Ann: Galoc Phase II Drilling Update Number 6 , page-9

re: Ann: OEL: Galoc Phase II Drilling Update ... The real questions to be answered on Linipacan are:

1. How much would it cost for the development to be fully developed?
2. Does NDO realistically have the money to do this?
3. Is the risk of developing it worth it?
4. Do the other players in the licence have the money/willingness to do this?
5. Are they looking for a development farm in partner to shoulder the capex burden?

It is all very well giving undeveloped reserves a value of $10 or so in the barrel, but it ain't worth buttkiss until someone actually rolls their sleeves up and develops it.

That's not to say it can't be done and NDO will be coming into some handsome cashlfow from Galoc once the banks are paid off from the initial cashflow.

But right now it is a long bow to draw.