WHL ENERGY SEPTEMBER 2011 QUARTERLY ACTIVITIES REPORT

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1 WHL Energy Ltd ABN: Level 2, 22 Delhi St, West Perth, WA 6005 P.O. Box 1042, West Perth Western Australia 6872 T: F: ASX/MEDIA RELEASE 31 OCTOBER 2011 WHL ENERGY SEPTEMBER 2011 QUARTERLY ACTIVITIES REPORT HIGHLIGHTS Seychelles Oil and Gas Exploration WHL Energy Volumetrics Confirm World Class Potential WHL Energy s mapping and interpretation of recently acquired seismic data confirms numerous multi-hundred million barrel oil prospects and leads Total mean prospective and best estimate oil resource of 5.5 billion barrels Interpretation confirms an extensive and diverse portfolio of more than 27 leads and prospects Quality seismic provides a high level of confidence in now completed mapping Three separate fairways identified, providing a level of geological independence and diversity across the portfolio Materiality of the portfolio is being independently verified by highly regarded independent oil and gas expert Netherland Sewell and Associates World class scale of the portfolio continues to attract interest from many international oil majors Concerted industry wide farm-out campaign continues. Ongoing evaluation of Australian and African new venture opportunities Subsequent to the end of the quarter, WHL Energy announced it had been offered an interest in offshore Western Australia exploration block W10-25 as a 33.33% interest holder in a consortium which successfully bid for that block. WHL Energy Limited (ASX: WHN) ( WHL Energy or the Company ) is pleased to report on its activities and operations for the quarter ended 30 September 2011.

2 SEYCHELLES, AFRICA AND AUSTRALIA Seychelles Exploration WHL Energy holds 100% equity in 21,426 square kilometres of highly prospective oil and gas exploration interests in the shallow water area off the southern Seychelles coast. The SY10 Multi- Client 2D Seismic Survey ( MC2D ) in the greater Seychelles area was completed in April and WHL Energy has licensed acquisition of a total of 7,966 km of the SY10 MC2D on its blocks. A preliminary processed dataset, which consists of a post stack time migration, was delivered to WHL Energy in June The seismic data was processed to produce a pre-stack time migration ( PSTM ) product, which is a much more sophisticated processing algorithm. A PSTM dataset was delivered to WHL Energy in August WHL Energy undertook an initial interpretation based on the preliminary processed data, which was then confirmed and updated on the PSTM dataset. The interpretation of the new data confirmed a substantial Prospects and Leads Inventory in WHL Energy s acreage. The generation of the prospects and Leads Inventory was supported by regional geological synthesis studies which are largely concluded. Figure 1: Prospects and Leads Map

3 The generation of a substantial exploration portfolio from WHL Energy s Seychelles acreage, based on a comprehensive grid of modern seismic data, is a major achievement for the Company and provides a foundation for the forward exploration program in the area and the current farm-out campaign. WHL Energy has made a substantial intellectual investment in the Seychelles and has played a major role in rejuvenating petroleum exploration in the Seychelles. Petroleum consultant, Netherland Sewell and Associates ( NSAI ) of Dallas Texas, was commissioned during the quarter to provide an independent audit of WHL Energy s Prospects and Leads Inventory. The NSAI report is expected to be received during the first week of November and will be the subject of a formal release to the ASX thereafter. Figure 2: Prospects and Leads Volumes Economic evaluation studies have also progressed and are continuing. A concerted industry wide farm-out campaign commenced during the September quarter. A large group of high quality petroleum exploration and production companies have been contacted to solicit interest. An online data-room and a physical data-room were opened in the Perth office, with several companies visiting the Perth physical data room. Several additional companies are booked to visit the physical data-room in Perth during November. As per previous guidance, the Company expects to receive commercial offers over the latter part of the December quarter. Africa and Australia Evaluation of new venture opportunities in the Australian and greater East African region were also undertaken during the September quarter and are continuing, in order to develop diversity in WHL Energy s exploration portfolio to support the Company s continued growth. Subsequent to the end of the September quarter, WHL Energy announced it held a 33.33% interest in a consortium which had been offered block W10-25 from the 2010 Australian Offshore Petroleum Exploration Acreage Release by the Commonwealth - Western Australian Joint Authority.

