notes from meeting with md, page-6

re: notes/sushi High probabilty when the hedge position effectively halves at the end of June, they will consider the use of put options.

By purchasing out of the money put options they can protect their income in the unlikely event of a big collapse in the US$ price of oil (well the Tapis price anyway) for a relatively modest outlay.

This financial year the hedge effectively represents a lost opportunity cost of around A$10m. By outlaying only A$1-1.5m they have downside cover below say $40 bbl, but keep all the upside.(Of note the A$ price is around the $70 mark at present! ) Opex is running about A$30 bbl including head office costs.

Cheers,TAS