Ann: Letter to Option holders , page-13

My dear languishing Maestro KIWI.
How was your sojourn in the cyber wilderness?

I composed a brilliant post for you yesterday and somehow it disappeared without a trace. Bah!

So I'll try again.

In the mean time you've been talking to Mr Wing and yesterday I was talking to MrRG! A most timely coincidence.

He kindly returned my call from his cell and I asked him about the front-page feature in the local rag (Clarence Valley Review) where he was spruiking the power station again and its location between Rappville and Whiporie.

It has certainly pleased the locals;even the troublesome Green candidate (previously hostile to everything but wind and solar) made supportive cooing noises.

You and I share a puzzlement over this PS and the defined location had me even more bewildered (hence my phone call to him) in that MEL's Thornbill wells are just off the Summerland Way at Whiporie; and Rappville itself is going to be drilled.

Strangely he appeared not to know of Thornbills 1&2!! and explained that ROG's Talma wells would supply the PS and feed the electricity into the grid (which runs north-south between Grafton and Casino) and is also located on the Summerland Way.

So we now have MEL's Casino located 30MW RVPS approved and proceeding and 40km down the road there is going to be another bigger 200MW one which will satisfy electricity demand from Coffs Harbour to Byron Bay!!?? He was even quoted as seeing a 2 year time frame as feasible! The little matter of finance for this project was not discussed.

What is being conveniantly ignored is MEL are at the feasibility study stage for a 200MW NRPS (location undecided) which really would satisfy all that demand; and ROG's gas could supply it. This could be what he is referring to but doesn't want to publicly acknowledge. His comments could be part of a public relations campaign to gather local support.

We talked about the Kangeroo Creek gas which he said migrates up from the Walloon coals.(MEL are having another look at this in case they may have missed it - with MrDJ convinced the treasure lay deep down in the Ripley Road sandstones.) RG did say they got lucky when they found it -but didn't explain how.

What is increasingly becoming apparent is the gas is spread all over MEL & ROG's PELs.

Neither company is in a position to exploit their resource. IMHO when a Mr BIG makes his move he'll - it could be a she'll - grab half of MEL (the entity will want MEL's technical expertise) and all of ROG.

RG can't say that publicly and will maintain the charade but it's his only option.

What is certainly v significant for both companies is the thawing of the "Green's" attitude. With local public/political support behind them, they are in a much stronger position.

(When I told him I lived near Maclean he was interested to know if I was a landowner - Maclean is at the bottom edge of ROG's PEL 457 - I don't know if this is significant but it does reveal he has plans for more wells.)

I'm not the least bit sorry this is so long.

Welcome back

hs