices and Costs) Proved Proved plus Proved plus (Bscf) Probable Probable plus (Bscf) Possible (Bscf) 1st January. 2011”. 2011(1) 47 139 160 Extensions Discoveries Technical Revisions 0 -2 -3 Acquisitions Depositions Economic Factors Production -4 -4 -4 1st January.8 Note: 1) Previous estimates based on work by RPS for Coastal Energy in a report entitled “Sinphuhorm Gas Field Reserves Update as of 1st January. 2012 0.2 0. 2011 (ECV1725). ECV1837. 2012 43 133 152 Note: 1) Previous estimates based on work by RPS for Coastal Energy in a report entitled “Sinphuhorm Gas Field Reserves Update as of 1st January. 2011”.0 -0.03 33 . Table 4-6 – Sinphuhorm Field Coastal Net Company Condensate Reserves Reconciliation (Forecast Prices and Costs) Proved Proved plus Proved plus (MMbbl) Probable Probable plus (MMbbl) Possible (MMbbl) 1st January.2 0.0 1st January. 2011 (ECV1725).8 Extensions Discoveries Technical Revisions 0 0 0 Acquisitions Depositions Economic Factors Production -0. 2011(1) 0. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.0 -0. as presented in Table 4-5 and Table 4-6. issued on the 14th April. issued on the 14th April. 2012 Reconciliations have been completed for Coastal’s Working Interest and Net Company Reserves.

ECV1837. 2012 The gas and condensate production profiles are presented in Figure 4-1 and Figure 4-2. respectively. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.03 34 . Forecast charts for the respective hydrocarbon streams are presented in Figure 4-3 and Figure 4-4.

Cum.2 % Field Sinphuhorm Licence Phase Gas FORECAST FUTURE GROSS FIELD PRODUCTION (100% BASIS) Year Production 1P or P90 2P or P50 3P or P10 Days Cum.Assumes 20 maintenance days per year.1 – Sinphuhorm Gas Field Gas Production Profile ECV1837.03 rpsgroup. 2P & 3P . Figure 4.0 % Country Thailand 3P 16. mmscf/d bscf bscf mmscf/d bscf bscf mmscf/d bscf bscf 1 2012 346/366 92 32 32 91 33 33 91 33 33 2 2013 345/365 97 34 65 97 35 69 97 35 69 3 2014 345/365 99 34 99 99 36 105 99 36 105 4 2015 345/365 100 34 134 100 36 141 100 36 141 5 2016 346/366 101 35 169 102 37 178 102 37 178 6 2017 345/365 102 35 204 102 37 216 102 37 216 7 2018 345/365 103 35 240 103 38 253 103 38 253 8 2019 345/365 104 36 275 103 38 291 103 38 291 9 2020 346/366 104 36 311 104 38 329 104 38 329 10 2021 314/365 103 32 344 106 39 368 106 39 368 11 2022 365 109 40 407 109 40 407 12 2023 365 108 39 447 108 39 447 13 2024 366 108 39 486 108 39 486 14 2025 365 108 39 526 108 39 526 15 2026 365 109 40 566 109 40 566 16 2027 365 109 40 606 109 40 606 17 2028 366 107 39 645 107 39 645 18 2029 365 108 39 684 108 39 684 19 2030 365 108 39 724 108 39 724 20 2031 365 108 40 763 108 40 763 21 2032 366 107 39 802 107 39 802 22 2033 365 108 39 842 108 39 842 23 2034 365 108 39 881 108 39 881 24 2035 365 108 39 921 108 39 921 25 2036 333 108 36 957 108 36 957 Sub Total 344 957 957 Remaining Total 344 957 957 Notes: 1P uses 314 days in 2021 (from 1 Jan 2021 till 28 Nov 2021 with 18 days maintenance days) 1P .No maintenance days and end date is 28 November 2036. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.6 % Region South East Asia 2P 14.com . 2012 CASE PARAMETERS COMPANY INTERESTS Client Coastal Energy gy 1P 12. Cum.

