19 May 2009

ASX Limited
Company Announcements Office
Level 4 Exchange Centre
20 Bridge Street
SYDNEY NSW 2000

Kairiki’s Investor Update Presentation

Please find attached Kairiki’s Investor Update presentation.

Resources Estimates:

All potential hydrocarbon resource estimates in the attached presentation have been compiled by Mr L Brown, the
managing director of Kairiki. Mr Brown is qualified with a joint degree with Bachelor of Science (Honours) in Geology and
Geophysics from Durham University in the United Kingdom and more than 25 years relevant experience.

For further information please contact:

Laurie Brown
Managing Director
Kairiki Energy Limited
61 (8) 9388 6711

Company Highlights

ASX listed oil and gas company pursuing high impact Ongoing farm-out activities in the Philippines being
projects in proven oil basins undertaken

Focus on commercialising Philippines discoveries Quality board and management team

targeting First Oil in 2010

Kairiki Energy Limited | Suite 3 Churchill Court | 331 – 335 Hay Street | SUBIACO WA 6008 AUSTRALIA
Phone: (+61 8) 9388 6711 | Fax: (+61 8) 9388 6744 | Website: www.kairikienergy.com | ABN: 34 002 527 906
 Investor Update
p
Kairiki Energy
gy

Sydney
May 2009
Disclaimer

This presentation contains forward looking statements that are subject to risk
factors associated with the oil and gas industry. It is believed that the
p
expectations reflected in these statements are reasonable, but theyy mayy be
effected by a variety of variables which could cause actual results or trends to
differ materially, including but not limited to: price fluctuations, actual demand,
currency fluctuations, drilling and production results, commercialisation,
development progress, operating results, reserve estimates, loss of market,
industry competition, environmental risks, physical risks, legislative, fiscal and
regulatory developments, economic and financial markets conditions in various
countries,
ti approvals
l and
d costt estimates.
ti t
Kairiki’s Board – International Experience
Paull Fry,
P F Ch
Chairman
i
• Former oil and gas industry partner with Ernst & Young and PwC with >20 yrs
experience, advising oil & gas companies in North America & Australia in financial,
commercial and regulatory matters. Co-founder
Co founder of Kairiki.

Laurie Brown, Managing Director

• Petroleum Geoscientist with >25 yrs international experience; multi-nationals
multi nationals to juniors
17 yrs with BP, 2yrs in Woodside inc 2 yrs Shell Global Consultant. 8 yrs key
positions in Juniors. Led global exploration teams to success in deepwater centres
including Mauritania & Nigeria. Co-founder of Kairiki 3 years ago. Proven oil finder.

Rae Jefferies, Non Executive Director

• Reservoir Engineer with >25 yrs experience with majors on a range of projects from
small onshore fields to major deepwater fields in UKUK, US
US, Australia & Africa.
Africa Specialist
skills in field development planning, field optimisation and reservoir management.

Jyn Sim Baker

Baker, Non Executive Director
• Corporate Lawyer with over 20 yrs experience. As CEO of IMC Resources Group,
brings corporate & commercial skills. She is responsible for investments in mining
resources, oil and gas resources and the vertical integration process for the IMC's core
b i
businesses in
i shipping
hi i and d logistics.
l i ti
KIK Achievements
• Drilled two back
back-to-back
to back discoveries (100% success rate) in SC 54 in Sept/Oct 2008

• Independently assessed mean resources in place of 19mmbbls oil in 2 targets,

7.8mmbbl recoverable at 40% recovery rate

• Inboard portfolio – substantial upgrade to >200mmbbl mean oil in place in Top 12 targets

• Next phases in strategy underway - planning for First Oil via jack-up based facility within
12 months. Partnership aligned.

• F
Farm-down
d off SC54 inboard
i b d block
bl k underway
d to
t Focus
F Energy
E

• Outboard prospects inventory in SC 54B – final 3D data confirming Gindara and LapuLapu
leading candidates for drilling with volume and risk-profile
risk profile upgrade likely 3Q09.
3Q09

• 2008 - raised equity proceeds of A$14.1m & US$10m via con note with IMC to fund drilling

• Responded to current market conditions – focus on Philippines exploitation and exited

other high risk exploration ventures, reduced cash burn

• 2009 – plan to develop inboard portfolio to deliver first production initially from Tindalo
KIK’s near-term exploitation-led potential; SC54
Late 2008 - Drilling Northern SC54
SC54, Philippines; >1000km2 3D,
3D >40 targets
100% success in back-to-back maiden discoveries.
5 in a row on block. >30 more shallow water targets. 5 km
Top 12 total >200mmbbl mean un un-risked
risked in place.
place
Post farm-down >10mmbbl net KIK risked recoverable
Gindara
Current
Farm-down to Focus in progress on SC54A. Results in Lapu
cash injection of US$7m to KIK & carry for next Lapu
US$26m of program, beyond First Oil (c.US$20m).
KIK retains 23% in SC54A, and retains full 40% in
outboard SC54B.
Outboard
<12 months project Inboard
area project
First Oil & cash flow within 12 months. Self funding SC54A area
SC54B
strategy potential thereafter.

