Oil up over $50, page-9

Hot, imo

Drill rig not going to be contracted til about June more than likely--I expect oil to be in the mid-high 30's by that
time. Just a "dead cat bounce" for POO at the moment. IMO of course.

Depreciation of the $A not good as our costs will be in $US. Good if we were producing oil as income would be
converted back into $A--however that is not likely {if we get that far} until 2017/18. Any T/O or buyout
offers post successful appraisal will be in $US which will be good v $A.

I hasten to add that if FAR's SP cannot gain any traction over the last 2 days {with POO having increased over
10% in that time}, it does not take much imagination to see where it might head if POO retracts 5-10% over
the next week or so. Double edged sword for me at least, looking for a steady SP around that 9-11c prior to
2C announcement, yet eager to top up further if the SP gets down to the 7's & 6's over the next month or so.

GLTAH