Financial Position Cashflow  Matters Subsequent to the End of the Financial Year  Future Developments, Prospects and Business Strategies In May 2014, the borrowing capacity under our credit facilities increased from an aggregate of $63 million to $135 million. The  increase in the borrowing capacity was driven by the significant uplift of the Company’s proved oil and gas reserves as at 31  December 2013. In conjunction with the increase in the Company’s borrowing capacity, the Company expanded the syndicate  of banks under the Senior Credit Facility. Bank of America Merrill Lynch and the Bank of Nova Scotia have now joined the bank  group which is led by Wells Fargo.  In July 2014, the borrowing capacity increased an additional net $10 million, to $145 million, after taking into consideration  the removal of proved oil and gas reserves associated with the DJ and Williston Basin dispositions and the development of  proved oil and gas reserves in the Eagle Ford Formation. At 31 December 2014, the Company had $130 million outstanding under our credit facilities and $15 million available under  our borrowing capacity. Ending cash at 31 December 2014 was $69.2 million.  Cash provided by operating activities for the year ended 31 December 2014 increased 104.5% to $128.1 million compared to  the prior year. This increase was primarily due to receipts from sales increasing $85.7 million, or 101.2%, to $170.4 million,  while keeping payments to suppliers and employees relatively stable with an increase of $8.2 million, or 37.7%, to $30.0 million. See Review of Operations for more information.  Cash used in investing activities for the year ended 31 December 2014 increased $158.9 million, or 96.7%, to $323.2 million. This increase is due to successful implementation of the Company’s strategy to develop and grow the reserves from our high  working interest, repeatable resource plays, primarily in the Eagle Ford. Due to funding available to the Company through  asset sales, capital raises and credit facilities, the Company was able to accelerate its 2015 drilling program into 2014. However,  due to the reduction in crude oil prices in the fourth quarter of 2014 and continuing into early 2015, the Company will scale  back its drilling program to concentrate on limited drilling obligations to hold Eagle Ford acreage during the 2015 year. Cash provided by financing activities for the year ended 31 December 2014 increased $123.1 million, or 277.0%, to $167.6  million. This increase is a result of the increased availability and draws under the Company’s credit facilities and proceeds  received in a private placement of shares. In February 2014, the Company completed a private placement in which we sold  84.2 million ordinary shares at A$0.95 per share, resulting in net proceeds of approximately $68.4 million. The first tranche of  63.7 million shares was issued in March 2014 and the second tranche of 20.5 million shares was issued in April 2014.  Subsequent to 31 December 2014, an additional $13.9 million was drawn-down the credit facilities, bringing total outstanding  debt to $143.9 million, with undrawn funds of $1.1 million. In January 2015, the company acquired three leases totalling approximately 14,180 net acres in the Eagle Ford for  approximately $13.4 million.  The Group’s business strategies and prospects for growth in future financial years are presently concentrated on growing the  value of the Group’s current resource plays through direct leasing from mineral owners, small acquisitions of producing  properties, drilling inventory within the Group’s current balance sheet capabilities, and development of the Group’s current  acreage. Further information on likely development in the operations of the Group and expected results of operations has not  been included because the Directors believe it would result in unreasonable prejudice to the Group.  - 21 - 