Ann: Response to Media Speculation, page-103

Hello all

I've had a read through this thread on commentary re assumed value (or not) of what seems a likely deal. Some pertinent info to consider. Refer to page 7 of https://www.karoongas.com.au/present.php?yr=2016 where it states that Bauna* "Profitable production at current oil prices, with alow breakeven price" * (I'm aware that bid at the time was for 50% of Tartaruge verde also, but as production there had not yet started then costs comment applied to Bauna only?) Brent price in October 2016 was approx $48 bbl so assume costs at or better than $45 bbl$. Re volumes I did once find a graph showing some sort of significant annual maintenance shut in around February (which I can't relocate) so average annual production of around 25K bbl day would seem quite reasonable given first four months averaged around 20K. I'm thinking that potential synergies with Neon and Goia might well have been quite material to the investment thesis as 50km of tie in pipeline could see 50000bbl day through the existing FPSO (80000bbl day capacity) at Bauna in relatively short order. This would obviously take a big chunk out of op costs for a potential Neon & Goia development for a modest capital outlay.

Regards, Timboz