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the rest of the story.... Good Morning...

I think there has been some valuable commentary posted this morning about the trading patterns and possible responses to current drilling. That news is imminent and therefore rightly has the attention of traders/investors.

However, STX has some other interesting and valuable activities in its pipeline. it is a 10% shareholder of Comet Ridge which is about to participate in the Mahalo coal seam gas exploration earning 40% with Santos. Comet Ridge is a good small company in its own right and is also STX partner in what I believe to be an exciting oil field workover at Tow Creek in the Rocky Mountains. That project should get underway during the first half of 2006.

STX has quality interests in offshore Carnarvon basin in Australia that have been reviewed with seismic and where prospects are being worked up for drilling possibly in the second half of 2006. It also has Cooper basin interests with Beach Petroleum as operator where seismic is to be undertaken when native title issues are resolved.

While the Texas developments underpin the immediate growth and are anticipated to generate imminent cash flow and value for shareholders well in excess of the current market cap, there is a good base of other value adding assets in the portfolio to sustain a longer term growth story. At a measily $30+m market cap, I think STX looks one of the best Oil and Gas stories on the ASX for 2006.

regards
DF