AWE LIMITED SUSTAINABILITY REPORT 2015

SUSTAINABILITY

We remain focused on delivering

long-term, sustainable growth and we are committed to operating in an open, transparent and ethical manner.

Bruce Clement

Managing Director

AWE'S

SUSTAINABILITY PRINCIPLES

Operate a healthy and safe workplace with

a goal to achieve zero harm to people

Benefit the local communities

in which we operate and engage in an open and

transparent manner

Minimise the impact of our business activities on the environment

Build a team that is engaged, motivated and rewarded by working with AWE

AWE is a dynamic Australian energy company focused on upstream oil and gas opportunities. Its diverse portfolio of exploration, development and production assets in Australia, New Zealand, Indonesia, China and the USA provides a solid production base with good cash flows and significant growth opportunities.

Established in 1997 and listed on the Australian Securities Exchange (ASX), the company has its head office in Sydney and project offices in Perth and New Plymouth. The company's substantial portfolio of 2P Reserves includes a range of projects that, when fully developed, will see the company's annual production base exceed 10 million BOE.

With strong technical foundations and disciplined financial management, AWE remains focused on delivering controlled growth that will generate long- term shareholder value.

www.awexplore.com

Deliver superior, sustainable returns for shareholders

AWE provides accurate and transparent reporting of its greenhouse gas measurements to the market through participation in the Carbon Disclosure Project (CDP), and to the Australian government through the Emissions and Energy Reporting System (EERS).

INSIDE

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AWE LIMITED SUSTAINABILITY REPORT 2015

MANAGING DIRECTOR'S MESSAGE

6

OUR ASSETS AND OPERATIONS

11

SAFETY AND HEALTH

18

ENVIRONMENT

25

BUSINESS ETHICS

27

GLOSSARY

4

ABOUT THIS REPORT

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OUR PEOPLE

13

COMMUNITY

22

FINANCIAL PERFORMANCE

26

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SUSTAINABILITY STATISTICS ASSURANCE REPORT

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MANAGING DIRECTOR'S MESSAGE

The 2014-15 financial year presented the oil and gas industry with significant challenges as global oil prices declined rapidly to levels below US$50 per barrel. While not immune to these challenges, AWE is well positioned to operate in a low oil price environment, with a sound business strategy and a commitment to long-term sustainability.

Operationally AWE performed well, meeting its production target and achieving a number of development milestones. The major highlight was the onshore exploration and appraisal success in Western Australia's Perth Basin where AWE now estimates more than 700 Bcf of gross recoverable gas (2P Reserves plus 2C Resources) from the Waitsia, Senecio, Irwin and Synaphea gas fields with further upside potential.

Success in the Perth Basin has highlighted the importance of our ongoing stakeholder engagement activities. Regular and open consultation and communication is a key part of successful engagement and helps build strong relationships with landowners, residents, businesses, Indigenous groups, councils and governments. We are also committed to delivering economic benefits to the communities where we operate through local hiring policies, procurement from local businesses and suppliers where possible, community partnerships and our Community Giving Program.

While many positive outcomes were achieved by the company in 2014-15, it was disappointing to record two Lost Time Injuries (LTIs) in the June quarter after more than two years injury free. AWE remains absolutely committed to operating a healthy and safe workplace with a goal of zero harm to our employees, contractors and visitors on every work site. With that goal in mind, we are focused on ensuring total commitment to health and safety by all employees and contractors, on all of our work sites at all times.

AWE LIMITED SUSTAINABILITY REPORT 2015