Ann: LCK Signs Heads of Agreement to Commence ISG in China, page-225

Hi Ashes

Always good to your read your posts, even though I disagree with your sentiment with this stock.

The old flow rate chestnut has been discussed in some length already, but I can understand why holders such as yourself could have pulled the sell trigger based on the data available.

Because it did not achieve the "expected" flow rate, can this be deemed a failure? Every coal body reacts differently, and the PCD was as much a fact finding mission for LCK, as it was to prove it could be done in accordance with the approved Environmental Impact Report and the Statement of Environmental Objectives. I can't speak for LCK, but I am sure that they would have liked to see the rate sustained over a longer period. But key data and information for the development of the commercial project has been collected, and further, the multinational companies which are in commercial discussions with LCK have access to all this data. These discussions are in "advanced stages".

As reported through the ASX, the PCD has achieved and in some cases exceeded it's objectives. As a result the company has the largest uncontracted gas reserve on the east coast with PRMS certification of 1,153 PJ 2P which was validated by MHA Petroleum Consultants. Based on this success the Regulator and LCK have now agreed on a process for commercial approval. More recently, LCK's reserves havebeen acknowledged by two high level government agencies - the ACCC in Australia and the National Reform and Development Commission in China. Notwithstanding, LCK are now on the cusp of taking their talents into China.

You have said yourself at one point that this was worth $1 in the ground. From memory this was before LCK even had a reserve. I don't subscribe to the fact that third party validators, the ASX, and LCK are hoodwinking shareholders.

I believe this project will go ahead, and as LCK work through the commercial negotiations, it will be a clear message that some of the worries discussed on this forum were just that. Good luck with this stock if you decide to re-enter in the future.