Ann: Woodside Enters Into Exclusive Option on Namibia PEL 87, page-67

I actually like the deal and "about" what I expected. I say this because we keep an initial reasonable equity of 20% all the way through to end of first drill, we get enough money to keep lights on/ and or pay Custos to keep ourselves at 20%, then we have option to be carried for a second well but reducing to 10%. Have a look at the Sintana deals with Galp and Chevron on PEL 83 and PEL 90 where they are carried up to 3D and drilling with Chevron and expenditure of USD$86M with Galp. In both instances Galp and Chevron have 80% and Sintana 10%. So..... all about the same, with main difference being if we hit really big oil in first hole we have 20% to play with BUT expect major CR if we dont dilute. Just a bit of added flexibility.

As you rightly say "On the other side, the alternative (oblivion) has been avoided, risk has been removed". For me its now looking at removing any risk by also being carried by selling down some prior to any announcements re results of 3D. Now to check what price they open at. Good luck to one and all!!