Flow have announced today that they have been awarded 2 new...

Flow have announced today that they have been awarded 2 new permits. Ann. follows:-

Award of new Australian North West Shelf exploration permits
Flow Energy is pleased to announce the award of permits WA-458-P and WA-457-P offshore
Western Australia. The Western Australian Government has formally advised that Flow Energy
has been successful in the award of these blocks in the 2010 competitive bid round. Flow holds
100% of both blocks that are in the highly productive Dampier Sub Basin. The effective date of
the commencement of the permit term is 7 July 2011.
Cath Norman, Flow Energy?s Managing Director commented:
?Flow Energy?s focus is on high impact exploration projects and to date we have been strongly
focused on East Africa and Jamaica. After many years of reviewing the opportunities at home in
Australia, the award of these blocks results from our first bid in an Australian licensing round. Our
exploration team has extensive prior experience in this area and brings fresh ideas to the
relatively under-explored Dampier axis. There is a very high chance of success in this region for
valid structural traps and our program of 3D seismic reprocessing and new 3D seismic data
acquisition across each block will better define the traps and mitigate risk before drilling.
The location of the permits in the Carnarvon ?heartland? means that any discovery may be readily
commercialised.
Flow is pleased to have added these two blocks to our portfolio, especially in a competitive bid
environment. We look forward to testing our new ideas and potentially bringing a partner to share
in the exploration.?
Both blocks have a 3 year initial exploration period consisting of seismic reprocessing and
geophysical studies in year one, 3D seismic data acquisition in year 2 and geological studies in
year 3. The work commitment for the first exploration period is $3.45M for WA-458-P and $4.3M
WA-457-P. These commitments are inclusive of 242km2 of new 3D seismic data for WA-458-P
and 322km2 for WA-457-P.
After this initial period, there is an option to commit to another three year exploration period with
the obligation to drill one well in the second year of that period.

Whilst little progress appears to have been made with securing JV partners to help fund exploration in existing permits, securing new permits in the Carnarvon Basin which have modest early commitments is a good outcome which improves Flow's appeal.

ANZ