Ann: Galoc Phase II Drilling Update Number 6 , page-11

re: Ann: OEL: Galoc Phase II Drilling Update ... Hopefully this is the week if all goes to plan.

Even if the field is declared commercial by this year we should expect that costs will be >30M net. I'm anticipating at least 2-3 wells to develop the field, given that there are two productive horizons it's a bit more complicated and costly per well. Development will require an FPSO or platform, if that be new or refurbished. More than likely first oil should be expected by 2015, unless there is something that management has been working on.

Productivity per well and the water cut are important as has been highlighted given the past performance of the field.