Ann: Longtom gas project Offshore system ready fo, page-22

re: Ann: Longtom gas project Offshore system ... 431,

The deal is to pipe 68 TJ/day or ~64mmcfd of gas. This will b then b stripped for the condensate & gas.

However for simplicity sake,

* 68 TJ/day is the what NXS will supply Santos.

* This equates to 25 PJ/annum & will generate pre-tax revenue of A$70m/yr for 14 yrs or A$980m for 350PJ from two wells only. Should the flowrate drop, they can drill LT-5 as backup.

If all goes well then by end of Q4-09 they could generate potentially ~A$14.4m pre-tax of revenue, at say 75 days of production.

Take away taxes, depreciation & amotisation to calculate the EBITDA & NPAT. This cash can then b used to pay off further debt facilites. So really, the upside starts from Jan 2010 onwards when the first cheque arrives in the bank frm STO.

Small steps for now, but crucial in the long run.

cheers