$1.6 billion offtake agreement, page-11

Lindo,

The other thing that struck me about this deal is that is a 'serious' deal. This is an MOU that is very likely to result in a GSA.

This does not appear to be a case of, "let's provoke Santos into making a bid by signing a flimsy MOU". Because, no serious company would want to deal with ESG if that were the case. Anyone prepared to take the time and effort, and now money, to sign such a deal does not want to be played around with. And ERM is a serious player.

And this substantial first step is based on just 7% of the 3P+3C... and these resources and reserves are themselves growing. It really does give all of us an idea about what a massive resource ESG has.

It is a tremendous show of support for gas-fired power in this country. A show of confidence in the economics (despite the current tax proposal). And to my mind and most importantly, it defines the relationship with Santos.

Yes, ESG and Santos may be living together in PEL 238. But this is not a case of 'friends with benefits'. I see no evidence of a cooperative relationship here.

Y