Ann: Progress Report Snatcher Field Update , page-7

i've read through the report and getting a better idea of the wells etc etc .. i realise most of you would know this buy anyway...

1. When Snatcher 1 & 2 start producing this should impact on Santos as the oil that Santos is drilling is largely coming from the North West , the Liberator Lead. Is this correct?

2. When can we expect a drill to the West as it would seem wells on this side would hit oil.

3. With Figure 2 what exactly do the red areas indicate?

4. Snatcher 1,2 and 3 will provide circa 288,000 barrels to ITC based on Proved Reserves. If the margin is $50 per barrell (not sure of this?) then revenue for life of these three wells is $14.4m. Based on Proven & Probable Reserves, where the drainage area is double, this doubles to $28.8m. The market cap of ITC stands at circa $45m so need to consider upside..

5. Further drilling to the West is important. Other wells around Snatcher 2 and 3 look highly probable. Doubling the amount of wells producing from 3 to 6 would yield earnings (if $50 per barrel margin is correct) circa $57.6m - discounted back to today's dollars it would be less. Current market cap is $45m and on the face of it this seems fair and i dont think the price will run away for some time until more wells are drilled and reserves proven.

What's everyone's thoughts on this - with detailed figures etc etc. Also keen to hear what the red areas represent on Figure 2.