INDEPENDENT AUDITOR’S REPORT  PricewaterhouseCoopers ABN 52 780 433 757 Freshwater Place 2 Southbank Boulevard SOUTHBANK VIC 3006 GPO Box 1331 MELBOURNE VIC 3001 DX 77 Telephone 61 3 8603 1000 Facsimile 61 3 8603 1999 www.pwc.com/au We have audited the accompanying financial report of Karoon Gas Australia Ltd (‘the Company’), which comprises the consolidated  statement of financial position as at 30 June 2011, the consolidated statement of comprehensive income, the consolidated  statement of changes in equity and consolidated statement of cash flows for the financial year ended on that date, a summary of  significant accounting policies, other explanatory notes and the Directors’ Declaration for the Group. The Group comprises the  Company and the subsidiaries it controlled at the year’s end or from time to time during the financial year. The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance  with Australian Accounting Standards and the  Corporations Act 2001  and for such internal control as the Directors determine is  necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.  In Note 1, the Directors also state, in accordance with Accounting Standard  AASB 101 Presentation of Financial Statements , that  the financial statements comply with International Financial Reporting Standards. Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with  Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to  audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from  material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The  procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the  financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant  to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in  the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An  audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates  made by the Directors, as well as evaluating the overall presentation of the financial report. Our procedures include reading the other information in the Annual Report to determine whether it contains any material  inconsistencies with the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.  Liability limited by a scheme approved under Professional Standards Legislation 82 Karoon Gas Australia Ltd  Annual Report 2011 Independent Auditor’s Report to the Members of Karoon Gas Australia Ltd Report on the Financial Report  Directors’ Responsibility for the Financial Report Auditor’s Responsibility 