I probably wouldn't agree with your Plug and abandoned price.I...

I probably wouldn't agree with your Plug and abandoned price.

I reckon the market has already concluded its a dud and that's what has caused it to fall from 60 to 40 (and CBA selling.......aren't they long Centro - ha ha).

The very good Outlar success (West Wharton looks top notch) and the likelihood that Outlar 2, 3 & 4 will also be good and Harrison 2 is also likely to be a winner all up support the current price.

With Harrison 2 (I reckon 2 MMcfd will be the result) we will have a cashflow net of US rental tax of $US10Million p.a. That goes along way.

Outlar 1 is looking so good, its likely to end up doing 5 MCfd. If it gets up there then we are talking net of state rental tax income of $US12.5 Million.

Outlar 2, 3, 4 ?????? can easily take us to $US25 Million in net of state rental tax per annum.

Although we will ne disappointed and even the share price may go down, the reality is that the company has plenty of shots left in the locker which will likely produce a good cash flow (low risk too).

By the way, this is what I think of Garcitas Ranch C1 and C2 and New Taiton.

Garcitas appears to suffer from compartmentalisation. They will probably correct this by reentering well and drilling a horizontal hole off the main well. This cuts accross the compartments. New Taiton. I bit messy with legal action against the operator but I reckon it will produce from the higher sands where they had good gas shows from.

Now if JF-1 comes in with some good numbers, then we are off to $1+ per share. The market may hate it at the moment but you can't argue with cash flow. A good JF-1 plus Harrison 2 (hopefully) plus the very likely success of the next Outlar well is going to see some serious revenue being generated.