operational report, page-19

cloak & elgaes,

I'm not trying to fool anyone, but if you don't want to read the facts that are in black and white that's up to you. For your benefit I'll even guide you to where the figures are on this occassion, so you can be crystal clear.

The $45M comes from page 1 of the annual report announcement, item 10

"10. Macquarie Bank Term Debt Facility
200,000,000 USD Facility, 3 Years, LIBOR +4.00%
Drawn to approximately 60,000,000 USD
Paid down to approximately 45,000,000 USD"

Cost of sales figure comes from P17 of the annual accounts, it is further broken down under note 4 on P32. Where the other figures I used came from.

No you'll find the original 3,100 net acres of the Southern Star lease is now held by production, the 2 purchases since of 320 acres (160 acres of which is not shown or listed that I can find) and the 1,046 acres bought in November 2012 are not held by production, each will require 1 well per 80 acres to hold it by production. If in any doubt see slide 15 of the Euroz presentation.

A friend of mine who works in the industry and deals with lots of wells told me when working out payback timescales etc, to always deduct @ 9% for lease operating expenses.

I didn't make up the figures, the company provided them. Ask them how they worked them out and how much they paid a 3rd party to act as operator on there behalf.

LOTM