Ann: Company Update , page-60

it appears that whl may have put a sell job on all the stockholders implying the agreement was father along and it was not -----------------reposted ----------------------------------------

The farmin partner may not be where we may think they are in final agreement (regardless of the discussions from WHL). Timing reliability of information is all important.

Continued existing share price variation throughout July may indicate the confidence of investors is dropping regarding a farmin agreement causing investors to back away.

We may just know the name of the potential farmin partner by August. It may take to December to get a formal potential plan approval and work to get started.

A lot of people may misunderstand the depth of the LOI. The farmin will not do the depth for a detailed agreement without the initial approval of the Seychelles government which we now have.

The initial understanding between WHL and the farmin potential farmin partner, as outlined in the LOI release below requires many steps to be completed.

A preliminary review of the available information on the area in discussion must be concluded followed by a preliminary understanding of a potential agreement with all parties involved. It appears that this is where we are now and have the Seychelles initial approval, including a proposed change of ownership for the offshore licenses.

This does not mean that The Seychelles government is happy with WHL.

The initial agreement of the June release was the initial non-binding and with no guarantee that these discussions results in a legally binding agreement to farmin, or, that all the conditions precedent to such an agreement will be satisfied.

Now the potential farmin partner has a clear agreement of the initial agreement by all parties involved. This agreement allows the detailed Due Diligence to proceed with a complete understanding of the requirements of the Seychelles government.

The problem of a failure in the LOI final agreement may put WHL is a position of losing the lease of the existing Seychelles site.

The release of new top WHL stock holders may not give an indication to who the new potential farmin may be. The area I am concerned in is the options, and potential future option agreements based on performance which I know exist.

Bob

“The LOI outlines:
• a for discussions with the Government of the Republic of the Seychelles necessary to progress the proposal;
• indicative commercial principles in respect of the potential farmin to assist those discussions;
• principles for a forward work programme for the Seychelles oil and gas assets; and
• The conditions to a process for progressing the negotiation of fully-termed binding agreements (including a Farmin Agreement and Joint Operating Agreement (JOA)).
The LOI is initially non-binding and there is no guarantee that these discussions will result in a legally binding agreement to farmin or that all the conditions precedent to such an agreement will be satisfied.”