content_image/195038.jpg
<img src='content_image/195038.jpg'>

PricewaterhouseCoopers ABN 52 780 433 757 

Freshwater Place 2 Southbank Boulevard SOUTHBANK VIC 3006 GPO Box 1331 MELBOURNE VIC 3001 DX 77 Telephone 61 3 8603 1000 Facsimile 61 3 8603 1999 www.pwc.com/au 

## Independent Auditor’s Report to the Members of Karoon Gas Australia Ltd Report on the Financial Report 

We have audited the accompanying financial report of Karoon Gas Australia Ltd (‘the Company’), which comprises the consolidated statement of financial position as at 30 June 2011, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and consolidated statement of cash flows for the financial year ended on that date, a summary of significant accounting policies, other explanatory notes and the Directors’ Declaration for the Group. The Group comprises the Company and the subsidiaries it controlled at the year’s end or from time to time during the financial year. 

## Directors’ Responsibility for the Financial Report 

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001  and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 1, the Directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements , that the financial statements comply with International Financial Reporting Standards. 

## Auditor’s Responsibility 

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. 

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 

Liability limited by a scheme approved under Professional Standards Legislation 