2 467 0.2 4.2 3.9 Remaining Total 1.03 rpsgroup.7 514 0.2 – Sinphuhorm Gas Field Condensate Production Profile ECV1837.2 0.2 4.2 3.9 4.2 467 0.9 11 2022 365 561 0.8 4.7 555 0.2 4.2 0.5 554 0.0 524 0.2 2.2 09 0.2 2 2013 345/365 499 0.1 551 0.7 20 2031 365 556 0.2 2.2 528 0.9 542 0.5 531 0.2 0.3 555 02 0.3 552 0.2 3.2 4.2 1.2 1.9 Sub Total 1.3 18 2029 365 554 0.2 4.4 3 2014 345/365 507 0.8 4.2 1.2 1. 2012 CASE PARAMETERS COMPANY INTERESTS Client Coastal Energy gy 1P 12.5 4 2015 345/365 514 0.2 0.2 1.2 4.2 23 2.2 2.5 9 2020 346/366 535 0.1 561 0.9 524 02 0.2 3.3 13 2024 366 554 0.1 17 2028 366 552 0.2 1.5 554 0.2 0.7 555 0.7 535 0.0 % Country Thailand 3P 16.8 542 0.5 24 2035 365 555 0.2 2.5 19 2030 365 555 0.2 0.3 8 2019 345/365 532 0. stb/d MM bbls MM bbls stb/d MM bbls MM bbls stb/d MM bbls MM bbls 1 2012 346/366 472 0.1 22 2033 365 555 0. Cum.2 1.2 1.3 528 0.3 497 0.9 524 02 0.2 09 0.3 555 0.2 1.9 Notes: 1P uses 314 days in 2021 (from 1 Jan 2021 till 28 Nov 2021 with 18 days maintenance days) 1P .2 23 2.6 535 0.7 25 2036 333 553 0.9 6 2017 345/365 524 0.2 3.2 0.2 3.2 2.9 16 2027 365 561 0. 2P & 3P .5 507 0.2 4.2 3.9 4.2 2.2 09 0.5 555 0.2 1.7 15 2026 365 561 0.2 0. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.2 3.2 0.2 % Field Sinphuhorm Licence Phase Condensate FORECAST FUTURE GROSS FIELD PRODUCTION (100% BASIS) Year Production 1P or P90 2P or P50 3P or P10 Days Cum.Assumes 20 maintenance days per year.2 4.5 14 2025 365 555 0.2 1.7 514 0.9 21 2032 366 551 0.5 507 0.2 3. Cum.2 0.4 497 0.9 561 0.2 2. Figure 4.1 524 0.9 553 0.2 0.2 1.No maintenance days and end date is 28 November 2036.2 2.2 4.1 12 2023 365 555 02 0.6 % Region South East Asia 2P 14.2 1.7 5 2016 346/366 519 02 0.9 556 0.2 3.4 531 0.1 7 2018 345/365 528 0.2 1.7 10 2021 314/365 529 0.3 23 2034 365 555 0.2 1.2 0.com .7 555 0.2 4.1 561 0.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. 2012 Sinphuhorm Sales Gas Profiles 120 100 80 MMscf/d 60 40 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 1P 2P 3P Figure 4.com .03 rpsgroup.3 – Sinphuhorm Gas Field Gas Production Forecast ECV1837.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.03 rpsgroup. 2012 Sinphuhorm Condensate Production Profiles 600 500 400 stb/d 300 200 100 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 1P 2P 3P Figure 4.4 – Sinphuhorm Gas Field Condensate Production Forecast ECV1837.com .

