Investor Update: FY 2012Investor Update:  FY 2012

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DisclaimerThis document has been prepared by Quest Petroleum NL, (“Quest”) in connection with providing an overview tointerested analysts and investors.

The information in this document that relates to oil exploration results and reserves is based on information compiled byThe information in this document that relates to oil exploration results and reserves, is based on information compiled bythe Company’s Technical Director, Mr Saxon Palmer, who is a Director of the Company. Mr Palmer consents to theinclusion of the reserves and resource statements in the form and context in which they appear.

This presentation contains forward looking statements which involve subjective judgement and analysis and are subject tosignificant uncertainties, risks and contingencies including those risk factors associated with the oil and gas industry, manyof which are outside the control of and may be unknown to Questof which are outside the control of and may be unknown to Quest.

No representation, warranty or assurance, express or implied, is given or made in relation to any forward lookingstatement. In particular, no representation, warranty or assumption, express or implied, is given in relation to anyunderlying assumption or that any forward looking statement will be achieved. Actual and future events may vary materiallyfrom the forward looking statements and the assumptions on which the forward looking statements were based.

Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements, andshould rely on their own independent enquiries, investigations and advice regarding information contained in thispresentation. Any reliance by a reader on the information contained in this presentation is wholly at the reader’s own risk.

Quest and its related bodies corporate and affiliates and their respective directors, partners, employees, agents andadvisors disclaim any liability for any direct, indirect or consequential loss or damages suffered by a person or persons asa result of relying on any statement in, or omission from, this presentation.

Subject to any continuing obligations under applicable law or any relevant listing rules of the ASX, Quest disclaims anyobligation or undertaking to disseminate any updates or revisions to any forward looking statements in this presentation toreflect any change in expectations in relation to any forward looking statements or any such change in events, conditionsor circumstances on which any such statements were based.F

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Overview Corporate:

– Quest is an oil and gas exploration company focussed on Sumatra, Indonesia– The Indonesian economy is one of the fasting growing in the world and has rapidly

expanding domestic energy demandexpanding domestic energy demand– Indonesia is one of the largest oil and gas producers in the world– Quest has an experienced Board and management team with a proven track record in the

oil and gas sector and operating in Indonesia Project: Project:

– The Ranau Production Sharing Contract (PSC) covers 2,191 km2 of prospective extensions ofthe prolific South Sumatra Basin

– Quest has an 80% interest in the Ranau PSC– Four project areas (Sub‐Basins) identified, initial exploration focus on an extension of a

proven sub‐Basin– After tax profit splits of 65:35 for gas and 75:25 for oil are some of the most favourable in

Indonesia– Ranau PSC located close to the South Sumatra West Java Gas Pipeline

Value catalysts:.– Immediately begin a seismic acquisition program to further refine drill targets– Drill prospects with Tcf (or 100’s MMbbl) potentialDrill prospects with Tcf (or 100 s MMbbl) potential– Quest actively sourcing additional oil and gas opportunities in Indonesia

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Quest – Current Snapshot

Shares on Issue 2,038m (post Merric acquisition)

Cash¹ $3.4m; No debt

Listed Options 336m exercisable @ 1.5c, 30 June 2016

Market Cap $8mts)

e Pr

ice

(cen

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1) Including bank guarantee and funds held in a performance bond to be drawn down as work program progresses

Shar

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QPN Historical Share Price

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Location Mapp

Sumatran gas is sold into the lucrativeinto the lucrative Singapore market

Ranau PSCRanau PSC

Established domestic and industrial gas a d dust a gas

markets in West JavaFor

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Experienced Board of Directors

Mr. John (Gus) Simpson ‐ Chairman ‐ brings an extensive range of corporate and commercial expertise to thecompany. He is currently Executive Chairman of Peninsula Energy Limited a Wyoming focused energy developerand he has over 20 years experience in the management of companies with international operations.