4 W10-25 is interpreted to cover in the order of 20% (2.5 tcf) of the 13.3 tcf Palta prospect that straddles exploration license WA-384-P in which Shell holds a 100% interest. Release area W10-25 is located 70 km west of Cape Range and lies adjacent to the Shell exploration permit WA-384-P in which the Palta-1 well is planned to be drilled in late 2011/early 2012, providing WHL Energy nearterm leverage to a high-impact oil and gas exploration well which will be drilled by Shell. The Company continues to review and participate in ongoing Australian gazettal bid rounds. Figure 3: Location of W10-25 in the Carnarvon Basin WA Activities for the December quarter 2011 will be focused on the Seychelles farm-out, with the objective of attracting a high quality partner. New Ventures activities will also be ongoing in order to find the next asset for the Company. CORPORATE Appointment of New Chairman On 17 August 2011 the Company appointed Mr John Chandler as a Non-executive Director of the Company. On 30 September 2011, the Company announced the appointment Mr Chandler to the position of Chairman of the Company. At the same time the Company announced that Mr Peter Bartter was stepping down as Chairman in support of the Company s realignment to an upstream oil and gas explorer. At the time Mr Chandler said: WHL Energy is making a significant impact as an up-and-coming junior explorer with its successful acquisition of our large, highly prospective exploration interests off the coast of the Seychelles and

5 the success of our recently completed 2D seismic programme over a large part of those Seychelles interests. Buyback of AKK Option During the September quarter WHL Energy completed the buyback of the Austin Exploration Limited ( Austin ) 4% farm-in option. The Company actively pursued the buyback for a number of strategic reasons, including the strengthening of the Company s farm-out position. Office Relocation During August 2011, the Company s announced it had relocated its corporate and registered office to West Perth to accommodate additional technical staff focused on the farm-out campaign involving the Seychelles acreage. The Company also changed its postal address, which is indicated on the letterhead on page 1 of this report. Completion of Fund Raising - Balance of T2 Receipts At the commencement of the September quarter the final receipts from the capital raising from sophisticated investors and institutions reported last quarter were received. On 15 July 2011 a total of 14,487,500 shares were issued at 3.2 cents per share. At 30 September 2011 the company held cash of $5.524M. UK WIND FARM PROJECTS As announced previously, progress has been delayed on the fresh application for the planning consent for the Wings Law Wind Farm ( WLWF ) as part of the Ladymoor Renewable Energy Scheme in North Ayrshire, Scotland. During the September quarter, the Company centralised the legal services and appointed a technical consultant to advise on the radar mitigation strategy. The Company is in the process of reviewing the preliminary advice received regarding the radar mitigation strategy and is seeking further technical input to find a possible solution for the radar mitigation. The Company is also in the process of reviewing the smaller wind assets. US OIL AND GAS Kansas Oil and Gas Projects During the September quarter, the oil production properties centred around McCune County Kansas maintained recent levels of production, supplemented by a small increase from the Bennet Well that commenced production during the quarter. The Company s gas operations are now focused on the Uniontown gas project. Since surrendering the operatorship to the other Joint Venture partner in the project the Company has been advised that the Operator has commenced discussions to sell the entire project. The Company also continues to discuss disposal options for these assets and is aiming to conclude a sale during the December quarter. Wardlaw Oil Project, Texas The Company continues to explore avenues to extract value from its Wardlaw Oil Project. End.

6 FURTHER INFORMATION Shareholders/Investors: Media contact: Steve Noske Colin Hay WHL Energy Ltd Professional Public Relations T: T: E: snoske@whlenergy.com E: colin.hay@ppr.com.au About WHL Energy Limited ASX-listed WHL Energy Ltd (ASX: WHN) is an oil and gas exploration company. The Company s flagship project is its very large offshore Seychelles oil and gas exploration interests. This 21,426.3km 2 exploration holding is considered prospective for potentially very large hydrocarbon targets, and WHL Energy is currently undertaking further work to gain a higher understanding of that potential as it progresses the Seychelles oil and gas assets towards farm-out and drilling.