PETROMIN GROUP OF COMPANIES

Eda LNG Ltd

Eda Oil Limited

Petromin Interest in the Moran Oil Project.

The Central Moran field (Moran Unit) is a unitized pool comprising PDL2, PDL5 and PDL6 portions of the Moran field operated by Oil Search (PDL2 & PDL6) and ExxonMobil (PDL5). Equity split is 44:55:1 to PDL2, PDL5 and PDL6 respectively.

Current JV partners in the Moran Unit comprising PDL2/PDL5/PDL6 (44/55/1) are:

Oil Search (PNG) Ltd 47.38 %

Ampolex (PNG Petroleum) Inc, Esso Highlands Ltd & Merlin Pacific Oil Company Ltd 28.95 % (all subsidiary companies of ExxonMobil)

Eda Oil Ltd 11.28 % (100% owned subsidiary of Petromin PNG Holdings Ltd)

AGL Gas Developments (PNG) Pty Ltd 5.24 %

Merlin Petroleum Company 3.07 %

Petroleum Resources Kutubu Ltd 2.97 % Petroleum Resources Moran Ltd 1.12 %

Petromin PNG Holdings Limited (Petromin) through Eda Oil Limited, a wholly owned subsidiary holds 20.5% interest in PDL5 which equates to 11.28% in the Moran Unit. This equity was acquired as a result of the successful transfer of Eda Oil Limited from Mineral Resources Development Company Ltd (MRDC) to Petromin in August 2007.

Oil was initially discovered within the PDL2 portion of the Moran field in 1996 and subsequently brought on production via Extended Production Test (EPT) in 1998 with production from Moran 1, 2 and 5 wells. Drilling of Moran 4 confirmed the northwest extent of the Moran field in block 1934 (former PPL138).

As part of appraisal activities of the Moran field, Moran 4 was added to the EPT in March 2000 followed by the grant of PDL5 over block 1934 in February 2001.

Drilling of NW Moran 1 in 2003 confirmed oil in block 1933 within PPL219. EPT production from this well commenced in September 2005 via a 23km pipeline from NW Moran 1 to the Agogo Processing Facilities. The Central Moran Unit Agreement by the PDL2 and PDL5 parties in March 2001 led to integrated development of the Central Moran field in September 2002.

PDL6 over NW Moran was subsequently granted in April 2008. However, it was deemed uneconomic for Eda Oil to exercise the State’s entitlement to a 20.5% interest in PDL6.

The Moran field currently has 13 producing wells and 3 gas injection wells. Injection wells are located in higher structural elevation of the Moran field, relative to the location of the producing wells. Gas injection is the main oil recovery process, and involves the injection of gas at up to 100 million cubic feet per day. Development drilling continues in efforts to maximize recovery from the 4 producing fault blocks (Block A, B, J & K).

Kumul LNG Limited

Petromin interest in the PNG LNG Project

Kumul LNG Limited is a wholly owned subsidiary of Eda Oil Limited. Eda Oil Limited is a wholly owned subsidiary of Petromin PNG Holdings Ltd. Kumul LNG is a JV partner in the ExxonMobil-led PNG LNG Project and owns 0.2037% interest in the Project. Estimated to cost about US$18 billion, the PNG LNG Project will involve producing 960mmscf/d from assigned gas fields comprising Kutubu, Gobe, Moran, Hides, Angore and Juha. The gas will be transported to a gas treatment or liquefaction plant near Port Moresby for processing and export to overseas markets.

Since the signing of the Gas Agreement on 22 May 2008 between the PNG LNG Project JV participants and the State, the PNG LNG Project has progressed to the Front End Engineering and Design (FEED) stage. Final Investment Decision (FID) was made on 8 December 2009 with first cargo by early 2014.

Tolukuma Gold Mines Limited

The Tolukuma Gold Mine is located in Papua New Guinea, 100km north of Port Moresby, on the Owen Stanley Range at an elevation of 1,550 meters. It is comprised of a small open pit, but largely an undergrounds mine, containg high grade, narrow epithermal veins. It has been operating since 1995 with a history of successful reserve extensions.

Tolukuma has eleven Exploration License Tenements (‘EL’) and Mining Lease (ML) 104. The ML 104 covers an area of approximately 8km2 whilst the eleven EL’s cover over 8,000 km2 located with a 40 minutes flying radius of the mine site.

The Tolukuma deposit is compromised of two sub-parallel structures that are connected by a series of linked structures trending generally northwest - south east. Individual quartz veins average 0.2m to 2.0m in width over a strike length of more than 1.4km. Likewise the Zine and 120 veins located approximately 250m to the east, have similar geological features.

These are connected by a series of linked structures trending generally northwest –southeast direction.

Mining is carried out within these veins in five sections that have different geological characteristics, Major zones include, from the north to south, Tolukuma, Zine, Tolimi, Tinabar and Gulbadi, The Gulbadi zone includes the Gulbadi and Gulbadi C veins, Clay zones of variable width are located in the intersections on two or more structures.

Open pit production began in 1995 and underground mining in mid-1997. The mine is a low capacity, high-grade operation and employs 630 people, including 130 contractors.