616 133.455 956.148 461 46 21 10 6 3 30 14 7 4 2 Total Proved + Probable 5.765 222 17 14 11 9 8 12 9 8 6 5 Probable 3.455 164.0 Mscf/BOE ECV1837.105 14. Royalty is treated as tax. attributable Net Entitlement Share is reported as Coastal’s working interest volumes including Royalty.03 39 .101 10.926 89.913 683 63 34 21 15 11 42 23 14 10 8 Grand Total (MBOE)(1) Proved Developed Producing 72.143 1.663 221 176 145 122 105 152 122 101 85 74 Proved Developed Non-Producing Proven Undeveloped 14.565 1. Table 5-1 – Sinphuhorm Field Summary of the Evaluation of the Petroleum Reserves as of 1st January.148 3.777 70 52 39 30 24 46 34 26 20 16 Total Proved 86. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.153 59.428 261. 2012 5 NI 51-101 Reporting of Reserves A summary of the Reserves for the Sinphuhorm field as calculated in accordance with Canadian National Instrument 51-101 and the Reserve and Resource definitions of the Canadian Oil and Gas Evaluation Handbook is shown in Table 5-1 to Table 5-9.419 725 323 159 85 49 474 212 104 56 32 Total Proved + Probable 191.349 22.048 44.302 105.589 32.713 4.529 343.345 66 49 37 29 23 43 32 24 19 15 Total Proved 501.926 612.859 1016 552 343 237 178 671 368 231 161 122 Notes: (1) Using 6.344 169 13 10 9 7 6 9 7 6 5 4 Proved Developed Non-Producing Proven Undeveloped 422 422 53 4 3 2 2 1 3 2 2 1 1 Total Proved 2.055 953 517 321 222 167 630 345 216 151 114 Natural Gas Liquid (Mbbl) Proved Developed Producing 2.047 7.942 5.750 679 303 148 79 45 444 198 97 52 30 Total Proved + Probable 1. Thailand is a Tax and Royalty regime.440 291 228 184 153 129 198 156 127 105 90 Probable 105.302 15.305 274 215 173 144 122 186 147 119 99 84 Probable 612.105 1. and thus. 2012 Remaining Net Present Values (US$ Million) Ultimate Reserves Product Classification Reserves Company Before Income Taxes After Income Taxes Gross Net 0% 5% 10% 15% 20% 0% 5% 10% 15% 20% Non-Associated Gas (MMcf) Proved Developed Producing 419.690 43.101 82.114.960 208 166 136 115 99 143 115 95 80 69 Proved Developed Non-Producing Proven Undeveloped 82.

587 Net-to-Gross (%) 100 100 100 Matrix Porosity (%) 1.279 -2.5 3.00 Fracture Water Saturation (%) 20 15 10 Gas Expansion Factor (scf/rcf) 207 208 209 Monte Carlo Outputs P90 P50 P10 GIIP (Bscf) 1.22 0. 2012 Table 5-2 – Total Future Net Revenue Undiscounted Forecast Prices and Costs as of 1st January.520 Gas-water Contact (m TVDSS) -2.5 35.643 3.264 158 68 22 0 1.0 42.67 2.820 44.0 Fracture Porosity (%) 0.156 -2.ft) 6.167 397 770 Possible Reserves Table 5-3 – Sinphuhorm Field Volumetric Reserves Estimates Reservoir Data Monte Carlo Parameter Inputs Low Input Mid Input High Input Gross Rock Volume (thousand acre.449 181 78 23 0 1.5 2. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.0 Matrix Water Saturation (%) 60.105 13.03 40 .016 345 671 Reserves Proved plus Probable Reserves plus 1.833 ECV1837. 2012 Future Future Abandonment Net Net Operating Development & Revenue Income Revenue Revenue Royalties Costs Costs Reclamation Before Tax After Reserves Category Costs Income Income Tax Tax US$ Million Proved Reserves 372 46 21 13 0 291 93 198 Proved plus Probable 1.410 6.

