from quarterly, page-19

KEY has guaranteed access as part of the deal.
The main issues would be the volume that the group can put thru and the return on that.
Orca have been upping the ante trying to develop more production and I reckon that this could be the sticky point.

These young upstarts have come in and found commercial Qty's of gas, Orca (this is an assumption, not fact) would be pressuring Govt to keep the majority of capacity and also pushing our consortium to cop the low price as Orca has carried the can for a while.

Our group could be arguing that this would make the exercise futile and that they are not going to cop this... To the extent that we will do our own thing if we have too...

It looks like AEX/KEY etc are pushing the envelope more than anything and I reckon they have a good case.

Ted and the crew will drill and develop (assuming something found) West Songo Songo to the advantage of Tz (as well as expanding Nyuni with more work) and I reckon will go harder than Orca who really have not developed as hard as they maybe could have...

So my call (fwiw) is that we are testing boundaries more than anything.

Not a major issue but everyone needs to know limits as the game of gas exploration in this area has changed in the last 12 months (ie Orca now has competition).

Ridiculous price for where we are, going to be fun when we see what the plan is from here.

Of more interest from a speculative point of view, did anyone read much into these...?
ONSHORE ITALY
Borsano Permit ( Key 100% )
Key personnel visited ENI in Milan and undertook reviews of various additional seismic lines relating to the Borsano area. The drilling programme for Borsano has now been agreed by Key’s Perth based and Italian drilling teams and the documentation is being translated into Italian for submission to the Ministry.

OFFSHORE ITALY
Application Areas ( Key 100% )
The Company is still awaiting response from the Ministry of Environment as to the progress of its applications and the review of the Environmental Impact Assessment studies (EIA) previously submitted for each area. Indications are that Key will be formally informed in the near future on this matter.