Outlook

With exciting exploration programs underway and further opportunities being explored, Gippsland Offshore is rapidly growing.

The PSA with the Jamaican Governmement was signed in February 2006 and we have completed our four year exploration commitment, including large seismic and FALCON® surveys leading to prospect definition within the first 12 months.  The basin has been mapped as having the potential to host significant volumes of hydrocarbons and we are in the process of bringing in a partner to drill the mapped prospects.

Believing we can add significant value in understanding the prospectivity of the Lamu Basin, Kenya, the FALCON® technology has been used in conjunction with newly acquired seismic to better map the leads and prospects in this poorly explored L-6 block.

The Aquitaine Basin project in France will also be an exciting test of the FALCON® technology in a mature oil and gas producing province that carries the least exploration risk of Gippsland Offshore's projects.  The cost of testing identified projects and the potentially short time frame to bring any production to market is key to our interest in the area.

The company is also awaiting final award of a frontier exploration block offshore Madagascar which is an oil generating province with enormous promise but poorly mapped.

Always looking to bring new projects into play, we hope to have some exciting news to announce in the coming months.

Last updated: 30 September 2007