305 291 228 184 153 Thailand Natural Gas Liquids Reserves (Value Included with Non-Associated Gas) Pool & Gas Liquid Condensate Company Company Lessor Company Location Reserves Recovery Reserves Working Gross Royalties Net(1) (Sales (bbl/MMcf) (Mbbl) Interest Condensate & Condensate Gas) (%) Reserves Burdens Reserves (MMcf) (Sales (%) (Mbbl) Gas) (Mbbl) Sinphuhorm Field.6 43.000 90.656 343.690 5. Royalty is treated as tax and is paid in cash.6 222 0 222 Thailand 1 Net Entitlement: Thailand is a Tax and Royalty regime. ECV1837. and thus. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY. 758.690 12.03 41 .839 524.305 0 43. 343.361 7. (MMcf) (MMcf) (MMcf) (%) (MMcf) (MMcf) 2011 For Sale (MMcf) (MMcf) @0% @5% @10% @15% Sinphuhorm Field.200 157. 2012 Table 5-4 – Estimates of Proved Reserves and Net Present Values for the Sinphuhorm Field (as of 1st January.0 682.14 1.0 487.765 12. attributable Net Entitlement Share is reported as Coastal’s working interest volumes including associated Royalty volumes. 2012) Non-Associated Gas Reserves Pool & Original Recovery Ultimate Cumulative Gas Surface Remaining Gas Company Company Lessor Company Net Present Value Location Gas in Factor Gas Production Reserves Loss Reserves Working Gross Royalties Net(1) Place (%) Recovery (Raw Gas) (Raw (%) Gas (Sales Interest Gas & Gas Before Income Taxes (MMcf) (Raw to 31st Gas) Available Gas) (%) Reserves Burdens Reserves (US$ million) Gas) December.

2012) Non-Associated Gas Reserves Pool & Original Recovery Ultimate Cumulative Gas Surface Remaining Gas Company Company Lessor Company Net Present Value Location Gas in Factor Gas Production Reserves Loss Reserves Working Gross Royalties Net(1) Place (%) Recovery (Raw Gas) (Raw (%) Gas (Sales Interest Gas & Gas Before Income Taxes (MMcf) (Raw to 31st Gas) Available Gas) (%) Reserves Burdens Reserves (US$ million) Gas) December.0 133.616 5. Royalty is treated as tax and is paid in cash.545 956. 1. attributable Net Entitlement Share is reported as Coastal’s working interest volumes including associated Royalty volumes. (MMcf) (MMcf) (MMcf) (%) (MMcf) (MMcf) 2011 For Sale (MMcf) (MMcf) @0% @5% @10% @15% Sinphuhorm Field.839 1. 2012 Table 5-5 – Estimates of Proved Plus Probable Reserves and Net Present Values for the Sinphuhorm Field (as of 1st January.016 552 343 237 Thailand Natural Gas Liquids Reserves (Value Included with Non-Associated Gas) Pool & Gas Liquid Condensate Company Company Lessor Company Location Reserves Recovery Reserves Working Gross Royalties Net(1) (Sales (bbl/MMcf) (Mbbl) Interest Condensate & Condensate Gas) (%) Reserves Burdens Reserves (MMcf) (Sales (%) (Mbbl) Gas) (Mbbl) Sinphuhorm Field 956.451.14 4.616 14. and thus.718.0 1.560.055 1. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPHUHORM GAS FIELD AS OF 1st JANUARY.03 42 .600 90.913 13.801 7.055 0 133.9 683 0 683 Thailand 1 Net Entitlement: Thailand is a Tax and Royalty regime.909.640 157. ECV1837.0 1.

306 -30.947 -6.945 3. 2012 343.351 10 993.306 -30. 100% Basis Period & Factor Remaining Reserves (Mbbl) Proved + Proved + Probable Proved Probable Probable Possible + Possible 1st January. 2011 1.215 Extensions Discoveries Technical Revisions -42 -122 -164 0 -164 Acquisitions Depositions Economic Factors Production -138 -138 -138 1st January.913 ECV1837. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY.873 993.926 956. 2012 Table 5-6 – Sinphuhorm Field Remaining Gas Reserves Reconciliation.306 1st January.690 612.913 0 4. 2011 370.360 Extensions Discoveries Technical Revisions 3. 100% Basis Period & Factor Remaining Reserves (MMcf) Proved + Proved + Probable Proved Probable Probable Possible + Possible 1st January.519 -9.438 Acquisitions Depositions Economic Factors Production -30.616 0 956.215 0 5.270 5.428 -10 -6.477 622.03 43 .765 3. 2012 1.148 4.616 Table 5-7 – Sinphuhorm Field Remaining Condensate Reserves Reconciliation.

