pre open, page-12

Enrico - the last drilling update should explain it a bit. But essentially it is:

The recent discoveries in L33 is a new concesion area. This is great as it means our sliding scale royality payments reset from scratch in this area (i.e. we pay less tax/royalites than if it was a discovery in L44 where we already have production).

However as these are the first discoveries in this area it also means that we do not have a production licence yet. It has been submitted and will certainly be approved - but we have to wait the approx 90 days for it to come through before we are allowed to sell any of it. Some will be stored on-site but not that much. Essentially just means we have abotu 3000 bopd waitign on tap that we can start selling in 90 days time.

ALSO - the recent discovery and WB-EX (2,500 bopd), it is an existing concession (L44)so we are allowed to sell it during the permitted testing period (90 days). But we also have to wait for an actual production licence to sell after the testing period. So there may be a short pause in the sales from this well between the end of the tesing period and recieving the produciton licence.

NOthing to worry about - jsut means we can't sell it all until 3 months time.