Ann: Chairman's Address to Shareholders , page-22

Ronsteib

Thank you for your reply. I spoke further today with people involved with the company regarding the comment and yes Growler is only at 1000 bopd as the OPERATOR is concerned about POSSIBLE significant water cut, in other words they don't know, well Vic Pet don;t any way. Further discussion with those that count after the meeting today still do not understand why they are still on free flow and as stated many times before it is not ITC's position to restrict flow due to some water inwhich there will always be in a field when it declines. The wells have been flowing for over 12 months now and have not declined so far and are above the companies expectations and so expect reserve upgrades for Growler once the 3d is analysed.

The meeting was well attended and a very ill Eddie spoke with much gusto and felt the market has severely got ITC wrong at present. He believes the new program will lift ITC further and reinforce what they have found - the biggest find in the Cooper in the past 20 years.

Stay tuned is all I can say. There was more.