Ann: Tindalo Operations Update , page-11

Not a great announcement, but not unexpected, basically as I stated before they have drilled into the oil / water contact and have not positively isolated the aquifer. This is poor Well Engineering.

My big concern now is will they get the remedial work right? Squeeze jobs are notorious for not working. Once they have pulled the completion the incremental time to drill a sidetrack and get away from this water incursion is minimal. I really feel that the company should be looking at this alternative.

Another interesting question for the company is how solvent are they going forward if they can't solve this issue ! I.e. now they have pulled the trigger on rig and tanker how long can they pay the bills from the NDO share of Galoc and Tindaloo which by calculation is producing on average 2300 BOPD !

I continue to hold a large holding so this is not downramping, however the only reason I do not sell at the moment is that will be the exact time that it is announced that Shell or whoever has farmed into Gindarra.

So please don't tell me what a good job NDO are doing operationally, they are not.

cheers,

Oilman