ob on lng project and reserves upgrade, page-12

Acorn,.

Remember that ESG has 988PJ of 2P (using the cut-off of domestic gas prices of $3.50).

Currently, ESG has no reserves booked based on LNG. All ESG's current reserves are booked based on domestic uses for the gas.

When we are talking about LNGN, we are talking about reserves criteria based on LNG export prices, a la Arrow's $7.00-$9.00. So don't think that 988PJ is all ESG has at the moment. It is all they have, until such time that they can demonstrate to the certifiers that there is a market via LNGN - that is, the feasibility study, and then offtake/equity agreements.

Have a look at the 2C figure, which give you a much better idea of the gas that is only constrained by the lack of a demonstrated (export) market.

Add a market, upgrade the 2C resources to reserves.

Yaq