1000 meter pay layer, page-14

Tgn, certainly shale in the UK is still viewed speculatively by investors. The change in sentiment over the last several months has definitely been in our favor, however. AJL is up 100% from lows earlier this year. Igas is up 75% in the last few weeks. No one is trading AJL stock today so taking any cues from daily movements is foolish. You are better to ignore the price until it meets with some volume (unless you are trying to pick some odd lots up on the cheap). My guess is that the stock is mid 30's to mid 40s going into the end of Sept in anticipation of a positive outcome on the appeal.

Also, regarding the vertical flow rates.....they were encouraging, but they don't tell us nearly enough to determine commercial viability. In fact, no one should be surprised if flows from the first several wells don't look particularly strong. Any time a new geology is developed the engineers need to tinker with techniques to maximize production in an iterative process. Many plays that appeared unproductive at first became very profitable once the operators refined its methods to that particular area. My point was that having thick shale is great, but it would also be great to have multiple attractive pay zones within that thick shale. I think that the Cuadrilla people believe this is the case. Hopefully, we will understand more over the next two years.