salamander-2, page-10

My understanding is that PTR has preference over PAX and or GER but PTR will not require the WDI rig until Q4 2010 (as they need to completed their fracture stimulation program before defining the location of Paralana 3).

On 18th August 2008 PAX paid a deposit to WDI for the next available drilling slot after PTR Paralana 2 and hence have now drilled Salamander-1.

On 29th July 2009 GER paid WDI a deposit of approx US$370,000 for the next two available drilling slots after Salamander-1, assuming that PTR didn't want the rig next. The two slots are for the GGPP production and injection wells.

I appreciate that GER has some community and landholder issues at the moment and will not be able to realistically commence drilling for at least another four to six months but they are scheduled for the next two WDI rig slots (for GGPP stage 1) and then PTR (for Paralana 3).

PAX will now perform a four month testing and evaluation program culminating in a development decision. Until this is process is complete and a JV partner is established, Salamander-2 will not make it onto the schedule.

Having said all that, the timing and sequence of these slots can change rapidly and obviously WDI don't want their rig sitting idle when it could be cutting rock.

Systemiser.