MEC, I fully support the acquisition of the 3D, always have and...

MEC,

I fully support the acquisition of the 3D, always have and always will! No objection and fully understand how superior it is to a 2D survey.

However is it worth handing over 60% of PEP11 for a 3D?

You say MEC will still have a 34% working interest in PEP11 should RL Energy take the 3D expedited option. However you fail to address the fact that MEC is now actively advertising for International Oil and Gas Companies to fund the future drilling of PEP11 once a 3D has located the best drill sites. How much more of PEP11 will MEC have to give away as part of any drilling funding deal? You're asking big multinational Oil/Gas Companies to fund $25 Million (2017 figures) in drilling costs, yet fail to mention how much more of PEP11 you will need to negotiate away to secure that funding! I can't imagine any Oil Company funding a PEP11 drill without wanting a very substantial piece of PEP11 in return. I would rather you give the 60% of PEP11 to an Oil Major and fund the 3D ourselves. Just my personal viewpoint as that we definitely get to retain a real 34%.

MEC could sell off the NT gas tenements and save the money you're intending on spending there and invest that instead into funding the 3D for PEP11 ......

I'm all for management moving PEP11 forward , just want to see the best outcome to maximise share holder value for all concerned.