Ann: December 2009 Quarterly Report , page-30

Where did the figure of $310m for Longtom come from please?

Gas Sales Contract is based on 25 PJ / annum with estimate pre tax sales of $70m / annum. That's 250 PJ worth $700m over 10 years.

Longtom 2P reserve (current) is 350PJ plus contingent reserve of 71 PJ. So outside the contract with Santos, Longtom has a current reserve of 171 PJ remaining. 32 PJ is 1P and the balance of 139 PJ as 2P.

Based on 250 PJ being worth $700m over ten years thats $2.8m per PJ. So if we have 171 PJ remaining to be sold that's worth $478.8m!

So Longtom is currently (and additional reserves are highly likely) worth $700m + $480m = $1.18 bln though discounted to today's dollars.

If we discount back using say 12%, Longtom is currently worth circa $425m plus development upside. This is assuming the 171 PJ is sold over 10 years though in reality it may be sold in half the timeframe. If it were to occur over next 5 years the total value of Longtom would be circa $557m.

Comments re: Longtom welcome