chairmans letter to shareholders

Dear Shareholder
I am writing to give you a brief update on the Company’s forward plans.
Drilling operations for two high impact offshore wells in which we are to participate, are expected to commence in less than two weeks. Shareholders have received a large amount of material from us in the form of expert reports and valuations – so much so, that the real essence of what we are planning can be lost.
It is only by drilling wells that discoveries are made and lasting wealth created. With shareholder consent (due on 14 December 2009), Moby will soon be drilling these two wells, with a third high impact well (Artemis-1) expected to be drilled during 2010.
With shareholder approval, Moby will have a 26.4375% interest in the Braveheart well in WA-333-P. The well’s target is a potentially large hydrocarbon accumulation. This is explained in full in the reports forwarded to you. Success with the drill bit at Braveheart could have a profound and transformational financial impact on Moby.
On the same basis, Moby will also have a 15% interest in the Artemis prospect within WA-360-P. The farminee and permit operator, MEO Australia Limited (ASX Code: MEO), recently raised capital and said that it “will underpin the financial commitment involved in the planned exercise of the drill/drop option for WA-360-P”. The Moby Directors are confident MEO will commit to drill the Artemis prospect at their cost.
In this event, Moby will be entirely free carried through the drilling of Artemis for its 15% interest.
Artemis also has the potential to have the same kind of profound and transformational financial impact on Moby. MEO, in an ASX release made 27 November 2009, made various comments about the potential impacts on MEO in respect of MEO’s expected 20% interest, if Artemis is a discovery. While Moby has a 15% free carried interest in WA-360-P (i.e. less than MEO’s expected 20% carried interest), it will have fewer shares on issue than MEO, following our capital raisings. Nevertheless, the value proposition made by MEO can be applied to Moby’s interest.
Finally, Moby is soon to participate as to 22.375% in the drilling of Cornea-3. While success at Cornea will not have the same transformational impact as is possible from the Braveheart and Artemis wells, participation in Cornea does provide Moby with the scope for being part of a future oil field development.
Moby needs to raise funds to participate in the Braveheart and Cornea wells. We are pleased to advise that the pro-rata share entitlement issue will now close on Monday, 14 December 2009. If you have mislaid your Rights Issue document or entitlement form, please contact us on (03) 8610 4700 for a replacement.
Oil exploration is a high risk business, but when the prize is as attractive as represented by our package of drilling interests then, in our view, those risks are worth pursuing. We encourage shareholders to support the Company by taking up their entitlements and to participate in a most exciting upcoming drilling program.
Yours sincerely
E.G. Albers
Chairman
4 December 2009