value of zola/wa-290-p/wa-49-r, page-10

Sojourner

Excellent points.

I'll see if I can address some of them.

"This includes for example not just the confirmed gas discovery, but the prospectiveness of the overall permit as well. i.e. There is gas at Zola-1 but what are the chances of more gas at other locations within the permit"

http://www.asx.com.au/asxpdf/20111010/pdf/421mv90vcr6qvk.pdf

"Another aspect that I find difficult to quantify is development costs, which impact on the expected rate of return, which in turn impacts on the value of the permit"

Zola is quite close to the Wheatstone pipeline and the Wheatstone LNG Plant. Compare that to Browse which was going to be processed at James Price Point.

Wheatstone as you would know is being constructed by Bechtel who are experienced engineers operating globally. (Building LNG Plants is a bit of a yawn for them). Although Wheatstone is still under construction Chevron will want to make a FID on the expansion very shortly as they wouldn't want Bechtel to leave only to have to call them back.