In late August, Oilex as Operator for the Joint Venture, was advised by the Timor Sea Designated Authority, the governing body of the JPDA, that the bidding group consisting of GSPC (25%), VIL (25%), BPCL (25%) and Oilex (25%) was the successful bidder for application block JPDA 06-103. The block was offered in a competitive bidding round that closed on 26 May 2006. The Production Sharing Contract ("PSC") was signed at a ceremony in Dili, Timor-Leste on 16 November 2006. The effective date of the PSC is 15 January 2007.

The Timor Sea Designated Authority was created on 2 April 2003, pursuant to the Timor Sea Treaty between the Governments of Timor-Leste and Australia. The role of the TSDA is to administer the Joint Petroleum Development Area (JPDA) on behalf of the Governments of Timor-Leste and Australia.

JPDA 06-103 is located to the east of the Laminaria, Corallina, Kakatua, Kuda Tasi and Elang discoveries/oil and gas fields and to the north of the Bayu-Undan gas condensate field in the northern Timor Sea. The JV has acquired an extensive seismic data base and is planning to acquire a new seismic survey later in 2007. Drilling is anticipated to start in mid-2008.