Ann: Ceasing to be a substantial holder , page-5

It does not matter if Acorn's clients would like to sell their holdings or not.

The reality is out there that the market cap of NSE has increased more than 100% in just three weeks by those EFS and Cooper transactions.

On Jan. 12, the sp was 12c and number of issued shares was 305m which implies a $37m market cap.

Today, the sp is 17.5c and number of issues shares is 385m. That makes a market cap of $67m.

In April, after drilling and fracking the two new EFS wells the oil production will go close to 2000 boe/d (by high IP24 and IP30 rates, but then it will decline in deed). Then NSE will drill another two wells in the Q4 2014. That means that NSE may have an exit rate of 2,000 boe/d form 4 new and 5 old wells all together for 2014. That'd be a very good result.

I think NSE management would be making the plans for 2015 for drilling new wells soon. I am sure it would be more than 4 wells in one year, it could be 6-8 wells if the credit facility could be out there. I am dreaming the bbo/d exit rate of 2015; 3000 boe/d or 4000 boe/d!

So it is not very strange that the NSE's sp will hold around these levels if not going up to 27c anytime soon.

Btw, there are interesting things about the Cooper basin. I am making a research about Cooper basin atm. I guess very interesting things are going to happen there this year as the gas shortage is getting more serious every month in the East Coast of Australia.

There are different unconventional petroleum opportunities in the Cooper basin; shale, tight sands and CSG. Santos, Beach and Drillsearch are all working on shale gas. I am not sure what has been done about the tight sands gas yet (not finished this research), CSG extraction is a risky business in Cooper atm as it has not been flow tested yet.

NSE's PEL570 is all about Patchawarra formation tight sand gas at around 3000m depth IMO. There is Patchawarra coal seams under the tight sands of Patchawarra but they are too deep (around 3400m), and cannot be extracted IMO (despite Ambassador Oil & Gas was saying on their anns on Jan.21 that there is 13.5 tcf CSG potential in their tenement! that's BS). When it comes to tight sand gas, it's not hard for NSE as it has Magnum Hunter's experience in this field.