qtry out, and not aftermarket this time, page-2

From activities report - all other detail is restated from the recent 4 annoucements:


"In the previous Quarterly Operations Report a production target for the June 2011 quarter of 5 million cubic feet of gas per day
was indicated as an objective for the quarter. Although the Company has not achieved this target for reasons as outlined below
as yet, it needs to be stated quite clearly that it was anticipated that the major part of this target would be met from production
from the three RR wells (RR 13-17, RR 11-17 and RR 2-19) and workover operations on these three wells only commenced in
April 2011. The original workover program as announced to the market in late 2010 made it clear that there may be up to four
stages of work required on each well and that to complete the work on a well may take three months plus. At the time we could
not be certain how long the work would take as we were undertaking what amounted to a new operational process.
However, it is also clear from results to date that the workover program is achieving the results hoped for and that the program is
the appropriate program to undertake on the wells to bring them onto full production. Our experience with the results of workover
operations on the three RR wells to date confirms that each well is likely to take three months plus to complete, with each well
having its own production characteristics. We are reluctant to give guidance at this time on timing that full production will be
achieved given the nature of the results to date: what we have established is that the program results to date indicate that the
program is working and that excellent progress is being made. Having said this, we do expect very considerable progress to be
made on all three wells during the next two to three months.
The operations are focused on pumping down the fluid level in the wells to a target level of about 200 feet above the pump before
optimum producing conditions will be achieved. Significant progress has been made with this process and gas flow will increase
as the water level is drawn down in the well bore and the back pressure is lowered on the reservoir.
A key factor in being able to progress these operations has been the ability to use a water disposal well that was completed in the
December 2010 quarter."