announcement coming, page-41

Andrew, I don't think this blowout should ruin GGE, but anything is possible.

I think this situation has had a very adverse affect on GGP (Holding) more so than the 15% they hold. I am sure there are other factors playing with them too.

I have noted in the past few updates on the well control that they mention of Mantle and GGP having specific insurance for well control. Now GGE has taken a further 24hours to basically produce the same update but only advising of Umbrella Insurance.

Now UI could be as meaningless as third party coverage for your car, or it may be a super policy that covers every conceivable event, ???? http://en.wikipedia.org/wiki/Umbrella_insurance

In any event I did research well control insurance, otherwise known as Blowout insurance but there is specific exclusions including punitive damages awarded by courts.

http://www.cartercompany.com/Control%20of%20Well%20Information.pdf

What my main concerns about today's announcement is that GGE may have to borrow money over the next few weeks to continue operations. Does that mean there is nothing left in the bank?

As at 30/6 GGP had $7.5mill cash in bank, I do not know what GGE had or how much was committed after that. I now suspect they have burnt through anything they did have.

Instead of taking a loan for short term funds, I would have thought the partners could have carried or purchased a little more percentage to assist GGE over a rough period. Perhaps they discussed this and there was no takers??

I am more concerned with Mantle going belly up and leaving the bag to be held by the other partners. I find it very odd that Mantle have just over 4% stake in this well and seemingly little experience and being named operator. This suspicion of their ability is backed up by the fact GGP has been made operator of #2 & #3.

I was basically laughed at when I said over a week ago that this wont end quickly nor will a second well as planned be drilled to timetable. The longer this mess remains a mess, the worse things will be for all concerned.