corporate activity, page-19

Hi Thirio

As per the Half yearly, the forecast project costs are $300m (gross) plus $18m in Contingency with LT coming online by mid-'09.

NXS has a $160m proj finance facility & a $60m credit facility inplace. This 160m is split into $145m & $15m, for a term of 8-1/2 yrs from date of completion. Till date they have used $55m out of the $145m (refer pg 16-17 of half yearly report).

Santos will b buying 450 PJ (i.e, 77.7 mmboe) of gas from LT & process the gas at its plant at Orbost. STO are currently in the process of upgrading the gas processing plant.

AS for NXS, a barge has been contracted to commence offshore installation of the 19km of pipeline, the control umblical & necessary subsea surface hardware/control equipment during April '09. This was delayed by 3 months (i.e, Jan 09).

The company will release a revised 1P & 2P reserves estimates in Q2 for LT.

Currently LT reserve estimates are,

2P - 350 bcf gas & 4 MMbbls condensate (62.3 mmboe)
2C - 435 bcf gas & 5.2 MMbbls condensate (77.7 mmboe)

Bottom line is, with LT reserves alone the SP is worth 38c as per my previous post.

Crux is the icing. So I dont buy those runours about a 20c SP. The numbers speak for themselves, IMO.

cheers