Ann: Quarterly Report March 2015, page-29

Cujo,

I think you are right about the potential of the seismic. Drills are very exciting, albeit binary in outcome, but in this case with the JV spending the same sort of money, $50 mm, on seismic over such a lightly explored area where conventional understanding has been so completely upturned by PS1 that too has enormous potential to excite without the binary downside of a drill. Also no JV spends that sort of money which can't even result in a discovery without a huge amount of excitement - and notably excitement well away from the upcoming Roc well.

With the seismic being well away from the Roc area I am thinking excitement in any new prospects will not likely be greatly diminished by any duster at Roc, and one or more may progress to drill ready regardless of Roc outcome, prospectivity being as much influenced by what has been found at PS and PS1. I am no geologist, and I am very much focussed on Roc (not seeing a huge lot in PS), but I do also see plenty beyond Roc. I also see the seismic as likely to provide sp support in the lead up to Roc.

I also note the recovery in the poo has been quite substantial, with Brent currently trading at USD 66. The recovery even more significant in AUD.

Never easy to know when to buy, but my bet is we've seen the pre-Roc low, although it might be retested.

EL