Ann: Change in substantial holding , page-23

silhouette,

The company is confident that 3p reserves will be re-categorized as 2p by the year end (see ASX release 8 March 2011).

3p reserves certified by NSAI were 53.3mmbbls + 177.5 Bcf of gas= 82.9mmboe. The enterprise value is thus about $23 per bbl ignoring the gas.

Re the post that you copied, AUT aggregates oil with condensate so the 2p figure is not 560k but 12.48mmbbls + 57.7BCF gas.

The market is bound to be looking at the 3p figure because it will take note of the company's confidence and Hilcorp's track record.

Furthermore, the market is aware of the uncounted reserves: not only the chalk (from which AUT is currently producing) but also the likely development using denser spacing.

Multiples of 10x the NSAI figure have been suggested by CMG Securities.

The market is bound to look to the potential because of the lack of exploration risk and the delivery record of the operator.

The company will spend the next 12 months or so drilling to hold the leases by production. Next year, they plan to drill multiple wells from the same pad - it's all in that ASX release. Not only closer spacings but also, possibly, twin laterals in the EFS and the chalk.

We could see a significant revaluation over the next few years. The market will also take note what its neighbors are doing and reporting.