Ann: Company Update , page-4

Hi Billyandpop,

First impressions are that this is great news. The
Kangaroo Sandstones (KS) must be acting as a storage
reservoir for the underlying gassy Walloon Coals as per
below:



Given that the KS can be so thick (300m), this could
equate to a substantial addition to the existing resource
in PEL457. If the permeability is good then the gas can
flow into Talma and future wells without further
stimulation which is a huge cost saving when considering
production. Look forward to the lab results to confirm
their 'potential resource'.

OK, the mention of a small scale Power Station is
fantastic news for ROG holders BUT once again the big dark
cloud that shadows us is the Companies cash position
(unless they plan to build it from LEGO blocks?). Having
said that, it's great that they are keeping us in the loop
with what they are thinking. I know the exact location of
the Talma well and the power grid is just on the opposite
side of the road so the infrastructure is close by.

All in all a good announcement but need to clear up their
intentions to inject cash into the Company or as some have
eluded to, get the Oppies 'in the money'. That way at
least some market confidence that the future is viable.

Also, if Gazman is around I would appreciate thoughts on
the shallowness of this 'potential reservoir'. Is it
possible that the seal for the KS is simply the Grafton
Formation??

Have a great one,

Gaspew ;)