"The phase drilling and testing will influence the unitization negotiations that have been under way, and I would think that we will hear about this issue again in the new year, after the Phase 2 announcement. F1 has probably weakened FO's hand, but it has not, in anyway, killed the Mako project."

I think that from MOL's and Falcon's point of view that they will both be working hard at keeping Exxon moving toward phase 2 as well. The question will be at what cost and when when you consider Falcon's weakened hand? We probably won't hear anything from Exxon, either way, until late January and if they move forward to phase 2 the terms will probably be different.

The next question I have for the board is how low do we trade down to before any kind of good news can give us a bit of price appreciation? There will be a dearth of news coming from the Mako and it is far too soon for the Karoo, so I am wondering if there is anything new we could hear from the drilling in the Beetaloo that could propel us upward from here? The recent Scott Ryder report doesn't seem to have impacted the share price at all, so is there more drilling results coming from the Beetaloo that could help propel the Beetaloo towards some sort of JV deal anytime soon?

Regards Paul