nuenco management statement, page-28

Tadtech2001,

Firstly I am not a geologist so will do my best to explain.

Following the drilling and logging of J1 the estimated pay in the Miogyp and Camerina were 41ft and 30ft net pay respectively. This net pay was significantly higher than previously expected and resulted in the announcement on 28 August advising the Miogyp had potential to deliver upto 16 mmboe.

Following the flowing of water in the bottom 5ft of the Miogyp (25 Sept) the geologists have been working to determine the P50 estimate based on various scenarios of the likely oil-water contact. Assuming there is only 10ft of pay the Miogyp reserve is likely to be 2.4 mmbo, if the Miogyp has 26ft of pay the reserve is estimated at 5.7 mmbo.

Re-entering Acosta #1 is significant as it is between 15 – 20ft downdip of J1 and likely to assist in determining where the oil-water contact is across the Miogyp.

On the upside the Camerina is now estimated at a potential 5.4 mmboe, the testing of which is a significant exercise in the Acosta #1 well.

Clearly the most significant potential interval is the Cib Haz (p50 22.3 mmboe) which will be tested by J2.

The above estimates are all as referenced from the GGP presentation (http://www.ggpl.com.au/documents/2008-11-21AGMPresentationNov08_000.pdf)

I hope that clears it up, give me a call if you need to.

Regards

Mark Freeman