where to from here, page-35

This isn't over by a long shot.

Have another read of the RDI major strategic alliance notice of July 3 '08.

Particularly, look at bullet point #2

"RDI to fund 100% of MEO’s share of two subsequent appraisal wells in the event that Zeus-
1 discovers hydrocarbons."

"discovers hydrocarbons" not commercial quantities or anything, just "discovers hydrocarbons"

So, here's a scenario for you...They find gas in the top of the Legendre sands, but not in the tcf quantities they had planned.
That would then trigger point 2 and RDI would still be obliged to fund the two subsequent appraisal wells.

Stay tuned for updates of the testing taking place today!

Obviously, the other points are subject to RDI listing, which is moot.

mrm.

____________________________________________________

Extract of the Details of the transaction from 3 July '08:
____________________________________________________
Commitment to Farm-in to WA-361-P to earn 35% interest
• RDI earning a 35% interest (MEO 25%) to fund 80% of the proposed Zeus-1 well to a cap
of US$31.25m. RDI funding 52.5% of well costs in excess of this cap. MEO to fund 10% of
the well cost to cap of US$31.25m and 37.5% of well cost above this level (assuming Cue
and Gascorp fund 10%).
• RDI to fund 100% of MEO’s share of two subsequent appraisal wells in the event that Zeus-
1 discovers hydrocarbons.
• RDI to fund 100% of MEO’s share of one additional well in the event that Zeus-1 fails to
discover hydrocarbons, subject to the listing of RDI.
• Cue and Gascorp each have an option to pay for 5% of the Zeus-1 well to maintain their
respective 20% interests. Any interest not taken up by Cue and/or Gascorp reverts to MEO
and increases its funding share by that quantum.