august presentation, page-3

Sentia and Steven

good points.

A few questions for both.

1. What are your thoughts now on the possible new share issue?

I wonder whether they will still need to do it, given cash flow ( I calculate at least $2m free cash in next six months) which should be enough to finance 2 new wells (if needed).

Second factor is the currently low sp. Surely they will not want to issue at these low levels.

Or do you think the cash is needed for the new acquisition?

2. I also have a question on debt from the report:

"Conv Notes $6.5m at ~8c (average) or
10% discount to market
– Net Debt US$5.5m "

Should I take it that the net debt does not include the value of the convertable notes; if it does not then shouldn't it?

Or, is the net debt the value of the Conv notes less cash?

3. page 7 shows a plan of the field,with holes A and B in the dark pink zone. Does the dark pink indicate that the area is completely above the Oil Water Contact (as opposed to the light pink shading)? If so then I guess the results may be equal to J2; which surely should improve cash flow mightily. if not this, then what does the dark pink represent?

4. with hindsight do you think the Acosta 1 was put in the wrong location? would it not have been better at location A or B? Or was it to ascertain the southern limit of the field for reserve calculation purposes?

All thoughts welcome.