HIGHLIGHTS Salinas Basin: North San Ardo: • Sales revenues up 218% on last quarter to US$7.3 million and expected to further increase next quarter. • Production (sales) of 66,267 barrels, an increase of 135% over last quarter. • Operating costs per barrel substantially reduced to less than $10/bbl with higher production volumes and improvements in overall plant efficiency. • High activity levels at NSA with four horizontal production wells completed during the quarter in addition to further production facility work. Paris Valley: • Revised agreement signed with Nations Petroleum to allow acceleration of field activities at Paris Valley. • Title work completed with the necessary curative matters currently being addressed. • Drilling locations being finalized with permitting and long lead items being acquired for anticipated commencement of drilling later in 2008. McCool Ranch: • Temporary facilities installed to allow Salinas to commence long term, high fluid volume production test. Two original vertical wells and the horizontal well drilled by Salinas to be tested over the coming months. New Ventures: • Additional leases acquired by Salinas covering over 10,000 acres in the Salinas Basin including a lease interpreted to contain an extension of the giant San Ardo oil field. Corporate: • 2007/08 financial year sales revenues (accrued basis) of US$12.8 million. • Debt free with cash on hand at 30 June 2008 of A$6.1 million, with June sales revenue of US$3.5M received during July. • Mr. David Bradley appointed as non-executive Director on 29 April 2008. • Share buy-back continuing with 1,643,232 shares acquired up to 30 June 2008 for $590,417 at average price of $0.36 per share
SAE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
