Quarterly Report

So they have just under A$9M left.

Spent A$790K buying 1,750 acres and 365 acres lapsed. So it is costing them @ A$500 an acre to get leases.

25,600 acres on that basis would be worth over $13M, the question being how much more?

There are several terms used in the report that shareholders should pay particular attention to "depositional lobes" "sweet spots" "fan depositional environment"

In other words they are saying, that in their view there are some good bits that will be productive like Cozart 19 where the 3 phases above occur and other bits where they don't, like all the other wells thus far.

If they have good 3D seismic they should have a reasonable idea where the sweet spots are (although they ain't demonstrated to date). Perhaps these 2 pilot holes will !

Wonder how much the pilot holes are going to cost? and I don't think 7,500 - 8,400 ft laterals are going to be cheap to drill. They are going to need lots of $$$ to do this and I can't see them getting Macquarie to fund it as things stand.

In the meantime, July & October are getting closer & closer and those loan notes are going to become a bigger and bigger millstone around the company's neck.

If they do drill the pilot holes this quarter, then the cash balance will undoubtedly be under A$5M come 30th June.

Oh and those IP numbers they are quoting are eye candy, anything less than a 30-day IP are meaningless.

LOTM