shareholder update

Here the operations uptdate 14 January 2009.

It confirms almost all of our discussions in the COI forum in the past weeks:

* most importantly, we will see a farmout deal for ATP 743 and ATP 744
"in the coming weeks".

A farmout would add a value for the first time for these assets. I wonder, If AGL will be the partner under similar terms like the Galilee Energy Deal from summer 2008. Souch a deal would value 50% WI for these two permits with about $70 million.

... a T/O-bidder schould be quick now ...


Furthermore:

* corehole drilling in PEL 427 and PEL 428 will commence early February - a similar result in PEL 427 like the Edgeroi-1 well in PEL 238 (ESG) would be massive upgrade of the prospect of PEL 427.

* Santos will bring Mahalo back on the agenda for 2009 :-)

* 10 wells at Florence in Q2 09 and more drilling applications will be loged.

Very interesting to see in the next quarterly cashflowreport (should be out next week) if COI recived first revenues from sale from the project (27% of 140 bbld should be something about US$40,000 to 45,000 per month for COI)

* last but not least ... Probably we will have the first drilling at Grays Habour in summer 2009 - this program could bring a lot of fun ...