Ann: Jaws Pilot Update, page-49

Al99, the problem for the financial market communication in my eyes is, CSG exploration is a complex task and the majority of the market may not correctly understand announced figures...

You may be right and the current average flow rate may be at about 50 mcf/d. Compared with expectations from a conventional field such a figure would be a disaster. Most likely the market would react negatively on the announcement of 50 mcf/d by STX. But in the dewatering process of a non-conventional CSG-play close to CDP it simply means “everything is on track”.

If the Jaws project is successful, flow rates will pick up and rise progressively in an “S” shape before degreasing over time. Unfortunately we are still at an early stage of the “S”...

To cut it short, I think still early days and the decision re Jaws has not yet been taken. But so far, it looks good...