Ann: Chairmans Address and CEO Report to AGM 22 N, page-14

re: Ann: Chairmans Address and CEO Report to ... JF,your optimism seems to know no bounds, but it does not appear to be infectious judging on the share price.

From the AGM presentation:

Oil Production SW Queensland

• Production kept steady by new discoveries Irtalie East and Watson South coming on stream strongly at Naccowlah
• Successful appraisal well Irtalie East 3 returned 10 metres of pay in Hutton and oil in the Westbourne
• 3D seismic at Utopia has outlined pools with potential for 8 MMbo
• Anticipate 3 – 5 wells in 2013 to continue production

So, sounds like extra cost to drill just to maintain production at, or near, current levels to compensate for depletion in existing wells.

Kiliwani North Gas Commercialisation – BUY 10%

• Tanzanian Government approved construction of new pipeline and gas plant to Songo Songo Island financed by Chinese Loan
• Operator plans involve production from Kiliwani North at a rate of 20 million cubic feet per day in early 2014 (2 MMcfg/d or 364 boepd net to BUY)
• Structural prospects targeting same top Neocomian Play total 1.8 Tcf gas Pmean

Sounds good but production is at least 12 months away and from reading comments by Aminex it sounds like it'll be closer to 18 months.

AC/P 32 High Impact Oil Exploration – BUY 100%

• Bounty is targeting large stratigraphic prospects with anomalous seismic amplitudes especially in the Puffin Sand up dip from the Puffin Field and the Birch 1 oil accumulation
• Work includes seismic reprocessing and detailed study of seismic and Amplitude v Offset characteristics to predict fluid content
• Once substantially derisked farmin partners will be sought to drill a well

Again, sounds great, but drilling is years away and we still have to find a new farmin partner.

Surat Basin Unconventional Oil and Gas

• Wallabella Coal deep CSG to be tested in drilling Farawell Prospect in 2013
• Bellbird Sand awaiting renewal of ATP

Again, sounds good, but unconventional oil and gas is an expensive business so chances of a big return is not great.

Unconventional Shale Oil Paterson Trough Carnarvon Basin WA

• Drilling into the Paterson Trough returned oil cut from shales in the Dingo Claystone
• TOC in the range 1 0 2.5%
• Dingo Claystone in the Trough is in the oil generation window
• US company farmed into to drill unconventional well at Paterson East
• And drill 5MMbo Bee Eater 1 exploration well

Read above comment about unconventional oil and gas. As for Bee Eater #1, that was supposed to have been drilled in 2008 iirc so I won't hold my breath.

So in conclusion, whilst there is some good opportunities there is really very little that I can see in the company's operations to move the share price substantially in the short to medium term. The main chance for sp movement comes from changes in the world economy which is outside of the company's control.