Ann: Arrowsmith 2 Update Presentation Sydney 7 an, page-7

re: Ann: Arrowsmith 2 Update Presentation Syd... Congratulations to ADE/BPT on getting their Holdfast shale gas well to flow gas from a vertical frac at an astonishing 1.8 mmcf/day. And congratulations to SXY on their Vintage Crop Shale Gas drill which will prove to be a winner.

But also, big congratulations to NWE for pioneering the West Australian Shale Gas Industry by attracting a Fortune 500 heavyweight giant Bharat Petroleum into EP413 and completing a very successful Arrowsmith*2 well.This was a very smart move on Bharat's part. ( They could have quite easily gone to the USA like their competitor Reliance did. )

The Golden Age of Gas is upon us ( see IEA reports ). Gas must be used as a transition fuel in the place of oil. The price of oil is killing the world. Gas is half the price.

Tonight Chesapeake Energy announced a $1 billion infrastructure program to provide CNG to the USA market. Initially it will be aimed at the heavyweight truck industry which consumes over 2 mbpd of oil. This has been staring us in the face for so long. Well done Chesapeake. This sort of activity will follow in Australia.

A lot of the hard work has been done at Arrowsmith*2. Management are well pleased so far. The proof of the pudding will be the gas flows. If they are anything like those produced over in SA for BPT/ADE then NWE are simply going to become another company.