Ann: WA-454-P farm-out agreement executed with Or, page-12

re: Ann: WA-454-P farm-out agreement executed... Ronstieb

12.5 % equity for 20% costs plus 20% of outstanding back costs of circa $1.5m. Meo woud retain 37.5% under this rationale,however, the smart money woud be on meo diluting down to 25-30% equity so as to be free carried for production testng. Under this rationle meo would keep retain 25-30% equity plus all the back costs to be paid by origin, as per today's announcement, plus $1.5m for 20% of outstanding back costs from additional farmee.

Pretty good outcome given the market, imho.

Adl