Chairmans Message

Dear Shareholders,

Eden Petroleum Ltd, an Australian public company limited by shares, aspires to be the world’s first "ethical oil company".

Eden has focussed, and will continue to focus, on petroleum exploration and development in countries and regions where the local people have been economically and politically marginalized.

Eden aspires to substantially improve the lives of marginalized people, thus turning what has been referred to as the "oil curse" into an "oil blessing".

Eden has incorporated certain core principles into its Constitution. Those principles are as follows:

• Eden has crafted a Code of Conduct which has been incorporated as a paramount component of the Constitution of the company.
• Eden has crafted an Ethical Charter which has been incorporated into the Constitution of the company.
• Eden shall at all times endeavour to incorporate ‘global best practice’ into all aspects of the operations of the company.
• Eden has committed to employ the greatest care in preserving the environment whilst maximizing royalties for local and regional governments.
• Eden has put itself under an obligation to train and employ local tribal/indigenous people.
• Eden has obligated itself to at all times avoid flaring waste gas, but rather to make available waste gas from producing fields for the production and distribution of electricity at little or no cost to local/tribal groups.
• Eden has obligated itself to treat connate water (oilfield brine) in order to contribute to the supply of potable and irrigation water, rather than contaminate groundwater or surface water.
• Eden has imposed on itself environmental obligations that will ensure the lenses between pockets of oil are not fractured in a way that will contaminate adjacent groundwater. Eden will do this by employing more and better analysis, fewer underground explosives, and greater reliance on pressurized fracturing which is more time consuming but is much more sensitive to, and far less likely to contaminate the groundwater.
• Eden will assist in realizing equitable and ethical standards in regions where it invests by creating and gifting shares in producing resources to the relevant players from that region. Eden will do this through the creation of four unique classes of shares for each region in which it develops petroleum resources. An equitable share of the revenue from the petroleum resources in that region will flow to the holders of these special classes of shares as follows:
  1. Repatriation Class shares will generate proceeds from producing assets in that region which flow to refugees who wish to return and invest in businesses in their country of origin. These shares will have vesting provisions that require the refugee to invest share dividends to assist in rebuilding their community of origin.
  2. Indigenous class shares will generate dividends from producing assets in that region which flow to the "tribal/indigenous" groups from the region, and who are still living in the region in which the producing field is located. These shares will have vesting provisions which are tied to the education, health, and preservation of indigenous customs in that region.
  3. Cottage class shares will generate dividends from producing assets in that region which flow to women from the region who wish to create sustainable cottage and agricultural businesses.
  4. Sovereign class shares will generate dividends from producing assets in that region which flow to the (new) sovereign government that arises from the conflict zone. These shares will generate wealth, through both dividends and the sale of shares, for investment in a "Sovereign Wealth Fund".
     
     Eden will always endeavour to secure an undertaking and warranty from the national, state and regional governments in an exploration area that no human rights abuses or discrimination will occur as a result of Eden’s oil exploration and development in the region.