patterson's research note, page-2

I think the probability of a good gas flow is near 80-90% given the proximity to the tbo7..and the company wants very much to show off the prospectivity of the basin and confirm the reserves by December ( the planned company set deadline date for registration with the chinese authorities )with no hiccups at this stage,,,the drilling pattern has ben clearly strategised to meet this goal ..as deeply discussed in all recent public fora by the managers...the lift in the sp to 7c would only take it back to the orginal float price which in my view was already at a discount to the likely potential of the resource to reserve conversion of this already proven and strongly producing basin.since then we have had a successful well campaign , a debt reduction and further beneficial and unexpected pipeline infrastructure built right across the tenements! but unfortunately for the quick needy investor - a deeply discounted share rights issue that was uneccessarily in my view issued at agiveaway 6 for 1 at 3.3c --after a 25c float price and a greatly improved outlook with increased prices for the output determined by law!

A steal for shareholders who stayed on for the ride and still a bargain for those looking to enter.. i wouldnt be too worried about the next drill results ... i would more be thinking that if it comes in even half of tb07 2miill c/ft/d this sp will rocket to above 7 easily and might well suprise.by a rocket.there are not that many shareholders...and the managment have a fair bit of skin in the game..some through their wives even (MD eg)