amex 6/01, page-36

orga - at risk of sounding like a fence sitter, I think many are still waiting on the sidelines for flow rates from Defender and soon Australia II. I think your question relates more to the TA side of things and less to the way approach things (FA with a touch of TA).

Once we know definitively what they're producing, we'll probably see (so long as the news is positive and expected) the share price return to that price on further interest from investors and DTs (approx 14-15 cents). That would fit in with the newly announced performance bonus too (which I would need to look more closely at for details). It's interesting that they're using performance bonuses now instead of further options for down the track in say 2014/2015. I imagine this is so they can ensure greater reward sooner for the employees. I'm not too fussed how they milk the Samson cow, so long as I get milk for my cereal.

The continued climb in share (and therefore valuation) will be determined upon the drilling program and further flow rates. I anticipate that there will be further issues in getting fracking crews but that can't be helped. You can't grow them overnight and stamping your feet up and down saying it's not good enough is counterproductive. I think the patient investors will be rewarded in our case.

Like I stated prior, I'm in the for the long haul so any minor glitches are irrelevant to my investing style. I think the US is keen to ensure that the shale / fracking industry remains strong and uninterrupted. I can see this industry being the equivalent to the mining sector in Australia. The benefits have been enormous.

I hope that answers your question. I do tend to waffle but I've got the time today :)

Cheerio,
sw3