Beyond
Outboard, KIK 40% - Gindara & LapuLapu prospects
large scale low risk targets; fully de-risked by end
2Q09. Option to drill
d ll from
f cashh flow
fl
KIK Capital Structure & Price Performance
30 0
30.0 Shares 439.16m
439 16m
Unlisted Options 21.75m
25.0 Total 460.91m
osing price (cents)

Conv. Notes 73.5m*

20.0
Yakal Discovery
15.0
Weekly clo

10.0
Tindalo Discovery
Strong shareholder support
50
5.0 • European,
E A
Asian
i & Australian
A t li Institutions
I tit ti
W

• High Net Worth Individuals

• Top
p 20 account for 65% of capital
p
0.0

• Cash at 18 May 2009 – approx A$1.7m (post-financing)

Thank God we didn’t drill three

 Kairiki Energy

Philippines – SC54
Shallow water exploitation potential
Re-rating
Re rating of the shallow water P&L
Initial Results – outboard prospectivity
Philippines NW Palawan Basin – SC 54
Philippines
• Amongst best fiscal terms in SE Asia
• Up to 100% contractor take during EWT producn
• Si ifi
Significant industry
i d & investor
i interest
i in
i Philippines
Phili i

NW Palawan Basin
• At forefront of SE Asia renaissance
• Presence of Majors, NOCs, midcaps & juniors;
Palawan Is
Shell, Chevron, CNOOC
• Most prolific basin of 13 in Philippines
• Exceptionally high historical finding rates

SC54 – Inboard
Inboa d KIK 23%
23%, o
outboard
tboa d KIK 40% Brunei Sabah
• Inboard – SC54A; multiple Rapid Oil Development
opportunities (31 targets)
Sarawak
• 2 wellll 2008 program, 100% success
• First Oil target <12months - transformational
• Outboard – drill-ready company-maker potential
• SC 54 Block Partitioning process underway; provides strategic flexibility
NW Palawan Basin – geology underpins basin success rates

Proven Source Kitchen - Driving engine for multiple discoveries

Calauit
Bantac oil pools
West Linapacan Oil
Up to 18 kbopd
San Matin Octon & Galoc
Gas clastic oil fields
Malampaya Galoc ~ 15 kbopd from Galoc
giant oil-gas cond. field
Up to 23 kbopd from 1 well!

Destacado 200km proven oil & gas

tight gas charge system. Multiple
productive stacked sources

Gindara Matinloc reef

Prospect trend: 5 oil-fields
14 Mmbbls produced
Up to 18 kbopd

Nido A & B Cadlao Field

up to 40kbopd 11.11 mmbbls produced
18.2 Mmbbls to date > 5 Mmbbls Remaining

Nido-1X1 SC54A
Oil pool >1,400 bopd Signal Head-2
SC54B* >93m oil column

50 km
Yakal
Nth & Tindalo
Palawan
7.8 Mmbbls mean recoverable

Note: Process of Partitioning of SC54 into SC54A and SC54B underway

 Pinnacle play drilling overview
• 2008 two well drilling program completed with
back-to-back maiden discoveries – exceeded
expectations Yakal Tindalo

• 100% success rate. Track Record – 5 from 5

discoveries on valid tests all within SC 54

• Top level Yakal & Tindalo well results:

• Combined >200m proven oil column
• 19.4mmbbl mean oil in place
independently assessed

• 7.8mmbl mean recoverable (40% RF)

• 31 targets in SC54A; all jack-up accessible
• >200mmbbl mean unrisked in place in Top 12

Post-farm down (KIK 23%) KIK estimates Top 12 can deliver

>10 mmbbl risked mean recoverable net to KIK
SC54A Shallow Water Pinnacles
Pinnacle play overview – just the beginning.
First Oil 2010 targeted through a jack
jack-up
up rig-based
rig based production facility.
Multiple potential development opportunities
Yakal Tindalo
in multiple
p hubs. Leveraging
g g off current environment:

