Ann: Chairmans Address and AGM Presentation , page-10

Starrr,

not literally, I hope (bet the house on).

AUT are now saying that the condensate can be sold at a small premium to WTI. That improves the figures. There will also be some experimental drilling at closer spacing, though they would not give any further detail, and experimenting further with Schlumberger's HiWay fraccing method:

http://www.slb.com/services/completions/stimulation/sandstone/hiway_channel_fracturing.aspx

AUT has tried it on two pairs of wells (for comparison) and it certainly delivers better results for the 'volatile oil' wells.

STX is coming in at the right time. It has avoided the expensive development of the technology and the drilling methods. There's also a lot of money being spent on infrastructure. AUT reckon that multi-well drilling from the same pad can reduce costs to just under $7m/well (5,000ft lateral) - that will increase the NPV of the wells. STX is continuing to accumulate acreage - no hurry to drill - let the big boys improve the technology.

"Centred on the preferred condensate/ gas fairway

Significant value re-rating expected in 2012"

Let's hope so.