Ann: Operations Update, page-67

We do not know the cost associated with drilling 02 we can assume this will be half of the figure noted .... if this was the case thats $2.25M .... we know they will no longer have $800k cash noting costs associated with vali remediation ...... we know KBC are doing all in their power not to pay the residual $1.45M .... We know MEL are no longer cashflow positive ..... VEN are raising significant cash if they had a debt option presumably they would of taken it .... KBC are playing silly buggers with VEN i cannot see why they would fund the remainder of their MEL loan .... even if they were i would question MEL keeping a bedfellow we know is simply trying to trip up whoever it funds/ invests in