Re Rate, page-3

The errors were a little embarrassing but I think have had minimal effect. More significantly, IMO, the internal report being sparingly summarised and shoe-horned into the end of the announcement came across as compensating for a IRR that may have been below expectations. It portrayed a company disappointment that should not have been there. After all, we had a conservative assessment saying we had potentially 1.4b BOE recoverable. I think this had more of a detrimental effect than the typos and the 24 hours it took to respond.

I would have liked the internal report to have been a stand-alone announcement, so that we could appreciate the different assumptions of the two approaches and then given due accordance to the Paul Basinski factor.

IMO the seeds of this were sown weeks earlier with the over inflated hype about the resource potential....knowing full well that even if the hype eventually (years later) proved to be true, the conservative and independent assessments along the way would always fall short. Hard to fault amateur speculators and investors from indulging in the hype (though some were excessive), but less easy to excuse DW saying 'several billion barrels' knowing that this would set an expectation benchmark that would be challenging to live up to through an IRR process.

At the end of the day, all this does not matter a jot in terms of reflecting what is actually there under our acres. What is there is what is there. We are just estimating its potential prior to proving it up and developing it (subject to some remaining but declining geological and commercial risks).

But it does affect the journey and the funding implications of the journey. CR is now much more difficult at this point in time. JV may be the only default option and this is IMO, to LTH's relative detriment. A self inflicted injury, again IMO, that should not have happened with an MD and a BoD with their experience.

Still a LTH and a big believer in the company, its people and its prospects - but hopeful that lessons are learned from this little episode.

GLTAH's.