Ann: Quarterly Report - 30 September 2011 , page-2

Qterly much as expected.

Much to look foward over the comimg year with 2 definite drills and maybe a third.

WA 323/330.
OXX 25% free carried, Santos is to drill the Winchester prospect in 3rd Qtr 2012. Form previous drill seems there is gas there more a question of how much, whether it is commercial.
Success would be a company maker for OXX. Relatively low risk drill.

WA 384
Shell to drill Palta 1 by August 2012.

PEP 51906
Depending on seismic OMV likely to drill in this permit. likely to be the Matuku prospect.

OXX with OMV has built a large acreage in Taranaki. OMV seem pretty serious on finding something. They have producing asset in Maari.

Likewise OXX has built large position in Southern Bonaparte
Basin.

Cornea WA 342 p

OXX 18.75%
albeit described as complicated,a 60mmbbl contingent resource. Could be valuable if developed.
Note MOG hold 22.375 of this permit.

Exmouth Plateau permits looking now of little value.

Dividend 4c. 9m out.
10c call on OXXCA 7.5m in. Largely cash neutral. Just a bit of smoke and mirrors to help Geoff pay the call on his CA.

31m cash plus 10m from holdings (primarily from 43m CUE).

If we look at end of year position it will look something like this.

31 cash + 10 (cue at current price) - 2m expenditure - 9 dividend + 7.5 CA's = 37.5.

151 OXX.
75 OXXCA paid to 15c.

Fully diluted 226m = 17cps with still 10c to pay on the 75m CA's.
Speculate on the possibility of OXX and MOG, given their common interests and common shareholders at some stage???
MOG seem broke!

Picture is as good or better than most penny dreadful oilers on the ASX. While some don't like Geoff's grip on OXX the flipside is that he has a large vested interest and is not about to fritter it all away as we have seen with so many small oilers.

E & O E.