Health, Safety and Environment (HSE) Policy

A primary goal of the Group is the protection of Health, Safety and Environment (HSE). The Group is dedicated to continuous efforts to make its operations compatible with protecting people, property and the environment.

This policy, whose implementation is overseen by the Chief Executive Officer, governs the Group's operations and is specifically designed to:

• Comply with and exceed relevant HSE legislation, regulations and other requirements;
• Maintain and develop systems to identify, assess, monitor, review and control HSE issues;
• Set HSE objectives and targets;
• Implement mechanisms to communicate with and to obtain input from: employees, contractors, partners and associates;
• Coordinate HSE policy, including the HSE management systems of contractors, to provide a unified system to guide operations;
• Institute a site-specific Emergency Response Procedure (ERP) so that immediate actions are taken, without delay, to minimize danger to personnel, the environment and property. Emergency Response Procedures will be rehearsed prior to commencing operations to ensure that personnel make the appropriate responses in the event of emergency.

It is the policy of the Group to consider the health and welfare of employees by maintaining a safe place and system of work as required by the Safety, Health and Welfare at Work Act, 1989.

The Group closely monitors activities to ensure to the best of its knowledge there is not potential for any such breach. There have been no convictions in relation to breaches of these Acts recorded against the Group during the reporting year.

Gulfsands' health & safety record since it became operator of Block 26 in 2005 has been exemplary. Since formal safety records first began to be kept in April 2006 there have been no lost time incidents.