Ann: Sugarloaf Operations Update , page-29

OGG

You look after this little baby whilst I am away (holiday). I hope to be back for Morgan.

Every now and then there is a reminder to investors of the type of risk that we do NOT have - Desire Petroleum (UK listing) - "poor reservoir quality". Those are words that haven't been spoken by any of the companies drilling around our acreage. And we have an operator that has made its money and reputation out of re-completions - getting the HCs out of the rock is its specialisation.

I had no interest in Desire Petroleum.

It might make investors appreciate the low risk profile of the JVPs a bit more.

As for 'sellers' - the only selling that I have done this year is to switch into AUT (a proportion) to gain exposure to AUT's longhorn and ipanema acreages. The jvps are all buys so far as I see it.

As to SP targets - too early, I think but multiples are on the cards - perhaps very serious multiples, particularly on my in-price of about 13 cents. I expect to be holding still at the end of the year. After 4 years the Sugarloaf project is now starting to roll.