value

All,

I've been reading the posts on MAE, and thought I would provide some clarity around MAEs 2P reserves, and value price, based on 319 bcf.

Comparison

ESG :2P 218 bcf
PES: 2P 394 bcf
MAE: 2P 319 bcf

Implied ESG Value on 2P metric = $0.75
Implied PES Value on 2P metric = $1.35
Implied MAE Value on 2P metric = $1.10

Note, 100% ownership of Clear Creak for MAE. That is 236 bcf in the June 07 report.

Key words - in their recent report 23/02/09 on Clear Creak

The drilling operations undertaken since June 2007 have been significant and
the impact of these is not reflected in the June 2007 Report which certified 2P Reserves at 319 Billion cubic feet (Bcf) of gas. The upgraded Reserve Report will help determine the value of the Company and is an essential part of the recently announced (February 16, 2009) process of a possible sale of the Company and/or its assets (refer below). At this time it is expected the Reserve Report will be finalised and the
results advised to the ASX in March,2009.

So lets look at the Implied value based on the above, 'drilling impact has been significant since June 2007', and make some estimations on the 2P reserves:

Value today: PES: 2P 319 bcf = $1.10
PES: 2P 419 bcf = $1.44
PES: 2P 519 bcf = $1.78
PES: 2P 619 bcf = $2.13

'The Board is correct'

The Board is of the view that the underlying value of the Company’s assets is materially in excess of the current market capitalisation of the Company and has
resolved to seek alternatives to enhance the value for shareholders.