Ann: Dorado Project Update, page-141

Yeah I heard the bit about VI bit couldn’t quite figure it, whether perhaps he was just talking about the gas market, as it’s such a long way to VI and I wasn’t sure if transporting the unprocessed gas to VI for processing was really a viable option.

I think what is clear is that there’s a lot of potential for everything to go back on the drawing board, esp. if we get another discovery (whether gas or oil). I also think KG is keeping his cards close to his chest atm - probably prudent.

Probably wise for KG to get Alaska underway in what might be the last window of opportunity there, and amidst what is apparently contractual and cost certainty, and to defer Dorado where everything seems up in the air, esp costs.

Unfortunately KG is going to want to get along the track on Alaska before focussing critical management attention to Dorado. I don’t know how much time is involved. I do hope the delay is not by much more than a year.

It wasn’t good news, but I’m not as pessimistic as the market, or the stale bulls (and worse) here. This is EXACTLY what happens with O&G projects.

EL