magic of methane, page-28

Mrs_Peel,

Thank you for passing on the points of your conversation with Greg of CTP. The following aspects are of much interest to me:

1. that British Gas will be in charge of the next lot of field work in the Pedirka Basin;

2. that British Gas ,which currently holds only 20% of the Pedirka Basin tenements in conjunction with CTP 80% would express such keenness and interest. This is at a time when we all are aware of British Gas moving rapidly to increase its equity in Qld CBM developments.

Mrs Peel it appears to me that our John H is at a final stage of negotiations with BG and that he will be making an announcement to us very shortly. It also seems possible to me that BG and CTP have evolved a formula by which BG will earn more of an interest in the Pedirka tenements as they farm in.This will solve any financing problems for CTP.

Again, thank you. Conix