Mr. Saxon Palmer – Technical Director ‐ is a geologist with over 20 years of experience and has appraised oil &gas opportunities in most of the major gas basins in the world. He has held senior management positions withBP and BHP Billiton and was most recently Exploration Manager (Australia/Asia) for BHP Billiton. Mr. Palmerbrings extensive technical oil and gas expertise to the Board.

Mr. Greg Lee – Non‐executive Director ‐ is an experienced petroleum engineer with 28 years of experience in oiland gas field development and management, petroleum/production engineering and drilling operations. Mr Leeoperates as an independent consultant petroleum engineer to major oil and gas companiesoperates as an independent consultant petroleum engineer to major oil and gas companies.

Mr. Brett Mitchell – Non‐executive Director ‐ has worked for both for the past 19 years as a corporate finance executive. Mr Mitchell holds a Bachelor of Economics degree from the University of Western Australia and has specific experience in the financial markets and the resource sector. Mr Mitchell is currently Director of Transervspec c e pe e ce e a c a a e s a d e esou ce sec o c e s cu e y ec o o a seEnergy Limited, Wildhorse Energy Limited and Tamaska Oil and Gas.

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Indonesian Economyy

Indonesia’s economic performance remains positive, and future potential is even greatergGrowth moderated slightly in Q1 2011 but still came in at a robust 6.5 percent year‐on‐yearThe World Bank; Indonesia Economic Quarterly, June 28, 2011

Indonesia Economy Expands 6.9% in Fourth Quarter, Fastest Pace Since 2004y p Q ,Bloomberg; Feb 7, 2011

Indonesia: Towards a one trillion dollar economyIndonesia: Towards a one trillion dollar economyThe Jakarta Post; October 05, 2011

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Indonesian Gas Markets

Govt promises to solve supply shortage  The Jakarta Post, Jakarta | Mon, 03/15/2010

LNG Terminals to relieve Indonesia’s gas shortage OIL & GAS JOURNAL 06/28/2010

RI to import 4.5m tons of LNG starting in 2013 The Jakarta Post, Jakarta | 02/24/2011

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Indonesian Gas Prices

G P i (D ti I d t i l C t ) (SOURCE)Gas Prices (Domestic Industrial Customers) (SOURCE)

$7.00

$8.00

PT PGN IndustrialSD/M

cf

$4.00

$5.00

$6.00

PT PGN Industrial US

$1 00

$2.00

$3.00

$0.00

$1.00

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Regional Oil and Gas Markets

• Ranau area is adjacent to the recently completed South Sumatra – West Java (SSWJ)Sumatra  West Java (SSWJ)gas transmission pipelines and processing infrastructure

• SSWJ pipelines supply large markets in Sumatra, West Java and Singapore

• Domestic gas markets are growing rapidly as distribution networks are built

Ranau PSC

• Gas prices achieved  in Indonesia are currentlyUS$5‐7/McfUS$5 7/McfF

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Regional Gas Marketsg

US Gas Production and Imports1,500

G S l G D d

West Java Gas Supply/Demand

20,000

25,000Imports

Production1,200

South Sumatra

CNOOC

PHE - ONWJ

Non-EnergyHC&IPower

Gas Supply Gas Demand South Sumatra toWest JavaPipeline Addition

15,000

BC

F

900

msc

fd

Pertamina

5,000

10,000

300

600mm

-1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

Year02002 2003 2004 2005 2006 2007 2008 2009F

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Petroleum Basins of Sumatra

NorthSumatra

Basin

• Sumatra has 3 extremely oil and gas prone basins

Central

• These have been explored and produced since 1885, yet remain under‐funded and have significantSumatra

Basin

under‐funded and have significant  potential for further development

Basin Oil &Gas

DiscoveredReserves

SouthSumatra

Basin

Gas Fields

Reserves (MMboe)

North Sumatra Basin 62 5,352

Central Sumatra 199 30,143Basin

South Sumatra Basin 189 12,112

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Scale Comparisonp

S t i th 6th l t i l d i• Sumatra is the 6th largest island in the world

• The petroleum basin area is pequivalent to the North‐West Shelf of Australia with a much higher density of oil & gas fields and resourcesand resources

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South Sumatran Sub‐Basins

• South Sumatran oil and gas fields occur in, and around discrete sub‐Basins

FieldOil/gas field

Sub-Basin and around, discrete sub‐Basins

• Sub‐Basins are the focus for deposition of oil/gas prone source rocks and act as depocentres for reservoir quality sands

• Quest has identified 4 new and very lightly explored sub Basins that form an extensionexplored sub‐Basins that form an extension of the prolific South Sumatra Basin.

