Ann: Research Report, page-9

Motors ,

There are restrictions on use of that MacQuarie facility .

They need to raise before using it .

Whilst it might be a good time to acquire U.S. assets , I do not see the price of U.S. light tight oil recovering until 2018H2 at earliest .

Just too much in storage and too little demand for >40 degree API oil from refineries .

IMHO U.S. production is not going to dig them out of trouble any time soon .

The order of the day must be survival and getting the NT exploration underway .

As mentioned , there are large conventional enclosures including for instance the Urapunga regional high . Whether the reservoir rocks are of sufficient quality can only be determined from drilling .

Another option is to put the company up for sale . Even with $40m debt , I think it would sell for multiples of the current share price on the strength of the NT acreage and rising East Coast gas prices .