coal to gas, page-24

I think it is fair to predict that there will be greater than 200BCF though?

There is little doubt in my mind that we're probably close to 300BF than 200BCF based on the data to date, but I'm not a qualified geologist. So until such time they release the reserve numbers, I will simply be using 200BCF for valuation purposes. At least if there is going to be a reserve downgrade or the reserve is below my expectations, my downside is limited.

The other thing to bear in mind is that they are only planning to issue reserves on a per well basis. So even if they think there is 300+BCF sitting underneath there, they will probably only release the 2P numbers that has been proven up by the wells drilled to date (and with some production history behind them). So I hope you guys aren't expecting an announcement of 200-300BCF first up. It will probably be closer to 100BCF to begin with, and then subsequently increased as they drill and successfully prod test more wells in different parts of the field.

Again, this is fine with me. Slow and steady progress is better than speedy and reckless. This will benefit us in the long run as it will ensure expectations are properly managed, and that field recoverables are maximised.

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