• Low Capex – rig rates 30% of past cost

• Excellent fiscal Terms – up to 100% in EWT
• Prolific flow potential – 7k to 12kbopd
in adjacent offset fields

• Exposure to rapid cash flow – 1Q 2010

• Attractive economics – screened to sub-$35 oil
• <US$20m to First Oil capex (gross)

• Highly attractive in aggregation

• Simple; discovery well is the development well
Potential for self funding strategy – scale through aggregation
First development could fund the rest; likely to start with Tindalo
SC54A Shallow Water Pinnacles
2008 Drilling: Yakal & Tindalo Discoveries
500 m Y k l 1
Yakal-1 1 km D th to
Depth t Top
T Reservoir
R i

Tindalo-1

Nido
NidoLimestone
Fm

500
1 km m Discovered a
Depth
ept to Top
op Reservoir
ese o
124 to
124m t 144m
144
oil column (Isis)

1 km
1 km Tindalo-1
Nido-1

Nido Fm

Yakal-1
Discovered
sco e ed a 78
8 to
98m oil column (Isis)

SC54A Shallow Water Pinnacles

Chain of successive oil discoveries – the Nido ‘Hub’
NIDO “A”
A PLATFORM

Signal Head
Cluster

Signal Head

Nido Fields – A & B Custodio

Nido A – 6 MMBBL produced Guntao

Nido B – 13 MMBBL produced; Cluster
3 producers @ peak 29
29,504
504 bopd

Nido
Cluster Tindalo Discovery
Discoveries
Discoveries 124m to >144m oil column
(7 on block)
( ) SC14A
NIDO
OB
Yakal
Y k l Discovery
Di
Key Targets NIDO – 1X1
78m to 98m oil column
NIDO A

Top Nido Reservoir 10 km

3D Depth Map (SC54A)
Partitioning process underway
SC54A Shallow Water Pinnacles
Nido Hub - 5 Consecutive Discoveries on Fill-Spill Chain
Nido B Field
Nid Fi ld Fi ld Nido-
Nido A Field
Nid Nido 1X1 Yakal -1
1 Tindalo -1
1 N. Nido updip
Nido-1
Nid 1 N. Nido-1
13 Mmbbls 6 Mmbbls 1,464 Higher risk
2008 1,400 2008 V good
Recovered Recovered bopd High volume
Oil Well bopd Oil Well oil shows
target

A ?
A’
A

?Up-dip
Pool
?Up-dip
?Up dip
Pool
?OWC?

124->144m
Oil col
78-98m
15m Oil col
Oil col
200m 159m Off A’
Oil col structure
Oil col
A

SC14A (SC54A)
SC54A Shallow Water Pinnacles
Vuggy Porosity; key to higher commercial deliverability

Image Log
I L Dual Porosity System – Vugs + Matrix porosity
from Yakal-1
Vuggy Porosity – behaves on production like a sponge:

67cm • Apparent on modern image logs - first time observed

in SC54 pinnacles (technology post-dates wells)

• Large oil-filled voids; mini caverns up to 35cm across

• Bodes well for:
cm

• Excellent
ce e t co
connectivity
ect ty and
a d initial
t a drainage
d a age
100 c

• High initial flow productivity

• y high
Likely g recovery
y rates – front-end loaded
• Underpins historically observed very high flow
rates (initially from vugs – 6 to 24mths in Nido
Typical fields) followed by long tail to production,
production as
Matrix matrix recharges vugs
porosity Strongly positive implication in significantly upgrading
previously released (Nov 08) resource potential

SC54A Shallow Water Pinnacles

Shallow Water SC54: forward path

9 Resource range of the 2008 discoveries – completed (Isis independent)

9 Petrophysics & reservoir geology - complete

9 Independent
p Resource Statement – complete
p

9 Impact on prospect inventory – close to complete

¾ Development Planning and studies to deliver First Oil – coming months

¾ Partition of block into SC54A & SC54B – in progress

p g

¾ Final Investment Decision – 3Q 2009

¾ Rig Contracting – critical to negotiate & deliver correctly – in progress

¾ First Oil via jack up production facility – aim early 2010

SC54A Shallow Water Pinnacles

Independently assessed Tindalo/Yakal Resources – Feb2009

November 2008 – KIK Conventional Analysis of resources – vuggy porosity excluded

mmbbls Tindalo Yakal Total

Low Mid High Low Mid High Mid
KIK November
o e be 2008
008 Co
Conventional
e to a
41
4.1 59
5.9 79
7.9 17
1.7 24
2.4 31
3.1 83
8.3
Analysis STOIIP
Indicative Reserves at 50% RF* 2.95 1.2 4.15

