40mcf estimate and petrocci increases stake , page-26

psi, management DID tell the market. It was in their conference calls.

G-3 was not a failure. Its been talked about a lot on here in the past, but the initial programme was probably not explained well enough by RIA and the first well location for G-3 was designed to test the P10 upside which didn't exist, the 2nd sidetrack was to suspend the well as a producer closer to the P50 known reservoirs.

As for the 3rd well, it was clear on the conference call that RIA were not happy with the Monitor and the 3rd well which was due to test Chouette prospect was then deemed to not be able to drill deep enough to fully test the structure after re-assessing the 3D. This was not only stated in the conference calls but also in the ASX announcements. They then decided that due to not being happy with the rig and it not being suitable that the best idea would be to release the rig and save the cash for the rig in Q1.

As for funding, they have already stated what their funding objectives are, they will have around $20-$25m left after this drilling programme, and then they will have the $10m back in rights from Petroci, the rest they have stated that they will get from an RBL (following the new CPR) and from farm outs. There has been no mention of any CR's by the company so in terms of dilution, there is not as great a risk of this as there are with other stocks.

As for not flow testing, why flow test when there is no need and they want to save the cash.