ly Production Report For period ended 31 March 2018 Information presented throughout this report relates only to hydrocarbon exploration and production activities undertaken by Origin Energy Limited ( Origin ), its subsidiaries and the incorporated joint ventures in which it has interests. This report does not cover other business activities of Origin such as electricity generation, or energy retailing. The information in the table below does not include Origin s share of production from Lattice Energy assets. The sale of Lattice Energy to Beach Energy was completed on 31 January 2018, with an economic effective date of 1 July 2017. For details of Lattice Energy production and results to 31 January 2018, refer to section 1.2. Comparative performance at a glance Origin s interest in APLNG Previous Comparison March 2018 December 2017 Change % Production (PJe) 62.7 63.4 (1%) Sales (PJe) 61.2 67.1 (9%) Revenue (A$m) 1 491.9 509.8 (4%) Prior Year Corresponding Comparison March 2018 March 2017 Change % Production (PJe) 62.7 56.8 10% Sales (PJe) 61.2 56.0 9% Revenue (A$m) 1 491.9 385.3 27% Year to Date Comparison Jul 2017 - Mar 2018 Jul 2016 Mar 2017 Change % Production (PJe) 189.6 166.9 14% Sales (PJe) 192.2 165.2 16% Revenue (A$m) 1 1,476.2 999.0 48% Highlights In the nine months to March 2018, Origin s share of APLNG production increased by 14% to 189.6 PJ due to full nine months contribution of APLNG Train Two. Over the same period total APLNG related revenue increased by 48% to $1,476 million (Origin share) due to increased sales volumes of LNG and higher realised prices for both domestic gas and LNG. During the March 2018 quarter, a total of 30 produced LNG cargoes were loaded and shipped from the APLNG facility on Curtis Island. Planned maintenance on Train Two was successfully completed in March in line with expectations. During the shutdown, excess upstream gas volumes were directed into the domestic market, with Origin also able to complete additional upstream maintenance activities. On 21 April 2018, the deep conventional Burunga South 2 Exploration well was spudded by APLNG. On 23 April 2018, APLNG returned funds to shareholders through a buy-back of a portion of its USD preference shares. Funds paid to Origin in relation to the buy-back were US$105 million (A$136 million). On 31 January 2018 Origin announced the completion of the $1,585 million sale of Lattice Energy to Beach Energy with an economic effective date of 1 July 2017. On 17 April 2018 the Northern Territory government announced its decision to lift the moratorium on fracking and adopt the recommendations of the independent enquiry. Origin welcomes the decision and plans to seek the necessary approvals to drill and fracture stimulate a further five wells to complete existing exploration and appraisal commitments established prior to the moratorium. 1 Revenue disclosed includes APLNG related amounts that have been capitalised prior to November 2016 as well as gains/(losses) on forward sales and hedging. March 2018 ly Production Report Page 1 of 10
Production and Sales March 2018 compared with December 2017 Origin s share of APLNG production decreased by 1% to 62.7PJ, reflecting fewer days in the quarter. Lower LNG volumes resulting from the planned maintenance in March were offset by higher domestic volumes. Origin s share of APLNG related revenue decreased by 4% due to timing of shipments partially offset by higher commodity prices. March 2018 compared with March 2017 Origin s share of APLNG production of 62.7 PJ in the March 2018 quarter was 5.9 PJ or 10% higher than the March 2017 quarter reflecting the ramp up in LNG Train 2 production. Origin s share of APLNG related revenue increased by $106.6 million from the March 2017 quarter reflecting higher average realised prices and increased volumes sold as LNG. Financial year to date 2018 compared with financial year to date 2017 Origin s share of APLNG production of 189.6 PJ in the nine months to March 2018 was 22.7 PJ or 14% higher than the prior period, due to two LNG trains being online for the full nine months. Origin s share of APLNG related revenue increased by $477.2 million or 48% from the prior period reflecting increased production, with increased volumes sold as LNG and higher average realised prices. March 2018 ly Production Report Page 2 of 10
