Just A Thought....., page-7

Santos has to be in the frame to buy our 40% share of Mahalo especially as they will be focussed on replacing falling production from Fairview which has dropped to 445TJ/d as measured in June 2018 which is a fall of approx. 10% from its peak 12 months ago.

Santos will not want to lose market share and will take all steps necessary to secure it's future position.

Only a few weeks back Santos firmly rejected the T/O Bid from Harbour Energy which is indicative that they are focussed on the medium to long term and to achieve their objectives as a producer - they need new gas plays which are ripe for development or in this case a greater slice of the action taking their 30% to 70%.

No rush from our side - if they don't want to pay the price for our slice - the closer to production we get along with topping up those 1P 2P figures - the more the asset is worth.

A difficult position for Santos - because on one hand they must be delighted that the horizontal drill and resultant gas flow rate exceeded all expectations which added some serious value their 30% share - but on the other hand COI's 40% share has increased in value on a pro-rata basis which must smart when you were hoping that a low ball offer might tempt.

IMO it's not about whether Santos wants our 40% as that's a given - it's all about what we are prepared to accept should we trade our share of future production for an early settlement - plus there must also be others who would like to take our position.

As an investor - future low cost production should provide dividend yield whereupon an early take out should fund the company for Galilee and give investors an immediate return - either way is attractive to me...

All looking good...