Killanoola Field Trip, page-4

Just so that all interested are aware we will be heading off tomorrow morning to the Penola region of South Australia. We have decided to focus our initial investigations at the Killanoola project as we believe that if initial estimates are remotely correct that this project will have a markedly greater impact on Sp. for reasons as followed.

Red Shy Energy is set to receive payment for their portion of the Innaminka project which is projected to have an output of some 20mmcfpd of which ROG will receive reimbursements for 4mmcfpd over the proposed 5 year lifespan of the project. An amount in itself, based on today's gas price of roughly $19.40 per cubic ft. On amount based on the 5 billion shares outstanding yields a book value of roughly 0.005c/Share (less operational cost). Bearing in mind that ASX listed mining/oil companies typically trade at a multiple of 4 to 5 times. Which should set post-production at share price at roughly 0.20c per share.

However, we believe that the project at Killanoola based on a PIIP of 135 million barrels of oil @ $75 per barrel yields a book value of roughly $2.00ish (*dependent on well flow rates)

As always DYOR.. stay tuned!!!!!