trading halt, page-24

Corporate,

I would agree if our license are off-shore. But all are on-shore drills and going by the sheer size of initial seismic, I am sure Otto/Swala have the expertise to drill it successfully. I do not see even ONE reason to farm-in part of our interest.

SC55 and Tanzanian assets are two different ball games. SC55 needs investment of 150mn+ if we are to drill Hawkeye and Cinco and it would be a huge risk for a Junior oiler like Otto to go alone (93.18% W.I) and that would risk the fundamentals of a company in case of a failure (even if probability is less it is a very huge RISK). On the other hand, even if we drill 20 exploration wells in Tanzania, our share of drilling costs could be less than 100mn$. IMO, potential of K-K and Pangani seems very good (personally I think it would be better than SC55)and probability of commercial oil discovery is more in our EARS region. For anyone interested, they can google more on drilling results of AOI and Tullow in EARS region so far (100% success rate so far). If we have nothing in our licenses, seismic would not be this spectacular. I am hopeful that we have something BIG in Tanzania (especially Kilombero basin) and Otto makes full use of it than diluting it in the name of farm-in. These are my opinions only, please DYOR.!