Coastal’s Net Entitlement Period & Factor Remaining Reserves (MMcf) Proved + Proved + Probable Proved Probable Probable Possible + Possible 1st January. 2012 43.750 133.244 -1.422 152.801 -1.538 -3. 2012 222 461 683 100 783 ECV1837. 2011 245 483 728 110 838 Extensions Discoveries Technical Revisions -5 -22 -27 -10 -38 Acquisitions Depositions Economic Factors Production -17 -17 -17 1st January. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY.674 20. Coastal’s Net Entitlement Period & Factor Remaining Reserves (Mbbl) Proved + Proved + Probable Proved Probable Probable Possible + Possible 1st January.819 -3.819 1st January.961 159.680 91.03 44 . 2012 Table 5-8 – Sinphuhorm Field Remaining Gas Reserves Reconciliation.477 Table 5-9 – Sinphuhorm Field Remaining Condensate Reserves Reconciliation. 2011 46.339 Acquisitions Depositions Economic Factors Production -3.635 Extensions Discoveries Technical Revisions 443 -2.055 19.994 138.305 89.819 -3.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY.03 45 . 2012 Appendices APPENDIX I GLOSSARY OF TECHNICAL TERMS ECV1837.

GLOSSARY OF TECHNICAL TERMS 1C Low Estimate Contingent Resources 2C Best Estimate Contingent Resources 3C High Estimate Contingent Resources 1P Proved Reserves 2P Proved plus Probable Reserves 3P Proved plus Probable plus Possible Reserve Acre Area in acre AOF Absolute Open Flow API American Petroleum Institute B billion bbl barrels bbl/d barrels per day BBTUD Billions of British Thermal Units per Day bcpd barrels of condensate per day BOE barrel of oil equivalent Bg gas formation volume factor Bgi gas formation volume factor (initial) Bo oil formation volume factor Boi oil formation volume factor (initial) Bw water volume factor bcpd barrels of condensate per day bopd barrels of oil per day BTU British Thermal Unit Bscf billions of standard cubic feet bwpd barrels of water per day °C Temperature in Centigrade cc cubic centimetre CGR condensate gas ratio cP Viscosity in centiPoise DCQ daily contracted quantity direct DST Drill Stem Test Entitlement Volumes the volumes of oil and/or gas which a Contractor receives under the terms of a PSC ELT Economics Limit Test EUR Estimated Ultimate Recovery ECV1837. 2012 APPENDIX 1 .03 47 . RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY. 2012 APPENDIX 1 .GLOSSARY OF TECHNICAL TERMS °F Temperature in Fahrenheit FBHP flowing bottom hole pressure FTHP flowing tubing head pressure FTHT flowing tubing head temperature ft Length in feet ft3 Volume in cubic feet ftSS depth in feet below sea level GEF Gas Expansion Factor GIP Gas in Place GIIP Gas Initially in Place gm Weight in grams gm/cc Density in grams per cubic centimetre GOR gas/oil ratio GRV gross rock volume GSA Gas Sales Agreement GWC gas water contact Ib Weight in pounds Ib/cuft Density in pounds per cubic feet KB Kelly Bushing km Length in kilometres km2 Area in square kilometres 3 km Volume in cubic kilometres m Length in meter MM million MM$ million US dollars MD measured depth mD permeability in millidarcies MDT Modular Formation Dynamics Tester m3 cubic metres 3 m /d cubic metres per day MMscf/d millions of standard cubic feet per day Money of the Day Cash values calculated to include the effect of inflation NTG net to gross ratio NPV Net Present Value OWC oil water contact ECV1837.03 48 .

