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Not many there & no 'major' excitement.
Askin started dealt with the formalities. All motions carried & finished quickly.
Regarding the PXA sale his only comment was "we expect interesting times ahead" !!
Heugh then made a presentation (hard copy issued along with AR & an in depth report on the potential for UCG in Indiana - hopefully they will put it up on the website) followed by questions.
Main points of interest for me:
Could not give an accurate current cash figure (surely must have known that would be asked?), but confirmed they still had cash in the bank after finishing the last well & then received the $5m, so currently 'in excess of $5m'.
Cannot draw down any more on DBZ until SP back at 14.4c, but believe it will 'not be long' before that.
'In a very healthy cash position' but 'not sufficient for drilling'.
In rough numbers, drilling a single remote well = $7m, but a program of 10 in proximity brings cost down to $4m each or less. CBM wells <$1m each.
'Don't foresee any problems' with funding with BG as JV partner. This was talked up nicely.
Ongoing discussions with other parties for JVs. They feel 'vulnerable' due to largest single shareholder holding <3% of total shares & want to:
1) stabilise the share register by introducing a strategic investor.
2) share risk via farmouts for E&P
3) JV with holder of appropriate GTL/GTF/UCG technology (now who might that be?!)
'It is fair to assume an increasing focus on CBM'
Need to sit with the new JV partners & agree the well program - 'over the coming month or so'. Proposed 2009 program is 8 conventional wells, 15 cored CBM wells & 25 CBM appraisal wells + $16m seismic. They believe they will 'modify the 2008 program significantly'. 'Can't emphasise enough that' all subject to farmin partners/capital of course.
'The significance of the find has not been fully grasped by the market yet' - relating to 150km fairway x 50km wide x 140/160m net gassy coals.
Many more prospects with similar seismic signatures - sounded confident that there's lots more to come.
Would take approx 5 years to get a GTL plant up & running, once proven that there is enough resource to make it worthwhile. This will be a long story.
Q- was the $600K from QCG? A - a quick wry smile to Askin. 'Maybe we signed a confidentiality agreement that prevents me from saying' etc.
Q- did they know about the PXA/QGC deal. A- had heard rumours but did not know, cannot comment, it was very sudden. They were 'surprised'. They 'are not disappointed' about it! [big smile].
Q- what if the JV partners cannot agree A (Askin) - there are get out clauses if stalemate.

My reading: Very positive. There will be some corporate action very shortly (i.e. buy in). Clearly they had a learning process (the hard way) with the drilling ops. Looks like they are very happy & excited with the new partners.