Ann: Santos Proceeds with Stage 3 of Farmout, page-12

Hi Feral

If STO wish to double natural gas sales by 25 then the NT is a pretty good idea. It looks like they aim at getting a chunk of that capacity from McArthur and Southern Amadeus Dukas. This could be a 1-2Tcf or (Approx 1000-2000PJ) plus a lot of He. @30% this would yield CTP 300-600PJ NG plus a lot of He. This resource added to other finds would take CTP 20 year lifecycle production above 1000PJ and on this CTP should easily be valued somewhere between $1 and $2 according to my back of envelope calculations.