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY.03 49 . 2012 APPENDIX 1 .GLOSSARY OF TECHNICAL TERMS P1 Proved Reserves P2 Probable Reserves P3 Possible Reserves Probability of 10% chance the value would be larger than the reported and P10 considered high value Probability of 50% chance the value would be larger than the reported and P50 considered best value Probability of 90% chance the value would be larger than the reported and P90 considered low value Pb bubble point pressure Pc capillary pressure petroleum deposits of oil and/or gas phi porosity fraction phie Effective porosity fraction pi initial reservoir pressure PRMS Petroleum Resources Management System (SPE Terminology) PSC Production Sharing Contract psi pounds per square inch psia pounds per square inch absolute psig pounds per square inch gauge rcf Volume in reservoir cubic feet Real Cash values calculated to exclude the effects of inflation scf standard cubic feet measured at 14.7 pounds per stb/MMscf square inch and 60°F STOIIP stock tank oil initially in place Sw water saturation US$ United States Dollars TAC Technical Assistance Contract TAN Total Acid Number (of oil) Tscf trillion standard cubic feet TVDSS true vertical depth (sub-sea) ECV1837.7 pounds per square inch and 60°F scfd standard cubic feet per day scf/stb standard cubic feet per stock tank barrel stb stock tank barrels measured at 14.7 pounds per square inch and 60°F stb/d stock tank barrels per day stock tank barrels per million standard cubic feet measured at 14.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY.03 50 . 2012 APPENDIX 1 .GLOSSARY OF TECHNICAL TERMS TVT true vertical thickness TWT two-way time US$ United States Dollar Vsh shale volume WI Working Interest WC water cut WHP Well Head Pressure  porosity ECV1837.

2012 APPENDIX II RESERVES AND RESOURCES DEFINITIONS AND GUIDELINES ECV1837. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY.03 51 .

These definitions and guidelines are designed to provide a common reference for the international petroleum industry. the latter document remains a valuable source of more detailed background information. and replaces guidance previously contained in the 1997 Petroleum Reserves Definitions. working independently. 2012 RESERVES AND RESOURCES DEFINITIONS AND GUIDELINES Society of Petroleum Engineers (SPE). and the 2001 “Guidelines for the Evaluation of Petroleum Reserves and Resources”. and available. the World Petroleum Council (WPC. The definitions and guidelines contained in this document must not be construed as modifying the interpretation or application of any existing regulatory reporting requirements.org/spe-app/spe/industry/reserves/index. American Association of Petroleum Geologists (AAPG). World Petroleum Council (WPC). This was followed by additional supporting documents: supplemental application evaluation guidelines (2001) and a glossary of terms utilized in Resources definitions (2005). builds on. the technologies employed in petroleum exploration. approved in March 2007. These definitions and the related classification system are now in common use internationally within the petroleum industry. 3 These Definitions and Guidelines are extracted from the Society of Petroleum Engineers / World Petroleum Council / American Association of Petroleum Geologists / Society of Petroleum Evaluation Engineers (SPE/WPC/AAPG/SPEE) Petroleum Resources Management System document (“SPE PRMS”). Resource assessments estimate total quantities in known and yet-to-be-discovered accumulations. The SPE PRMS document consolidates. The SPE Oil and Gas Reserves Committee works closely with other organizations to maintain the definitions and issues periodic revisions to keep current with evolving technologies and changing commercial opportunities. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY. However. published Reserves definitions that were strikingly similar. and presenting results within a comprehensive classification framework.htm ECV1837. Early guidance focused on Proved Reserves. the two organizations jointly released a single set of definitions for Reserves that could be used worldwide. any modifications to the guidance contained herein should be clearly identified. SPE and WPC jointly developed a classification system for all petroleum resources. resources evaluations are focused on those quantities that can potentially be recovered and marketed by commercial projects. SPE published definitions for all Reserves categories in 1987. including national reporting and regulatory disclosure agencies. It is expected that SPE PRMS will be supplemented with industry education programs and application guides addressing their implementation in a wide spectrum of technical and/or commercial settings. A petroleum resources management system provides a consistent approach to estimating petroleum quantities.spe. They provide a measure of comparability and reduce the subjective nature of resources estimation. In 1997.03 53 . evaluating development projects. SPE also published standards for estimating and auditing Reserves information (revised 2007). production and processing continue to evolve and improve. and to support petroleum project and portfolio management requirements. They are intended to improve clarity in global communications regarding petroleum resources. Society of Petroleum Evaluation Engineers (SPEE) Petroleum Resources Management System (PRMS) Definitions and Guidelines (3) Preamble Petroleum resources are the estimated quantities of hydrocarbons naturally occurring on or within the Earth’s crust. development. then known as the World Petroleum Congress). at: www. free and in full. In 2000. It is understood that these definitions and guidelines allow flexibility for users and agencies to tailor application for their particular needs. International efforts to standardize the definition of petroleum resources and how they are estimated began in the 1930s. the American Association of Petroleum Geologists (AAPG). the 2000 Petroleum Resources Classification and Definitions publications. however. Building on work initiated by the Society of Petroleum Evaluation Engineers (SPEE). In the same year.

