Ann: Karoon takes first step in listing South Ame, page-11

re: Ann: Karoon takes first step in listing S... Bob,
as Karoon Brazil('KB') is a wholly owned subsidiary of Karoon Australia('KA') if 25% of KB is sold on the Brazilian Stock Exchange for say $500mm KA is entitled to receive those proceeds as the shareholder. It may need to loan some of those funds to KB for working capital purposes, say $10mm.

The plan will then be for KB to secure a farminee to assist in drilling the Brazilian prospects. As has been already pointed out, as KA will still own 75% of the rest of KB's shares KA will be entitled to 75% of any future dividends or if it wishes KA can sell down more of it's shareholding at a later time in the event of success in the drilling campaign.

ANZ