Likelihood of a TO, page-8

Hi Cujo

You're correct, as stated by FAR they wells objectives are to test connectivity over the two different sands (thick and thin, upper and lower). We absolutely need connectivity, otherwise the entire project could be at risk (although, some wells have enough oil to be stand alone wells). I am confident that we will get connectivity, given everywhere we have drilled so far we have hit oil and also the fact that they took 600meters of core and indicated the traps / seals were in excellent condition.

Obviously if we get good connectivity we will also get an increase in recoverable oil.

As for the 'cheer squad' - we are all still here, however, like most, sick and tired of re-hashing the same stuff day in and day out. Unfortunately nothing is going to change until the results of PE are known.

If we win PE, I believe our SP will go through the roof - it could transform the company in that we could own a greater % of the field and either on-sell the rest (meaning a few hundred million dollars in the kitty) or get a loan to fund the entire program and become operator - those are the two options - IF we win).

If we lose, we're back to where we were PE - the difference been we would now have to work with Woodside (probably not the best start to a JV relationship). Also, while we're funded for the next two wells - we will need a Capital Raise soon after - and lets face it, they mentioned the possibility of drilling all through 2017 - so at the moment, a CR will be needed (probably after SNE5 results are known) - CR on the spike of an SP.

I just hope we WIN PE - and get some money in the bank to avoid the CR (not to mention a greater % of the field).

If we WIN PE = transform company

Lose - and I am out. I have had enough.

Ele.