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PTTEP Subsidiary to Acquire Coogee Resources Limited

Friday, December 26, 2008

PTT Exploration and Production Public Company Limited (“PTTEP”), through its wholly owned Australian subsidiary, has today signed a conditional Share Sales Agreement to acquire a 100% equity interest in Coogee Resources Limited (“CRL”). CRL is a private company based in Western Australia and engages in investment in, and development of, oil and gas exploration and production assets in Australia.

PTT Exploration and Production Public Company Limited (“PTTEP”), through its wholly owned Australian subsidiary, has today signed a conditional Share Sales Agreement to acquire a 100% equity interest in Coogee Resources Limited (“CRL”). CRL is a private company based in Western Australia and engages in investment in, and development of, oil and gas exploration and production assets in Australia.

The purchase price for the 100% equity interest is approximately USD 170 million in cash. As of September 30, 2008, the effective date of the transaction, CRL had net debt of approximately USD 243 million. Based on the purchase price and net debt, the estimated EV/BOE multiples of 1P reserves is approximately USD 12.90.

CRL currently operates the Jabiru and Challis offshore oil fields (70.94% CRL interest), which together with its key development asset, the 100% owned Montara Project, collectively provides PTTEP with estimated net 1P oil reserves of 32 mmbbl and net 2P oil reserves of 45 mmbbl (CRL Report June 2008). Additionally, CRL also provides PTTEP with significant contingent resources from the working interests in production and exploration licenses including AC/L7, AC/RL7, AC/P34, AC/P32, and AC/P40.

Mr. Anon Sirisaengtaksin, Chief Executive Officer of PTTEP, said, “We are delighted to have reached an agreement to acquire CRL through a process which has drawn interest from various oil and gas companies. This acquisition is an example of PTTEP’s ability to acquire strategic assets at attractive valuations in the current market environment. CRL has an attractive portfolio of producing and near term development assets of high quality crude oil, with a significant amount of proven and probable reserves. Furthermore, CRL provides substantial potential upside from the development of contingent gas resources and high quality appraisal and exploration targets.”

This acquisition is aligned with PTTEP’s key strategic objectives of growing its international operations and provides a unique platform for expansion in the low sovereign risk Australian oil and gas market. Currently PTTEP has existing exploration assets in the proximity of CRL’s assets, which together can generate potential synergies and contribute to helping PTTEP achieve its desired growth targets. The expected benefits of this investment includes an attractive opportunity to acquire high quality development appraisal and exploration assets in the hydrocarbon rich Bonaparte Basin, and potential monetization of significant stranded gas resources through Floating LNG technology, within the proximity of the high-growth Thai gas market.

Mr. Anon added, “CRL will provide us a solid platform for further expansion in Australia. PTTEP intends to maintain CRL’s existing management team and employees. These highly valuable employees have contributed to building a strong foundation to ensure the ongoing success of CRL. We are confident that they will continue to help strengthen PTTEP’s operations in Australia.”

PTTEP will use existing cash balances and cash flow from operations to finance the acquisition of CRL. This acquisition is expected to be completed within the first quarter of 2009 and subject to typical conditions precedent, including Australian regulatory approvals.

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This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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