Ann: PGY: EP416 & EP480 Airborne Geophysical Survey Results, page-28

Healyn,

I am glad you are still with us.

There would have been some serious jaw dropping going on if you had decided nuff is nuff and bailed.

As you suggest there have been some harsh critics of the decision makers are in the Company, and if one is looking at the plight of EGO in isolation it does look like the guts has dropped out of the share price, despite positive news and progress from the Company and re-ratings by stock broking houses.

But! If one looks at the whole picture (a number if folks have posted about this) with EGO a small part of it (which it is) then the grounds for a lynch mob as it were, are not so compelling.

Some have been very outspoken and competencies of decision makers in the Company have been questioned. But in the current business environment there are no free places, and nor is there room for amatures.

Another point which you might like to comment on is.

I actually think it was fairly smart to off load the southern leases for a free 40% carry. We don't have adequate capital to be drilling all over the shop. Those who are calling this as a dumb move might need to ask themselves what the equation is going to look like if there is a farm-in deal struck in other prospective areas. Whereas we currently have 76% circa in the Lockyer and Erragullah prospects, I can't see any serious farm-inee being willing to take up less than say 40%. It doesnt leave us with much, does it?

Then again it might be good in that we would not have the capex of drilling etc etc.

Any thoughts?