Ann: Comments on release concerning Philippine Se, page-15

re: Ann: OEL: Comments on release concerning ... no problems abdm it seems the clarification is required personally i think it relates more to the precise wording than the agreement itself. TA has as you mention made a deal with Frontier gasfields ltd (3rd june 2010)

http://www.transasia-energy.com/current-events/trans-asia-signs-option-agreeements-relating-to-service-contracts-55-and-69.html

as well as recently a deal with Otto energy on the 3rd feb 2011

http://www.ottoenergy.com/IRM/Company/ShowPage.aspx?CPID=1563&EID=86600712&PageName=Otto%20Increases%20Equity%20Holding%20in%20Service%20Contract%2055%20and%2069,

From my understanding otto energy are not happy with the description of the service contacts the BPO released on monday. Clearly BPO do not have equity either direct or indirect until the option over sc 55 and sc 69 is in fact excised. Terms of the option seem to be that they have to be excised after the drill has occurred 150 days in sc 55 and 182 days in sc 69. Clearly this option will have value if either well if drilled hits commercial HCs. The big if is around BHP if BHP farms into sc 55 then it will get drilled sometime before the contract expires. So the value of the option is if bhp do farm in and drill or if the sc 69 JV drill simple as that. Seems like a clarification by the company to this effect would save shareholders alot of worry