Ann: Whitebark Takes Control of Warro, page-7

DM seems to have a more commercial approach than recent predecessors.

It appears that the Canadian operation, though small, has a positive cash flow and will be profitable which can only get better with the upwards trend in oil prices. WTI up to US$74/bl which is the highest for a few years.

Eventually Xanadu will be able to do their 3d seismic and commence drilling again which will reignite the excitement that saw WBE's SP spike at 1.9 cents.

With Warro WBE now inherits about $50m of expenditure from Alcoa which greatly increased knowledge of the field. The time will come when Warro will be economic with horizontal drilling and smart water management. Last time this looked like a possibility the SP was over 6 cents. Just a shame they relinquished the Dandaragan prospect but in the short term that saves money.

Plenty of upside with WBE in my view, but I am up to quota in my portfolios.