• The Ranau PSC gives Quest a dominant position of 2,191km2 over these sub‐Basins. 

Ranau PSCFor

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Ranau PSC

– Granted 21st November 2011

– Quest holds an 80% interest in the PSC– Quest holds an 80% interest in the PSC

– 30 year contract with initial 6 year exploration period

– After tax profit splits of 65:35 for gas and 75:25 for oil are p p gsome of the most favourable in Indonesia

– Located within 50km of large oil and gas producing areas

– Quest has identified 4 new and very lightly explored sub‐basins that are extensions of the South Sumatra Basin.

– Inexpensive onshore wells in simple drilling conditions– Inexpensive , onshore wells in simple drilling conditions

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Ranau PSC – Project areasj

• Residual Gravity Anomaly map represents depth to economic basement. Blue indicates sub-

Raja Sub-BasinGogan

Sub-Basin

Basins where oil and gas can be generated.

• Prospects occur in surrounding high areas

Ratu Sub-Basin

high areas.

Jaya Sub-Basin

Line of Cross-section 0 40km20Line of Cross-section 0 40km20For

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Ranau PSC – Structural Cross‐section

• Gravity data has been used to identify very large prospects (>25km2) within Sub-Basins.

• These have the potential to hold Tcf of gas or 100’s MMbbloil. These will be further defined by 2D seismic to select optimal drilling locationsoptimal drilling locations.

Jaya sub-BasinRatu Sub-Basin

ProspectProspect

)0 10km

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Schematic Petroleum SystemSchematic Petroleum System identical to the prolific South Sumatra Basin

Wai Tahmi Oil Seep

y

Sandstone Reservoir

Trap in structure associated with basement fault

Trap in structure associated with basement fault

Oil and Gas Source rockin Sub Basin

Migration of oil and gas alongin Sub‐Basin and gas along permeable beds

0 4km

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Ranau Block Sub‐Basin Potential

Jaya Sub‐Basin

Ratu Sub‐Basin

Raja Sub‐Basin

Gogan Sub‐BasinSub Basin Sub Basin Sub Basin Sub Basin

Area: 550km2 320km2 430km2 280km2

Hydrocarbon type:

Gas with possible oil

Gas with possible oil

Most likely oil Most likely oil

Potential prospect sizes:

0.2 – 3 Tcf 0.1 – 1.5 Tcf 20–100 MMbbl 10–60 MMbbl

Priority for exploration:

1 2 3 4

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Ranau Gas Project – Planned Activity2H 2011 1H 2012 2H 2012 1H 2013

Jaya Sub‐Basin

2D Seismic

Ratu Sub‐Basin

2D Seismic

Well planningDrilling

Raja Sub‐Basin

2D Seismic

Well planningDrilling

2D Seismic

Well planningDrilling

Gogan Sub‐Basin

2D Seismic

Well planningD illiDrillingF

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Value Proposition

• Quest is an oil and gas exploration company focused onSumatra, Indonesia

• Immediately begin a seismic acquisition program to furtherImmediately begin a seismic acquisition program to furtherrefine drill targets at Ranau

• Drilling prospects with Tcf (or 100’s MMbbl) potential

• Quest well positioned to access further oil and gas• Quest well positioned to access further oil and gasopportunities in Indonesia

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This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and 

regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

All references to dollars, cents or $ in this presentation are to U.S. currency, unless otherwise stated.

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