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Just called Eddie Myers (Company Secretary) this afternoon, to see how things have been progressing since last year. I was not too impressed by his answers.

I asked about EP424/EP110 - The Baniyas Prospect, and whether the JV would receive the extension of the permit from the government. Chevron have a vested interest in the Baniyas as 50% is in their permit and on Carnarvon Ltds website it is stated that Chevron will assit in seismic acquisition costs. Eddie Myers was not aware of these developments and stated that they were waiting for the next JV meeting and would "have to look into it"

On the Kenya L6 permit he stated that Gippsland Offshore Petroleum has become increasingly difficult to work with given that they have sought to delist from the ASX and become a private company. He did indicate that progress has not been impeded on too severly.

This is the BIG ONE. Kenya L8 permit. Under the new Production Sharing Contract, PCL is not free carried through a wildcat well. They are only free carried through a 3D seismic acquisition. Greatly reducing the value Origin formerly placed on the permit with the agreement to full fund a wildcat well. I was unaware of this until now. Got lost in translation between all these PSC agreements.

Malta - he state that they have had no cooperation from the Maltese government.

Namibia - was the only positive I drew from our conversation. They were granted the opportunity to negotiate a Petroleum Agreement and Exploration License in an offshore are they selected. Eddie told me they received this opportunity without participating in the development of Reconaissance License (They did no work on it).

Therefore the Short Term value of PCL is based on their development of the Baniyas prospect of which PCL currently hold 25% interest through their stake in EP424, which could easily be reduced to somewhere in the region of 12.5% should Chevron commit to assisting in its development. 12.5% of 105 mmboe is not bad at all. Strike Oil the other JV partner has stated that drilling could begin in September on the prospect but they are waiting on governments approval in regards to the extension of the area and the variations in applications.

Then we have the 3D seismic to be conducted over the Mbawa prospect which would add some value to the permit and allow Origin and PCL to better market the prospect to potential farminees. IF PCL reduce their equity stake to contribute to a wildcate well being drilled, any equity stake of 10% or above would still be a very positive outcome.

Lot of uncertainty and a lot of sovereign risk, but great exposure to Africa at $0.03 and short term value with the drilling of Baniyas (hopefully in Quarter 4).