4 Gap Woodside Petroleum has announced the signing of Memorandums of understanding for substantial gas contracts to a range of companies planning to establish their production in the Pilbara. At the time of writing this report, firm Letters of Intent were also foreshadowed for substantial increases in LNG production, specifically to Japan and prospects are high for further export sales to China, Singapore and India.  Providing marine support for such expansion has been our principle source of earnings, but Mermaid will enjoy a larger and more diversified income stream once development of the Base at Dampier is completed. The project, demonstrated in more detail later in this report, will revolutionise our Company and drive significant changes in the way offshore producers are serviced in the North West of Australia. Coinciding with a start of Base construction, we were successful in attracting Mr Mark Bradley, formerly Managing Director of Clough Offshore, to join us as Mermaid’s Chief Executive. As reported by the Age newspaper, our new Chief Executive has put his money where his mouth is, offering a personal investment of $2 million for equity in our company. Mark has had an extremely successful career with McDermotts and Clough Offshore. He will now drive the development of a much stronger engineering capability at Mermaid, through which, whether in joint venture or alone, we intend to be more closely involved as direct participants in North West Shelf work. Immediately following Mark Bradley’s decision, his old employer, Clough Engineering, also expressed a desire to become a shareholder, subscribing $3 million for new equity. The influence that the direct involvement of Mark Bradley and Clough Engineering will have in our company’s future should not be underestimated. At this time when we welcome Mark as a Director and shareholder, we are also pleased to announce the appointment of Mr Richard Reid, finance Rich in gas, the region is rapidly becoming Australia’s powerhouse and the focus of new resource processing industries. In a statement made in only August this year, the Shell Oil Company identified gas as that Company’s premier future fuel, due to its high environmental qualifications and portability. The Federal Government, also recognising the environmental advantages of gas, has identified that liquified natural gas in particular, as a greenhouse solution rather than a problem and has effectively exempted the gas industry from Kyoto protocol restraints. Mermaid Marine made great progress during the year to 30th June 2000, even though trading reflected low levels of activity in the North West. Prospects over recent months have rapidly improved, with a great deal of large project work in prospect. The Prospectus concept of building our business within the triangle of oil and gas reserves found between Timor, Exmouth and Darwin, is proven and has become even more relevant.  CHAIRMAN’ S REPORT