santos presentation, page-4

Using my valuation thread in MEL basing on similar companies like ICN & COI here it goes:

Using 2C + 3C resources (net to OIP is 1323.1pj):

1. Based on ICN's valuation of $0.05/GJ, OIP would be worth $0.43 per share

2. Based on COI's valuation of $0.09/GJ, OIP would be worth $0.77 per share

Using only 2C is what Grant Samuel report based (net to OIP is 243.7pj):

1. Based on ICN's valuation of $0.05/GJ, OIP would be worth $0.08 per share

2. Based on COI's valuation of $0.09/GJ, OIP would be worth $0.14 per share

The above excludes cash, so using the 2C methodology + cash (based on nearly $6.2m on latest quarterly report), the following valuations would be:

1. Based on ICN's valuation of $0.05/GJ, OIP would be worth $0.12 per share (market cap of $18.4m)

2. Based on COI's valuation of $0.09/GJ, OIP would be worth $0.18 per share (market cap of greater than $28.1m)

Note: OIP's valuation above also excludes valuation of OIP's 3 Darling Basin tenements. So OIP can be valued greater than 12c to 18c.

Advantages of OIP over rivals: main tenements are based in Gunnedah Basin where Santos/TRUenergy is dominate, Santos/TRUenergy JV has interests in PEL6, PEL427, PEL428 and a joint over 23% stake in OIP. COI also has interest in the same tenements.

Disadvantages: ICN has a "conditional" binding gas sales agreement with a Chinese company. Condition is ICN to achieve at least 2Tcf of 2P reserves in 4 years time (where they currently have ZERO). Whereas OIP does not have any GSA.

Technically OIP should be worth greater than 10c.