The current production, by tonnage, is sourced approximately 92 percent from underground mining and 8 percent from open pit mining. All open pit and underground mining is conducted using mining plant and equipment owned by TGM. Access to the underground workings is via declines. Mining is by the conventional uphole benching method with backfill.

The metallurgical plant is compact and follows conventional gold extraction technology. It is located on a steep ridge in very mountainous terrain. Ore is trucked to the plant, then milled and treated through a conventional gravity and CIL circuit. The plant consists of a closed circuit semi-autogenous mill that is capable of processing 18kt per month.

As the Tolukuma mine is situated in a remote area, it is self sufficient with regard to the generation of power. Power is generated through a combination of diesel driven generator sets and hydro-turbine driven generator sets. Three hydro units are installed, currently capable of generating up to 1.5 MW of power. Three hydro units are dependant on the supply of adequate water. These generators supply 32,000 volts via overhead lines to the mine, where it is transformed down to 6,600 volts, 1,000 volts or 525 volts, depending on the requirement. Any shortfall from the hydro units is made up by the diesel units (a total of 3.2 MW of diesel generating power is installed).

Tolukuma’s gold production was 44,181 oz for the year to 30 June 2007; 54, 790 oz for the year 30 June 2006; 76, 314 oz in 2005 and 85, 715 in 2004. According to Emperor Mines, Tolukuma’s reserves and resources (as at 30 June 2007) were:

● Reserves – 0.137 Moz

● Resources – 0.410 Moz

Petromin PNG Holdings acquired 100 percent of the Tolukuma Gold Mine from Emperor Mines on the 6th February, 2008.

EDA MINERALS LIMITED

Eda Minerals Limited is the holding company for all of Petromin's Mining and Exploration interests, with the exception of Tolukuma Gold Mines Ltd.

PETROMIN GAS LIMITED

Petromin Gas Limited is the parent company of Eda LNG Limited, which is the State nominee for purposes of the Elk/Antelope LNG Project which includes both the Upstream and Mid-stream development.  Petromin Gas Limited is a wholly owned subsidiary of Petromin.

In October 2008, Petromin successfully entered into a Joint Venture with InterOil Corporation following the signing of the Investment Agreement to participate in the appraisal and development of the Elk/Antelope gas/condensate field. The Elk/Antelope fields are covered by 9 graticular blocks with in PPL238, and located in the Eastern Papuan Basin. This became Petromin’s first petroleum upstream project in PNG. Under the Agreement, Petromin funds 20.5% of the costs of developing the gas/condensate field.

InterOil drilled Elk-1 in 2006 and discovered gas in fractured limestones from the Puri Limestone of Oligocene to Miocene age within the Elk Anticlinal Structure. Four more wells have since been drilled within the Elk and adjacent Antelope structures. The wells have proven the presence of significant quantities of gas and condensate and increased the potential size of the resource contained within both structures. . The Antelope structure is located immediately south of the Elk structure with gas/condensate intersected within reefal limestone facies of the Puri Limestone unit. Antelope-1 was a gas/condensate discovery within the Antelope Reef made in February 2009.Antelope-2 was a successful delineation appraisal of the Antelope Reef about 4 kilometers south of the Antelope-1 well in July 2009, and is expected to be completed in March 2010. Antelope-3 is the next well to be drilled between the Antelope-1 and Antelope-2 wells during the first half of 2010.

Petromin is committed to this exciting new gas discovery and the possible development of a LNG project based on the Elk/Antelope gas/condensate field.

In late 2008, the Operator InterOil applied for a declaration of location over the Elk/Antelope gas/condensate field to the Minister of Petroleum and Energy. The application was approved in early March 2009; and an Application for Petroleum Retention Licence over 9 blocks declared during the second quarter 2009, was submitted in late 2009. Work will subsequently proceed toward the submission of an application for a Petroleum Development Licence, after the award of a Petroleum Retention Licence.

For early cash generation, the Operator commenced work on the Condensate Stripping Project in 2009. This project involves the production of gas/condensate, stripping the condensate, and re-injecting the gas for the LNG project. Condensate will then be processed and stored for export. Engineering scoping study was completed in 2009, and work is in progress to complete the Front End Engineering and Design phase.

The Project Agreement between the State and InterOil for both the Upstream and Midstream sectors of the Elk/Antelope LNG was signed on 23 December 2009, formalizing the processes of working toward commercializing the hydrocarbon resource of the Elk/Antelope field.

Petromin (or a wholly owned subsidiary of Petromin) was appointed State Nominee for purposes of exercising the State’s entitlement to a 20.5% interest in the Elk/Antelope fields via Instrument of Nomination dated 24 September 2008 under section 6 of the Petromin PNG Holdings Limited (Authorization) Act 2007 (Petromin Act). That Instrument was subsequently gazetted in National Gazette No.G26 dated 11 February 2009. A further Instrument of Nomination was issued under s.6 of the Petromin Act on 16 September 2009 (gazetted in National Gazette No. G180 of 18 September 2009) clarifying that the earlier nomination also extended to “the associated midstream project comprising of the relevant pipeline(s) and petroleum processing facilityies pursuant to the relevant Pipeline Licence(s) and Petroleum Processing Facilities Licence(s) granted under the Oil and Gas Act 1998 to Liquid Niugini Gas Limited”.