Ann: Drilling Update , page-7

The Monslatt 1A results are awesome. I really think we have some value here with Blue and I am glad they are tapping it. It is miniscule acreage when you compare it to someone like Arrow which has the surrounding area, but it does confirm that the area is excellent for CSG. Exciting for Blue when they wrap up this initial program in the new year and start moving towards reserves.

The density cutoffs are an important point because it leaves open the door to considerably expand the down hoel resoruce. 1.75 has been industry standard for a while, but the maturing data on Global CSG production has been seeing this density figure rising to areas like 2.5 which is great news Blues prospects down the well.

The gas contents for the Galilee are still a little on the low side and could be hurting the chances for near/mid term development.

Cheers,

SF