Origin submits this Quarterly report to the Australian Securities Exchange which covers its activities in the areas of gas and oil exploration and production.

On September 8, 2008 Origin entered into a conditional agreement for ConocoPhillips to acquire 50% of Origin subsidiary Origin Energy CSG Limited and establish a CSG to LNG joint venture to be known as Australia Pacific LNG. The effective date of the transaction was nominated as July 1, 2008. At the end of the September Quarter 2008 conditions precedent remained outstanding and the transaction had not completed.

Consequently this quarterly production report is prepared on the basis of Origin maintaining 100% of the production, sales volumes, revenues and capital commitments associated with the assets that are the subject of the transaction. The transaction subsequently completed on October 30, 2008.

Highlights

Agreement with ConocoPhillips for that company to acquire a 50% interest in Origin Energy CSG Limited, and together with Origin form the Australia Pacific LNG joint venture. Consideration for the interest includes an up-front cash payment of US $5 billion (A$6.9 billion) received on completion on 30 October 2008, an additional fixed contribution of A$1.15 billion to carry Origin's share of costs to Final Investment Decision (FID) expected by the end of 2010, and up to four additional payments of US $500 million to be made at the point that each of the four proposed LNG trains is approved. Record Quarter production of 33.9 PJe, up 13% on previous Quarter. Record Quarter sales volumes of 35.2 PJe, up 17% on previous Quarter. Record Quarter sales revenues of $198.1 million, up 38% on previous Quarter. Otway Gas Project provided a full quarter of production, consistently operating at or near peak design capacity. Significant events and influences during the Quarter included:

Quarterly Production and Sales: Total production continued to grow to a record 33.9 PJe, up 13% on the previous Quarter and up 42% on the comparable period in 2007/2008. The result reflected good production levels in the offshore Otway Gas and BassGas projects, a full quarter’s production from the onshore Taranaki Basin assets and continued growth in coal seam gas (CSG) production. Sales volumes similarly increased 17% to 35.2 PJe from those in the previous Quarter while sales revenues increased 38% to $198.1 million reflecting continued strength in liquid product prices. Sales volumes and revenues were 41% and 53% higher respectively than those in the comparable Quarter in 2007/2008.

Otway Gas Project: The Otway Gas project has continued to produce reliably during the Quarter. High seasonal demand for gas resulted in extended periods of operation at peak design throughput.

BassGas Project: The gas plant performed well during the Quarter producing above annual contracted rates.

Kupe Gas Project: Project focus is now on the onshore facilities. Some delays have been incurred, in part due to poor weather conditions. Commercial gas sales are now anticipated to commence in the September Quarter of 2009.

CSG - Spring Gully Project: The Spring Gully gas plants achieved peak gas sales of 110 TJ/d (approximately 108 TJ/d Origin share). Progress on Phase 5 which will lift capacity to 150 TJ/d has included:

the drilling of further development wells (52 of planned 60 wells have now been drilled); commissioning of a fifth compressor and second dehydration package at the Strathblane gas plant; and 60% completion of the Taloona gas plant with the first compressor due for commissioning during the December Quarter 2008.

CSG: During the Quarter, Origin participated in a total of 50 CSG wells including 12 development wells (5 Spring Gully, 7 Fairview), five cored exploration/appraisal wells, 32 exploration/appraisal pilot and production/DST wells and one monitor well.

New Zealand: The Momoho 1 exploration well, commenced in the previous Quarter in PML 38146, discovered a small gas condensate pool.

Cooper/Eromanga Basin: Origin participated in twelve wells (11 development and one appraisal). All, except the appraisal well, were cased as future producers (ten gas and one oil).

Denison Trough: A three well gas development program was successfully concluded in the Denison Trough.

On September 8, 2008, Origin announced that it had entered into an agreement with ConocoPhillips for that company to acquire a 50% share in a CSG to LNG joint venture. Under that agreement ConocoPhillips has acquired a 50% interest in Origin Energy CSG Limited which will retain all of Origin's CSG interests in the Bowen and Surat Basins.

Retention Lease VIC/RL2(V) over the Black Watch – Halladale gas discovery within VIC/P37(V) in the offshore Otway Basin was granted to Origin Energy Resources Limited by the Victorian State government on September 29, 2008.

Tags: Origin Energy