Ann: OBL Attains Variation of Permit VIC/P47 Year 5 Work Program, page-13

With no drilling program.

You would expect OBL to be trying to create shareholder value on farming out.

Gippsland sorted with ownership and royalty - farmout ready - Attractive gas assets
Cyrano sorted with ownership and royalty - farmout ready - Difficult with current oil prices
Backreef - Farmout ready and can drill 2015 - Easier to farmout as ready to go and rigs cheap with no

Derby block - ownership not sorted - Attractive oil and gas assets - Can not farmout until ownership sorted. However, ownership being sorted could be a transaction that could add a heap of value to OBL. Remember REY or whoever else can only come in if OBL let them under OBL terms. The grapevine says BRU is walking at 31/12 and that is why BOPL has tried a deal with REY. 100% Would be nice.

The deadlines are all put out for drilling, so OBL has very little obligation in 2015. I think OBL are now in a situation to create shareholder value very soon with farmouts. If they do not perform, I would expect OBL to cut company expenses as there will be no drilling programs for 2015.

As always we sit and wait. Merry xmas.