1. PRODUCTION, SALES AND REVENUE 1.1 APLNG Production Liquefied Natural Gas (LNG) Unit This Previous % Change Mar 2017 2017/18 2016/17 Total Production Kt 781.1 885.7 (12%) 673.0 2,492.8 1,790.8 Total Sales Volume Kt 772.8 922.3 (16%) 685.4 2,483.2 1,842.7 Total Commodity Revenue 3 $M 417.2 449.3 (7%) 320.1 1,251.7 804.3 Average LNG Price 3 US$/mmbtu 8.10 7.14 13% 6.72 7.50 6.25 Natural Gas Unit This Previous % Change Mar 2017 2017/18 2016/17 Total Production 2 PJ 15.8 10.4 52% 16.2 42.9 57.9 Total Sales Volume PJ 18.4 16.0 15% 18.1 54.6 63.2 Total Commodity Revenue 3,4 $M 82.7 60.5 37% 65.2 232.5 180.2 Average Gas Price Total 3,4 $/GJ 4.50 3.78 19% 3.61 4.26 2.85 Total All Products Unit This Previous % Change Mar 2017 2017/18 2016/17 Production APLNG 100% 5 PJe 167.3 169.0 (1%) 151.4 505.6 445.0 Origin s 37.5% interest Production PJe 62.7 63.4 (1%) 56.8 189.6 166.9 External Purchases PJe 4.7 4.0 18% 1.4 14.7 3.9 Sales PJe 61.2 67.1 (9%) 56.0 192.2 165.2 Revenue 6 $M 499.9 509.8 (2%) 385.3 1,484.2 984.4 Gain/(loss) on oil hedging (Origin only) 7 (8) - (100%) - (8) 14.6 Total Revenue 491.9 509.8 (4%) 385.3 1,476.2 999.0 Average Commodity Price $/GJe 8.04 7.59 6% 6.88 7.68 6.05 2 Refers to production to meet domestic supply requirements and excludes production directed towards the LNG facility on Curtis Island. 3 Prior periods include capitalised revenue related to APLNG ramp gas and LNG sales volumes up to November 2016. 4 Includes gas sold by APLNG to Origin under long term contract. 5 Refers to domestic production as well as production directed towards the LNG facility on Curtis Island (including liquefaction gas). 6 Prior periods include capitalised revenue related to APLNG ramp gas and LNG sales volumes up to November 2016. 7 Refers to hedge payouts associated with Origin s hedging of its APLNG related JCC oil price exposure. March 2018 ly Production Report Page 3 of 10
1.2 Lattice Energy Production Total All Products Unit This Previous % Change Mar 2017 2017/18 2016/17 Production Volume PJe 7.2 20.1 (64%) 23.0 52.9 67.1 Sales Volume PJe 8.0 21.8 (63%) 24.4 57.4 75.9 Sales Revenue $M 68.4 172.6 (60%) 171.7 440.2 515.2 Gain / (loss) forward sale 8 $M 2.3 3.9 (41%) 5.9 11.0 22.7 Total Revenue $M 70.7 176.5 (61%) 177.5 451.2 537.9 Average Commodity Price $/GJe 8.84 8.09 9% 7.28 7.86 7.09 8 Refers to Origin s oil and condensate forward sale agreements. In FY2013 Origin entered into agreements to sell the majority of its future oil and condensate production over a 72 month period commencing 1 July 2015. The fixed price of US$62.40/bbl represents the forward oil price at the time of US$89/bbl, discounted to reflect the receipt of the proceeds upfront. Upon entry into the agreements, Origin received A$482 million. Origin closed out these agreements following the completion of the sale of Lattice Energy to Beach Energy on 31 January 2018. March 2018 ly Production Report Page 4 of 10
2. DEVELOPMENT AND EXPLORATION OPERATIONS 2.1 Origin s interests held through Australia Pacific LNG (APLNG) 2.1.1 Operations Update APLNG production (100%) was 167.3 PJ during the quarter in line with the December 2017 quarter (169.0 PJ). APLNG sales volume (100%) was down 15.7 PJ to 163.2 PJ during the quarter primarily reflecting lower LNG volumes due to planned shutdown and timing of LNG cargoes, partly offset by increased domestic sales. During the quarter, production from operated fields increased to an average of 1,424 TJ/d from 1,406 TJ/d in the December 2017 quarter (APLNG share), primarily reflecting improving production from existing wells and facilities. Average production from non-operated assets increased to 435 TJ/d in the March 2018 quarter from 431 TJ/d in the December 2017 quarter (APLNG share). Production from QGC