Stock Ownership Guidelines Claw Back Provisions  E. Remuneration Policy and Framework  - 32 -  Remuneration Consultant  The Remuneration and Nominations Committee  The Remuneration and Nominations Committee makes recommendations to our board of directors in relation to total  remuneration of directors and executives and reviews their remuneration annually. The Committee members are all independent  directors, and independent external advice is sought when required.  Given the unique structure of being traded on the ASX but having a U.S.-based management team and operations, the  Remuneration and Nominations Committee retained Meridian Compensation Partners, LLC (Meridian) as its independent  remuneration consultant for the 2014 fiscal year. Meridian was retained to provide executive and director remuneration  consulting services to the Committee, including advice regarding the design and implementation of remuneration programs that  are competitive and common among the U.S. oil and gas exploration and production industry, competitive market information,  comparison advice with Australian companies and practice, regulatory updates and analyses and trends on executive base salary,  The Board, in its sole discretion, shall reserve the right to claw back any incentive awards issued if any of the following conditions  apply:  Ownership of our stock by our executives aligns their interests with the interests of our shareholders. Accordingly, the Board of  Directors maintains stock ownership guidelines for certain key executive officers. The applicable level of ownership is required to  be achieved within five years of the later of the date these guidelines were adopted or the date the person first became an  executive officer and is based on the executive’s salary at the time these guidelines were adopted or date person first became  subject to guidelines. The net shares acquired through incentive compensation plans (through the exercise of stock options, or  the vesting of RSUs or performance shares) must be retained if the executive has not satisfied his or her targeted ownership. An  executive’s failure to meet the stock ownership guidelines may influence an executive’s future mix of cash and non-cash  compensation awarded by the Committee. Executives are not permitted to pledge their shares or invest in derivatives involving  Company shares. Ownership is reviewed at least annually when compensation decisions are made.  Officer Title  Share Ownership as Multiple of Base Pay  Managing Director and Chief Executive Officer  Five times annual base salary  Remaining Executive Officers  Two and a half times annual base salary  Name  Title  Base Salary at  Commencement  Date  Shares Owned as at  31 December 2014  Estimated Value of  Share Ownership  Times Base  Salary  E. McCrady  MD/CEO  $275,000  1,908,581  $1,813,152  6.6  C. Anderson  CFO  $225,000  275,370  $261,601  1.2  G. Ford  VP of Exploration  and Development  $230,000  376,403  $357,583  1.6 The following table shows share ownership as a multiple of base pay as at 31 December 2014, based on the Company’s  weighted average closing stock pricing of $0.95, calculated at the weighted average closing stock price translated into USD by  multiplying by a weighted average FX rate (per the Reserve Bank of Australia), during the 2014 fiscal year. • The Company’s financial statements are required to be restated due to material non-compliance with any financial  reporting requirements under the federal securities laws (other than a restatement due to a change in accounting rules);  $^{and }$o As a result of such restatement, a performance measure which was a material factor in determining the award  is restated, and  o In the discretion of the Board, a lower payment would have been made to the executive officer based upon the  restated financial results;  • Should it subsequently be found that the information or assumptions are materially erroneous;  • In the event that there is evidence of fraud by any employee resulting in material adverse change in the Company’s  financial statements;  • In the event that there is a material adverse change in the circumstances of the Company. 