Ann: Matuku-1 Weekly Progress Report No. 5 , page-15

That's right J8, if they are impressed by what they have seen so far then for me this suggests two big upsides as possibilities. Either they are seeing fractured carbonate and/or have detected some indication of hydrocarbon. In either case this opens up two big new plays in the region. If we have fracture then an extensive area of the Taranaki Basin is seen in new potential and if it's hydrocarbon then the Kahurangi kitchen is proved and all the leads and prospects already flagged in 51906 are given the green light.

The big challenge for the JV then comes in attempting to maintain their stranglehold on both these plays since at present 51906 basically encompasses the heart of each play. The JV doesn't seem to have advised the community that back in November they were granted a 7 year extension of 51906, which does now seem to be highly material to their forward prospects. Significantly, consequent of this extension the JV now have little time remaining [Nov 2014] before they must relinquish their first 25% of 51906.

I guess that this is the main drive behind getting the Kaka 3D survey underway since fine tuning of the relinquishment area in the north will be eventually be taken care of by results out of Matuku but the remainder of the licence area will need substantial delineation of leads and prospects.