el & c baillieu , page-10

Hey PD,

I went back and had a read of the Managing Director's slides at the last November AGM. Below is an extract from those slides that relates to Kingfisher (or the Greater Mackellar structure)

Kingfisher E01
+ First major conventional gas discovery in NSW (November 2009)
+ Large section of gas charged sands identified
+ 138 metres of gas charged sands in Ripley Road and Gatton formations
+ Up to 500 meters of additional section below TD of

Kingfisher E01
+ Extensive testing and appraisal program conducted
+ Good quality +95% CH4 gas
+ Production test (2,050-2,043.7m) – 3 mmscfd
+ Extended production test of Gatton formation (1,450-1,453m) following limited stimulation of a 3 meter zone

Greater Mackellar Structure
+ Pmean OGIP 1,312 Bcf
+ Plan to drill in 1H 2013
+ Seismic acquired November 2012, after a long wet period
+ Rosella E01 planned for 2Q 2012 to test Greater Mackellar structure



From the above, key points for me are:

a) 138m of gas charged sands
b) exploration of an add'l 500m below the last TD. (This is the Rosealla well scheduled for 2Q.
c) Production rate was 3mmscfd (ie commerical - I think but happy to be corrected here)
d) quality of the gas was 95% + methane (CH4)
e) quantity of the gas found - extensive gas bearing structure


Throw in that the 3P and 3C certified reserves to date - EXCLUDE the Greater MacKellar Structure (ie conventioanl gas), then there is NO WAY that the current share price will stay where it is for long. When Rosella spuds, I would expect the share price to be over 30cents (given points 1 to e above) - IMO.

Anyway, with AJ Lucas rig released, can someone advise when the next well (exploration well, or lateral drilling) is scheduled to spud? I can't seem to locate this info. (Did MEL mgt release an exploration program?)

I know that Rosella is later in the year.

Thanks in advance.

Mr P

(With time our fortunes will be realised)