probably time to get set..., page-5

Hi Doc,

I hope ITC helps the finances along for both our sakes.

PEL 115 is drilling in June. I think VPE is the operator and they have it in their drilling program.

This is from ITC.

PEL 115
The operator has completed an initial study of PEL 115 and has identified 22 leads and
prospects of which 17, with mid range hydrocarbon potential, would be economic in the event
of a discovery. There are 5 prospects that have marginal economics at the mid range level. A
number of the features identified have potential for discovery in more than one horizon and in
all cases they are very close to infrastructure.

At this stage 13 prospects are identified as having oil potential and 9 gas and liquids potential.
In a number of cases the prospects are ready for drilling while a number also will require
minor seismic reprocessing and/or further interpretation which is currently ongoing. In
addition casing is being purchased and rig contracts being secured.

Following the late March, 2004 PEL 115 Joint Venture meeting it was recommended that four
wells be drilled, three oil prospects in the southern part of the permit and one large gas
prospect in the northern most block. The drilling of four wells will be subject to unanimous
Joint Venture approval as the statutory commitment for 2004 is only two wells.

Due to the difficulty in acquiring casing, as well as the general lack of rig slots due to a
significant increase drilling activity, it is anticipated that drilling will not commence until
June, in the southern part of the permit. The first well to be drilled will be identified after a
further JV meeting.