Ann: December 2009 Quarterly Activities Report , page-3

re: Ann: December 2009 Quarterly Activities R... Stefanis,

Agree.

However I have a few more thoughts on the rigs:
1) We are still in the exploration phase, hence capex vs revenue is high. We've a capex program of A$25mm in Thailand this year. Assuming most is for the rig, I am not sure we'd want to be spending say $45mm?

2) Sounds like there were problems with the old rig operator. Maybe we got to the stage we just had to say "take both way - yesterday"

3) We are getting an unfamiliar rig, which is going to put pressure on other activities we are geared up for, hopefully putting the pressure of 25% more work on them. I am not sure we would want to instead step that up by 150% in one giant step, while we were still reoganising around a different rig, and a different rig operator.

Probably a time to take things one step at a time.

Probably should be revisited in 6 months time when hopefully the rig is performing well, everyone adapted and geared up. Hopefully also our production and revenue is more supportive of higher capex by then.

Just thoughts. I too would like more explanation.

EL