According to KPMG, more Australian small to medium independents are spending a greater amount of their exploration funds away from Australia and it is expected that a large number of these companies will be seeking to raise capital in foreign jurisdictions, namely in the UK and North America, over the next five years.

65% of respondents to the recent 'KPMG 2004 Equity Market Survey: Independent and Mid-Tier Resource Companies' which looks at issues confronting small to medium independents as they go about raising capital for their businesses, said they would like to raise equity capital on the Alternative Investment Market (AIM) of the London Stock Exchange within the next five years.

"Given that less than 2% of respondents to the survey are dual listed on AIM, this represents a very significant trend in the way of thinking for small to medium independents in raising equity capital", commented Mr Peter Dawson, KPMG Associate Director – Corporate Finance, in a preview of the survey results at the recent APPEA Conference in Canberra.

"This is consistent with a greater trend among the respondents towards international investment by Australian small to medium independents. Five years ago approximately 25% of capital raised by small to medium independents was expended on foreign exploration, while last year approximately 50% of capital raised by the same group was expended on foreign exploration", reported Dawson.

This view was presented by survey respondents in light of the strong performance of the Australian equity markets where capital raised in the oil and gas sector for 2004 will be more than double the capital raised in the same sector for 2003.

"It may simply be recognition by the CEOs of these companies that there are preferred alternative sources of equity capital for non Australian exploration projects. Although we have not seen this expressed as a collective opinion from any industry organisations, the survey result implies that the majority of CEOs for small to medium independents are like minded in their preparedness to seek equity capital offshore", added Dawson.

"It is evident from the results of the survey that equity markets for small to medium independents are truly becoming global markets. The path to London could become well worn over the next few years."

Further information:
Peter Dawson
KPMG Associate Director
KPMG Corporate Finance - Financial Advisory Services
Ph: +61 8 9263 7224
Email: peterdawson@kpmg.com.au

Ophir Energy Company Limited ('Ophir') is a recently established international oil and gas exploration and production company.

Ophir's management and staff have a successful track record, having previously worked together in Fusion Oil & Gas plc, which had an extensive portfolio of interests in Africa and was involved in several prominent oil and gas discoveries.

Due to the past experience of the management and staff team, and the availability of a range of excellent investment opportunities, Africa will be Ophir's primary area of geographic interest, although the company is receptive to projects of outstanding merit irrespective of geography.

Alan Stein, Managing Director, stated, "Ophir has received initial funding commitments from management and investors involved in the investment banking sector, which will give the company a flexible capacity to pursue the acquisition, exploration and development of high-impact oil and gas projects."

Ophir has opened offices in London, England and Perth, Western Australia.

Alan Stein Managing Director, Perth
astein@ophir-energy.com

Jonathan Taylor Technical Director, London
jtaylor@ophir-energy.com

Peter Dolan Director, London
pdolan@ophir-energy.com

John Innes Finance Manager, Perth
jinnes@ophir-energy.com

Michael Purves Explorationist, Perth
mpurves@ophir-energy.com

Richard Higgins Explorationist, Perth
rhiggins@ophir-energy.com

Mark Sofield Explorationist,Perth
msofield@ophir-energy.com

Chris O'Hara Administration, London
cohara@ophir-energy.com

London

8 Old Lodge Place, St Margarets
Middlesex, TW1 1RQ
United Kingdom

Tel: +44 (0) 20-8538-9933
Fax: +44 (0) 20-8892-5838

Perth

329 Hay Street, Subiaco
Western Australia 6008
PO Box 463 West Perth
Western Australia 6872

Tel: +61 1300 733 597
Fax: +61 1300 733 427

www.ophir-energy.com

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