Ann: Phoenix South-3 Drilling Update, page-44

Lash,

These r separate issues altogether. Their IPO was on & off last year. Few years back, Finder & JxNippon dropped their 20+20% equity to QE. CVN held on. So will take a bit more cash to convince the board to sell this & focus elsewhere.

For arguments sake a gross 100 mmbbls recoverable oil find minimum should give the JV cashflow for apprx 10+ years. (5 recent examples of first oil in WA's Exmouth Basin are Enfield - july'06, Vincent - aug'08, Van Gogh Feb '10, Pyrenees- May'10, Coniston-May'15).

So QE will need to make up their mind, whether they want to b a listed Explorer/Producer or take the cash & find another asset to play.

They can open up a dataroom for all sort of local or international tyre kickers or let their bankers (Mqr-Brkf'ld) chase up say someone like Harbor who paid US3bil for Shell's 2P-350 mmboe in the North Sea last year. Plenty of possibilities.

Cant tell the debt QE has on its book but with the recovery in Oil prices their revenue in 2017 was over a 1bil A$ for 18.3 mmboe sales. A$441 mil came from 4.9 mmbbls oil & condensate sales. So with revenue & reserves of 2P-226 mmboe and additional 2C resource either scenario (ie list or sell) should b compelling for QE.

If its a sell, then it mayb an asset carve up for the gas & oil with the JV partners getting first rights, if interested. Don't think BHP would b bothered at Pyrenees & Macedon JV or Inpex at Van Gogh-Coniston JV, which leaves Santos from Reindeer & Spar JV & it depends on STO's shareholders if they prefer a 5c-10c divi or let the K. Spence do an Organic bolt-on acquisition to grow their existing 2P-848 mmboe reserves!!