Ann: Half-Year Results Presentation, page-12

Thisis unlikely because for OMV, this is a small asset and they would not want tosell down an already small asset position and remain operator.

On market buy backs are not possible because there is no liquidity.

Large shareholders cannot exit, which is great news for us smallershareholders because their interests will be to maximise value from existingassets and return large piles of cash.

This remains the cheapest and lowest risk oil / upstream commodity producerI’ve found not just on the ASX but anywhere for the following reasons:

1. Based on my calculations, at current prices its returning 30% p.a with extremely LOW leverage to oil prices (which is actually a good thing because it protects the downside)
2. Controlled by shareholders who are making rational capital allocation decisions rather than empire building and using cashflow to buy assets that provide poor returns. This is the major risk with most companies and especially upstream producers.
3. Extremely low breakeven cost of production, which means we make money in nearly any oil price environment unlike many other producers (look at CE1 for an example of what happens to high cost producers)
4. Net cash, which limits the downside in a huge way
5. No development risk, our assets are already developed and it’s not just about drilling & workovers

Thisis the type of investment which I love, where you’re likely to make a lot ofmoney if things go as planned and if things don’t go as planned, you areunlikely to lose money. This is ideal because it allows you to invest largechunks of capital without because you aren’t worried about taking big losses.