Ann: Quarterly Report period ending 30 September , page-8

re: Ann: Quarterly Report period ending 30 Se... My Notes:

A few things of interest, but generally nothing new to report.
Considering the disconnection period, I think we are fairing quiet
well, with a delay on the investment descision, but management still
sure on production on Tinaldo by "early" 2010.

Cash on Hand:
Sept 08 27 mill AUD
Dec 08 12.2 mil
Mar 09 6.6 mill
Jun 09 9.1 mill
Sept 09 12.2 mill

Interesting to follow this trend, and shows a good cash flow
management trend. Galoc production started OCT 08, big expense, then
a lot spent on Seismic data aquasition.

With the sale of 10% of SC54A, and 8.4 Mill AUD coming, this will give
the war chest 20.6 mill for Tinaldo.

We recieved 8 mill AUD from oil revenue during the Quarter, this was
from Cargo 6 & 7 uplift. Oil price up from $59.6 - $68 USD.

We can expect only cargo 8 & 9 revenue to be included in the 4th
quarter, both full, est about 10.4 mill AUD. Cargo 9 currently limited
from offloading until first wk commencing Nov 9. So proceeds for cargo
10 probably wont be recieved until Jan 2010.

Major expenses next quarter is the Sea Bed coring in SC58 and Siesmic
in SC63, Tinaldo in SC54A.

GALOC SC14C1 :
We past 1yr production on the 9th of OCT, Disconnected 128 days for
the full yr, with production 237 days.
From what I can work out, the industry seems to use forward
projections of 251 days. Hopefully the teething problems are behind
us, and we can improve on this in the year to come.
Two Horizontal wells, these provide better total extraction, so we may
see the top end of the 35%- 55% extration on the original STO11P.
On the books as extractable is 2P 4.2 and 3P 9.7 mill barrels, Nido's share.
These reserves estimates are currently under review, early 2010 for
the results. 5-10 yr life expectancy.

NIDO / MARTINLOC SC 14 A
Still powering away producing about 479 K USD for the quarter, to Nido.
Averaging a 11.4% decline on production / quarter, am expecting at
best 1 yr more life left in these fields.
Unless they are looking at artificial lift or horizontal wells, but no
indication so far of reassesing the fields.

Tinaldo SC54A
Vertical well
Awaiting Finacial descision
see previous updates.

WEST LINAPACAN
Delays in the delivery of Seismic data, results now early 2010.

SC54B
Preparations completed for 3D seismic work in the southern portion of the block.
Vertical colum may come in in excess of 300m
Trap risk is now low.
Mean OIIP is 634 mill barrels, just over p50 of 581 m barrels.
Interesting that further upside is recognised and will likely be
tested when Gindarra is drilled. This sounds like the reason they are
finalizing the remainder of the seismic on this area.

SC58
Sea bed coring commences in Dec.

SC63
Seismic has commenced on 840 sq km. this is to the southern end and
touches SC55.
It will be interesting to see how BHP do with their deepwater drilling
to the south of us on SC55, which borders SC63.

Top 20 shareholders reduced by 57 Mill shares.

Whole bunch of options expire btwn Nov - April @ 25c. If they can get
Tinaldo flowing by then, they might just get a bonus.

Do your own research.