not out of the woods yet bg still a problem

Not out of the woods yet BG still a problem

CB

Red Sky will pay the Company a reserve premium of $5 million indexed to various production
standard prices from time to time for each incremental 3P (proved, probable and possible)
trillion cubic feet of gas or oil equivalent at final investment decision which may be discovered in
the Joint Venture area.


It is the Company’s view that PXA is obliged to execute certain ancillary documents to enable
the full entry of Red Sky into the Joint Venture but the matter has been referred to the arbitration process to determine.

Arbitration/ Mediation is an expensive and time consuming proces( but cheaper and quicker ) than Court cases.

We will still ahve to wait with baited breath.

CB