Ann: Investor Update , page-5

Alright, finally some time to sit down and write a few notes on OXX. Then I lost the entire post because my computer wanted to do a window update! Talk about frustrating, so here we go again

First things first - EV

Tinker: OXX & OXXCA
Share price: 26c
Fully paid OXX: 151,204,399
Partially paid* OXXCA: 75,201,909
Total shares on issue: 226,406,308
Fully diluted market capitalisation: $58,865,640

Cash, investments, uncalled capital & receivables#

Cash $24,000,000
Investments $14,000,000 (CUE & MOG)
Receivables $7,000,000 (Santos farmin)
Uncalled capital 31/12/11 $7,520,191
Uncalled capital 31/12/12 $7,520,191
Total $60,040,382

EV: negative $1,174,741

Now what do you get for your negative EV of $1m...

Dampier Sub-Basis WA 323 & WA 330
This permit has proven hydrocarbons and is subject to a farm in with Santos who are taking 75% and leaving OXX with 25%. This is in return for reimbursed back costs of $7m, a free carry on additional 3D seismic and one well.

The Winchester prospect is large with scope to be liquids rich and is on the same tread as the recent Zola discovery (also by Santos). Drilling is expect in 2012.

Check out the most recent presentation. The permits is in elephant country!

Taranaki Basin - PEP 51906
OXX recently picked up this large permit which runs between Maui, Tui and Maari. Not suprisingly this was quickly farmed out to OMV. OMV have reimbursed NZ$1m, are funding 3D and 2D seismic over certain prospects and must commit to a well by November 2012. OMV are funding all costs of the permit and OXX's 100% share will reduce to 35% if OMV drill a well.

What a partner to snag in OMV. They have 69% of Maari, 10% of Maui, and 26% of Pohokura, all situated in the taranaki basin. They are huge operators and have infrastructure to tie in any discoveries quickly.

It is also interesting to note that in CUE's most recent presentation (5% of Maari) that they have identified a prospect called Maari South. I wouldn't be surprised if the OMV lead joint venture drill a few more wells in 2012/13 including Maari South, may be a few more production wells in Manaia and while they are at it one for OXX.

Blackbird & Hornet - WA 329 (OXX 100%)

These prospects really blind-sided me in the most recent presentation. Although it should be noted that OXX have lodged an application for renewal which is not yet granted.

However, these are very exciting prospects as they sit right on trend of some very nice discoveries (Zola). OXX state that the farmout process is attracting substantial interest and is well advanced.

They are talking multi TCF for each prospect, with associated condensate.

I'd like to see Santos build in the relationship they already have with OXX and farm in to this permit, but we will see.

Cornea WA 342 (OXX 18.75%)

There have been a few well drilled which have encounter oil and OXX are talking a contingent resource of more than 60mboe. It isn't a straightforward discovery.

OXX are currently discussing a way to develop the field and I would expect they will farm down their share for free carry on further drilling.

More to come later...Shell, CUE, Boneparte Gulf & OXX vs OXXCA.


*partially paid shares - 5c paid, 10c due on 31 December 2011 & 10c due on 31 December 2012.

#liquid assets taken from the most recent presentation dated 9 June 2011