Ann: Response to ASX Aware Query, page-126

Thanks-yes the perched water theory.

Hopefully theres more of that here.

Putting aside the various and many permutations and complications there now appear to be three main possibilities.

Kingia is waterlogged in this particular reservoir and will not produce-like Lockyer 2.Might be that MacQ have concluded that until proven otherwise.You would think this waterlogging would be apparent during the drill or soon after-if you drilled into the GWC.

Or the water is from a different level-formation water- and appropriate remediation work can occur.This is the optimistic view.Maybe 'perched'.

Or there is no gas in Kingia in these wells-SE2 & 3.This requires clarification though there were reasons to be optimistic that gas was there when drilled-and maybe during the flow test.

In any event given the result of WE4 and certainly Lockyer, you would think that water was at the forefront of their minds. I certainly am forgiving however that said they appear to be have been taken by surprise completely. And I find that surprising.Though I suppose they had reason to be confident.