Ann: Trading Halt, page-31

Hartleys June report (CVN website) see potential for, in success case, a domgas operation similar to that of Devil Ck/Reindeer (Apache/STO) with gas piped ashore and treated in a conventional gas plant.

With a wet gas discovery we could expect enhanced economics over dry gas, and Peter Strachan alludes to this in his commissioned report for CVN (on website) which states:

"Strachan Corporate assesses the 40 km2 Phoenix South prospect with an estimated 70
metres of net pay below 4,000 metres, averaging 17% porosity, with potential to hold
over 4.5 Tcf of gas-in-place, with potential for over 2.5 Tcf of recoverable gas plus 50
mmbbls of associated liquids if hydrocarbons are present. A discovery located 150
kilometres offshore from Port Hedland would be an ideal candidate for rapid
development to supply WA’s high value domestic gas market."


"Applying an insitu value of $18 per barrel for oil and 85 cents per Mcf for gas,

Strachan Corporate estimates an insitu value of 58 cents per share to Carnarvon for a

2.5 Tcf gas discovery and over 80 cents per share if the field holds 3.5 Tcf of
recoverable gas."