annual report out, page-15

re: quarterly report out The issue of Apache and the jv negotiations may not be one of the actual % to be farmed out, but that exactly half will be farmed out. If they have equal shares it may make exploration and development decision making more difficult unless the two partners get on very well and have similar views.

Apache has a good name as an explorer and developer of oil and gas and NXS may be a good minority partner with good ground. But as an equal partner Apache needs to be much more careful and this could be the issue holding up a deal.

G