progress report 3, page-8

Its all work in progress, Chris & to an extent COP are the operator & r calling the shots, which can b very frustrating as we've seen.

WPL's nearby Torosa field is a good analogy. It has 14 tcf + 370 mmbbls of resource. Was discovered in the 70's & wasn't until the last decade that WPL took further action on appraisal drilling. It's south of Poseidon & on trend (ie NE-SW, althou' its a separate structures). A final investment decision on Torosa is expct'd nxt year between the JV there (WPL-Operator 50%, BP-Chevron: 16.67%, BHP-Shell: 8.33%). So that's nearology for u.

As for Poseidon it was rated amongst 1 of the top 10 global discoveries in 2009. The other Oz discovery in that top-10 was WPL-Hess's deepwater Martell-1.

The mkt expects a flowrate which we haven't seen due to technical issues at P1 & P2, hence the backlash with the SP.

COP-KAR know there's a gas column, they have cut cores, taken gas samples at the last well, have the logs & seismics to analyse for now. However the info isn't complete for the entire structure & needs more wells to make national headlines of sorts. I'd expect KR2, P3, P4 to b drilled nxt year.

Just recently KAR conducted further 3D seismic data over the Kronos structure, so once the current drilling program ends (there's a break of 5-6 months), they should b able to pick up locations for the next phase of drilling with a new semi-sub rig.

Do check out there presentation, its self-explanatory & very elaborate.

Apart frm the Browse basin, KAR r farmin-out a certain % of their 100% interest in Brazil to either 1 or 2 parties (as is the norm over there), so that should b news, we dont know the timeframe but I'd expect it around mid-year or early Q3, with drilling in early 2011 (as per their preso's).

Hope that helps.

All the best with y'r portfolio. U could add ESG to that.