AGM Presentation

12 May 2010

Agenda
2009 review
Site survey results Environmental impact statement (EIS) Contracting the Ocean Guardian

2010 outlook
Drilling Toroa Contracting a deepwater rig

Funding

2009: Site surveys

Why?
Safety Risk mitigation and cost control Well design Government requirements Insurance

3 survey elements
Deployment of wave and current meters Digital site survey & benthic sampling Geotechnical boring

2009: Site survey results

Benign ocean currents confirmed by long term current meter data Multibeam & grab surveys indicate: Smooth/soft seabed at Toroa Hard/eroded seabed at Loligo Geotechnical boring confirmed very different substrate at Toroa and Loligo, which influenced well design No shallow hazards from high resolution seismic data Site survey data had a key influence on decision to contract Ocean Guardian

2009: Environmental impact statement

A comprehensive EIS submitted in October 2009 Major document appropriate for first drilling in the East Falklands Basin
Initial well design Physical environment: sea bed, oceanography, meteorology Marine life, sea birds, habitats Waste management, pollution, risks

The EIS addendum is specific to Toroa, the Ocean Guardian and associated support vessels
Refined well design Detailed anchor plans Environmental management plan Oil spill contingency planning

EIS approved by FIG in March 2010

2009: Contracting the Ocean Guardian

BHPB developed concept of using the Ocean Guardian during Q3 2009 Rig upgraded to drill in 600 metres of water
Additional BOP control systems, anchoring and riser

Mobilisation costs shared with Desire & Rockhopper Third slot in the drilling programme Long lead drilling equipment ordered Shorebase established in the Falklands
BHPB team in Stanley

Estimated well cost ~$20 million net FOGL

Why a two rig programme?

Due to its location, the Toroa prospect is best drilled by an anchored rig, such as the Ocean Guardian. Whereas, Loligo and the other deepwater prospects (>1000m water depth) are best suited to being drilled by a dynamically positioned (DP) drillship or semisubmersible

Prospects

Endeavour

Hersilia

Loligo
Nimrod

Toroa

Toroa:

The first well to be drilled in East Falkland Basin

Toroa is a prospect within the Springhill Sandstone Play, which is the proven play in the Argentine Magallanes basin to the west The Toroa prospect is supported by a seismic amplitude anomaly and a positive CSEM response Oil shows were encountered in the site survey core over the prospect If Toroa is successful this would significantly reduce the risk on similar follow-on prospects such as Lutra, Endeavour, Thulla & Inflexible Toroa has potential mean reserves of: 1.7 billion barrels (un-risked)
P90: 380milion bbls, P10: 2.9 billion bbls

Expected to spud in late May Drilled to a total depth of ~2,700m below sea level Duration of well ~ 35days
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Contracting a deepwater rig

BHPB actively looking for a deepwater rig
BHPB continues to seek a suitable drilling rig in order to commence drilling in late 2010

Deepwater rig market improving, but still tight Possible rig share will be considered

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Funding
Successful equity fund raisings in May & November 2009 Current cash position c.$93 million Sufficient funds for a 3 well programme Farm-out on hold

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Summary
Successful site survey programme EIS submitted & approved by Falkland Island Government 2 successful equity fund raisings Sufficient funds for a 3 well programme Ocean Guardian contracted Toroa well to commence shortly with results in June/July BHPB will contract a suitable rig to undertake deepwater drilling campaign

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