New Comprehensive forward projections, page-13

Hi Murr

You say: - "I realised a mistake - ie CTP only gets 50% of the Mereenie gas profits - so reduced the amount of gas correspondingly (this reduces the sp by about 50%)"....

Can you clarify what gas profits you are speaking of? If CTP and STO jointly market some gas produced from the Mereenie reservoir, yes of course CTP only gets half of the profits of those sales. But they are not required to jointly market production.

If, for example, CTP is able to signup IPL and other East Coast customers to purchase 22 PJ's per annum STO will have no entitlement to half of the proceeds of those sales unless it is a jointly negotiated sale. It will not be. If that was actually the proposal our company's announcements would have made that clear.

Just to test that point why not reflect on the recent presale to Macquarrie bank. There is no suggestion that STO benefits in any way from that presale or otherwise participates in it.

Could you clarify how it is that you are influenced to have regard to STO's percentage?