Ann: Half Yearly Report and Accounts, page-5

I’m not so sure it’s doom and gloom. The company has huge financial assets underground in Victoria and SA . Our problem with getting the gas out of the ground in Victoria is not the lack of capital but the state govt. If the govt does not put any roadblocks in the way for the resumption of gas exploration then raising the necessary finance should not be a problem as any new investor will get a hefty return. My only concern with the issuing of more shares is that existing shareholders may be excluded from the offer which would be unfair as we have kept the company afloat . Also does it really matter how many shares are issued as yes your holding may have been watered down if you have not taken up previous share issues but even if you haven’t your worst case scenario would be break even or a small profit which is preferable to loosing everything so if necessary bring on a new issue .As far as SA goes that situation is looking very promising as it appears there is possibly hundreds of millions of dollars worth of gas to be extracted. Again raising capital for this should not be a problem but it might be that the SA lease could be sold to fund the Victorian operation if the directors feel there is a greater upside in Victoria . ( wouldn’t be ironical if co2 in SA saved a fossil fuel operation in Victoria) . There is a way to run with Lakes yet but I believe we are in safe hands with the current board and whilst there are obstacles the future is not all doom and gloom.