Ann: Trading Halt, page-185

Jaws is not a duster - we're flaring gas off from there as we speak. All it requires is more time to lower the water pressure, and extend the draw down cone to include more gas bearing coal in the gas production phase. It is slow and steady to avoid any sudden release of gas under high pressure that could damage the formation fracking and clog things up as the critical desorption pressure is approached - as happened back at the end of Dec last year. The recent quarterly was positive about Jaws commercial success likely being declared before the end of this year. The commentary in the AFR article of 10th Oct about the likelihood of us abandoning the Southern Cooper Basin was way off the mark imho.

$35m is a very decent capital raising for a company of our size, but is indicative of the size of the Perth Basin resource and its future value to STX, and the fact that this has been largely de-risked. This should see us right through to the commercial production of gas from the Perth Basin. If some of the money raised is also spent on Jaws and more exploration on the PB rather than on production wells and facilities then it is likely that there will be another CR before we get revenue from gas production.

It is very disappointing that the trading halt was not put in place on Friday morning, in light of the knowledge some people had of a very imminent capital raising just as the flow rates on WE-2 were released. Both announcements then could have been made during the trading halt so all shareholders were fully informed when trading resumed on Tues morning - then we could be raising at around 28c instead of 23c. Perhaps in a few years time the difference between 23c and 28c will not seem that significant. I do feel for people who bought in at 30c on Fri morning though, and I can understand the bitter taste in their mouth. Having said that, I expect that the SPP will be over-subscribed, since the $5m asking from existing shareholders is a pretty small amount - I hope the company will accept over-subscriptions rather than scale back, in view of how poorly they treated us in these last few days.

sentiment changed from hold to buy on weakness following the SPP cr.