Ann: Progress Report , page-2

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    Beach Operated Offshore Australia Program - South East Australia

    Fermat-1 is at a depth of 3585m. The current operation is conditioning hole in preparation of running wireline logs. Interests in Fermat-1 are
    Beach Petroleum Ltd, 50%, Essential Petroleum Resources Ltd, 25% and Mitsui E&P Australia Pty Ltd, 25%. Note that Essential is currently in default of the December 2008 cash call requirements for the Fermat-1 drilling operations.
 
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