DIRECTORS’ REPORT JAMES HENRY CARVER  Executive Director - Appointed 29 June 1998 Captain James Carver is a Ships Master with over 30 years direct experience in the marine industry. He was Woodside Petroleum’s first ships master, carrying out marine operations in the LNG development. Captain Carver was involved in exploration, construction and production of most oil and gas projects on the North West Shelf. He has in-depth knowledge of the industry, its needs and its future. Establishing the company in 1982, Jim pursued a “can do” attitude at sea and on shore. Under his direction the fleet grew from 1 to 15 vessels and the Base at Dampier secured for the present expansion and exiting future. DERRICE-ANN DILLON  Executive Director - Corporate - Appointed 12 August 1998 Derrice Dillon has considerable experience in management, administration and finance acquired over the last 22 years and has held a number of senior positions in Australia and overseas. From the early 1990’s Derrice developed a strong knowledge of the oil and gas industry from her previous position as a director and head of administration of Slimdrill Pty Ltd. She was responsible for the design and implementation of all accounting and administration systems, including complex databases to track information for the construction and manufacture of the Slimdrill oil drilling rigs. She was also responsible for all legal matters and the production of promotional and marketing material for worldwide distribution. Derrice took a leading role in the listing of Mermaid Marine in 1999 and has since headed up accounting, systems and administration. As Chairman of the Board of Management she plays a senior role in Mermaid’s operations. Derrice has also recently been appointed to the Seacare Authority by the Minister of Employment, Workplace Relations and Small Business as National Representative for the Offshore Maritime Industry. 27 Ar