hopes for news on karoon’s brazil farm-out, page-26

I initially thought that if they were to announce further developments at Boreas-1 they would have said the TH was pending another progress report on Boreas-1. Therefore, the term operational update more likely meant an update on the Brazil farmout as this was expected near term. However there is no reason not to say pending an update on farmout developments.

Therefore, IMO we are more likely to get a double or triple whammy announcement covering progress on several fronts hence the term operational update. This is likely to cover both Boreas-1 and Brazil farmout and other developments. We should be giving consideration to any other near term developments that the TH has been called for. For example the AR indicated that they want to drill the Grace-1 prospect in WA-314-P in 2013 so maybe they have finalised selection of wells 4 and 5 for this phase of drilling.

ANZ