Update, page-3

Blade2008

In the 30 January ASX Announcement:

Concerning Mahalo:

‘All three of the vertical wells drilled in the appraisal drilling programme, were completed with tubing and pumps and are on line for production testing to gain longer term flow data. The plan is to continue to slowly increase the pump speed, while monitoring the water performance and pressure draw down, in line with the JV testing plan. At the date of this report, all wells are flowing water at encouraging initial rates. Laboratory analysis of coal and gas samples obtained from the vertical core holes has commenced and will be conducted over the coming months. Early gas content results from the wells are positive.’

So we wait until the results are known.

As to the Santos takeover bid of $14.45 billion by Harbour Energy – this was rejected and kicked into touch last year.

If your question relates to whether Santos is interested in taking out COI – only time will tell but our 40% of Mahalo is worth more than the 30% Santos has of the same – so being a producer needing to secure future production – I would imagine that Santos would not want our 40% to go elsewhere.

Nothing is ‘set in stone' regarding timing – but strategically we’re sitting pretty.