Ann: DDH1 and Perenti Scheme Implementation Agreement, page-19

Both companies are seeing the decline in metres drilled by exploration companies, and need to find synergies to compete with the smaller leaner players in the market. There has been a contraction in drilling with the 1 July introduction of the WA heritage Act with drilling dropping from 3,644km in the June 22 quarter steadily declining to 2,513km last quarter. That can't be good for revenue or earnings if it continues so they need to do something.