Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-2

So far the results seem positive. Operations remain on time, and on budget. $20.5m cash end of Qtr.

" As the Company has been highly encouraged by the insights gained from Stage 1 of the testing program, particularly including indications of the permeability and porosity of the sub-surface structures, it has moved into advanced planning for a
Stage 2 extended well testing program to be undertaken in June, subject to equipment availability and
any required approvals.
The Stage 2 exploration well testing will involve the mobilisation of existing specialised equipment to
lift the water in the well bores. The method is standard in testing with a single completion via a pump
attached with the tubing for the water to flow, and an annulus to produce a free gas. At surface, the
gas from both systems will be recombined downstream of, a separator, with combined gas volume
and flow rate measurement. "