oil strike, page-20

Updated information based on 2P reserves for Parsons Field released by BPT Management yesterday:

2P reserves for this field: 1,900,000 bbls
BPT share: 1,425,000 bbls
Assume a forecast oil bbl sales price: A$100 and
Net back (i.e. less production costs and royalties): A$65 bbl and
Australian corporate tax rate: 30%

Undiscounted cash flow from this field: approx. $64 million

Number of shares on issue at BPT: approx. 887 million

Undiscounted cash flow from this field: 7.2 cents per share.

Therefore, on a discounted basis the benefit of this new field (at the present time) is probably close to 6.3-6.7 cents per share.

Parsons-1 has flowed at 3,362 (gross) barrels of oil per day through a 2” line from the Namur Sandstone. The well is now cased and completed as a future oil producer. Production is expected to commence in the second quarter of 2008. This will be a nice little earner for only one onshore exploration well!!!

IMHO, there is a lot of upside yet for the Parsons oil field. It will probably be produced for a few months to get some reservoir pressures etc over a period of time and then hopefully they will start appraisal/development drilling next year on the oil field.