Ann: WE5 Confirms High Quality Gas Resource, page-37

Another great announcement, but there is more to come - flow rate test results are what is needed now. Hopefully by mid-late July we've got flow rate test results for both WE-4 and WE-5 and we could be looking at 40c+ sp again. 3 factors that might be pushing the sp down though - the ASX is down following the NYSE's big drop on Friday night; the High Cliff sandstone formation was observed to have negligible reservoir development; and the drill rig will be released once WE-5 is completed. I guess we were hoping for more from the High Cliff, and what happened to going back to WE-3 or into our South Erregulla lease? What more needs to be done before we drill SE-1? We've been awarded the exploration permit EP505, and we've received a $200k EIS grant for this hole. We've reviewed the data from seismic surveys and the results from drilling WE-4 and WE-5 and concluded there's a high probability that the South Erregulla and West Erregulla formations are co-charged, and we've lifted the Probability Of Success (POS) for SE-1 up to 61%. (this from the announcements Greater Erregulla Update on 21st April and the Corporate Update of 15th April). It seems that there are more 2D surveys of South Erregulla planned for mid this year - we are now in the mid year period. So we're looking forward to hearing an announcement about that being in progress. And SE-1 is supposed to be spudded some time later this year - any idea when we will get the drill rig back to do this?

Following the flow rate test results for WE-4 and WE-5 we'd be expecting the update of the reserve estimate for West Erregulla - that should push us up to ~50c sp in the next few months. There's exciting months ahead and by the end of the year I expect we'll have a share price at least 15c higher than we're at today.