From Drillsearch's Quarterly Report June 2013 Completion and commissioning of the Bauer-to-Lycium pipeline Commissioning of the pipeline and associated facilities was completed on 29 April 2013 and commercial operation commenced thereafter Exploration success in PEL 91 delivers continued Western Flank oil Reserves growth Despite delays in commissioning the Bauer-to-Lycium Pipeline, our Financial Year 2013 total production of 1.1 mmboe was a record annual result. Annual total production sales revenue also reached a record high of $99.0 million. Given these record production results from the Western Flank Oil Fields, Drillsearch is setting the platform for additional growth by targeting higher production for the 2014 Financial Year. Our 2014 production forecasts will be announced on Thursday, 29 August 2013 with the release of the Company’s full year financial results. The completion of the Bauer-to-Lycium Pipeline has been a major milestone in Drillsearch’s path to becoming a significant mid-tier producer in the Cooper Basin. The pipeline was commissioned in late April 2013 with commercial operation commencing shortly thereafter. As a result of the current record daily production rates from the Western Flank Oil Fields, the pipeline is operating at nameplate capacity of 10,000 barrels of oil per day (bopd) with additional volumes being trucked to Moomba. There is great potential to continue our strong growth in the Western Flank Oil Fairway following the promising results of the four-well exploration campaign in the PEL 91 permit areas, which commenced on 29 March 2013. The campaign has proven to be highly successful with three oil discoveries from the four exploration wells drilled, which were based on the Aquilius and Limbatus 3D seismic data. On the back of the success of this campaign, 14 exploration, appraisal and development wells are planned for the PEL 91 permit areas in Financial Year 2014.