oyster creek field., page-4

Dargie,I have come up with a couple of points in regard to the development of the oyster creek field.

Firstly at the 2006 agm when I was discussing this project with Howard he indicated to me that the lower frio sands are generally prolific producers in this area.

He said in all likelyhood each well will need to be choked back to very small chokes to A) protect against possible reseviour damage and to stop the wells producing sand with the gas.B) To the best of my knowledge I dont think any well so far on this project has required fracture stimulation.I believe they are both flowing naturally.

In my opinion as flow rates start to decline they will increase choke size to maintain production.

As for price risks,this is a quote from the annual report.
"We have not elected at this stage to enter into any hedging contracts as we believe the gas prices in particular are grounded in well understood supply/demand fundamentals in a long term,under-supplied market."

General market viewpoints are that gas will play a very important role as a transitional fuel until alternatives can be commercially implemented.

All the best.