Ann: Progress Update on Balance Sheet Restructuri, page-2

re: Ann: Progress Update on Balance Sheet Res... I refer to my earlier postings, where the award of new projects in relation to the strength of the balance sheet is mentioned.

What have they been thinking? To people with industry knowledge this was clear for a long long time. Due to the slow respons the share price has gone down the drain. This will result in a 30-50% diluting of share holders; as any capital raising will be probably in the range of this percentage of the stock value, if it is to create any level of impact.

As any value perspective on the upside is only in the asset portfolio in the US and Cuadrilla, it is best not to divest those. They have to mature and will currently not yield any proper value. It is arguable if the US investment will materialise, but alas, lets just believe it, and rely on the ever increasing acreage prices for shale gas and shale oil in the US.

It is advisable that the direct holdings of shale acreage in the UK of AJ Lucas are transfered to Cuadrilla Resources. Either in return for cash, but preferably in return for shares, which can be sold subsequently.

Only the original AJ Lucas divisions can be sold for normal, mature values. Either the drilling division or the construction activities. They have substantial value, and can resolve the financial issues.

Unfortunately, there seem to be other drivers in this company than sound business principles. I am sure the ASX will lose patience with the way things are conducted. Also shareholders will have their say. And who will be stupid enough to buy in to this company other than existing share holders? Issueing capital is easy to say, but showing managerial consequences to remedy mistakes from past performance is equally important.

I think the smartest thing to do is divesting an established division C&I.

If not, then dream on..