Ann: Mahalo Gas Project Memooloo 2 Well Successfully Drilled, page-20

Here’s my take……Traders buy on rumour and sell on news – investors buy on fundamentals and sell when the company’s net assets are reflected in the market cap as beyond that point is speculation.

Many decades ago as possibly mentioned before – 31 years now – I launched the first ever undervalued assets unit trust with the investment philosophy being that the fund managers took a position in companies who’s net asset worth was not reflected in the share price/market cap due to a variety of circumstances. We loaded ourselves up with hefty positions and bode our time until true value was realised – working on the theory that true value will eventually be realised.

COI is sitting on a shed load of gas with the current drilling program looking to firm up on what we know is there and to hopefully ‘increase’ our 2P reserve base – as to Galilee which is not as advanced as Mahalo – we are strategically tapping away at those sandstone deeps with a view to proving up that we have a valuable untapped gas reserve on a no cost basis with us farming out a small percentage for the covering of upfront costs.

As to where the company goes in the future – one has to decide whether the gas that we 'know we have' added to that which we 'hope we have' makes us undervalued or 'bang on the money'. Personally I’m not one for jumping in and out looking throughout the market for trading opportunities as I would much rather buy what I asses as being undervalued and sit it out. Others may well look to pinch a few percent here and there glued to the computer screen or using automated trading platforms – nothing wrong with that but not my game.

We pay our money and take our chance – I’ve paid mine and am sitting tight happy in the knowledge that our management team are doing exactly what they said that they would keeping us investors updated at every twist and turn – knowing that they are an experienced bunch that have raised capital in a difficult investment climate to take us to the position where we sit today.As to the current company valuation/share price – irrelevant if one is in for the long haul.

One thing for sure – having sat though numerous similar situations with different companies including Sunshine Gas (a blast from the past with some of our management previously steering that ship to riches) I’m not remotely concerned….