Narkiness Index, page-15

Hi Packer one thing for certain there will be a CR at some point, ideally combined with funding for going forward, as for timing thats an interesting one.

Going by the last Quarterly cash on hand less expenditure for the current Quarter we should have $35Mil as of now and that will be clarified in the next Quarterly due at the end of April.

CNE have indicated $30-40 Mil wells which would be in the $5-7Mil range for our share. To allow for overruns or extented testing I'm going to factor in up to $10Mil for us.

The first two wells will be appraisal wells in SNE and that would likely be enough to confirm commercial status or not , probably the first well would give a very good indication and that is likely to be known by the end of this year.

So we are looking at S12Mil approx low side and $20Mil high side for those two wells plus 3D (not sure of timing) which would $5-7Mil net to us ( a bit of a guess on that one) plus admin and costs related to other projects and its a guess also at another $5mill.

Putting that together we would be looking at a spend in the region of $21-32Mil between now and the completion of the two well SNE appraisal program hopefully early in the first Quarter 2016.

Given that we are financially comfortable up to the first appraisal well in SNE at least then for me that would be the logical time for a CR, that of course entails the risk of it not coming up to scratch. It's not an issue of them not finding oil IMO but how well it tests .

Given it's at least a 3 well program leaving a CR beyond the first appraisal well would be unlikely , the current $35 mil is not enough to leave any margin of safety.

In summary they may choose to have a smaller raise before drilling starts but they don't need to untill at least the first well in SNE is drilled IMO. Anyway thats my thoughts on the matter at this stage....

Congratulations on the cricket win , well deserved with some very good bowling..

Cheers Whisky