grace spudded, page-20

Key Agreement Terms
The key terms of the proposed transaction are set out below:
• ConocoPhillips will transfer a 50% equity interest in the permit to Karoon for nil cash
consideration;
• ConocoPhillips will remain as operator of the permit;
• The parties will agree detailed documentation to effect the transaction;
• Karoon will have the right to determine final location, depth and target for the commitment well
to be drilled in the permit;
• The well to be drilled in the joint venture’s upcoming Phase -2 drilling program;
• ConocoPhillips Browse Basin will have the option to buy back a 10% interest after the permit well
is drilled;
• ConocoPhillips’s ongoing obligations under the Farmin Agreement dated 9th October 2006 to pay
80% of the next US$125 million of expenditure will apply only to expenditure incurred on the
WA-315-P permit;
• If the transaction successfully completes, the interests of Karoon and ConocoPhillips in the
permit will be:
Karoon Gas (Browse Basin) Pty Ltd 90%
ConocoPhillips (Browse Basin) Pty Ltd (Operator) 10%

I am sure James said to me something about if Conoco buy back in it will cost them big time. Are there any updated terms.??


Cheers,
Stevo