Thanks for making the AGM Blade2008 and for giving us your...

Thanks for making the AGM Blade2008 and for giving us your immediate thoughts with many of us including myself geographically compromised thus being unable to attend ourselves.

A couple of points which have arisen over the last few weeks and at the AGM which have particularly stirred up my interest:

Our BOD classifying the company as holding two asset classes – Near term (Mahalo JV & Mahalo North) and long term (Galilee & Gunnedah) – with a view to a demerger/splitting of those asset classes

24 months until first gas anticipated from Mahalo whilst at Mahalo North a gas sales MOU has been signed with a high quality east coast industrial user which includes funding support for development. Indications are that Mahalo North could be producing at the same time if not before Mahalo.

This is exciting news and I await ‘meat’ to be put on the bones of what ‘funding support for development’ means and at what cost to us.

My issue along with many shareholders I am sure - is the share price/market cap nowhere near reflects the net asset value of the company at this time. Whilst our BOD are looking at a strategic asset review and splitting the company into 'near term' and 'long term' asset classes – I cannot see how we can in current market conditions achieve anywhere close to what our 40% of Mahalo is worth.

Logic dictates that if the markets are valuing both asset classes as being worth $156.4M (Market Cap now) then exactly how are we going to achieve true value for our 40% share of Mahalo which in our opinion is worth at least twice our current market cap just as a stand alone?

As it looks as if it’s our BOD’s intention to lump our 40% share of Mahalo with Mahalo North bringing both to first production within the next 24 months – I would suggest that the reason for doing this is to prepare this near term asset class either for sale or for revaluation once production is up and running. Hopefully the market valuation at that point will be based on net profit from production multiplied by expected production lifetime.

Whilst in some ways it would make it comfortable for us to know that we have offloaded our 40% share of Mahalo putting us in a position to self fund Mahalo North – I think the price that we would achieve now for that asset would nowhere near reflect our financial expectations – not withstanding the fact that it was purely because of our BOD’s tenacity and belief that Mahalo would 'come up trumps’ that Statoil was dragged from a position of being a ‘non believer’ with regard to expenditure exposure to where we sit today moving towards production in 24 months.

An emotional response maybe – but as we’ve been the driving force behind bringing Mahalo from possibility to closing the gap towards production even paying Santos's share of costs upfront with a performance clause needing to be hit for them to return us their share of expenditure – it seems a shame to withdraw from proceedings at a massively discounted price when most of the hard work has been done.

It’s been a long slow journey – but hopefully our patience as core established shareholders will be rewarded.

Just my thoughts for what they are worth.