Ann: Appointment of Chief Financial Officer, page-5

Hi XXXXXX,

A UBS equities analyst predicted (in an Origin research report) that 3mmscf / day per 1,000m of horizontal section is the economic threshold acrossthe basin.

Given that we are shallower than other operators, with significantlyreduced costs as a result, it is likely that our economic threshold is a lowerrate than other operators.

Thus we are pleased with these results, showing a normalized rate of 2.8mmscf / day per 1,000m in this well, our first horizontal well.

I note, as per previous announcements, that the primary goal ofthis well is to test different completion methodologies (fracture stimulationfluid systems and perforation design), rather than maximizing flow rates inaggregate.

In our next well, we will apply learnings from the stimulation of thiswell to commence the optimization process which, in the success case, shouldresult in further improvements in flow rate performance.

So a big step forward towards demonstrating that our acreage iscommercially viable, at a critical time as we plan for moving into earlydevelopment and production.

Regards,