Ann: Chairman's Address to Shareholders , page-38

fajacobs, you obviously have knowledge of the company and its operations. Some have inferred you are an ex employee/director? …in which case your knowledge would be considerable. Any pre existing acrimony aside, which may be related in part to your reasons for selling; I’d appreciate your thoughts on the following:

• General thoughts on the quality and competence of the current Directors and management and specifically; their relations with the Indonesian authorities and secondly their ability to pull together a compelling response to the XOM asset opportunity (your point relating to debt already noted);

• Your thoughts on the existing wells and particularly the un-tapped potential of the PASE field generally.

Agreed, the recent work over outcomes were a disappointment. For me the failure to stimulate production flow from A2 particularly so. I was hoping that this well could be brought into production to improve the declining income situation. Do you have any thoughts on A2 specifically? I see it was stated in the quarterly that they are planning to ‘reperforate using conventional perforating with propellant stimulation technology’, which I guess relates to the opening of the lower reservoir. Any further thoughts appreciated. Muzz