attention ej pert. farmout sc51

Clarification needs to made regarding the SC51 farmout and SC51 Farmout up date.

18/01/2011 ASX release clearly states;

"SC51 Joint Operating Agreement and Farm-in Agreement have been amended to split SC51 into a Northern and Southern block. Otto has elected to not continue in the South block, containing the Argao prospect, giving SWAN 80% working interest in the Southern block. Otto will retain a 40% working interest in the Northern block."

This statement has now been "corrected" by the following

03/02/2011 ASX release:

"Otto also provides the following clarification to its release of 18 January 2011 in
regards to the farm]down. It should have stated that, among the key terms of
the agreement, the SC51 Joint Operating Agreement and Farm]in Agreement
have also been amended to allow the Joint Venture Parties, upon their
completion of the Duhat]1 onshore well, the option to drill the offshore Argao]1
well in the southern part of the block or a second onshore well in the north."

Clarification is now needed on the following.

1/ If Argao-1 is opted to be drilled following Duhat-1, what are the terms and conditions relating to this as outlined in the new farm out agreement? Ie; what share does Otto have, and does the existing drill date deadline in the service contract still stand?

2/ If a second well is opted onshore, after Duhat-1, does Otto still have a commitment to drill Argao-1( at a later date), and if so, what are the terms and conditions?

3/ By what date does the second onshore well have to be drilled?

At the end of the day, Otto's first release was quite clear that it had elected to not continue in the South block, containing the Argao prospect, giving SWAN 80% working interest in the Southern block. This has now changed, and I (and perhaps many other shareholders) would like to know, under what terms and conditions Otto is still committed to Argao-1 and /or the second onshore well?

Thank you,

Sharpeye.