Ann: OBL Attains Variation of Permit VIC/P47 Year 5 Work Program, page-11

Santos yesterday sold 50% its onshore Orbost gas plant and 50% of Sole Gas Field Vic/RL3 (net 100 PJ net 2C high toxic H2S dry gas) to Cooper Energy for circa $27.5 million (plus COE agreement to spend first $50m of project circa $200m).

So what value is OBL’s 101 PJ net 2C potentially wet NGL’s (clean) gas.

15 cents to 20 cents per GJ seems right for tolled gas – cost circa modest $100m to drill and tie-back.

This transaction gives us a guide what is the market price to do the same deal with our Shelf Oil Pty Ltd 50%.

Pay OBL 27.5 Million and then they the farminee pay the first 50 million. What would that do for OBL with a market cap of $4.6 million? I do know OBL have men on the ground looking for a farminee and providing data and talking under confidentiality agreements.

I can not see us getting a xmas present yet. But, this asset maybe worth more to OBL than the Derby block in the short term.