In certain cases. Proved Reserves Proved Reserves are those quantities of petroleum. market-related reasons.03 54 . and there is evidence of firm intention to proceed with development within a reasonable time frame. the recovery efficiency applied to these reservoirs should be defined based on a range of possibilities supported by analogs and sound engineering judgment considering the characteristics of the Proved area and the applied development program. In all cases. engineering. Reserves in undeveloped locations may be classified as Proved provided that the locations are in undrilled areas of the reservoir that can be judged with reasonable certainty to be commercially productive. or to meet contractual or strategic objectives. 2012 RESERVES Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. there must be a high confidence in the commercial producibility of the reservoir as supported by actual production or formation tests. For Proved Reserves. To be included in the Reserves class. Probable Reserves Probable Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY. development of economic projects are deferred at the option of the producer for. a longer time frame could be applied where. In the absence of data on fluid contacts. Reserves may be assigned on the basis of well logs and/or core analysis that indicate that the subject reservoir is hydrocarbon-bearing and is analogous to reservoirs in the same area that are producing or have demonstrated the ability to produce on formation tests. There must be a reasonable expectation that all required internal and external approvals will be forthcoming. Proved quantities in a reservoir are limited by the lowest known hydrocarbon (LKH) as seen in a well penetration unless otherwise indicated by definitive geoscience. from a given date forward. recoverable. The area of the reservoir considered as Proved includes:  the area delineated by drilling and defined by fluid contacts. While 5 years is recommended as a benchmark. and  adjacent undrilled portions of the reservoir that can reasonably be judged as continuous with it and commercially productive on the basis of available geoscience and engineering data. If probabilistic methods are used. To be included in the Reserves class. if any. the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. or performance data. Such definitive information may include pressure gradient analysis and seismic indicators. Interpretations of available geoscience and engineering data indicate with reasonable certainty that the objective formation is laterally continuous with drilled Proved locations. commercial. among other things. the justification for classification as Reserves should be clearly documented. and remaining based on the development project(s) applied. A reasonable time frame for the initiation of development depends on the specific circumstances and varies according to the scope of the project. which by analysis of geoscience and engineering data.” Chapter 8). a project must be sufficiently defined to establish its commercial viability. ECV1837. Reserves must satisfy four criteria: they must be discovered. operating methods. can be estimated with reasonable certainty to be commercially recoverable. from known reservoirs and under defined economic conditions. If deterministic methods are used. Seismic data alone may not be sufficient to define fluid contacts for Proved Reserves (see “2001 Supplemental Guidelines. and government regulations. there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate. Reserves are further subdivided in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their development and production status. for example.

