Ann: Dukas Update, page-20

The board has had sufficient exposure to Santos to understand that they may not have wanted to commit to Dukas before they announced it. And they would have had contingency plans in case that occurs. They are still handicapped by our existing contract negotiated many years and boards ago. The current board still need to get an agreement from Santos on where we go from here. Is Santos looking to continue to participate, if so when, how. if not, what are our options to take back control. What are our options if Santos wants to just run down the clock on this and not allow us to do anything with Dukas. Do we go ahead with Zevon by ourselves or another partner, etc.. Quite a few things to consider and determine which drilling campaigns are our main priority and how they are going to fund each objective. Santos has made no further announcements about Dukas, so i assume the board is still waiting too for their response. if we start spending on the basis of Santos doing nothing with Dukas and then they decide to drill could leave us really short of funds to fund out half of drilling costs and at the hands of Santos.

I want a response but i want a measured response and a plan on how we move forward. This board has done more than any previous, so i have faith that they are weighing up the options to get the best bang for our buck.