questions for the sydney meeting , page-4

H,

I have a few questions, along the lines of some of your own...

Firstly, why there is no hurry to prove up reserves in Mauritania, (too many unbaked pies already in Labeidna, Banda, and even querstion if Tevet sufficiently appraised)? Let's get some booked reserves before drilling risky wells (high risk 'cause apparently Woodie has no idea where to find the oil/gas). Banda oil rim and Labeidna/D'Nor should be appraised before any drilling exploration wells in Woodie's areas. And before them, if possible, redrilling of Ching to bring it up to the flowrate it's supposed to be at.

Second question - does HDR prefer appraisals of above-mentioned known oil finds, or exploration, as the first priority.

Third question is HDR legally bound to finance exploration plays as the first priority, if they would prefer firming up reserves through appraisals.

Fourth question - why did Woodie relinquish previous drill rig when they appear to consider Ching was still in commissioning stage? Absolutely no excuse to say the Attwood Hunter was anticipated to be in Mauritania about February or March 06. Readily available contract information on the rig clearly showed it had a 500 day contract in Egypt (including all extensions) that commenced in late 04 - hence arrival in Mauritania say around late July 06. The likelihood of an early release from Egypt 1) shouldn't have been assumed, 2) could hardly be expected given the difficulty in getting hold of rigs in the current market. Seems to me Woodie/JV made a very risky call, which backfired.

regards,
KA