operated fields increased to 325 TJ/d from 319 TJ/d as the Ruby Jo facility returned to full production after shutdown in October. Planned maintenance was successfully completed in March with Train Two shut down for sixteen days. During the shutdown, excess upstream gas volumes were directed into the domestic market, with Origin also able to complete additional upstream maintenance activities. APLNG expects to complete one downstream maintenance shutdown in Q4 FY2018 involving Train One for approximately sixteen days. During the March 2018 quarter, a total of 30 produced LNG cargoes were loaded and shipped from the APLNG facility on Curtis Island. APLNG participated in the drilling of 67 operated development wells and 24 non operated development wells during the March 2018 quarter. Subsequent to the end of the quarter, the Burunga South 2 Exploration well was spudded on 21 April 2018. This is a deep conventional well targeting non-csg prospects below the Peat field. March 2018 ly Production Report Page 5 of 10
APLNG Operated Production Wells Avg daily production (APLNG share) Development Wells Wells drilled Wells commissioned Spring Gully 286.3 TJ/d This 1 5 2017/18 17 18 Bowen Peat 8.3 TJ/d This - - 2017/18 - - Denison 0.8 TJ/d This - - 2017/18 - - Talinga 196.8 TJ/d This 11 2 2017/18 21 6 Surat Orana Condabri 183.6 TJ/d 370.0 TJ/d This 18-2017/18 22 - This 2 4 2017/18 25 39 Combabula / Reedy Creek 378.4 TJ/d This 35 9 2017/18 119 87 TOTAL 1,424.2 TJ/d This 67 20 2017/18 204 150 APLNG Non-Operated Production Wells GLNG QGC Fairview / Arcadia Avg daily production (APLNG share) 109.8 TJ/d Anya - Kenya East Kenya Bellevue TOTAL 153.1 TJ/d 164.9 TJ/d 7.1 TJ/d 434.9 TJ/d Development Wells Wells drilled Wells commissioned This 3 8 2017/18 13 42 This 4-2017/18 18 - This 17-2017/18 29 - This - - 2017/18 19 3 This - - 2017/18 - - This 24 8 2017/18 79 45 March 2018 ly Production Report Page 6 of 10
3. DRILLING ACTIVITY 3.1 Exploration/Appraisal No exploration or appraisal drilling in which Origin had an interest occurred during the. March 2018 ly Production Report Page 7 of 10
3.2 Development The table below summarises development drilling in which Origin had an interest during the March 2018 quarter. Origin participated in 91 CSG development wells across the Bowen and Surat Basins, 2 conventional gas development wells and 1 oil development wells in the Cooper Basin. Origin s Cooper Basin interests were sold on 31 January 2018 as part of the sale of Lattice Energy to Beach Energy. Basin / Area Origin Effective Well Status Basin / Area Origin Effective Well Status Development Wells Interest % Development Wells Interest % Cooper Basin SA Combabula 470 26.78%* Development Target Gas Combabula 471 26.78%* Development Gooranie 8 13.19% Drill ahead Combabula 472 26.78%* Development Gooranie 11 13.19% C&S Combabula 473 26.78%* Development Target Oil Condabri 405 37.50%* Development Cocinero 8 25.00% Pressure testing Condabri North 356 37.50%* Development surface casing Bowen Jen 135 11.72% Development Target CSG Jen 136 11.72% Development Durham Ranch 876 35.44%* Development Jen 138 11.72% Development Fairview 10-42-21 8.97% Development Jen 139 11.72% Development Fairview 11-69-21 8.97% Development Jen 140 11.72% Development Fairview 11-70-21 8.97% Development Jen 143 11.72% Development Surat Jen 145 11.72% Development Target CSG Jen 175 11.72% Development Anya 114 11.72% Development Muggleton 33 26.78%* Development Anya 115 11.72% Development Muggleton 225 26.78%* Development Anya 120 11.72% Development Orana North 154 37.50%* Development Anya 121 11.72% Development Orana North 156 37.50%* Development Broadwater 111 11.72% Development Orana North 157 37.50%* Development Broadwater 119 11.72% Development Orana North 158 37.50%* Development Broadwater 136 11.72% Development Orana North 165 37.50%* Development Broadwater 137 11.72% Development Orana North 166 37.50%* Development Broadwater 138 11.72% Development Orana North 168 37.50%* Development Broadwater 146 11.72% Development Orana North 169 37.50%* Development