RESERVES

During the financial year 2011, the Company announced reserves increases across three of its assets. In Queensland, 2P and 3P reserves increased by 57% and 37% respectively. The Company announced the first independently certified proved gas reserves onshore in South Africa, and in the Bakken, Canada, reserves increases were announced, including the first independently certified 3P reserves for this asset.

As at 30 June 2011 the total Company reserves position was:

Gas - Bscf	1P	2P	3P	Contingent Resource¹	Prospective Resource
Queensland²	23.0	328.0	789.0	568.0	-
South Africa³	9.2	23.0	83.7	652.0	-
Quebec⁴	-	-	-	-	5,500.0
Total Gas	32.2	351.0	872.7	1,220.0	5,500.0
Oil - MMstb
Bakken⁵	0.3	0.6	0.7	1.5	-
Wolfcamp	-	-	-	-	-
Total Oil	0.3	0.6	0.7	1.5	-
Combined reserves MMBoe⁶
Total BOE	5.7	59.1	146.2	204.8	916.7

Notes: ^1. Contingent resources at 2C (best estimate). ^2. Reserves independently certified by Tim Hower of MHA Petroleum Consultants LLC, Denver, USA who has consented to the inclusion of the form and content of the reserves and resources information. ^3. Reserves independently certified by Tim Hower of MHA Petroleum Consultants LLC, Denver, USA who has consented to the inclusion of the form and content of the reserves and resources information. Gross certified reserves have been reduced by 20%, representing BEE participation and government back in rights. ^4. Internally estimated prospective resources (Ian Gorman). These resources were estimated using the Petroleum Resource Management System. ^5. Reserves independently certified by Terry Aarsby of GLJ Petroleum Consultants Calgary Canada who has consented to the inclusion of the form and content of the reserves and resources information. ^6. Gas Reserves (Bscf) convert to Barrels of Oil Equivalent (MMBoe) at 6:1.

PRODUCTION

Total net production for the 2011 financial year was 267,367 barrels of oil equivalent, representing a 70% increase on FY2010 production figures. Oil production in Q3 and Q4 dropped off sharply as a result of the sale of the Spearfish asset and severe flooding in the Company's Bakken acreage. Adverse weather in Queensland impacted production from the trial production wells in the Mungi/Harcourt area.

Molopo Share of Sales Volume (boe)	FY11	% of Total	FY11	% of Total	FY11	% of Total	FY11	% of Total	FY11	% of Total
Oil	52,111	67	85,514	75	38,778	65	0	0	176,403	66
Gas	25,778	33	28,130	25	20,739	35	16,317	100	90,964	34
Total (boe)	77,889	100	113,644	100	59,517	100	16,317	100	267,367	100

Page last updated: 24 Oct 2011