Ann: Investor Roadshow Presentation, page-47

Barney

im just a dumb geo mate .......and the point I was making is that most of the corp acquisitions have not added value for SH.......the true measurable determinant of value add in E&P is "finding cost + dev cost" per boe of discovered reserves/resources ......

paying "fair value" doesn't add value .......

stokes - look at the NXS deal ........then chk the costs re abandonment for LT .......the real reason they are their is the F-LNG with Shell ......not some b-grade gas asset in Gippsland with capped upside (GSA with sto) ....

for BPT and DLS - it is "clear" that the Napp trough has high co2, practically nil liquids ......

it is also clear that Patch trough is shallower, has some liquids, low co2 and smilar $$$ per well ....ie will be eco at forecast fwd gas prices ......
it will still need the "r&d" as far as well / completion / fracc designs !!!!!!!!!!!!!!!!!

both co's will need to go throu the "how do we get it to market" issue .......and (imho) are in a race with CTP as backfill for lng trains ........

the alternative pathways for both co's would be (have been) - utilise the c/flows from the CB to "discover" medium sized resources .........outside of the CB ......bpt was sold a pup from anzon, and expanded intl .......wasted some $$$......this is a dirt selection versus risk question....

as you know - its a 2-5 yr process to get the dirt / acquire data / wortk it up / manage risk (farmout) / and then drill the thing - and then work out if you have anything or not......and then timeline to any developments ...

stokes would be well aware of the potential within each co's portfolio, and timeslines .....he "may" have underestimated fwd capital requirements ...

at the moment - both co's are an OK "call option" over oil prices .......

your comment of " the acquisitions that both companies have made is the very thing that is keeping them afloat and viable, whether making lots of profit or not" shows exactly WHY they are in this situation ......................return on capital employed .....

hopefully that is usful
rgds
V_H