Ann: Divestment of Non-Core Assets and Exploratio, page-9

re: Ann: Divestment of Non-Core Assets and Ex... Divestment:

Ok, so we sold our UK and Suriname assets for the grand total of A$200k.

The UK ones concern me a lot considering our previous snouts in the trough paid A$4m just under three years ago and the oil price is higher than it was when we bought them.

I'm also curious about who we sold them to, anyone know anything about the new owners? Did we sell them to someone's mate? If I ever get the time I might have to check out these people for links to KEY directors/personnel:

http://angusenergy.com/about-us/principals-and-staff

Suriname, considering that it didn't seem to take up any of our management time might it have been worth holding onto until the latest drilling was complete and we knew what we were selling? Three wells drilled in a five well drilling program and they all had oil.

Tanzania, no comment at this stage as there's no new news.

Italy, are they serious? "The Company has now been notified that its three applications for the Elba and Lampedusa areas have been rejected". They were rejected last year, before KR jumped ship. Announced to the market in the June 2011 quarterly report.

The Future:

EP438, looks like Cyrene #1 will be drilled almost on top of Hedonia #1. Maps shows minimal structures of much interest.

EP448, we'll have to wait and see how NSE's Nicolay #1 goes to give us any indication of the potential of our nearby exploration permit.

EP437, we've drilled two wells there already with a poor showing. I won't hold my breath on any new drilling doing any better. I wish I could find the article I'd read about the North Perth Basin before we drilled the last two wells, it wasn't very encouraging for EP437.

Interesting that KEY & EGO are claiming to have 50% interest yet CalEnergy's website still list them as having a 55% interest and I've seen no confirmation that CalEnergy has actually relinquished their interests.

Anyone else find it strange that CM & KM propose to drill Waugh #1 which appears to be a smaller structure than either Dibbler or Dunnart yet they hilight that there is this "large Triassic structure mapped to the north"? Why not drill that structure first?