February 2009 – Isis/Baker assessed resources – vuggy porosity included +88%

mmbbls Tindalo Yakal Total

P90 P50 P10 Mean P90 P50 P10 Mean Mean
Isis Feb 2009 STOIIP 5.0 11.0 24.5 13.4 2.4 5.1 10.7 6.0 19.4
Indicative Reserves at 40% RF* 5.4 2.4 7.8
* Globally, organic carbonate build-ups average recovery factor of 51% : SPE Paper 84459 - Quantification of Uncertainty
in Recovery Efficiency Predictions: Lessons Learned from 250 Mature Carbonate Fields by S Quing Sun et al
SC54A Shallow Water Pinnacles
 Kairiki Energy

Philippines – SC54
Shallow water exploitation potential
Re-rating
Re rating of the shallow water P&L
Initial Results – outboard prospectivity
SC 54 Inboard prospects – top 12 opportunities

2 2008 back-to-back
Signal Head North B 1
4
2
discoveries
Custodio 3 Tindalo & Yakal
North Lawaan 5 2 PUD/discoveries
Custodio 7 Custodio-1 Updip Nido-1X1; flow tested in ‘79
Sth strat.
Signal Head South 6 Signal Head-2; >93m oil col
col.
8 9
10 Kamagong
11 12 Signal 7 Material pinnacles
13 Head-2
redrill
Typically
yp y 70+% POS
15 14 North Nido-1 East
16
X
17
1 High volume, higher risk
exploration
p target
g
Tindalo-1 North Nido-1 35 - >100mmbbl in place
updip
Yakal-1 +
X
18 18 other identified pinnacles &
Potential hub 1 stratigraphic target
Nido-1X1 tieback radius
A total of 31 potential
drill candidates!
SC54A Shallow Water Pinnacles
SC 54A Inventory; Top 12 out of 31 Oil in Place estimates
KIK estimates (post-Isis, Mar09)
Areal Water Top STOIIP STOIIP STOIIP Mean
KIK
Estimates
Target extent depth reservoir low case mid case high case STOIIP
(km2) (metres) (mSS) (mmbbls) (mmbbls) (mmbbls) (mmbbls)
5%

Tindalo-1 discovery^ 0.29 114 1,736 5.0 11.0 24.5 13.4

OS
PO
95

Yakal-1 discovery^ 0.48 101 1,577 2.4 5.1 10.7 6.0

90%
POS

Nido 1X-1 discovery^* - 36 1,855 2.4* 6.6* 17.4* 8.8

Signal Head-2 discovery ~0
0.4
4 76 <903 7 43
7.43 12 74
12.74 21 80
21.80 15 09
15.09

Estimates
Lawaan 0.63 85 1,255 12.50 21.43 36.65 25.38
North Nido-1 updip (4 way) 0.59 80 1,560 7.79 13.36 22.85 15.82
Signal Head North-B 0.38 87 1,325 5.92 10.15 17.36 12.02
70%
POS

Custodio-1 re-drill 0.87 60 1,225 4.18 7.17 12.27 8.50

KIK
Kamagong 0.27 65 895 4.16 7.13 12.19 8.44
Signal Head South ~00.25
25 78 ~11,350
350 4 13
4.13 7 08
7.08 12 11
12.11 8 38
8.38
Custodio North 0.29 87 1,160 2.45 4.20 7.18 4.97
15%
POS

North Nido-1 East** 1.02 76 1,150 36.61 62.77 107.37 74.35

P
1

201
Top 12 Mean oil in place (KIK)
mmbbl
^ Independently assessed. * Nido 1X-1 straddles the SC54/SC14A boundary. ** low side fault trap with higher risk profile
N t Gl
Note: Globally,
b ll organici carbonate
b t build-ups
b ild average recovery factor
f t 51% (SPE P Paper 84459 Reference:
R f Quantification
Q tifi ti off
Uncertainty in Recovery Efficiency Predictions: Lessons Learned from 250 Mature Carbonate Fields by S Quing Sun et al)

SC54A Shallow Water Pinnacles

 SC 54A Inboard Portfolio; Top 12 out of 31
KIK estimates: Risked & unrisked mean recoverable estimates (post-Isis)
Unrisked Gross Mean Reserves (mmbbl) Note: 40%
Risked Gross Mean Reserves (mmbbl)
recovery factor
applied to mean
23.38
33.40
29.74 STOIIP figures
POS 70% 4.46
POS 15%

