1. CARNARVON PETROLEUM Investor Presentation July 2001

2. 2 Carnarvon History Carnarvon History Incorporated in 1983 as Orca Petroleum and adopted its present name in 1992 No production assets previously Unsuccessful wildcat drilling programs Significant exploration expenditure yielded no profits Sold Perth Basin permits to AusAm Resources in 2000 at a small profit Currently marketing Carnarvon Basin permits for sale

3. 3 The New Carnarvon The New Carnarvon New Board of Directors –Ken Tregonning (Managing Director) –David Orth (Executive Director) –George White (Non Executive Director) –Neil Fearis (Non Executive Director) Acquisition of oil and gas production property in Thailand Revenue stream in place Significant development potential

4. 4 Key Features Undervalued market capitalization Oil and gas reserves in Thailand, PNG and Australia Thailand oil and gas production SW1A JV New, internationally-recognised, technical management Innovative techniques to optimise under-performing assets Up-side from existing assets (SW1A, PNG) and new ventures

5. 5 Business Concept Identify, evaluate and access undervalued assets Provide all requisite skills, expertise and resources for success Maximise return for shareholders

6. 6 Business Plan New focus and company since December 2000 Structured growth with 5 year plan –Cashflow generating venture(s) –Low-cost brown-field acquisitions with exploration upside –Add value through technical excellence and innovation Board reorganisation Name change proposed Relocation to Melbourne

7. 7 Executive Personnel Executive Personnel Dr Ken Tregonning (BSc(Hons), PhD) –Managing Director Two decades international oil and gas experience, starting with Shell in Europe. Experience in S.E.Asia, Australasia, UK, Europe, USA etc. Petroleum and reservoir engineering, economics and management Former Executive Director of Australasian oil exploration company David Orth (BSc, DipGeoSci) – Executive Director Twenty plus years international oil and gas experience with Amoco, BHPP & Triton in exploration, operations & management in Africa, UK, Middle East & South East Asia Involved in discovery of 1 billion BOEs in Gabon, UK, M.East and PNG

8. 8 Future Upside Extend successful drilling program in Thailand –High rates of return and rapid payback from existing discoveries –Significant upside: further drilling, firm oil prices & US$ income –Established strategic position in Thailand for additional ventures Technological value adding –Marginal field development –Improved oil recovery (IOR) –Cost effective field management Further asset acquisition Proactive approach to existing portfolio

9. 9 Earnings Potential Earnings Potential High trading volumes with drilling activity Significant share price leverage Great sensitivity to: –Incremental reserves –Asset acquisition –Drilling success –Operational success Increase in market cap with success –Market responds over time to small oil stocks that deliver

10. 10 Returns to Carnarvon Returns to Carnarvon Cumulative cash flow will greatly exceed investment amount High Internal Rate of Return on investment Maximise tax and capital efficiency

11. 11 Competitive Advantages Competitive Advantages World class expertise in international oil industry Access to state-of-the-art technology Technical and cultural knowledge of Asia and Middle-East

12. CARNARVON PORTFOLIO Assets and Opportunities

13. 13 Current Reserve Portfolio Current Reserve Portfolio Thailand, SW1A: –Oil reserves of 10 MMBO: Development drilling commences September 2001 –Current production rate 350 to 400 BOPD from 3 wells –Operator: Pacific Tiger Energy, Canadian listed company (PTE) PNG, PPL157: –Reserves 914 BCF (gas) & 46 MMBO in 3 gas/condensate fields Australia, WA 254 P & AusAm: – Sage discovery 1-4 MMBO & Argos prospect – 11% equity in AusAm & royalty in Perth Basin permits

14. 14 Thailand Thai deal comprises: –Wichian Buri Field –Si Thep Field –Na Sanun discovery –Expl. Res. Area –L44/43 application Additional options: –Other untested zones –Open acreage

15. 15 Thailand Excellent fiscal terms –Only 5% royalty –Tax losses of U$10m available SW1A Concession: –Low cost producing oil field –17 MMBO upside –10,000 BOPD upside Additional opportunities being assessed

16. 16 SW1A Joint Venture SW1A Joint Venture SW1A producing 400 BOPD from 3 wells Carnarvon’s share 40% (Pacific Tiger hold 60%) Drilling of development wells starting September 2001 Increase production to 2,500 BOPD by June 2002, >5,000 BOPD by Dec 2003

17. 17 Current SW1A Potential Current SW1A Potential Two producing oil fields, Wichian Buri and Si Thep –Proved case: 5 MMBO reserves 2,500 BOPD, 6 year lifetime Recent drilling added 200-300 BOPD from 2 wells Field extension scenarios: –Base case(2P): 10 MMBO reserves, >5000 BOPD, 8 year lifetime –Upside(3P): 17 MMBO reserves, >7500 BOPD, 12 year lifetime

18. 18 Operating Cash Flow & Production Projections SW1A JV Base Case – Carnarvon 40%

19. 19 Comparative Market Value Comparative Market Value Values as at March 2001 Enterprise Value $m Market Capitalisation $m As at 31 March 2001

20. 20 Highlights New board of directors Underlying production asset Market yet to understand the production and cashflow potential of the Thailand assets Opportunity for share price re-rating through development well program Increased oil production will provide Carnarvon with strong operating cash flows

21. 21 Contact Details Ken Tregonning Ph 03 9824 2104 David OrthPh 03 9824 2104 Len Troncone Ph 08 9325 6344 Website : www.carnarvon.com.au