pressures, page-23

hi Ptolemic,

EWD (operator of PPL259) wants to farm out another 25% as the previous farmout fell through - so I think that HZN will keep the 25% - but clearly I don't know.

EWD are also likely to be taken over. HZN is a possible suitor - although others may have deeper pockets.

Others may leave EWD or at least the additional 25% to HZN, and allow HZN to act as operator to prove up reserves and then farmin.

The most likely farmout is 50%. I believe that the possible range is 40% HZN preference and 60% new entrant preference.

Deal still needs to be completed hopefully this month. Hopefully there are no delays due to landholder meeting/forum outcome and/or finalisation of gas contract (fiscal terms).

I suspect that HZN will be reasonable poipular with ASX200 iinvestors, so demand should b maintained in the short-to-medium term. There is always an interesting dynamic around ASX200 entry with investors front running the candidates at each rebalance with the intention of making a quick $. Always a bit of a game in the short term.