Ann: South Erregulla Update, page-205

I feel everyone who has held their shares have had the same feeling today. The result was not expected given the drilling metrics provided by STX were consistent with the successful SE1 well which flowed extremely well.

The announcement today only provides a timeline of what occurred during the testing with no explanation of why the water contact was not evident during the drilling operations and logging.

The reason for the Trading Halt (Company Disclosure) was not really covered in the announcement and I thought this requires internal investigation as ASIC will be wanting an explanation. The halt should have been called as soon as the problem occurred on Tuesday. It appears that people sold out with the knowledge that the flow testing was not going well. This is a bigger problem for me than the failed well.

Not a happy day for Strike.

I expect Gina will be rubbing her hands together.