nuenco management statement, page-4

Lets hope that shareholders and the like are interested in discussing the Company's advances over the last 7 months.

Since joining, the Company now has a productive well (Jumonville #1) that is delivering around A$75,000 per month in net production revenue. We are expecting the 3-13 to be online shortly along with gas production from Jumonville #1 which should increase net production revenue to ~$100,000 per month.

Our running costs are around $50,000 per month. This is one of a few exploration Company's on the ASX that are cashflow positive and we have adequate funds to meet the current development capital.

If we achieve success on the Acosta well and Jumonville #2 the Company's revenues should climb to A$250,000 ($3m pa) net per month at current energy prices.

More importantly, if we complete a reserve on the Bullseye project (incl camerina, miogyop and cib haz) Nuenco's 5% share is estimated at 1.65 mmboe (before royalties).

1.65 mmboe x $30 bbl is US$50,000,000 or A$75m. You can use whatever $ bbl to come up with your own estimates.

Clearly, there is significant upside in this one asset alone, plus the value in the Californian interests.

Regards

Mark