quarterly, page-28

PPP - that would be the kiss of death for otto if they got involved. The way they have run that company is abysmal to say the least. They are making a complete hash of PPP. God help us if they get involved with otto as well.

You really need a major oil player and/or a few larger players to farm into SC55 to make it more viable. If you get a collection of smaller players farming in for 10% and 15% there, if a medium size discovery is made that requires all players to front up with dosh for project development/a second well and you have a collection of smaller players in the SC55 JV, then you will have great difficulty getting a development off the ground.

Ideally one large player coming in for the bulk of the licence, with Otto having the rest. Therefore they have the grunt to pony up with the money when necessary. That should be the aim.

Duhat - Otto should continue to sole risk this as it is only an onshore well at greatly reduced cost vs an offshore well costs and why should they share the benefits with someone else unless they got at least a generous 2:1 premium on a farm in. Duhat requires different method of attack in the drilling, until they get to the point where they finally crack it with a successful well. I would like see them keep on drilling it each year until they get there.