Probable or Possible Reserves may be assigned to areas that are structurally higher than the Proved area. there should be at least a 10% probability that the actual quantities recovered will equal or exceed the 3P estimate. potentially sealing. Reserves should not be assigned to areas that are clearly separated from a known accumulation by non- productive reservoir (i. Justification for assigning Reserves in such cases should be clearly documented. The interpreted reservoir continuity may not meet the reasonable certainty criteria. Possible estimates also include incremental quantities associated with project recovery efficiencies beyond that assumed for Probable. In conventional accumulations. Probable and Possible Reserves (See above for separate criteria for Probable Reserves and Possible Reserves. there should be at least a 50% probability that the actual quantities recovered will equal or exceed the 2P estimate. Probable Reserves may be assigned to areas of a reservoir adjacent to Proved where data control or interpretations of available data are less certain. Probable and/or Possible Reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from Proved areas by minor faulting or other geological discontinuities and have not been penetrated by a wellbore but are interpreted to be in communication with the known (Proved) reservoir. structurally low reservoir. faults until this reservoir is penetrated and evaluated as commercially productive. Possible (and in some cases. Frequently. or negative test results). Proved oil Reserves should only be assigned in the structurally higher portions of the reservoir if there is reasonable certainty that such portions are initially above bubble point pressure based on documented engineering analyses. Probable) Reserves may be assigned to areas that are structurally lower than the adjacent Proved or 2P area. which is equivalent to the high estimate scenario. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY. including comparisons to results in successful similar projects. In this context. 2012 It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves (2P). absence of reservoir.. when probabilistic methods are used.e.) The 2P and 3P estimates may be based on reasonable alternative technical and commercial interpretations within the reservoir and/or subject project that are clearly documented. When probabilistic methods are used. Possible Reserves may be assigned to areas of a reservoir adjacent to Probable where data control and interpretations of available data are progressively less certain. such areas may contain Prospective Resources. ECV1837. Probable estimates also include incremental recoveries associated with project recovery efficiencies beyond that assumed for Proved. Possible Reserves Possible Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recoverable than Probable Reserves The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P). where drilling has defined a highest known oil (HKO) elevation and there exists the potential for an associated gas cap.03 55 . this may be in areas where geoscience and engineering data are unable to clearly define the area and vertical reservoir limits of commercial production from the reservoir by a defined project. Caution should be exercised in assigning Reserves to adjacent reservoirs isolated by major. In conventional accumulations. Reservoir portions that do not meet this certainty may be assigned as Probable and Possible oil and/or gas based on reservoir fluid properties and pressure gradient interpretations.

the range of potential recovery under feasible development scenarios. Project activities are focused on assessing the chance of discovery and. projects for which there are currently no viable markets. assuming a discovery. assuming discovery. ECV1837. 2012 CONTINGENT RESOURCES Those quantities of petroleum estimated. as of a given date. RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY. the range of potential recoverable quantities under a commercial development program. Contingent Resources may include. to be potentially recoverable from undiscovered accumulations. Potential accumulations are evaluated according to their chance of discovery and. Prospect. for example. It is recognized that the development programs will be of significantly less detail and depend more heavily on analog developments in the earlier phases of exploration. the range of potential recovery under hypothetical development scenarios. PROSPECTIVE RESOURCES Those quantities of petroleum which are estimated.A project associated with a potential accumulation that is sufficiently well defined to represent a viable drilling target. Lead. but which are not currently considered to be commercially recoverable due to one or more contingencies. or where evaluation of the accumulation is insufficient to clearly assess commerciality. assuming discovery. to be potentially recoverable from known accumulations by application of development projects. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. Play. or where commercial recovery is dependent on technology under development. assuming discovery. Project activities are focused on acquiring additional data and/or undertaking further evaluation designed to confirm whether or not the lead can be matured into a prospect. but which requires more data acquisition and/or evaluation in order to define specific leads or prospects. Such evaluation includes the assessment of the chance of discovery and.A project associated with a prospective trend of potential prospects. Project activities are focused on acquiring additional data and/or undertaking further evaluation designed to define specific leads or prospects for more detailed analysis of their chance of discovery and.A project associated with a potential accumulation that is currently poorly defined and requires more data acquisition and/or evaluation in order to be classified as a prospect.03 56 . as of a given date. the estimated quantities that would be recoverable under defined development projects.

RESERVES AND RESOURCES CERTIFICATION FOR THE SINPUHORM GAS FIELD AS OF 1st JANUARY. 2012 ECV1837.03 57 .