Broadwater 147 11.72% Development Orana North 170 37.50%* Development Broadwater 220 11.72% Development Orana North 177 37.50%* Development Broadwater 226 11.72% Development Orana North 284 37.50%* Development Combabula 269 26.78%* Development Orana North 285 37.50%* Development Combabula 289 26.78%* Development Orana North 286 37.50%* Development Combabula 308 26.78%* Development Orana North 287 37.50%* Development Combabula 309 26.78%* Development Orana North 409 37.50%* Development Combabula 310 26.78%* Development Orana North 410 37.50%* Development Combabula 311 26.78%* Development Orana North 412 37.50%* Development Combabula 335 26.78%* Development Orana North 416 37.50%* Development Combabula 336 26.78%* Development Pine Hills 299 26.78%* Development Combabula 354 26.78%* Development Reedy Creek 24 26.78%* Development Combabula 355 26.78%* Development Reedy Creek 45 26.78%* Development Combabula 356 26.78%* Development Reedy Creek 91 26.78%* Development Combabula 357 26.78%* Development Reedy Creek 119 26.78%* Development Combabula 358 26.78%* Development Talinga 243 37.50%* Development Combabula 381 26.78%* Development Talinga 244 37.50%* Development Combabula 382 26.78%* Development Talinga 260 37.50%* Development Combabula 383 26.78%* Development Talinga 261 37.50%* Development Combabula 403 26.78%* Development Talinga 262 37.50%* Development Combabula 404 26.78%* Development Talinga 278 37.50%* Development Combabula 426 26.78%* Development Talinga 279 37.50%* Development Combabula 453 26.78%* Development Talinga 280 37.50%* Development Combabula 466 26.78%* Development Talinga 286 37.50%* Development Combabula 467 26.78%* Development Talinga 287 37.50%* Development Combabula 468 26.78%* Development Talinga 313 37.50%* Development Combabula 469 26.78%* Development Note: *denotes Origin operatorship March 2018 ly Production Report Page 8 of 10
4. EXPLORATION, EVALUATION AND CAPITAL EXPENDITURE The tables below include total expenditure incurred on exploration and evaluation activities and capital expenditure on development and production activities. They include expenditure committed under farm-in agreements and capitalised interest and exclude expenditure on acquisitions. Expenditure in the current financial year is preliminary and is subject to audit review. Lattice Energy This Previous March Qtr 2017 2017/18 2016/17 A$m Exploration/Evaluation 1 1 12 6 30 Development/PP&E 8 29 27 68 98 Total 9 30 39 74 128 Other Origin Energy upstream assets This Previous March Qtr 2017 2017/18 2016/17 A$m Exploration/Evaluation 5 3 2 10 16 APLNG (100%) The table below includes total expenditure incurred by APLNG on exploration and evaluation activities and capital expenditure on development and production activities. This does not reflect capital expenditure by Origin. This Previous March Qtr 2017 2017/18 2016/17 A$m Exploration/Evaluation 20 15 17 47 42 Development/PP&E 272 264 359 850 1,091 Total Capex 292 279 376 897 1,133 March 2018 ly Production Report Page 9 of 10
5. CONVERSION FACTORS AND ABBREVIATIONS 5.1 Conversion Factors LNG 0.0554 PJ/ktonnes LNG 1.0532 PJ/mmbtu 5.2 Abbreviations APLNG Australia Pacific LNG an incorporated Joint Venture between Origin, ConocoPhillips and Sinopec barrels an international measure of oil production. 1 barrel = 159 litres C&C cased and completed C&S cased and suspended CSG coal seam gas GJ gigajoule = 10 9 joules joule a measure of energy kt Kilo tonnes = 1,000 tonnes LNG liquefied natural gas MRCPS Mandatorily Redeemable Cumulative Preference Shares mmbbl million barrels mmbtu million British thermal units mtpa million tonnes per annum P&A plugged and abandoned P&S plugged and suspended pa per annum PJ petajoule = 10 15 joules PJe petajoule equivalent, a measure used to express the volume of different petroleum products on the basis of the energy contained in the product QGC Queensland Gas Company Spudding to commence drilling a well t tonnes TJ terajoule = 10 12 joules TJ/d terajoules per day year to date March 2018 ly Production Report Page 10 of 10