Fracture Stimulation of Tamarama-1 Well in Cooper Basin Begins

Sydney, 23 May 2016, Cooper Basin focused oil & gas company, Real Energy Corporation Limited commenced the five-stage fracture stimulation program of Tamarama - 1 well located in the Windorah Gas Project in ATP 927P, Cooper Basin, Queensland.

During the weekend all necessary pressure tests of high pressure well-head and fracture stimulation equipment were successfully completed. The first stage of the five stage fracture stimulation program is expected to commence today.

As previously reported, the main contractor Halliburton Australia will undertake operations to test the Toolachee and Patchawarra formations of Tamarama-1 below 2,300m. These two formations are well known throughout the Cooper Basin for holding and producing gas.

The Company has previously drilled Tamarama-1 as an exploration well with free flows of gas to surface occurring, and proving Tamarama-1 as a Basin Centred Gas Play. With demand for natural gas growing in the Eastern States of Australia, Real is well positioned to further exploit its 100%-owned acreage in the Cooper Basin, Australia’s premier onshore oil & gas province.The facture stimulation of Tamarama-1 represents the next step in Real Energy unlocking the value of itsextensive portfolio in the Cooper Basin, which has an independently estimated total mean gas in place of 13.76 TCF and a maiden 3C gas resource of 672 BCF.

The Company expects fracture stimulation program to be completed in about 2 weeks. The Company will advise of the initial results as soon as they become available.