sellers getting gobbled up, page-31

I had a long chat to the company secretary the other day,and can report the following.

1)TEG was never purchased/setup as a production company. The primary focus of the business was on exploration and they are yet to start this process. The production they have achieved thus far has been a bonus for the business.

2)They believe that after a workover of well A2( commencing in Q1 2011)that this well has the potential to flow more gas than all the current production wells.

3)He mentioned that another group in the same area had just been awarded the same renewal and he expected that TEG would be awarded thier PASE renewal but he could not speculate on when that would be. He also noted that the current revenue split "should be" as before but this would be negotiated once the renewal was granted.

4) I asked about the demand for gas in the area and he noted that there was still an excess demand for gas and they could easily sell all that was produced.

5)They are very excited about the potential to discover more oil and gas in the area, and they believe that once PASE renewal in granted the market cap to be much higher than it is now.

Hope this helps all holders.