Ann: Mahalo Gas Project Sirius Road 2 Lateral Well Spuds, page-7

‘Certainty' is what it’s all about – or minimising perceived risk before making an offer to buy us out. Shareholder appetite for risk is minimal therefore any suitor will want as much ‘certainty' as possible in order to provide justification to shareholders for any potential acquisition.

The more reserves we book in the 1P/2P category – the more we are worth and the closer to production we move.

It’s all about timing and without doubt we are being watched closely.

If you have fund availability earmarked to secure future market share by nailing supply – no point in spending a lesser amount for what is perceived as being a greater risk. Get as much of the risk eliminated – then look at the known numbers and buy in on what is deemed to be as close to ‘certainty’ as you can get. 1P/2P is bankable.

In the mean time – we press ahead adding value.

Business as usual and looking good.