The Company has a quality portfolio of coalbed methane (‘CBM’) acreage. During the course of the year, this land position has been significantly enhanced, particularly at the West Esponda project, by strategic acquisitions, and as indicated in last year’s Annual Report, the drilling of future gas producing wells, thus laying the base for the Company’s future prosperity.
Early in 2006, another event of significance for Planet took place. At East Esponda, we have been involved in two separate joint ventures. Our partners have been Kennedy Oil and Western Gas. Since balance date, Western Gas has agreed to buy the Big Cat Field from Kennedy Oil for $US137M. Therefore we now have a single partner in Western Gas. In their press release, Western Gas stated 'Gas production is expected to begin in the third quarter of 2006. … This acquisition offers the same low risk development that the Company has been successfully drilling for the last eight years in the Powder River Basin.'
In addition to our development programs, a corporate strategy to identify and complete a strategic transaction in the North American capital markets has been instigated with a view to attaining the generally higher prevailing North American market values for energy stocks.
I look forward to 2006 with confidence and anticipation.
Yours faithfully
Norman A. Seckold Chairman
PGS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
