$27 million for pep 11 drilling, page-17

harry,

This has become a very interesting game. I think most here are unaware of what is really happening. You need to have a close look at the directors of the various companies, the SPP's, the dates of the announcements and see how they are all inter-related. They are dangling a carrot in front of everyone's eyes that has grown from 1.3Tcf in 2003 to 16.3Tcf in 2009. Quite amazing actually.


Ask yourselves why did Daltona Energy Corporation walk away from it after selling its 50% share in PEP 11 to BUY back in 2002?


Why did Electro Silica Plc in 2004 who were to earn a 75% interest in PEP 11 for just doing the seismics decide after they saw the results to walk away from it?


Why does BUY offer 85% of the lease to MMR/Advent for just drilling a single hole?

Answer: Because they know there is nothing there! Would you give away 85% of a 16.3Tcf field? You wouldn't give away more than 10%, I know that's all I would give away but no, BUY are giving away 85% for someone to drill a single hole.

Imagine you owned a one acre block of ground and you placed 16 gold nuggets in the ground and you said to someone come in with your metal detectors and see if you can find peculiarities and in the meantime I will sign a contract with you that will give you an 85% interest. You wouldn't do that because you knew they would find something. So BUY is saying come and drill a hole in an area that would cover 1/8th of Tasmania and we will give you an 85% interest.

Put simply, if BUY knew after 10 years that there was any gas there, anywhere, why would they give away 85% to someone to come along and drill one hole.

Ok, another angle, can I get an oil company to come and drill a hole in my backyard without any seismics and if they strike oil I will give them 85%. Actually, no, I will give them 95% because I know that there is is no oil in my backyard.

Do you get my drift. The lease PEP 11, which has still to get environmental clearance to drill even if they can raise the cash, even if the lease is extended, even if the sophisticated investors buy the story, even if the rig can appear on the horizon has next to no chance of finding anything of a commercial nature. If it were not so then why does BUY want to give away 85% of a lease that would cover 1/8 of Tasmania to someone to drill a single hole, somewhere.

I'll could tell you why but you have to think it out yourself.

This is not about you or me.