ob on lng project and reserves upgrade, page-9

H,

Who do you think is the primary audience for these comments, Shareholders or Santos? Maybe both.

We will find out soon enough, as these events with LNGN unfold, how 'passive' an investor our non-participating JV partner is, when push comes to shove.

And, a good thing too that Santos is so passive and slow in moving. They have kindly given us all the time in the world to find non-Santos partners, to get apprvoals in, do the feasibility studies and get our reserves up.

We have all the TIME in the world.

Santos however, have a clock that is ticking loudly, as they slip further and further behind BG.

And before we know it, time will be up such that ESG could issue up to 15% of ESG shares without Santos approval. I am sure Marubeni would like to take a strategic stake in ESG itself, as well as PEL 238, the pipeline and LNGN.\

How weakened would Santos' ESG stake be with Santos 19.99%, Marubeni 15%, Directors and associates over 10% etc...? Once that happens, it is game over in terms of a Santos takeover.

Some may claim that Santos is a 'passive investor'. Marubeni won't be.

Yaq