PetroHunter serves as Operator of the Beetaloo Basin, although the joint operating agreement provides for
a joint operating committee and for substantial direct involvement by the Company’s managerial,
technical and financial personnel. The Company and PetroHunter are subject to certain drilling
commitments on the four exploration permits comprising the 7,000,000 acres. The commitments require
the drilling of seven wells during 2009, five wells during 2010 and three wells during 2011. In addition,
the parties must complete seismic evaluations on certain permits. The cost of all such work is borne
equally by the Company and PetroHunter.
