Ann: Galoc Phase II Drilling Update Number 6 , page-8

re: Ann: OEL: Galoc Phase II Drilling Update ... From my knowledge, exploration tends to be valued between $3-8 per barrel on a risked basis.

Undeveloped would be somewhere between 10-20 per barrel.

I know that several deals at $20 per barrel were done in the Canarvon Basin and that was either post development go ahead or in production.

Add to that the companies existing cash plus assets and that's what the company should be valued at.

What can happen is that with out defined development/exploration plans and being able to deliver on those a company can be valued substantially below their actual probable value. This value can be seen as the intangible value of management or the value of luck depending how it is seen in the resources game. Quality management is essential in this high risk game.