POS 95%
POS 90%

13.77 7.51
7.14
Recent Discoveries 12.40
Previous Discoveries
c.21mmbbl unrisked recoverable c.20mmbbl risked recoverable
Low Risk Exploration
(>25% of total) in targets >90% POS (>40% of total) in targets >90% POS
Higher Risk Exploration
Total
T t l Mean
M Top
T 12 T t l Mean
Total M Top
T 12
84mmbbl recoverable unrisked 47mmbbl recoverable risked
(upside 137mmbbl) (upside 77mmbbl)
Inboard SC54 Portfolio SC54A Shallow Water Pinnacles
>10mmbbls risked recoverable estimated net to KIK post-farm down
Beyond the First Hub: Signal Head Cluster

Looking East towards Basin Margin

Lawaan: potential candidate for
Follow-up
Follow up shallow drilling
Kick starts 2nd hub
>10mmbbl mid case recoverable
Signal Head
N th B
North-B
Edge of a
4th Pinnacle

>93m oil column in

Signal Head-2 well
OIL CHARGES THIS AREA!

Signal Head
North-C
N
1 km

SC54A Shallow Water Pinnacles

 Kairiki Energy
Philippines

100% success in the shallow water

Re-rated the shallow water P&L
Initial Results - outboard prospectivity
SC54B – Company Maker scale outboard targets; KIK 40%
now defined by state-of-the-art Pre-stack depth 3D
5 km

Princesa
Pugita North

Tilapya

Princesa
West Pagi

Gindara
Gi d
West

Gindara before – Pre stack TIME Gindara

Image quality challenging

LapuLapu
Lapu
Lapu
East

Inboard
oa d
Outboard
project
project
area
area
SC54B* SC54A*
Gindara NOW – Pre stack DEPTH SC54B: Semi
Semi-sub
sub Portfolio SC54A: Jack
Jack-up
up Portfolio
Much improved image quality High volume outboard targets Multiple low-risk pinnacle targets
Company-maker potential Rapid monetisation capability
* Partitioning processing into SC54A and B ongoing
SC54B – Company Maker scale outboard targets; KIK 40%
now defined by state-of-the-art Pre-stack depth 3D
016 Top Reservoir Nido
016 T R i Nid Depth based on PSDM    
D th b d PSDM Previous Gindara Mapping
GINDARA  welltied CI=20m (Nido mapping) • Based on PSTM data
WEST • Uncertainty in trap definition
GINDARA • Mapped Area 11km2
• Cl
Closure height
h i ht 200m
200
• Trap tank size 760 million m3
• 470mmbbl OIP Most Likely

Provisional current Gindara Mapping

• Based on PSDM data
• High confidence in trap definition
• Mapped Area 28km2
LAPULAPU  • Closure height 300m
• Trap tank size 2.1 billion m3
EAST • Volumes to be defined 3Q
LAPULAPU • Lead first outboard drill candidate
• >12 additional targets to be matured
 Kairiki Energy
Now Positioned to deliver on strategy:
• Cash Flow from inboard funded through farm down

• Focus farminee strategic - in

in--house Engineering and Procurement arm

• Alliance with Focus – strong synergistic partnership; complimentary skills

• Potential for self funding thereafter through aggregated development

• Full
u equity
equ ty retained
eta ed in outboard
outboa d

• Shareholder exposure to enormous targets

• Strategic flexibility in SC54B – retain or farm down for carry

• Responded
p and navigated
g through
g GFC

• Corporate security with options for growth…

 The Ultimate Driver: Oil Demand over the last >100years
Per capita oil consumption in bbls/year by industralised nation
consumption – bbls perr year

30

25
USA
20

15
Japan
p S. Korea
pita oil c

10

5
Per Cap

India
China

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Source: BP Statistical Review of World Energy, CIA World Factbook, Census bureaus, Marc Faber Limited.
Contact Details

Laurie Brown Paul Fry

Managing Director Chairman

Office: Churchill Court, Suite 3

331-335
331 335 Hay Street
Subiaco, Perth
Australia WA 6008
Ph: +61 8 9388 6711
Fax: +61 8 9388 6744
Website: www.kairikienergy.com
Email: lauriebrown@kairikienergy.com
paulfry@kairikienergy.com
lf @k i iki

ASX Code: KIK KIKO

KIK,